Real World Experiences of Running Global Services
The Pain points associated with a Distributed, Multinational Delivery Model
Jim Freeman
freemanj@us.ibm.com
© 2010 IBM Corporation
Agenda
1. Market trends
2. “Demographics” – the delivery landscape in IBM
3. The path that lead us here
4. The crux of the problem
5. Mitigation through adjustments to
• Organization
• Process
• Tooling
6. An ask for help
1
© 2011 IBM Corporation
Outsourcing value and delivery models are evolving to standardized,
global offerings
Market Dynamics
• Industry/technical expertise and innovation
are replacing cost as primary
differentiators
1999 - 2009
Customized offerings
Labor-based models
Full-scope outsourcing
Local labor sources
2
2
• Clients are moving to a multiple location
(virtualized) delivery model
• Emerging economies are growing fast with
expanded requirements for language and
culture
• Service providers are growing their
global presence and expanding their
offering portfolio
2009 - 2015
Standardized offerings
Asset-based services
Enhanced value outsourcing
Global delivery models
© 2011 IBM Corporation
IBM’s Delivery Centers
France
Portugal
Spain
Poland
UK
Czech Rep.
Ireland
Canada
Hungary
U.S.
Romania
Mexico
Venezuela
China
IBM Global Delivery
Peru
Vietnam
Brazil
Argentina
Philippines
India
Infrastructure Delivery Center
New Zealand
Application Services
South Africa
Managed Business Processing Services
Australia
Consistently managed across process, automation, tools and analytics
© 2011 IBM Corporation
IBM’s broad and deep experience in services provides the insights to drive quality and
productivity consistently and deliver client value
Managing unmatched IT volume…
…across the spectrum of technologies…
CLOUD based provisioning for standardized
workloads
§ 104,000 Intel Servers
•204,000
Open
Systems
Unix
Servers
§ 62,000
DYNAMIC delivery of capacity based on
policy-based workload automation
§ 84,000 Terabytes of Storage
Leverage SHARED infrastructure based on
defined workload profiles
•100 Petabytes
of Storage
§ 1,300,000 Calls per Month
VIRTUALIZE servers/applications for increased
utilization and automation
§ 2,700,000 Mailbox Instances
•4.1 Million
EUS
Calls
Per Month globally
Database
Instances
§ 146,000
§ 52,000 Middleware Instances
Business
Applications
•151,000
MIPS
Managed
globally
§ 3,400
§ 417,000 MIPS
CONSOLIDATE physical infrastructure per
defined transformation objectives
SIMPLIFY operations via reference architecture and
standard implementation and management
Traditional IT services
Ongoing infrastructure optimization
Emerging Tech. Models
…and across industries
 Finance: IT for trading floors, IT for core banking applications, ATM infrastructure…
 Consumer Products: IT for global supply chain, infrastructure for logistics management…
 Telecommunications: Customer service IT infrastructure for billing, help desk and order processing, IT
for new client services…
 Energy & Utilities: IT platform for consumer billing, automated meter management platforms, distribution
IT support…
 Insurance: Claims processing infrastructure, IT platform for remote agents…
 Healthcare: IT for patient records management, Payer IT platforms…
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© 2011 IBM Corporation
Agenda
1. Market trends
2. “Demographics” – the delivery landscape in IBM
3. The path that lead us here
4. The crux of the problem
5. Mitigation through adjustments to
• Organization
• Process
• Tooling
6. An ask for help
5
© 2011 IBM Corporation
Skills
We have the broadest and deepest talent in the outsourcing business working together to
fulfill our client delivery commitments
Local
Onsite
Regional
Global
 Service that requires a
physical presence at the
client location
 Service that needs to be
delivered from the same
country
 Service that needs to be
delivered from the same
continent
 Service that can be
standardized to achieve
maximum savings
 Consulting
 Processing of sensitive data
 Similar time zone
 Ongoing operations
 Front-end analysis
 Legal restrictions
 Similar culture
 Monitoring
 Development
Global
Client
Onsite
Local
North America




Boulder
Dubuque
East Fishkill
Toronto
Regional
Central Europe
China
 Brno
 Székesfehérvár
Global
 Shenzhen
 Shanghai
 Dalian
Regional
India
Latin
America
 Buenos Aires
 Hortolandia
 Sao Paulo





Bangalore
Pune
Delhi
Gurgaon
Hyderabad
All follow uniform, best-practice service management processes
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© 2011 IBM Corporation
Agenda
1. Market trends
2. “Demographics” – the delivery landscape in IBM
3. The path that lead us here
4. The crux of the problem
5. Mitigation through adjustments to
• Organization
• Process
• Tooling
6. An ask for help
7
© 2011 IBM Corporation
Crux of the problem
How do you give high touch, high talent service from
a fresher who is 7,315 miles* away?
And . . . If you think SLA management will get you
there, you are doomed.
http://www.travelmath.com/flight-distance/from/New+York,+NY/to/Delhi,+India
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© 2011 IBM Corporation
Observations from the field
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9
© 2011 IBM Corporation
Agenda
1. Market trends
2. “Demographics” – the delivery landscape in IBM
3. The path that lead us here
4. The crux of the problem
5. Mitigation through adjustments to
• Organization
• Process
• Tooling
6. An ask for help
10
© 2011 IBM Corporation
Organization
We can dynamically create work groups/pools across the globe to best
meet clients’ business needs
Pool creation
considerations









Technology
Workload/FTE
Skill set
Location
Regulations
SLAs
Tools
Problem tickets
Other
Account
Focal
Point
Account
Focal
Point
Client 2
Client 1
Global skills resources
 1000+ pools
 ~ 50 types of pools by competency
(e.g., service line, component)
 Specialized pools: HIPPA, FDA, ITAR,
MDI
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© 2011 IBM Corporation
Processes
Intelligent dispatching processes enable greater responsiveness and
routes work to the right skills and experience
Co-located work pools
Simplest
tickets
Incoming demands
 Problem tickets
 Service requests
 Change requests
Swing
depending
on load
Dispatcher
Segments demands by
type and complexity
Benefits of uniform
processes
12
Most complex
tickets
Excellence Group
comprised of senior
technical staff
 Every delivery center provides the same high quality services
 Best practices/problem fixes can be readily shared with all delivery centers
 If a local emergency disrupts a specific delivery center, work can be rapidly
rerouted to other delivery centers
© 2011 IBM Corporation
Processes – Defect Prevention Process (DPP)
You will experience fewer incidents due to proactive application of our
insight through knowledge management
Problem arises in a data
center in Bangalore
IBM Data Warehouse/
Reporting Engine:
Bangalore
Bangalore
A surge in
tickets is
recorded
Client
Root cause
analysis
Local Excellence team
identifies the problem
Develop &
Implement
solution
Applied fix
reduces ticket
levels
Solution
Coordination &
Dissemination
13
© 2011 IBM Corporation
Agenda
1. Market trends
2. “Demographics” – the delivery landscape in IBM
3. The path that lead us here
4. The crux of the problem Tooling:
• Nivana:
5. Mitigation through adjustments
to one set
• Organization
• Process
• Tooling
6. An ask for help
14
• Reality: 5x as many
customers
• Standard interfaces for
interoperability
© 2011 IBM Corporation
Agenda
1. Market trends
2. “Demographics” – the delivery landscape in IBM
3. The path that lead us here
4. The crux of the problem
5. Mitigation through adjustments to
• Organization
• Process
• Tooling
6. An ask for help
15
© 2011 IBM Corporation
Service Management Maturity Index – Overview
 Drivers
Strong need
for service management skills in a distributed delivery
environment
 Approach –
SMMI
 Common assessment
 Definition of Future
 Wave-based
16
based on WW thought leadership
State based on best practices
deployment approach
© 2011 IBM Corporation
17
A first version of ITIL's
matrix has been
defined:
A spreadsheet that
enables a rating have
been shared with a
couple of accounts.
Similar to the Service
Delivery Adherence
Check, answers are
chosen into multiplechoices questions and
then scores on the
Summary Sheet .
2011
Quarterly Service
Delivery Adherence
check:
Answers with a lower
maturity rating are
automatically flagged in
Amber or Red indicating
that an action should be
developed to address
that area.
2008
2006-2007
History Background – The Journey
A variety of existing
sources/standards such
as:
Global Process Services
PMP
CHIP
ITIL V3/Tools framework
standards for Maturity
QA PMR
ISO-20000
© 2011 IBM Corporation
Dimensions
 These





dimensions are aligned with:
PMP
CHIP
ITIL framework for Service
Management Maturity
QA PMR
ISO-20000
Culture
Technology
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Vision &
Steering
5
4
3
2
1
0
Process
People
© 2011 IBM Corporation
Summary
1. Very real problems with service management in general
2. Offshore distances and differences exacerbate
3. SLA and other quantitative measures are the ante, but not the
solution
• Nor are skills alone sufficient
4. The human element and indepth knowledge of the client are key
• Standardization helps reduce the learning curve
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© 2011 IBM Corporation
QUESTIONS?
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© 2011 IBM Corporation