Information Technology Procurement Benchmarks Advisory Committee

1. Information Technology Procurement Benchmarks Advisory Committee SSC Procurement Review Presentation December 7th, 2012

2. Agenda • Procurement Landscape at SSC • Recent SSC Procurement Review and Key Findings • Wider Procurement Trends

3. 1. SSC Procurement Landscape – The 50,000’ View • Thousands of contracts across a variety of categories, easily representing $1B in third party spend Moving towards bigger, more complex transformational arrangements • Increased authorities granted quickly and with the resulting expectations for results • $20M Services • $40M Goods • Capability to limit 1st and 3rd Party Liability With challenges all around

4. 1. SSC Procurement Landscape – By The Numbers SSC Demand • The value of SSC procurements is in excess of $1B annually • Spend supports services as follows: 55% for network/telephony; 27% data centre; 11% non-mandatory services; and, 1% email • Procurement is focused on a narrow band of goods and services: Network & Telephony Services 44%, Software Maintenance 17%, Professional Services 11%, Hardware Servers 4% Market Supply • SSC has over 550 vendors across 244 categories • Top Ten vendors provide an estimated 74% of the categories based on the spend • 45% of this spend is with two vendors, both in the network/telephony category • Note: Charts are based on data from SSC SAP for commitments from Apr 1 – Sept 20, 2012; values adjusted for multi-year commitments

5. 2. SSC Procurement Review Background • In the summer and fall of this year, PwC conducted a review of procurement at SSC with an objective of developing an SSC Procurement Target Operating Model for the future Objectives • Assess the current state of the procurement function through fact finding activities (e.g. stakeholder interviews, facilitated working sessions, documentation review) and analysis • Define the target operating model based on current state assessment and drawing on research into leading practices for the procurement function • Develop a roadmap to initiate preliminary activities that move from the current procurement operating model for the Procurement and Vendor Relationships Directorate (PVRD) to a target-state operating model at a pace that suits SSC’s needs

6. 2. SSC Procurement Review – A Function for the FutureAs SSC moves towards a stable and transformed service delivery model, the capabilities of the procurement function will need to evolve • Enabler to transformation mandate • Aligned to global leading practices • Risk based, tiered service delivery • Affordable, lean and scalable • Operationally excellent with a focus on value and cycle time Capacity & Capability to Deliver

7. 3. Procurement Trends Impacting SSC • Private Sector • Supply chain integrity and security • Effective Category Management • Procurement Shared Services • E-Procurement for speed and efficiency Public Sector • Governance • Use of 3rd Parties • Meaningful Engagement with Industry • Leveraged Buy for Strategic Outcomes • Vendor Management Capabilities