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Applications outsourcing as a means to achieving transformation

Applications outsourcing as a means to achieving transformation Aprajita Sharma Research Manager, Outsourcing & BPO IDC Australia. Aprajita Sharma Program Manager IT Services/Outsourcing.

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Applications outsourcing as a means to achieving transformation

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  1. Applications outsourcing as a means to achieving transformation Aprajita Sharma Research Manager, Outsourcing & BPO IDC Australia

  2. Aprajita Sharma Program Manager IT Services/Outsourcing Applications outsourcing as a means to achieving transformation

  3. Agenda • Overall Market Trends • AM Services Value Pyramid • AO as a means to achieving transformation

  4. OVERVIEW OF MARKET TRENDS

  5. Australia Application Management Services Spending Discrete AM Services AMS Embedded in ISO Contracts AMS Embedded in BPO Contracts Covered in IDC AM Services forecast Sourcing Model Domestic Service ProviderDelivered Onshore DomesticService ProviderDelivered Offshore Offshore Service ProviderDeliveredOnshore Offshore Service ProviderDelivered Offshore Discrete vs. Bundled AM Services

  6. Competitive Analysis Australia Leadership Grid For Offshore Applications Management

  7. AM SERVICES VALUE PYRAMID

  8. Trans-formation Portfolio Optimisation Day-to-Day Operational Responsibility Remote Server Monitoring Legacy Modernisation Proactive Application Enhancements Reactive Application Maintenance End-User Support The AM Services Value Pyramid “Partners for Transformation”Combination of business strategy with application portfolio optimisation and transformation Customer Business Value “True Application Management”Operational knowledge & responsibility “Enhancing the Code”Adding value to individual apps. “Supporting User & Code”Low-end, delivered offshore

  9. Role Of A Partner In Sustaining Application Investments

  10. AO as a means to achieving transformation

  11. AO as a means to achieve transformation • Enhanced overall enterprise functionality and efficiency • Fixed Costs and Variable Payment Methods • Guaranteed SLAs • Continued access to skilled IT personnel • Reducing the cost of maintaining and upgrading infrastructure • Increasing Customer Satisfaction • Mitigated Risk

  12. 30-40% reduction in product • deployment time • 40% faster systems implementation • Improved faster conversion or • consolidation of acquired assets • (30-60% in time, 30% of • costs) Partnering – Complexity V/s Potential Savings High Transformation and APM Implementation Complexity Co-Sourcing Staff Augmentation Partners co-develop future state sharing cost and Risk Partners performs the transformation and assumes risk Skilled Resources are provided by partner on demand Low Low Savings High Note: Using these base structures organisations may adopt one or more to meet specific requirements

  13. What is the roadmap going forward? • Managing a larger portion of the application portfolio • Integrating services, such as portfolio optimisation, process reengineering • Transforming environment to Dynamic IT • Embracing new delivery models such as hosted AM • Building and managing SOAs • Synergising AO and BPO services • New strategies as a result of application vendor consolidation

  14. Essential Guidance • Move up the value chain by looking at application from a portfolio perspective: self-funding transformation • Embrace packaged application services while maintaining increasingly valuable legacy skillsets (are there any COBOL majors out there?) • Think strategically about global sourcing • Use project-based transformation services to start with- • Transformation is difficult!! • Invest in Hosted AM • Stop any investments not aligned to the vision !! Its an evolution not a revolution!!!

  15. Questions? Please email me at asharma@idc.com

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