© 2010 IBM Corporation Real World Experiences of Running Global Services The Pain points associated with a Distributed, Multinational Delivery Model Jim

© 2010 IBM Corporation

Real World Experiences of Running Global ServicesThe Pain points associated with a Distributed, Multinational Delivery Model

Jim [email protected]


Agenda

1. Market trends

2. “Demographics” – the delivery landscape in IBM

3. The path that lead us here

4. The crux of the problem

5. Mitigation through adjustments to• Organization• Process • Tooling

6. An ask for help

2

© 2011 IBM Corporation33

Outsourcing value and delivery models are evolving to standardized, global offerings

Global delivery modelsLocal labor sources

Enhanced value outsourcing

Asset-based servicesLabor-based models

Standardized offeringsCustomized offerings

Full-scope outsourcing

1999 - 2009 2009 - 2015

Market Dynamics

• Industry/technical expertise and innovation are replacing cost as primary differentiators

• Clients are moving to a multiple location (virtualized) delivery model

• Emerging economies are growing fast with expanded requirements for language and culture

• Service providers are growing their global presence and expanding their offering portfolio


South Africa

UK

Canada

U.S.

Mexico

Peru

Venezuela

Brazil

Argentina

Ireland

France

Portugal

Spain

China

Philippines

Vietnam

India

Australia

New Zealand

Poland

Czech Rep.

Hungary

Romania

Infrastructure Delivery Center

Application Services

Managed Business Processing Services

Consistently managed across process, automation, tools and analytics

IBM’s Delivery Centers

IBM Global Delivery


IBM’s broad and deep experience in services provides the insights to drive quality and productivity consistently and deliver client value

Finance: IT for trading floors, IT for core banking applications, ATM infrastructure… Consumer Products: IT for global supply chain, infrastructure for logistics management… Telecommunications: Customer service IT infrastructure for billing, help desk and order processing, IT

for new client services… Energy & Utilities: IT platform for consumer billing, automated meter management platforms, distribution

IT support… Insurance: Claims processing infrastructure, IT platform for remote agents… Healthcare: IT for patient records management, Payer IT platforms…

…and across industries…and across industries

Managing unmatched IT volume…

CONSOLIDATE physical infrastructure per defined transformation objectives

SIMPLIFY operations via reference architecture and standard implementation and management

Ongoing infrastructure optimization

VIRTUALIZE servers/applications for increased utilization and automation

Leverage SHARED infrastructure based on defined workload profiles

DYNAMIC delivery of capacity based on policy-based workload automation

CLOUD based provisioning for standardized workloads

Traditional IT services Emerging Tech. Models

…across the spectrum of technologies…

104,000 Intel Servers

62,000 Unix Servers

84,000 Terabytes of Storage

1,300,000 Calls per Month

2,700,000 Mailbox Instances

146,000 Database Instances

52,000 Middleware Instances

3,400 Business Applications

417,000 MIPS

•204,000 Open Systems

•100 Petabytes of Storage

•4.1 Million EUS Calls Per Month globally

•151,000 MIPS Managed globally


Agenda

1. Market trends


3.The path that lead us here4. The crux of the problem


6. An ask for help

6


We have the broadest and deepest talent in the outsourcing business working together to fulfill our client delivery commitments

India Bangalore Pune Delhi Gurgaon Hyderabad

Global

China Shenzhen Shanghai Dalian

Client

Regional

Regional

Global

North America

Boulder Dubuque East Fishkill Toronto

All follow uniform, best-practice service management processesAll follow uniform, best-practice service management processes

Latin America

Buenos Aires Hortolandia Sao Paulo

Central Europe Brno Székesfehérvár

Global

Service that can be standardized to achieve maximum savings

Ongoing operations

Monitoring

Development

Local

Service that needs to be delivered from the same country

Processing of sensitive data

Legal restrictions

Onsite

Service that requires a physical presence at the client location

Consulting

Front-end analysis

Regional

Service that needs to be delivered from the same continent

Similar time zone

Similar culture

Skills

LocalOnsite


Agenda

1. Market trends



4.The crux of the problem5. Mitigation through adjustments to

• Organization• Process • Tooling

6. An ask for help

8


Crux of the problem

9

How do you give high touch, high talent service from a fresher who is 7,315 miles* away?How do you give high touch, high talent service from a fresher who is 7,315 miles* away?

http://www.travelmath.com/flight-distance/from/New+York,+NY/to/Delhi,+India

And . . . If you think SLA management will get you there, you are doomed.And . . . If you think SLA management will get you there, you are doomed.


Observations from the field


Agenda

1. Market trends




5.Mitigation through adjustments to• Organization• Process • Tooling

6. An ask for help

11


We can dynamically create work groups/pools across the globe to best meet clients’ business needs

Technology Workload/FTE Skill set Location Regulations SLAs Tools Problem tickets Other

Global skills resources

1000+ pools ~ 50 types of pools by competency

(e.g., service line, component) Specialized pools: HIPPA, FDA, ITAR,

MDI

Organization


Intelligent dispatching processes enable greater responsiveness and routes work to the right skills and experience

Co-located work pools

Incoming demands

Problem tickets Service requests Change requests

Dispatcher

Segments demands by type and complexity

Swing depending

on load

Simplest tickets

Most complex tickets

Excellence Group comprised of

senior technical staff

Benefits of uniform processes

Every delivery center provides the same high quality services Best practices/problem fixes can be readily shared with all delivery centers If a local emergency disrupts a specific delivery center, work can be rapidly

rerouted to other delivery centers

Processes


IBM Data Warehouse/Reporting Engine:Bangalore

You will experience fewer incidents due to proactive application of our insight through knowledge management

Solution Coordination & Dissemination

Bangalore

Client

Processes – Defect Prevention Process (DPP)


Agenda

1. Market trends




5.Mitigation through adjustments to• Organization• Process • Tooling

6. An ask for help

15

Tooling:•Nivana: one set•Reality: 5x as many customers•Standard interfaces for interoperability

Tooling:•Nivana: one set•Reality: 5x as many customers•Standard interfaces for interoperability


Agenda

1. Market trends





6.An ask for help

16


DriversDrivers

Strong need for service management skills in a distributed delivery Strong need for service management skills in a distributed delivery

environmentenvironment

Approach – SMMIApproach – SMMI

Common assessment based on WW thought leadershipCommon assessment based on WW thought leadership

Definition of Future State based on best practicesDefinition of Future State based on best practices

Wave-based deployment approachWave-based deployment approach

17

Service Management Maturity Index – OverviewService Management Maturity Index – Overview


History Background – The JourneyHistory Background – The Journey

18


DimensionsDimensions

19

These dimensions are aligned with:These dimensions are aligned with: PMPPMP CHIPCHIP ITIL framework for Service ITIL framework for Service

Management MaturityManagement Maturity QA PMRQA PMR ISO-20000ISO-20000


Summary

1. Very real problems with service management in general

2. Offshore distances and differences exacerbate

3. SLA and other quantitative measures are the ante, but not the solution

• Nor are skills alone sufficient

4. The human element and indepth knowledge of the client are key• Standardization helps reduce the learning curve

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QUESTIONS?

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Documents

© 2010 IBM Corporation Real World Experiences of Running Global Services The Pain points associated with a Distributed, Multinational Delivery Model Jim