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IT Strategies To Manage The Downturn And
Emerge Stronger When The Economy Turns
Around
Anand Sankaran
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How Is This Downturn Different For The CIO
The CIO has a critical role to play in thecurrent market scenario
IT is now tightly integrated with corebusiness processes
IT is integral for the businesscompetitiveness and success
As a business leader, the CIO will have tomake key decisions in:
Reducing costs without impact to business
IT investment to retain competitiveadvantage
Have a transparent way of measuring:Value Delivery and competitive advantageof IT to business
Return on Investment of IT
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The Challenges Get Bigger When««
While cutting costs is inevitable, the bigger challenge isin:
Making strategic IT investments to increase revenues and build new efficiencies
Retaining competitiveness and differentiation when theeconomy gets better
Continuously Improving customer experience andsatisfaction
Retaining and motivating talent
The CIO will play an important part in shaping how a company manages in the downturnand comes out stronger when the economy rebounds
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Wipro Recommends
7 Strategies For The CIO
To Face The Downturn
And
Emerge Stronger When The Economy Turns Around
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#1 ± Make Infrastructure an On-Demand Service -
Manage it like a Business Process
Remote Delivery of IT Services - Better
Service levels at lower cost and risk
Platform As A Service ± make your edge
computing a utility service
DC As A Service - Assets,Hosting and
Management
Managed Security Services ± Compliance,Firewall, Incident and Intrusion Management
Transform infrastructure to a pay-per-use service. Manage it by technical and business
SLAs
Wipro has ISO 20001/27001 remote IT service centres, servicing more than 225clients, resulting in service improvement and saving of up to 30%
Cost
Self
Help/ Heal
D o w n t i m e
Remote
Onsite
/Own
Services & AssetOutsourcing
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#2 ± Use Cloud Computing, Utility Computing and
SaaS
Cloud Computing is becoming a way of life. The market is expected to grow at a CAGR
of 77% from 2008 ± 2010.
Migrate standard business applications to the Cloud/Utility Model to get: Access to capacity (elasticity) - Rapid scale up/down on demand
More Efficient Infrastructure relative to Internal Infrastructure
Reduction in System management effort/cost
Application currency and faster ROI
Wipro offers Cloud computing models for Industry clusters and standard Business Applications
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#3 ± Go Green with Virtualization and Green IT
Consolidate distributed and under-utilized server clusters throughVirtualization
Reduce hardware footprint toachieve saving in costs, realestate, and maintenance
Build energy efficient Data centers
Intelligent Building Managementsystems to save power, water and
lighting
Wipro has implemented Virtualization projects resulting in reduction of hardware spend
of over 34% and improving server utilization to 80-90%. Also setting up a Green DC for a leading Telco.
Use Virtualization, Green IT and Intelligent Building management Systems to slash
recurring costs
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#4 ± Drive Productivity from Unified Communications
Remove the duplicity your organization carries in parallel hardware, software and
services for Voice and Data
Replace multiple ³Integration
Points´ with single integrated
communication infrastructure
Use fewer devices that are eachable to access all communication
types
Have Centralized Support
instead of separate support
teams
Open new channels for customer
touch points and revenue
streams
Wipro, along with its partners has worked with companies to implement the UC strategy
and rolling out an integrated communication infrastructure, resulting in communicationcosts reducing by more than 23%
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#5 ± Reduce IT Costs Without Impacting Performance
Or Business
Get a Third Party to audit and validate ITinvestment decisions
Rationalize Application portfolios, technologystacks and platforms
Revisit SLAs ± do you really need 99.99%uptime?
Revisit Hardware specifications ± Do your PCs really need expansion slots, parallel
ports, or even hard disks?Move from CAPEX to OPEX model for ITpurchases ± pay from what you earn
Contract/License renewals ± Work with your IT partner to get better rates
CIOs will have to live with slashed IT budgets. The challenge is - to cut costs without
impacting output.
Wipro works with many companies to reduce/optimize IT spend, and engages as a truepartner in a gain-share model by underwriting the TCO reduction
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#6 ± Consolidate Vendors And Align Contracts To
Business Achievements
Output/Performance based pricing models linked to SLAs
TCO centric models ± an up-front commitment to reduce TCO
Consolidating vendors across end-to-end business processes(instead of technology stacks)
Increase contract duration for better planning and leveraging ITinvestments
Measure vendor performance on:Business Transformation
Business Revenue GoalsNew Business capability and New Revenue Channels
Time-to-market and Business Agility
Consolidate vendors to reduce Governance cost, accountability dilution, and vendor risk.
Make vendors your partners to share risks and costs of IT
Wipro works as a true IT partner to companies in a risk-reward compensation modelbenchmarked on Business Goals and Revenues Achievements
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#7 ± Make Targeted IT Investments To Increase
Organizational Efficiency And Revenues
Invest in Technology to
Enhance Customer experienceReduce Revenue Leakage
Improve Employee Productivity
Data Analytics and Business
Intelligence
Targeted IT investments can have 10 times more impact than traditional IT cost
reductions ± A HBR survey
Wipro has worked successfully with many organizations through multiple economic
cycles, helped them develop competitive advantage and emerge stronger in response tomarket conditions
Ar eas of IT Investments to achieve Maximum Impact
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I would like to leave you with a few thoughts«.
A downturn in the economy is disruptive ± Manyindustry leaders fall to the wayside and newcompanies become market leaders
IT will play a big role in sustaining competitiveadvantage, cost reduction, and revenueenhancement
A strong IT partner will help the CIO lead his
company through these turbulent times andprepare for the economy turn around
Thank You!