Virtualization and Cloud executives share their predictions for 2016. Read them in this 8th Annual VMblog.com series exclusive.
Contributed by Michael Corcoran, Senior Managing Director, Growth & Strategy Lead for Accenture Operations
Tapping the Potential of As-a-Service
The outsourcing industry is maturing but many clients are still focused on the “lift and shift” of non-core processes – based upon fixed infrastructure and full-time equivalent employees. Enterprises are achieving lower costs but the potential exists to do much more if such processes were delivered “As-a-Service.” Through the cloud, it is possible to integrate software, infrastructure AND business processes to create a platform that is much more modular, scalable and intelligent.
2016 will see a notable uptick in enterprises considering the As-a-Service model as they look to broaden their focus on business outcomes that increase revenues, improve margins, enhance customer service, and produce new innovations. The financial value proposition of As-a-Service is especially compelling when it comes to technology upgrades or changes. For a total cost of ownership that is significantly less, buyers gain access to continuously updated software platforms that is far less disruptive than traditional upgrade projects.
We predict a number of companies delving deeper into As-a-Service, starting off with small pilots and scaling up from there. Most of these engagements will start with an overall roadmap, and then proceed to move individual functions into an As-a-Service model. The first implementations will likely be in non-critical business areas, where a safe bet can show success and win over senior and middle management. By the end of 2016, these processes will have grown in sophistication as analytics and automation strategies gradually blend into daily approaches to enhance their effectiveness.
In 2016 the role of the As-a-Service provider will also undergo changes. As-a-Service is far more fluid than traditional outsourcing models where buyers were generally locked into long-term contracts. Providers will need to demonstrate world-class capabilities and then continue to demonstrate their value to maintain their relationships. Providers will position themselves more as consultants, advising and driving programs that reengineer and unravel processes, not just offer incremental improvements.
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About the Author
Michael Corcoran is a senior managing director overseeing growth and strategy for Accenture Operations. He has 17 years’ experience consulting large, global clients on business process outsourcing, business transformation and market strategy.
