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.

The contract throughout its lifecycle

By deliberate choice, this SIAM outsourcing contract blog follows the “key stages” of the SIAM implementation roadmap:

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

Today, we take a major step forward and focus on the final—but for all parties the most critical key stage: “Run & Improve,” followed by a retrospective view across all stages.

In today’s perspective, the “Implement” stage is, for the time being (!), already behind us. All efforts and challenges we accepted along the way had a clear objective: to bring the agreed and desired services up and running. All relevant milestones have been achieved, all criteria fulfilled, acceptance of all services granted—we move into operations!

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 operations are stabilized, further change follows: “Improve.” Operations should not merely be stable—they should continuously get better. Such improvements may result from optimization potential already identified during the “Plan & Build” stage and associated variable requirements, or they may only become apparent during “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 this ongoing need for adaptation, even the original version of the best outsourcing contract will inevitably begin to age. But should this process simply be accepted passively? Certainly not. Every outsourcing contract can and must provide appropriate guidelines for its rejuvenation and updating: clear mechanisms by which the parties capture, agree upon, implement, operate, and document all changes and additions—no matter how small or extensive they may be.
When it comes to these changes and additions, the well-established conceptual path must always be followed in their preventive contractual design: Discovery & Strategy, Plan & Build, Implement, Run & Improve.

For more information, please feel free to contact us!