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22.02.2006Outsourcing_SBS_Presentation

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Information about 22.02.2006Outsourcing_SBS_Presentation
Business-Finance

Published on January 15, 2009

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Outsourcing - Built on Trust : Outsourcing - Built on Trust Edgars Puzo 21/02/2006 Moscow Slide 2: 2 The Outsourcing Market - Positioning Drivers for Outsourcing Approaches to Outsourcing Facts & figures Innovation Conclusions What is Outsourcing ? : What is Outsourcing ? IT outsourcing involves operating all or a portion of a customer's technology infrastructure, including systems analysis, applications development, network operations, desktop computing and data center management Business Process Outsourcing (BPO) is the complete management of selected processes such as Finance and Administration; Operations; Sales, Marketing and Customer Care. Typically, Outsourcing involves an annuity based contract/relationship based on performance metrics (SLA’s) with fixed pricing It may include the transfer of assets and employees Source: Gartner The Outsourcing Environment : The Outsourcing Environment Feb. 2005 (actual) *Source: IT- and Process Management Market - Gartner Dataquest July 2005 (SBS Market Model) Outsourcing Volume by Region 2004* World Market Development Outsourcing North America Western Europe Japan Rest of World Asia-Pacific Financial Services Manufacturing Public Sector others Communications Services Retail Trade Transportation Utilities 9,0% 6,3% BPO ITO 7,3% 187’’ 249’’ IT Mgmt./Outsourcing world market forecasts 2003 to 2005 Aug 2004 2006 2007 2008 183 ” 123 ” 157 ” 2009 169” 2003 2004 2005 183” ” ” +9,2% CAGR 5Y May 2003 Gartner forecast: +7,4% 128” 110” 123” 157” +6,5% 150’’ 117’’ 99’’ 70’’ 2005 2009 5% 35% 39% 16% 5% 8,5% 6,7% 23,9% 20,3% 18,5% 5,2% 4,4% 4,1% 8,3% IT Mgmt / Outsourcing World Market Forcasts Outsourcing Volume by Sector 2004* (in €)* Competitive Ranking 2004Being one of the Top 10 Outsourcers in the world : Competitive Ranking 2004Being one of the Top 10 Outsourcers in the world *Source: Based on Gartner August 2005 and SBS Reporting; IT Management (1US$ = 0,82 €) w/o NTT Data (World); Deal Analysis 200 0 2 4 6 8 10 12 14 16 IBM CSC Accenture Capgemini SBS HP Global TCV 2004 European share No 2 No 1 37% 77% 63% 18% 0% 21% 37% No 3 SBS ORS ranks No 2 in European TCV, following IBM Lockh. / ACS World Market (in Mio €)* 8 1 IBM 2 EDS 3 CSC 4 Fujitsu 5 T-Systems 6 Atos Origin 10 9 BT HP Services Accenture 7 SBS (Outsourcing) Rank Vendor IT Outsourcing TCV in 2004 Major Wins in 2004 4 7 SBS (Outsourcing) 1‘‘863‘ 1 IBM 5‘‘605‘ 2 EDS 3‘‘176‘ 3 T-Systems 3‘‘085‘ 5 CSC 2‘‘318‘ 6 BT 2‘‘197‘ Atos Origin 2‘‘449‘ 9 Cap Gemini 1‘‘477‘ 10 HP Services 1‘‘089‘ Rank Revenue Vendor 8 Fujitsu 1‘‘641‘ Western European Market (in Mio €)* 9‘‘713‘ 6‘‘246‘ 3‘‘953‘ 3‘‘220‘ 2‘‘698‘ 2‘‘263‘ 2‘‘313‘ 2‘‘229‘ 2‘‘371‘ Revenue 17‘‘168‘ €/$ Bn @ cc «Swissotel ??????? ????? Russian Outsourcing Market : Russian Outsourcing Market V e n d o r S h a r e o f t h e I n f o rma t i o n S y s t em Ou t s o u r c i n g ( I SO) F o u n d a t i o n Ma r k e t i n R u s s i a A c c o r d i n g t o I T S e r v i c e s R e v e n u e (U S $M) , 2 0 0 4 Slide 7: 7 The Outsourcing Market - Positioning Drivers for Outsourcing Approaches to Outsourcing Facts & figures Innovation Conclusions Key Trends of the IT Services Industry reflect major changes : Key Trends of the IT Services Industry reflect major changes Drivers Inhibitors Uncertain Market Recovery Unfocused Value Propositions Technology as Enabler, Not Driver Commoditization Consolidation Source: Gartner, 2004 Major drivers and inhibitors of the IT Services industry Emergence of the IT Utility Reducing Number of Interfaces Offshore/ Nearshore Move Toward Standardization Rise of the Non-Technical CIO Outsourcing enables Competitive Advantages : Outsourcing enables Competitive Advantages Strategy Concentration on core business Capitalizing on new fields of business Greater potential for creating added value and increased business value Costss Optimized, transparent and variable costs Guaranteed savings Reduction of investments Technologyy Highest levels of security and availability Direct & fast access to high-performance and state-of the art technology Prompt implementation of innovations Personnel Scalable and efficient workflow organization Clear responsibilities and strong service orientation Costs: IT and business alignment : Costs: IT and business alignment Costs: Application and IT infrastructure : Costs: Application and IT infrastructure Redirection opportunity Slide 12: 12 The Outsourcing Market - Positioning Drivers for Outsourcing Approaches to Outsourcing Facts & figures Innovation Conclusions Slide 13: Transition Management Total IT Responsibility Selective responsibility Selective responsibility Total IT Responsibility Selective responsibility SBS offers the full Range of Outsourcing Services Business Process Outsourcing: Outsourcing of entire business processes of the customer Responsibility for total customer process Transition Management Total IT Responsibility Selective responsibility Transformational Outsourcing: Provider supplies entire sets of non-core IT services Provider transforms IT services and assumes risk for service including scalability & obsolescence Contracts consist of packaged pricing and durations last typically10+ years Selective Outsourcing: Managing individual corporate functions such as help desk or desktop Contracts consist of price per service & durations last usually 1 to 3 years Typically assumes or replaces one or more departments of customer’s IT function Full IT Outsourcing: Provider supplies nearly entire suite of IT services – determined by needs of the business Contracts consist of packaged pricing & durations last usually 5 to 10 years Typically, transition of personnel, assets, leases and existing contracts related to customer’s IT function Data Center Services Selective Outsourcing Full IT Outsourcing Transformational Outsourcing Business Process Outsourcing The SieQuence ® Solution is a customer-centric and value-based approach to the ITO market : The SieQuence ® Solution is a customer-centric and value-based approach to the ITO market State 4 State 3 State 2 State 1 The four states are an expression of an evolutionary approach Prevent future outages and problem events by proactively monitoring and managing the IT operations Transform the overall IT-Environment to optimize performance and operations Combining the technology and innovation of Siemens to provide business benefits through a true strategic partnership Resolve customers’ most pressing problems Cost Management SieQuence® Solution Consider All Cost When Making Outsourcing Decisions : Consider All Cost When Making Outsourcing Decisions Annual face price of the deal Annual real cost the deal Current internal cost of providing IT services (annual) Transition cost1 Source: BCG analysis. 1Distributed over the duration of the contract Termination cost1 Management cost Perceived value Real value Our Standardized Outsourcing Engagement lets us focus on Customer Needs : Our Standardized Outsourcing Engagement lets us focus on Customer Needs Flexiblity Strategy Innovation Knowledge Competence Standardized Outsourcing Engagement Pre-Contract Transi-tion Trans-formation Renego-tiation Termina-tion Operations Governance Outsourcing Framework Customer SBS proves Experience in balancing Value & Cost : SBS proves Experience in balancing Value & Cost Major value creation (Business Transformation) BBC, UK RAG, GER Financial Services, GER Savings & major value creation (Business Flexibility) Passport Services, UK Notary Association, AUT Savings & significant value creation Department of Labour RSA Significant savings National Assembly for Wales, UK Major savings Global Beverage, USA Insurance, USA Value weight Cost weight Stage Customer Outsourcing needs transformation to achieve cost savings and/or generate value for customers & Service Provider Value creation in outsourcing succeeds best by linking IT spending with customer business breath: Business ? = spending ? and Business ? = spending follows Balancing value & cost customer projects Cost & value transformation stages Significant value increase by e.g. productivity rise Major value increaseby e.g. gain sharing, Business Flexibility, Business Value add Major cost savings by e.g. process change, global sourcing / offshore Significant cost savings by e.g. platform change Minimal cost savings 2 Transformation of infrastructure 3 Transformation of processes 1 Transition of resources Value Creation Cost Savings Slide 18: 18 The Outsourcing Market - Positioning Drivers for Outsourcing Approaches to Outsourcing Outsourcing facts & figures Innovation Conclusions SBS Outsourcing Facts & Figures : SBS Outsourcing Facts & Figures Slide 20: 20 The Outsourcing Market - Positioning Drivers for Outsourcing Approaches to Outsourcing Facts & figures Innovation Conclusions The Outsourcing Innovation Process : The Outsourcing Innovation Process Slide 22: The Innovation Radar Identifying and tracking of future technologies and trends. It is a powerful tool to demonstrate our level of innovation Innovation Roadmap: Desktop & Mobile Services : Services Drivers Techno -logy Innovation Roadmap: Desktop & Mobile Services From the Desktop To true Mobility New Metaphors forComputing & Interaction Personal Computing Capacity 2005 2007 2009 2011 NetworkedApplication & ComputingResources 2013 Convergence of Desktop and Mobile Infrastructure © 2005 Siemens Business Services ORS IM, Duncan McNutt Low Cost Mobile Devices W-LAN Hype Mobile Media Demand PC like Mobile Devices On Demand Hype Cheap Computing Power Virtualization Demand for computingfrom the Grid Mobile Devices Open Source / Linux Mobile Broad Band Fast mobile HWAutonomic Computing Web Services 64 Bit SMP OSs Data-Network Integration Grid Computing Managed Mobile Device Linux Desktop Mobile Media Access Unified Back-Office Self Healing Services Voice I/O Services Unified Client Services “Intra Grids” Device > Service Connect Change of two paradigms: new advanced User Interface and Web-Services integrate back office Slide 24: 24 The Outsourcing Market - Positioning Drivers for Outsourcing Approaches to Outsourcing Facts & figures Innovation Conclusions The Conclusions : The Conclusions Lose or gain? So the practical question facing many companies considering outsourcing is simply this: Will they lose or gain expertise when they outsource a process or function? Put another way, are they sacrificing expertise or acquiring capability that will lead to higher performance? Looking at today’s outsourcing market, commodity services, such as desktop and helpdesk, network processing and later server management are largely to be focus for outsourcing in Russia. Need further information? : Need further information? Edgars Puzo OOO Siemens Business Services Unit Manager ORS 1 Kozhewnitscheskij Pereulok, 6, Building 1 115114 Moscow Phone: +7 495 737 2731 ( 2745 ) Fax: +7 495 737 2742 E-mail: edgars.puzo@siemens.com Slide 27: 27 BACK-UP SLIDES The Service Provider within Siemens : The Service Provider within Siemens Financing and Real Estate Medical Transpor- tation Power Automation and Control Information and Communi-cations Siemens Building Technologies Logisticsand Assembly Systems Lighting Siemens VDO Siemens Financial Services Siemens Real Estate Power Transmission and Distribution Industrial SolutionsandServices Siemens Business Services Medical Solutions Transpor-tation Systems Power Generation Automation and Drives Communi-cations Osram Track record of outsourcing customers approves our ability to win & manage large and complex engagements : BBC, UK 2,700 NS&I, UK renewal 700 RAG, GER 500 Nat. Assembly for Wales, UK 333 Gerling Insurance, GER 300 Washington Mutual, USA 190 CIGNA, USA 122 Bank, GER renewal 78 City of Wiesbaden, GER 75 Sigma, BRA 60 Morgan Stanley, USA 50 GlaxoSmithKline, USA 49 Cortal Consors, GER 48 Kemper, USA 40 Hochtief, GER 36 ONE, AUT 35 Siemens Com, GER 33 FMC Energy, USA 28 Siemens SBT, USA 26 Track record of outsourcing customers approves our ability to win & manage large and complex engagements Major Recent Wins TCV €M Siemens, GER BBC, UK National Savings, UK DB/Sinius, GER Nat. Assembly for Wales, UK Vehicle Inspect., UK UK Passport, UK MetLife, USA Bankgesellschaft Berlin, GER Barclays, UK Computer Manufacturer, Global Department of Labor, RSA Insurance, USA Medscheme, RSA Ruhrkohle, GER Insurance, USA PWC, USA Microsoft, USA KSB, GER Top Outsourcing customers

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