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IT Project classification based on Service delivery

Classification of project based on Service delivery

  1. Staff Augmentation
  2. Managed services

1. Staff Aug. is the most common service rendered. The share of this service over the rest of engagement will be 80%+.You check the Annual report of TCS, Infosys etc. to know the real values.

Significance of staff Augmentation deals: You are doing Business with IT of the client. In general we say, we are giving bodies to the client to fill a role.

Normally T&E, Fixed price models are under this engagement.

There are few models like GDC which is billing / recognizing revenue as T&M but they are not considered as pure Staff Aug.

The vendor has some partial role. But the pure form of vendor control engagement models are managed deals

2. Managed Service deal: An application is managed by the SP (Service provider) and the SP will take care of the end to end working of that application within project scope. There will be a KT phase (the team work with the client and learn the business process under project scope) and once steady (KT is over), the SP will take care of the Application. The client will be little role and all responsibilities lies to the SP (in simple terms: If you are in this project, Your Company needs to own this application and do whatever for the successful operation/ implementation etc.)

    1. Service Render(SR)
    2. Service provider(SP)
    3. Knowledge Transfer

IT companies love to do this kind of engagement due to various reasons.

Significance: You are doing Business with the client

Managed Service deals are classified into

  1. Managed service
  2. Managed Capacity
  3. Managed Function

  Please search in Google and if you have any doubt in specific, please feel free to ask

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