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    Ibm T&T

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    Sharanjit Kaur
    1) The document discusses a major IT outsourcing program by IBM to establish a Global Delivery Centre (GDC) in Cyberjaya, Malaysia. 2) IBM invested $1 billion to build the GDC, which started operations in 2013 and provides IT services to clients. 3) The GDC pursues new business through deals like outsourcing agreements with banks, extending existing contracts, shifting work from other IBM centers, and taking on short-term projects.

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    Ibm T&T

    Uploaded by

    Sharanjit Kaur
    15 views2 pages
    1) The document discusses a major IT outsourcing program by IBM to establish a Global Delivery Centre (GDC) in Cyberjaya, Malaysia. 2) IBM invested $1 billion to build the GDC, which started operations in 2013 and provides IT services to clients. 3) The GDC pursues new business through deals like outsourcing agreements with banks, extending existing contracts, shifting work from other IBM centers, and taking on short-term projects.

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    IBM T&T

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    1) The document discusses a major IT outsourcing program by IBM to establish a Global Delivery Centre (GDC) in Cyberjaya, Malaysia. 2) IBM invested $1 billion to build the GDC, which started operations in 2013 and provides IT services to clients. 3) The GDC pursues new business through deals like outsourcing agreements with banks, extending existing contracts, shifting work from other IBM centers, and taking on short-term projects.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    15 views2 pages

    Ibm T&T

    Uploaded by

    Sharanjit Kaur
    1) The document discusses a major IT outsourcing program by IBM to establish a Global Delivery Centre (GDC) in Cyberjaya, Malaysia. 2) IBM invested $1 billion to build the GDC, which started operations in 2013 and provides IT services to clients. 3) The GDC pursues new business through deals like outsourcing agreements with banks, extending existing contracts, shifting work from other IBM centers, and taking on short-term projects.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Example 2:

    Major programmes are innovative, derived from the organization concerns and desire of a new or
    improvised invention (strategies, technologies, processes) that is impactful to the business, market, and
    society. With the intense characteristics of these programmes, it would seem almost impossible to acquire
    a solution in a single contract and therefore often propose research and approach to help navigate that
    complex challenge instead.

    The second Major Programme that captures my attention is the Transition and Transformation of IT
    Services across the globe that is outsourced to their newly established Global Delivery Centre (GDC) in
    Cyberjaya, Malaysia. This developing country has a strategic geographical location; flawless
    infrastructures especially uninterrupted power supply (with backup) and digital connectivity that is
    suitable for a 24/7 centre; ample resources with the right skills and competencies; and many other plus
    points.

    RM 1 Billion was invested to build and operate the centre, the revenue is solely based on the Information
    Technology services provided to their clients. The centre started its operations in 2013, and the
    Engagement & Business Integration Services (EBIS) department (also known as the Transition Program
    Office) is established to set up the project management control structure and relevant processes, and
    pursuit business prospects, as categorized below:

    1. New Business/New Logo/New Deal


    Example: A local bank in Malaysia, Malayan Banking Berhad signs a 2-year outsourcing agreement
    IBM Delivery Centre Malaysia to manage the entire Application and Infrastructure services using
    IBM staffs, equipment and workplace.

    2. Extension to Existing Service (Net Add)


    Based on the same scenario above, Malayan Banking Berhad decides to extend the contract for
    another 2 years for the same scope.

    3. Lift & Shift (Internal & Commercial) / Offshoring


    Example:
    1) IBM Australia has its own (Internal) IT Services department and they would like another IBM
    entity offshore, IBM GDC Malaysia, to fully support the exact scope on Incident Management

    IBM Australia IBM GDC MALAYSIA

    4.0 FTE 4.0 FTE

    2) In 2008, the National Australia Bank (NAB) hires IBM Australia s for handling its desktop and
    service desk IT infrastructure. Since NAB is IBM Australia , the former is classified as a
    commercial account. The contract with NAB was continuously renewed with a wider scope. In
    2013, with the consent of NAB, IBM Australia outsourced 70% of those work (based on cost and
    skills) to the global service delivery hub in India and Malaysia.
    IBM GDC INDIA
    100 FTE
    National Australia Bank IBM Australia

    240.0 FTE 240.0 FTE


    IBM GDC MALAYSIA
    72.0 FTE
    68 FTE

    4. Delivery Centre (DC) to Delivery Centre (DC)


    Example: There are other 7 IBM Global Delivery Centres across the globe. In 2010, IBM Australia
    outsources their Server Systems Operations to IBM GDC India. However, when its rival IBM GDC
    Malaysia was established, the team in Australia decided to outsource their task to Malaysia instead.
    There were several reasons such as time zone differences, cheaper labour, traveling (if required) is
    more convenient, etc. Therefore, the transition of work would be held from one DC to another DC.

    5. Projects/ RFS
    Example: IBM Denmark was awarded a project from its client Leo Pharma. It was a short duration
    project, approximately 6 months, and IBM internal resources were unavailable. Here are the
    alternatives and observations:

    1) Hire new permanent staffs which may have a downside if the resources are ideal after the
    project ends
    2) Hire new contract staff for that duration, which is a brilliant idea but there may be circumstances
    whereby the candidate may not want to leave his/ her current job for a short-term opportunity.
    3) Hire another IBM resource who is vacant and competent from another country, however, there
    is a very low probability of getting the right resources who are ideal during that exact duration
    of the project.
    4) Outsource that task to a Global Delivery Centre which acts as a centralized hub for those
    services.

    Without a shadow of a doubt, the 4th choice is a win-win situation for all parties.

    In terms of cost, the resources at the delivery centres usually have lower rates due to the country
    currency rate. This means that IBM organizations that outsource the scope to these centres would gain
    higher savings and these will increase the profits of IBM corporation overall. It may seem like a cruel
    tactic as many employees from the sending side would be losing their jobs, but for the benefit of the
    company, its sustainability, and competitive edge over its rivals, outsourcing is the best strategy.

    Today, IBM GDC Malaysia has approximately 5000 employees generating a large revenue through its
    worldwide support. Establishing delivery centres in a developing country like Malaysia would contribute
    to many microeconomic and macroeconomic aspects, mainly the country economy.

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