1 empower ment empowerment new-generation outsourcing Your business technologists. Powering progress
2 The sourcing dilemma With the gradual erosion in linear business cycles, corporations must learn to compete and win on their own strategic decisions in any economic climate. This challenge is reflected in the public sector, where organizations are experiencing global comparison and being forced to modernize beyond resource limits. In effect, we have already entered an era where competition has moved beyond one s own established capabilities. You know the dilemma. Your organization is being forced through competitive pressures to outperform in a way currently beyond the framework of resources. This is not just a technology paradigm, but a fundamental equation running through all resource usage up to and including your carbon commitment. The sourcing dilemma has moved beyond the old challenge how do we take the expense out of IT? to a new one, much more complex and insistent: How do we leverage resources beyond our own limits to realize our given goals? That s a much bigger question, and it asks a lot more from your chosen technology partner. 2 Most sourcing customers have chosen to answer that question by managing a tapestry of individual outsourcing partners multi-sourcing for estimated excellence in specific disciplines. It s a strategic alternative to partner lock-in and limitation, but it s not the only possible answer. Atos, for example, is a European powerhouse with global scale and reach thus fitting many more local or federal organizations headquartered in Europe better than an American or Indian partner. But it s not just a case of cultural affinity or geographical intimacy. Far more it involves access to the complete scope of sourcing requirements from independent consulting and complex multi-vendor integration to managed operations and process evolution. Outsourcing is no longer restricted to managed services it s a complete partnership equation extending from strategy to single end-to-end transaction. How can you empower your enterprise across that entire spectrum?
3 Sector by sector Across the public and private arenas, organizations are faced with unique permutations of the sourcing dilemma. Commodity outsourcing stands very little chance of meeting the needs or expectations of specific decision makers in any one industrial or civic environment. Outperformance looks very different whether you are, for example, a banker, a local government, a car maker, a television network or a utility player. Segment to segment, sourcing requirements are very specific, and always colored by the exact nature of value creation in any one business or public field. Technology plays a different role across economic sectors, and has a social role to fulfill in government very different to its function in business. By contrast, the core discipline mastered by most outsourcing partners is IT itself not the process landscape from any given industry. As the gap widens between technology evolution and ever faster business change, no amount of service orientation and cloud deployment can keep up without unique process know-how on a sector level. That makes the sourcing dilemma all the more frustrating, as the business learning curve facing fresh IT partners often takes years to master. In effect, you re looking for a technology partner with equal fluency in your industry processes someone who knows the precise and exact purpose of technology in your organizational life. As you need to do the impossible and compete beyond the limits of owned resources, your sourcing partner needs to give you the competitive power to scale to business change, overcome silo-based thinking and realize strategic objectives. And all of this without taking years reaching mature understanding of your business. It s a tall order for any outsourcing partner demanding that they are at once technologyneutral, business-literate, globally present and institutionally innovative. Let s take a look at the Atos profile. Financial Services Including: Achmea, ING, MetLife, National Savings & Investments, the Standard Charter Bank Public Sector, Healthcare & Transport Including: The City of Wiesbaden, the Department for Work and Pensions, Farmalink, First Group, NATO Energy & Utilities Including: BP, EDF, Enel, GasTerra, Shell, Total Manufacturing, Retail & Services Including: BASF, Bayer, Karstadt, Mitsubishi Electric Europe, PSA Peugeot Telecom, Media & Technology Including: A1, Sanoma, Sky 3
4 Business technology As business technologists, with emphasis on the first word, Atos occupies a unique position in the sourcing space. We re neither blue-sky thinker nor techno geek, but an exclusive fusion of business partner and technology economist. That means we come at your sourcing problem from the sector-specific and process-unique enterprise side. The business technology approach to sourcing is vertical, global and extendable. Atos is a the new European leader and a leading global provider in the sourcing arena built on decades of partner engagement across the public and private sectors. We represent transformational capability within sourcing partnerships, while retaining local flexibility and more cultural sensitivity than a conventional global partner. Outsourcing is a fundamental component of what we do we are the largest outsourcer in Europe as well as having a strong international presence to support global customers such as Siemens (the world s widest industrial network). Our engagements span the industrial, media, financial, government and energy markets with transformational examples of sourcing empowerment. From help desk, desktop and data center to cloud, business process and beyond, we bring strategic vision and evolutionary capability to sourcing arrangements. As business technologists, we bridge the gap between blue-sky strategy and your complex installed base. When it comes to outsourcing, this kind of positioning holds many unique advantages for you. For a start, being a pure services partner with no technology agenda allows us to focus completely on solving your unique business challenges. Secondly, our deep experience of transformational sourcing partnerships across sectors means we start any new engagement already high on the learning curve. Thirdly, our European heritage and commitment to long-term relationships mean we understand outsourcing as a human story above all built around cultural flexibility and talent enablement. A business technologist like Atos empowers your sourcing engagement through technology independence, process intimacy and cultural sensitivity. Workplace Infrastructure Security 2.5 million seats 45 million calls / year 38 languages 29 languages served off / nearshore Application Operations 1 million SAP users 5,000 SAP instances 90 countries Global certified SAP cloud service provider 130,00 managed servers 19,000 supported virtual servers 111,000 installed MIPS 111,000 TB storage Network & Communications 1 million LAN ports 700,000 voice ports Supporting over 600 customers in more than 100 countries 360,000 unified communications seats globally 150 million managed digital identities 600,000 protected devices Operating > 3,000 firewalls 4
5 Cloud migration Let s consider for a moment what this means in terms of cloud transition. Our unique position as business technologists allows us to come at this challenge from above the level of mere cloud stacks. We understand the complete cloud equation of legacy integration, data sovereignty and ongoing governance on a specific sector and global basis. We turn computing into your kind of cloud business. Cloud computing has become an essential ingredient in any sourcing relationship. From the start we have taken a more strategic approach to cloud transformation than most. Above the level of individual technology layers and cloud models, we specialize in whole enterprise cloudscapes that provide a competitive business advantage. Canopy, for example our joint venture with cloud leaders EMC and VMware delivers instant coverage of all the major cloud components so you can take advantage of rapid cloud conversion with superior security standards and business manageability. For more heterogeneous environments involving bespoke applications, our complete range of cloud services will tackle your total equation from global compliance to seamless core processing across legacy and cloud types. Whether private, public or hybrid, we deploy leading security and risk management skills to not only maintain established standards but raise security performance. Community clouds on a sector basis are a particular strength of Atos, allowing you to platform key business processes across the cloud as well as share them throughout your partner and supplier ecosystem. Whatever your current approach, our complete cloud spectrum from consulting and integration to operation and transactional processing brings you unique strategic flexibility and choice. Together with our partners in the cloud space, we ensure cloud computing becomes cloud business in a seamless, safe progression. The time for experimentation is over. It s time to evolve. Cloud transformation strategy Different areas of your business may require a gradual or a swift and total cloud transformation. Cloud transformation strategy Gradual Total Homogeneous Classic sourcing Technology landscape Cloud sourcing Heterogeneous Technology landscape Your landscape may comprise homogeneous areas that match with Canopy, Yunano or bluekiwi deployments as well as heterogeneous areas better addressed by customized cloud services 5
6 Empowerment Empowerment is a new approach to your outsourcing equation, enabling you to continuously leverage more and more technology power to master very specific business goals and challenges. We ve perfected the art of sourcing over many years as a recognized leader in help desk, desktop, data center and other outsourcing disciplines. And, of course, we re uniquely qualified to deliver in the process space. Our unique backstory as the European leader and a mature global delivery network as well as our singular positioning as business technologists bring sourcing power to your business on a whole new level. With a straight-through sourcing spectrum from consulting and integration to management and business processing, we close the gap between technology and business from one end to the other. Our sourcing strategy is designed to give you technology power beyond the limits of your installed base, enabling you to accelerate business innovation, collaborate across enterprise silos, reduce IT spend and drive new revenue streams at the customer side. New-generation sourcing encompasses global delivery on a multi-local basis as well as cloud technology at the multi-cloud governance level to provide your enterprise with the technology stretch and resourcefulness it requires to scale and grow. Atos is consistently recognized as a Magic Quadrant leader by Gartner in the core sourcing disciplines such as data center, help desk and desktop. Our sourcing engagements extend beyond the realm of managed services from objective consulting in the best interests of your business, to complex multi-vendor system integration, to leading skill sets in transaction processing. As customer power increases across every sector including the public one our hightech transaction services (HTTS) offer you unique leverage at the downstream customer front. Atos also leads the market in large-scale global harmonization projects the kind of consolidation drivers that lay the ground for the most effective outsourcing scenarios. Our global key offerings in Adaptive Workplace and Identity, Security and Risk Management as well as many other core fields fuse seamlessly with this outsourcing approach to maximize your business effectiveness. Unlike many other onedimensional global sourcing strategies, our mature global delivery system operates on a highly extendible onshore-nearshore-offshore basis, allowing you the continuous agility you need to adapt to ongoing business change. From global delivery and cloud coverage to specific sourcing solutions for workplace and security, we empower your ability to compete and win. Business level Process transformation Enterprise growth Performance innovation Proactive Progressive Operation as usual Reactive Responsive Technology landscape Empowerment: enabling business change through continuous technology evolution 6
7 Working principles Sourcing of any kind is a long-term decision which goes beyond technology itself. Sourcing relationships in the private and public sectors are driven by completely different values and visions. Finding transformational capabilities within an outsourcing engagement is by no means a given. Whether you are reviewing existing sourcing arrangements or considering a new sourcing partnership in the light of business change, there are essentially four strategic options. Companies can choose to in-source, to outsource from a global IT provider, to offshore with an emerging IT player or to partner with the business technologists from Atos. Sourcing from the latter will minimize a series of potential risks from in-house groupthink and global technology lock-in to cultural disconnect on the offshore dimension. If your sourcing strategy includes a cloud ingredient and, let s face it, most will then your potential risks within other choices could multiply from legal exposure and legacy isolation to persistent data security issues. As cloud and sourcing partners, we operate on business technology principles: Technology is not the master of business. Vendors may presume to change your business. Our remit is to change technology to fit your business. Outsourcing may be a global equation but is always local in effect. Federal organization and European sensitivities to cultural difference mean we prioritize the people story. Outsourcing is a long-term thing, where the real performance metrics are not Service Level Agreements but contract extensions and renewals. Atos has been a leader in this space for many years. Change is the only constant. From technology choice to adjustable global delivery and cloud divestiture, we believe in putting your strategic business freedom of maneuver first. 7
8 Progressive value First-generation outsourcing was very much a cost-out affair, designed to take immediate expense out of the technology estate and not much else. Whereas next generations aimed to also deliver IT and business value, new-generation outsourcing from Atos balances your overall value equation with transformational empowerment in cloud and process performance lifting your competitiveness onto a whole new level. Organizationally, Atos is uniquely equipped to deal with the challenges of new-generation outsourcing from an independent consulting division and a leading business process unit (HTTS) to our cloud joint venture with EMC and VMware Canopy. In this new environment, IT cost efficiency must be matched by business value on a continuous basis. Key sourcing engagements with Atos from Siemens and the BBC to National Savings and Investments have been transformational in this way. Continuous engagement with worldclass events such as the Olympic Games also demonstrates our commitment to technologydriven excellence. Siemens, for instance, is the world s widest industrial network, operating on the eighth largest IT infrastructure on the planet. With a backstory going back 160 years and presence in over 180 countries, the Siemens sourcing challenge doesn t come any bigger or more complex. Radically reshaping itself over recent years from an engineering giant into a customer-focused infrastructure partner, Siemens has undergone a 50% switch in its core portfolio another key indicator of massive transformation. Atos supports this gigantic transition through multiple sourcing options from shared services and IT outsourcing to specific M&A solutions and cloud deployments. Partners such as Siemens and the Olympic Games prove we can master any level of technology complexity on a specific market level. With 74,000 business technologists in 48 countries, we have the scale and reach to match. An Atos company powered by EMC and VMware: An end-to-end provider of secure cloud services for the enterprise Alliance with Yonyou: Single-source CRM/ERP application for transformational rollout and global operation Atos acquisition: Enterprise social networks for transformational collaboration within and outside your company Sourcing business transformation through multiple cloud deployment 8
9 Cohesive vision We see outsourcing as your competitive leverage beyond your own installed base. Not only that. In our hands, outsourcing will also transform that installed base to best fit your current business scenario and emerging change patterns. We call this vision Empowerment, because it enables you to do things with technology previously impossible. Information technology has come a long way from the days of main frames. Service orientation and cloud computing have completely changed the nature of ownership and usage, but as business technologists we have always looked at business change first. No matter how fast technology evolves, we know your business changes faster. Today, in the flat-world environments approaching real-time synchronicity, hours and minutes can alter business performance for worse or better. IT needs to be not only service-oriented or cloudenabled but fully liquid and deployable at will. With a heterogeneous installed base which has grown on an ad-hoc basis, that s practically impossible. Cloud adoption by itself will not guarantee dynamic tech deployment without the right legacy integration and object-driven security strategy. All too often, transformational IT drives lose sight of the big game changers on the business level those megatrends such as urbanization and demographics that are shifting the ground rules. By understanding the core paradigm shifts within your unique market, Atos crafts a sourcing partnership designed to empower business growth. The IT value of such relationships empowering big data, mobility or social networks is only one level. The higher value involves powering progress at a business paradigm level such as multi-channel enablement in media, transactional leadership in retail banking, citizen engagement in local government, concurrent global manufacturing in industry, preventive medicine in healthcare, bi-directional smart grids in energy, and your strategic agenda realized in our future partnership. 9
10 The power of two Imagine yourself being able to do things currently out of reach or impossible. Like sharing a real-time view of process performance across your global organization. Or deploying cloud architecture and transactional excellence to capture the power of citizen engagement in the public arena. Together, let s close the gap between your business and the technology resources you need to take it to the next evolution. Even the term outsourcing is misleading, implying the old world where technology headaches were cut out of the business equation. How about power sourcing reuniting transformed technology with your growing business? Power sourcing is new-generation outsourcing, but requires very distinct skill sets in a transformation partner. Can you think of another technology partner that is at one and the same time global, technology-neutral, and sector-specific? 10 Atos has grown up with firsthand business experience of the complex transformations which have altered public and private sectors out of all recognition. During that time, we have extended and renewed sourcing engagements far more often than conventional service partners and garnered multiple awards as outsourcing thought leaders. Now, in the cloud era, we ve created multiple partnering options and innovative community clouds to bring you best-fit cloudscapes for your business. In the public arena, Atos commands thought leadership in Public Private Partnerships, with longstanding sourcing engagements across the municipal, regional and national levels. We share the European heritage of employee relations, taking more care of transferred staff and demonstrating a greater willingness to re-badge and foster talent over time. Although global, we are localized in a way not evident among conventional IT players another result of our federal European structure and our own growth through mergers, acquisitions and strategic partnership.
11 The people factor Outsourcing, finally, is a cultural challenge in the guise of a technology transformation. Without people on board, any sourcing strategy is bound to fail in time. As you prepare to change the tech equation in your organization, ask yourself the following key questions when it comes to bridging people, technology and business. Are your sourcing partnerships geographically limited purely on the basis of restricted partner footprints? Are your business sourcing decisions at the mercy of technology agendas depending on a vendor bias? Are your current sourcing partners truly expert in your sector processes or only expert in the process of technology? Is your cloud transformation covered within a sourcing partnership or progressing on an ad-hoc, experimental basis? Have you risen above individual service and cloud types to govern your complete cloudscape from a business perspective? How often have your renewed or extended a current outsourcing arrangement, and if not why not? Are your sourcing decisions taken on a local level purely as a result of strategy absence? Apart from Service Level Agreements, what structures are in place to bring about technology transformation? Are you aware of the difference between a standard IT services approach and a business technologist s one? Would you be willing to talk with Atos sourcing experts to find out your current and future sourcing potential? Too often in today s climate, multi-sourcing is a hedging exercise against partner lock-in and incompetence. If you haven t discovered the difference yet in Atos empowerment, now is the best time to compare visions and talk to us about making yours an everyday working reality. 11
12 About Atos Atos is an international information technology services company with annual 2011 pro forma revenue of EUR 8.5 billion and 74,000 employees in 48 countries. Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transports; Financial Services; Telecoms, Media & Technology; Energy & Utilities. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. It is the Worldwide Information Technology Partner for the Olympic and Paralympic Games and is quoted on the Paris Eurolist Market. Atos operates under the brands Atos, Atos Consulting & Technology Services, Atos Worldline and Atos Worldgrid. For more information, visit: atos.net For more information, please contact: or visit: atos.net atos.net Atos, the Atos logo, Atos Consulting, Atos Worldline, Atos Sphere, Atos Cloud, Atos Healthcare (in the UK) and Atos Worldgrid are registered trademarks of Atos SA. February Atos.