Cognizant's Application Management Solutions—The Benefits by qyt15644

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									Executive Briefing
Cognizant’s Application Management Solutions—The
Benefits




                                   Cognizant Technology Solutions
                                      500 Glenpointe Centre West
                                               Teaneck, NJ 07666
                                                    201-801-0233
                                              www.cognizant.com
                                                         Contents


Introduction......................................................................................................................... 1

The Cognizant AMS Advantage ......................................................................................... 2
   Ownership and Responsibility......................................................................................... 2
   Cost Savings .................................................................................................................... 2
   Guaranteed Service Levels .............................................................................................. 4
   Value Added .................................................................................................................... 5
Conclusion .......................................................................................................................... 6
                                                                         Executive Briefing



Introduction
With the emergence of e business, global enterprises have little time to waste when it
comes to systems development and maintenance. With the IT skills shortage not likely to
disappear anytime soon, global enterprises must carefully consider where to deploy their
increasingly precious resources.

IT organizations are being pushed like never before to innovate new technologies at
“Internet speeds,” which call for projects to be delivered in days or weeks, not months or
years. Yet, no organization can afford to sacrifice routine application maintenance and
application enhancement in order to accelerate the rollout of new systems.

Cognizant’s Application Management Solution (AMS) helps global organizations turn
challenge into benefit. We address all the key issues, balancing cost, complexity, and
capacity for all areas of the application lifecycle, from development or enhancements to
everyday maintenance or support. Our approach has been proven to deliver the following
benefits:
    • Ownership and Responsibility: Cognizant’s assumption of full ownership and
        responsibility for enterprise systems allows your origination to redirect scarce
        staffing resources to higher priority, more strategic areas.
    • Cost Savings: Cognizant’s proven Onsite/Offshore model is highly cost-effective,
        generating fast ROIs for our customers.
    • Guaranteed Service Levels: Cognizant’s world-class methodology ensures
        service levels that your organization can depend on.
    • Value: Cognizant’s AMS improves knowledge of existing systems, resulting in
        superior maintenance and performance.

With AMS, your organization gains control of its destiny. Your organization can decide
how and where to direct its resources, while gaining the assurance that its existing
systems deliver consistent service levels. Thanks to our long experience managing
applications for global organizations, Cognizant can manage your systems more cost-
effectively than ever before. Our structured approach not only guarantees service
delivery, but also creates a knowledge repository for your existing systems. With this
knowledge repository, your systems can be maintained, expanded, and improved more
effectively than ever before.




 Cognizant Technology Solutions                                                         1
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The Cognizant AMS Advantage
Ownership and Responsibility

Cognizant’s AMS solution provides total ownership and responsibility for maintaining
your organization’s mission-critical systems. Because information technology is
increasingly at the heart of enterprise competitive advantage, the demand for IT
professionals across the globe is fast outpacing the supply.

The obvious benefit of AMS is that it allows IT organizations to shift their focus from
routine maintenance towards newer projects of strategic importance. An added advantage
is that, because new development projects featuring the latest technologies are often
considered more attractive to IT professionals, AMS can help organizations retain key
staff.


                                                                      Savings
                                          Savings                     Cumulative Savings
      60%

      50%

      40%

      30%

      20%

      10%

       0%
             1    2    3    4     5   6    7    8     9   10   11   12   13     14   15
    -10%

    -20%

    -30%



Figure 1. Proven ROI



Cost Savings
IT organizations require solutions that help them cope with the rigors of competition in an
increasingly complex business world. They require application management strategies to cope
with the growing demands to do more with less.

Cognizant’s onsite/offshore model provides dramatic cost savings. The obvious benefit is the
ability to take advantage of more economical staffing costs in offshore labor markets. Additional
cost savings come as a result of bundling production support and system enhancement into a
common offering. Furthermore, the cost for expanding support teams is marginal because of
Cognizant’s large resources: there is no need to conduct special recruiting when adding new

 Cognizant Technology Solutions                                                                2
                                                                            Executive Briefing


Step                 Deliverables               Description
Planning             Requirements Study         Documents customer needs
                                                Documents customer procedures and
                   Process Study                standards
                                                Customer chooses application management
                   Project Definition           outsourcing strategy
Knowledge Transfer Technical Environment Study Documents system environment
                                                Documents application functionality and
                   Application Understanding    prioritizes their business importance
                                                Documents application maintenance
                   Maintenance Process Study processes and all tools used
                                                Gap analysis identifying future tasks, and
                                                phased transition of maintenance
                   Offshore Transition Planning responsibilities to Cognizant AMS team
                                                Maintenance responsibilities transitioned to
Service            Application Transfer         Cognizant team

Table 1. Cognizant AMS Transition Process

requirements. Additionally, Cognizant’s ISO-certified and SEI/CMM Level 5 quality
processes reap huge benefits in productivity, because improved quality results in sharply
reduced error rates and reworking that can add time and cost to traditional application
management efforts.
Finally, because the Cognizant AMS solution relies on a structured methodology that
combines world-class management practices with comprehensive knowledge
management and state-of-the-art systems maintenance tools, our solution avoids the costs
of frequent and extended downtime.

A key component of our strategy is a carefully structured transition process (see Table 1,
previous page). During this phase, our onsite teams work closely with clients to carefully
document their needs and conduct a highly systematic knowledge transfer process that
ensures effective long-term management of the application.

The result is that clients can stretch their IT budgets more effectively. Figure 1 (previous
page) shows the results of a recent Cognizant application management project. Our AMS
solution achieved a 5-month ROI for the customer, delivering annual cost savings
averaging 40 – 50%, even accounting for transition costs which occurred during the first
90 days of the project. In addition, our solution has been demonstrated to deliver
immediate 30% savings for longer-term engagements lasting three years or more.

Our Onsite/Offshore model, which was used to extend the IT team, cut application
maintenance costs in half. We accomplished this with a staff deployment, where 90% of
the Cognizant team was deployed offshore at our state-of-the-art IT facilities. Thanks to
the onsite/offshore staff deployment, we delivered 24x7 production support, bug fixes,
and program enhancements. Every aspect of system management, maintenance, and
operation was dramatically improved. For instance, we developed system enhancements
35% more efficiently, while improving system stability by 55% (see Table 2).


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Team Size                 Client Staff                                       15
                          Cognizant Staff                                    30
Cost Savings              Overall Savings                                   50%
                          Savings due to Offshore Rates                     35%
                          Savings due to Process Improvements               15%
Enhancements              Productivity Improvement                          35%
Production Support        System Stability                                  55%
                          Productivity Improvement                          20%
Bug Fixes                 Productivity Improvement                          20%

Table 2. Customer Benefits: Team Extension Case Study

Guaranteed Service Levels

Cognizant’s AMS solution delivers guaranteed service levels that makes application
management a predictable activity. We accomplish through a combination of world-class
methodology that emphasizes continuous improvement, and state-of-the-art tools.

Cognizant’s QA practices are world-class. Cognizant has been ISO certified and has been
assessed at Optimizing Level 5 of the SEI/ CMM model. For your organization, this means
that Cognizant’s AMS solution is built on managed, carefully documented, repeatable
processes. This is accomplished by incorporating continuous process improvement into
our application management strategy. We constantly spot check our processes to ensure
quality—and deliver consistent service levels.

We back up our world class processes, analysis, reporting, testing, and data conversion
tools that document and optimize all aspects of application maintenance. A “Metrics
Cockpit” provides management views of Cognizant’s performance using easy-to-
understand, visual dashboards. Additional tools track service level compliance, with the
capability to drill down to project or task level. Managers can track performance by task
category or individual task. They can also track staffing effectiveness by group, location,
or task type, or examine the process to identify which activity areas are most prone to
bottlenecks or software defects. Additionally, our tools track change management, code
content and structure, test coverage, and perform transformations that convert data
structures and file formats to meet the requirements of your applications.




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              160                                                                   8000

              140                                                                   7000

              120                                                                   6000




                                                                                           Person Hours
              100                                                                   5000
# of Issues




              80                                                                    4000

              60                                                                    3000

              40                                                                    2000

              20                                                                    1000

                0                                                                   0
                    Q3 98   Q4 98       Q1 99     Q2 99   Q3 99     Q4 99   Q1 00

                                    # of Support Issues   Support Effort



 Figure 2. Stability Benefits



 Value Added

 Cognizant doesn’t simply maintain customer systems, it improves them. The AMS
 solution adds value to legacy systems in numerous ways, including:
      • Knowledge: Cognizant documents all systems; for many customers, this may be
          the first time that their applications are fully documented.
      • Reliability: Additionally, Cognizant’s root cause analysis processes, a foundation
          of the AMS service, improves the reliability and robustness of systems because
          future bugs or performance problems can often be prevented before they emerge.
          In a recent case, Cognizant’s root cause analysis processes produced permanent
          system fixes that in the long run reduced the incidence of trouble tickets by more
          than a factor of three (see Figure 2, previous page).
      • Efficiency: Performance tuning, another core component of AMS, constantly
          ensures that your applications are running at maximum efficiency.
      • Rapid Response: Thanks to our highly efficient process and documented
          knowledge of customer systems, we can respond faster and more effectively to
          customer support calls. Because of our rapid response, we dramatically increased
          overall system uptime. For a recent customer, Cognizant achieved near 100% on-
          time response levels to support calls, while cutting average response times in half
          (see Figure 3).

       Cognizant Technology Solutions                                                                     5
                                                                                           Executive Briefing




                                 60                                                      100%

                                                                                         95%
                                 50
    Response Time (in Minutes)




                                                                                                On Time Completion %
                                                                                         90%
                                 40
                                                                                         85%

                                 30                                                      80%

                                                                                         75%
                                 20
                                                                                         70%
                                 10
                                                                                         65%

                                  0                                                      60%
                                             98


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                                                         99


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                                                              Response Time      On Time Completion




Figure 3. Rapid Response Benefits




Conclusion
Cognizant Technology Solutions’ Application Management Solution provides a cost-
effective, comprehensive solution to enterprise application maintenance. Our AMS
solutions help your organization gain control of its IT resources, allowing it to focus on
projects that deliver maximum competitive benefit. Our AMS solutions also help your IT
organization cope with ongoing skills shortages, by extending the resources of your IT
team and allowing the, to redeploy onto more attractive projects.

Our management processes have been certified as world class. Our track record has
delivered proven results: ROIs of as little as 5 months, response times and support
requirements cut in half, and system stability improvements up to 55%. With Cognizant’s
AMS, IT organizations can firmly gain control of systems development and maintenance
challenges while mastering the rollout of new systems at Internet speed—while saving
money and time in the process.




 Cognizant Technology Solutions                                                                                        6

								
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