Research into the Structure, Functions and Processes of the Retained IT Organisation at Old Mutual

Author: Moyce, Dawn Wendy
Supervisor: Professor Dr. J A Watkins
Date: March 2008

In 1999, a strategic decision was taken by Old Mutual South Africa (OMSA) to outsource its information technology (IT) infrastructure management to Computer Sciences Corporation (CSC). The Retained IT Organisation was established to manage the delivery of those services, with emphasis placed on Service Level Agreement (SLA) achievement. Currently the retained organisation construct spans two entities within OMSA, namely Old Mutual Services, Technology and Administration (OMSTA) and Customer Solutions. The OMSTA leg of the operation is responsible for IT Service Management while the Customer Solutions leg is responsible for IT Governance and Strategy.

The contract with CSC runs out in March 2008, and OMSA has decided to go to market with a Request For Proposal (RFP) in order to select a vendor that can deliver IT infrastructure services, which meet the changing needs of the organisation. The primary reason for the RFP is that there is a growing dissatisfaction among the business unit IT departments regarding their IT infrastructure services. The current Retained IT Organisation has not been able to successfully manage the existing IT Infrastructure Outsourcing contract, calling for a review of the Retained IT Organisation in order to ensure successful delivery of infrastructure services by the new vendor.

The purpose of this study is to determine which infrastructure, governances and processes need to be implemented to culminate in the successful integration of a Retained IT Organisation in OM. The key objective for undertaking this research is to effect a paradigm shift in the way that the organisation manages IT infrastructure services.

This is an action research project conducted within a single organisation, designed to bring about a change in the management, governances and processes of the retained IT organisation. It will include the use of observations and interviews in order to gain insight into the issues and probable solutions. The nature of the research is qualitative (phenomenological). Furthermore, the proposed solution will be implemented in terms of the key directives of the concept of action research. It is anticipated that the findings of the research will support the notion that the implementation of proper structures, governances and processes that support the achievement of business objectives, will help to overcome the issues pertaining to IT service management.