Application Support Outsourcing Presentation to Industry 24 July

Application Support Outsourcing Presentation to Industry 24 July 2006 Management Information Systems Division General Procurement Service Management Information Systems Division 1

Application Support Outsourcing Agenda • 14 h 30 -15 h 00 – Drivers, objectives and scope P. Soerensen, • 15 H 00 -16 h 00 Head of Management Information Systems Division Application Support Management – L. Mastrangelo, M. Douzal, • 16 h 00 -16 h 30 Management Information Systems Division Tender and Contractual Aspects – S. Benetti, Head of General Procurement Service • 16 h 30 -17 h 15 Coffee Break • 17 h 15 -17 h 30 Transition and Schedule – S. Benetti, Head of General Procurement Service Management Information Systems Division 2

Application Support Outsourcing Drivers, objectives and scope P. Soerensen, Head of Management Information Systems Division 3

Drivers and Objectives • Establishment of clear internal / external responsibilities and reporting lines • End-to-end system approach to the applications • Integrated service approach • Economies of scale, reduction of costs • Better use of the market for standard services • Separation of projects and services • Improved performance of applications • Increased user satisfaction • Streamlining of supplier interfaces (single contract) Management Information Systems Division 4

Scope • Strong Management by Prime • Assure Governance, Quality and Performance management of the service • Assist the users in exploiting the applications • Perform the administration of the applications and of the data • Detect, identify and remove defects • Implement the minor evolutions made necessary by – New requirements – Evolving environment and Technical considerations Management Information Systems Division 5

Application Support Outsourcing Coverage – Applications L. Mastrangelo Management Information Systems Division 6

Coverage List of Applications • Granularity = individual application • Coverage for each application can be – Full – Functional Support only • 43 apps in initial scope (info cards) • 9 more applications known to be inserted – 7 in FS mode, 2 in full mode Management Information Systems Division 7

Overview of the Applications Management Information Systems Division 8

Coverage Applications per Area Management Information Systems Division 9

Coverage Applications per Architecture • Lotus Notes (21) – 2 large, 19 small • Web (22) – 7 large, 15 small • Client/Server (9, accessed via Citrix) – 4 large (SAP, Smartstream, Archibus), 5 small • Tecnology: SUN – Oracle – Sybase - Microsoft - Novell – BO Management Information Systems Division 10

Coverage Maturity of Application in initial scope Management Information Systems Division 11

Coverage Applications Statistics (per Year) Issue Type Number • Problem Report 1. 000 • Change Request 650 • Ticket (Help Desk) 17. 000 Management Information Systems Division 12

Coverage Estimation of activities (Working Days per Year) Management Information Systems Division 13

Coverage ESA’s best evaluation of documentation status Management Information Systems Division 14

Application Support Outsourcing Application Support Management M. Douzal, Management Information Systems Division 15

Application Support Management • Approach • Processes and services • SLA • Reporting • Support tools • Roles and Responsibilities Management Information Systems Division 16

Application Support Management Approach • Outsource complete and coherent service processes • Select single Prime Contractor (CASP) in charge of – Overall service delivery – Service coherence and quality management • Define Baseline and Delta services for flexibility – Baseline • Delivered continually for a given set of applications • Paid through flat fee – Delta • Delivered upon request • Based on WO contents and agreed unit prices Management Information Systems Division 17

Application Support Management Baseline Processes and Services • Functional Support / 2 nd line – User assistance – On-site presence at HQ, ESTEC, ESOC – Execution of procedures (date or event driven) – Troubleshooting – Preparation of PR and CR – Change Management • Corrective maintenance • Verification and Roll-out • Service management and reporting Management Information Systems Division 18

Application Support Management Delta Processes and Services • Minor evolution • Extension of service parameters – Extra Working hours – Extension for the quality of service – Extension of the Functional Support (on-site/remote) • Engineering • Options – Application infrastructure management (base or full) – Site presence at ESAC Management Information Systems Division 19

Application Support Management SLA’s • CASP SLA / internal Customer SLA’s • Issue classification and severity • KPI – Observed, measured and reported – 2 categories: subject / not subject to penalties • Quality matrix – Acceptable limit values assigned to KPI Management Information Systems Division 20

Application Support Management Monitoring and Reporting • Performance of overall Process and Service management • Performance against service level targets for all KPIs • Non-conformances to the SLAs with root cause analysis • Penalties • Trend analysis • CA usage statistics • Statistics on the issues and tickets handled Management Information Systems Division 21

Application Support Management Support Tools • Knowledge Management • Communication Management • Change and Configuration Management • Ticket Management • Performance Management – CA Availability Monitoring – SLA Monitoring – Service Reporting • Test Automation Management Information Systems Division 22

Application Support Management ESA interfaces • Application Customer / User • Application Coordinator / Project Manager • ESA Service Supervisor • Technical Officer of the contract • Application Infrastructure Services and helpdesk: new IT OSP Management Information Systems Division 23

ESA interfaces Application Customer • Provides the funding for the Applications • Has authority over the: – business process – functionality • Exercises the governance of the applications assisted by the User Group Management Information Systems Division 24

ESA interfaces Application Coordinator • Application Governance: final OPS-E authority for any decisions concerning the Application – Responsible for the application vis-à-vis the Customer – Ensures that the Customer SLA is respected – Manages the Delta budget – Accepts the deliverables / Validates the releases – Co-chairs UG and governance meetings • Handles Application-related exceptions and escalations • Main user of CASP’s service Management Information Systems Division 25

ESA interfaces ESA Service Supervisor • Manages the Service – in particular conformity with SLA • Handles Service-related exceptions and escalations • Counterpart of CASP’s Service Delivery Manager • Final authority for any decisions concerning the Service Management Information Systems Division 26

Key Points • Emphasis on governance – Efficient organisation – Strong management and monitoring system – Pro-active attitude • Gradual reduction of number of problems / user issues • Coherent collection of all Support data • Synergies and cooperation with all interfaces Management Information Systems Division 27

Application Support Outsourcing Tender and Contractual Aspects S. Benetti, Head of General Procurement Service Management Information Systems Division 28

Application Support Outsourcing Tender and Contractual Aspects • Tender and Contractual Conditions • RELAX AND CHATTING • Transition Planning • ITT schedule • Questions and Answers procedure Management Information Systems Division 29

Application Support Outsourcing Tender and Contractual conditions (1) • Start-up and renewal – Transition – Duration 3 years + 2 • Termination and exit – Exit Phase – 6 month phase-out period on exit – Termination by Fault of contractor Management Information Systems Division 30

Application Support Outsourcing Tender and Contractual conditions (2) • Variation of scope – Applications added / dismissed • 2 -month notice • No cost for insertion/removal • Addition normally in FS mode then full mode • Possibility to hire independently manpower to solve the problems and CASP will pay for this. Management Information Systems Division 31

Application Support Outsourcing Tender and Contractual conditions (3) • Sub-contractors – Prime free to select sub-contractors NO EXCLUSIVITY AGREEMENTS – Prime retains full responsibility and single interface – Prime applies contract conditions to Sub – ESA can veto change of Subs in Op Phase – Change of Sub transparent to ESA Management Information Systems Division 32

Application Support Outsourcing Tender and Contractual conditions (4) • Winning Bidder Selection elements – Customer References – Price • ESA Non-Member States subs participation to be proposed as option Management Information Systems Division 33

Application Support Outsourcing Tender and Contractual conditions (5) Financial provisions • CA commitment for 3 years • Minimum guaranteed (70% of initial baseline value) • Cost decrease year-on-year • Benchmarking and price alignment • Penalties based on KPI Management Information Systems Division 34

RELAX & CHATTING Management Information Systems Division 35

Application Support Outsourcing Transition planning • Transition Phase 1, Jan to Apr 2007 – setup, familiarisation – Incumbents fully in charge • Transition Phase 2 – Incumbents' exit phase, May to June 2007 – Specific provisions for knowledge transfer • End of Transition Phase 2, June 2007 – Incumbents as support to CASP – SLA respected for, at least 3 weeks • Operational Phase July 2007 – CASP in charge and performing (responsible) Management Information Systems Division 36

Application Support Outsourcing ITT Schedule • 13 October 2006: ITT closing Date • October/November 2006: Evaluation • Mid Jan 2007: KO, start of transition • July 2007: start of operational phase Management Information Systems Division 37

Application Support Outsourcing Q&A • Written questions • ESA answers via EMITS reply Management Information Systems Division 38