Date post: | 03-Jul-2015 |
Category: |
Engineering |
Upload: | beroe-inc |
View: | 143 times |
Download: | 1 times |
• How to post a question?
• To log in again if the connection is lost, use the link in the confirmation mailer you would have received from [email protected]
• In case you face any other
issues write an email to [email protected]
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.”