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M A N A G E D S E RV I C E S S O L U T I O N S

M A N A G E D S E R V I C E S — S E R V I C E F O R L I F E

S E R V I C E.
FOCUS.
V A L U E.
THE CHALLENGES YOU FACE MULTIPLY EVERY DAY.

MANAGED SERVICES GIVES YOU THE FREEDOM

TO FOCUS ON YOUR CORE STRATEGIES.

A managed services solution is a powerful option for organizations seeking to manage their operational
costs and to achieve performance goals that will drive growth in the long term.

In today’s customer-driven business environment, your organization must differentiate itself by delivering
services or products that create value for your customers. At the same time, you must manage the
business—getting new products to market, managing finances, and reducing operational inefficiencies.
Your core products and services are what make your organization successful; but finely tuned deployment
and management of these solutions can make the difference between success and excellence.

KPMG Consulting’s Managed Services can help you turn the challenge of managing your business into
an opportunity for gaining competitive advantage. We offer business application management services for
many non-core business activities, including order management, billing, customer care, e-mail, and service
assurance. Entrusting these business processes to a proven partner like KPMG Consulting enables you to
reduce up-front investments and maintenance costs and allows your organization to focus on the products
or services that are central to maintaining a competitive advantage in the marketplace. In addition, we
provide online services that help our clients access the latest technological innovations without a large
up-front investment.

2 K P M G C O N S U LT I N G
“Business Process Outsourcing is gaining momentum…as organizations

are opening up to outsourcing non-core, but critical, business processes

to reduce costs, improve service levels, and sharpen their focus on

core competencies.”

C. E. Unterberg, Towbin, “Business Process Outsourcing,”


April 16, 2001

As an example, by using our Managed With KPMG Consulting’s leading-edge Managed Services,
you can:
Services solutions, our team has helped
geographically dispersed organizations • Lower your cost of capital—Because we’ve already

centralize and automate systems to hire procured the equipment, your investment is
significantly smaller
and pay temporary employees from local
agencies, enabling these organizations to • Focus on your organization’s core competencies—
By eliminating non-core business processes from
transform a traditional bottleneck into a
your organization, you are free to focus on your
competitive weapon. We’ve helped retailers customers and the services or products that your
focus more on selling products by taking organization provides
away the burden of maintaining Web-
• Reduce overall risk—By taking advantage of our
enabled storefronts or online billing systems. existing operational environment and our proven
experience, your organization can avoid spending time
and money on procuring equipment and building staff

MANAGED SERVICES SOLUTIONS 3


WE UNDERSTAND YOUR BUSINESS.

LET US HELP YOU CONTROL COSTS

THROUGH MANAGED SERVICES.

Increased reliance on technology has created a new foundation Our teams leverage our Managed Services solutions to help
of Internet-powered platforms and applications at many you meet all of your business process needs—from automation
organizations. Today, many forward-thinking organizations and management of business processes to our global network of
are aggressively applying business intelligence and innovative Broadband Solution Centers, which proactively manage and support
business processes to gain sustainable results from their applications to ensure quality and performance. Our Common
investments. However, business transformation can slow down Commerce Infrastructure provides our Managed Services clients
growth by diluting the organization’s focus. As such, many with transactional services capabilities—including bill presentment
organizations are engaging in relationships with Managed and payment services and electronic payment processing—which
Services providers to create high-performance, sustainable can be exchanged securely through our Certificate Authority (CA)
solutions without sacrificing other areas of their business. security services.

With our core IT competency and our infrastructure, only


SPEED WITH PURPOSE KPMG Consulting brings all of the necessary elements to the table:
Time-to-market is essential. But when new technologies are part
of the plan, sound strategies and process innovation are equally
important. We can help you implement Managed Services BUSINESS PROCESS
MANAGEMENT
A P P L I C AT I O N S
MANAGEMENT

solutions quickly and reliably. We align with best-in-class


BUSINESS PROCESS SOFTWARE
technology providers to deliver industry-focused solutions that
are based on proven technologies, experience, and innovation.
I N F O R M AT I O N
TECHNOLOGY
AND
With our Managed Services solutions, we offer Business Process I N T E G R AT I O N

Management and Applications Management. We integrate


best-in-class applications and solutions to address your business NETWORKS HARDWARE/STORAGE

challenges. We help you control costs and improve quality


I N F O R M AT I O N T E C H N O L O G Y INFRASTRUCTURE AND
MANAGEMENT O P E R AT I O N S U P P O R T
through our technology solutions, industry and technology
experience, and proven strategies.

“In today’s resource-constrained environment, competitive advantage

will continue to accrue to companies that can install and implement

the optimal IT infrastructure for their businesses before their

competitors can.”

Jim Lebinski, Vice President and Research Director,


Decision Tools, Gartner Measurement, January 2002

4 K P M G C O N S U LT I N G
BUSINESS PROCESS MANAGEMENT
A N E X A M P L E O F A C W P P L AT F O R M
Business process management is not a new concept; large
organizations have been outsourcing “non-core” functions for some
time. However, recent improvements in technology, coupled with BANK LOCATIONS
B A NK BANK B ANK
increasing pressures for tighter fiscal management, are creating a trend Dall a New
San Fra n c i s c o BANK s BANK Yo r k

toward the outsourcing of core business functions and an increase Seatt l


e Chica g
o

in market demand for high-end business process management.

With our Business Process Management solution, we identify


non-core business processes that can be run as a Managed Service.
By leveraging our experience in business process analysis and
management, our in-house facilities, and our strategic partnerships
with premier hosting facilities, we can offer customers a tangible TEMPORARY/LABOR AGENCIES

decrease in cost and a higher level of service.

Contingent Workforce Procurement (CWP) Solution BANK LOCATIONS

One way we’ve helped organizations increase efficiencies and move BANK BANK BANK

San Fra n c i s c o Dall a New


BANK s B A NK Yo r k
toward operational excellence is through our Contingent Workforce Seatt l
e Chica g
o

Procurement solution. By offering an enterprise-wide, Internet-based


offering, your organization can focus on more strategic roles, largely K P MG CO NSULT I NG P LAT FOR MS
eliminating time-consuming administrative tasks. Our solution can
help your organization:

• Reduce overall IT spending


TEMPORARY/LABOR AGENCIES
• Increase efficiency

• Improve visibility and effectiveness


Automating, centralizing, and streamlining a non-core process (in this
case, a bank’s hiring of contingent workers) allows organizations to more
quickly and efficiently engage and manage talented contract labor for
IT functions and realize significant cost reductions. This secure, scalable,
state-of-the-art platform also provides the highest level of service and
value to your internal staff, who need quality temporary labor to work
as efficiently as possible.

“[We] believe that most BPO services that combine process and

industry-specific knowledge tend to create the greatest amount of

intellectual capital…and be the most valuable solutions to customers.

This is because vendors can generally have a better perspective of

historical software, technology, and process structures for a particular

vertical function.”

C. E. Unterberg, Towbin, “Business Process Outsourcing”

5
I N F O R M AT I O N T E C H N O L O G Y M A N A G E M E N T “With all of the complexities and added components that are now

Applications Management required to manage eBusiness, the managed service alternative is

Our Applications Management solution offers much more than becoming increasingly attractive.”
a traditional applications services provider. We offer support for
business process changes, patching, updates, and transactional review AMR Research Outlook 2001: The Top Ten Technologies to
processes catered to your needs. We use a service control center to Watch, January 1, 2001
proactively manage and support applications, ensuring quality and
performance. Staffed by experienced technicians who are supported
by KPMG Consulting solution specialists, this service maximizes
application availability and minimizes downtime through the use
of best-in-class automated monitoring and trouble-management
tools. We can identify and solve problems before they impact your I N F R A S T R U C T U R E A N D O P E R AT I O N S U P P O R T
performance, and support full reporting capabilities, ongoing
In support of our Managed Services solutions, we have
enhancements, data fixes, and ad-hoc reporting.
established an infrastructure and operational support structure.
Regardless of where your applications reside—in-house, in our own This support network includes:
facilities, or in those of our partners—our team can determine the
• Common Commerce Infrastructure—A suite of
most efficient and cost-effective route to reliable operations.
Web-based tools that provide your organization with
Our primary focus is to provide applications management services transactional services capabilities, including bill
for leading software packages such as Ariba, Oracle, PeopleSoft, presentment and payment services and electronic
SAP, and Siebel. payment processing

We support your entire IT life cycle—from formulating your • Certificate Authority Capabilities—PKI-based security
initial strategy through development and integration of your core program that allows you to exchange information
applications to providing day-to-day operational support either securely over an open network
at your site, our Broadband Solution Centers, or that of your data
• Broadband Solution Centers—A facility that provides
center provider. Our service delivery model, diagrammed
your organization with an arena for project develop-
below, reduces costs and risks, and improves ROI.
ment as well as hosting and network operations support

• Customer Call Center—A full-service, technical, 24x7,


Web-based customer support center that provides
access from any secure interface
SERVICE DELIVERY MODEL
• Monitoring Services—Provides 24x7 reactive, predic-
tive, and proactive monitoring of servers, firewalls,
and applications

CONTINUOUS BUSINESS • Maintenance Services—Provides timely management


IMPROVEMENT STRATEGY
and application of patches, revisions, and fixes for your
mission-critical applications
CUSTOM- APPLICATIONS
IZATION DELIVERY INTEGRATION • Management Services—Provides plans to apply our
MODEL enterprise application expertise to your solutions, either
by insourcing, outsourcing, or the custom match that
CUSTOMER DATA
SUPPORT MANAGEMENT best serves your needs

APPLICATIONS
MANAGEMENT

MANAGED SERVICES 6
CASE STUDIES

CONTINGENT S TAT E O F T E X A S
WORKFORCE FOR
A LARGE BANK
Bank executives at a large global financial institution knew The State of Texas, Department of Information Resources
that in order to maintain its current leadership status, the (DIR) was charged with establishing a task force to
bank needed to streamline its processes involved with demonstrate the feasibility of conducting state business
hiring and managing temporary employees and services. over the Internet. The DIR looked to KPMG Consulting
KPMG Consulting helped the bank achieve greater ROI to help create an online government framework and an
by improving operational efficiencies and cost takeout online portal that provides citizens with 24x7 access to
with its contingent workforce. government operations.

Operating out of more than 4,000 domestic offices, The DIR serves as the technology broker for the State
38 international offices, and almost 100 regional client of Texas and works through master contract agreements
telephone service centers, this bank is one of the largest that can support dozens of state agencies.
online banks in the United States, with over 3 million
To make doing business with the government more
online clients.
convenient for citizens, the client wanted to provide
Historically, the bank’s sourcing, hiring, and management them with access to government operations 24 hours
of contract and temporary services was managed by its a day, seven days a week. The Texas State legislature
company-wide contractor management program. The bank mandated the creation of an eGovernment Task Force
procured a significant amount of IT contract and temporary that would test the viability of state agencies to conduct
services via phone, fax, and e-mail to augment its permanent business over the Internet. The client decided to implement
workforce. The inefficiencies of this process resulted in long an eGovernment framework with services including
procurement cycle times, higher expense levels for contract application hosting, online payment functions, and
labor, and an absence of vital information regarding supplier Web site development services.
quality and performance. Bank executives sought an
KPMG Consulting developed a portal and all related
Internet-based solution with the capacity to support at
supporting infrastructure that provides online transaction
least 500 suppliers and 3,000 contractors in the contractor
capabilities and Internet security. This was implemented
management database.
and deployed with outsource services for electronic
KPMG Consulting implemented an enterprise-wide, Internet- payment, bill presentment, and certificate authority
based software solution that would be available to the (digital certificates) for the DIR. Our team also provided
bank’s hiring managers, administrative staff, customers, infrastructure design, systems analysis and integration,
suppliers, and contractors at any time from any location. Web and custom application development, business
Leveraging best-in-class technology, we enabled the bank and functional operations, and data center support
to quickly and efficiently engage and manage talented and management.
contract labor for IT functions. This arrangement also
Our team helped create the TexasOnline Web site, which
positioned the client to expand its category offerings,
is a flexible, scalable, secure conduit to information and
generate an additional revenue stream, and improve
services offered by the State of Texas. It also provided
customer acquisition while providing the highest level
capabilities that enable and improve communications and
of service and value via this secure, scalable technology.
business management between state agencies, businesses,
Our rapid implementation schedule allowed for faster and constituents. The added benefits of more efficient
time-to-market, making this bank much more capable online transaction capabilities and Internet security are
of achieving its aggressive ROI goals. The organization illustrated by customer service through-call reduction to
is now able to select better candidates in less time, improve state agencies, improved end-user satisfaction, more readily
recruiter and hiring manager productivity, reduce the time accessible information, and faster, more smoothly processed
spent on processing paperwork, ensure that preferred fee recovery.
suppliers are used, buy from the most competitive suppliers,
and measure spending, process, and participant performance
via reporting.

7 K P M G C O N S U LT I N G
BROADBAND SOLUTION CENTERS

KPMG Consulting’s Broadband Solution Centers are multimillion-


dollar facilities that house hardware and software technologies from
industry leaders and leverage high-bandwidth network connections
for collaborative development of cutting-edge solutions. In project
rooms, our professionals work with your team to develop and test new
solutions with offsite team members participating in real time over the
Internet. Using these centers will minimize your up-front investment,
enable rapid implementation, reduce the impact of your existing
operational systems, and lower travel costs. Once your applications
have been tested, we support ongoing commercial operations on site
or can continue our monitoring, maintenance, and management
while transitioning the servers to your site or to one of our global
hosting partners.

THE BENEFITS OF WORKING


WITH US

KPMG Consulting is one of the world’s most respected business


advisors and systems integrators. We build enduring relationships with
our clients by helping them create new business models and innovative
solutions, enabling organizations to leverage technology for stronger
return on investment and enhanced service to their customers,
vendors, and employees.

From business systems strategy to implementation, we combine our


industry knowledge with technology experience to deliver results-
focused solutions quickly. By partnering with technology leaders, we
provide leading business and government organizations around the
globe with best-in-class solutions across every industry segment.

THE NEXT STEPS

If you would like to learn more about how we can help your
organization, please contact us at 866-FOR-KCIN (703-747-6748)
from outside the US and Canada) or visit our Web site at
www.kpmgconsulting.com.

8 K P M G C O N S U LT I N G
(THIS REPRESENTS THE POCKET;
FOR VISUAL CLARIFICATION ONLY)
KPMG Consulting
1676 International Drive
McLean, VA 22102

1 .8 6 6 . F O R . K C I N
703.747.6748 (outside the US & Canada)

w w w. k p m g c o n s u l t i n g . c o m

© 2002 KPMG Consulting, Inc. All rights reserved. Printed in the USA.
KPMG Consulting, Inc. is an independent consulting company.
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