Not all Managed Services are created equal

There is no doubt, the provision of large enterprise technology implementations is helping to drive the adoption of digital transformation. However, nothing good comes without some level of criticism and in this case as it relates to time to value, mainly due to the cost and complexity involved. Consequently, customers of solutions, such as ServiceNow, are looking for alternative methods to deploy, enhance and maintain these complex technologies. This is leading them to conclude that a managed service would provide superior outcomes, due to a lower cost of ownership, reduced risk and faster delivery.

As ServiceNow customers are looking beyond the traditional Professional Services (PS) firms for a more complete offering, it threatens the market dominance of the implementation consultancies. In a defensive move to protect their legacy business model, there is a growing trend of PS firms offering managed services. The questions to ask are, is this as good as it sounds, and does it provide customers with everything they need? In this article, we attempt to bring some clarity to what PS companies call a managed service and what customers really want and expect.

The PS approach to a Managed Service for ServiceNow

Whilst any move toward a managed service approach is a good thing, it’s important to be clear about what it is, what’s included in the statement of work and what responsibility, and therefore liability, still sits with the customer. To the casual observer, it sounds great but when you dig deeper there is a significant distance between what PS companies are offering and what customers are looking for. The PS company will carry out the ServiceNow implementation for something the customer owns, using the well-served time and materials cost model, proceeding by asking the customer what they would like them to build.

The customer still has all the risks of ownership, technical debt and no one overseeing things properly. Organisations looking to implement ServiceNow in this way look to the consultant for guidance who will do what they can to help, knowing full well that once the implementation is done, they will move on to the next one. This leaves the customer to fend for themselves with a technology they are still learning about and may not have the in-house skills required to leverage the full benefits on offer. For large enterprises, with significant resources, this is less of an issue as they can afford to invest in teams of skilled people. However, this isn’t always the case for medium-sized businesses that also need access to the right skills to ensure best practice methods are followed, risks mitigated and value delivered quickly.

To help paper over some of the shortcomings of this approach, PS firms are now offering a continuation option, often referred to as a managed service. This normally looks like an adds/moves/changes resource to keep the lights on but doesn’t do anything to move the customer forward. As with any digital transformation initiative, the real benefits and return on investment are derived through continuous improvement and development of the platform. Once the core team responsible for the implementation has gone, who will be left to do this work? A remote systems administrator doesn’t have the remit, budget, time, or skills to even begin. Should the customer ask for any further platform enhancements, the work is carried out by reverting back to a traditional PS engagement… and so the costly and drawn out PS cycle continues.

The Fully Managed Service for ServiceNow

A Fully Managed Service for ServiceNow, by comparison, is the purest meaning of the term managed service. Managed services were designed to offer a higher level of abstraction, providing a ready-to-use environment for specific industries, use cases, applications, or development frameworks. The service provider is fully responsible for making sure the technology continues to work as it should. At POPX, we believe that wrapping digital platforms in a managed services layer is the best way to deploy, enhance and maintain complex technologies, de-risking change and resulting in superior outcomes.

The POPX MSP Platform, powered by ServiceNow, for example, includes the technology (Platform-as-a-Service) combined with everything the customer needs to be successful, all delivered as a fully managed and integrated service. This means all the development enhancements, maintenance, upgrades, customer success, daily running, support and training are all included at a fixed price. Further, to do this well a provider must have a high level of understanding of the customer’s industry sector. Some of the key benefits to the customer of a Fully Managed Service approach are:

Faster time to value
Lower risk and cost of ownership
Eradicates the need to hire specialist skills
Allows the customer to focus on growing their business

This method of technology adoption offers medium-sized businesses simplicity, scalability and flexibility, allowing them to work with the technology experts, rather than having to become the experts themselves.

Marion colour 2 Red Helix

Marion Stewart, CEO at Red Helix said: "I have worked with multiple professional services companies, implementing ServiceNow for various Managed Service Providers in the past, and I know all too well how difficult and time consuming this approach can be. What frustrated me the most was their willingness to build whatever we asked for, even though we weren't the ServiceNow experts in the room. What I really appreciate about POPX is that they work with us as a true partner. They always ask questions and make an effort to fully understand our objectives whenever we request something. They will honestly inform us if what we're asking for is unnecessary or if they have a better and faster way to achieve the same outcome. It feels very different from what I'm used to, and I certainly know which approach I prefer."

Why POPX and ServiceNow?

At POPX, we firmly believe that digital transformation isn’t a one size fits all approach. It should be tailored to specific business needs and work the way you want it to. Don’t be confused by managed service offerings that don’t go deep but use similar terminology, setting an unfair expectation. Fully Managed Services may be a better option for medium-sized enterprises, as the risk is shared and the responsibility for running, enhancing and maintaining the platform is with the provider, who is committed to working alongside you for the long term.

What sets POPX apart from implementation consultants, is that, because we are with you for the long-term, we constantly align the solution to your business goals, ensuring successful outcomes for your business. We do this at a fixed price that is transparent and covers everything you need along your transformation journey. We won’t leave you to fend for yourselves but will constantly review your needs and continuously develop the platform to meet them.

How can POPX support your Digital Transformation?

By partnering with POPX, you can tap into our expertise, access a best practices methodology and build upon a pre-configured and dedicated MSP Platform that delivers the experience your customers demand. POPX, together with ServiceNow, can help you make informed decisions that transform service operations in ways that pave the way for success.