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Contracts in multi-provider environments – Part 4

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.

The contract throughout its lifecycle

As a matter of habit, this SIAM outsourcing contract blog is based on the key stages of the SIAM implementation roadmap.

  • Discovery & Strategy;
  • Plan & Build;
  • Implement;
  • Run & Improve.

Today we’re taking a big leap and looking at the last, but most important key stage for everyone involved: “Run & Improve”, followed by a look back at all the stages.

In our view today, “Implement” is already behind us for the time being(!). All the efforts and sacrifices we have made along the way have had one reasonable goal: to get the desired and agreed services “up and running”. All milestones in this regard have been completed, all criteria have been met, all services have been approved – we are going live!

Initially, we find ourselves in a hypercare phase. Despite clear contractual allocations and specifications within the operations handbook, the interlocking gears must first settle into place. During this period, they require particularly close monitoring and continuous adjustment.

Once the operation is well established, it is subject to further changes: “Improve”. The operation should not only be well-established and remain so – it should also improve. Such improvements can result from potential already identified in the “Plan & Build” stage and the variable demand for it, or they can only be recognized in “Implement” or “Run”.

Service requirements are subject to change

There are also internal and external influences: service requirements will evolve. Quantitatively, service volumes may increase or decrease; required service quality may change; general and specific technological innovations must be considered and, where appropriate, implemented. Not least, the regulatory and legal environment will change—one need only think of the impact of data protection regulations such as the GDPR.

Due to the need for adaptation described above, the “original version” of even the best outsourcing contract is beginning to age visibly. But should, or must, one accept its decline without doing anything? Not at all! Every outsourcing contract can and must provide appropriate “guidelines” for its rejuvenation and updating: clear ways in which the parties to this contract record, agree, implement, operate and document all changes and additions – however small or large they may be. As far as these changes and additions are concerned, the familiar path must always be followed in terms of preventive recording in the contract: Discovery & Strategy, Plan & Build, Implement, Run & Improve.

For more information, please feel free to contact us!