• Like
Variabilization of IT –Transforming The Business Landscape
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Variabilization of IT –Transforming The Business Landscape

  • 715 views
Published

Fixed costs have become a thing of the past. In an ideal world for the enterprises, all IT costs will be variable. It is a situation where companies can concentrate on the business component and the …

Fixed costs have become a thing of the past. In an ideal world for the enterprises, all IT costs will be variable. It is a situation where companies can concentrate on the business component and the IT component will take care of itself.

Published in Business , Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
715
On SlideShare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
24
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Variabilization of IT – Transforming The Business Landscape1 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 2. Variabilization of IT Fixed costs have become a thing of the past. In an ideal world for the enterprises, all IT costs will be variable. It is a situation where companies can concentrate on the business component and the IT component will take care of itself. Variabilization of IT is increasingly looked upon as the key in solving the cost conundrum. This paper focuses on the evolution of ‘Variabilization of IT’ and the commercial models prevailing in the markets.2 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 3. Variabilization – A game changer Traditional – Fixed Cost The Variabilization Way The fixed costs involved in IT are Variabilization, typically transforms increasingly becoming a liability. fixed costs into variable ones. It Any market decline results in involves variabilizing of operations significant losses due to these and investment to bring in agility heavy investments. This is where and flexibility. It allows enterprises variabilization becomes a game to stay nimble in any economic changer climate. Today, service providers are looking at providing IT as a utility service. This change was a result of the changing business circumstances and the effect of latest technologies like cloud computing, virtualization and mobility. Variabilization is typically an outgrowth of this new business approach3 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 4. The Current Scenario CIOs across enterprises are looking at variabilization to cut their costs and make their businesses more agile and flexible A leading provider of healthcare services achieved 66% cost variabilization after it built an engagement model to address costs across hardware, software, facilities and services A leading Dutch manufacturer of paints achieved 35% cost savings due to variabilization. It deployed the remote backup service, wherein backup cost was based on volume of business data stored QUICK FACTS 74% By transforming is the overall Currently, in a the IT model to potential of ‘model’ company, include cloud- variabilizing all approximately 36% based offerings, IT components, of the IT cost is this can be excluding SaaS variable increased to 60%4 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 5. Commercial Models of Variabilization Fixed Price Pay-as-you-use Outcome Based Gain Sharing Model Model Model  Predictable Cost  Accurate  Supporting  Accurate  Well – defined baseline culture / baselines scope of work  Well – defined, governance  Well-defined  Stable stable  Innovate with/low goals requirements requirements upfront cost  Willing to accept  Measurable  Fluctuations in  Both sides add provider’s success criteria output or value solution consumption  Executive  Willing and able  Well – defined sponsorship to share gains service levels5 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 6. Variabilization Brings Strategic Benefits A cut in overall operational expenditure Embracing Variabilization can help costs would result in reduction of IT companies align their total IT spending spend as well. Later, when there is a with overall business growth. If the IT plan to scale up the business, costs are variabilized, the IT spend would proportionate IT investment can also be also be proportionately variabilized. scaled up easily with lesser effort and cost6 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 7. Looking Ahead Most enterprises are Variabilization will Progressive already viewing increasingly simplify IT organizations across Variabilization as a by reducing and masking industries are already strategy that goes complexity and allow IT surfing this wave of beyond cost savings, operating expenses to Variabilization and with increasing focus on vary with the expansion seeing growth even in agility, orchestration and and contraction of the the face of distressing risk management. business that it supports. economic conditions7 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 8. For more details please visit the link below: http://www.wipro.com/Documents/variabilization_of_it_tran sforming_the_business_landscape.pdf8 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 9. About Wipro Council for Industry Research Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies. For more information on the Research Council visit www.wipro.com/insights or mail wipro.insights@wipro.com9 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 10. About Wipro Technologies Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognised globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro Technologies has over 140,000 employees and clients across 54 countries. For more information, please visit www.wipro.com10 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL
  • 11. Thank You ©Wipro Limited, 2013. All rights reserved. For more information visit www.wipro.com No part of this document may be reproduced in whole or in part without the written permission of the authors. Wipro is not liable for any business outcome based on the views presented in this document. For specific implementation clients should take advise from their client engagement manager.11 © 2013 WIPRO LTD | WWW.WIPRO.COM | CONFIDENTIAL