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Can your service desk survive the competition from managed service providers?

Can your service desk reduce cost per user by 50% in the next 5 years? According to Gartner then this is necessary if you will keep up against the large service providers.

Gartner has researched the costs of running a modern service desk or the cost per ticket on an average. The cost per user per year in 2017 is approximately US$ 250 per year. This is based on an average number of contacts per end user of 15,2 per year and a cost per contact of $16,30. A number of contacts include support self-service tools – the cost includes all cost elements for a full cost contribution. These facts are found in the Gartner report: Gartner IT Key Matrics Data (G00341784).

Gartner MSP costs for service desk
Gartner MSP costs for service desk

If you prefer to work in an internal service desk then you may have cause for concerns. In another Gartner report covering the service providers, the average annual price per user per year in 2017 is US$ 144! (Gartner G00326908). When you buy such a service you have internal costs too. You must go through an evaluation process and then still manage the contract. If we add 20% in internal costs for that, then the annual price will be US$ 173. The service provider pricing is then 30% below the internal costs in 2017.

According to Gartner the cost difference is today primarily explained by off-shoring the bulk of the manpower by service providers.

This is only the beginning however, Gartner predicts that the managed service providers now will change strategy and invest heavily in tools to automate and give self-service to users. They expect that the manpower costs from offshore countries will raise significantly in the future, so this strategy will not bring new benefits.

Projections for service desk price per user. Labor vs non-labor related cost graphic
Projections for service desk price per user

Gartner predicts that the Price per user per year from service providers in 2021 will be US$ 82! Are you ready to drive down your internal service desk cost to around US$ 100-110 to be competitive to the offers from the service providers?

The only way to achieve this is self-service and productivity tools. When app 25% of end-user contacts are related to passwords, self-service of passwords should be among the first tools. It only contributes value if users accept the tool however. Recent research by Service Desk Institute shows that only around 20% of organizations with self-service reach 60% adoption or more. If you are below 60% then you have the cost of the tool but will still have to handle the majority of calls by your staff.

It is probably true with all self-service tools that you must focus on user adoption. Following a best practice and monitoring operational results is the key.

Security and GDPR requirements are about to increase your costs for the password process. If you only have a manual process for user authentication when a user calls with a password problem, your security and GDPR department will challenge you very soon! What process do you have to prevent a criminal to get a password to a real user’s account? You probably must tighten up procedures significantly. This will increase your costs and not decrease them. This will further improve the value of the self-service business case.

Even in the best password self-service implementations, some users will call the service desk to get assistance, so you must have a secure authentication process for them – and being able to prove that you are compliant. So no matter whether you have password self-service or not you must take a close look at the security and compliance of the authentication process at the service desk.

Contact FastPassCorp for information on best practices for self-service implementation and for secure manual authentication.

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