We’ve worked with many IT organizations that grapple with the question of centralizing versus decentralizing operations. Depending on organizational size and structure, appetite for risk and the strength and influence of the IT governance framework, rarely is the decision a cut-and-dry centralize or decentralize IT operations. Many IT organizations apply a hybrid approach to IT service management keeping the following risks and benefits in mind to optimize the best of both approaches.
Business Need |
Centralized |
Decentralized |
Considerations |
| Reduce costs |
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Experience shows that centralized IT operations have a broader view of IT costs and their impact on the bottom line. However a unified approach to IT infrastructure and platforms can enable decentralization of certain aspects IT operations. |
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| Improve service delivery and uptime |
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Improving service delivery and uptime is often tied to technological advances and process improvements. While a centralized approach offers greater control, a decentralized approach—with a centralized platform and approval process—can enable greater flexibility to add more efficient service delivery technology and provide the right metrics to continuously improve IT service management. |
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| Enable business agility |
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From an IT perspective, business agility is often a product of streamlined decision making based on greater visibility to necessary data. While it would appear that a centralized IT service management is the better choice for its broader perspective, a decentralized approach—with the right decision making authority processes in place—can be more effective at capitalizing on opportunities without compromising overall IT service management effectiveness. |
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| Ensure regulatory compliance, security and business continuity |
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Guided by strong governance, centralized policy and robust audits, it is not out of the question to decentralize aspects of compliance, security and business continuity. However, policy and governance should be centralized for optimum security and compliance. This is especially true for businesses operating in regulated industries. |
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Centralized approaches to IT service management, though cost effective in the short run, can result in a one-size-fits-all solution that’s not effective in larger, less homogenized organizations. On the other hand, a decentralized approach seems better aligned with business needs, but at a higher overhead cost. Hybrid, flexible approaches tend to be the most effective when core processes are well established within a strong governance framework that allows for business unit-specific flexibility. For example, while centralizing on a common infrastructure and monitoring platform, the organization can leverage configurability and even multi-tenancy to adapt the service management processes to the varied needs of the business.
Check out our website to see how Nimsoft can help you deliver more effective IT service management.
