Periodic performance assessment is critical for outsourced service engagements to ascertain whether client and service provider objectives are being fulfilled. Performance assessment of dynamic system is a systemic problem and calls for systems thinking approach to solve it. Traditional methods of performance assessment of service engagement use metrics, which are not often the real driver of satisfaction [1]. Besides, traditional approaches provide static point-in-time view of the engagement's health. This paper proposes performance assessment along a set of critical success factors (CSF) derived from IT outsourcing theories [2]. These CSFs provide complete perspective to IT outsourcing as they are grounded in economic theories on IT outsourcing. We propose system dynamics modeling and simulation based approach to assess performance of a service engagement along a set of CSFs.

Service provisioning models underlying service engagements evolve and change as a result of changes in business imperatives. This paper presents a system oriented simulation based framework to handle service engagement model transformation. This framework generates myriad of strategy levers for portfolio managers to choose from in order to handle model transformations. The simulation model along with other components in the framework offers a basis for designing strategy to enable an engagement model transformation by evaluating the impact of each lever on the overall costs, risks and values. The framework has also been illustrated with the help of a case study on engagement model transformation. We believe this study could be of immense value to managers of IT outsourcing firms who are faced with the challenge of handling long term projects that are prone to undergo transformations.

This paper reports a case study of a large migration program and the benefits of FSP approach to exploit the similarities among applications to be migrated and the defect analysis feedback loop. FSP approach is an acronym for- Fix the core issue-Fix Similar defects-Prevent occurrence of similar defects. The paper argues that there are substantial similarities in large migration programs and these could be exploited to expedite the causal analysis to reduce the time taken in inspection and fault detection and helps prevent faults thus reducing the effort and cost taken in migration. This paper modelled the FSP approach and simulated it with program data. Results validate the claim made by FSP approach with increasing similarity. Gains made by FSP approach in reducing the work with undetected faults and fault prevention are substantial. Effectiveness of FSP approach is dependent on degree of similarity among the applications being migrated. It appears from results FSP is essentially a quality assurance approach and reduction in effort and cost of migration are added benefits. FSP approach involves double loop learning.

This paper discusses As-Is state formation of a client engagement and a set of associated properties to derive rich insights and comprehensive understanding of As-Is state. Emphasis on As-Is state formation is based on the acumen that engagement model transformation is structure-behavior manifold between As-Is state and the desired End state. It takes systems thinking approach and leverages its techniques to innovative use to make this proposition. It advises properties such as completeness, diagnosibility, identification of second order machine, and prognosis for As-Is formation. It uses Cybernetic Influence Diagram (CID), Viable System Model (VSM) and System Dynamics to realize As-Is formation and its properties. This paper illustrates these properties with a case study example from a client engagement.