Out ‐Sourcing 2.0 The Next‐Generation of 

Outsourcing

Calin RanguDirector General

11.02.2009

Bucharest

Agenda1. Why Next-Generation Outsourcing

2. Introduction of IIRUC Service

3. IT doesn‘t matter – does it?1. Learnings from History and from

Present2. IT-Industrialization

4. The Evolution of Outsourcing Examples of international experience

1. Insurance2. Healthcare3. IT-Service Management

Why we see Next-Generation Outsourcing

An urgent need to out-source to professional companies

IT will become commodity.

Business will focus more and more on „WHAT“ (process-support) IT delivers instead of „HOW“ (technology)

Cost-centric IT-outsourcing will be displaced by value- and innovation-based outsourcingAnd...the CRISE...

History and Financials

History1968: the original IIRUC company was established1991: IIRUC-SA was registered as a shareholding company out of the original IIRUC company2004: IIRUC SERVICE SA was established, based on the traditional IIRUC SA company2008 (February): CEE Technologies Austria achieved the sole control over IIRUC SERVICE SA2008 (October): Approval of the Master Plan for the company development2008 (October): Opening new Headquarter with a Data Center facility and a central Call Center dept.

Financials2007 Turnover: 5,8 Mio. €2008 Estimated Turnover: 7,8 Mio. €2009 Forecasted Turnover 15 Mio. €

IT Operations

Outsourcing

Security Services

Software Solutions

Output  Services

Client  Management

Future pass: developing in RO of the international offered IT Services

3.000 Server

20.000 Corporate Clients

40.000 km Network

520 TB Storage

1 Billion Transactions p.a.

300 Mio. printed Pages p.a.

Several Data Centers

In Romania: Unique Competitive Advantages (w/o subcontractors for Client Management)

National coverage for Client Management services

Maximum 2 hour for reaching the client anywhere over RomaniaBetween 4 and 12 hours solving time, depending on agreed SLA-sRepairing Centers facilities with skilled employees

Just-in-time answer - thanks to the Call Center implementation

SaaS solutions: ticketing and incident management, instant learning and team rooms solutions

Prime-Contractor capabilities based on extended partnerships, HW/SW/networking equipment delivery

Data Center Hosting services

Infrastructure:350 employees 110 cars fleet8 areas covering 58 nationwide locations47 nationwide stores50 service laboratories1 national training centerover 25,000 customersover 70,000 equipments in serviceBucharest headquarteredRunning international projects (Ukraina)Multiple certifications

Agenda1. Why Next-Generation Outsourcing

2. Introduction of IIRUC Service

3. IT doesn‘t matter – does it?1. Learnings from History2. IT-Industrialization

4. The Evolution of Outsourcing1. Insurance2. Healthcare3. IT-Service Management

What History showed us …

In early 1900s, most factories had private power generators because first utilities were to small and unreliable to supply power to manufacturers

0%

20%

40%

60%

80%

100%

1910 1920 1930

utility supply private supply

Technological advances made central supply possible!

What Existing situation showed us …In 2009 a strong financial crise determine:

Strong decrease of international and national businessThe lack of liquidityReduced profitabilityThe shrinkage of credit

What means:Decrease costsIncrease efficiencyReduced number of employeeInvestments moved in services

Business efficiency move companies to central supply!

IT Service Market

Software as a Service (SaaS) – ASP Reloaded?

Transforming traditional IT Delivery models into „IT 2.0“IT Service Models will be one of the biggest challenges for IT Service Providers in the upcoming years …

Agenda1. Why Next-Generation Outsourcing

2. Introduction of IIRUC Service

3. IT doesn‘t matter – does it?1. Learnings from History2. IT-Industrialization 3. IT out of the Socket

4. The Evolution of Outsourcing 1. IT-Sourcing Dimensions2. Examples of R-IT

1. Insurance2. Healthcare3. IT-Service Management

The Evolution of OutsourcingCore & non-core

Business Processesalong with IT retainedwithin the Enterprise

Drivers1. IT Outsourcing2. (ASP-)Hosting

Core & non-coreBusiness Processesretained within the

Enterprise

Drivers1. SaaS2. BPO

Core Business Processes

retained within the Enterprise

Core Business Processes

Non-Core Business Processes

IT Delivery, Support & Management

Core Business Processes

Non-Core Business Processes

IT Delivery, Support & Management

Core Business Processes

Non-Core Business Processes

IT Delivery, Support & Management

Enterprise Boundary

IT Services and Outsourcing – International Example

Project: Centralized IT Services for 28 Austrian hospitals Challenges: Consolidation of the infrastructure for 28 hospitals with different IT services (Novell, Windows NT, etc..), including standardization of central und peripheral infrastructure services (mailing, firewall, proxy, antivirus, directory service, system management)Implementation of central support (Help Desk, Trouble Ticket)Implementation of SAP More than 10.000 user, timeframe 1 year for central services, rollout to hospitals 1 additional yearTotal approx. 350 server to be designed, implemented and operated at two datacenter locations (cold standby)Project management: project delivered in time & budget

Outsourcing and Client Management –International Example

Project: IT outsourcing for a leading insurance companyChallenge: complete take over of all IT services at an appointed dateonline take over of Client Management (remote management, software management, asset management) and help desk on an unfamiliar platformconsolidation of central and peripheral IT servicesincluding system management, backup, etc.334 server locations, 5.000 clients (co-managed with a partner), 160 telephone systems, 5 TB storage capacity, 14000 active components, output servicesStandardization to standards and amendment of standards to ease IT service process and reduce costsTake over of IT employees

IIRUC Service ‐ From a SaaS‐User to a SaaS‐Provider

Service processes: clear, transparent documentation

Integrated data‐flow between customers and IIRUC Service

ITIL compliant documentation of all IT‐SM processes

Consistent documentation of all incidents 

Multi‐client capability 

Improved value proposition fornew customer projects

Thank you for your attention!

SC IIRUC SERVICE SA

Thank you for your attention!