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What’s the Framework? | Where Do You Start?
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Laying the foundation for a digital transformation
Digital transformations starts with a solid vision for cloud, platforms, automation
and how to use agile processes. This creates the backbone and architecture for
digital insights and the interactive customer experience.
ISG’s Digital Framework
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Digital requires a flexible infrastructure and better processes
Agile Application Development & Processes
► Automated infrastructure management
► Standardized and commoditized environment
► Tower orientation replaced by converged cloud
► ITaaS or service brokers
► Integration and management are differentiators
► Agile in a global delivery model becomes the norm
► Integrated DevOps team with rapid deployment
► Contracting for agile switches from well-defined scope to
► Integrated development and business teams drive digital
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The digital backbone provides agility and cost efficiencies
The digital backbone not only enables agility but can drive costs out of the
business. Understanding the levers is key to formulating the strategy.
Typical Client Current State
Increased Costs Decreased Costs
Custom Apps SaaS/PaaS
Limited Highly Automated
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Cloud costs are “highly” sensitive to usage
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Range of Public Cloud Prices per
Logical Server Configured Like
Client's X86 Linux
Interest in cloud adoption is exploding in insurance, but cloud is not always cheaper.
Internal IT costs are typically less than the public cloud when cloud instance usage is high,
but public cloud becomes more cost effective when usage is less than 55 percent.
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Applications drive the delivery model
By assessing / modeling the utilization of the applications workloads, you can
devise the optimal deployment model between cloud and traditional data centers
while also rationalizing your application portfolio.
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A hybrid model
After evaluating workloads, most clients realize they require a hybrid model with
some apps remaining in traditional data centers / managed hosted environments.
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Multi-speed IT addressing digital demands
► More brownfield than greenfield
► Silo Development APIs, web services, platforms
► Multiple speeds of IT delivery coexisting – agile and
► Fixed-price contracts vs agile
► Agile enterprise architecture
► Move from local optimization to lifecycle thinking
► Application portfolio and footprint
► Manage business idea system retire
► Think “service“ instead of “application“
► Buy vs build vs XaaS
► Flexible price per business service
Multi-speed Application Development Focus on Application Lifecycle
Digital transformation will also require applications to be developed at different
speeds, giving rise to bi-modal IT.
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Get ready for DevOps
Applications undergoing higher speeds of change will demand integrated DevOps.
Testing & Staging
Agile / Kanban / Lean
making it safe to fail
Systems Thinking & stricter
Application Lifecycle Mgmt
Agile operations with SDDC
Culture, people, processes –
especially when sourced
Building Blocks for DevOps
microservices & platform
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Drive IT portfolio
Needs, Innovation &
Build what the
when it wants it
Catalog, fulfill &
Anticipate & Resolve
Multi-speed process orchestration in a digital enterprise
The role of infrastructure shifts from “installer and maintainer“ to “broker and
Cont. Serv. Improvement
Reporting Service Level Management
Consumption Management Quality Management
Governance & Management Systems
Org Change Management
Policies & Standards Mgt.
Knowledge Management Data Management
Audit & Compliance Management
Risk & Compliance Management
Contract Change &
Prov. Audit Prep. &
Contract Compliance &
Spend Pool Management
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How ISG typically gets started with clients
► What are our current costs and consumption?
► What should we move to the cloud? What should we keep in our datacenters and
► What’s the ROI of the targeted digital future state? What will it cost to implement,
including the upfront investments?
► What’s the implementation roadmap, including overall program timeline, service
management design and other change management programs required to transform to
the new delivery model?
ISG recommends starting by developing a digital strategy that focuses on creating
the digital backbone and transforming the legacy infrastructure into a cloud-ready
agile-enabled environment. The strategy should address:
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The ISG Advantage
ISG focuses exclusively on helping clients achieve operational excellence by providing
unparalleled data, experience and insights.
► Achieved or identified more than US $65 billion in
client savings in more than 17,500 engagements
► Advised over 80 percent of the Forbes Global 100
with most being repeat clients
► Advised on 17 percent of the sourcing market’s
annual TCV awarded and more than 60 percent of
the TCV sourced with the aid of an advisor over the
past five years.
► Owner of one of the largest authoritative
repositories of sourcing contracts and cost
benchmark data in the world
► Over 1,000 professionals in 21 countries, serving
commercial enterprises and governments across
► Proudly independent with deep collaborative
relationships with all major service and technology
1,000 employees in 21 countries
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ISG is the leader in all aspects of services strategy, sourcing and business operations
*Contracts with ACV> $5M from the ISG Contracts Knowledgebase™ since 2008
► Corporate focus on ISG product
development; data harvested from
engagements for benchmarking
► Large teams of SMEs in all competencies
from Service Integration to
Applications/DevOps to Emerging
► Robust and continuously improving product
development and training with a focus on
► Committed to engage with the service provider market; robust investment in
research and collaborative sessions with the provider community in IT, Applications,
Business Process and Engineering Services
► Aligned with service providers’ most recent improvements so that our clients can
take advantage of capabilities they may otherwise not experience
Big 4 Acctg Firms
Other Niche Firms
Type of Advisor Used for Broader Market* Awards
N = $298 in Annual Contract Value
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ISG’s Global Insurance Practice At-a-Glance
Our service lines and competencies provide a comprehensive array of consulting
skills augmented with deep insurance industry knowledge
AUTO / MOTOR
Data & Analytics
Strategy & Operations
/ POLICY ISSUE
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Financial Services and Insurance Engagement Experience
ISG has a long track record in helping the world's leading insurance companies meet the
demands of increased agility, efficiency, compliance and client service.
Engagements by Region
97% of our
are with repeat clients
Assisted 13 of the 20 largest US
insurers (by premium)
Largest claims and underwriting BPO
transaction in US history
Supported global insurance
operations lift outs
Program managed global data center
consolidation, transitions and
3,579 Total Engagements for
363 Unique Clients
Engagements by Service Area
Inform Services 15
Assess Services 1,979
Design Services 180
Execute Services 618
Operate Services 250
Project Management Services 221
Governance Services 28
Consulting Services 537
*TCV of ISG Led Sourcing Contracts ($B) $85 B
% ISG Led Contracts Valued at > $50M 63%
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Social Media &
(IT & Business Process)
ISG understands insurance business operations and services.
Whether your services are internally
provided, outsourced, from an offshore
captive, shared services or all of these,
we know how to help you be more
efficient and save money.
Operational excellence is our business.
Our clients ask:
► How do I ensure my IT and business services
meet the demand of my internal and external
► How do I ensure my back office is efficient
and the services are optimized?
► Is my organization delivering services
► How can I ensure that my service providers
deliver the best services and integrate
effectively with the rest of my organization?
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Acquisitions and partnerships enhance ISG Service offerings.
What applications are appropriate for the cloud?
How much do applications cost across public cloud providers?
What is the cost of my current environment?
(applications and workload)
Is my consumption aligned with the industry?
What am I consuming on premises and in the cloud?
How can I optimize my license agreements as we move toward digital
and cloud strategies?
►What are the trends in my industry?
►What are my current costs and consumption?
►What can I move to the cloud?
►What will it cost me?
►And…..How do I measure what I get and get
what I’m paying for?
We have also acquired companies and formed partnerships to help our clients
answer the following:
ISG acquired Saugatuck which provides
subscription research and research-based
consulting and event services focused on Cloud (in
all of its forms - IaaS, PaaS, SaaS), Mobility,
Social Computing, and Advanced Analytics,
among other key trends enabling the Boundary-
Information Services Group is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the
world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational
environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation,
program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology,
the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in
Stamford, Conn., the company has more than 900 employees and operates in 21 countries.
imagine your future™
RESEARCH | CONSULTING | MANAGED SERVICES
We understand business operations
These are some of the questions we are asked on our assignments
We have unique insight into operations. We own the single largest repository of sourcing contracts and operational metrics data in the world
Which is a key enabler for us to be able to answer these questions for our clients
In addition to our data, we have a practice called SIAM which stands for Service Integration and Management. We will discuss what this is and how important it is to drive change in an operating model on the next few slides
Emerging Technology Play – Summing up
Cloud is the threat, digitization the opportunity.
The cloud poses a disruptive threat to the entire IT market
Cloud is shrinking the infrastructure pie for the traditional IT service provider.
IaaS is reducing unit prices.
SaaS is reshaping application delivery – the build vs. buy decision heavily swayed to buy
The ‘run’ pie is shrinking, but the transformation/project opportunity is expanding. But whether the latter will compensate for revenue cannibalization by the former is far from clear.
Digitization is an opportunity – for those who adapt to the new rules of ADM
Digitization essentially means more and more processes will come under the purview of software, which implies a lot of new software will have to be built.
But the rules of ADM are changing – the service provider needs to develop product management competency and take agile development to a whole new level.
BPO: the future belongs to those can bring industry sector skills, development competency, and analytics together
There is now widespread expectation of service provider-owned technology and automation. Analytics is an essential part of all BPO service lines. And the BPO conversation is moving beyond cost.