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Contracts in multi-provider environments – Part 3

SIAM – the proven approach to governing multiple suppliers

How can a client ensure the management of a wide range of suppliers for its own information and communication technology? The tried and tested means of choice is “SIAM” – Service Integration and Management. A practical school of thought for the efficient management of tasks arising from a large number of suppliers. SIAM offers a catalog of measures for the management and control of the services provided by the suppliers – “providers” – as a whole.


Step‑by‑step SIAM implementation without intervening in existing contracts

At least from a contractual point of view, the “Discovery & Strategy” phase of a SIAM multi-provider environment to be created means a due diligence of any existing IT outsourcing contracts with the client.

If the client does not yet have any existing outsourcing contracts in general or in the targeted area, a SIAM multi-provider environment with an immediate “overall transition” can be set up in the “Plan & Build” key stage for all intended providers including the service integrator on the basis of a fundamentally standardized set of contracts.

It becomes more complex where it is not possible or desirable to intervene directly in existing outsourcing contracts and a complete SIAM implementation is therefore only possible on a certain timeline. The “playground” of the changeover on the time axis is huge and green – all axis lengths and nuances are conceivable. The only thing that is certain in this case is that it will not be a “big bang” but a continuous process of successive transitions.

The client’s existing contracts must then be checked for their compatibility and ability to be supplemented for a SIAM multi-provider environment and – worst case – for their remaining contract term. A model of the chronological sequence of all possible provider transitions towards SIAM should be devised and examined. At the same time, it would be advisable to make inquiries with existing providers to ascertain their willingness to integrate into a more transparent and much easier to manage SIAM multi-provider environment.


Considering the actual “maturity level” of all parties involved

Old and new roles, processes and committees of IT service management must be considered and examined, taking into account the actual “maturity level” of all companies involved – including the client itself. Often, the different names for the same or the same name for different things is a hurdle that should not be underestimated. Standardized definitions for the client and all providers are then very much in demand.

The phased implementation of the service integrator along the same timeline must also be taken into account and may need to be realized through different models over time (internal versus hybrid versus external).

In the situation described, a step‑by‑step implementation of a SIAM model can typically only be achieved by concluding new IT outsourcing agreements with all providers over time—or at least by introducing supplementary agreements to existing contracts.

What is to be achieved in what time? In this case, the contract and the related documentation must offer the necessary flexibility and still contain the essential cornerstones and instruction rights of the client and the “growing” service integrator.

For more information, please feel free to contact us!