Optimizing IT Service Management for Mid-Market “Managed Services” Client

Client Background

Our client, a mid-market employer with just under 1,000 users, engaged IT Authorities to manage their IT services. The client operates in a dynamic environment with regular employee turnover, necessitating frequent IT changes. Our managed services offering includes unlimited support, but changes to the IT network, such as user onboarding and offboarding, incur additional per-hour billable fees.

Challenges

The client faced challenges managing the costs associated with standard and white glove change requests. White glove services, characterized by a higher level of customization and support, were particularly costly, with each ticket costing approximately $340 more than standard changes. The client needed a strategy to control these expenses while maintaining high service quality.

Analysis and Findings

IT Authorities conducted a thorough analysis of the client’s IT service usage, focusing on standard and white glove change requests. Key findings included:

1. Seasonality and Ticket Volume: There was a noticeable seasonality in ticket counts, with peaks during March-April-May and troughs in August-September. The total ticket count grew year-over-year by approximately 15%, indicating increasing demand for IT services.
2. White Glove Service Usage: Despite a 21% decrease in the average billable hours per white glove ticket since 2022, the cost remained high. The share of white glove tickets also decreased by 22 percentage points, but they still constituted a significant cost factor.
3. Standard vs. White Glove Efficiency: On average, standard change requests took significantly less time (~0.5 hours) compared to white glove requests (~3.0 hours).
   However, only a small portion of tickets handled by some employees were standard, leading to higher overall costs.
4. Billing Consistency: The analysis revealed that the total hours billed were often flat or down by up to 11%, but rarely below the contracted block of 80 hours, preventing the banking of hours.

Recommendations and Implementation

Based on the findings, IT Authorities proposed several strategic changes:

1. Increase Standard Change Block Hours: We recommended increasing the block of standard change hours to 160 to stabilize monthly billing and avoid overruns. This would allow for a more predictable cost structure and reduce the likelihood of unexpected expenses.
2. Promote Standard Change Requests: Encouraging the use of standard change requests by providing clear, self-guided instructions for new users. This approach aimed to reduce the time spent on all ticket types and streamline the process.
3. Evaluate White Glove Benefits: A critical evaluation of the white glove service was suggested to determine if the additional costs were justified. We recommended exploring if a portion of these tickets could transition to standard requests, potentially saving significant costs.

Results and Client Satisfaction

The client implemented these recommendations, leading to:

• A more balanced distribution of ticket types, with a significant shift from white glove
  to standard changes.
• Increased efficiency in handling standard change requests, resulting in cost savings.
• A stable and predictable billing process, reducing the financial uncertainty
  associated with IT service management.

The proactive approach taken by IT Authorities in analyzing the client’s IT service usage and recommending strategic changes was highly appreciated. The client expressed gratitude for the thorough research and analysis, which not only optimized their IT service costs but also ensured they were not overspending in any area. This case demonstrates IT Authorities’ commitment to providing tailored solutions that meet the unique needs of each client.