Out ‐Sourcing 2.0 The Next‐Generation of Outsourcing
Calin Rangu Director General
11.02.2009 Bucharest
Agenda 1. Why Next-Generation Outsourcing 2. Introduction of IIRUC Service 3. IT doesn‘t matter – does it? 1. Learnings from History and from Present 2. IT-Industrialization 4. The Evolution of Outsourcing Examples of international experience 1. Insurance 2. Healthcare 3. IT-Service Management
Why we see Next-Generation Outsourcing
An urgent need to out-source to professional companies IT will become commodity. Business will focus more and more on „WHAT“ (process-support) IT delivers instead of „HOW“ (technology) Cost-centric IT-outsourcing will be displaced by value- and innovationbased outsourcing And...the CRISE...
History and Financials History 1968: the original IIRUC company was established 1991: IIRUC-SA was registered as a shareholding company out of the original IIRUC company 2004: IIRUC SERVICE SA was established, based on the traditional IIRUC SA company 2008 (February): CEE Technologies Austria achieved the sole control over IIRUC SERVICE SA 2008 (October): Approval of the Master Plan for the company development 2008 (October): Opening new Headquarter with a Data Center facility and a central Call Center dept. Financials 2007 Turnover: 5,8 Mio. € 2008 Estimated Turnover: 7,8 Mio. € 2009 Forecasted Turnover 15 Mio. €
Future pass: developing in RO of the international offered IT Services
3.000 Server 20.000 Corporate Clients IT Operations
Software Solutions
40.000 km Network 520 TB Storage
Outsourcing
Client Management
1 Billion Transactions p.a. 300 Mio. printed Pages p.a. Several Data Centers
Security Services
Output Services
In Romania: Unique Competitive Advantages (w/o subcontractors for Client Management) National coverage for Client Management services Maximum 2 hour for reaching the client anywhere over Romania Between 4 and 12 hours solving time, depending on agreed SLA-s Repairing Centers facilities with skilled employees Just-in-time answer - thanks to the Call Center implementation SaaS solutions: ticketing and incident management, instant learning and team rooms solutions Prime-Contractor capabilities based on extended partnerships, HW/SW/networking equipment delivery Data Center Hosting services
Infrastructure: 350 employees 110 cars fleet 8 areas covering 58 nationwide locations 47 nationwide stores 50 service laboratories 1 national training center over 25,000 customers over 70,000 equipments in service Bucharest headquartered Running international projects (Ukraina) Multiple certifications
Agenda 1. Why Next-Generation Outsourcing 2. Introduction of IIRUC Service 3. IT doesn‘t matter – does it? 1. Learnings from History 2. IT-Industrialization 4. The Evolution of Outsourcing 1. Insurance 2. Healthcare 3. IT-Service Management
What History showed us … In early 1900s, most factories had private power generators because first utilities were to small and unreliable to supply power to manufacturers 100% 80% 60% 40% 20% 0% 1910
1920 utility supply
1930 private supply
Technological advances made central supply possible!
What Existing situation showed us … In 2009 a strong financial crise determine: 9Strong decrease of international and national business 9The lack of liquidity 9Reduced profitability 9The shrinkage of credit What means: ¾Decrease costs ¾Increase efficiency ¾Reduced number of employee ¾Investments moved in services
Business efficiency move companies to central supply!
IT Service Market
Software as a Service (SaaS) – ASP Reloaded?
ÆTransforming traditional IT Delivery models into „IT 2.0“ IT Service Models will be one of the biggest challenges for IT Service Providers in the upcoming years …
Agenda 1. Why Next-Generation Outsourcing 2. Introduction of IIRUC Service 3. IT doesn‘t matter – does it? 1. Learnings from History 2. IT-Industrialization 3. IT out of the Socket 4. The Evolution of Outsourcing 1. IT-Sourcing Dimensions 2. Examples of R-IT 1. Insurance 2. Healthcare 3. IT-Service Management
The Evolution of Outsourcing Core & non-core Business Processes along with IT retained within the Enterprise
Core Business Processes Non-Core Business Processes IT Delivery, Support & Management
Enterprise Boundary
Drivers 1. IT Outsourcing 2. (ASP-)Hosting Core & non-core Business Processes retained within the Enterprise
Drivers 1. SaaS 2. BPO Core Business Processes retained within the Enterprise
Core Business Processes Non-Core Business Processes
Core Business Processes
IT Delivery, Support & Management
Non-Core Business Processes IT Delivery, Support & Management
IT Services and Outsourcing – International Example Project: Centralized IT Services for 28 Austrian hospitals Challenges: Consolidation of the infrastructure for 28 hospitals with different IT services (Novell, Windows NT, etc..), including standardization of central und peripheral infrastructure services (mailing, firewall, proxy, antivirus, directory service, system management) Implementation of central support (Help Desk, Trouble Ticket) Implementation of SAP More than 10.000 user, timeframe 1 year for central services, rollout to hospitals 1 additional year Total approx. 350 server to be designed, implemented and operated at two datacenter locations (cold standby) Project management: project delivered in time & budget
Outsourcing and Client Management – International Example Project: IT outsourcing for a leading insurance company Challenge: complete take over of all IT services at an appointed date online take over of Client Management (remote management, software management, asset management) and help desk on an unfamiliar platform consolidation of central and peripheral IT services including system management, backup, etc. 334 server locations, 5.000 clients (co-managed with a partner), 160 telephone systems, 5 TB storage capacity, 14000 active components, output services Standardization to standards and amendment of standards to ease IT service process and reduce costs Take over of IT employees
IIRUC Service ‐ From a SaaS‐User to a SaaS‐Provider Service processes: clear, transparent documentation Integrated data‐flow between customers and IIRUC Service ITIL compliant documentation of all IT‐SM processes Consistent documentation of all incidents Multi‐client capability Improved value proposition for new customer projects
Thank you for your attention!
SC IIRUC SERVICE SA