In an age when everything seems to be going "as-a-service", there emerges a parallel trend of "boxed" service offerings. As service providers continuously strive to raise productivity levels, the productization of IT services leads to standard SLAs, menu pricing, and templatized delivery models. Productization is an interesting and growing trend in the ITO world.
However, there is a need for balancing the productization agenda against a customized service mentality. Not everything lends itself to productization and all service providers need not adopt the same flavor of productization. For service providers there are inherent risks and benefits associated with productization, and productization strategies can have complex interplays with the service provider's legacy, aspirations, and plans for attacking a particular market segment.
This report explores the trend of productization in the ITO space and analyzes the different strategic stances adopted by service providers. This report discusses:
The definition of productization - what it is, and what it is not
The benefits of productization - why it makes sense for buyers and service providers
The challenges of productization and the pitfalls associated with productization strategies
Three levels of productization - strategic stances adopted by service providers, their rationale, risks and key success factors
Note: this report is from 2012. See our most recent R2R research report.
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