for ALB Conference 2006 Outsourcing: reducing operational risk Adrian Amariei CEO, Axonite Adrian Amariei CEO, Axonite

for ALB Conference oct of 18 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 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:

for ALB Conference oct of 18 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 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

for ALB Conference oct of 18 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. 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.

for ALB Conference oct of 18 Who does it and why Economies of scale and scope Arbitrage: labor, skills and infrastructure Economies of scale and scope Arbitrage: labor, skills and infrastructure

for ALB Conference oct of 18 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 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

for ALB Conference oct of 18 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 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

for ALB Conference oct of 18 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 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

for ALB Conference oct of 18 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: Example: ‘ N Gabi’ 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: Example: ‘ N Gabi’

for ALB Conference oct of 18 Why is this outsourcing strategic, and “real- time”…… all at the same time??

for ALB Conference oct of 18 Performance Indicators Framework 1 of 3 Customer Customer Satisfaction Self-service Completeness Response Rate Service Availability Customer Customer Satisfaction Self-service Completeness Response Rate Service Availability “If you can’t measure it – it doesn’t count” John Yard Customer, Financial, Strategic

for ALB Conference oct of 18 Performance Indicators Framework 2 of 3 Financial Call-Center OPEX Aging of accounts receivable Risk management Financial Call-Center OPEX Aging of accounts receivable Risk management “If you can’t measure it – it doesn’t count” John Yard

for ALB Conference oct of 18 Performance Indicators Framework 3 of 3 Strategic Business advancement in face of competition Time to market Innovation Continuous Improvement Strategic Business advancement in face of competition Time to market Innovation Continuous Improvement “If you can’t measure it – it doesn’t count” John Yard

for ALB Conference oct of 18 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. 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.

for ALB Conference oct of 18 Quick review 1 of 3 Trends: Increasing competition Ever-changing legislation Upturn in the economy Demographic changes Social trends The Digital networked economy Trends: Increasing competition Ever-changing legislation Upturn in the economy Demographic changes Social trends The Digital networked economy

for ALB Conference oct of 18 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. 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.

for ALB Conference oct of 18 Quick review 3 of 3 OK, we outsource – IF… Is rule based Is transactional Is repetitive Has high volumes You can measure properly OK, we outsource – IF… Is rule based Is transactional Is repetitive Has high volumes You can measure properly

for ALB Conference oct of 18 Adrian Amariei shall welcome your comments at Adrian Amariei shall welcome your comments at