1 management information systems division application support outsourcing presentation to industry...

Management Information Systems Division 1

Application Support Outsourcing

Presentation to Industry

24 July 2006

Management Information Systems Division

General Procurement Service


Application Support Outsourcing Agenda

• 14h30-15h00 Drivers, objectives and scope– P. Soerensen, Head of Management Information Systems Division

• 15H00-16h00 Application Support Management– L. Mastrangelo, M. Douzal, Management Information Systems

Division

• 16h00-16h30 Tender and Contractual Aspects– S. Benetti, Head of General Procurement Service

• 16h30-17h15 Coffee Break• 17h15-17h30 Transition and Schedule

– S. Benetti, Head of General Procurement Service


Drivers, objectives and scopeP. Soerensen, Head of Management Information

Systems Division



Drivers and Objectives• Establishment of clear internal / external

responsibilities and reporting lines

• End-to-end system approach to the applications

• Integrated service approach

• Economies of scale, reduction of costs

• Better use of the market for standard services

• Separation of projects and services

• Improved performance of applications

• Increased user satisfaction

• Streamlining of supplier interfaces (single contract)


Scope

• Strong Management by Prime• Assure Governance, Quality and Performance

management of the service• Assist the users in exploiting the applications• Perform the administration of the applications

and of the data• Detect, identify and remove defects• Implement the minor evolutions made

necessary by– New requirements– Evolving environment and Technical considerations


Coverage – ApplicationsL.Mastrangelo Management Information Systems

Division



Coverage List of Applications

• Granularity = individual application

• Coverage for each application can be – Full

– Functional Support only

• 43 apps in initial scope (info cards)

• 9 more applications known to be inserted– 7 in FS mode, 2 in full mode


Overview of the Applications


CoverageApplications per Area

3

2 2 2

4

0

1

2

5

7

9

4

8

3

0

1

2

3

4

5

6

7

8

9

10

Large Small


CoverageApplications per Architecture

• Lotus Notes (21)– 2 large, 19 small

• Web (22)– 7 large, 15 small

• Client/Server (9, accessed via Citrix)– 4 large (SAP, Smartstream, Archibus), 5 small

• Tecnology:SUN – Oracle – Sybase - Microsoft - Novell – BO


CoverageMaturity of Application in initial

scope Year of first entry into production

3

8

1

9

3

8

0

1

5

3

2

0

1

2

3

4

5

6

7

8

9

10

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Applications


CoverageApplications Statistics (per Year)

Issue Type Number

• Problem Report 1.000

• Change Request 650

• Ticket (Help Desk) 17.000


CoverageEstimation of activities (Working Days per

Year)

Corrective Maintenace

30%

Minor Evolution27%

Functional Support

43%

Functional Support Corrective Maintenace Minor Evolution


CoverageESA’s best evaluation of documentation

status

75%

90%

60%

75%65%

80%

50%

85%

0%10%20%30%40%50%60%70%80%90%

100%

Busin

ess

Requirem

ent

User

Manual

Opera

tion

Manual

Serv

ice D

esk

Manual

Solu

tion

Definitio

n

Configura

tion

Item

Deliv

ery

Note

ICD

s

(Inte

rface

Contr

ol

Verification

and

Valid

ation

Document Type

Large Small Global


Application Support ManagementM. Douzal, Management Information Systems

Division



Application Support Management

• Approach

• Processes and services

• SLA

• Reporting

• Support tools

• Roles and Responsibilities


Application Support ManagementApproach

• Outsource complete and coherent service processes

• Select single Prime Contractor (CASP) in charge of– Overall service delivery– Service coherence and quality management

• Define Baseline and Delta services for flexibility– Baseline

• Delivered continually for a given set of applications• Paid through flat fee

– Delta• Delivered upon request• Based on WO contents and agreed unit prices


Application Support ManagementBaseline Processes and Services

• Functional Support / 2nd line– User assistance

– On-site presence at HQ, ESTEC, ESOC

– Execution of procedures (date or event driven)

– Troubleshooting

– Preparation of PR and CR

– Change Management

• Corrective maintenance

• Verification and Roll-out

• Service management and reporting


Application Support ManagementDelta Processes and Services

• Minor evolution

• Extension of service parameters– Extra Working hours

– Extension for the quality of service

– Extension of the Functional Support (on-site/remote)

• Engineering

• Options– Application infrastructure management (base or full)

– Site presence at ESAC


Application Support Management SLA’s

• CASP SLA / internal Customer SLA’s

• Issue classification and severity

• KPI– Observed, measured and reported

– 2 categories: subject / not subject to

penalties

• Quality matrix– Acceptable limit values assigned to KPI


Application Support Management Monitoring and Reporting

• Performance of overall Process and Service management

• Performance against service level targets for all KPIs

• Non-conformances to the SLAs with root cause analysis

• Penalties

• Trend analysis

• CA usage statistics• Statistics on the issues and tickets handled


Application Support Management Support Tools

• Knowledge Management

• Communication Management

• Change and Configuration Management

• Ticket Management

• Performance Management– CA Availability Monitoring

– SLA Monitoring

– Service Reporting

• Test Automation


• Application Customer / User

• Application Coordinator / Project Manager

• ESA Service Supervisor

• Technical Officer of the contract

• Application Infrastructure Services and helpdesk: new IT OSP

Application Support Management ESA interfaces


• Provides the funding for the Applications

• Has authority over the:– business process

– functionality

• Exercises the governance of the applications assisted by the User Group

ESA interfaces Application Customer


• Application Governance: final OPS-E authority for any decisions concerning the Application– Responsible for the application vis-à-vis the Customer

– Ensures that the Customer SLA is respected

– Manages the Delta budget

– Accepts the deliverables / Validates the releases

– Co-chairs UG and governance meetings

• Handles Application-related exceptions and escalations

• Main user of CASP’s service

ESA interfaces Application Coordinator


• Manages the Service– in particular conformity with SLA

• Handles Service-related exceptions and escalations

• Counterpart of CASP’s Service Delivery Manager

• Final authority for any decisions concerning the Service

ESA interfaces ESA Service Supervisor


Key Points

• Emphasis on governance– Efficient organisation– Strong management and monitoring system– Pro-active attitude

• Gradual reduction of number of problems / user issues

• Coherent collection of all Support data• Synergies and cooperation with all

interfaces


Tender and Contractual AspectsS. Benetti, Head of General Procurement

Service



Application Support Outsourcing Tender and Contractual Aspects

• Tender and Contractual Conditions

• RELAX AND CHATTING

• Transition Planning

• ITT schedule

• Questions and Answers procedure


Application Support Outsourcing Tender and Contractual conditions

(1)• Start-up and renewal

– Transition

– Duration 3 years + 2

• Termination and exit – Exit Phase – 6 month phase-out period on

exit

– Termination by Fault of contractor



(2)

• Variation of scope– Applications added / dismissed

• 2-month notice

• No cost for insertion/removal

• Addition normally in FS mode then full mode

• Possibility to hire independently manpower to solve the problems and CASP will pay for this.



(3)

• Sub-contractors– Prime free to select sub-contractors

NO EXCLUSIVITY AGREEMENTS

– Prime retains full responsibility and single interface

– Prime applies contract conditions to Sub

– ESA can veto change of Subs in Op Phase

– Change of Sub transparent to ESA


• Winning Bidder Selection elements– Customer References

– Price

• ESA Non-Member States subs participation to be proposed as option


(4)



(5)Financial provisions

• CA commitment for 3 years

• Minimum guaranteed (70% of initial baseline value)

• Cost decrease year-on-year

• Benchmarking and price alignment

• Penalties based on KPI


RELAX & CHATTING


Application Support Outsourcing Transition planning

• Transition Phase 1, Jan to Apr 2007– setup, familiarisation

– Incumbents fully in charge

• Transition Phase 2– Incumbents' exit phase, May to June 2007

– Specific provisions for knowledge transfer

• End of Transition Phase 2, June 2007– Incumbents as support to CASP

– SLA respected for, at least 3 weeks

• Operational Phase July 2007– CASP in charge and performing (responsible)


Application Support Outsourcing ITT Schedule

• 13 October 2006: ITT closing Date

• October/November 2006: Evaluation

• Mid Jan 2007: KO, start of transition

• July 2007: start of operational phase


• Written questions

• ESA answers via EMITS reply

Application Support Outsourcing Q&A

1 management information systems division application support outsourcing presentation to industry...

Documents

performance management

year slide

mode slide

area slide

initial scope slide

performance of applications

novell bo slide

functional support