Outsourcing: reducing operational risk

1. Outsourcing: reducing operational risk Adrian Amariei CEO, Axonite

2. Agenda The promise of outsourcing Who does it and why Selecting and managing an outsourcing partner Our experience at Axonite: the sell, the good, and the bad, and still the good Today we will talk about:

3. Current trends Factors driving today’s business environment • Standardization • Increasing competition • Ever-changing legislation • Upturn in the economy • Economic migration • Demographic changes • Social trends • The Digital networked economy

4. Why outsource? • Non-responsive IT department missing delivery dates = lost market opportunities. • Difficulties to catch up with Technology changes and innovation • Shrinking IT CAPEX • Own IT organization does not provide industry best practices and processes • Multi-IT vendor environment = resources spent into managing contracts • Need to focus on core business.

5. Who does it and why • Economies of scale and scope • Arbitrage: labor, skills and infrastructure

6. Outsourcing guidelines 1 of 2 • Answer this: “why do you want to do it?” • Consider any activity and processing that: • Is rule based • Is transactional • Is repetitive • Is not core • Has high volumes • You can measure properly • Don’t touch Strategic differentiators

7. Outsourcing guidelines 1 of 2 Managing your outsourcer • Pay attention to SLA • Check regulations on the issue and outsourcer compliance • Verify security of data transfers and processing • Ask for referrals • Check reaction time and quality to your requests

8. My Experience at Axonite • Axonite is about enabling the “real-time enterprise” with mobile messages. • We bridge business processes to real people in 6 seconds. • We connect Enterprise applications and databases to mobile phones. • Challenges we encountered, despite clear value proposition: • Enterprise pricing expected to be same as retail pricing. • “I can do that too” and TCO • Data quality

9. How it works, actually • Let's see a quick live demo. • If you want to be part of it, please send a SMS with command ‘N’ and your first name to: 0788 555 555 Example: ‘N Gabi’

10. Why is this outsourcing strategic, and “real-time”…… all at the same time??

11. Performance Indicators Framework 1 of 3 “If you can’t measure it – it doesn’t count” John Yard Customer • Customer Satisfaction • Self-service • Completeness Response Rate • Service Availability Customer, Financial, Strategic

12. Performance Indicators Framework 2 of 3 “If you can’t measure it – it doesn’t count” John Yard Financial • Call-Center OPEX • Aging of accounts receivable • Risk management

13. Performance Indicators Framework 3 of 3 “If you can’t measure it – it doesn’t count” John Yard Strategic • Business advancement in face of competition • Time to market • Innovation • Continuous Improvement

14. What’s next? • It’s all about money in and money out. That is, PROFIT. • Gain your independence – escape the prison named ‘license’ • You need to be agile in the market place – though times are ahead • Have your next providers earn your money • Go SaaS with some of your business processes.

15. Quick review 1 of 3 Trends: • Increasing competition • Ever-changing legislation • Upturn in the economy • Demographic changes • Social trends • The Digital networked economy

16. Quick review 2 of 3 Why outsource? • Non-responsive IT department = missing market opportunities. • Difficulties to catch up with Technology changes and innovation. • Shrinking IT CAPEX • Own IT organization has natural limitations • Need to focus on core business.

17. Quick review 3 of 3 OK, we outsource – IF… • Is rule based • Is transactional • Is repetitive • Has high volumes • You can measure properly

18. Adrian Amariei shall welcome your comments at a.amariei@axonite.ro +40 21 323 94 63