The tower model was intended to enable organisations to move away from large IT service management contracts provided by a single prime outsourcer. The new structure has separate IT components – such as hosting, applications development, security and desktop support which are contracted to different providers. One provider then takes on the role of Service Integration and Management (SIAM) to manage the various towers, without providing any of the tower contracts itself.
Principally there is a lack of awareness of the implications for the organisation undertaking the use of a Tower Model.
For example though Boeing did not chose to adopt a Tower Procurement they did decided to outsource the design and build of the Dreamliner, they failed to realise that they needed to adopt a totally different model of managing the contractors and facilitate the parties in working together. The result large delays and cost overruns.
Most of the Tower Procurements I have seen are failing to retain a very strong central team that can manage the System Integrator. Worse they have not thought through all the implications of the relations between the Towers and thus the gaps must be exploited by the suppliers as they have a duty to maximise the return for their shareholders.So that is the problem, I will discuss how to resolve it in my next blog. If you need any more support please feel free to contact us.