Transforming Accenture’s IT While Reducing Cost Robert E. Kress, COO, Internal IT May 2011 Copyright © 2011 Accenture All Rights Reserved. 1
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
Copyright © 2011 Accenture All Rights Reserved.
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
5Copyright © 2011 Accenture All Rights Reserved.
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
Copyright © 2011 Accenture All Rights Reserved. 6
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
7Copyright © 2011 Accenture All Rights Reserved.
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
8Copyright © 2011 Accenture All Rights Reserved.
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
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• Services• Print Services• Arranged Services - Workstation
Publishing Services• Managed Portal Channels• Publishing Sites
Copyright © 2011 Accenture All Rights Reserved.
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
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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
Copyright © 2011 Accenture All Rights Reserved. 11
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
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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’
Copyright © 2011 Accenture All Rights Reserved. 13
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]
Copyright © 2011 Accenture All Rights Reserved. 15
Appendix
16Copyright © 2011 Accenture All Rights Reserved.
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
Copyright © 2011 Accenture All Rights Reserved. 1717
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
Copyright © 2011 Accenture All Rights Reserved. 18
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
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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
Copyright © 2011 Accenture All Rights Reserved. 20
– 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
Copyright © 2011 Accenture All Rights Reserved. 21
$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
Copyright © 2011 Accenture All Rights Reserved. 22