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Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guara...
Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guara...
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Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guara...
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Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guara...
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Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guara...
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Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guara...
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ICT Outsourcing: Is it an Option?

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ICT Outsourcing Summit – Organised by Saudi Computer Society & NASEBA. 8-9 September 2013 | Riyadh | Kingdom of Saudi Arabia.

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ICT Outsourcing: Is it an Option?

  1. 1. www.emiratesid.ae ©2013EmiratesIdentityAuthority.Allrightsreserved Partners in Building UAE's Security & Economy Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Presented by Dr. Ali M. Al-Khouri In: ICT Outsourcing Summit – Organised by Saudi Computer Society & NASEBA. 8-9 September 2013 | Riyadh | Kingdom of Saudi Arabia ICT Outsourcing Is it an option?
  2. 2. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Table of contents Introduction View Point 1- In-house potential v/s outsourcing View Point 2- Outsourcing’s role in developing knowledge based economies View Point 3- Fuelling local skills and companies (on-shoring vs off-shoring) Conclusion- Benefits of IT Outsourcing 1 2 3 4 5
  3. 3. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Introduction1 Table of contents
  4. 4. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Introduction: ICT as enabler .. 1 • In today’s business world, IT is an integral part of business operations. • No longer a discrete functional department, producing report, or processing financial data. • Facilitate business and enable Organisations to develop competitive advantage.
  5. 5. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Characteristic Roles 1
  6. 6. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT in the Business 1 IT departments play a major role in the transition and transformation of an organization’s journey of process optimization. critical Strategic Alignment
  7. 7. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT in the Business 1 IT departments thus have a lot of functional activities that result in their own set of typical operations and projects critical Strategic Alignment
  8. 8. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT in the Business 1 In many cases, it is seen that the IT department runs on operations in parallel to the organization’s business operations. critical Strategic Alignment
  9. 9. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Areas in the Business • Infrastructure management • Data center management • Application management • Systems integration • Help desk services • Testing and validation services • R&D Services • Information Security Services. SYSTEMS MANAGEMENT SERVICE MANAGEMENT IN-HOUSE OR OUTSOURCE?? POTENTIAL OUTSOURCEAREAS 1 IT thus works with various service providers or vendors to create, maintain, or reengineer a company's business architecture and systems. The key areas of IT Operations include:
  10. 10. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Areas in the Business 1 • Tasks and activities are enormous and need dedicated resources. • This brings the business organization into a quandary: - should the organization focus on these IT Activity areas (that albeit aid the business)?, or - focus on the business itself that brings in the revenue? - Are the costs incurred on IT justified that the business can spend on?
  11. 11. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Areas in the Business 1 • Although critical, tend to divert organisations from core functions. • Many organizations moved into IT Consulting businesses while their core businesses were probably edible oil production or cloth weaving. • When businesses are clear about their focus areas of revenue, IT departments can be safely considered as potential outsource areas.
  12. 12. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Outsourcing: is it a new phenomenon? 1 • New phenomenon or invented for the new economy? • Existed since man sought to produce goods! • No one organization could ever build everything from within. • Business have always depended on vendors, partners to supply parts or services that were required for the goods that were designed and produced.
  13. 13. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Outsourcing: is it a new phenomenon? 1 • As economies developed and information technology aided the growth, IT became a new service. • And then, as the organizations realized that IT was becoming more a bane than a boon, IT started to be treated as another commodity necessary to run business operations and thus could be outsourced. • It all started with Kodak in 1989 when their IT operations was given to IBM to handle so that Kodak could focus on what they did best - make cameras. • It is a separate issue that IBM itself started outsourcing their own IT business operations for cost optimization. This came with globalization!!
  14. 14. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Outsourcing: is it a new phenomenon? 1 • Evolved into a rather mature business operations in the last 25 years. • New businesses setup to meet IT requirements. • Brick and mortar business could focus on their business and IT is available as a service commodity enabling the business. • However, the IT Outsourcing has no single model for operations. • IT requirements of organizations are as diverse as their business requirements. Even organizations involved in similar businesses have different business and therefore different IT requirements. Outsource?
  15. 15. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Outsourcing Framework: Need for a Strategy? Organization Objectives IT Strategy Enterprise Risks IT Risks Corporate Governance IT Governance Outsource Strategy ROI Cost /Benefit IT Areas to Outsource IT Human Resources Partner & Vendor Mgmt SLA & OLA Management KPI Management 1
  16. 16. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Outsourcing Framework: Consideration? Organization Objectives IT Strategy Enterprise Risks IT Risks Corporate Governance IT Governance Outsource Strategy ROI Cost /Benefit IT Areas to Outsource IT Human Resources Partner & Vendor Mgmt SLA & OLA Management KPI Management 1 IT as an integral part of the business operations and derive the strategy based on multiple factors
  17. 17. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Outsourcing Framework: what to outsource? Organization Objectives IT Strategy Enterprise Risks IT Risks Corporate Governance IT Governance Outsource Strategy ROI Cost /Benefit IT Areas to Outsource IT Human Resources Partner & Vendor Mgmt SLA & OLA Management KPI Management 1 determine the CAPEX and OPEX
  18. 18. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority View Point 1 In-house potential v/s outsourcing2 … determining whether IT is to be outsourced at all ? Table of contents
  19. 19. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE In-House or Outsource? A Practitioner’s Viewpoint… 2 • strong proponent of “Focus on Core Business”.. • all non-core activities like IT should be outsourced..
  20. 20. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE In-House or Outsource? challenges faced when non-core activities 2 IN-HOUSE CHALLENGES OUTSOURCE SOLUTIONS Harnessing potential is a continuous process and expensive with a specific training and development budget No training or internal resource development budgets. High Maintenance – requires supervision, management, leadership, training. Lower maintenance since the outsource is bound by SLAs and OLAs leaving the organization to manage the SLA/OLA System Management needs continuous updates- management against obsolescence Systems and IT Process management is owned and managed by the outsource partner with the organization needing to manage only service levels High Capital Expenditure owing to ownership of infrastructure High Operating Expenditure with no or very low CAPEX. The OPEX is offset by the cost of internal operations Risk of Employee Turnover and resource continuity Outsource partner manages their resources with organization focused on OLAs and service continuity
  21. 21. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE • As the world grows digital and geographic boundaries become less and less obscure, the global economy is driven by IT. • Information Management has evolved to Knowledge Management and Knowledge is shared. • This takes Outsourcing to a new paradigm. Digital World 3
  22. 22. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Table of contents View Point 2 Outsourcing’s role in developing knowledge based economies 3
  23. 23. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE • Is all about Globalization. • Universal access to knowledge and knowledge is ubiquitous. • Digital Economy drives the Knowledge Economy diminishing geographical borders. • Tapping knowledge across geographical borders automatically results in outsourcing. • One Connected World! Knowledge Economy and Outsourcing 3
  24. 24. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE • Technology transformed physical infrastructure available on demand as a service: Cloud Services.. • Data centers: provide computing platforms as a service. • Knowledge workers are available on demand. HR as a service. • .. all facilitated outsourcing activities. Knowledge Economy and Outsourcing 3
  25. 25. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Typically Characterized by • Costs of Labor • Access to Knowledge Workers • Demand and Capacity Management • Performance and Service Delivery Improvement • Digital Economy Outsourcing: technological in nature? 3
  26. 26. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Table of contents View Point 3 Fuelling local skills and companies (on- shoring vs off-shoring) 4
  27. 27. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE National Human Capital Development 4 managing partners and technology Service Delivery Managers focused on customer relationships and service delivery Mode of Outsourcing and Contract models (like Build- Own- Operate- Transfer) human resource development and transformation takes place in the organization
  28. 28. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Service Delivery  Active Directory Management and Administration  Server Administration  Storage Administration  Backup Administration  Network Administration  Security Administration  Database Administration  E-mail/ MS Exchange Administration  Help Desk Administration and Management  IT Incident Management  IT Problem and Resolution Management  IT Change Management  IT Asset Management- License Management  IT Systems Maintenance Areas of Knowledge Development 4 IT experts are available on-site Provide shadow teams that can work together with the experts Knowledge transfer On-Shore Outsourcing
  29. 29. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Resource provisioning • New Server Provisioning- Capacity Management • New User Provisioning • New Storage provisioning- Capacity Management • New Backup provisioning • Additional Memory and Processing (CPU) capabilities provisioning- Capacity Management • New Mail Box Provisioning- Capacity Management IT Monitoring • Server Performance Monitoring and Reporting • Network Performance Monitoring and Reporting • Network Security and Threats Monitoring and Reporting • Communication System Performance Monitoring and Reporting • Application Performance Monitoring Areas of Process Development 4 reduces operations costs management teams get developed managing the technology partners development of systems and business analysis that focus on information analysis & help organizational decision making. Off-Shore Outsourcing
  30. 30. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Application Services  Oracle ERP Maintenance, Administration and Management  SharePoint Maintenance, Administration and Management  EPM Maintenance, Administration and Management  Blackberry Maintenance, Administration and Management  CRM (when implemented) Maintenance, Administration and Management Intranet Services  Internal HR e-Services Maintenance, Administration and Management  Kiosks Hardware Maintenance, Administration and Management  CRM Services (Internal) • Configuration of applications, hardware, databases and operating systems • Documentation (Operations Manuals, Standard Operating Procedures, Policy Manuals) Areas of IT Services Development 4 Off-Shore Outsourcing Other key areas of development that could benefit for off-shore or near- shore outsourcing are Application Development and Implementation Services:
  31. 31. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Table of contents Conclusion Benefits of IT Outsourcing5 improving organizational performance by enabling organizations to remain focused on their core businesses.
  32. 32. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Outsource Approach 5
  33. 33. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Doubting Feasibility: 3 Phased Approach 5 IT OptimizationManaging IT resources in existing state Sustaining benefits
  34. 34. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE IT Outsource Transition Methodology 5
  35. 35. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Conclusion- IT Outsource Benefits 5 • Standardized IT Service Management and delivery with SLAs increasing internal IT Customer Satisfaction • Work on BYOD basis where users can get IT Services such as Domain Access, Office 365, Help Desk, Document Access, Security Services on the cloud • OLAs leading to optimal performance of IT Assets leading to better utilization of the IT hardware resources and thereby better utilization of power and space.
  36. 36. www.emiratesid.ae © 2013 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE Conclusion: Knowledge Workers 5 • Better utilization of human resources: We can redeploy the current skilled resources to: - Focus on core function and processes. - Utilize current skilled resources in critical projects since they will be free from day to day operations - this will lead to better IT Project Management and better delivery from IT Projects. - Lower Operating costs
  37. 37. Our Vision: To be a role model and reference point in proofing individual identity and build wealth informatics that guarantees innovative and sophisticated services for the benefit of UAE www.emiratesid.ae © 2010 Emirates Identity Authority. All rights reserved ‫اتحــــــــــــادية‬ ‫هيئــــــــة‬|Federal Authority Thank You Dr. Ali M. Al-Khouri Director General | Emirates Identity Authority | UAE ali.alkhouri@emiratesid.ae | www.emiratesid.ae
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