transforming accenture’s it while reducing...

Transforming Accenture’s IT While Reducing CostRobert E. Kress, COO, Internal ITMay 2011

Copyright © 2011 Accenture All Rights Reserved. 1

Accenture:215,000 Employees$21.6 Billion in Revenues

22

Copyright © 2011 Accenture All Rights Reserved.

Quick Facts about Accenture Internal IT

Hardware and Network• 200,000+ workstations deployed • 6,013 devices monitored• 4 372 servers managed

Collaboration• 208,000 e-mail accounts• 5,400,000 e-mail messages per day

• 27 000 000 spam messages blocked4,372 servers managed• 15,050 megabytes network bandwidth

managedWebsites

• 44 000 unique visitors to Accenture

• 27,000,000 spam messages blocked • 4,500 Telepresence hours per month• 11,000 Sharepoint sites• 65,000 mobile devices

(iPhone/Blackberry/Windows)• 44,000 unique visitors to Accenture Portal per day

• 27,000 unique visitors to accenture.com per day

• 42,000 unique search queries per day

(iPhone/Blackberry/Windows)• 45,000,000 audio conferencing minutes

per monthSupport

1 283 298 l d i id t42,000 unique search queries per dayApplications

• 267 global applications• 255 local applications supported

Single instance global SAP ERP

• 1,283,298 resolved incidents per year through help desk, self-service, web chat, local support

• 1,265,158 self-service contacts

3

• Single instance global SAP ERP


2011

Before and After

200175,000

2011215,000Employees

$11.44 Billion $21.6 BillionRevenue

Baseline

67%

Down 22%

D 59%

92%IT Spend in $’s

IT Spend as % of Revenue

% of Satisfied Sponsors

B li

0

Down 59%

2,900

IT Spend as % of Revenue

Sourced IT StaffBaseline IT Spend per person Down 69%

Baseline

600

Multiple

267

One

Global Applications

Technology Platforms

Local Applications 2551,500

Multiple

Not Measured

One

124%

Technology Platforms

Benefits Realized

4Copyright © 2011 Accenture All Rights Reserved.

Key Actions to Reduce IT Cost

• Running IT Like a Business • Centralize, Standardize, Consolidate• Sourcing Strategy• Application Rationalization

P tf li M t• Portfolio Management• Data Center Consolidation and Virtualization• Network Transformation• Network Transformation• Process Re-engineering• Supplier and Contract Managementpp g


Accenture Runs IT as a Business

• IT Strategy

• IT GovernanceThe Foundation

• IT Governance

• Managed ServicesManaged Services

• Performance Measurement & Communications

Provides the operating model and environment for implementing improvements


for implementing improvements

Accenture IT Strategy

• Strong, central IT governance

• IT run as a business based on a managed services gapproach

• Workforce strategy focused on variable resources and low cost locations

• Consolidated, standardized, and centralized operations

• Strong IT performance measurement processes


Using a Managed Services approach puts many of the decisions in our customers’many of the decisions in our customers’ hands

– Provide a standard, but flexible, menu of IT products and services to meet the business requirements of our customers at a market competitive costp

– Provide a clear understanding of where costs are being generated / allocated

– Be accountable for product and service commitments

– Make it easy for customers to work with internal IT

– Charge for products and services consumed, where it makes business sense


Managed Services:Tailoring Choices to the Business

IT Products and Services CatalogCommunications• Network Connectivity• Remote Access• Arranged Services - Communications

IT Products and Services Catalog

Unified Communications and Collaboration• Unified Messaging (includes Email)• Collaboration

Technology Support• Self Service (eSupport)• Service Desk• Local Support

Arranged Services Communications• Team Services• File Services• Telephony• Conferencing and Streaming• Mobile Device Servicespp

• Arranged Services - Tech Support

Business Applications

• Identity and Access Services• Arranged Services – Unified

Communications and CollaborationHosting• Data Center Hosting - Physical• Data Center Hosting – Virtual

Workstation• Hardware• Software

Business Applications• Consulting, Outsourcing, BPO,

Pricing, Sales, Geographic Services, Finance, HR, Corporate Services, Local Applications

• Local Server Room Hosting

9

• Services• Print Services• Arranged Services - Workstation

Publishing Services• Managed Portal Channels• Publishing Sites


Managed Services: Technology Support

- 12%

- 19%

12%

- 23%

$583

$665

+$6 Focus on quality / customer satisfaction improvements

- $5 Integration of AS and TS

coun

t

23%

$468

$361 -$4

-$19 Implementation of managed services

-$29 Centralization of Services

-$18 Introduction of online self-service support

- 22%

- 10%

+ 4%

improvements

+$5 Additional support scope (new applications etc)

and TS- $5 New call routing

platform- $20 Probl. prevention- $15 Changed customer

profile - fewer services consumed

ost

Per H

eadc $283

$255 -$30 Problem prevention activities

$4 Renegotiation of software contracts

managed services

-$6 Other Initiatives

pp

$266

$204

+ 4%

-23%

Co $204

Relaunch of self-service support-$10 -$2

Customer Profile (fewer IT Services)-$39 -$36

Cost Realignment -$2

Offshoring of helpdesk$25 $18 $20 $5

Customer Profile -$15

FY06 FY03 FY04 FY07 FY05FY02 FY08 FY09

General efficiencies-$35 -$24 -$21 -$18 -$7 -$12

-$25 -$18 -$20 -$5


Strategic Sourcing

• Determine what’s strategic to own and operate • Cost efficiency --- scale and resource cost• Speed to change; ability to ramp up and down• Access to skills• 7 x 24 coverage

Accenture IT has outsourced:Accenture IT has outsourced:• All infrastructure service delivery• Over 85% of business application development and


Over 85% of business application development and support

Application Rationalization

• Eliminate redundant applications

• Retire end-of-life applications

• Drive applications to standardized architectures and platformsp

Theme of One


Application Rationalization Benefits

IT benefits:• Decreases application

Business benefits:• Shifts applicationpp

and infrastructure expenses

• Consolidates required

Shifts application maintenance spending to strategic investments

Consolidates required skills

• Increases funding available for new

• Increases flexibility• Decreases integration

costsavailable for new technology

costs• ‘One version of the truth’


Th R t A t ’ ITThe Return on Accenture’s IT Investment

FY01

dcou

nt Pre-Transformation Cost Curve

FY01

FY02

FY03

uppo

rted

Hea

d

SAVINGS

FY03

FY04

Expe

nse

per S

u SAVINGSFY05

FY10

FY06FY07 FY08 FY09

IT E FY10 FY11* FY12*

Post-Transformation Cost Curve

Supported Headcount (000) 14Copyright © 2011 Accenture All Rights Reserved.

Bob Kress, COO, Internal [email protected]


Appendix


Portfolio ManagementChanges allow us to invest where it matters more

FY05 FY10 Client Sales & Delivery

Internal Operations

y

38%Internal Operations

Client Sales & Delivery

Operations


Data Center Transformation

Guiding Principles

– Minimize # of data centers– Minimize # of data centers

– Implemented tiered data center strategy

– Consolidate & virtualize where possible

– Standardize underlying infrastructure and processes


Data Center TransformationBenefits of floor space consolidation

20% SavingsAchieved

35% Savings

200,000 Sq Ft($20M)

160,000 Sq Ft 35% Sa gsAchieved

60% Savings Achieved

60,000 Sq t($16M)

128,000 Sq Ft($13M)

100,000 Sq Ft($8M)

2001 2002 20032001 2002 2003 2009


Network Transformation Program (NTP)

Migration of Accenture’s voice and data network to a fully integrated state-of-the-art, multi-service network on a single infrastructure (MPLS).

• Trends & Drivers– Growth in Outsourcing business and global workforce– Increasing diversity in work schedules and locationsIncreasing diversity in work schedules and locations– Network had grown over time into many point solutions

• Objectives– Reduce SG&A Costs– Support growth– Standardize network

P id f d ti f l ti i ti


– Provide foundation for real-time communication

NTP BenefitsR li bl d t ff ti i ti t k• Reliable and cost effective communication network

• Meets the needs of the next generation workforce

$ f• $20M+ annual recurring net savings as well as soft benefits

Area of Cost Savings Estimated Annual Recurring SavingsArea of Cost Savings Estimated Annual Recurring Savings MPLS Transport $5-6MIPT Toll Bypass $2-3MTEM $3-4MSoftphones $3-4MAudio Conferencing $7-8M


$Total $20-25M

St d di ti & PStandardization & Process Reengineering

• PCs: Global Workstation image

• Global Printing Capability

• Multi-channel Technology Support• Multi-channel Technology Support

• Supplier and Contract Managementpp g

• Common Global Architecture


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