Large organisations often find that following an extensive sourcing programme to procure telecommunications and networks services (TNS), a significant amount of the business case value 'leaks' throughout the life of the contract. Hudson & Yorke's view is that to prevent this, CIO's must take a strategic approach to the TNS operating model; one which is multi-dimensional and integrates with the wider ICT eco-system.

The operating model is a vehicle to enable successful execution of ICT / TNS strategy, to realise business case benefits and to minimise value leakage. A strategic approach to the operating model will integrate TNS within the wider ICT eco-system and facilitate the interaction between external vendors and internal business units.

The operating model must be multi-dimensional and take in three core inter-related components:

1. Service management model - this outlines the customer-vendor demarcation of service responsibility.

2. Delivery organisation - this identifies the customer and vendor organisational structures required to support the delivery of TNS within the overall ICT eco-system.

3. Contract governance framework - This provides the principles, rules and processes for effective decision making and accountability in respect of the organisation's TNS portfolio.

For more information on how organisations can establish a more effective TNS operating model and minimise value leakage, download our viewpoint at

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