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Strategic application outsourcing: Zurich FSProduct Type: Market Research ReportPublished by: Datamonitor Published: July 2005 Product Code: R313-11194 Description IntroductionStrategic application outsourcing is emerging as a key trend in the application outsourcing market. The brief outlines Datamonitor's view of this emerging market and analyses the Zurich Financial Services CSC deal, worth an estimated $1.3bn over seven years. The brief focuses on outsourcing drivers, IT organizational structure, procurement, transformation and retained functions Scope The brief gives a market overview analyzing trends and developments in the application outsourcing market focusing on Zurich Financial Services. Contextualizes the Zurich Financial Services - CSC contract through analyzing Zurich's background and overall IT strategy Examines the objectives set out by Zurich, the means by which it has set out to achieve these with CSC and the resulting structure and processes Highlights FSIs are increasingly accepting of using offshore resources and are keen to capitalize on the benefits. However, after years of offshore dominated development of the application services market, increasingly credible global sourcing strategies are putting the proverbial ball back in the court of the traditional onshore vendors. Zurich's retained function is a strategy, management and vendor liaison function. The retained function is responsible for the business relationship with CSC, for setting out the strategic direction of development, for translating business needs into IT requirements and for interactions with the outsourced function at all levels. Transformation of the application services function and of the benefits delivered to the business side were fundamental drivers for seeking an outsourced solution for Zurich. The effort has thus far has been centered on: -staff, -software portfolio and -process. Reasons to Purchase Learn from the market shaping strategic application outsourcing deal between Zurich FS and CSC Understand the dynamics and growth potential for the application outsourcing market to improve marketing and sales efficiency Understand the key success factors that vendors addressing this market need to be aware of in order to be successful over the next 18 months Table of Contents TABLE OF CONTENTSCHAPTER 1 INTRODUCTION 5 CHAPTER 2 MARKET CONTEXT 6 Introduction 6 Strategic application outsourcing changes deal structure 6 Core applications increasingly outsourced as market confidence in vendors grow 6 Role reversal as onshore becomes key to strategic outsourcing? 7 CHAPTER 3 ZURICH FINANCIAL SERVICES CASE STUDY 9 Background: outsourcing as a reaction to overall IT startegy 9 Key deal facts 10 Application outsourcing objectives 10 Impact of outsource impact on structure and process 11 Retained function 12 Transformation of outsourced function 12 Change initiatives and procurement 13 CIO check list 15 CHAPTER 4 APPENDIX 17 Future readings 17 SPP writing team 17 LIST OF FIGURES Figure 1: Organizational structure has been transformed 11 Figure 2: Technology decision framework for Zurich-CSC relationship 14 Figure 3: Outsourcing check-list based on key CIO take-outs from the Zurich-CSC relationships 15 |
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