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Hosting the Contract Portfolio

Deciding what to source | Sourcing structures | Multi-vendor sourcing | Service Provider Interfaces | Sourcing governance | Sourcing roles and responsibilities | Strategy, tactics and operations | Service models | Design driven by outcomes | Pricing as a design constraint |


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The need to host service contract s influences deployment patterns. Service contracts are the context within which the Service Portfolio realizes its potential for creating value for customers. Growth in the Contract Portfolio may require a system for allocating contracts to service units that can host them. Each contract has its own set of commitments made to the customer in terms of utility and warranty. Hosting decisions seek to distribute costs and risks in the Contract Portfolio across service units (Figure 7.15). For example, a follow-the-sun model involving a visualized Service Desk located in four strategically located service units may suit one contract. Other contracts may require localized Service desk s with on-site support.

Figure 7.15 Hosting of service contracts

Hosting decisions involve close coordination between Service Strategy and Service Operation. The strategy for a market space has an influence on the contents of the Customer Portfolio and the Service Portfolio. This is because particular perspectives, positions, plans, and patterns (the Four Ps) open up or close the possibilities of what services are offered, on what contractual terms and conditions, and with what type of customers. The combination of Service Portfolio s and Customer Portfolios generates the Contract Portfolio (Figure 7.16). In other words, every item in the Contract Portfolio is mapped to at least one item in the Service Portfolio and at least one item in the Customer Portfolio. The mappings are one-to-one, one-to-many and many-to-one.

Figure 7.16 The Contract Portfolio

Service Operation is responsible for delivering the Contract Portfolio. Service Transition enables items in the Customer Portfolio and Service portfolio to enter the Contract Portfolio. Transition project s are of two types: services and customers. For each type of transition there are costs and risks to be evaluated by Service Transition. Items are added to the Contract Portfolio only after the necessary service asset s such as infrastructure, application s, knowledge assets and staff are made available.


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