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Service Management A Promising Solution

The tertiary sector of the Indian Economy - Services, is experiencing a boom. It comprises a gamut of business activities in retail, insurance, governance, banking, etc. What exactly does it involve? What are the skills required of those who manage services? Here is an in-depth look at this area of management.

Service Management is an outsourcing activity. We are quite familiar with the term "Business Process Outsourcing" (BPO). Just as a BPO subcontracts business functions to a team of consultants with the primary purpose of lowering costs and running the company proficiently. Similarly, Service Management is outsourced network dependant assistance. To put it simply, they are 'outsourced software packages'. They are also called IT infrastructure management tools. These services are provided by agencies on a subscription basis. These agencies are collectively called Management Service Providers (MSPs). The purchasing company is expected to pay for these services at regular intervals whether on a - monthly basis, a yearly basis or as the subscription may state.

Service Management includes management tools and services, which support business demand. The customer company may select the type of services it requires and subscribe for it. A 'Service Level Agreement' is issued by the MSP to its customer. It defines exactly what the MSP is supposed to do for their client and how it is supposed to do the designated service by maintaining a certain level of quality.

The need for "Management Services"

With the continuous and phenomenal improvement in technology, IT and its enabled services have become very complicated. Today, increasingly, business activities depend on network infrastructure - the most common being the Internet for their business execution. As a result, teams of highly skilled personnel, whose services are quite expensive, are required to run their firms smoothly. The present shortage of trained people and the high attrition rates have made it exceedingly difficult for corporate houses to maintain their IT expert quorum and run their businesses without a hitch. As a result core business activities suffer.

Outsourcing such management services gives corporate houses a dual advantage. They no longer have to struggle to maintain an expensive IT expert staff nor do they have to get hassled by the nitty-gritty of management. The MSPs provide user-friendly software, which are maintained and upgraded by them. Proportionally management costs get significantly reduced. The customer-oriented enterprise can thus concentrate on its core business objectives ensuring client satisfaction.

Service Management significantly reduces the time-cycle for key processes. It improves the 'workflow' to get the course of business action on paper quickly. Reduces error considerably because of the installed instant corrective tools to ensure accuracy. Fax and mail delays are also almost non-existent.

Total outsourcing has not yet firmly established itself in the corporate world. Firms still outsource only a part of their management services and keep some in-house. However, research agencies have confirmed growth in this sector. The META Group Study states that by 2006, nearly 95 percent of Global 2000 companies will outsource at least one of their strategic IT function.

Management Service Providers

MSPs are broadly divided into three types

Captive centres
These centres undertake business only for their multinational concerns.

Third party providers
They provide outsourcing services to other companies like complete IT systems and set up projects for other firms. The services are similar to Internet software services.

Joint ventures
This is mainly concerned with off-shored outsourcing. A local firm collaborates with a foreign one to develop and activate services and then sells its interest to the foreign company. A few functions/operations covered by Management Services

1. Function Supervision
   This function defines clearly, every individual task that helps realise the overall goals of the enterprise. Performances are monitored and reviewed at regular intervals. It helps to get rid of unnecessary and non-performing divisions of the client firm.
   
   
2. Network Management
   This is a very vital responsibility carried out by MSPs. Areas like database management, back-up and disaster management, storage administration are covered under this head. It requires highly skilled personnel for implementation, who have to integrate different network functions and make them work towards the fundamental objectives.
   
   
3. Intrusion Detection
   This gives out a warning if a viral/hacker/cracker attack is identified. However, it cannot repel the attack. The company should have a proper security system backed up by the use of appropriate software and network operators to be able to ward off such attacks.
   
   
4. Functional Assessment
   It is used to test the actual accuracy and effectiveness of the company's performance after outsourcing a service. This helps the company to understand if the prescribed service is providing benefits or not.
   
   
5. Public Key Infrastructure
   It facilitates the safe use of unsafe networks such as the Internet. It helps to repel unwarranted entry into the company's network, safe-guarding its vital statistics.
   
   
6. Managed Firewalls
   It conducts complete location evaluation, ensuring the security of all the entry points to the customer's network. This does not allow the illegal use of the company's data.
   
   
7. Vulnerability Scans
   This software conducts daily tests to spot and rectify the loopholes in the defenses of a company's network. This helps to protect the company's data.
   
   
8. Helpdesk
   Installation of onsite and remote knowledge based support technologies such as Remedy, Advanced Help Desk, Track-IT, magic Helpdesk, etc. These should be easy to understand and use.
   Service Level Agreement (SLA)
   
   It is the proof of agreement between the MSP and the customer enterprise. It helps both the vendor and customer to find out the level of monetary and functional success of their outsourcing venture.
   
   A good SLA should ideally indicate-

• Parties concerned
  
  
• Description of the service
  
  
• The frequency and type of reporting and assessment
  
  
• Tasks and duties to be carried out
  
  
• Payments and fines
  
  
• Firm goals and their scope
  
  
• Principles
  
  
• Space for upgrading SLA
  
  
• Crisis and security management
  
  
• Prioritising functions
  
  Shortfalls of MSPs
  
  The shortage of trained personnel is the common woe of MSPs. With multiple clients, MSPs have to make SLAs for every customer. The content of the SLA is made according to the customer's business requirements. Different companies may subscribe for the same service, which could lead to the violation of an SLA.
  
  Pure-play (independent) MSPs who don't enjoy the reliability of brand names; have a tough time convincing their clients about the dependability of their services. For this they have to be completely familiar with client's business plans.
  
  Another hindrance to MSPs are frequent power cuts. As these services are network dependent, power cuts result in loss of time and revenue.
  
  Career prospects in Service Management
  
  Service Management being a network-based service provides a vast horizon for a career. Experts are required for production, support and maintenance of Services Management. Network Managers, Security Managers, Data Ware Housing, Data Base Administrators, Warehouse Applications Analyst, Test Managers and Planners, Test Co-coordinators, Testers, Automatic Testing Specialists, Stress Testing Experts, Programmers, Windows Engineers and Consultants, Monitoring Specialists, Quality Assurance Specialists, Managers and Training are some of the employment areas.
  
  MBA and Services Management
  
  An MBA student is commonly known as a management student, and an MBA graduate as a management graduate. The term Services Management comprises the word management. So we may infer that there is a connection between them!
  
  Studies reveal that almost 20 % of management graduates opt for jobs in consulting firms. Although separate figures for Service Management are not available, a report by NASSCOM and McKinsey forecasts a short fall of 500,000 professionals by 2010 in the IT and ITES sector. Studies have also revealed that India produces approximately 3,50, 000 engineers every year suitable for IT jobs. The rest of the IT recruits come from Arts, Commerce and Science backgrounds and they are backed with degrees from management schools, IT education and technical centers.
  
  A key unit of Services Management is Network Management. This area alone offers a vast opportunity for management students with an engineering background. It requires technical skills such as: knowledge of network, capacity planning, SLA monitoring, reactive management of networks and problem isolation techniques, dynamic resource allocation to meet fluctuations, event co-relation to meet business ends, discovery and resolution of bottlenecks in network, effective management of bandwidth to accommodate data traffic and quick diagnosis of problems.
  
  Skills for successful Service Managers
  
  Technical savvy and outstanding personal skills are the sure shot combination for a successful Service Manager. Being a good listener, congeniality, having innovative ideas for solutions, enthusiasm and passion for the job, as many a time work is done under stressful conditions, could make you a successful manager. Personal skills are important because even though Service Management is a technical field, coordination of the various tools through teamwork can attain the desired results.
  
  This is a good field for MBA graduates with an engineering background. Engineer-MBAs understand both technology and market trends. As a Service Manager belongs to a technical background, analytical abilities and being up-to-date on the latest technologies is also a must
  
  Remuneration
  
  Depending on the educational background and the management institute a Service Manager could hope to enjoy a pay packet varying from Rs1.5 lacs to Rs15 lacs per annum in the Indian market with additional perks on the lines of BPOs. There is such a wide range because compensation depends on the entry level of the MBA graduate and the MSP reputation. Service Management is an emerging industry and salaries are expected to show an upward trend.
  
  Conclusion
  
  For a management student with a technical inclination Service Management could be the perfect choice for a career. Still a sunrise industry, the Service Management offers vast growth opportunities. Technology is a continuously evolving dynamic factor of production. It promises change and improvement with no chance of monotony. It is an exciting career option for people who are not sticklers to routine and have a thirst for knowledge and trying out something new!
  
  

  Some major Indian MSPs Wipro Technologies Genpact Infosys Soft Del IBM HCL Technologies Ltd Reliance Technologies BSNL