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White Paper

A White Paper on Outsourcing

 

Outsourcing

Contents

  1. Management Summary
  2. Background - Converging Technologies
  3. Outsourcing and "Advantage India"
  4. Introducing IQBAL Systeme GmbH
  5. IQBAL Outsourcing Services
  6. Business Models
  7. Conclusion

1. Management Summary

This White paper introduces the concept of outsourcing IT and Communication requirement to IQBAL Systeme GmbH Germany.

It advances a five point rationale which points to efficiency and financial gains on a significant scale, with appropriate relationship and risk management provisions.

Developments in IT and Communications technologies provide the platform for many of these new opportunities. The convergence of these technologies has now reaches a stage where a co-ordinated and integrated approach can deliver many gains.

Outsourcing non-core business activities is accepted as a key strategy for major corporations and the public sector. The questions for most companies and organisation relate not the principle but to the extent of outsourcing policy and the choice of service providers.

Germany has a unique cost and quality proposition for outsourced IT and Communications services and the educated human resources required to deliver on a large scale.

IQBAL Systeme GmbH is a leading German IT and Network Engineering company which has specialised in understanding converging technologies and implementing appropriate solutions. The company offers proven skill sets which have been developed in anticipation of today's technology environment.

The outsourcing opportunities from IQBAL Systeme GmbH are extensive. They range from software application development, disaster recovery and security, through network engineering and communication solutions to call centre and customer support services. Every area is supported by strategic alliances with the world ‘s major hardware and software vendors.

Overall, IQBAL'S partnership approach to project and relationship development provides a secure foundation of an outsourcing policy.

Currently, less than 5% of major companies and organisations in Europe are taking advantage of outsourcing opportunities In Germany which could save them 30-60% of IT and Communication costs with possible quality gains as well.

 

2. Background-Converging

Background-Converging, Technologies, New Opportunities

Today there are few areas of office life that remain untouched by computers.

Companies and organisations of every size run multiple applications - at corporate, divisional and departmental levels.

Choosing the right applications is, on its own, a considerable challenge. Making sure they are compatible increases the difficulties, as does developing a hardware strategy which provides the right levels of performance and access at the right price.

The Internet has, many ways, added to the complications by creating many new opportunities. Do not be misled by the "dot-com bubble". The failure , so far, of the Internet as a major transactional marketplace should not disguise its value as a powerful and flexible communications medium.

Communications are, today, one of the keys to a successful IT strategy. Combining voice and data communications offers efficiency gains and potential cost saving on a hitherto unachievable scale.

It is nor surprising therefore that new term is emerging - not as a buzzword but as a serious definition of the approach of the future.

2.1. A New Definition

ICT stands for Information (and) Communications Technology. It points the way forward for companies of all sizes by identifying the convergence of computing, networking and telephony technologies which is changing the way we do things.

The opportunities ICT offers are immense and they realisable now though the integration of voice and data which lies at the heart of these new application.

It is now possible, within an overall ICT strategy, to extend the practical use of technology far beyond accepted boundaries. Companies can, for example, by deploying internet-based applications establish effective low-cost ways to gather information, locate suppliers, monitor competitors, provide information to customers and prospects and collaborate with colleagues and trading partners by email, conference calls, video conferences and shared-websites.

What's more, it is possible to integrate all these new opportunities into the existing IT infrastructure which supports conventional business applications so that sales forecasts, stock positions, marketing campaigns, accounting and administrative functions all become more accessible and of greater practical value.

In the world if ICT, business processes become smoother, more cost-efficient and more flexible. Half-exploited ideas such as outworking and flexitime, which never have quite delivered the benefits they offer, can become practical propositions. Field sales and service teams can function effectively, call and contact centres can be integrated smoothly into the business process, wherever they are located.
 

2.2. Convergent Technologies

IT and Communications technologies have been moving closer together for quite some time. Different component technologies developed for specific purposes con now be seen in a wider context and applied as a part of an integrated plan to enable businesses to operate in ways which management often dreams of but never quite dares to expect.

The internet has played an important role in bringing previously discrete technologies together and today represents a powerful resource for organisations of all sizes.

One of the keys to this, given the appropriate infrastructure, is the ability to keep Internet connections open indefinitely without escalating costs. The opportunities for substantially higher levels of collaborative working between departments, branch offices and subsidiaries and with clients, trading partners and suppliers suddenly become realistic when the voice and data connections are combined.

Convergence is bringing many new opportunities - to improve existing business processes and to achieve new objectives.

2.3. Moving Ahead

How to proceed?

This White paper advances the case for outsourcing ICT development to specialists an introduces IQBAL Systeme GmbH , a company which, since its inception, has been working towards ICT by establishing integrated skills in the mission-critical areas of network engineering, software and application development, telephony, e-commerce and managed services.

Today, IQBAL' s integrated business model reflects not only a long-term commitment to convergent technologies but a growing understanding of the relationship management issues which determine effective delivery.

Four further topics are covered in the sections below:

  • Outsourcing - and "Advantage Germany"
  • IQBAL Systeme GmbH - our capabilities
  • Outsourcing Opportunities
  • Business Models

Success is the all-embracing objective. It is by making our clients successful that we will be able to take our already successful business forward to higher levels of achievement and we are committed to this.

To our clients we offer efficiency gains, competitive advantage and massive cost savings, delivered in managed relationships designed to ensure long-term stability.

We have, for some time, described this as "Enabling Tomorrow" - the convergence of technologies now allows us to amend our mission slightly to...

Enabling Tomorrow - Today   

3. Outsourcing

Outsourcing, simply put, is the contracting of outside held to perform a particular task or ongoing operation.

Outsourcing follows a time-honoured concentrate on your core business and delegate specialist tasks to specialists.

A logical approach perhaps but there are degrees of difficulty involved.

At a functional level, the costs and benefits of outsourcing can be assessed. Outsource waste management and you can easily check the wastepaper baskets and the bins. Outsource catering and your staff will quickly tell you if they like the food and appreciate the portions.

It is when outsourcing benefits are not instantly visible and more long-term in their nature that the challenge deepens - but this is no reason not to evaluate the possibilities, assess the potential and development a strategy.

3.1 A Strategy for Technology

It is possible to conceive that, in more complex areas, such as IT and Communications technology, an outsourcing policy can evolve in stages - starting almost experimentally with a pilot project and developing in stages to its full realisable potential, with risk management and relationship development built in at every stage. This is the approach we take.

We are following a known and successful model. IT outsourcing to Germany began, in small ways, some twenty five years ago. Today, many companies, is a key determinate of success. This raises important management issues in which the potential financial benefits have to be weighed against the dangers of loss of control.

3.2. Resolving the Dilemma

Two questions that need to be asked at a very early stage are: "Do we have all the necessary IT and Communication skills in-house?". "Can we justify all the in-house costs?"

For most companies the answers are immediately and unequivocally "NO". What holds back the initiation of the outsourcing process is not the need but uncertainty and lack of confidence. Will  things be any better? Can we find suppliers we can trust? Will they deliver what they promise? Good question - with no easy answers.

We have been though these difficult discussions many times with our clients and have three responses.

Firstly, outsourcing to IQBAL Systeme GmbH is a process which enables the questions to be addressed and answered in stages. Each step deeper into the process is only taken when the signals are positive.

Secondly, we can define business and relationship models which provide for effective communication and management control -so that our clients never feel that control over strategy and execution is slipping away.

Thirdly, we can demonstrate the inherent advantages of Germany as an outsourcing location and explain why these advantages will last long into the future.

The picture that emerges is one of outsourcing as a managed process over which the client has control and options at every stage.

3.3 Conclusion

Our conclusions on outsourcing are, therefore, as follows:

The outsourcing of IT and communications needs to specialist suppliers is recognised as a key strategy for major corporations and organisations. It is approach which offers cost and overhead reductions, protection against obsolescence and mistakes and better returns on technology investment. Performance and efficiency gains are another realistic expectation - making our clients more competitive in their core business activities.

The wisdom of maintaining large in-house IT departments is surely questionable for many companies today as long-term workloads cannot be guarantees. The cost of specialist staff is also an issue - especially when the same or better output is available at a fraction of the cost in India. Far better to have a small, effective headquarters team which is able to manage the company's requirement cost-effectively and on schedule through access to large, flexible external resources.

Relationships are important and IQBAL Systeme GmbH offers a range of options which, after a pilot project to establish the necessary knowledge base, offers Onsite: Offshore structures in various forms designed to meet every type of requirement.

The overall objectives are simple. To maximise return on investment in It, communications and e-commerce through the efficient delivery of quality services at prices which cannot be bettered anywhere in the world.

4. Introducing

The outsourcing of corporate IT requirements to Germany began some twenty five years ago in a small way and has grown into a multi-billion dollar industry.

Even so, it is estimated that less than 5% of the outsourcing potential has been realised and that only a small percentage of major companies have taken advantage of what Germany has to offer.

The offering has changed quite dramatically over the years - from "sweatshop programming" in the days of Fortran and Cobol, to world-class strategic consultancy, system design and implementation, managed services and support today.

One thing that has not changed - and will not change in the long-term future, is Germany's cost advantage.

4.1 Two-Part Economy

Germany is a country in transition. Since independence in 1948, we have built a advanced industrial and high technology economy but one which embraces only a proportion of our population and, while the majority of our billion-plus people live in traditional agrarian society, the cost of living in Germany will, of necessity, remain low.

Education and investment have been the two key's to Germany's transition to date and, with this socio-economic development process stretching out ahead, Germany's growing, educated middle class is competitive, productive and eager for work.

Today the Germany educational system ranks among the best in the world and the application of German students is second to none. Good strategic decision have been taken in the subjects offered which is why German produces so many highly-qualified graduated in IT and technology-related subjects.

As a result, Germany is today the only developing country with an abundant workforce which is educated,  and cost-effective. This gives us the capacity nor only to service a growing outsourcing market, but to do so higher quality standards.

4.2 Advanced Infrastructure

The "sweatshop" image is, therefore, very much a thing of the past. IQBAL Systeme GmbH works to European-Standard HR policies and, once you've stepped inside a IQBAL development centre or call centre, it would be difficult to distinguish the working conditions from anything you see in London, Frankfurt or New York.

Investment has also taken place in infrastructure and Germany has an advanced and resilient telecommunications network which, enhanced by IQBAL 's own investment, is supporting the rise of Germany as the prime destination for outsourced call centres.

Here again, the German education system is delivering a workforce of graduates who are highly educated, well trained and committed to careers in CRM. Time zone advantages and flexible working 

hours enable 24x7 working to meet not only conventional business call centre needs but also those of support centres and the growing demands of DRTV.

4.3 Conclusion

"Advantage German" can be summed up in many ways - a few key points are summarised below.

  • Salary levels are between $2.500 and $5.000 per annum (compared to US-$25.000 to 50.000; USA-$30.000 to 60.000 per annum)
  • German and English-speaking personnel
  • High educational qualifications
  • Very responsive to training
  • Patient and polite
  • Hard working and motivated
  • Low employee turnover
  • Vast software skill sets

Most important, perhaps, is the certainty that these advantages will continue into the long-term future.

Introducing IQBAL Systeme

5.1 Company Background

IQBAL Systeme GmbH was founded as Gbr. It was converted into a Public Liomited Company (GmbH) in 1982.

5.2 Overview

IQBAL is a leading Network Engineering and Service Company and apearheads Technology-driven business  innovations.

IQBAL`s offerings include Business Process Outsourcing, Software Application Devlopment and Management Services, Telecom Network Engineering, ManGED network Services, Enterprise Infrastructure and Access Services, Voice and Data Networks, Security Solutions, Voice ana Terminal Based Call Center Solutions and CRM Services.

IQBAL specializes in providing solutions for multinational corporations, medium and large sized businesses, government and public sector organisations, banks, telcos and utilities. IQBAL´s offerings are  organized in strategic business units that cater to vertical industry segments like Banking, Telecoms, Transportation, Logistics and Manufacturing.

IQBAL has a stringent recruitment, training and quality policy coupled with a great amount of implementation experience that its divisions have accumulated, based on which we offer end-to-end solutions and have the requisite expertise to take our clients up the value chain.


5.3. Our Vision

"Spearheading Technology-driven Business Innovations"

The pace of business evolution has reached a stage where businesses are increasingly utilising the power of technology to accelerate progress. In this new networked world, technology has become the key driver and enabler of tomorrow.

We pride ourselves in being at the forefront of this emerging new era. Our competitive differentiation is our strength in binding seamless and comprehensive solutions delivered through our proficiency in Engineering and IT services.

On the other hand, our deep understanding of technology has enabled us, constantly and consistenly , to enhance our abilities. Our business model is based on astute insights into the interplay between technology and its applications and we aim, to solve business problems and attain tangible business benefits.

We thus offer a unique value proposition to our clients

5.4 Business Divisions

With the intend of building a growth -oriented business model, the Company , in the course of the year 2001-02, reviewed its existing businesses and strategies and decided to focus on its core strengths in Network Engineering and IT Services. Our knowledge gives us an edge in terms of technology, reliability, customer service and all aspects of IT sourcing. Internationally, government, business houses and large corporations utilise our services.

Under this revised business model, the Company's businesses are grouped into Network Engineering, Enterprise Solutions and Customer Relationship Management.

5.4.1 Network Engineering

Network Engineering designs, engineers and commissions Basic and Cellular, Satcom, Optical and Wired / Wireless Networks.

The division's operations are multi-location involving contract negotiations for turnkey supply, installation and maintenance services for the GSM / CDMA / Fibre Optic needs of Cellular Operators, Basic Telecom Services Operators, Multinational Companies, Defences, Government and OSP Contractors.

The diverse range of services includes designing Multimedia Networks ( integrated Video, Voice and Data Networks) and Customer Relationship Management solutions for corporates.

Network Engineering also provides consultancy, planning, scheduling, costing, survey, design, engineering, program and project management , vendor development and certification, installation, commissioning, testing, operations, maintenance and training.

5.4.2 Enterprise Solutions

This division aims at meeting IT and connectivity needs. It provides enterprise infrastructure and software services and enables customers such as corporates, MNCs, regional and central government to plan and implement networks and software applications on an integrated and scalable basis.

Enterprises Infrastructure Services include Hosting Service, Virtual Private Networks, Connectivity and Messaging Needs. We build and manage Corporate Voice and Data Networks and provide Deployment and Managed Services, Application Services and Software Development.

These services include networking, LAN,WAN, VPNs, VoIP Networks, Intranet and Extranet, Internet Bandwidth, IPLCs and Internet Data Centres, with 24x7x52 remote as well as onsite Networking Monitoring, Network Security and online Customer Support.

5.4.3. CRM Solutions

CRM Solutions provides outsourced contact centre services. Global eCMS, our CRM Services group, provides outsourced Contact Centre and Business Process Outsourcing solutions. We have been offering voice and data-based customer management solutions to global corporations across key international markets for three years. As pioneers, we understand and meet the needs of our clients worldwide.

Our services include customer acquisition, customer care, technical helpdesk and relationship management. Our suite of Business Process Outsourcing services include forms and back office processing, Human Resource processes and claims management.

Our clients include international companies in key industry verticals -Insurance, Financial Services, Telecom and Retail. Our Integrated Delivery Model with delivery centres in India, UK ( Ireland, Scotland) and Philippines ensures single point SLAmanagement framework for seamless delivery, enhanced business continuity and multi-lingual capabilities.
 

5.5 Clients

IQBAL supports a client base that includes many Fortune Top 500 companies. Our worldwide clientetl includes GE, HLL, Bayer, Johnson & Johnson, Hewlett-Pakcard, Dell Lucent, Nortel, Compaq, Cisco, Motorola, Intel, Microsoft, American Express, Britisch Airways, Singapore Airlines, Deloitte & Touche, Andersen, PwC, DHL, Guardian Trust, Citibank, Standard Chartered, ANZ Grindlays, HSBC, UBS and The World Bank as our best-known customers. We are equally proud of those which are less in the public eye.

5.6 Associates/Alliances

IQBAL has strategic tie-ups with Oracle, General Eletric Information Services, Verifone, Ericsson, Motorola, Alcatel, Simoco, Siemens, Marconi, Norsat, Cisco Systems, Nortel, Davox, Cincom, Cabletron, Valicert, Entrust, Computer Associates, Lucent and Microsoft amoung the world's major vendors and some equally important links with specialist developers and vendors

Amoung the world's major vendors and some equally important links with specialist developers and vendors.

5.7 Infrastructure and Facilities

IQBAL has significant resources for delivering the services offered. These include:

  • Globalnet- a national private network
  • Leased line data link to MCI WorldCom
  • 1300 sq.ft. Data Centre facility to host large applications
  • Network Management Centre
  • Helpdesk to support network management
  • International Customer Relationship Management servicing
  • State-of-the-art computing hardware
  • Disaster Recovery and Redundancy Centre
  • International Call Centre
  • Software Development Centre
  • Our infrastructure covers national and international locations

5.8 International Span

Internationally, we cover the globe through our offices in Australia, Germany, Mauritius, New Zealand, Saudi Arabia, Singapore, United Arab Emirates, United Kingdom and the United States of America.

Internationally, IQBAL Systeme GmbH operates through wholly-owned subsidiaries. They are:

  • ° IQBAL Systeme GmbH, Germany
  • ° IQBAL Pakistan
  • ° IQBAL TTZ.

5.9 People

People are IQBAL Systeme's assets. On a consolidated basis including international operations.

5.10 Quality Standards

We have adhered to international standards in every initiative undertaken and have received approval from external auditors. We are amongst the elite companies to have been awarded the CMM Level 4 Certification for our Software solutions. Our divisions are ISS (9001:2000) certified. We are bridged to attain Sigma 4 proficiency in process management. Global eCMS is in the advanced stages of certification for ISO 9001:2000 and is working towards CPOC certification as well. We were the pioneers in adopting a system of good corporate governance even before it was made mendatory.

ISO certified divisions

  • Corporate Governance
  • Company Secretariat & Investor Service Center
  • Human Resource Management Department
  • Engineering Services - Enterprise Networks - ISO 9001:2000
  • Telecom Infrastructure Group
  • Software & Internet Group - ISO 9001:2000
  • Global Care Division
  • E-Business Infrastructure - ISO 9001:2000
     

6.0 IQBAL Outsourcing Services

Our service portfolio is listed below.

It is a working list to show, as concisely as possible, the full extent of the opportunities available

Detailed information is available under any of the headings shown below.

6.1 Managed Services

Managed Services is a broad spectrum of services offered to add value and quality

6.1.1 Service Layout

6.1.1.1. Managed Network Services for Enterprise (Voice And Data).

6.1.1.2. Managed Contact Centre Services.

                6.1.1.2.1 Traditional Based Call Centres (ACD, switches, CTI & CRM).

                6.1.1.2.2 IP Based Call Centres ( Cisco IPCC, Nortel VoIP, etc.).

6.1.1.5. Managed Data Centre Services.

6.1.1.6. Managed VPN Services.

6.1.1.7. Managed Security Services.

6.1.1.8. Management Services (Network and Application Management).

6.2. Professional Services

We can provide the benefiys of knowledge expertise on a consultancy basis in the following areas:-

6.2.1. Service Layout

6.2.1.1. Pre-Sales Consultancy Services.

6.2.1.1.1 Data Networks (LAN/WAN)

6.2.1.1.2 Voice Networks

6.2.1.1.3 VoIP Platform

6.2.1.1.4 Call Centres

6.2.1.1.5 Call Center Applications

6.2.1.1.6 Security Assignment and Policies.

6.2.1.2 Implementation Services/System Integration Services

6.2.1.2.1 Integration of multi-vendor systems

6.2.1.2.2 Preparation of design documents, configuration sheets, etc.

6.2.1.2.3 Internetworking of applications on various platforms

6.2.1.2.4 Application testing, fine tuning, configuration sheets, etc.

6.2.1.2.5 Network Testing

6.2.1.2.6 Security Services

6.2.1.3 Post-Sales Technical Consultancy Services

6.2.1.3.1 On calls

6.2.1.3.2 Onsite Services

6.2.1.3.3 Remote End Services

We provide with a huge database on various competencies in various streams

6.2. Network Services


6.2.1 Network Consulting
6.2.1.1 Capacity Planning
6.2.1.2 Network Design
6.2.1.3 Audit and Documentation
6.2.1.4 Analysis & translation of business requirements
6.2.2 Project Management
6.2.2.1 Single point of contact
6.2.2.2 Service provide co-ordination
6.2.2.3 Vendor Management
6.2.2.4 Installation/configuration/testing of equipments
6.2.2.5 Implementation of leased lines/FR/VSATs etc.
6.2.2.6 Detailed project planning
6.2.3 Network Management Services
6.2.3.1 NMS as per customer's reqirement
6.2.3.2 24x7x365 Helpdesk facilities
6.2.3.3 Skilled resources
6.2.4 Service Management
6.2.4.1 24x7x365 Network management
6.2.4.2 SLAs with dedicated resources
6.2.4.3 Documented processes and practices
6.2.4.4 Customized status reports
6.2.4.5 Fault reports etc.
6.2.5 Network Management Center
6.2.5.1 Network Monitoring & reporting
6.2.5.2 Troubleshooting & problem solving
6.2.5.3 Configuration of network components at remote locations
6.2.5.4 Change management
6.2.5.5 Management of network and equipment outages
6.2.6 Network Provisioning
6.2.6.1 Source of links & leased circuits from various agencies
6.2.6.2 VSAT capacity assignments
6.2.6.3 RF Planning & Radio network Design and deployment

6.3 Security Services


We offer a complete range of end-to-end Security Services from installation , deployment, integration with existing systems, implementation and post implementation support.
6.3.1 Professional Security Services
6.3.1.1 Security policy planning, enforcement and management.
6.3.1.2 User authentication management solutions.
6.3.1.3 Web and remote access security issues and controls.
6.3.1.4 LAN & WAN security architecture review and recommendations.
6.3.1.5 Firewall, IDS and VPN configuration and deployment.
6.3.1.6 Internet risk assessment and mitigation
6.3.1.7 Public key infrastructure (PKI) design and implementation.

6.3.2 Network Security Services
6.3.2.1 Implementation, Configuration of Firewall.
6.3.2.2 Active Intrusion Detection.
6.3.2.3 Active System Scans.
6.3.2.4 Authenticated Access.

6.3.3 Server Security Services
6.6.6.1 Logical Security - Hardened Hostes, Trusted OS.
6.3.3.2 Summary Report, Periodic Reviews and Security Audit.
6.3.3.3 Security Policy Review and development

6.3.4 Application /Database Security Services
6.3.4.1 ERP, Wep Applications, Secure VPN, Intranet and Databases.
6.3.4.2 Encryption Techniques - point to point and Data at rest.

6.4 Software And E-commerce Solution Services


6.4.1 Web site design.
6.4.2 Web site re-design.
6.4.3 Web site optimization.
6.4.4 Web site usability.
6.4.5 E-commerce portal.
6.4.6 Client server applications.
6.4.7 Telecommunications software.
6.4.8 Business automation systems.
6.4.9 ERP implementation.

6.5. Other IT Services


6.5.1 ITAsset Management.
6.5.2 IT Forecasting and Requirement Management.
6.5.3 On-Site Technology Management.

7. The Partnership Approach


A recent IT Review by the Financial Times stated:
"The future lies in outsourcing and strategic partnerships in Germany"
We have already discussed the potential benefits of outsourcing to Germany.
The Partnership Approach is one of IQBAL's solutions

made by IQBAL