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IT Services optimization in the context of economic and financial crisis

Constantin Viorel MARIAN Executive Director for Technical Division Bucharest, 17th of June, 2009

Agenda  History and Present: IIRUC Service and R-IT  Corporate Outsourcing Responds to Economic Crisis  Financial Crisis Brings New Opportunities to Service Outsourcing Sector  What IIRUC Service can do?

History and Present

Raiffeisen Informatik Group 2009’s turnover: Over 1 billions EURO

 1968: the original IIRUC company was established  1991: IIRUC-SA was registered as a shareholding company out of the original IIRUC company  2004: IIRUC SERVICE SA was established, based on the traditional IIRUC SA company  2008 (February): Raiffeisen Informatik Austria (R-IT) , the second largest IT service provider in Austria, achieved the sole control over IIRUC SERVICE SA  2008 (October): Approval of the Master Plan for the company development  2008 (October): Opening new Headquarter with a Data Center facility and a central Call Center dept.  2008 (December): Position IIRUC Service as IT prime contractor for equipment acquisition and services  2009 (January): Set-up the IT security business line  2009 (February): Set-up of the Integrator business line with global partnerships (e.g. Nexans, Molex, Cisco, Alcatel) and services partnership (Romtelecom, Vodafone, Datek Telecom, etc.).

What IIRUC Service means:  Over 25,000 customers  Over 70,000 equipment in service  East-Europe competence hub  Running international projects (Ukraina, CEE)  Multiple certifications  350 employees  120 cars fleet  60 nationwide locations in 8 areas  47 nationwide stores  50 service laboratories  1 national training center

Raiffeisen Informatik Offered IT Services, strategical vision for Romanian market  3.000 Servers  20.000 Corporate Clients  All highway system in Austria IT Operations

Software Solutions

 320 local communities  28 hospitals  25 banks  40.000 km Network


Client Management

 520 TB Storage  1 Billion Transactions p.a.  300 Mio. printed Pages p.a.  Several Data Centers

Security Services

Output Services

Corporate Outsourcing Responds to Economic Crisis Most information systems departments around the world in 2009 will be faced with tighter budgets than those initially expected. In this context, the outsourcing of IT services appears as a way to better capitalize on available resources (also for companies that up to now had not seriously considered it before). Outsourcing = delegating the supply of equipment and services to third parties through the terms of service-level agreements Benefits for companies: • gives them a way to provide service levels that guarantee competitiveness, • keep costs under control.

Financial Crisis Brings New Opportunities to Service Outsourcing Sector Outsourcing could save companies money, if it is leveraged properly. • Drives down the current costs of performing a service. Allows companies to leverage immediate cost of labor differences to accomplish the same work. • Catalyzes internal change. The requirement to integrate internal teams with external providers mandates greater discipline in project management, application development and integration, and overall IT operations (ITIL). • Improved purchasing methods, including competitive procurement and benchmarking, can reduce average bill rates, usually by as much as 10% annually. • Consolidating providers allows companies to control and manage risk, including legal, financial, and performance risks that are inherent working with third parties.

Financial Crisis Brings New Opportunities to Service Outsourcing Sector (cont)

In the same time outsourcing offers risk management by SLA based contracts. In this case, as a collateral benefit, organizations are optimizing existing relationship and leveraging outsourcing as a tool to improve internal performance. Near future prognosis shows that "74% of organizations expect outsourcing to remain at the same level or increase because of the economic crisis.“ (according to International Association of Outsourcing Professionals - IAOP)

What IIRUC Service/Raiffesien Informatik can do? 1. Partnership 2. Know-how 3. Professional Services 4. Product related Services 5. Operational related Services

Thank you for your attention!

SC IIRUC SERVICE SA 7th “Fabrica de Glucoza” Street Sector 2 020331 Bucharest Romania

Tel.: +40-21-232.25.21 Fax: +40-21-232.25.26 Mail:

1. IIRUC - ITServices Optimisation