IT Service management

Incident and Problem Resolution Components of Service Management Service Desk: Handle L1 calls by Phone, Email, Chat Monitoring : Some command centres are contracted to monitor servers (Physical / Virtual) on a 24/7 basis for availability. Any outages are then reported in the service desk tool Reporting : Customers are provided with online reporting tool that shows data on Availability, Resolution time, Ticket violations Incident and problem management: Based on agreed SLA, service desk needs to address incidents, service requests, problem tickets in a proper manner and communicate to users and management accordingly. Quality standards: ITIL, Six Sigma, LSS, ISO 20000 are some of the standards implemented across service desk / command centres Components Service Desk Monitoring Reporting Incident and Problem Resolution Quality Standards

Why Service Management The Service Management Industry in India is growing at the rate of 35 – 40% Year on Year In 2003 the IT spend was 3 Billion USD, 11.3 by 2010 it was 11 Billion USD and by 2014 it stands at about 20 Billion USD. Number of people working in the service management sector stands at over 1 million resources across India. Number of companies with service management setups in India is close to 1000. The savings companies get by implementing service management is 3-5% cost reduction in cost and productivity increase by 3-5%

Phases of Benefits Short Term Regular improvement initiatives implemented like Resource Cross skilling Shift Left Benefits Limited One time Expectations from Viva Access to multiple systems Result – Immediate Cost reduction by xx% (one time) Medium Term Technology consolidation Consolidation of applications based on Technology Global Support with common technical resources Automated tools Short term Common set of SLA’s Common Contracts for all vendors Common tools Common Quality standards Common Knowledge management tools Result – Impact within 3- 6 months. Cost reduction by XX% within 6 months Long Term Functional Consolidation Applications with same functionality but different technologies to be consolidated Integrated Applications list Common SME’s Substantial Long term Common applications used by all regions Consolidation of vendors based on functionality Result – Impact within 6 – 9 months. Cost reduction by XX% within 9 months %age cost reduction in year 2 and %age cost reduction in year 3 For Tech Mahindra to move to a strategic role, it is important for Viva to provide Tech Mahindra with User Access to multiple systems / environments Use Common Tools and Common processes Common Knowledge management databases. With the implementation of these initiatives by Viva, Tech M will be in a better position to deliver more value to the long standing engagement.

Recommended engagement model? Insourced Model In this model, the customer will manage and run the Managed Services Advantages Full control with Viva Better reaction time No fear of loss of Information Challenges Long Learning Curve MS is not core business for Viva Extra cost to manage and maintain (resources, attrition) Time and Material Contract In this model, Viva will get into a T&M contract with one or more vendors Advantage Customers only pay for the effort spent Vendors tend to deliver slower because more time means more money Vendors tend to over estimate, over bill. Service based contract The customer signs up for Managed Services based on the service catalog Customer gets to choose the services they want Pay only for the services selected One of industry’s best practices Vendor needs to develop expertise in many service areas Cost optimization across services is tough

Different Pricing models Monitoring only Provide N/W monitoring and alert services Application and OS Patch management, Anti virus updates, disk optimization and regular backups may be on fixed price rest or the mediation (through monitoring) on T&M Unit pricing - Per Device / per Ticket / Per Call / Per user pricing MSP’s charge per device (Network, Server, desktop) being supported Some MSPs charge customers based on the number of tickets / calls received. This may be charged on a slab basis Volume basis (Annually) – First 5000 tickets, 5000 – 10000, 10000 – 15000, > 15000 MSP’s charge per User base to support. This type of pricing is generally in slabs 1- 50 users, 51 – 100, 100 – 200 users, > 200 users etc Combination Pricing Could also be a combination of devices and users, devices, users, tickets / calls The contract can be for 5 servers, 50 desktops and 75 users The contract can be for 10 servers, 30 desktops, 10000 tickets / calls per annum etc. Service based / Tiered Model One of the popular models among MSP’s. Here the customer selects the number of services he wants support for based on the company’s service catalog The MSP bundles package of services would look like Bronze – Basic Phone, service desk (L1), remote support, patch management, virus support Silver – Bronze + L2 + L3 Gold – Silver + 24/7 emergency support (on call and onsite)

Some typical IT costs for Managed Services Type of service Costs Remarks Network Management ~$275/month per company 4 servers, 25 workstations = $2,520 / month or $30,240 Server Management Between $165 and $250/month per server Desktop Management $ 35 – 50/month per desktop First Level Resolution Between 25 and 60% tickets Tickets that should be closed in L1. Average costs in each level of support Level 1 (Service desk) – 22$ Level 2 (Desktop Support) – 62$ Level 3 – (Apps, N/w, NOC etc) – 85$ Field Support - 196$ Total IT cost is generally between 3 – 8 % of total turnover of a company Managed Services cost is about 15 – 25% of total IT costs and about 60 – 70% of Opex cost Usually Cost / productivity benefits passed on is between 3 – 10 % across a 3 year period in a phased manner

Benefit Realization We enable clients unlock value from support functions Information Capabilities Processes and systems Culture Technology Organization structure Reduced operational costs Effective cost structures Redirect funds for new development Cost Quality Improved customer & user satisfaction Better performance of service delivery Improved reliability and consistency Integrate process with business goals Increased business flexibility & agility Competitive advantage Faster and effective service delivery Faster response and issue resolution Accelerated change execution Speed Value Sustained higher value Value creation Lower Value Business oriented Service oriented Ineffective processes and practices Transform IT Reactive Proactive Predictive Speed of execution Speed of changes Speed of response

Measurement of such products Whereas ISO 20000 emphasises on Why ISO 20000 ? ISO 9001:2008 – Salient Features ISO/IEC 20000:2011 – Salient Features ISO 9001 covers generic points that look at the well being of an organization in terms of Policies, Resource Management Products and Measurement of such products Whereas ISO 20000 emphasises on Designing of new or changed services Service Delivery, Service Level Management Continuity and Availability Management Capacity Management Budgeting and Accounting Information Security Management Business Relationship Management Supplier Management. Incident and Service Request Management Problem Management Configuration Management Release and Deployment Management All the above mentioned topics are part of ITIL and ISO 20000 and are needed to manage and maintain a good service desk. Hence Tech Mahindra recommends Saudi Telecom Company to implement ITIL framework and certify for ISO / IEC 20000 standard.