Global systems integrators, outsourcers and consulting firms are responsible for directly leveraging or influencing most IT investment in large corporations. Original equipment manufacturers (OEMs), software companies and other technology providers aspire to create mutually successful partnerships with the large influencers due to their ‘business case’ driven approach, their early stage engagement in the sales cycle, their C-Suite relationships with large multi-national enterprises, and the often-giant scale of the typical technology spend that their projects and engagements drive. The projects that these companies deliver are specialist and complex, meaning that companies who aspire to work successfully in the sector require skill, knowledge and a sophisticated alliance approach to gain credibility and maintain long term sustainable relationships.
The Ultimate Route to Market provides an insight into the practices, construct and culture of global consulting firms, systems integrators and outsourcers and provides a suggested framework for a successful alliance with them. Here, Ian Shanahan provides organisations with an overview of the global systems integrator, outsourcer and consulting firm sectors, provides insight into their culture and expertly explains alliance best practice methodology.
This is a must read for anyone that aspires to understand the market, how it works and how they become desirable to the large IT services companies, so that they can execute alliance engagements to the sector in a measured, methodical and low risk way.
Author(s): Ian Shanahan
Publisher: Routledge
Year: 2018
Language: English
Pages: 196
City: London
Cover
Half Title
Title Page
Copyright Page
Table of Contents
About the author
Acknowledgements
Preface
Introduction
An influencer driven sector. How did we get here?
Not another channel sale
Who is the book for?
A lucky break
The routes to reward
Sell to (for internal use)
Sell with
Sell through
Sell to (for client use)
Sell to as part of a managed procurement arrangement
How to navigate around the various routes to market: Stephanie’s story
1. Why do companies invest so much in hiring consultancies, systems integrators and outsourcers?
How do we define consultants, integrators and outsourcers?
Why do corporations and public sector bodies use a consulting firm or systems integrator?
Staff augmentation
Access to deep experience, IP and resources
A deep focus on a problem
Breaking down political and emotional barriers (aka detached view)
Deep technical knowledge
Why outsource?
Focus on your core business
Financial benefits through shared services
Labour arbitrage
Access to high quality and flexible capabilities
Round-the-clock service
The client-side perspective: Paula’s story
2. Defining the players
Systems integrators
Outsourcers
Consulting firms
The other players
Business process outsourcing
Indian pure plays
Vertically aligned niche consultancies
The ‘Big Four’
Services and vendor hybrids
Other common sources of influence
3. Why partnering is win–win
The anatomy of a large IT project
Phase 1: business case
Phase 2: architecture
Phase 3: implementation
Phase 4: support
Typical scenario
Phase 1: business case
Phase 2: architecture
Phase 3: implementation
Phase 4: support
Key personnel
Management consultant
Solution architect and technical architect
Alliance manager
Procurement/supplier management/product management
Project manager
Client sales lead (aka account manager, client account lead, etc.)
Legal
What’s in it for the large IT services company?
Completing the solution
Additional profit and investment
Sales competitiveness and differentiation through accreditations
Cost saving through utilising additional resources
The technical inside track
Operational benefits
Channel networking
New business leverage
Selling together
Why partnering is a win–win: Peter’s story
4. Understanding the business model
Culture
Hard work
Diversity
Knowledge capital
Integrity and reputation
Corporate social responsibility
Colleague respect
A final word on culture: decks
Career model
Career levels and performance management
Billing revenue
Deal shapes and shared risk
Time and materials
Fixed price contract
Business process outsource
Gain-share
Outcome-based (aka shared risk–reward pricing model)
Going ‘client-side’
The protocol of fee programmes
The background
What you need to know as an alliance partner
Co-opetition and ethical walls
Alliance excellence in the new economy: Georg’s story
5. Alliance best practice
Objections
Establishing goals
Stakeholder management
Going to market
Ensure that compensation for your own sellers reflects the importance of the partnership
Account mapping
Bring a deal
Awareness/training and collateral
Show preference
Comms strategies and promoting your company within the large IT services company
Governance and tracking
The alliance partner’s perspective: Gavin’s story
6. Innovating with global systems integrators, outsourcers and consulting firms
Why does it happen?
How does it happen?
Who does what and what are the legal considerations of joint innovation?
Innovation: a footnote
The innovation partner’s perspective: Ali’s story
7. Partnering in the new economy
How are the large consulting firms, systems integrators and outsourcers adapting to the digital age, and what does this mean for their partners?
1. Emphasise disruption
2. Make your product or service relevant to the way that your alliance partner views digital and understand your own digital message
3. Align to the cultural shift
What does cloud mean for the large IT services companies and their partnerships?
Outsourcers or systems integraters as hosters (sell to)
Consultants or systems integrators as influencers (sell with)
Reselling cloud services (sell through)
Digital marketing: an IT approach vs the traditional agencies
What is the conclusion?
The Internet of things and Industry 4.0
What does the future hold for the IT services sector and how does that affect you, the partner?
Don’t rely on your relationship with IT
Have your cloud partner strategy and commercial model straight
Provide a generous services blend and an opportunity for a working margin to negate commoditisation and off-shoring
Industry transformation encourages incremental IT spend
Be agile and cool
The digital disrupter’s perspective: Phil’s story
8. The 10 steps to success
Rule 1: have congruent goals
Rule 2: identify and really manage the right stakeholders
Rule 3: get someone’s mortgage dependent upon you
Rule 4: ensure that you have understanding leadership
Scenario 1: you already have the end-user client support
Scenario 2: realising revenue from a standing start
Rule 5: appetite for risk
Rule 6: be prepared to show preference
Rule 7: get credentials
Rule 8: be prepared to be flexible
Rule 9: work very hard
Rule 10: be resilient
9. How to put what you have learned into practice
Glossary and definitions
Additional reading
Consulting, outsourcing and systems integrator sector
Inside a consulting firm, outsourcer or systems integrator
Alliance management
Index
