Web Exchange
·
Market
·
Education
·
Series
Remote Infrastructure
Management
Ensure Value, Reduce Risk
Presented by:
Paul Schmidt
Mike Slavin
June 29, 2006
Session Agenda
Introductions and Stage Setting
Fundamentals of Remote Infrastructure Management
Market Overview
TPI: Thought Leadership, Broad Experience
Our impact is amplified by our history in helping the largest, most accomplished
companies in the world to face and overcome their greatest sourcing challenges.
Credentials Expertise
► Favorable Outcomes
:
Clients find the sourcingmix best optimized to their business as a result of our objectivity, informed analysis, practical insights and flexible approach
► Full Life-cycle Services: We have unmatched
skill and experience in strategy design, implementation and sourcing management
► Real-world Expertise: A deep roster of skilled
advisors (350+) gives TPI the human capital necessary to put the right team on every project
► Speed-to-Results: Having successfully advised
many of the world’s most complex organizations our solutions are robust, viable and deployable
► Sustainable Value: Sourcing solutions must
return value to shareholders over a continuum; we help our clients evaluate their efficacy over the short, medium and long term
Meet The Experts
Paul Schmidt
TPI Partner and Practice Leader, Global Service Delivery
►
Extensive background in BPO, ITO, business strategy
development and IT advisory services and technology
►
Deep offshore advisory experience
►
Expertise in M&A activities, partnership and joint venture
business structures, profitability and revenue growth
Previously, as Founder and CEO of Offshore Development Group:
►
Assisted clients to leverage global resources in strategic
and emerging markets
►
Helped clients develop markets through acquisition and
partnerships for offshore IT, BPO services and strategic
business development activities.
Previous clients include United Airlines, International Paper, ING, BP
Education:
►
MBA - Wright State University
Meet The Experts
Mike Slavin
TPI Partner and Practice Leader, Global Information Technology
►
Experienced in the management of all aspects of
IT sourcing and operations
►
Extensive career includes senior roles in advisory, service
provider and client organizations
►
Applies knowledge to advise clients, lead assessments and
support full outsourcing transactions
Before joining TPI, Mike as a CIO
►
Managed implementation of new systems and technologies
►Implemented e-business solutions
Held key leadership and consulting positions at EDS, Price
Waterhouse and other firms
Today’s Discussion Roadmap
When evaluating remote infrastructure management, corporations need a
clear understanding of the way the market is headed, the range of options
available, and some of the potential risks to overcome.
What is Remote
Infrastructure Management?
Day-to-day management of IT
infrastructure from a remote location
Any IT function that can be successfully
executed off-site is a candidate for
remote infrastructure management
Per IDC estimates, 85% of data center
support functions can be performed
remotely
Offerings differ from one service
provider to another, based on expertise,
skill sets and client requirements
Services include the following:
– Monitoring services – Help-desk services – Server management – Data-center management – Storage management – E-mail management – Network management – Asset management
– Selected IT-security services
Alternative Business Models
Internally-delivered (captive) remote infrastructure management
Joint ventures / hybrid models
Outsourced provision of remote infrastructure management
–
Infrastructure management outsourcing is divided into two types: total
outsourcing and out-tasking
–
Total outsourcing typically involves outsourcing of all major service towers along
with management responsibility and risk.
z May also include asset takeover
–
Out-tasking involves outsourcing of targeted, limited services
What’s New?
Low-cost countries and robust services infrastructure
High-speed telecommunications interconnectivity
Security technologies
Applications / Systems Management
Business Continuity services
Remote infrastructure management has become possible through the
convergence of enabling capabilities.
Drivers accelerating the market:
Increased competitive pressure on service providers to further reduce cost of service
Increasing awareness of the remote infrastructure management market
Need to support global footprints of multinational clients
Past versus Present
Greater automation and use of offshore resources provides significant cost
benefits for managing infrastructure systems and assets. Service provider
business drivers differ between multinationals (MNCs) and India pure-plays:
MNCs require offshore delivery of services to remain competitive for a large influx of
re-competes and fully outsourced solutions. They also:
– Develop internal remote infrastructure management capabilities to drive down internal costs; now deliver those capabilities to clients
– Interest in increasing net margins
– Bundle remote infrastructure management into overall infrastructure deals with often little transparency
– Prefer to remain mostly “under the radar”
India-based pure-plays are naturally extending their original software customer
base and adding new markets to fuel continued growth. They also:
– Make a strong play with existing customers as a service extension
– Target “carve-out” (out-tasking) opportunities rather than total outsourcing
– Take advantage of clients re-competing/renewing infrastructure deals and trend towards multi-sourcing
Remote Infrastructure Management is becoming an important technology
sourcing component.
Market Trends in
Infrastructure Services Delivery
India-based service providers are aggressively investing to compete with MNCs
For infrastructure management, India is the offshore location-of-choice
Clients seek 24x7 “follow the sun” coverage and global footprint
Service provider focus is shifting from technology to business optimization
– Supporting client transformational objectives
Variable pricing, SLA provisions, and more flexible contract models are prevalent
– Well established with MNCs, while Indian pure-plays are more risk averse and accustomed to FTE pricing; however, this is changing
– Competition and changing technology landscape will benefit customers with flexible pricing and operating platforms
Small players offering remote services for niche markets
– Scale and investment issues
Global Demand for Remote
Infrastructure Services is Rising
Company adoption of global service delivery increases both in depth and breadth
after the three-year inflection point.
Company adoption of global service delivery increases both in depth and breadth
after the three-year inflection point.
Source: TPI State of Global Service Delivery Study - 2005
Current
Current 3+ years experience
Current 3+ years experience > 500 people
75% 39% 44% 66% 37% 56% 47% 34% 33% 88% 53% 63% 85% 81% 53% 68% 60% 47% 41% 60% 0% 25% 50% 75% 100% ADM (Total) Analysis Design Coding Testing Deployment Infrastructure (Total) Help Desk Remote Server Remote Network 32% 31% 24% 23% 49% 14% 13% 11% 4% 41% 42% 29% 33% 30% 67% 16% 4% 22% 12% 10% 18% 15% 18% 19% 0% 25% 50% 75% 100% Desk Top Support DB Admin Remote Mainframe Security Monitoring Electronic SW Application Maint R&D BPO -CRM BPO - HR BPO - F&A BPO -Other Others Initially 3+ Years Source: TPI State of Global Service Delivery, 2005
Outsourcing Satisfaction is Relative
Satisfaction with global sourcing has room for improvement. However, the level
of satisfaction equals that of in-house staff and “traditional” IT consultants.
No significant difference in satisfaction between any of the alternatives.
Satisfaction
3.5 3.6 3.4 3.4 0.0 1.0 2.0 3.0 4.0 5.0 Offshore resources Onsite Internal staff Offshore resources Onshore ConsultantsOffshore Market Maturity
Offshore Resource Depth
Offshore Leveragability 90%+ of Delivery Effort 60%+ of Delivery Effort < 60% of Delivery Effort
IT Services Offshore Market Maturity
Future
Emerging
Mature
Limited Moderate Extensive
Who Is Using Remote
Infrastructure Management?
Hitachi
– Network mgmt., server admin., storage mgmt., DB admin.
Microsoft
– Help desk, server admin, DB admin., DR, backup admin.
Shell
– Help desk, server admin., security admin., messaging, problem coordination
Financial services major
– Server admin., network mgmt., desktop, DB admin.
