“in today’s digital services economy no single company can now survive as an independent entity and succeed for a sustained period. It is crucial that organisations focus on core competency, and partner to gain access to the competencies outside of that.”
TM Forum’s “Open Digital Ecosystem: Business Partnering Guide, Practical guidelines for Partnering in the Digital Economy.”
The speed of innovation is opening up a new variation on the aged concept of managed services.
Early examples were basically just another term for off-shoring or out-sourcing business functions to jurisdictions where cheaper labour could be applied to systematic processes. Managed services have been through other iterations such as having external parties take responsibility for delivering service from operational assets, such as networks.
Cloud services have taken the managed service concept to another level, by providing the ability to outsource customer experience, infrastructure, processes and people, providing an end-to-end service as if delivered by the prime company (eg a CSP). This model allows the CSP to deliver innovative new services to customers via managed service partnerships with a reduced time to market (TTM).
In many cases the CSP simply clips the ticket (ie adds a margin onto the customer’s bill that is generated by the cloud provider).
The impacts of OSS are potentially two-fold:
- CSPs are going to want to bring more of the cloud provider’s data back in-house once they start realising the value of the customer-data that they’ve effectively outsourced
- As customers become more reliant on data from their communications networks, opportunities will emerge for outsource providers to deliver value-added managed OSS services to the CSPs customers where CSP OSS are too cumbersome to deliver outward-facing information, turning a cost-centre into a revenue generator