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Presentation on theme: "This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner."— Presentation transcript:

1 This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other authorised recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates. © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Benchmarking: Gartner Sourcing Benchmark for Cloud-Based Services Gartner G-Cloud Service Definition For further information on Gartner support for Cloud initiatives visit:

2 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 1 Service Description Gartner will independently assess the price competitiveness of the client’s Cloud outsourcing service ensuring client Senior Executives have an accurate picture of how charges compare by: ■Gaining a detailed understanding of the services that have been/will be contracted; scope, scale, complexity and commercial specifics such as length of contract and the service credit/debit regime. ■Selecting “best fit” comparators from our database of outsourced contracts. ■Adjusting (normalising) these comparators to reflect the specifics of the contract that is being benchmarked. ■Producing a management report that clearly details how charges compare against peer contracts. Price ■Gartner will bill a firm fixed price of £60,000 per delivery area excl. VAT, incl. all expenses for this service. Key Deliverables ■A management report: –Price comparison by delivery area – service desk, end-user computing, server operations, mainframe, storage area networks, voice networks, data networks, applications. ■Electronic copies of any supporting analyses, research, frameworks, and other relevant work products. ■Final presentation to executive stakeholders. Key Benefits ■Establish a framework to capture internal cost structures and rationalise various service delivery structures and external markets, from service, service levels and cost/price perspectives. ■Understand fair market pricing for outsourced Cloud services. ■Get insight into sourcing opportunities the ICT organisation can leverage. ■Utilise a proven measurement framework based on interactions with a majority of the Global 500. Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

3 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 2 Full List of Deliverables ■Project Plan — following Project Initiation. To cover roles and responsibilities, business stakeholders with an interest, client ICT and Gartner point of contact, and timescales for the review ■Workshop 1 – Contract Profiling — to assist client with data collection, using client schedules of pricing and contracts which detail service pricing for external contracts. In addition, as applicable, any project level documentation which pertains to this review, to use as inputs ■Summary of Contract Profile — A description of the contracted services for sign-off ■Workshop 2 - Peer Selection — Gartner will consider project/service complexity and revert with a summary of potential peers, and complexity criteria for discussion with client ■Workshop 3 – Peer Normalisation — Gartner will provide a summary of the normalisations to be applied to each of the peer contracts for sign-off ■Report 1 — Gartner analysis of market positioning. Includes evaluation of market range, analysis of any pricing model/ mechanism made available ■Report 2 — based on feedback from client organisation, Gartner will refine analysis for an ICT, or business audience Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

4 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 3 Schedule ■Through use of workshops and offsite work to achieve a benchmark comparison, with conclusions and recommendations, within 12 weeks Benefits ■Establish a framework to capture internal cost structures and rationalise various service delivery structures and external markets, from service, service levels and cost/price perspectives ■Understand fair market pricing for outsourced cloud services ■Get insight into sourcing opportunities the IT organisation can leverage ■Utilise a proven measurement framework based on interactions with a majority of the Global 500 Approach ■Project initiation - An on-site kick-off meeting will be held.The project plan will be issued following the meeting ■Contract profiling- Gartner will gain a very detailed understanding of the contracted services. Workshop one, Contract Profiling, will be held within this phase and the Summary of Contract Profiles spreadsheet will be signed off ■Peer selection – Gartner will select “best fit” comparators from our database. These peers will be discussed at Workshop 2, Peer Selection, and a summary will be issued in.xlsx format ■Peer normalisation - Gartner will adjust (normalise) peer comparators to reflect the specifics of the contract that is being benchmarked. The Peer Normalisation spreadsheet will be issued for sign off ■Analysis and results – Gartner will produce Report 1 and, following any feedback, Report 2. This report will clearly detail how charges compare against peer contracts Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

5 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 4 Any Additional Information ■There is no additional information related to this service. Prerequisites ■There are no prerequisites to this service. Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

6 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 5 Changes to Scope ■The scope of the engagement is defined herein. All client requests for changes must be set forth and explained in writing. As soon as practicable, Gartner shall advise of the cost/schedule implications of requested changes and any other necessary details to allow both parties to decide whether to proceed with the requested changes. The parties shall agree in writing upon any requested changes prior to Gartner commencing work. ■As used herein, “changes” are defined as work activities or work products not originally planned for or specifically defined by this service definition. Assumptions ■The client will designate a project manager as primary point of contact who will work closely with Gartner as needed and will: (a) approve priorities/task plans/schedules; (b) facilitate scheduling of interviews with personnel; (c) notify Gartner in writing of project issues and assist in their resolution. ■Client will review and approve documents within five business days. If no formal approval/rejection is received within that time, the deliverable is considered accepted. ■Client personnel will be made available per the schedule agreed in the kickoff meeting. ■The benchmark data is reasonably available via workshops and telephone support ■With the exception of meetings and workshops, Gartner work will be performed at Gartner locations. ■Offices, phones, printing/copying and Internet access will be available to Gartner at client locations. ■Gartner will use Microsoft Office production of documentation ■Any requests for additional information and/or deliverables(beyond the details described in this service definition) that are made will be considered a change in scope and will be handled accordingly (see Changes to Scope). This does not apply to clarification questions. Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

7 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 6 Backup Restore and Disaster Recovery ■The Gartner service under discussion does not require Gartner to manage or store any critical client data on the client’s behalf. Therefore, as there is no risk to the client and no break in service that will affect the client experience, there is policy required. Information Assurance ■Gartner possesses analysts and consultants with various security clearances, or we will acquire those clearances as the client demands. ■Gartner associates are bound by very specific rules around client confidentiality and security given that our clients reveal to us their greatest challenges and difficulties in order that we can help and support them most effectively. ■Gartner’s benchmarks are predicated on the confidentiality of its data sources, with only outline information given as to the nature of the data points contained within its databases Data Restoration ■This does not apply: all data retained is anonymized before use with other clients; no client is able to access this data directly and therefore there is no data restoration process related to this service. Service Migration ■There is no need for a Service Migration plan given the nature of the service under discussion. The client is able to complete and conclude the service without any ongoing process being required for transfer of service or information to an alternative provider or successor. Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

8 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 7 Offboarding ■Does not apply. Gartner’s process does not rely on any individual’s knowledge of the client IT organization, cost base. There is some dependency on accessing the correct member of client staff with whom to discuss key areas of data collection. Gartner’s recommendation is that this be handled during the project initiation phase. ■Gartner retains responsibility for agreeing any data collected with the client sponsor/ project manager Onboarding ■Does not apply. Gartner’s process involves guiding the client staff through the baseline activities, either through workshop or through structured interview. ■Gartner retains responsibility for agreeing any data collected with the client sponsor/ project manager Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

9 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 8 Ordering and Invoicing Process ■Gartner will bill for 50% of the professional fees at contract signing and 50% upon delivery of the management report ■All invoices are payable net 30 days from date of invoice. While Gartner does not itemise billing for professional services, Gartner agrees and will comply with any reasonable requests for records substantiating our invoices. Pricing ■Gartner will bill a firm fixed price of £60,000 per delivery area excl. VAT, incl. all expenses, e.g.: –£60,000, ex. VAT for service desk –£60,000, ex. VAT for end-user computing –£60,000, ex. VAT for server operations –£60,000, ex. VAT for mainframe –£60,000, ex. VAT for storage area networks –£60,000, ex. VAT for voice networks –£60,000, ex. VAT for data networks –£60,000, ex. VAT for applications support Termination Terms (by Consumer / by the Supplier) ■Services may be terminated without cause by the Customer on at least thirty (30) Working Days’ notice. Financial Recompense Model ■In the event that a Service does not meet the specifications set out in the applicable Service Description, the breach will be handled in accordance with the Liability and Termination terms set out in the Call-Off Agreement. Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

10 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 9 Service Management ■Gartner Advisory is focused on the delivery of high quality and timely advice and guidance to its client base, and has a number of quality gates which it has built into its products: ■Gartner’s benchmarking process is UKAS ISO9001 accredited and includes the completion of key project governance artefacts such as a project initiation document, project plan, progress review calls, and Quality Assurance by the relevant Managing Partner for Government ■Gartner Consulting recommendations are produced independently without the influence, review or approval of outside investors, shareholders or directors. For further information on the independence and integrity of Gartner Research, see “Guiding Principles on Independence and Objectivity” on our Web site, or contact the Office of the Ombudsman at or Guiding Principles on Independence and Service Levels ■Not applicable but all and any deliverables will be subject to review and commentary by client ■Final schedule payment will depend upon client acceptance of the work Service Constraints Place of Performance ■ With the exception of meetings and workshops defined, Gartner work will be performed at Gartner locations. ■ Office space will be made available to Gartner staff at client locations for on­site project time Deliverables and Changes to Scope ■ Any requests for additional information (beyond the details described in the tasks above) that are made by client will be considered a change in scope for this engagement and will be handled accordingly (see Changes to Scope). ■All deliverables will be in English and developed using Microsoft products (for example, Project, Excel, Word and PowerPoint). Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services

11 © 2013 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. 10 Technical Requirements ■Client may be asked to provide a projector, to assist with the discussion at the workshops ■No other technical requirements exist Consumer Responsibilities Data Collection ■ Client will provide the necessary support to all data collection activities and workshops ■ All data collection and interviews/workshops will take place via telephone or in person at client location as agreed to at the project initiation. Trial Service ■Gartner does not offer a trial service option in relation to this service. Training ■No training is required for this service Gartner Service Definition — Sourcing Benchmark for Cloud-Based Services


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