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Nokia Siemens Networks and Accenture Outsourcing Application Management Services
Every day a quarter of the world’s population connect using Nokia Siemens Networks infrastructure and solutions. To sustain success in a challenging marketplace, it is essential for Nokia Siemens Networks that IT supports and enables companywide functions efficiently and effectively—improving organizational performance while lowering total IT costs. By increasing the value of IT investments for business critical functions, Accenture provides Nokia Siemens Networks IT capability with additional flexibility, greater agility and improved cost management. This video highlights the best of Accenture enabling Nokia Siemens Networks IT to add value to its business through outsourcing.
With more than 64,000 people in over 150 countries, Nokia Siemens Networks is one of the largest telecommunications hardware, software and services companies in the world. When it needed to improve performance and lower costs by outsourcing its IT application management, it turned to Accenture.
The company offers a complete portfolio of mobile, fixed and converged network technologies as well as professional services, including consulting and systems integration, network implementation, maintenance and care and managed services. As a provider of communication network infrastructure, Nokia Siemens Networks delivers connectivity to more than 2 billion people worldwide. Focused on both innovation and sustainability, Nokia Siemens Networks is headquartered in greater Helsinki, Finland, and reported revenues exceeding €12.6 billion in 2010.
The global communications industry is going through unprecedented change. In this environment, the market for mobile and fixed networks infrastructure is confronted with a constantly increasing need for bandwidth, equipment price erosion and intense price competition, especially in the fixed-line market. For network equipment providers, an emphasis on cost control and working capital management will continue to be a key priority. It is crucial for them to implement cost-reduction imperatives while keeping a focus on future value creation.
For Nokia Siemens Networks to succeed in this challenging environment, IT must be able to support and enable companywide functions efficiently and effectively. Improving organizational performance and lowering total IT costs, as well as increasing value from IT investments for business critical functions, are the basis for the company’s performance. IT must also contribute to Nokia Siemens Networks’ ability to offer a differentiated portfolio of products and services as well as help operators around the world run their networks more efficiently and enrich the customers’ experience.
Nokia Siemens Networks called on Accenture to help reduce IT costs and improve performance. It now outsources to Accenture its IT application management services that support certain Nokia Siemens Networks’ human resources and finance and control functions as well as Nokia Siemens Networks’ corporate-wide tools and platforms. Accenture was chosen based on our successful history with the company and willingness to listen and collaborate for mutual success.
Nokia Siemens Networks and Accenture have successfully partnered for more than a decade and this new arrangement allows it to draw on the application services expertise of a trusted business partner to help provide its IT capability with additional flexibility, greater agility and increased cost management.
“Accenture’s relationship with Nokia Siemens Networks goes beyond the company’s formation in 2007,” said Accenture's Veli-Pekka Lappalainen. “This long-term partnership has allowed us to work with Nokia Siemens Networks to quickly capitalize on the joint opportunities offered by prevailing market conditions. Application management is not only about implementing cost reduction imperatives, but enabling future value creation, service innovations and higher customer satisfaction.
The challenge of this particular transition was enormous—it involved more than 80 applications in various technologies supported from 10 countries by 14 incumbent suppliers. Considering all of these components plus Nokia Siemens Networks business units, different IT units and changes in the delivery model in consideration, the three-month time schedule was very aggressive. All of this had to be managed at the same time, and due to complexity and scale, the go-live was split into waves. Applications that were less complex with lower transition requirements went live in the initial wave, followed by more complex and higher transition effort applications in three additional waves.
The earliest phase was marked by the development of training courses around the new processes and delivery model. In this phase, the identification of gaps, open and proactive communication and quick closure of the same working on common agreed action plans was vital. At the same time, the reporting and governance structure on all levels was established.
To achieve the transformation of the delivery model, Accenture and Nokia Siemens Networks worked as one team to deliver tools and process changes. Accenture provided a dedicated team of transition specialists from the global Accenture Mobilization team. This group focuses solely on managing and completing outsourcing transition projects from the sales team through to the delivery team.
Multisite delivery environments are complex and hard to manage. Accenture’s Global Delivery Model helped us to effectively use global sourcing and delivery to reduce costs and improve performance. The joint team, combined with appropriate methodology and tools, facilitated a smooth transition between the onshore and offshore teams.
Utilizing Accenture’s two global delivery centers in India—Chennai and Gurgaon—and another in Sao Paulo, Brazil, this early phase of service delivery focused on stabilizing operations. The gaps in the process, infrastructure and knowledge were jointly identified and closed quickly while maintaining operations continuity.
Transition is vital to the success of the ongoing delivery and this can only be achieved by working as “one team” in partnership. To speed Nokia Siemens Networks toward a steady state of continuous risk management, development of mitigation plans and ensuring their quick implementation was critical.
Accenture and Nokia Siemens Networks worked in a “win together” style to deliver tools and process changes. This successful partnership at all levels was vital to achieving the delivery model transformation in both organizations. One year after transition start, the transformation progress was marked by exceeding all of the expected performance targets, including on time delivery and first pass resolution. Additionally, Accenture reduced the number of negative incidents and delivered several minor enhancements that improved the usability of the applications and allows for changes that will be required by new business requirements.
“By bringing Nokia Siemens Networks business and expectations to the offshore team and having the teams meet face to face, trust was created that resulted in sustainable service delivery and service excellence attitude,” said Rita Henning, program transition lead, Nokia Siemens Networks. “This has resulted in an increase in business benefits while lowering the cost of the application support.”
Driving delivery excellence and productivity gains with quality metrics and standards, leveraging the best talent available and continuously improving and capitalizing on innovation are the key ingredients for reaching high performance. Accenture is committed to helping Nokia Siemens Networks leverage its IT investments to increase operational performance and gain cost efficiencies as it strives for high performance.
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