Hi Elisha,

Positive impacts can include reduction of human errors & risk, improved efficiency & productivity, improved SLA & customer satisfaction as well as cost reduction. These positive impacts can be achieved when IT managed services / outsourcing service providers adopt the following organizational structures:

1) Organizational Structure based on Full Time Equivalent (FTE) – instead of based on headcount which is more costly, some service providers design their structure based on FTE / effort model in which IT staff are delivering their services remotely / off-shore from delivery centers all over the world. This virtual structure enables concentration of IT staff in one center which can develop economy of scale that can reduce the operation costs.

2) Organizational Structure based on Specialization – e.g. even though an IT job like server administration can be handled by an IT staff, some service providers further break down this role into multiple sub-tasks e.g. eyeballing server event, responding to event when first alerted, troubleshooting level 1, 2, 3 etc, patch management, break-fix support, vendor management etc so that each sub-task is specially handled by a pool of IT staff that only focusing on their sub-task day-in & day-out for different customers. This structure enables the team to be very specialized and increases their productivity. However, the team members feel boring easily and once they leave, replacement can be found easily. This structure can reduce operation cost but job dissatisfaction and attrition can be high.

3) Organizational Structure based on Advanced Technologies – some service providers invest in technologies like IT process automation, orchestrated automation, cloud computing etc in which organizational structure generally is flatter and consists of lesser IT staff. However, these IT staff are very skilled in using these technologies to deliver their work in which human errors are reduced, system exposure & risk are decreased, job efficiency & productivity increased, improved SLA, cost reduction as well as customer satisfaction.

4) Organizational Structure based on Project Team – this longer lasting structure normally consists of skilled IT staff hand-picked to join as team members to serve a dedicated outsourcing customer until contract ends / renewal. This structure usually consist of IT staff that can demonstrate higher team work, team cohesion, team effectiveness and sometimes increase customer satisfaction.

Regards,

Fung

Interesting topics,

The organizational antecedents of a firm's supply chain agility for risk mitigation ... well as to manage disruption risks and ensure uninterrupted service to customers. ... However, it is unclear if collaborative relationships provide benefits that ..... is used to reveal the evolution of the intellectual structure of the Organizational Management

Hi,

Although this paper focuses on supply chain in general, it is a good starting point for your topic.

 The Impact of Organizational Structure on Internal and External Integration: An empirical, cross-regional assessment

Xenophon Koufteros, Xiasong (David) Peng, Guanyi Lu, Richard Peters

Any organization structure demands proper planning initial as the proper foundation for the steeping stone for successive steps .

Man ,material .& finance are the basic requirement for controlling the managed services.

For controlling the finance basic initial steps are for preparing systematic budgetary control of capital & revenue expenditure .This may certainly help & control the material requirement of raw material ,first moving items ,& last but not the least the important need of machinery ,& other required equipment .

For making & effective structure of organization the top most manager apart from the basic know how he must have an dynamic approach under the review of economic structure & policy in the mind .With this a good Management team structure along with officer & staff members can make working system successfully as per the organization chart earlier prepared while making the organization structure effective.

Last & but not the least working force of workers should also be carried out in the proper planned approach .

In the above line it is very likely that managed services may make the foundation the structure of the organization on the road  to success & also may help to with the challenges of the competitive line structure.

Hello, Elisha.

If we view an organization as a named repository for work, resources, services, and other organizations, then the organizational structure should include the work and resources necessary for successful service delivery. If portions of that service delivery are dependent on outsourced services, then the organizational structure should include the work necessary to ensure that the service provider

• delivers quality discrete services in a timely manner and
• assures the quality and availability of continuous services to the needs of the contracting organization.

Hence, the positive impact of the organizational structure is that it embeds the awareness of its dependencies and internal responsibilities necessary to deliver according to its service catalog.