Qantas/IBM – Transition phase of the outsourcing lifecycle Presented by Goh Kok Min Kelvin Tan Yuean Soo Ho Wee Ming Tan Wei Liang Wang Geng

Agenda Background Objectives Transition Plan ◦ Disruption Minimization Strategy ◦ Staffing Arrangement ◦ Communication Strategy ◦ Knowledge Management Asset & Contract Management Summary

Background 10 year $446 million outsourcing deal Manage Qantas’ IT Infrastructure ◦ Help-desk support svc ◦ Security ◦ Change management Transition of Staff Resources ◦ 178 Qantas staff will be offered employment at IBM

Objective Carry out the transition plan smoothly Ensure a smooth transfer of ◦ Staff ◦ Assets ◦ Third party contracts Minimize risk to business operations ◦ Performance measurement ◦ Proper knowledge transfer

Transition Plan Disruption Minimization Strategy Staffing Arrangement Communication Strategy Knowledge Management Asset & Contract Management

Disruption Minimization Strategy Technology o Technology risks are present throughout Quantas and must be addressed as a whole. o Technology risk management strategy can be developed and implemented to handle the risks o Key Performance Indicator (KPI) o Update actual baseline KPI’s achieved prior to handover. o It provides us a service level baseline against which to gauge IBM. o Service level agreement with IBM will be signed on improving benefits such as competitiveness and reducing risk.

Disruption Minimization Strategy Process o The process risks are all dependent on both Quantas and IBM to ensure that the system works. o Our customer is the highest priority o Identifying problem escalation procedures o Identifying coordination and resolution procedures o Documentation of the process.

Disruption Minimization Strategy People

Staffing Arrangement Staff control ◦ Negotiated transfer People transition ◦ Create new organizational chart ◦ Redraft job descriptions ◦ Reassign accountabilities ◦ Conduct training

Communication strategy Steering Committee ◦ Communication protocol ◦ Track transition status ◦ Dispute resolution Mode of Communication ◦ Weekly / monthly meetings ◦ Informal ◦ Video Conferencing

Knowledge Management Knowledge Transfer ◦ Conduct workshops ◦ Standard operating procedure (SOP) ◦ Database of information ◦ Documentation

Asset and Contract Management Asset Transfer ◦ Transfer of Ownership Intellectual Property protection and security provisions ◦ Secure movement of assets Ownership of 3 rd party contracts

Summary Plan ahead as early as possible Governance Framework ◦ Review meetings, evaluations & audits Ensure continuous business operations ◦ Risk Management ◦ Service Level Agreement (SLA)

Q & A Thank You !