Sourcing 2006


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Sourcing 2006

  1. 1. Sourcing Management: Outsourcing Decisions <ul><li>Managed Services: </li></ul><ul><ul><li>Vendor responsibility for managing & delivering services as one package </li></ul></ul><ul><li>Application Service Providers: </li></ul><ul><ul><li>Full application hosting & SLM based on a pay-as-you-go model </li></ul></ul><ul><li>Hosting: </li></ul><ul><ul><li>Vendor responsibility for power, security, & bandwidth </li></ul></ul><ul><li>Business Process Outsourcing: </li></ul><ul><ul><li>Transfer of ownership of any business process to a capable vendor </li></ul></ul>Sourcing Mngt
  2. 2. Israeli Trends Outsourcing Managed Services <ul><li>Outsourcing model – matured & stabilized </li></ul><ul><li>Win-Win deals – no more suicide pricing </li></ul><ul><li>55 % have some type of outsourcing in IT </li></ul><ul><li>Main Players: Ness-Golden Pages, Malam-Team-Jerusalem Municipality , IBM - Mei-Eden, EDS – Mataf, HP- Israeli Navy </li></ul><ul><li>Clients Satisfaction Survey: </li></ul><ul><li>and the winner is… EDS! </li></ul>Israeli Trends Total Israeli Outsourcing Services
  3. 3. Application Service Provider <ul><li>Applications as services brings the “ASP” model back to life </li></ul><ul><li>From packaged products to subscription services </li></ul><ul><li>Combination of deployment capabilities & cost saving </li></ul><ul><li>Microsoft SPLA module </li></ul><ul><li>Main Players: ONE - – CRM On-Demand </li></ul><ul><li>Xlibris- College Libraries, Idea-Knowledge Base </li></ul>Israeli Trends Israeli Market - ASP / Software Based Hosting
  4. 4. Hosting <ul><li>Hosting market - from co-location to managed hosting </li></ul><ul><li>services </li></ul><ul><li>Service contracts for 3-4 years with: </li></ul><ul><ul><li>Exit clauses </li></ul></ul><ul><ul><li>Annual pricing reviews </li></ul></ul><ul><ul><li>Technology refresh allowances </li></ul></ul><ul><ul><li>Penalty for failure to meet service-level agreements </li></ul></ul><ul><li>Main player: MED1 – Leumit, Keter, Zim, Shva, Fatal, </li></ul><ul><li>Tadiran-Kesher, Internet Zahav </li></ul>Israeli Trends
  5. 5. Hosting & DRP Services Israeli Market MED1 Bezeq Int. Golden Lines Barak Internet Zahav Netvision Infrastructure Outsourcing Vendors: HP IBM Others Team Bynet AMAN
  6. 6. Business Process Outsourcing <ul><li>BPO today is broader in scope than </li></ul><ul><li>traditional functional outsourcing </li></ul><ul><ul><li>Discrete function (e.g., payroll) vs. process (e.g., finance and accounting) </li></ul></ul><ul><li>BPO embeds ongoing process improvement </li></ul><ul><li>BPO can introduce change and innovation, but at a cost </li></ul><ul><li>Main Players: Payroll – Malam - Team, Hilan, Ness; </li></ul><ul><li>CC - Tikshuv, Bezeq-Col; Issue of Int. licenses - </li></ul><ul><li>Taldor; Mivzak Bankai - Bezeq Zahav </li></ul>BPO can provide significant business results, but at the risk of internal change Israeli Trends
  7. 7. IT Service Desk <ul><li>IT Help Desk – technical support & coordination of escalation </li></ul><ul><li>procedures </li></ul><ul><li>L1 - 70%-85% first interaction rate of service </li></ul><ul><li>knowledge re the environment & where to find answers - </li></ul><ul><li>L 2 - strong communication, technical analytical skills </li></ul><ul><li>leverage technologies to allow the fulfillment of a service </li></ul><ul><li>request remotely </li></ul>IT HD – the most popular outsourced service Israeli Trends
  8. 8. Why Service Desk? <ul><li>HD can represent up to 10% of an ITO’s operating budget </li></ul><ul><li>True cost reductions are attained only if staff is decreased </li></ul><ul><li>(outsourcer's economics of scale) </li></ul><ul><li>HD spend as a % of IT spend has decreased in 2005 </li></ul><ul><li>Automation of the processes of the ITO </li></ul><ul><li>self-service, integration between the HD, asset & change </li></ul>The question is not whether to outsource your HD, but when Israeli Trends
  9. 9. IT Service Desk <ul><li>Outsourcing presents the paradigm of applying technology to operate more efficiently by reducing ITOs staffs </li></ul><ul><li>ITOs must manage costly labor resources appropriately in line with the market competition of the outsourcers </li></ul><ul><li>Labor Resource Career Path </li></ul>Israeli Trends
  10. 10. HD Cost Reducers <ul><li>Mngt of the career path of staff (18-24 month rotation) </li></ul><ul><li>Use of automation to reach the desktop remotely </li></ul><ul><li>Use of integration (asset, change & infrastructure info) </li></ul><ul><li>Proactive problem mngt </li></ul><ul><li>(reduce & remove recurring incidents & known errors) </li></ul>Personalized services doesn’t equal higher quality of service Israeli Trends
  11. 11. Outsourcing (SLA) & BPO Israeli Market Ness Malam-Team IBM EDS ELAD Yael Calanit Carmon (Munic) Hilan Taldor Matrix HP ONE1 Malal Arnet Xor Aman Bynet Integrity
  12. 12. Training & Implementation Management <ul><li>Continuity of implementation market growth </li></ul><ul><li>Stability of training market </li></ul><ul><li>The investment in employees has been increased </li></ul><ul><li>Main topics: </li></ul><ul><li>High demand for advanced Linux courses, J2EE, . NET, </li></ul><ul><li>& Q/A & Testing </li></ul><ul><li>Main players: </li></ul><ul><li>Matrix ( John Bryce) + Hi Tech College, Ness, Sela Group </li></ul>Israeli Trends
  13. 13. IT Education & Implementation Training Israeli Market Matrix John Bryce Emet HP Sela Ness
  14. 14. Q/A & Testing Management <ul><li>QA & Testing – 15% of the project </li></ul><ul><li>Many companies doing it in-house </li></ul><ul><li>Organizations recognize the need for proficiency </li></ul><ul><li>Rapidly growing area </li></ul><ul><li>Main Players: Tescom, NESS, Tesnet, Malam - Team </li></ul>Israeli Trends
  15. 15. Testing / QA Projects EasyQA Malam-Team Tesnet Tescom Ness Israeli Market
  16. 16. Professional Services <ul><li>Sourcing of PS becomes the next core competency of organizations leveraging external services as part of the operational strategy </li></ul><ul><li>81% have PS (24% of the workforce is the average) </li></ul><ul><li>IT salaries paradox </li></ul><ul><li>Main Players: Matrix, Ness, Malam - Team </li></ul>Israeli Trends
  17. 17. PS / Contracted Experts Israeli Market Bynet