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Case Studies
Application Service Transformation Cuts Application Lifecycle Management
Cost by 30% for Global Pharmaceutical Leader
"This (Infosys' engagement) was probably the most efficiently managed and
executed projects I have ever been a part of. From engagement and scoping to
project management, quality, development, testing, and execution, the project
was outstanding. I would recommend this project team to anyone running an IT
project at our company. All involved should be commended."
- Business Technology Manager of a leading global pharmaceuticals company
The Client
The client is a leading global pharmaceuticals company operating from over 100
countries with more than 100,000 staff and a dedicated research team of about
12,000 scientists.
Business Need
Having grown organically through several mergers and acquisitions, the client
organization was saddled with a host of disparate IT systems. Its IT environment
was characterized by silos of applications, platforms and infrastructure creation
and management, with little or no sharing of services.
More than 50 vendors supported the portfolio of over 400 applications built on
diverse, non-standard technologies, architecture and infrastructure. The key
challenges were low utilization of infrastructure, disparate technology footprint,
non-standard operating processes, low visibility across application portfolios,
decentralized vendor management and an overall high operating cost.
Our Solution
Regulatory
application
development
Developing a cell line
registration and analysis
system
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Infosys set up an enterprise Application Service Transformation (AST)
organization to help consolidate and transform service delivery, by leveraging a
shared services model. The initiative covered 12 service areas including service
desk, platform operations, platform build, capacity management, database
administration, application support, application maintenance, application
architecture, independent testing, quality management and compliance and
release management. The program, covering end-to-end application lifecycle
management, included infrastructure standardization and platform harmonization
and was designed to overcome challenges such as multiple, non-standard
technologies, decentralized infrastructure with low resource utilization and 'silos'
of application development and management.
Infosys focused on the following key aspects while developing the model, to
ensure repeatability and to measure robustness:
Throughput: Model-based approach to plan, track and measure throughput of
the organization to enable multiple programs to run in parallel, while cross-
leveraging experience. The model used productivity measures to improve
resource planning by continuously measuring human resource utilization and
analyzing leverage of offshore assets. To measure success and drive
optimization, the following measurement criteria were defined utilizing the
scorecard mechanism:
Program Scorecard: This achieves tracking program objectives by
measuring, tracking and analyzing parameters such as throughput, process
maturity, growth in customer satisfaction and cost savings
Service Quality Scorecard: All the 12 services are scored against multiple
parameters and the results are published periodically. This scorecard helps
measure individual service quality, strengths and weaknesses to help
continuously achieve higher levels of customer satisfaction
Staff Quality Scorecard: People quality is continuously measured to drive
resource rotation, skills development and training plans
Reporting: The AST organization produces various reports and includes a
dashboard that captures application health status, resource status, delivery
issues in services, productivity and infrastructure status. Input data is sourced
from various execution tools and final reports are generated using the reporting
tool and with some manual intervention.
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Chargeback Model: A robust chargeback model utilized pre-existing budgets
from different application portfolios and apportioned costs to each subscribing
application based on various criteria. This delivered cost savings for the
subscribing applications.
Resolving Client Challenges
Multiple vendors using diverse support models to support applications across
portfolios resulted in lack of predictability in service quality and high cost of
services. Moreover, the client had a decentralized service model for application
support and maintenance that was hamstrung by the lack of standard processes
and tools. Non-uniform process maturity and application owners resistance to
change compounded the problems.
By creating an organization to manage all applications through standardized
processes and service level agreements (SLAs), Infosys provided effective
consolidation of services and a single interface to end users. The solution
provided end-to-end infrastructure and application support, governed by unified
processes and SLAs. It used an ROI-based approach to prioritize applications
for transition to the shared service, considering factors such as technology
consolidation, existing vendor availability and application stability.
Infosys created a service catalog with clearly defined scope of services and
SLAs, aligned robust process definition with industry standards like ITIL and
CMMi and set up a single-window service desk for end users. Interactive
sessions with application owners along with metrics-based reporting on
application service performance provided transparency to the benefits of the
new model.
Infosys conducted a large pilot, followed by a quick ramp-up of the service
program. It documented the clients processes and did a thorough review of
each application before transition to ensure stability and performance. An
independent process and compliance team was created as part of the program
to define processes and ensure adherence.
Benefits
The Infosys Application Service Transformation solution:
Reduced overhead and operations costs
Reduced application delivery cost by 30% through shared onsite-offshore
model
Introduced predictable service quality overall SLA adherence over 95%
Increased availability of platforms and applications
Reduced technology spread and bandwidth required to manage the platforms
Provided expertise to architect and implement a solution through a single
interface
Strengthened the security framework for applications
Improved turnaround time for user requests and issues
Provided standardized and predictable estimation models for more accurate
budget forecasting
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