SIAM – the proven approach to governing multiple suppliers

How can a client ensure effective governance of multiple suppliers delivering its information and communication technology? The proven approach of choice is SIAM – Service Integration and Management. It represents a practical school of thought for efficiently managing the challenges that arise from having multiple suppliers. SIAM provides a structured set of measures for steering and controlling the services delivered by suppliers—”providers”—as an integrated whole.

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

From a contractual perspective, at least, the “Discovery & Strategy” phase of establishing a SIAM multi-provider environment involves conducting due diligence on any existing IT outsourcing contracts already in place at the client.

If the client does not yet have any existing outsourcing contracts—either generally or in the targeted area—a SIAM multi-provider environment can be established during the “Plan & Build” key stage for all planned providers, including the service integrator, with an immediate “full transition” based on a largely uniform contractual framework.

The situation becomes more complex where existing outsourcing contracts cannot or should not be modified directly and a full SIAM implementation is therefore only possible along a defined timeline. The range of possible transition scenarios along this timeline is broad—almost limitless. What is certain in such cases, however, is that there will be no “big bang,” but rather an ongoing process of successive transitions.

Existing contracts at the client must then be reviewed for their compatibility with, and ability to be supplemented for, a SIAM multi-provider environment—and, in a worst-case scenario, for their remaining contract term. A model for the chronological sequence of all potential provider transitions toward SIAM should be developed and assessed. At the same time, it is advisable to explore whether existing providers are willing to integrate into a more transparent and significantly easier-to-manage SIAM multi-provider environment.

Considering the actual “maturity level” of all parties involved

Taking into account the actual maturity level of all organizations involved—including the client itself—existing and new roles, processes, and governance bodies within IT service management must be carefully considered and assessed. Differences in terminology—using different terms for the same concept or the same term for different concepts—often represent a significant and underestimated obstacle. Clear and consistent definitions for both the client and all providers are therefore essential.

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 should be achieved, and by when? In this case, the contractual framework and the associated documentation must provide sufficient flexibility while still defining the core principles and the key governance and directive rights of the client and the “emerging” service integrator.

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