HP Application Outsourcing flexible solutions for your changing global business

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1 HP Application Outsourcing flexible solutions for your changing global business

2 Wish you could spend less time maintaining applications and more time growing your business? We can help. Applications are an essential link between business and technology. They support critical business processes, and they help your company s staff perform daily tasks. As enterprises adjust business processes to respond to market change, their applications need to change too. New ways of doing things mean application enhancements, upgrades, or even entirely new solutions. This dynamic relationship between business transformation and application change, however, presents significant challenges. Many enterprises find that about half of their IT staff and about one-third of their IT budgets are consumed by application maintenance. Legacy applications including homegrown modules that depend on thousands of lines of unwieldy and undocumented code are typically responsible for the lion s share of maintenance costs. HP Application Outsourcing provides solutions that shift your application expenses from maintenance to innovation and transformation. Our flexible portfolio of services encompasses all aspects of the application lifecycle including design, development, deployment, maintenance, support, and enhancement. We focus on process excellence using global delivery to help you improve quality and gain fast access to application expertise. With a proven governance model, our services help you better align your IT and business needs. By choosing HP for application outsourcing, you get a partner with a proven track record you can trust. You can stop worrying about day-to-day management of applications and concentrate on your business. A menu of application outsourcing services We provide services for every phase of the application lifecycle from consulting and design through development, implementation, integration, and management. Application Management and Support Services. We manage both packaged and custom applications. Key packaged applications come from SAP, Siebel, and Oracle /PeopleSoft. HP provides end-to-end management of application platforms spanning operating systems, databases, and multiple middleware stacks, whether Java, SAP NetWeaver, or.net based. Application Strategy and Architecture. We believe that there is no one size fits all architecture although our work is based on extensive knowledge of architectures and best practices. Our consultants can work with you to design an application strategy that closely aligns business and IT goals. We can help you assemble a balanced portfolio of applications that s just right for your business, with a high-performance architecture to power it. When it makes sense, HP can help you build a service-oriented architecture (SOA) for greater application agility. Application Implementation. Our project teams can handle all aspects of enterprise-wide application deployment including testing, user training, customization, configuration, and installation. We have a proven track record of managing smooth legacy transition, application consolidation, and migration projects. Application Integration and Transformation. Our experts can integrate enterprise data and applications to create a manageable whole that unlocks new business value. We can work with any platform you choose whether it s.net, J2EE, or something else. Our specialties include integrated solutions for portals, commerce, collaboration, customer relationship management, and contact centers. 2

3 We provide the highest level of service everywhere you do business. Our global reach and process expertise means that we deliver consistent, excellent service within global application environments while keeping costs manageable. HP Global Delivery Model The HP Global Delivery Model lets us increase the cost-effectiveness of your application portfolio without sacrificing service levels. At the beginning of every engagement, we perform a thorough assessment of your business processes and application environment, which allows us to identify the optimal mix of onsite, near-shore, and offshore resources required. Our Global Delivery Model also establishes that all of our services are delivered consistently around the world. We operate application delivery centers around the world with a concentration in key regions including Asia (India, China), Eastern Europe (Slovakia, Poland), and Central America (Costa Rica). More than 12,000 highly trained application experts are available, so you will have fast access to expertise across a breadth of legacy and packaged application technologies such as SAP, J2EE, Microsoft, Siebel, and Oracle. We also maintain global application Centers of Excellence and world-class technology laboratories that support business process, application, and technology innovation. Process excellence HP maintains strict adherence to process excellence to improve service levels and efficiency. We deliver worldclass application services based on established industry benchmarks. All of our application delivery centers use ITIL-based IT Service Management (ITSM) methodology as well as Capability Maturity Model Integration (CMMI) quality metrics and processes. Our India and China centers are CMMI Level 5 certified. In addition, we use HP Project Management processes (HP Global Method) and Project Management Office (PMO) during service delivery to keep service commitments consistently on time and on budget. We can make application outsourcing work for you. Shifting from an IT-managed application environment to an outsourcing arrangement can be stressful. That s why HP has made easing that transition a high priority. We have proven processes for managing the transition of applications and people without disrupting your business. We also make it easy for you to adjust your application outsourcing arrangement in response to business change. Our governance model is designed to let service relationships evolve naturally within a flexible framework. Transitioning applications We have strong, proven processes for transitioning applications from a customer-managed environment to an HP-managed environment. It begins with HP staff working alongside your team for about three to six months. During this period, a transition manager from your IT group and a transition manager from HP will work together to smoothly shift day-to-day application management to HP. This phased approach prevents the problems that can result from abrupt transitions and allows the HP team to build a solid working relationship with your IT staff. 3

4 The last two years have been wholly successful we have integrated two similar but different cultures, establishing a relationship of deep mutual respect and support and building the base for a long-term win-win relationship. We also delivered great results, with HP meeting all expectations. Filippo Passerini Global business services officer Procter & Gamble Transitioning people Transitioning people from your group to HP is sometimes necessary to maintain application expertise especially when complex homegrown applications are involved. Because HP is known for technology innovation and for providing a positive work environment, making the transition to our team can be an attractive option. In fact, many of our customers say that they chose HP in part for the opportunities we can provide for transitioned employees. Optimizing your environment We do more than simply pick up where your IT department leaves off. We focus on optimizing the operation of your application environment from the start. During the initial transition phase, we use HP tools and processes to rapidly increase efficiency and improve service levels. In addition, we design and execute application transformation plans for your environment, based on our years of application management expertise. Our focus is on helping you get the most out of your application portfolio right from the start. Governance Our governance model is more than a set of rules. It is a flexible framework incorporating processes that tie together delivery infrastructure, service management, resource management, and relationship management. We use these processes to develop and manage flexible, multi-year contracts and structured service-level agreements. They re designed to let your HP Application Outsourcing solution grow and change along with your business. The end result for you is more flexibility, better decisions, lower costs and no surprises. Our satisfied customers speak for themselves. Don t just take our word for it. Our enterprise customers around the world can tell you how HP Application Outsourcing solutions helped them design, deploy, and manage business-critical applications. They may also tell you how easy it is to do business with HP and that we re always there, no matter where they need us to be. P&G application management and more Procter & Gamble (P&G) provides more than 300 trusted and recognizable brands including Bounty, CoverGirl, Crest, Pantene, Tide, and many others to people in 160 countries. An application outsourcing solution from HP lets P&G spend more time developing better consumer products and less on application issues by providing integrated application management services. Challenges Over the past two decades, P&G has grown rapidly by acquiring new brands, developing new products, and expanding into emerging markets. Although P&G has a centralized IT department staffed by highly experienced application professionals, providing consistent application services to such a large organization became increasingly challenging particularly as the company added new operations in remote locations. As applications proliferated, costs increased. 4

5 Table 1. Large global enterprises choose HP Application Outsourcing solutions This table shows examples of how industry-leading companies around the world are benefiting from flexible HP Application Outsourcing solutions. Customer A leading auto manufacturer with more than 60,000 employees Challenges Rising application management costs caused by a fragmented environment Need to focus more attention on core business activities, less on IT HP value 20% cost decrease in application management Flexible global delivery model using the optimal mix of near-shore and offshore Smooth transformation from a decentralized application environment to a unified implementation Renewed focus of customer resources on the core business A German optics manufacturer with a reputation for innovation High application management costs Disparate system environments from global mergers and acquisitions Cost-effectively manage enterprise SAP applications Deploy SAP upgrades and new modules A U.S.-based e-business and fulfillment provider with over $1 billion in annual revenues Insufficient internal resources for application management Need for enterprise process management applications Cost-effectively manage mainframe, PeopleSoft, and Siebel applications Provide access to application expertise and global resources Provide SLAs with service level commitments A growing European commercial bank Need for new banking applications and IT infrastructure services Concern about transitioning employees Manage and develop banking, intranet, extranet, and Lotus Notes applications Smooth transfer of employees to HP team A Hong Kong based international corporation with a global telecom business Multiple infrastructure and application services providers Heterogeneous application environment Provide comprehensive infrastructure services Manage Internet portal and IT applications A Singapore government agency Rising application management costs Cumbersome application management processes Manage mainframe and UNIX applications Design and deploy application enhancements Lower application management costs HP solution In May 2003, P&G signed a 10-year, $3 billion managed-services contract with HP after evaluating several other vendors. A portion of this agreement provides comprehensive management services for 90,000 SAP users and a 20-terabyte data warehouse serving 15,000 users. It also includes 24x7 regional support and global application management for all of P&G s core supply chain, finance and accounting systems. Altogether, more than 1,200 HP professionals are working to manage P&G applications in 34 countries. Benefits By choosing HP, P&G has realized numerous benefits such as simplifying their application portfolio and reducing application management costs. Highlights include: Easy transition of people. As part of the outsourcing agreement, approximately 700 P&G application employees across 53 countries successfully transitioned to the HP team. Over time, these experts were integrated smoothly into HP s Global Delivery Model to improve service consistency. Linda Clement-Holmes, Manager, Information Technology Infrastructure & Governance, Procter & Gamble Global Business Services, explains: When we made the decision to partner, we wanted our employees to go to a company where their work would be part of the core business. We re not a technology company. We re a consumer products company... our core business is laundry detergent, toothpaste, and soap. 5

6 Flexible governance supported by a thorough understanding of P&G business processes. Our flexible framework and in-depth understanding of governance issues made HP particularly appealing as an application outsourcing partner. We developed our governance processes jointly with HP. The end result was a flexible agreement consistent with both P&G s and HP s corporate governance polices, says Clement- Holmes. HP s P&G client relationship team is organized by P&G business processes and is key to facilitating IT and business prioritization. Leveraging process excellence and global delivery. P&G has benefited by what they refer to as HP s commercial grade processes and project management methodology delivering higher application management service levels and more timely projects. P&G s global delivery model was smoothly integrated with HP s and new project work is cost-effectively distributed to HP s Global Delivery Centers. Transformations for the future. Outsourcing to HP enabled P&G to increase focus on business priorities. In 2005, a top priority for Filippo Passerini, P&G s CIO, was to create better connections with our consumer, customers, partners, suppliers and employees. To support this priority, HP was selected to lead the development, deployment, and management of an innovative CRM solution. Working with Siebel and Accenture, HP is helping P&G manage what they have today and transform their applications for tomorrow s business needs. Let HP be your trusted partner. HP provides a complete portfolio of application outsourcing services tailored to your unique business and IT needs. We partner closely with your company to design, build, integrate, manage, and evolve an application portfolio that lets you respond to business. With our commitment to designing just the right solution for your organization, HP can help you manage an organization where business and IT are synchronized to capitalize on change. Based on our experience with manufacturing, telecommunications, financial services, and public sector clients, we take the time to understand your requirements, and then adjust our approach to fit your needs. Moreover, our commitment to process excellence means that we offer flexible governance and seamless transitions to HP-managed environments. 6

7 HP Services has the most experienced outsourcing specialists in the industry. Our resources include: 65,000 experts in more than 160 countries, combining global reach with responsive, local support 12,000+ application professionals worldwide with expertise across SAP,.NET, J2EE, and other leading platforms: 1,000 s of ITIL-certified IT Service Management experts 5,000 software specialists at CMMI Level 5 5,000+ consultants on J2EE and.net 3,600 Microsoft-certified experts 3,000+ SAP-certified experts Hundreds of satisfied customers worldwide Access to comprehensive infrastructure services including hardware and networking 24x7 support contracts Flexible service-level agreements 116 data centers worldwide 16 global operations centers 89 help desk call centers worldwide For more information: When change affects your business, IT has to respond immediately and agile applications are a key component in enabling that rapid response. If you d like to learn more about HP Application Outsourcing solutions, please contact your local HP sales representative or visit us at: 7

8 To learn more, visit Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. Java is a U.S. trademark of Sun Microsystems, Inc. Microsoft is a U.S. registered trademark of Microsoft Corporation. Oracle is a registered U.S. trademark of Oracle Corporation, Redwood City, California. UNIX is a registered trademark of The Open Group. 4AA0-2609ENW, October 2005