Behavioral Analysis of Service Delivery Models

Enterprises and IT service providers are increasingly challenged with the goal of improving quality of service while reducing cost of delivery. Effective distribution of complex customer workloads among delivery teams served by diverse personnel under strict service agreements is a serious management challenge. Challenges become more pronounced when organizations adopt ad-hoc measures to reduce operational costs and mandate unscientific transformations. This paper simulates different delivery models in face of complex customer workload, stringent service contracts, and evolving skills, with the goal of scientifically deriving design principles of delivery organizations. Results show while Collaborative models are beneficial for highest priority work, Integrated models works best for volume-intensive work, through up-skilling the population with additional skills. In repetitive work environments where expertise can be gained, these training costs are compensated with higher throughput. This return-on-investment is highest when people have at most two skills. Decoupled models work well for simple workloads and relaxed service contracts.