Industry experts frequently site statistics about failed TLM services engagements, indicating the majority of relationships don’t last past the initial term of the contract. While it does seem like a high percentage, anecdotally we can confirm that most IT/ Telecom executives we speak with are, in fact, disenchanted with their current provider. So why?
1. Unrealistic Expectations (Sell it and Forget It)
It’s common for service providers in any high-tech space to somewhat exaggerate capabilities. Unfortunately, TLM services has seen this taken to a new level. If providers are willing to structure services and contracts “however you want it to work,” consider that a warning signal. Their interests are likely short-term and not necessarily aligned with yours.
2. TLM is a High-Touch Business (Patch-Job Operations Models)
If it feels like your account management team with your existing provider is trying to stay afloat, they probably are. Delivering a full-service TEM / TLM solution is hard, and can’t be fully automated with technology. It requires a robust approach and investment in both technology and services to be successful. Unfortunately, many TLM services providers are not making adequate investments.
3. Providers Trying to Get Software Margins in TLM Service Business
We\’ve all been watching the market evolution, the frequent acquisitions, and seemingly fire-sale “exits.” This is indicative of a market with too many providers that haven’t established business models that are sustainable long-term. Providers are trying to earn software margins in a services business. To this end, they are using short-cuts in operations which impact performance and your business outcomes.
While one can debate the actual percentage, the discontent is real, and every enterprise executive should take notice and consider how this affects operational risk.
Enterprises must consider strategies to mitigate this risk. Chiefly among those risk-reduction strategies is to bust the bundle between TLM services and software, empowering you to optimize both.
