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V. Sathwik Mohan Research Analyst

Beroe-Inc. Dialing in from:

India

Speaker

Members for the Webinar

Saheli Chakraborty Hazra Senior Research Analyst

Beroe-Inc. Dialing in from:

India

Speaker

Terry Walby CEO

Thoughtonomy Dialing in from:

UK

Expert

Janani Narasimhan Engagement Manager

Beroe-Inc. Dialing in from:

India

Moderator

John IT Category Manager

1 million USD

How can John further increase his cost saving?

Surprised!!

So Let’s focus on automation…

“According to data compiled by the outsourcing advisory firm ISG, automation could result in up to 60-80% of cost savings for outsourcing customers with significant ITO spend, as opposed to 15-30% cost savings from the traditional labour arbitrage model of IT Offshoring”

Automation can save more

than 40% labour costs

Sad

0%

80%

100%

60% Cost

Base

Automation Based ITO

Offshore ITO

Consolidation & Best Practice

Continuous Improvement

Labor Cost

Learning

Low High

H

igh

Scope o

f auto

mation Robotic

Process Automation

New ITSM tools

Activity automation

Task level automation

Deploy new ITSM tool suite

with automated interaction

Automate specific tasks

using scripts or niche tools

Automate specific end to end activities and functions

Use virtual workers to

replicate any manual

process and/or interaction

IT service Providers (Infosys,

Accenture, Cognizant etc.)

Banks and FIs Healthcare

Telecommunication

Low

Ease of implementation

How does automation figure in the IT services landscape?

Looking sideways

Information

Technology (IT)

Landscape

Typical Enterprise IT

Spend Split

Application Services • Application Development • Application Maintenance (ADM) • Testing • Application Modernization

Application Layer 65-70%

Infrastructure Services • Data Centre Services • Network Services • Security Services • End User Support

Infrastructure Layer 25-30%

Business Process Outsourcing • Helpdesk services • HRO • FAO

Business Process

Layer

5-10% Automation

Key Services

Low

H

igh Looking

sideways C

ost

of

auto

mat

ion

Maturity of model Low High

Application Development

Helpdesk services

Data center services

Application Maintenance

Currently, IT Helpdesk services has seen the best cost savings with automation

End User

Checks for solution

Solution found

Escalates issue

Deploy solution

Developers team

Records Solution

Database

Curious What’s the BIG difference if a machine is used in place of a human resource?

Accuracy

Cost

Surprised Time

66%

Reduction in resolution

time

99.9%

1 case out of 10,000 goes

wrong

50%

More cheaper than offshore

FTE

What about Inflation

rate?

What happens to

Labour Arbitrage?

Attrition rate?

So, the three issues are non-issues!

Inquisitive

Before Automation

After Automation

Resource Wage rate (per hour)

L1 USD 12-15

L2 USD 16-18

L3 USD 20-24

Robotic FTE USD 7-8

Learning

L1 Staff

L2 Staff

L3 Staff

Virtual Engineers

1 Robotic FTE = 3 Human FTE

~50%

£ 10

X 130,000 = GBP 1.3 million

TNT courier services automates password reset service

£ 10

Automated Password Resetting System

= GBP 200,000

TNT courier services automates password reset service

So TNT saved £ 1.1 Million!

Mobile Device Upgrade Process Automation by a Telecom giant

USD 800,000

After Automation 90%

• Maturity of Business Process

Challenges

Easiest to automate

Challenges

• Task Priority Issue 1

Issue 2

Issue 3

High Priority

Low Priority

Medium Priority

Challenges

• Automation unpredictability

Challenges

• Vendor lock-in

Risks

• Network intrusion

• Technology dependence

Considerations

• Lifecycle costs

• Maturity of Business Process

Challenges

Risks

• Task Priority

• Automation unpredictability

• Vendor lock-in

• Network intrusion

• Technology dependence

Considerations

• Lifecycle costs

Continuing with John’s story…

3

2 Infrastructure Services

• ITSM platform

2 to 4 Years

Helpdesk Services

• Natural language processing

1 to 2 Years

Application Services

• Artificial Intelligence

6 to 8 Years

1

“The ability of technology is far greater than the willingness and maturity of organizations to exploit it.”