1© 2006 Autodesk

Telecom Outsourcing, GITI Event

Roberto SigonaSr Director, WW IT Operations

2© 2006 Autodesk

Agenda

Autodesk Corporate Overview Roberto Sigona’s bio Sourcing strategy Biggest outsourcing deals Lessons learned Q&A

Appendix 1: Sample scorecard used with outsourcing partners Appendix 2: Evolution of trust and relationship with partners

3© 2006 Autodesk

Roberto SigonaSr director, WW IT Operations

4© 2006 Autodesk

The World’s Leading 2D and 3D Software Company

We are a Fortune 1000 company

100% of the Fortune 100 use our products

7 million registered users around the world

An unsurpassed partner network

More than 2,500 third-party developers

5© 2006 Autodesk

Infrastructure

Building

Manufacturing

Media & Entertainment

Industry Leadership

We are a global software leader that offers a

diversified portfolio of software tools and industry

solutions to help customers experience their

ideas before they are real:

Conceptual design

2D design and drafting

3D model-based design

Simulation, animation, and visualization

Collaboration and data management

6© 2006 Autodesk

Roberto Sigona’s brief Bio

Italian and Swiss national, born in Switzerland

Bachelor degree in Electronic/Electrotechnic Engineering

With Autodesk since 1991 Variety of roles within Customer Support

and Information Technology both in Switzerland and Headquarters (USA)

Currently Sr Director, WW IT Operations, responsibilities include: 150+ people in 40 countries, 110

sites supported $60M+ budget Datacenters and infrastructure WW Field staff, Desktop and Help Desk Telecom, Network and Security Site Manager for Autodesk

Development S.à.r.l in Neuchâtel

7© 2006 Autodesk

IT’s Sourcing strategy

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Drivers of Outsourcing

Increase IT Capabilities

Focus on Core Competencies

Cost Reduction and Control

Cash Needs/Asset Minimization

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Strategic Sourcing is a process rather than a series of activities

Focus on tasks

Function isolated

Reactive

Insular, static

Unit price based

Reliance on tendering

Adversarial supplier dealings

Suppliers as the enemy

Win/lose

Corrective measures

Gold plating or undefined standards

Lowest price bidder, price driven

Focus on process performance

Function integrated

Proactive

External focus, dynamic

Total cost framework

Diverse sourcing strategies

Creative collaboration, trust

Suppliers as a key resource

Win/win

Preventive measures

Fit for purpose

Best value bidder, value driven

Traditional Contracting/Purchasing Strategic Sourcing

Strategic Sourcing as a Process

10© 2006 Autodesk

Outsourced deals and lessons learned

11© 2006 Autodesk

BT/Infonet

Objectives/scope Single service provider for global data, voice, video network

3 year contract, $21M commitment Private, global MPLS Network Guaranteed service levels Consolidate 40+ providers

Highlights of the last 3 years Achieved expected benefits in service quality Relationship has improved over time Unclear lines of responsibilities for VoIP, quality issues

12© 2006 Autodesk

HCL

Objectives Hosting and management of critical enterprise applications

5 year contract, $58M commitment Leverage world class processes and economies of scale Consolidate business critical applications into one location on new

hardware Guaranteed service levels Business continuity within 24 hours Foundation for future services consolidation and staff augmentation

Highlights of Y1 implementation Smooth go-live and better than expected month one steady state Staff resistance Initial issues around right levels of skills on both sides Differences around sense of urgency, communication, project management

13© 2006 Autodesk

Typical Failure Points in IT Outsourcing

Underinvestment in selection and management process

Difficulties around adapting to change

Misalignment of client-vendor objectives, incentives

Unclear cost / performance baseline

14© 2006 Autodesk

Highlights of lessons learned

Initial groundwork a “must,” not nice to have Strategy first - define core competencies, know future expectations Trust takes time to build (see appendix) Contract is critical – get help

Clear SOW both for implementation and steady state

Good partner management = investments and resources Both sides must manage the relationship, not just the performance

Maintain alignment of strategic objectives and health of relationship through regular reviews

15© 2006 Autodesk

Quality Management

Clear and measurable SLA for both parties with penalties when missed

Monthly Operational Review (MOR)

Quarterly Management Review (QMR)

Benchmarking clause for contracts

© 2006 Autodesk

Thank you!

Questions?

© 2006 Autodesk

Appendix 1Scorecard used with Outsource partners

18© 2006 Autodesk

Scorecard - Introduction Scorecard built around 5 categories that incorporate our original objectives and SLAs:

Acct Mgmt Financial Mgmt Project Mgmt Operational Mgmt Strategic Development

Each category has several components (not shared in this review but shared prior to meeting)

Weightings assigned to each category and component within the category Based on current priorities; will change over time

Input from all key interface points and consolidated into averages Scorecard done by Autodesk and partner

19© 2006 Autodesk

ScorecardScorecard Summary

         

  Weighting Q1'06 Q2'06 Q3'06 Q4'06

Account Management 25%      

Financial Management 15%      

Project Management 25%      

Operations Management 30%      

Strategic Development 5%      

Overall 100%      

Key    

Green – above expectations 3.75 5.00    

Yellow – approaching or meets requirements 2.75 3.74    

Red – inconsistent performance and/or does not meet expectations 0.00 2.74    

Example

© 2006 Autodesk

Appendix 2Evolution of trust and relationship with partners

21© 2006 Autodesk

Managing Trust and Control

5

4

3

2

1

0

- 1

- 2

- 3

- 4

- 5

“Co-management” established

“Co-management” initiated

Seek Best Practice

Ad Hoc & Random

You & Me

You v. Me

Us v. Them

Red Team v. Blue Team

War

Exit

Management Dynamics Trust Dynamics

Organizational Trust

Group Trust

Individual Trust

Individual Distrust

Group Distrust

Organizational Distrust

Most successful outsourcing relationships have a trust rating of higher than 1.5

22© 2006 Autodesk