1© 2006 Autodesk
Telecom Outsourcing, GITI Event
Roberto SigonaSr Director, WW IT Operations
2© 2006 Autodesk
Agenda
Autodesk Corporate Overview Roberto Sigona’s bio Sourcing strategy Biggest outsourcing deals Lessons learned Q&A
Appendix 1: Sample scorecard used with outsourcing partners Appendix 2: Evolution of trust and relationship with partners
3© 2006 Autodesk
Roberto SigonaSr director, WW IT Operations
4© 2006 Autodesk
The World’s Leading 2D and 3D Software Company
We are a Fortune 1000 company
100% of the Fortune 100 use our products
7 million registered users around the world
An unsurpassed partner network
More than 2,500 third-party developers
5© 2006 Autodesk
Infrastructure
Building
Manufacturing
Media & Entertainment
Industry Leadership
We are a global software leader that offers a
diversified portfolio of software tools and industry
solutions to help customers experience their
ideas before they are real:
Conceptual design
2D design and drafting
3D model-based design
Simulation, animation, and visualization
Collaboration and data management
6© 2006 Autodesk
Roberto Sigona’s brief Bio
Italian and Swiss national, born in Switzerland
Bachelor degree in Electronic/Electrotechnic Engineering
With Autodesk since 1991 Variety of roles within Customer Support
and Information Technology both in Switzerland and Headquarters (USA)
Currently Sr Director, WW IT Operations, responsibilities include: 150+ people in 40 countries, 110
sites supported $60M+ budget Datacenters and infrastructure WW Field staff, Desktop and Help Desk Telecom, Network and Security Site Manager for Autodesk
Development S.à.r.l in Neuchâtel
7© 2006 Autodesk
IT’s Sourcing strategy
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Drivers of Outsourcing
Increase IT Capabilities
Focus on Core Competencies
Cost Reduction and Control
Cash Needs/Asset Minimization
9© 2006 Autodesk
Strategic Sourcing is a process rather than a series of activities
Focus on tasks
Function isolated
Reactive
Insular, static
Unit price based
Reliance on tendering
Adversarial supplier dealings
Suppliers as the enemy
Win/lose
Corrective measures
Gold plating or undefined standards
Lowest price bidder, price driven
Focus on process performance
Function integrated
Proactive
External focus, dynamic
Total cost framework
Diverse sourcing strategies
Creative collaboration, trust
Suppliers as a key resource
Win/win
Preventive measures
Fit for purpose
Best value bidder, value driven
Traditional Contracting/Purchasing Strategic Sourcing
Strategic Sourcing as a Process
10© 2006 Autodesk
Outsourced deals and lessons learned
11© 2006 Autodesk
BT/Infonet
Objectives/scope Single service provider for global data, voice, video network
3 year contract, $21M commitment Private, global MPLS Network Guaranteed service levels Consolidate 40+ providers
Highlights of the last 3 years Achieved expected benefits in service quality Relationship has improved over time Unclear lines of responsibilities for VoIP, quality issues
12© 2006 Autodesk
HCL
Objectives Hosting and management of critical enterprise applications
5 year contract, $58M commitment Leverage world class processes and economies of scale Consolidate business critical applications into one location on new
hardware Guaranteed service levels Business continuity within 24 hours Foundation for future services consolidation and staff augmentation
Highlights of Y1 implementation Smooth go-live and better than expected month one steady state Staff resistance Initial issues around right levels of skills on both sides Differences around sense of urgency, communication, project management
13© 2006 Autodesk
Typical Failure Points in IT Outsourcing
Underinvestment in selection and management process
Difficulties around adapting to change
Misalignment of client-vendor objectives, incentives
Unclear cost / performance baseline
14© 2006 Autodesk
Highlights of lessons learned
Initial groundwork a “must,” not nice to have Strategy first - define core competencies, know future expectations Trust takes time to build (see appendix) Contract is critical – get help
Clear SOW both for implementation and steady state
Good partner management = investments and resources Both sides must manage the relationship, not just the performance
Maintain alignment of strategic objectives and health of relationship through regular reviews
15© 2006 Autodesk
Quality Management
Clear and measurable SLA for both parties with penalties when missed
Monthly Operational Review (MOR)
Quarterly Management Review (QMR)
Benchmarking clause for contracts
© 2006 Autodesk
Thank you!
Questions?
© 2006 Autodesk
Appendix 1Scorecard used with Outsource partners
18© 2006 Autodesk
Scorecard - Introduction Scorecard built around 5 categories that incorporate our original objectives and SLAs:
Acct Mgmt Financial Mgmt Project Mgmt Operational Mgmt Strategic Development
Each category has several components (not shared in this review but shared prior to meeting)
Weightings assigned to each category and component within the category Based on current priorities; will change over time
Input from all key interface points and consolidated into averages Scorecard done by Autodesk and partner
19© 2006 Autodesk
ScorecardScorecard Summary
Weighting Q1'06 Q2'06 Q3'06 Q4'06
Account Management 25%
Financial Management 15%
Project Management 25%
Operations Management 30%
Strategic Development 5%
Overall 100%
Key
Green – above expectations 3.75 5.00
Yellow – approaching or meets requirements 2.75 3.74
Red – inconsistent performance and/or does not meet expectations 0.00 2.74
Example
© 2006 Autodesk
Appendix 2Evolution of trust and relationship with partners
21© 2006 Autodesk
Managing Trust and Control
5
4
3
2
1
0
- 1
- 2
- 3
- 4
- 5
“Co-management” established
“Co-management” initiated
Seek Best Practice
Ad Hoc & Random
You & Me
You v. Me
Us v. Them
Red Team v. Blue Team
War
Exit
Management Dynamics Trust Dynamics
Organizational Trust
Group Trust
Individual Trust
Individual Distrust
Group Distrust
Organizational Distrust
Most successful outsourcing relationships have a trust rating of higher than 1.5
22© 2006 Autodesk