Managed Services - Service for Life

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    S E R V I C E .

    F O C U S .

    VALU E .

    M A N A G E D S E R V I C E S S E R V I C E F O R L I F E

    MANAGED SERVICES SOLUTIONS

    S E R V I C E .

    F O C U S .

    VALU E .

    M A N A G E D S E R V I C E S S E R V I C E F O R L I F E

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    2 K P M G C O N S U L T I N G

    THE CHALLENGES YOU FACE MULTIPLY EVERY DAY.

    MANAGED SERVICES GIVES YOU THE FREEDOM

    TO FOCUS ON YOUR CORE STRATEGIES.

    A managed services solution is a powerful option for organizations seeking to manage their operationalcosts and to achieve performance goals that will drive growth in the long term.

    In todays customer-driven business environment, your organization must differentiate itself by delivering

    services or products that create value for your customers. At the same time, you must manage the

    businessgetting new products to market, managing finances, and reducing operational inefficiencies.Your core products and services are what make your organization successful; but finely tuned deployment

    and management of these solutions can make the difference between success and excellence.

    KPMG Consultings Managed Services can help you turn the challenge of managing your business into

    an opportunity for gaining competitive advantage. We offer business application management services for

    many non-core business activities, including order management, billing, customer care, e-mail, and service

    assurance. Entrusting these business processes to a proven partner like KPMG Consulting enables you to

    reduce up-front investments and maintenance costs and allows your organization to focus on the products

    or services that are central to maintaining a competitive advantage in the marketplace. In addition, we

    provide online services that help our clients access the latest technological innovations without a large

    up-front investment.

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    M A N A G E D S E R V I C E S S O L U T I O N S 3

    Business Process Outsourcing is gaining momentumas organizations

    are opening up to outsourcing non-core, but critical, business processes

    to reduce costs, improve service levels, and sharpen their focus on

    core competencies.

    C. E. Unterberg, Towbin, Business Process Outsourcing,

    April 16, 2001

    As an example, by using our Managed

    Services solutions, our team has helped

    geographically dispersed organizations

    centralize and automate systems to hireand pay temporary employees from local

    agencies, enabling these organizations to

    transform a traditional bottleneck into a

    competitive weapon. Weve helped retailers

    focus more on selling products by taking

    away the burden of maintaining Web-

    enabled storefronts or online billing systems.

    With KPMG Consultings leading-edge Managed Services,

    you can:

    Lower your cost of capitalBecause weve already

    procured the equipment, your investment issignificantly smaller

    Focus on your organizations core competencies

    By eliminating non-core business processes from

    your organization, you are free to focus on your

    customers and the services or products that your

    organization provides

    Reduce overall riskBy taking advantage of our

    existing operational environment and our proven

    experience, your organization can avoid spending time

    and money on procuring equipment and building staff

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    A P P L I C A T I O N SM A N A G E M E N T

    B U S I N E S S P R O C E S SM A N A G E M E N T

    I N F R A S T R U C T U R E A N DO P E R A T I O N S U P P O R T

    I N F O R M A T I O N T E C H N O L O G YM A N A G E M E N T

    I N F O R M A T I O NT E C H N O L O G Y

    A N DI N T E G R A T I O N

    B U S I N E S S P R O C E S S S O F T W A R E

    H A R D W A R E / S T O R A G EN E T W O R K S

    4 K P M G C O N S U L T I N G

    WE UNDERSTAND YOUR BUSINESS.

    LET US HELP YOU CONTROL COSTS

    THROUGH MANAGED SERVICES.

    Increased reliance on technology has created a new foundation

    of Internet-powered platforms and applications at many

    organizations. Today, many forward-thinking organizations

    are aggressively applying business intelligence and innovative

    business processes to gain sustainable results from their

    investments. However, business transformation can slow down

    growth by diluting the organizations focus. As such, many

    organizations are engaging in relationships with Managed

    Services providers to create high-performance, sustainable

    solutions without sacrificing other areas of their business.

    S P E E D W I T H P U R P O S E

    Time-to-market is essential. But when new technologies are part

    of the plan, sound strategies and process innovation are equally

    important. We can help you implement Managed Services

    solutions quickly and reliably.We align with best-in-class

    technology providers to deliver industry-focused solutions that

    are based on proven technologies, experience, and innovation.

    With our Managed Services solutions, we offer Business Process

    Management and Applications Management. We integratebest-in-class applications and solutions to address your business

    challenges. We help you control costs and improve quality

    through our technology solutions, industry and technology

    experience, and proven strategies.

    In todays resource-constrained environment, competitive advantage

    will continue to accrue to companies that can install and implement

    the optimal IT infrastructure for their businesses before their

    competitors can.

    Jim Lebinski, Vice President and Research Director,

    Decision Tools, Gartner Measurement, January 2002

    Our teams leverage our Managed Services solutions to help

    you meet all of your business process needsfrom automation

    and management of business processes to our global network of

    Broadband Solution Centers, which proactively manage and support

    applications to ensure quality and performance. Our Common

    Commerce Infrastructure provides our Managed Services clients

    with transactional services capabilitiesincluding bill presentment

    and payment services and electronic payment processingwhich

    can be exchanged securely through our Certificate Authority (CA)

    security services.

    With our core IT competency and our infrastructure, only

    KPMG Consulting brings all of the necessary elements to the table:

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    5

    B U S I N E S S P R O C E S S M A N A G E M E N T

    Business process management is not a new concept; large

    organizations have been outsourcing non-core functions for some

    time. However, recent improvements in technology, coupled with

    increasing pressures for tighter fiscal management, are creating a trend

    toward the outsourcing of core business functions and an increase

    in market demand for high-end business process management.

    With our Business Process Management solution, we identify

    non-core business processes that can be run as a Managed Service.

    By leveraging our experience in business process analysis and

    management, our in-house facilities, and our strategic partnerships

    with premier hosting facilities, we can offer customers a tangible

    decrease in cost and a higher level of service.

    Contingent Workforce Procurement ( CWP) Solution

    One way weve helped organizations increase efficiencies and move

    toward operational excellence is through our Contingent Workforce

    Procurement solution. By offering an enterprise-wide, Internet-based

    offering, your organization can focus on more strategic roles, largely

    eliminating time-consuming administrative tasks. Our solution can

    help your organization:

    Reduce overall IT spending

    Increase efficiency

    Improve visibility and effectiveness

    San Fran c isco

    TEMPORARY/LABOR AGENCIES

    TEMPORARY/LABOR AGENCIES

    BANK BANK

    KPMG CONSULTING PLATFORMS

    BANK LOCATIONS

    BANK LOCATIONS

    BANK

    Seattle

    Dallas

    BANK

    BANKNew

    Yo rk

    Ch icago

    San Fran c isco

    BANK BANK

    BANK

    Seattle

    Dallas

    BANK

    BANKNew

    Yo rk

    Ch icago

    A N E XA MP LE O F A C WP P LAT FO RM

    [We] believe that most BPO services that combine process and

    industry-specific knowledge tend to create the greatest amount of

    intellectual capitaland be the most valuable solutions to customers.

    This is because vendors can generally have a better perspective of

    historical software, technology, and process structures for a particular

    vertical function.

    C. E. Unterberg, Towbin, Business Process Outsourcing

    Automating, centralizing, and streamlining a non-core process (in this

    case, a banks hiring of contingent workers) allows organizations to morequickly and efficiently engage and manage talented contract labor for

    IT functions and realize significant cost reductions. This secure, scalable,

    state-of-the-art platform also provides the highest level of service and

    value to your internal staff, who need quality temporary labor to work

    as efficiently as possible.

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    M A N A G E D S E R V I C E S 6

    With all of the complexities and added components that are now

    required to manage eBusiness, the managed service alternative is

    becoming increasingly attractive.

    AMR Research Outlook 2001: The Top Ten Technologies to

    Watch, January 1, 2001

    I N F O R M A T I O N T E C H N O L O G Y M A N A G E M E N T

    Applications Management

    Our Applications Management solution offers much more than

    a traditional applications services provider. We offer support for

    business process changes, patching, updates, and transactional review

    processes catered to your needs. We use a service control center to

    proactively manage and support applications, ensuring quality and

    performance. Staffed by experienced technicians who are supported

    by KPMG Consulting solution specialists, this service maximizes

    application availability and minimizes downtime through the use

    of best-in-class automated monitoring and trouble-management

    tools. We can identify and solve problems before they impact your

    performance, and support full reporting capabilities, ongoing

    enhancements, data fixes, and ad-hoc reporting.

    Regardless of where your applications residein-house, in our ownfacilities, or in those of our partnersour team can determine the

    most efficient and cost-effective route to reliable operations.

    Our primary focus is to provide applications management services

    for leading software packages such as Ariba, Oracle, PeopleSoft,

    SAP, and Siebel.

    We support your entire IT life cyclefrom formulating your

    initial strategy through development and integration of your core

    applications to providing day-to-day operational support either

    at your site, our Broadband Solution Centers, or that of your data

    center provider. Our service delivery model, diagrammed

    below, reduces costs and risks, and improves ROI.

    I N F R A S T R U C T U R E A N D O P E R A T I O N S U P P O R T

    In support of our Managed Services solutions, we have

    established an infrastructure and operational support structure.

    This support network includes:

    Common Commerce InfrastructureA suite of

    Web-based tools that provide your organization with

    transactional services capabilities, including bill

    presentment and payment services and electronic

    payment processing

    Certificate Authority CapabilitiesPKI-based security

    program that allows you to exchange information

    securely over an open network

    Broadband Solution CentersA facility that provides

    your organization with an arena for project develop-

    ment as well as hosting and network operations support

    Customer Call CenterA full-service, technical, 24x7,

    Web-based customer support center that provides

    access from any secure interface

    Monitoring ServicesProvides 24x7 reactive, predic-

    tive, and proactive monitoring of servers, firewalls,

    and applications

    Maintenance ServicesProvides timely management

    and application of patches, revisions, and fixes for your

    mission-critical applications

    Management ServicesProvides plans to apply our

    enterprise application expertise to your solutions, either

    by insourcing, outsourcing, or the custom match that

    best serves your needs

    DELIVERY

    MODEL

    BUSINESS

    STRATEGY

    CONTINUOUS

    IMPROVEMENT

    APPLICATIONS

    MANAGEMENT

    CUSTOMER

    SUPPORT

    DATA

    MANAGEMENT

    CUSTOM-IZATION

    APPLICATIONSINTEGRATION

    S E RV I CE D E LI V ER Y M O DE L

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    7 K P M G C O N S U L T I N G

    C A S E S T U D I E S

    Bank executives at a large global financial institution knew

    that in order to maintain its current leadership status, the

    bank needed to streamline its processes involved with

    hiring and managing temporary employees and services.

    KPMG Consulting helped the bank achieve greater ROI

    by improving operational efficiencies and cost takeout

    with its contingent workforce.

    Operating out of more than 4,000 domestic offices,

    38 international offices, and almost 100 regional client

    telephone service centers, this bank is one of the largest

    online banks in the United States, with over 3 milliononline clients.

    Historically, the banks sourcing, hiring, and management

    of contract and temporary services was managed by its

    company-wide contractor management program. The bank

    procured a significant amount of IT contract and temporary

    services via phone, fax, and e-mail to augment its permanent

    workforce. The inefficiencies of this process resulted in long

    procurement cycle times, higher expense levels for contract

    labor, and an absence of vital information regarding supplier

    quality and performance. Bank executives sought an

    Internet-based solution with the capacity to support at

    least 500 suppliers and 3,000 contractors in the contractor

    management database.

    KPMG Consulting implemented an enterprise-wide, Internet-

    based software solution that would be available to the

    banks hiring managers, administrative staff, customers,

    suppliers, and contractors at any time from any location.

    Leveraging best-in-class technology, we enabled the bank

    to quickly and efficiently engage and manage talented

    contract labor for IT functions. This arrangement also

    positioned the client to expand its category offerings,

    generate an additional revenue stream, and improve

    customer acquisition while providing the highest level

    of service and value via this secure, scalable technology.

    Our rapid implementation schedule allowed for faster

    time-to-market, making this bank much more capableof achieving its aggressive ROI goals. The organization

    is now able to select better candidates in less time, improve

    recruiter and hiring manager productivity, reduce the time

    spent on processing paperwork, ensure that preferred

    suppliers are used, buy from the most competitive suppliers,

    and measure spending, process, and participant performance

    via reporting.

    C O N T I N G E N TW O R K F O R C E F O R

    A L A R G E B A N K

    The State of Texas, Department of Information Resources

    (DIR) was charged with establishing a task force to

    demonstrate the feasibility of conducting state business

    over the Internet. The DIR looked to KPMG Consulting

    to help create an online government framework and an

    online portal that provides citizens with 24x7 access to

    government operations.

    The DIR serves as the technology broker for the State

    of Texas and works through master contract agreements

    that can support dozens of state agencies.

    To make doing business with the government more

    convenient for citizens, the client wanted to provide

    them with access to government operations 24 hours

    a day, seven days a week. The Texas State legislature

    mandated the creation of an eGovernment Task Force

    that would test the viability of state agencies to conduct

    business over the Internet. The client decided to implement

    an eGovernment framework with services including

    application hosting, online payment functions, and

    Web site development services.

    KPMG Consulting developed a portal and all related

    supporting infrastructure that provides online transaction

    capabilities and Internet security. This was implemented

    and deployed with outsource services for electronicpayment, bill presentment, and certificate authority

    (digital certificates) for the DIR. Our team also provided

    infrastructure design, systems analysis and integration,

    Web and custom application development, business

    and functional operations, and data center support

    and management.

    Our team helped create the TexasOnline Web site, which

    is a flexible, scalable, secure conduit to information and

    services offered by the State of Texas. It also provided

    capabilities that enable and improve communications and

    business management between state agencies, businesses,

    and constituents. The added benefits of more efficient

    online transaction capabilities and Internet security areillustrated by customer service through-call reduction to

    state agencies, improved end-user satisfaction, more readily

    accessible information, and faster, more smoothly processed

    fee recovery.

    S TAT E O F T E X A S

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    8 K P M G C O N S U L T I N G

    B R O A D B A N D S O L U T I O N C E N T E R S

    KPMG Consultings Broadband Solution Centers are multimillion-

    dollar facilities that house hardware and software technologies from

    industry leaders and leverage high-bandwidth network connections

    for collaborative development of cutting-edge solutions. In project

    rooms, our professionals work with your team to develop and test new

    solutions with offsite team members participating in real time over the

    Internet. Using these centers will minimize your up-front investment,

    enable rapid implementation, reduce the impact of your existing

    operational systems, and lower travel costs. Once your applications

    have been tested, we support ongoing commercial operations on site

    or can continue our monitoring, maintenance, and management

    while transitioning the servers to your site or to one of our global

    hosting partners.

    KPMG Consulting is one of the worlds most respected business

    advisors and systems integrators. We build enduring relationships with

    our clients by helping them create new business models and innovative

    solutions, enabling organizations to leverage technology for stronger

    return on investment and enhanced service to their customers,

    vendors, and employees.

    From business systems strategy to implementation, we combine our

    industry knowledge with technology experience to deliver results-

    focused solutions quickly. By partnering with technology leaders, we

    provide leading business and government organizations around the

    globe with best-in-class solutions across every industry segment.

    If you would like to learn more about how we can help your

    organization, please contact us at 866-FOR-KCIN (703-747-6748)

    from outside the US and Canada) or visit our Web site at

    www.kpmgconsulting.com.

    T H E B E N E F I T S O F W O R K I N G

    W I T H U S

    T H E N E X T S T E P S

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    2002 KPMG Consulting, Inc. All rights reserved. Printed in the USA.KPMG Consulting, Inc. is an independent consulting company.C505-0402-01-MSRD105

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