Procuring Services for Information Systems

We have talked mostly about the procurement of application systems and software. However, information systems management will require some, if not a lot of service procurement. Rather than procuring a product we will be asking a company to provide a service over a set of information systems functions which might include networking, support desk functions, and IT service continuity. In moving from a product to a service we move from the discreet to the continuous, we involve the customer on a daily basis in delivering the service. This means that procuring a service needs to address more about the people and the process. The procurer needs to specify what they will do as well as what it is expected the provider will do. Many IT companies such as IBM and HP now view themselves more as a service company than a manufacturer of computers, they have moved away from the boxes to the delivery of the services for which the boxes are only one part.

Tasks
Using the example of IT service continuity and the provision of disaster recovery services, explain the differences between procuring software and procuring a service. You will need to explain what IT service continuity is and offer examples of companies providing IT service continuity and the services they provide. What are the specific issues that might be involved in procuring disaster recovery services? What do they tell us about the specific issues in procuring a service rather than a product?