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1© 2006 Autodesk Telecom Outsourcing, GITI Event Roberto Sigona Sr 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 Sigona Sr 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
8© 2006 Autodesk Drivers of Outsourcing Increase IT Capabilities Focus on Core Competencies Cost Reduction and Control Cash Needs/Asset Minimization
9© 2006 Autodesk 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 1 Scorecard 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 Scorecard Scorecard Summary Weighting Q1'06Q2'06Q3'06Q4'06 Account Management25% Financial Management15% Project Management25% Operations Management30% Strategic Development5% Overall 100% Key Green – above expectations Yellow – approaching or meets requirements Red – inconsistent performance and/or does not meet expectations Example
© 2006 Autodesk Appendix 2 Evolution of trust and relationship with partners
21© 2006 Autodesk Managing Trust and Control “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 DynamicsTrust 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
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