UNLOCKING BUSINESS VALUE FROM SECOND GENERATION OUTSOURCING DEALS
In today s rapidly evolving IT environment, trends like workplace mobility, IT consumerization and new technologies like Cloud, are driving a significant shift in the way IT is being consumed and delivered. We believe 2013 will see more CIOs and IT execs completely rethinking the traditional outsourcing relationship, starting with the contract. More deals will be struck that allow for contingencies and variable conditions. And there will be more transparency and alignment between the service provider and the customer. The five-year fixed, black-box contract will be an artifact of the past. This case study is from the series, The End of Traditional Outsourcing. The series is HCL s attempt to showcase North America s biggest second generation outsourcers in new age engagements, that scope for future technology and innovations that improve business performance THIS IS THE STORY OF a global leader in embedded processing solutions, providing industry-leading products that are advancing the automotive, consumer, industrial and networking markets.
THE CUSTOMER S OUTSOURCING HISTORY More than a decade-long history of leveraging global IT partners 2004: Selected one the world s largest infrastructure and IT services provider for a global strategic outsourcing agreement. Contract duration: 8 years. But The outsourcing engagement came with its own set of problems. Lack of control Business agility THEY CAME WITH RESEARCH FOR PROPOSAL (RFP) TO ACHIEVE FOLLOWING BUSINESS OBJECTIVES: 1 Optimize Cost: Secure competitive position through tighter governance and prioritization of IT services at the right price. 2 Flexibility: Utilize IT as a competitive advantage by leveraging changing market demands and driving business growth strategy. 3 Innovation: Access and utilize new and next generation technology that provides unimpaired consistency and reliability for market penetration. 4 Speed: Gain ability to better utilize and leverage technology to quickly and effectively respond to business needs. 5 Quality: Redefine Service Level Agreements that will contribute to increased accuracy, support and diligence in Protecting the Brand 6 Customer Service: Maintain highest levels of service. Contractual flexibility in the outsourcing relationship Meant less than optimum value for the business The company realized that the outsourcing contract with the world s largest infrastructure and IT services provider was not helping them meet their business objectives & decided that in order to enable business agility they needed to transform their sourcing strategies.
ENTER HCL WITH TOP 4 REASONS WHY THE CUSTOMER CHOSE HCL Experience Agility Culture of Value Creation Clear Transition Plan Global Delivery Capability Culture-Fit 1. Over 250+ Global customers including 20 Fortune 100 customers trust HCL with mission critical infrastructure. 2. Rated "Leader" three times in a row in Gartner Magic Quadrant Data Center Outsourcing and Infrastructure Utility Services, North America, Leaders ranking by all Forrester Wave Global Workplace Services Reports globally. 3. 98% renewals till date shows the maturity and acceptance of HCL s value proposition. 4. We pride in the fact that 40% of our customers have moved over from incumbent multinationals trusting us with mission critical infrastructure. 1. Determined to service customers without nickel and diming on change requests or entangling the customer in other contractual quagmires. 2. Transparency and flexibility to the customer across all aspects of the engagement from pricing to SLA to program structure to people since we believe in building trust through transparent and flexible actions and interactions. 1. Recognized Thought Leadership: Launched services 2 years ahead of the market: Data center Partnerships, HCL MyCloud Platform, Gold Standard etc. 2. Employee First Customer Second philosophy leading higher customer CSAT and value creation leading to higher retention of employees in the phase of rapid growth 3. We prime our customers to expect thought leadership from over 21,000 of our employees and expect them to be proactive and aligned to the customer s business. HCL s understanding of potential risks and challenges and well defined mitigation plans for transition Critical Insights for IT To Business Alignment HCL s ability to quickly demonstrate an understanding of customer s environment and to identify key transformational opportunities through their experience and extensive knowledge. HCL s expertise and proven methodology in managing the breadth of applications and infrastructure related components. Clear Transition Plan Global Delivery Capability Culture-fit Transparency, flexibility and genuine desire to make the relationship work. Critical Insights For It To Business Alignment
Transition Challenge As part of the engagement, HCL will be the exclusive Infrastructure partner for the customer, managing their end to end Infrastructure including 19,000 employees across 80 locations in 25+ countries, 15,000+ Desktops / Laptops, 1000+ Servers, 350 TB of Storage and 1600+ Network Device. Major complexities in the transition program included: Transition required to be completed within 4 months. Incumbent very slow in releasing information. Asia site locations had very specific technical support needs and local language support needs. Business expectations of quick turnaround while services were badly broken. Value Delivered The transition was completed on-time, on-schedule, on-budget and without any disruption to the business. The customer now enjoys: Greater degree of flexibility, control and cost optimization. Flexible operating model based on HCL co-sourcing philosophy. Centralized and consolidated IT Services driven by tools and process. Enhanced desk-side support services. www.hcltech.com