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From ROI to Value Creation: BSS/OSS Vendors as Organizational Capital Makers
11 February 2002
 
Norbert J. Scholz  

ROI- and TCO-based BSS/OSS strategies won't suffice to help communications providers become profitable, nor will outsourcing. Vendors must actively help their clients with organizational realignment.




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Pages: 33






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Table of Contents


    
 ANALYSIS

    
 Executive Summary

    
 Objectives of Study
    
 Scope and Methodology
    
 Key Findings
    
 Gartner Dataquest Recommendations
    
 From ROI to the Creation of Organizational Capital

    
 Organizational Capital Creation

    
 Broadening Scope of ROI, TCO
    
 Methodology of Study
    
 Professional Services Mission and Approach

    
 The PSO's Primary Mission

    
 U.S. vs. International Vendors
    
 Established vs. Emerging Vendors
    
 PSO as Cost Center or Profit-and-Loss Center?

    
 U.S. vs. International Vendors
    
 Established vs. Emerging Vendors
    
 Charging for Professional Services

    
 U.S. vs. International Vendors
    
 Established vs. Emerging Vendors
    
 Economic Outlook for BSS/OSS Professional Services

    
 Bright Spot: Professional Services
    
 Laggards: Support Services
    
 The Professional and Support Services Value Continuum

    
 Professional and Support Services Provided Through In-House Staff

    
 U.S. vs. International Vendors
    
 Established vs. Emerging Vendors
    
 Services Bundling

    
 Services Bundling Combinations
    
 Internal Professional Services as Percentage of Contract Value

    
 U.S. vs. International Vendors
    
 Established vs. Emerging Vendors
    
 Professional and Support Services Through Third Parties

    
 Professional Services
    
 Support Services
    
 Third-Party Professional Services as Percentage of Contract Value
    
 Professional and Support Services Provided by Clients
    
 Packaging of Professional and Support Services

    
 U.S. vs. International Vendors
    
 Established vs. Emerging Vendors
    
 Gartner Dataquest Perspective

    
 Gartner Dataquest Recommendations
    
 Glossary of Terms


List of Tables


Table A-1.  
 Glossary of Terms
 

List of Figures


Figure 3-1. 
 Do You Maintain an Independent Professional Services Organization?
 

Figure 3-2. 
 Primary Mission of Customer and Professional Services Organization (U.S. vs. International Vendors)
 

Figure 3-3. 
 Primary Mission of Customer and Professional Services Organization (Established vs. Emerging Vendors)
 

Figure 3-4. 
 Is Your Service Organization a Cost Center or a Profit-and-Loss Center? (U.S. vs. International Vendors)
 

Figure 3-5. 
 Is Your Service Organization a Cost Center or a Profit-and-Loss Center? (Established vs. Emerging Vendors)
 

Figure 3-6. 
 How Do You Offer Professional Services? (U.S. vs. International Vendors)
 

Figure 3-7. 
 How Do You Offer Professional Services? (Established vs. Emerging Vendors)
 

Figure 4-1. 
 Total Margins for Services Revenue for Fiscal Year 2000
 

Figure 4-2. 
 In 2001, How Do You Expect Service-Related Margins to Change? (U.S. vs. International Vendors)
 

Figure 4-3. 
 In 2001, How Do You Expect Service-Related Margins to Change? (Established vs. Emerging Vendors)
 

Figure 5-1. 
 Services Staff Provides (U.S. vs. International Vendors)
 

Figure 5-2. 
 Services Staff Provides (Established vs. Emerging Vendors)
 

Figure 5-3. 
 Professional Services Bundling (Established vs. Emerging Vendors)
 

Figure 5-4. 
 Two-Services Combinations (U.S. vs. International Vendors)
 

Figure 5-5. 
 Two-Services Combinations (Established vs. Emerging Vendors)
 

Figure 5-6. 
 What Percentage of Average Contract Encompasses Professional Services Provided by Your Staff? (U.S. vs. International Vendors)
 

Figure 5-7. 
 What Percentage of Average Contract Encompasses Professional Services Provided by Your Staff? (Established vs. Emerging Vendors)
 

Figure 5-8. 
 Use of Third-Party Professional Services Organizations (U.S. vs. International Vendors)
 

Figure 5-9. 
 Use of Third-Party Professional Services Organizations (Established vs. Emerging Vendors)
 

Figure 5-10. 
 Professional Services Provided by Third-Party Providers (U.S. vs. International Vendors)
 

Figure 5-11. 
 Professional Services Provided by Third-Party Providers (Established vs. Emerging Vendors)
 

Figure 5-12. 
 Professional Services Provided by Clients (U.S. vs. International Vendors)
 

Figure 5-13. 
 Professional Services Provided by Clients (Established vs. Emerging Vendors)
 

Figure 6-1. 
 How Is Your Services Offering Packaged? (U.S. vs. International Vendors)
 

Figure 6-2. 
 How Is Your Services Offering Packaged? (Established vs. Emerging Vendors)
 



Browse Topics:
 
Independent IT Organization
Total Cost of Ownership
Return on Investment
Communications Services Provider Information Systems
Operations Support Systems and Business Support Systems




This document is published in the following Dataquest Market Insights:
 
Public Network Infrastructure Worldwide
Managed and Professional Network Services Worldwide
Carrier Operations & Strategies Worldwide
Carrier Network Infrastructure Worldwide




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