IT-Sourcing 2.0 The Next-Generation of Outsourcing. Calin Rangu Vice President Raiffeisen Informatik GmbH

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1 IT-Sourcing 2.0 The Next-Generation of Outsourcing Calin Rangu Vice President Raiffeisen Informatik GmbH Thema der Präsentation Vertraulichkeitsstufe Raiffeisen Informatik

2 A pretty long Track Record in Terms of IT Experience in providing professional IT Services for almost 40 years Raiffeisen Informatik 2008/07/02 2

3 Offered IT Services Server Clients IT Operations Software Solutions 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 Raiffeisen Informatik 2008/07/02 3

4 2nd largest IT Service Provider in Austria (Quelle: IDC-Studie 2007: IDC Market Analysis, Austria IT Services Forecast & 2006 Vendor Shares) Raiffeisen Informatik 2008/07/02 4

5 Raiffeisen Informatik Companies A-TRUST BAT GROUPWARE CENTROWAVE DESI EBPP GEMDAT NÖ IIRUC SERVICE INFORM Raiffeisen Informatik 2008/07/02 5

6 Successful Delivered Projects & Operations Tolling Projects Financial Services Construction & Industry Building Telecommunication Industry Health & Public Sector Raiffeisen Informatik 2008/07/02 6

7 The Role of Information Technology Theses of N. Carr (2003): After 50 years of innovation IT will become commodity like electric power, railway, telecommunication As IT is becoming more and more commodity the strategic value of IT diminishes ( Consumerization of IT ) Similar to electricity, railway or telecommunication IT will be provided by utility companies Raiffeisen Informatik 2008/07/02 7

8 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 Technological advances made central supply possible! Raiffeisen Informatik 2008/07/02 8

9 Pocessing power Technological Advances in IT Processing power doubles every 18 months Time Bandwidth What is the impact Bandwidth triples anually on the delivery of IT Services? Time Benefit The value of a network is proportional to the square of the number of users Users Raiffeisen Informatik 2008/07/02 9

10 Perspectives are not based on Technology or single Bricks 1 x Security 5 x Application 1 x Internet 500 x Client 40 x LAN 12 x Server Raiffeisen Informatik 2008/07/02 10

11 but more on the Right Combination! Raiffeisen Informatik 2008/07/02 11

12 Ultimate Goal: IT out of the socket? Let s have a look on a few examples Raiffeisen Informatik 2008/07/02 12

13 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 Raiffeisen Informatik 2008/07/02 13

14 Cloud IT SD2 Solve Direct Raiffeisen Informatik 2008/07/02 14

15 The Evolution of Outsourcing Core & non-core Business Processes along with IT retained within the Enterprise Core Business Processes Drivers 2. IT Outsourcing 3. (ASP-)Hosting Core & non-core Business Processes retained within the Enterprise Drivers 2. SaaS 3. BPO Core Business Processes retained within the Enterprise Non-Core Business Processes Core Business Processes IT Delivery, Support & Management Non-Core Business Processes Core Business Processes IT Delivery, Support & Management Non-Core Business Processes Enterprise Boundary IT Delivery, Support & Management Raiffeisen Informatik 2008/07/02 15

16 IT Outsourcing Hypecycle Raiffeisen Informatik 2008/07/02 16

17 Dimensions of IT Sourcing Outsourced Activities Geography Onshore Development Onsite IT Sourcing Dimensions Multiple No. of Service Providers Type of Spin-off d te ic a ed Single D H yb r id ed ar Sh Source: on the basis of Jouanne-Dietrich: Industrialization of IT-Sourcing Individuality of Business Rel. IT D Design ivi s Su ion bs id ia ry,j Ex V te rn al C om pa Maintenance ny Offshore Nearshore Operations IT-Infrastructure Applications Tasks Business Processes Outsourced Components Raiffeisen Informatik 2008/07/02 17

18 IT Services and Outsourcing - Example Project: Centralized IT Services for 28 Austrian hospitals Challenges: Consolidation of the infrastructure for 28 hospitals with different IT services, 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 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 Raiffeisen Informatik 2008/07/02 18

19 Outsourcing and Client Management - 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, clients (co-managed with a partner), 160 telephone systems, 5 TB storage capacity, active components, output services Standardization to R-IT standards and amendment of standards to ease IT service process and reduce costs Take over of IT employees Project management: in time, in budget Raiffeisen Informatik 2008/07/02 19

20 R-IT - From a SaaS-User to a SaaS-Provider Service processes: clear, transparent documentation Integrated data-flow between customers and R-IT ITIL compliant documentation of all IT-SM processes Consistent documentation of all incidents Multi-client capability Improved value proposition for new customer projects SD2 Raiffeisen Informatik 2008/07/02 20

21 Top 10 reasons why a potential customer will want to look at Red Hat solutions 1. Reduce costs Software acquisition simplify licensing and purchasing Hardware acquisition less hardware is needed to do the same job Support fully inclusive, unlimited, flexible subscription model Staff greatly improved servers/administrator ratios 2. Improve security, performance, availability, robustness, quality 3. Improve operational flexibility by deploying a virtualized infrastructure 4. Gain vendor independence eliminate lock-in 5. Gain pricing leverage over other Operating Systems 6. Eliminate forced upgrades 7. Adhere to industry standards eliminate proprietary standards 8. Open file formats safe, long-term data archiving 9. Multiple architecture support laptop to mainframe 10. Faster delivery of new technology Raiffeisen Informatik 2008/07/02 21

22 SaaS Use Case: IIRUC Service IIRUC Service is a Client-Service Provider covering whole Romania 60 Point of Activities and 12 Area Branches Lines of Business: Sale and/or Service of IT Equipment Maintenance and repair centres Technical support ( maintenance contracts) From Take over of Guarantee Services & Repair of DELL in RO Business Partner for IBM, Alcatel, Xerox RedHat Business Partner Providing a SolveDirect client with implemented Incident Management Processes as a Reseller of SolveDirect Raiffeisen Informatik 2008/07/02 22

23 Some of our Customers Raiffeisen Informatik 2008/07/02 23

24 Thank you for your attention! Calin Rangu Raiffeisen Informatik GmbH Lilienbrunngasse 7-9 A-1020 Wien T +43 1/ F +43 1/ E Raiffeisen Informatik 2008/07/02 24

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