This IDC study provides a qualitative analysis of the potential opportunities for what IDC refers to as multiprovider management (MPM) but with a focus on "managed/outsourced" MPM services over the next 5-10 years. MPM managed (outsourced) services involve third-party providers offering buyers a 24 x 7 service by which the service provider/outsourcer manages the procurement of the actual outsourced/managed services, using an business support services-operational support services (BSS-OSS) set of capabilities, on behalf of a buyer across all types of service providers/outsourcers involving both traditionally delivered services (e.g., more labor oriented) and more highly automated environments referred to as cloud services. The types of providers examined in this study include enablers, aggregators, and integrator/operators. Additionally, the service areas this document focuses on involving business applications and processes (e.g., ERP, SCM, CRM, productivity, BI) as well as IT (e.g., server, storage, desktop/mobile) used by both small and large businesses. This document excludes the market for providing just content and media services (movies, books, magazines, etc.). The goal of this document is to provide a framework of analysis that answers the following three questions:
- Optimal business model for MPM. What business model or models are optimal for buyers to use in managing multiple outsourcers and service providers across both traditionally delivered outsourcing-managed services and cloud-based outsourced/managed services?
- Roles for enablers and aggregators. Is there a role for enablers and aggregators? If so, what should it be?
- Impact of the integrator/operator model for service providers-outsourcers. What is the impact of the integrator/operator model on service providers/outsourcers offering an MPM set of managed services capabilities?
"Buyers are increasingly looking to gain greater control over all their outsourced business process and IT services whether using traditional delivery models (e.g., labor-based) or more automated services via the cloud, which is leading many suppliers to offer some type of what IDC refers to as an MPM set of capabilities that could range from in-house deployment of an MPM environment to using a managed MPM service and whose capabilities mimic those of the OSS and BSS management functionalities used in the telecommunications industry," said David Tapper, VP of Outsourcing, Managed, and Offshore Services at IDC. "Key for buyers and service providers/outsourcers is to understand the optimal MPM business model or models that buyers of outsourced services (both traditionally delivered and cloud based) will likely utilize in the short- and long-terms and to create a holistic framework of the variables that will shape the optimal MPM model that includes such factors as the structure of the buying organization's procurement and governance of business and IT, risks to both buyers and service providers, the end-state structure of the outsourcing industry as it evolves to cloud-based delivery, and the impact of event-driven markets."