Sourcing 2006

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Sourcing Management:Outsourcing Decisions

Managed Services: Vendor responsibility for managing & delivering services as one

package

Application Service Providers:

Full application hosting & SLM based on a pay-as-you-go model

Hosting: Vendor responsibility for power, security, & bandwidth

Business Process Outsourcing: Transfer of ownership of any business process to a capable

vendor

SourcingMngt

SourcingMngt


Israeli TrendsOutsourcing Managed Services

Outsourcing model – matured & stabilized Win-Win deals – no more suicide pricing 55 % have some type of outsourcing in IT

Main Players: Ness-Golden Pages, Malam-Team-Jerusalem Municipality, IBM - Mei-Eden, EDS – Mataf, HP- Israeli Navy

Clients Satisfaction Survey:

and the winner is… EDS!

IsraeliTrendsIsraeliTrends

Total Israeli Outsourcing Services


Application Service Provider

Applications as services brings the “ASP” model back to life

From packaged products to subscription services Combination of deployment capabilities & cost

saving Microsoft SPLA module

Main Players: ONE - Salesforce.com – CRM On-Demand

Xlibris- College Libraries, Idea-Knowledge Base


Israeli Market - ASP / Software Based Hosting


Hosting

Hosting market - from co-location to managed hosting

services Service contracts for 3-4 years with:

Exit clauses Annual pricing reviews Technology refresh allowances Penalty for failure to meet service-level agreements

Main player: MED1 – Leumit, Keter, Zim, Shva, Fatal,

Tadiran-Kesher, Internet Zahav



Hosting & DRP Services

Israeli Market

MED1

Bezeq Int.

Golden Lines

Barak

Internet Zahav

Netvision

Infrastructure Outsourcing

Vendors:

HP

IBM

Others

Team

Bynet

AMAN


Business Process Outsourcing

BPO today is broader in scope than

traditional functional outsourcing Discrete function (e.g., payroll) vs. process (e.g., finance

and accounting)

BPO embeds ongoing process improvement BPO can introduce change and innovation, but at a

cost

Main Players: Payroll – Malam - Team, Hilan, Ness;

CC - Tikshuv, Bezeq-Col; Issue of Int. licenses -

Taldor; Mivzak Bankai - Bezeq ZahavBPO can provide significant business results, but at the

risk of internal change



IT Service Desk

IT Help Desk – technical support & coordination of escalation

procedures

L1 - 70%-85% first interaction rate of service

knowledge re the environment & where to find answers -

L2 - strong communication, technical analytical skills

leverage technologies to allow the fulfillment of a service

request remotely IT HD – the most popular outsourced service



Why Service Desk?

HD can represent up to 10% of an ITO’s operating budget

True cost reductions are attained only if staff is decreased

(outsourcer's economics of scale)

HD spend as a % of IT spend has decreased in 2005

Automation of the processes of the ITO

self-service, integration between the HD, asset & change

The question is not whether to outsource your HD, but when



IT Service Desk

Outsourcing presents the paradigm of applying technology to operate more efficiently by reducing ITOs staffs

ITOs must manage costly labor resources appropriately in line with the market competition of the outsourcers

Labor Resource Career Path



HD Cost Reducers

Mngt of the career path of staff (18-24 month rotation)

Use of automation to reach the desktop remotely

Use of integration (asset, change & infrastructure info)

Proactive problem mngt

(reduce & remove recurring incidents & known errors)Personalized services doesn’t equal higher quality of

service



Outsourcing (SLA) & BPO

Israeli Market

NessMalam-TeamIBM

EDS

ELADYael

Calanit Carmon

(Munic)HilanTaldorMatrixHP

ONE1MalalArnetXor

AmanBynet

Integrity


Training & Implementation Management

Continuity of implementation market growth Stability of training market The investment in employees has been increased

Main topics: High demand for advanced Linux courses, J2EE, . NET, & Q/A & Testing

Main players: Matrix (John Bryce) + Hi Tech College, Ness, Sela Group



IT Education & Implementation Training

Israeli Market

MatrixJohn Bryce

Emet

HP

Sela

Ness


Q/A & Testing Management

QA & Testing – 15% of the project

Many companies doing it in-house

Organizations recognize the need for proficiency

Rapidly growing area

Main Players: Tescom, NESS, Tesnet, Malam - Team



Testing / QA Projects

EasyQA

Malam-Team

Tesnet

Tescom

Ness

Israeli Market


Professional Services

Sourcing of PS becomes the next core competency of organizations leveraging external services as part of the operational strategy

81% have PS (24% of the workforce is the average)

IT salaries paradox

Main Players: Matrix, Ness, Malam - Team



PS / Contracted Experts

Israeli Market

Bynet

Sourcing 2006

Business

Transcript of Sourcing 2006