Market Test – Confirm Value for Money
Confirm that current or future IT services deliver value
With shortening contract lengths, the increasing tendency to multi-source and the rise in cloud-based solutions, it is increasingly more difficult to demonstrate the “Value for Money” (VFM) of IT services. This is true for both internally or externally delivered IT services.
Benchmarking has long been the traditional approach to measuring “value” of the services delivered. While it is a widely accepted approach, it also has its downsides: it can take a long time, it can require significant effort and it can also be relatively expensive.
Some have tried to counter the benchmark approach by conducting surveys, but the very nature of surveys makes the underlying data easy to critique and dispute, making them a somewhat discredited approach to defining “Value for Money”.
VFM Market Test – A New Approach
In response to market demand, ImprovIT has used it’s market and benchmarking expertise to develop the VFM Market Test. It uses the same methodology ImprovIT developed for more detailed assessments. There is no compromise in quality, only reduced effort by stripping down data collection and associated workload to the necessary information only.
The cost of delivering a service is significantly influenced by a number of factors including service levels, contractual risks, number of locations, security requirements, on/off-shore delivery, and several other drivers.
ImprovIT’s Market Test ensures that both qualitative and quantitative aspects of the service are taken in to account to provide a balanced view of the services delivered.
ImprovIT’s methodology (as shown above) identifies the links between key price drivers. The Market Test approach uses a simplified version of this methodology to focus on the essential elements of Price, Volume, Quality, Scope and Complexity (green boxes above). This more focused approach allows us to work more rapidly and requires less effort from your team. We can quickly move through the analysis to demonstrate “Value for Money” of IT services more rapidly when compared to a more traditional benchmarking approach.
Market Test Benefits
ImprovIT’s “core only” approach saves time, money and effort by removing some of the more arduous requirements of a full detailed benchmark, while still delivering a clear and unequivocal assessment of Value for Money:
- Reduced Effort = Reduced Cost
- Shortened Timescales = Report produced in 3-4 weeks only
- Independent confirmation of value
- Negate the need for repeated ITT /RFP (outsourced situations)