The Service Triangle has been adapted from Fig 3.4 [Service Strategy 2011 Edition]. The purpose of the Service Triangle is to illustrate how each service is based on a balance between Price, Functionality (what the service does) and Performance.
Service Strategy Page 50, Figure 3.4
A reduced Price point will result in lower performance and/or functionality. Conversely if increased functionality or improved performance is required the Customer will typically have to pay more.
The ability of a service to create value from the customer’s perspective is a function of both utility and warranty
Services come in many flavours, but all have in common the creation of value for the customer by facilitating desired outcomes without requiring customer ownership of specific costs and risks.
Service Assets are the Basic Building Blocks
Service Providers must configure their service assets (in the form of capabilities and resources) to deliver services that create value and satisfy the needs of their customers.As you can see from the diagram above People are intrinsic to both Capabilities and Resources. Service focussed personnel aligned with distinctive capabilities will be difficult to replicate; so this configuration should act as a defender to outsourcing.
For now and into the future Infrastructure resouces will be seen as a commodity and will be virtualised first and then moved into the cloud (remote service provision). The only resources that will be retained relate to client sensitive data (Information) and strategic applications.