What is Service Management?

What is Service Management?


how service management worksWhat is Service Management?

In today’s competitive market, a business needs to manage various aspects in order to succeed.  Even for many large companies, it is impossible to have the resources to deal with all of these aspects.  This is especially true in regards to the ever-changing field of computer technology.  That is where service management comes in.  Managed services providers (MSP) are hired to take care of certain aspects required to keep a business running smoothly.

To get an idea of how service management works, think about a chain of 10 hotels.  Each hotel generates a certain amount of laundry each day that needs to be cleaned.  Now, each hotel could hire a person in charge of cleaning this laundry, buy the washing machines, make a special laundry room, keep track of purchasing detergents, etc.  For the seemingly simple job of washing the laundry, there is work for several employees.  That means hiring around 30 employees!  But, the laundry needs to get done so what’s the alternative?

Service management provides an alternative to this scenario which would save money, time, and resources.  Instead of each hotel doing its own laundry, the hotel chain could hire own company to do all the laundry from the different hotels.  Instead of 30 new employees, a team of 5 would probably suffice.  Not to mention there is less record-keeping and other resources being used.

This is just one example of service management but it is being put into practice in various types of industries, especially in the IT field.  More and more IT managed service providers (MSP) are appearing to fill the demand for professionals to maintain computer networks and keep them secure.  The key word here is professional.  It is simply more cost effect for most businesses to hire an MSP then to train their own staff for the job.  Additionally, managed service providers in the IT field will usually have the newest, top of the line software and technology that they offer at a price less than what it would cost of the business to purchase/develop it themselves.

Service management is often considered a necessary evil in the business world but is a driving force when it comes to business strategy.  It is important to note that service management varies completely depending on the business and its industry.  A good service managed provider will be optimized to the specific client and their needs.

Often service managers are hired externally.  As a position this can be a bit tougher than managing internally.  When providing services externally, there are often many clients with their own individual needs.  It can be difficult to keep track of the goals and desires of each company’s needs.  Additionally, there must be the attention to differences in personality types when dealing with several different companies at one time.   What is important is that the external service management company is able to save the client money, time, resources, and provide quality that is beyond the client’s internal means.