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Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES...

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© 2017 Jack Henry & Associates, Inc. ® 1 © 2017 Jack Henry & Associates, Inc. ® Outsourcing Rules of Engagement JHA OutLink Processing Services™ Presented by: Ralph Borenstein, Senior Director of Operations Jack Henry & Associates, Inc. ®
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Page 1: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®1 © 2017 Jack Henry & Associates, Inc.®

Outsourcing Rules of EngagementJHA OutLink Processing Services™

Presented by:

Ralph Borenstein, Senior Director of Operations

Jack Henry & Associates, Inc.®

Page 2: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®2

Legal Disclaimer: Dates contained in this presentation are

provided as estimates only and can be changed at any time

at the sole discretion of Jack Henry & Associates, Inc. This

information may not be incorporated into any contract and

should not be relied upon in making purchasing decisions.HANK YO FOR THE

OPPORTUNITY TO

SHARE JHA’S STORY

Page 3: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®3

About OutLink

OutLink Solutions

Allen Data Center

Charlotte Data Center

Lenexa Core Director Data Center

Item Processing & Print Centers

Synergy Express Center

jhaCall Center™

Disaster Avoidance

Summary

Discussion

Agenda Topics

Page 4: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®4

In the outsourcing

business since 1995

OutLink Overview

Page 5: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®5

328 348 364 387 409 427 473 514 539 557 568 577 604 611 622 6200 2 8 31 37 48 51 57 66 88 106 127 163 168 199 200

0

500

1000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017YTD

Banking Clients CU Clients

OUTLINK IS OUR

OUTSOURCING

BUSINESS.

WE PROCESS FOR

820 financial institutions

which represent $348B

in assets.

71 banks and 3 credit

unions with over $1B in

assets.

OUTLINK CONSISTS OF

Three core processing centers

jhaCall Center™

Four check image keying and

balancing centers

Three print centers

An enterprise content

management center

Page 6: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®6

Why Do Financial Institutions Outsource?

“Outsourcing helps us manage

costs and avoid surprises …”

“Outsourcing helps us do a better

job of managing compliance …”“Replacing staff has become a

non-event for our institution …”

“We now have much more

time to focus on building

our business …”

Financial Institution’s comments who have moved to OutLink:

“We no longer worry about

providing our own core

disaster recovery …”

Page 7: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®7

Formalized policies and procedures across all operations.

JHA Internal Audit reviews every processing site annually.

FFIEC joint regulatory team reviews OutLink annually with complete

examinations on eighteen month cycles.

SSAE18 Type 2 examinations

A “Big Four” external audit firm conducts annual review of all core applications and core processing sites.

This report is provided as part of our service to JHA customers.

OutLink Best Practices

Page 8: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®8

OutLink Core Data Centers

THREE CORE PROCESSING CENTERS

Allen: SilverLake

Charlotte: CIF 20/20®

Lenexa: Core Director®, CruiseNet®, and Episys®

RECOVERY SITE

Branson

820 CUSTOMERS LIVE

SilverLake: 236

CIF 20/20: 328

Core Director: 56

CruiseNet: 77

Episys: 123

Page 9: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®9

OutLink Core Data Centers

0

100

200

300

400

500

600

700

800

900

Banks Credit Unions

Page 10: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®10

Allen Data Center

Page 11: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®11

Redundant

communications

and power

capabilities

State-of-the-art

processing

environment

12.9 mm

accounts

processed

nightly

99.999%

processing

success

Outstanding

system

availability –

stable and

consistent

IBM iSeries

systems

Fully protected

by generator

and UPS

backups

Allen Data Center

7x24x365

Page 12: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®12

Allen Facility

Top-Tier Data Center Built in 2012 with Significant Structural

and Infrastructure Enhancements

Continued Focus on Change ControlPhysical change control for items such as deployment and cabling keeps

environment operationally sound

Logical change control utilizing products such as Turnover facilitates structured

testing and production transition

Page 13: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®13

Charlotte Data Center

Page 14: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®14

Redundant

communications

and power

capabilities

State-of-the-art

processing

environment

6.2 mm

accounts

processed

nightly

99.992%

processing

success

Outstanding

system

availability –

stable and

consistent

IBM iSeries

systems

Fully protected

by generator

and UPS

backups

Charlotte Data Center

7x24x365

Page 15: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®15

Charlotte Facility

Top-Tier Data Center Built in 2012 with

Significant Structural and Infrastructure

Enhancements

Continued Focus on Change ControlPhysical change control for items such as deployment and

cabling keeps environment operationally sound

Logical change control utilizing products such as Turnover

facilitates structured testing and production transition

IBM iSeries POWER7 has 21 processors currently with

processing capacity to support foreseeable future

growth

Telecommunication infrastructure includes:- Significantly increased internet bandwidth with multiple

carriers

- Full router redundancy and protection

- Capacity to accommodate future growth

Data Center is 2,000 square feet in a secure controlled-access facility

Communications cabling above equipment while power feeds are below floor

IBM iSeries POWER7 has 21 processors currently with processing capacity to support

foreseeable future growth

Telecommunication infrastructure includes:

- Significantly increased internet bandwidth with multiple carriers

- Full router redundancy and protection

- Capacity to accommodate future growth

Power Infrastructure includes:

- Dual feeds from grid

- 1,500 kw generator

- UPS

- All equipment is supplied through two power feeds

Page 16: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®16

Lenexa Core Director®

Data Center

Page 17: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®17

Redundant

communications

and power

capabilities

State-of-the-art

processing

environment

Over 690,000

accounts

processed

nightly

99.999%

processing

success

Outstanding

system

availability –

stable and

consistent

IBM xSeries

virtualized

systems

Fully protected

by generator

and UPS

backups

Lenexa Core Director Data Center

7x24x365

Page 18: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®18

Lenexa Core Director Data Center Staff

Our Lenexa Data Center team is solely focused on our customers and

their needs

Our Data Center Staff consists of several staff members with over

20 years experience, many with 5-15 years of experience and a few

newcomers. In this business … we are very good at what we do!

Page 19: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®19

OutLink Item Processing Centers

FOUR REMOTE KEYING CENTERS

Allen, TX

Lombard, IL

Totowa, NJ

Oklahoma City, OK

DISASTER AVOIDANCE

Allen and Branson

476 CUSTOMERS LIVE

Item Volumes Average 2.71M with

Peaks Over 4.7M Items per Day

380

390

400

410

420

430

440

450

460

470

480

490

Customers Processed

2012

2013

2014

2015

2016

2017 YTD

Page 20: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®20

Item Processing Centers

• Complete electronic image processing utilizing 4|sight and Check Image Exchange

− Fully integrated with JHA Core systems

− Duplicate presentment detection

− Inputs from Teller Capture, Branch Capture, Merchant Capture, Federal Reserve

Bank and 3rd Parties.

− Outputs to Federal Reserve Bank, 3rd Party Correspondents, Internet Banking,

Fraud System, etc.

Page 21: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®21

OutLink Print Centers

THREE REGIONAL PRINT CENTERS

Allen, TX

Totowa, NJ

Shawnee Mission, KS

DISASTER AVOIDANCE

Full Disaster Avoidance Posture

between all 3 Print Centers

392 CUSTOMERS LIVE

Over 4.1M statements

generated & mailed monthly

657K customer notices

generated monthly

Page 22: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®22

Print Centers

• High speed automated insertion equipment

• Color and black/white printing capabilities

• Fully protected by generator and

UPS backup

Page 23: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®23

Synergy Express Center

Page 24: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®24

OutLink Synergy Express Center

SOFTWARE AS A SERVICE

Enterprises Content Management

Highly Integrated solutions that maximize efficiencies, reduce operating

costs and enhances Customer Service

DISASTER AVOIDANCE

Full Disaster Avoidance Posture

in Springfield and Branson facilities

491 CUSTOMERS LIVE

0

100

200

300

400

500

600

Customers Hosted

2010

2011

2012

2013

2014

2015

2016

2017 YTD

Page 25: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®25

OutLink jhaCall Center

FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES

Center Located in Springfield, MO

Competitive Differentiator

DISASTER AVOIDANCE

Monett, MO and Branson, MO

38 SERVICE ENGAGEMENTS YTD

Conversion Assistance Services0

5

10

15

20

25

30

35

40

Service Engagements

FY11

FY12

FY13

FY14

FY15

FY16

FY17 YTD

Page 26: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®26

jhaCall Center™ ⎻ What is it?

SERVICES

Full Call Center outsourcing

Overflow services

After-hours Call Center services

Select Services: Event-based

assistance

24/7 Call Center outsourcing

DR/BCP services

Full business operations outsourcing

SOFTWARE

Your bank uses our Call Center

software

Efficiency, Efficiency, Efficiency

Page 27: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®27

Customer Service

Business is About People

It’s good to remember that and

treat the people you deal with as

individuals. Relationships keep

us together, and together we

can do great things.

- Jack Henry & Jerry Hall

Premier Service …

Jack Henry’s primary and

sustainable competitive

advantage …

Client Satisfaction …

Regulary and accurately

measured with formal annual

surveys ... 50,000+ routine

online surveys ...

Page 28: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®28

OutLink Support Experience

OutLink enhances your complete support experience

• You contact JHA through a voice line or through the client portal.

• JHA support departments provide software support.

• OutLink Data Centers provide assistance with operational issues and scheduling.

• CRM (customer relationship manager) facilitates “getting things done” within

JHA – they are your advocate for your financial institution.

• Over 325 associates in OutLink “run your business” and we leverage our

entire company to support your ongoing needs and your future goals

“OUR BIGGEST DIFFERENTIATOR IS SERVICE …”

Page 29: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®29

OutLink Client Portal

Page 30: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®30

OutLink Communication

Extensive communications to our clients

Proactive communication of special events

Scheduled down time notifications – 30 days in advance

Extensive Monthly Performance Statistics provided on-line

Real time alerts to programming fixes and special releases

Service Alerts advising you of any unusual events

Hourly updates during system outages

Toll-free number to call at any time during a processing “event”

Monthly Performance Reporting

Bi-Annual OutLink Newsletter

Quarterly Regulatory Newsletter

Page 31: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®31

The MountainSecure, 170 feet underground facility in Branson, MO.

Impervious to most natural disasters including hurricanes, earthquakes, floods, tornados.

Serves as a backup location and also a live and active operations site for many JHA products.

Multiple levels of telecommunications resiliency.

Robust hardware configurations to ultimately support all OutLink sites in business interruption or

disaster scenarios.

Full data replication technology helps ensure complete recovery services.

Page 32: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®32

Disaster Avoidance

HIGH DISASTER TOLERANT TECHNOLOGY AND PROCESSES

Reducing the impact felt by you and your customers.

DISASTER AVOIDANCE TESTING

Consists of reversing the replication between the two sites.

We then run in production for an extended period of time.

The ultimate test of disaster recovery.

PRIMARY/STAND-BY MODEL

Two geographically disparate locations are synchronized “near real-time”.

Hardware is the same in both locations.

We utilize SAN replication and/or software replication.

All applications and associated data required for production exist on active media within both environments.

Tape backup largely eliminated as a required component for production data restoration.

Page 33: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®33

We provide you with the ability to

deliver technology solutions to

your customers.

We are your data center! We allow you to focus

on the business you know best – the business

of banking.

OutLink Advantages

We manage regulatory compliance. We manage disaster recovery.We offer a single point of

technology focus.

We enable a predictable cost

model for budgeting.

We take total responsibility for

computer operations activities.

At the same time, you have full

control over products, cycles, and

user security and management.

Page 34: Jack Henry & Associates, Inc. Outsourcing Rules of Engagement webinar... · FULLY HOSTED SERVICES AND SOFTWARE INHOUSE ALTERNATIVES Center Located in Springfield, MO Competitive Differentiator

© 2017 Jack Henry & Associates, Inc.®34

Discussion

WE LOOK FORWARD TO

EARNING YOUR BUSINESS AND

A HIGHLY SUCCESSFUL

PARTNERSHIP


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