The other thing we ought to note here is that the delivery of these solutions is across a hybrid platform. What we mean by that is, most of our clients today have either launched into the cloud space or about to do so. And so a hybrid environment basically allows us to work with our customers in their industries to determine whether they want to work in an outsourced environment, in their own data centres or in a combination of the two. Basically, that helps our customers decide whether they go to a public cloud or a private cloud type of environment.
How unique a proposition are these announcements for enterprises in Asia?
Ruma Balasubramanian: The best way to talk about this is to use client examples. We have a long time client that’s been with us since 2005, Bank of Baroda, which is an international bank based in India. They are expanding significantly outside of India and we just renewed our engagement with them last year. Here’s how we are setting about driving innovation transformation within that bank.
The first thing we did was basically go to them with an industry point of view around what we’ve seen in terms of IT support for banks that are expanding outside of India, or outside of their home countries. We basically went through that transformation engagement. We did two-day workshops and out of that came a roadmap that detailed the various applications they really wanted to focus on in terms of renovation and remediation.
We then went from that discussion to look at the underlying infrastructure and technology that those applications needed to live on because when you’re an expanding business, your infrastructure has to really flex with the increased volumes that you might experience.
So the bank bought into that value proposition. The benefits that they saw out of that value proposition was increased revenue and margins from the new services that they wanted to deliver to their customer base, and increased competitiveness because they’re really competing with other banks in India that want to expand overseas. Also, they saw significant internal operational efficiencies because we were really able to take on their operations staff and move it to a data centre.
Our value proposition is really not only the methodology and the software that we bring to the table but also in the practitioners that lead our engagements. We’ve got 60,000 people that focus on this across the globe. We also have 200 senior executives leading these transformations, ‘residing’ in the office of the CIOs and working very closely with the CIOs’ offices as well as their businesses to make sure they succeed.
Talk about the ROI on the kind of transformation initiatives you’re driving.
Ruma Balasubramanian: Each of the contracts has a different contract life and the business cases we give to those clients are based on the overall contract length and the kinds of services that they’re going to be provided. For major engagements, where HP is responsible for the overall stack–whether the stack is hardware, software, overall infrastructure all the way up to the applications and even the process management layer–we’re seeing anywhere from 15 to 30 percent in terms of overall savings. The ROI yielded, as you know, depends on the clients and their industries; it also depends on the willingness of the clients to transform themselves.
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