Outsourcing reducing operational risk Adrian Amariei CEO Axonite

Outsourcing: reducing operational risk Adrian Amariei CEO, Axonite 19 oct 2006 for ALB Conference 2006

Agenda Today we will talk about: The promise of outsourcing Who does it and why Selecting and managing an outsourcing partner Our experience at Axonite: the sell, the good, and the bad, and still the good 19 oct 2006 for ALB Conference 2006 2

Current trends Factors driving today’s business environment • Standardization • Increasing competition • Ever-changing legislation • Upturn in the economy • Economic migration • Demographic changes • Social trends • The Digital networked economy 19 oct 2006 for ALB Conference 2006 3

Why outsource? • Non-responsive IT department missing delivery dates = lost market opportunities. • Difficulties to catch up with Technology changes and innovation • Shrinking IT CAPEX • Own IT organization does not provide industry best practices and processes • Multi-IT vendor environment = resources spent into managing contracts • Need to focus on core business. 19 oct 2006 for ALB Conference 2006 4

Who does it and why • Economies of scale and scope • Arbitrage: labor, skills and infrastructure 19 oct 2006 for ALB Conference 2006 5

Outsourcing guidelines 1 of 2 • Answer this: “why do you want to do it? ” • Consider any activity and processing that: • Is rule based • Is transactional • Is repetitive • Is not core • Has high volumes • You can measure properly • Don’t touch Strategic differentiators 19 oct 2006 for ALB Conference 2006 6

Outsourcing guidelines 1 of 2 Managing your outsourcer 19 oct 2006 • Pay attention to SLA • Check regulations on the issue and outsourcer compliance • Verify security of data transfers and processing • Ask for referrals • Check reaction time and quality to your requests for ALB Conference 2006 7

My Experience at Axonite • Axonite is about enabling the “real-time enterprise” with mobile messages. • We bridge business processes to real people in 6 seconds. • We connect Enterprise applications and databases to mobile phones. • Challenges we encountered, despite clear value proposition: • Enterprise pricing expected to be same as retail pricing. • “I can do that too” and TCO • Data quality 19 oct 2006 for ALB Conference 2006 8

How it works, actually • Let's see a quick live demo. • If you want to be part of it, please send a SMS with command ‘N’ and your first name to: 0788 555 Example: 19 oct 2006 ‘N Gabi’ for ALB Conference 2006 9

Why is this outsourcing strategic, and “realtime”…… all at the same time? ? 19 oct 2006 for ALB Conference 2006 10

Performance Indicators Framework 1 of 3 “If you can’t measure it – it doesn’t count” John Yard Customer, Financial, Strategic Customer 19 oct 2006 • Customer Satisfaction • Self-service • Completeness Response Rate • Service Availability for ALB Conference 2006 11

Performance Indicators Framework 2 of 3 “If you can’t measure it – it doesn’t count” John Yard Financial 19 oct 2006 • Call-Center OPEX • Aging of accounts receivable • Risk management for ALB Conference 2006 12

Performance Indicators Framework 3 of 3 “If you can’t measure it – it doesn’t count” John Yard Strategic 19 oct 2006 • Business advancement in face of competition • Time to market • Innovation • Continuous Improvement for ALB Conference 2006 13

What’s next? • It’s all about money in and money out. That is, PROFIT. • Gain your independence – escape the prison named ‘license’ • You need to be agile in the market place – though times are ahead • Have your next providers earn your money • Go Saa. S with some of your business processes. 19 oct 2006 for ALB Conference 2006 14

Quick review 1 of 3 Trends: 19 oct 2006 • Increasing competition • Ever-changing legislation • Upturn in the economy • Demographic changes • Social trends • The Digital networked economy for ALB Conference 2006 15

Quick review 2 of 3 Why outsource? 19 oct 2006 • Non-responsive IT department = missing market opportunities. • Difficulties to catch up with Technology changes and innovation. • Shrinking IT CAPEX • Own IT organization has natural limitations • Need to focus on core business. for ALB Conference 2006 16

Quick review 3 of 3 OK, we outsource – IF… 19 oct 2006 • Is rule based • Is transactional • Is repetitive • Has high volumes • You can measure properly for ALB Conference 2006 17

Adrian Amariei shall welcome your comments at a. amariei@axonite. ro +40 21 323 94 63 19 oct 2006 for ALB Conference 2006 18