You look at most industries and, over time, either the products or services
on offer do tend to become more utility-based. Xansa chief executive Alistair
Cox says there are a range of potentially disruptive innovations that might
change the path of the IT outsourcing industry.
But he does not believe there is a whizz-bang new technology that is either
with us right now or about to appear that will rewrite the rulebook.
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‘Everything that we need to move to the business services ethos exists today,
it just needs to be assembled in a slightly different way – but all the
components are there,’ he says.
‘You look at most industries and, over time, either the products or services
on offer do tend to become more utility-based and, in many cases, more
commodity-driven as well.
Take a look at aspects of the IT business. You look at power, you look at
bandwidth, you look at storage: all three of those areas have moved or are
moving to a utility model.
Organisations, and suppliers, have to be able to move away from bespoke
solutions so that they can offer standardised services delivered as utility
business models.
Cox says software as a service is an interesting concept that has been around
for a while now – and which has yet to really find its legs. However, he says
there is no reason why it should not become popular.
‘I think software as a service will follow in the footsteps of power and
storage,’ says Cox. ‘The question then is, at what stage can the services
themselves start to become more utility-focused and should they even become
utility-focused? What will drive that is a very different service delivery
model.’
Cox says the industry should perhaps stop charging customers based on the
number of people times rate-card, and start charging on a cost per web site hit
recorded.
‘In that respect, the supplier has to own the way of doing something to avoid
being commoditised, which involves owning all of the knowledge – and possibly
the application – to be able to provide that business service,’ he says.
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