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Optimizing organizational design in complex service delivery systems

IT service delivery becomes an increasingly challenging business as customers demand improved quality of service while providers are driven to reduce the cost of delivery. In this paper we propose a set of optimization models to recommend organizational design changes in complex service delivery systems. The optimization models take into consideration various design factors such as technology sustainability and management complexity, and provide recommendations to organizational design transformation including both customer focused design and technology focused design. We demonstrate the applicability of the proposed methodology using data from a large IT service delivery environment.