Out ‐Sourcing 2.0 The Next‐Generation of
Outsourcing
Calin RanguDirector General
11.02.2009
Bucharest
Agenda1. Why Next-Generation Outsourcing
2. Introduction of IIRUC Service
3. IT doesn‘t matter – does it?1. Learnings from History and from
Present2. IT-Industrialization
4. The Evolution of Outsourcing Examples of international experience
1. Insurance2. Healthcare3. 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 innovation-based outsourcingAnd...the CRISE...
History and Financials
History1968: the original IIRUC company was established1991: IIRUC-SA was registered as a shareholding company out of the original IIRUC company2004: IIRUC SERVICE SA was established, based on the traditional IIRUC SA company2008 (February): CEE Technologies Austria achieved the sole control over IIRUC SERVICE SA2008 (October): Approval of the Master Plan for the company development2008 (October): Opening new Headquarter with a Data Center facility and a central Call Center dept.
Financials2007 Turnover: 5,8 Mio. €2008 Estimated Turnover: 7,8 Mio. €2009 Forecasted Turnover 15 Mio. €
IT Operations
Outsourcing
Security Services
Software Solutions
Output Services
Client Management
Future pass: developing in RO of the international offered IT Services
3.000 Server
20.000 Corporate Clients
40.000 km Network
520 TB Storage
1 Billion Transactions p.a.
300 Mio. printed Pages p.a.
Several Data Centers
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 RomaniaBetween 4 and 12 hours solving time, depending on agreed SLA-sRepairing 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 fleet8 areas covering 58 nationwide locations47 nationwide stores50 service laboratories1 national training centerover 25,000 customersover 70,000 equipments in serviceBucharest headquarteredRunning international projects (Ukraina)Multiple certifications
Agenda1. Why Next-Generation Outsourcing
2. Introduction of IIRUC Service
3. IT doesn‘t matter – does it?1. Learnings from History2. IT-Industrialization
4. The Evolution of Outsourcing1. Insurance2. Healthcare3. 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
0%
20%
40%
60%
80%
100%
1910 1920 1930
utility supply private supply
Technological advances made central supply possible!
What Existing situation showed us …In 2009 a strong financial crise determine:
Strong decrease of international and national businessThe lack of liquidityReduced profitabilityThe shrinkage of credit
What means:Decrease costsIncrease efficiencyReduced number of employeeInvestments moved in services
Business efficiency move companies to central supply!
IT Service Market
Software as a Service (SaaS) – ASP Reloaded?
Transforming 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 …
Agenda1. Why Next-Generation Outsourcing
2. Introduction of IIRUC Service
3. IT doesn‘t matter – does it?1. Learnings from History2. IT-Industrialization 3. IT out of the Socket
4. The Evolution of Outsourcing 1. IT-Sourcing Dimensions2. Examples of R-IT
1. Insurance2. Healthcare3. IT-Service Management
The Evolution of OutsourcingCore & non-core
Business Processesalong with IT retainedwithin the Enterprise
Drivers1. IT Outsourcing2. (ASP-)Hosting
Core & non-coreBusiness Processesretained within the
Enterprise
Drivers1. SaaS2. BPO
Core Business Processes
retained within the Enterprise
Core Business Processes
Non-Core Business Processes
IT Delivery, Support & Management
Core Business Processes
Non-Core Business Processes
IT Delivery, Support & Management
Core Business Processes
Non-Core Business Processes
IT Delivery, Support & Management
Enterprise Boundary
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 yearTotal 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 companyChallenge: complete take over of all IT services at an appointed dateonline take over of Client Management (remote management, software management, asset management) and help desk on an unfamiliar platformconsolidation of central and peripheral IT servicesincluding 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 servicesStandardization to standards and amendment of standards to ease IT service process and reduce costsTake 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 fornew customer projects
Thank you for your attention!
SC IIRUC SERVICE SA
Thank you for your attention!