{"id":1608,"date":"2010-10-25T19:13:00","date_gmt":"2010-10-25T19:13:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/will-customers-buy-csc-vision-10251\/"},"modified":"2010-10-25T19:13:00","modified_gmt":"2010-10-25T19:13:00","slug":"will-customers-buy-csc-vision-10251","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/will-customers-buy-csc-vision-10251\/","title":{"rendered":"Will customers buy CSC\u2019s vision?"},"content":{"rendered":"
\"\"<\/a><\/p>\n

Euan Davis, Managing Director, European Practice, HfS Research<\/p>\n<\/div>\n

Many of you sent us mail today regarding the new HfS RAPIDInsight on CSC’s new services integration strategy (see earlier post<\/a>). <\/em><\/strong>Our European research lead, Euan Davis, was at the unveiling of the new strategy in Prague a few days’ ago, and outlines his thoughts further..<\/em>.<\/p>\n

I liked what I heard at CSC\u2019s European analyst event. The provider outlined two strategies dealing with the short and long term realities of how you, the customer, buys IT and business services:<\/p>\n

1. CSC\u2019s cloud strategy is a short-term play, and I liked it because it recognizes the realities that many customers running down\u00a0their existing\u00a0contracts face today<\/strong> \u2013i.e. to radically lower the cost of service delivery and create more flexible sourcing strategies.\u00a0CSC offers a clear adoption path with lots of tools and support for its customers so they can begin shifting manageable chunks of their existing contracts to the great data centre in the sky. Nice.<\/p>\n

2. The more intriguing long term play is CSC\u2019s positioning to be your \u201cService Integrator.\u201d<\/strong> As a service integrator, CSC would marshal an eco-system of IT\/BPO\u00a0providers on your behalf, setting predefined delivery roles, mutual commitments, swim lanes and incentives for all your providers. CSC sets the model up so each provider shares, collaborates and innovates together and then ensures everyone pulls in the same direction. Nice.\u00a0Sounds great in theory, right? However,\u00a0running\u00a0this\u00a0model is hugely complicated and it hardly pays out for a player the size of CSC. The revenues\u00a0accrued\u00a0for setting up and driving the model for example, can never match what one of CSCs smaller, profitable\u00a0service lines delivers today, so it begs the question, why? \u00a0Because they want control and being a service integrator offers them a leg-up as a partner.\u00a0Moreover, if CSC doesn\u2019t step to the service integrator role, one of its competitors will, and it will get boxed-in as a second tier provider lower down the client food-chain and wind up scrapping for lower-value business with other second tier \u2013 and often cheaper – competitors.\u00a0 The real question to ask, is will customers buy into it?<\/p>\n

Many will see risks in handing CSC such a vital part of their\u00a0governance function. Business processes underpinned by IT, need service orchestration to work, no doubt, but would you hand this\u00a0over\u00a0to CSC? \u00a0Some can – and will – \u00a0always want to do this piece themselves\u00a0(read our earlier piece<\/a> on different approaches to service cultures).<\/em> Others think they have the skills and capabilities needed to quantify risk through an extended\u00a0services\u00a0supply chain, \u00a0and can manage all the moving parts but with cloud it\u2019s only going to get harder and harder.<\/p>\n

I\u00a0do feel the wind is blowing in CSC\u2019s direction however. My conversations with clients point towards more systematic sourcing models built around multiple providers emerging, a phenomenon that all things cloud will drive. Who, or what, does the service integration\u2014in-house or outsourced\u2014is the interesting question. Outsourcing service integration needs some guarantees (or policing) so customers know that the integrator isn\u2019t going to feed its own business but mark my words with ever more sophisticated deal making and governance controls emerging on the buy-side and ever more risky services from the cloud we\u2019re going to see some very interesting set ups emerge over the next few years.<\/p>\n

Love to hear your views – either here, or you can email me at euan dot davis at hfsresearch.com<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Euan Davis, Managing Director, European Practice, HfS Research Many of you sent us mail today regarding the new HfS RAPIDInsight…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,61,64,81,87,832],"tags":[235],"ppma_author":[19],"yoast_head":"\nWill customers buy CSC\u2019s vision? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/will-customers-buy-csc-vision-10251\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will customers buy CSC\u2019s vision? - Horses for Sources | No Boundaries\" \/>\n<meta property=\"og:description\" content=\"Euan Davis, Managing Director, European Practice, HfS Research Many of you sent us mail today regarding the new HfS RAPIDInsight...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.horsesforsources.com\/will-customers-buy-csc-vision-10251\/\" \/>\n<meta property=\"og:site_name\" content=\"Horses for Sources | No Boundaries\" \/>\n<meta property=\"article:published_time\" content=\"2010-10-25T19:13:00+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.horsesforsources.com\/wp-content\/uploads\/2010\/09\/Euan-Davis1.jpg\" \/>\n<meta name=\"author\" content=\"Phil Fersht\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@pfersht\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Phil Fersht\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.horsesforsources.com\/will-customers-buy-csc-vision-10251\/\",\"url\":\"https:\/\/www.horsesforsources.com\/will-customers-buy-csc-vision-10251\/\",\"name\":\"Will customers buy CSC\u2019s vision? 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