The Fully Managed Services with IBM

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1 The Fully Managed Services with IBM To accelerate customer s entry into China, IBM is the strategic partner to use. We have over 30 years experience in this market, delivering end-to-end services of the type that will help with CUSTOMER s time-to-market in this competitive environment. This starts with services to Design your Infrastructure to meet your operational requirements; then services to Build to your requirements; on-going support services to help you Manage your environment; or if CUSTOMER chooses to bring the management of these facilities back in-house, then we offer Transition services. Our delivery model, as summarized in this diagram, is to provide 24 x 7 x 365 coverage with an agreed-to Services Level Agreement (SLA). CUSTOMER and IBM would collaboratively manage on three levels - Strategic, Tactical, and Operational - to ensure we deliver to your expectations. Please also give consideration to IBM s extensive experience in China to deal on your behalf with China s complex business environment, culture, and language. This lets CUSTOMER focus on its core business growth objectives with IBM managing your Infrastructure.

2 IBM in China 1. Strategic concerns & what a partner should offer you China is the largest emerging market in the world. Most multi-national companies seek to penetrate this market in order to grow their business because of China s economic scale and market demand. IBM believes several significant factors are now driving businesses into China: China is moving from being an export-driven, low-cost manufacturing economy to becoming a higher-value manufacturing and services economy; The immense scale of urbanization is driving infrastructure build-out, and creating one of the world s largest domestic markets; In the short-term, the Chinese government is trying to maintain stable growth by moving focus from stimulus to macro-control to address the risk of inflation; China s eight regions are diverse, and most in their own right are the size of major countries in population and GDP. Varying growth speed, central government directions/policies, and different industry focus in these major regions will shape their position within China s economy and value chain; Industries and enterprises are transforming themselves in response to growing domestic market and global competition, Amongst all countries, China is leading the recovery from the most recent global financial crisis; This Government is taking a fundamentally different economic development path than its predecessors, emphasizing sustainable development and a harmonious society ; The Government is fostering Chinese national champions across strategically important industries. While all multi-national companies in the technology and communications sector like CUSTOMER face these issues to varying degrees, we believe our customers need to think differently about conducting business in China because of its unique society, culture, and political environment. We believe that a long-term strategic partner for CUSTOMER should have the following characteristics to ensure the partnership is successful:

3 Have the scale, size, and expertise that enable it to undertake management of the end-to-end operations across the centralized set up and branch operations of the customer. This means that it needs to have a significant pan China presence by virtue of projects that it has executed in the last few years. Has a good domain and depth in the Communication space both globally and in China more importantly. Have the benefit of a rich experience in managing such projects for Communication companies on account of the varied projects undertaken across the various geographies Have a history of executing Transformational projects for its clients as a true value partner Can manage the complexity engagements through a strong governance mechanism that is time tested Has the financial muscle and stability to structure flexible financial models that are key to business today. Can the organization explore business outcome models, can it explore some form of evolved partnership that ensures the relationship is more than just delivering services. Offers a breadth of Design, Build, and Managed services. Have Industry-specific IP/Assets/Frameworks that can be leveraged to ensure that Transformation and Operational Excellence can be achieved. These are critical and make the difference in a long-term relationship as they bring the cutting edge for tomorrow. 2. How IBM can help you succeed in China IBM is one of the few IT service companies in the world and also in China that offers end-to-end solutions to customers from hardware to software, services, and consulting. This means we can offer a repeatable and extensible solution additional managed data centers - anywhere in the world. Our partnership model for long-term commitments with multi-national companies (MNCs) IBM's business ties with China date back to 1934, when it installed the first business processor for Beijing Union Medical College Hospital. But not until 1979 did IBM come back to China, when the country started to reform and open up, with its first sales presence being established in 1985.

4 IBM is empowering customers with innovation. IBM attaches great importance to investments in R&D. In 1995, IBM China Research Lab (CRL) was established, one of IBM s eight research labs world-wide. There are more than 200 researchers working here with a broad research agenda, and in collaboration with academia, clients, business partners, and government. IBM China Development Lab (CDL) founded in 1999 is one of the biggest development labs at IBM, and the largest of its kind among multi-national companies in China, with over 5,000 Chinese engineers. They specialize in the development for all of IBM Software Group s five core products lines including: Information Management, WebSphere, Lotus, Tivoli, and Rational; and also IBM System z (mainframes). IBM China Technology Laboratory (CSTL) was started in 2004 and officially launched in 2007, with more than 1,200 engineers located in Beijing, Shanghai, and Taipei. They specialize in systems, system software, storage, semi-conductor technology, etc. In 2008, IBM R&D witnessed remarkable achievements with more than 200 patents issued, 450 papers, and nine technical books published. IBM Lotus Symphony developed by CDL was honored with an IBM President s Award and this product was successfully launched into the international market. IBM SmartSCOR was developed by CRL and given the 2008 Global Grand Award for Supply Chain Innovation. In addition, IBM has located five global service support centers in China to serve customers in China and elsewhere in the world including IBM Global Delivery Centers (AMS Centers), Global IBM Global Procurement Center, IBM Asia Pacific BTO Center, IBM Call Center and IBM System Product manufacture & export center. IBM Global Delivery Centers are located in Shenzhen, Dalian, Shanghai, and Chengdu with over 6,000 service experts providing services for approximately 160 clients from 23 different countries and ranks the second largest Delivery Center after India with its specially strong arm of AMS. In Dec., 2008, the IBM China Global Delivery Center passed the certification of CMMI Level 5, which demonstrated the international level of China s AMS outsourcing capability. 3. Services capabilities in the Global Delivery Center IBM also offers various Application Management Services (AMS) capabilities out of the IBM Global Delivery Center for a variety of industries (e.g., telecom), specific applications (e.g., SAP), for multiple languages (e.g., English and Chinese), and for various IBM and non-ibm software (e.g., Oracle database), Managed Business Process Services (e.g., Procurement, Human Resource,

5 Finance & Administration, Customer Relationship Management and Industry related services offering).