Copyright©2005AccentureAllRightsReserved.Accenture,itslogo,andHighPerformanceDeliveredaretrademarksofAccenture.OverviewofOutsourcingMay20052©2005AccentureAllRightsReserved.Agenda•IntroductiontoOutsourcing•PreparingforOutsourcing•RunningOutsourcing•NextStepsinOutsourcing3©2005AccentureAllRightsReserved.INTRODUCTIONAWorkingDefinitionofOutsourcingOutsourcingdenotesthecontinuousprocurementofservicesfromathirdparty,makinguseofhighlyintegratedprocesses,organizationmodelsandinformationsystems.OUTSOURCERCOMPANYServicesOrganizationLevelAgreementServiceLevelAgreement4©2005AccentureAllRightsReserved.INTRODUCTIONOntheoriginsofOutsourcing•50-70VerticalandHorizontalIntegration•70-80ForeignDirectInvestment•80-90GlobalSourcing•90-Outsourcing5©2005AccentureAllRightsReserved.INTRODUCTIONVerydifferentlevelofacceptance98,6%1,4%:costsforoutsourcing100%0%20%40%60%80%Bankingindustryworldwide:costshareofoutsourcedservices2003Germancarmanufacturers:degreeofverticalintegration38%32%24%62%68%76%0%20%40%60%80%100%198019902000ValueCreationSuppliersValueCreationProducer6©2005AccentureAllRightsReserved.INTRODUCTIONTypesofOutsourcingBusinessprocessesApplicationDevelopmentandMaintenanceIT-infrastructureBPO:BusinessProcessOutsourcingASP:ApplicationServiceProviderDBRO:Design,Build,Run&OperateADM:ApplicationDevelop.&MaintenanceITO:ITInfrastructureOutsourcingITS:ITServices,ManagedHostingAdministrativeprocessesAPO:AdministrativeProcessOutsourcingOutsourcingmodels:BPOAMOSDO7©2005AccentureAllRightsReserved.INTRODUCTIONBPO-BusinessProcessOutsourcingDegreeofindustrializationmediumhighlowCustomizedIndustrializedSingleservicedeliveredtomultipleclientssimultaneouslySimilarservicesdeliveredtomultipleclientsCustomdesignedservicesleveragingknow-howOne-to-oneOne-to-many8©2005AccentureAllRightsReserved.INTRODUCTIONAMO-ApplicationManagementOutsourcing9©2005AccentureAllRightsReserved.INTRODUCTIONSDO–ServiceDeliveryOutsourcing•Security-End-to-endsecurityservicesincludingfirewallmanagement,intrusiondetection,identitymanagementandsecuritypolicy•DataCenters-Remoteandon-sitemanagedserverhosting-Datacenters•TechnicalSupport-Helpdesk,desk-sideandself-servicesupport-Globalhubs•NetworkServices-Managingdataandvoicenetworks•DesktopManagementandMobility-PC,laptop,hand-held,distributed•SupplierManagement-Identifying,qualifying,contractingandmanagingstrategicsuppliersServicesDataCentersDesktopMgmt.&MobilityTechnicalSupportNetworkServicesSecuritySupplierMgmt.ClientOperationsManagementMessaging&CollaborationTechnicalSupportDesktopManagement&MobilityNetworkManagementHostingSalesSupportandMobilizationSecurityOperationsDeliverycapabilities10©2005AccentureAllRightsReserved.INTRODUCTIONSourcingofOutsourcing•Off-Site–Localserviceproviders•NearShore–Proximitycross-borderserviceproviders•Off-Shore–RemoteCross-borderserviceproviders11©2005AccentureAllRightsReserved.INTRODUCTIONGeographicsofOutsourcingMontreal(1)Atlanta(1)Wilmington(1)Toronto(1)London(1)Riga(1)Prague(1)Madrid(1)Bratislava(1)Malaga(1)Mauritius(1)Bangalore(3)Mumbai(3)Dalian(1)Shanghai(1)Manila(8)Chennai(1)Hyderabad(1)SãoPaulo(1)Houston(1)Cincinnati(1)Chicago(1)Ireland(1)Budapest12©2005AccentureAllRightsReserved.INTRODUCTIONTrendisclearlytowardsOff-Shore13©2005AccentureAllRightsReserved.INTRODUCTIONTypicalOutsourcingClientsArgentariaBancaItaleaseBBVABancoRiodelaPlataBankiterBarclaysBankplcBilbaoBizkaiaKutxa(BBK)CaixaCatalunyaCajaMadridCortalConsorsCreditLyonnaisDepositoryTrust&ClearingDeutscheBankDnBNORMorganStanleyProvidianRoyalandSunAllianceSallieMaeSantanderSchmidtBankSECPadovaSEIUBSLifeInternationalUniversalLevenWorkers’CompensationBoardXelionEspiritoSantoSequrosGEConsumerFinanceGrupoFinancieroBanCrecerGuyCarpenterImmobiliere3FInfocajaINGGroupItalianPensionAgencyJohannesburgSecuritiesExchangeJPMChaseLondonStockExchangeLosangoMediolanumMeridiaAmerenBCHydroBordenChemicalBPBritanniaOperatorCogemaDowChemicalDuPontDynegyDirectEnergyEssentialHomeServices(DEEHS)EnbridgeGasDistributionEnbridgeGasNewBrunswickFreeportMcMoRanRAGAmericanCoalRepsolYPFRhodiaSiamCementSitheEnergiesSlovnaftSouthernCompanyGASTalismanEnergyLtd.TerasenUtilityServicesThamesWaterTiconaTotalE&PUKplc(formerlyTotalFinaElf)HalliburtonLASMOplcLyondell-CitgoRefiningMOL-HungarianOil&GasMidAmericanEnergyNorskHydroOrangeandRocklandUtilitiesPPL(PennsylvaniaPower&Light)02(formerlyBTCellnet)AlcatelAlgarAT&TAvayaBellSouthBostonScientificBTCegetelCitrixeBayEMCETSSoneraSunMicrosystemsTecnomenTelecomArgentinaTelecomItaliaTelefonicaArgentinaTexasInstrumentsThomsonVIANetworksXMSatelliteRadioFujitsuSiemensComputersInfineonInfostradaJVCdoBrasilLtda.&NokiaGradienteIndustrialOGloboEmpresaOlivettiTecnostOmnitel2000QinetiQSiemensMobileCommunicationsItalySITAAlcanArdentAsahiBreweryAstillerosEspanoles,nowIZARAstraZenecaBestBuyBrahmaBristolMyersSquibbCampofrioCarrefourCaterpillarDelphiDeltaDiageoDSVGroupeLSGSkyChefs.comNeptuneOrientLinesNewLookPaylessShoeSourcePfizerRenaultResortCondominiumsInternational(RCI)Sainsbury’sSaraLeeSolarTurbinesTexasMedicaidTransnetPortnetUPSWärtsiläWy