Transforming Accenture s IT While Reducing Cost Robert E. Kress, COO, Internal IT May 2011
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1 Transforming Accenture s IT While Reducing Cost Robert E. Kress, COO, Internal IT May 2011 Copyright 2011 Accenture All Rights Reserved. 1
2 Accenture: 215,000 Employees $21.6 Billion in Revenues Copyright 2011 Accenture All Rights Reserved. 2 2
3 Quick Facts about Accenture Internal IT Hardware and Network 200,000+ workstations deployed 6,013 devices monitored 4,372 servers managed 15,050 megabytes network bandwidth managed Websites 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 Applications 267 global applications 255 local applications supported Single instance global SAP ERP Collaboration 208,000 accounts 5,400,000 messages per day 27,000,000 spam messages blocked 4,500 Telepresence hours per month 11,000 Sharepoint sites 65,000 mobile devices (iphone/blackberry/windows) 45,000,000 audio conferencing minutes per month Support 1,283, resolved incidents id per year through help desk, self-service, web chat, local support 1,265,158 self-service contacts Copyright 2011 Accenture All Rights Reserved. 3
4 ,000 Before and After Employees ,000 $11.44 Billion Revenue $21.6 Billion 67% % of Satisfied Sponsors 92% Baseline Baseline IT Spend in $ s IT Spend as % of Revenue Down 22% Down 59% Baseline IT Spend per person Down 69% 0 Sourced IT Staff 2, ,500 Multiple Not Measured Global Applications Technology Platforms 267 Local Applications 255 Benefits Realized One 124% Copyright 2011 Accenture All Rights Reserved. 4
5 Key Actions to Reduce IT Cost Running IT Like a Business Centralize, Standardize, Consolidate Sourcing Strategy Application Rationalization Portfolio Management Data Center Consolidation and Virtualization Network Transformation Process Re-engineering Supplier and Contract Management Copyright 2011 Accenture All Rights Reserved. 5
6 Accenture Runs IT as a Business IT Strategy IT Governance The Foundation Managed Services Performance Measurement & Communications Provides the operating model and environment for implementing improvements Copyright 2011 Accenture All Rights Reserved. 6
7 Accenture IT Strategy Strong, central IT governance IT run as a business based on a managed services approach Workforce strategy focused on variable resources and low cost locations Consolidated, standardized, and centralized operations Strong IT performance measurement processes Copyright 2011 Accenture All Rights Reserved. 7
8 Using a Managed Services approach puts 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 cost 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 Copyright 2011 Accenture All Rights Reserved. 8
9 IT Products and Services Catalog Managed Services: Tailoring Choices to the Business Communications Network Connectivity Remote Access Arranged Services - Communications Technology Support Self Service (esupport) Service Desk Local Support Arranged Services - Tech Support Hosting Data Center Hosting - Physical Data Center Hosting Virtual Local Server Room Hosting Workstation Hardware Software Services Print Services Arranged Services - Workstation Copyright 2011 Accenture All Rights Reserved. Unified Communications and Collaboration Unified Messaging (includes ) Collaboration Team Services File Services Telephony Conferencing and Streaming Mobile Device Services Identity and Access Services Arranged Services Unified Communications and Collaboration Business Applications Consulting, Outsourcing, BPO, Pricing, Sales, Geographic Services, Finance, HR, Corporate Services, Local Applications Publishing Services Managed Portal Channels Publishing Sites 9
10 Managed Services: Technology Support $665-12% Co ost Per Headc count -$29 Centralization of Services -$18 Introduction of online selfservice support $583-19% -$19 Implementation of managed services -$6 Other Initiatives $468-23% Customer Profile (fewer IT Services) -$39 -$36-22% $361 -$4 Renegotiation $283 of software -$30 contracts Problem prevention activities Relaunch of self-service support -$10 -$2-10% Cost Realignment -$2 Offshoring of helpdesk +$6 Focus on quality / customer satisfaction improvements +$5 Additional support scope (new applications etc) $ % $266 -$25 -$18 -$20 -$5 - $5 Integration of AS and TS - $5 New call routing platform - $20 Probl. prevention - $15 Changed customer profile - fewer services consumed -23% Customer Profile -$15 General efficiencies -$35 -$24 -$21 -$18 -$7 -$12 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Copyright 2011 Accenture All Rights Reserved. 10 $204
11 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: All infrastructure service delivery Over 85% of business application development and support Copyright 2011 Accenture All Rights Reserved. 11
12 Application Rationalization Eliminate redundant applications Retire end-of-life applications Drive applications to standardized architectures and platforms Theme of One Copyright 2011 Accenture All Rights Reserved. 12
13 Application Rationalization Benefits IT benefits: Decreases application and infrastructure expenses Consolidates required skills Increases funding available for new technology Business benefits: Shifts application maintenance spending to strategic investments Increases flexibility Decreases integration costs One version of the truth Copyright 2011 Accenture All Rights Reserved. 13
14 FY01 The Return on Accenture s IT Investment IT Expense per Su upported Head dcount FY02 FY03 FY04 FY05 FY06 Pre-Transformation Cost Curve SAVINGS FY07 FY08 FY09 FY10 FY11* FY12* Post-Transformation Cost Curve Copyright 2011 Accenture All Rights Reserved. Supported Headcount (000) 14
15 Bob Kress, COO, Internal IT Copyright 2011 Accenture All Rights Reserved. 15
16 Appendix Copyright 2011 Accenture All Rights Reserved. 16
17 Portfolio Management Changes allow us to invest where it matters more FY05 Client Sales & Delivery FY10 Internal Operations Internal Operations 38% Client Sales & Delivery Copyright 2011 Accenture All Rights Reserved. 17
18 Guiding Principles Data Center Transformation 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
19 Data Center Transformation Benefits of floor space consolidation 200,000 Sq Ft ($20M) 20% Savings Achieved 160,000 Sq Ft 35% Savings ($16M) Achieved 128,000 Sq Ft ($13M) 60% Savings Achieved 100,000 Sq Ft ($8M) Copyright 2011 Accenture All Rights Reserved. 19
20 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 locations Network had grown over time into many point solutions Objectives Reduce SG&A Costs Support growth Standardize network Provide foundation for real-time communication Copyright 2011 Accenture All Rights Reserved. 20
21 NTP Benefits Reliable and cost effective communication network Meets the needs of the next generation workforce $20M+ annual recurring net savings as well as soft benefits Area of Cost Savings MPLS Transport IPT Toll Bypass TEM Softphones Audio Conferencing Total Estimated Annual Recurring Savings $5-6M $2-3M $3-4M $3-4M $7-8M $20-25M Copyright 2011 Accenture All Rights Reserved. 21
22 Standardization di ti & Process Reengineering PCs: Global Workstation image Global Printing Capability Multi-channel Technology Support Supplier and Contract Management Common Global Architecture Copyright 2011 Accenture All Rights Reserved. 22
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