Key Benefits Of The Hybrid Service Delivery Model

* Aggressive SLA performance : Since the service provider has to be competitive, there is a very sharp focus on SLA performance. This is also coupled with cost performance to the same SLA (i.e. for the same service, get year on year savings for the same SLA).

SLA improvements achieved range from 10% to 15% depending on customer context.Largerimprovements have also been achieved when selective outsourcing has been used to redesign service delivery processes.

* Benefit of continuous performance improvement : The service provider passes on the benefit of understanding of the customer environment through savings on service costs.

Typical year on year savings range from 6% to 8%. Benefit delivery is through a variety ofoptions ranging from constant pricing over increase in user base to cash savings on payouts to vendors

* Flex capability : Since manpower management now shifts to the service provider, the short term spikes of resource requirements are handled by the vendor. This also insulates the customer from attrition of key personnel.

Short term spikes resulting from activities like migration are usually absorbed by the vendor. These can be about 5% of the total migration cost.

* Leveraging service provider's knowledge base: Since the service provider invests in deep technology skills and process skills in the line of business
technologies.

Benefits passed on by the service provider could be in the form of process improvements like Six Sigma or in optimization of design of infrastructure or
database.