Telecom operators meeting IT demands in the small and medium enterprise segment

Capgemini Telecom & Media Vienna, 22 March 2007

DI Michael Bartz (Sector Manager Capgemini Telecom & Media, Eastern Europe) michael.bartz@capgemini.com, Mobile +43-(0)664-621 86 18

The IT and communication service scope of medium and small enterprises is large and already complex to manage even in many small enterprises
IT and communication service scope

Large enterpr.

Scope of IT and communications services Applications ERP CRM DWH/BI, etc. WAN LAN Security Storage/data center Desktop Management Fixed line telephony Mobility IT governance

Medium enterprises
(50 to 250 employees)

Small enterprises (excluding SoHo)

(Up to 50 employees)

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Outsourcing and managed services are even more important to SMEs than to large enterprises
IT outsourcing affinity
IT complexity versus affinity to outsourcing SME IT Management needs and rationale 50% of medium size enterprises consider selective outsourcing of IT services1
Affinity to outsource IT
High Medium enterpr. Small enterpr.

20 to 30% of small size enterprises consider selective outsourcing of IT services1 Driver behind this is the strong need for core business focus in the SME segment In addition, one stop shopping is more important to small and medium size enterprises than to large enterprises in order to reduce complexity and minimise cost by means of service bundling

Medium

Large enterprises

Medium

High

Complexity of the IT infrastructure

Telekom operators play an important role in the service portfolio of SMEs and have the potential to embrace a wider service scope.
SME = Small and medium enterprises
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1 Source: Edmund Haberbusch, Ausgliedern steigert Kernkompetenzen, Die-Wirtschaft

2007 Capgemini - All rights reserved APA_KMUIT_20070322-FINAL.PPT

Telecom operators across Europe are extending their value chain in the area of IT services, going for system integration and outsourcing
Telecom operator value chain Integrated Telecom Operator
Network operation Wholesale Examples in the group of medium size Telecom operators KPN Belgacom Telecom Austria - Marketing Solutions - Productivity Solutions - Stability Solutions

Management & Administration

Residential segment (including SOHO) Fixedline telephony Mobile telephony and data services Internet TV and video

Enterprise segment Fixedline telephony Mobile telephony and data services Internet Corporate data Outsourcing System integration Business Consulting

IT services
= Extension of the value chain

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Extend the business in the IT services area is certainly a challenge for the Telecom industry
Challenges and strength
Challenges Especially for incumbents: Still the journey towards service orientation Adapt the new business model, i.e. system integration and outsourcing - Develop a comprehensive portofolio of service offerings - Develop and fully adapt best practice tools, methodologies and work processes - Make the next step into Consulting

Strength Advantage of having IT and communication services in the portfolio Excellent access to the SME market Critical mass of resources

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2007 Capgemini - All rights reserved APA_KMUIT_20070322-FINAL.PPT