Building, Managing and Measuring Strategic Partnerships Anthony Abbattista Vice President Technology Solutions

Allstate at a Glance The nation's largest publicly held personal lines insurer of homes and autos A Fortune 100 company with $157.5 billion in assets Allstate sells 13 major lines of insurance, including auto, property, life and commercial. Allstate also offers retirement and investment products and banking services Allstate is widely known through the “You’re In Good Hands With Allstate®” slogan The Allstate Corporation encompasses more than 70,000 professionals with technology operations located around the globe More than 17 million customers in the U.S. and Canada

The nation's largest publicly held personal lines insurer of homes and autos

A Fortune 100 company with $157.5 billion in assets

Allstate sells 13 major lines of insurance, including auto, property, life and commercial. Allstate also offers retirement and investment products and banking services

Allstate is widely known through the “You’re In Good Hands With Allstate®” slogan

The Allstate Corporation encompasses more than 70,000 professionals with technology operations located around the globe

More than 17 million customers in the U.S. and Canada

Innovating. Evolving. Emerging. Annual technology spend is more than $1B More than 6,000 technology professionals – across the country, around the globe and in just about every time zone Multiple operating and database systems and technology platforms Over 1.5 petabytes of useable networked storage capacity Storage capacity is growing 40% annually

Annual technology spend is more than $1B

More than 6,000 technology professionals – across the country, around the globe and in just about every time zone

Multiple operating and database systems and technology platforms

Over 1.5 petabytes of useable networked storage capacity

Storage capacity is growing 40% annually

The Evolution of Sourcing Pre 1998 – Large numbers of local contractors Escalating labor costs, quality issues 1998 – Created a captive in Belfast Northern Ireland Labor arbitrage Created in our own likeness 2003 – Due diligence and first Indian relationship formed Scale Access other people’s brains and money 2006 – Expanded to three Indian providers Diversity and competition at a new level Now – Deep relationships across Allstate Partnership and joint problem solving

Pre 1998 – Large numbers of local contractors

Escalating labor costs, quality issues

1998 – Created a captive in Belfast Northern Ireland

Labor arbitrage

Created in our own likeness

2003 – Due diligence and first Indian relationship formed

Scale

Access other people’s brains and money

2006 – Expanded to three Indian providers

Diversity and competition at a new level

Now – Deep relationships across Allstate

Partnership and joint problem solving

Critical Aspects of Strategic Partnership Small number of relationships Executive sponsorship/involvement Metrics and well defined service level agreements (SLA) 51% accountability Transparency Commitment to flexibility Shared success

Small number of relationships

Executive sponsorship/involvement

Metrics and well defined service level agreements (SLA)

51% accountability

Transparency

Commitment to flexibility

Shared success

Parting Thoughts Whether service or products -- strategic partnership requires a culture of commitment Start small and scale fast Choose companies that you can work with Must be willing to change yourself and existing practices

Whether service or products -- strategic partnership requires a culture of commitment

Start small and scale fast

Choose companies that you can work with

Must be willing to change yourself and existing practices