www.pwc.com IT – Towards User Defined Services Current Scenario Current industry trends suggest that the evolution of IT services will follow the path of utilities. The utility model implies that customers can flexibly adapt service delivery to their current demand… Gartner Dataquest, for instance, identifies “… a fundamental shift in services delivery to… … mass-customized solutions” PwC 2 Current Scenario… Without standardization, however, there will be no viable business model for these service offerings. Yet the demise of first generation service models of application service providers (ASP) indicates that fully standardized services leave many customer requirements unfilled. Thus it is critical for demand-oriented service offerings to balance standardization and individualization of service delivery. Standardization Individualization IT Service PwC 3 User defined IT Services – Emerging Technologies Thus the advent of Emerging Technologies like Cloud Computing , SaaS and Platform BPO… Movement from Capex to Opex Revenue based on consumption/transaction On demand availability They address the growing needs of user defined IT service features On demand scalability Reduced complexity Improved agility Global capability Platform for innovation Reduced time to market Business continuity during disasters PwC 4 Cloud Computing Cloud Computing – Is it the rainmaker? Cloud Computing is… CII-PwC Survey results Among IT users – increased flexibility, lower implementation time, easier maintenance and lower TCO stand as the primary reasons for adopting cloud. 67% of the users want to adopt infrastructure as a Service (IaaS), followed by Software as a Service (SaaS) at 50% and Platform as a Service (PaaS) PwC “An approach to consume technology in a pay-as-you-go model where consumers only pay for what they use.” Cloud Computing Services offered 1. Infrastructure as a service (IaaS) 2. Platform as a service (PaaS) 3. Software as a service (SaaS) Key elements of Cloud Computing Speed, revenue based on consumption, clearly defined services managed to appropriate service levels, on demand availability and scalability, location independence, complexity hidden from view 5 Cloud Computing… Cloud-oriented environment enables the following: Efficiency – through automation, which becomes essential to handle the scale of operations that can be supported Flexibility – through the ability to configure and provision systems and resources on demand, effectively scaling systems up or down as needed. Control IT costs – by eliminating the need to over-buy and over-provision IT resources far ahead of demand, relying instead on an on-demand pay-for-use only when you use it model and virtualisation of shared computing resources Scalability – enables organisations to scale resources up or down as needed. Extensibility – through hybrid clouds, organisations can extend the scalability of their private cloud temporarily through linkages to public clouds based on pay-per-use model Cloud Computing Success Stories GE – Global procurement hosting 500k suppliers and 100k users in six languages on SaaS platform from Aravo to manage $55B/year in spend Bechtel – Reduced infrastructure cost by 30% in part by achieving 70% server utilisation. Washington DC – Google Apps used by 38k employees reducing costs to $50/user per year for email, calendaring, documents, spreadsheets, wikis and instant messaging Eli Lilly – Using Amazon web services can deploy a new server in 3 minutes versus 50 days and a 64-node Linux cluster in 5 minutes versus 100 day PwC 6 Platform BPO Platform BPO Model – Poised to address the changing landscape of outsourcing… Platform BPO is… “a technology-integrated BPO that provides a complete business solution by packaging a technology platform with a domain application.” Shared Service Platform As per PwC-CII survey, about 34% of IT users are planning to avail platform BPO services and they intend to avail them for benefits like operational efficiency and process standardisation – thereby better quality. PwC - Integrated offering - Powered by industry best business management solutions Reduced Total Cost of Ownership (TCO) - Shared Services Outsourcing model - Client specific customisations Platform BPO Industry best practices - Pre-configured platform - Reusable industry frameworks - Defined processes Move from Capex to Opex - Pay-by-volume (transaction) pricing - Ease of scalability - Optimal utlisation of resources 7 Thank you Standardization Individualization IT Service debdas.sen@in.pwc.com © 2011 PricewaterhouseCoopers. All rights reserved. “PricewaterhouseCoopers”, a registered trademark, refers to PricewaterhouseCoopers Private Limited (a limited company in India) or, as the context requires, other member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. 8