White Paper Introduces a New Business Model For Relationship Between CSPs and Managed Service Providers

A new whitepaper released by telecom IT solutions provider Tecnotree outlines competitive advantages of a new managed services delivery model for the communication service providers (CSPs). As per the whitepaper, the new managed services refer to the practice of outsourcing day-to-day IT management responsibilities of mission critical business support systems to a service provider.

The model introduces a completely new mindset for the relationship between CSPs and managed services providers. The focus shifts from value added to creating true business value. The business model changes from a fixed transaction to one based on business volume and performance.

In addition, the white paper shows that various forms of cloud computing offer new opportunities for acquiring BSS services. The paper cautions that many will rush to claim to provide Managed Services, but only few can really complete the evolution with the right mind-set, organizational competences and compensation model. According to Tecnotree, the white paper outlines some of the key aspects that need to change for MSPs to provide true value for the CSPs.

First and foremost, to achieve a successful long-term partnership, CSPs need to share their vision, mission and business objectives with their MSPs to ensure those are internalized by all team members and aligned accordingly, says the whitepaper. Second, the MSPs need to shift focus from value added to genuine value creation, from features to value, adds the paper. Finally, the whitepaper recommends MSP vendors to share the risks and rewards of its customer success through performance-based pay-as-you-go business models whereby success is measured in concrete, tangible indicators like revenue, number of subscribers or operational efficiency.

Commenting on the white paper, Tecnotree’s chief commercial officer Ilkka Aura said, “We firmly believe that the only way to formulate a true performance partnership is to tie the compensation model to the business success of the CSP partner and to the quality of service provided by the MSP.”