JUNE 1994 Desktop Services Outsourcing Europe, 1994 INPUT Frankfurt • London • New York • Paris •San Francisco • Tokyo • Washington D.C. INPUT International IT Intelugence Services INPUT Worldwide Qientsmake informeddecisions more quickly and economicallyby using INPUT'S Frankfurt services. Since 1974, informationtechnology (IT) users and vendorsthroughoutthe SudetenstraBe 9 world have relied onINPUTfordata, research, objective analysis and insightful D-35428 Langgons- opinions to preparetheirplans, market assessments andbusiness directions, Niederkleen particularly incomputersoftware and services. Germany Tel. +49 (0) 6447-7229 Contactus today to learnhow yourcompany canuse INPUT'Sknowledge and Fax +49 (0) 6447-7327 experienceto grow andprofitinthe revolutionary IT worldofthe 1990s. 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ForBuyers—evaluate: Tel. 1 (415) 961-3300 Research-based reports ontrends, etc. Fax 1 (415) 961-3966 (Over 100 in-depth reports ayear) • Specific vendor capabilities Tokyo • Outsourcingoptions Saida Building, 4-6, Frequentbulletins onevents, issues, • Systems plans Kanda Sakuma-cho etc. • Peer position Chiyoda-ku, Tokyo 101 5-yearmarketforecasts Japan Competitive analysis Other Services Tel. +81 3 3864-0531 Fax +81 3 3864-4114 Access to experienced consultants Washington, D.C. Acquisition/partnership searches Immediate answers toquestions 1953 GaUows Road Suite 560 On-sitepresentations Vienna, VA 22182 U.S.A. Annualconference Tel 1 (703) 847-6870 Fax 1 (703) 847-6872 M&S453/012/94 DESKTOPSERVICESOUTSOURCING-EUROPE, 1994 INPUT Abstract Many organisations have already outsourced their mainframe , operations. These organisations, and others, are now evaluating how best to manage their emerging client/server and desktop IT infrastructures. Many options are open to these organisations since desktop services consists of a large range of service elements, any combination of which could potentially be outsourced. This report endeavours to identify the combinations of services that organisations are likely to outsource. In particular, it analyses current satisfaction with desktop service components, attitudes towards outsourcing, the nature of the bujdng process and attitudes towards potential vendors. ©1994byINPUT.ReproductionProhibited DESKTOPSERVICESOUTSOURCING—EUROPE, 1994 Research by INPUT 17 Hill Street London W1X 7FB United Kingdom Published by INPUT 1881 Landings Drive Mountain View, CA 94043-0848 United States of America Outsourcing Information Systems — Programme Europe Desktop Services Outsourcing—Europe, 1994 Copyright© 1994by INPUT.Allrightsreserved. Printedinthe UnitedStates ofAmerica. Nopartofthe publication may be reproducedorcfistiibutedinanyform,orbyanymeans,orstored in a database or retrieval system, without the prior written permissionofthepubfisher. Theinfonmationprovidedinthisreportshallbeusedonlybythe ernployeesofandwitNnItiecurrentooqxraSsstructureofiNPUTs clients,andwill notbedisclosedtoanyotherorganisation or personincludingparent, subsidiary, oraffiliatedorganisation withoutpriorwrittenconsentofINPUT. INPUTexercisesitsbesteffortsinpreparationofttieinformation Rrovidedin thisreportandbelievestheinfonnation contained ereintobeaccurate. However, INPUTshallhavenoliabilityfor anylossorexpense thatmayresultfrom incompletenessor inaocuracyoflheinfonTialionprovided. OSPR*566* 1994 1 - DESKTOPSERVICESOUTSOURCING—EUROPE, 1994 INPUT Table of Contents Introduction I-l A. Scope and Objectives I-l B. Methodology 1-2 C. Report Structure 1-2 D. Related Reports 1-3 II Executive Overview II- A. Users Believe Outsourcing Desktop Services Improves Service Responsiveness U-l B. Organisations Need Breadth ofSupport 11-2 C. Spreading the Cost ofTechnological Refreshment 11-3 D. Estabhshing the Importance ofPro-Active Help Desk Services 11-5 E. Increasing Awareness ofVendors' Capabilities 11-7 III Users Require Assistance in Utilising the Potential ofthe Desktop III-l A. Third-Parties Used for LAN Installation m-1 B. Users Need Improved Access to Information 111-6 C. Update Management and Asset Management are Inadequately Performed HE-10 D. Services Need to be More Pro-Active and Cost- Effective IE-IS OSFQ ®1994bvINPUT.ReoroductionProhbited. i 11111 DESKTOPSERVICESOUTSOURCING—EUROPE, 1994 INPUT Table of Contents IV IT Managers Remain Reluctant to Outsource Operational Management IV- A. Cost Reduction Remains A Key Benefit IV- B. Users Believe Outsourcing will Improve the Focus of the IT Department IV-4 C. IT Managers Want Second-Line Technical Support IV-10 D. Users Are More Prepared to Outsource Operational Management IV-15 V Vendors Need to Market Services at Board-Level V-1 A. IT Managers Are Major Influence on Desktop Services Expenditure V-1 B. Cost and Breadth ofTechnical Skills are Key Selection Criteria V-4 C. EDS Has Comparatively High Profile V-11 VI Vendors Announce Desktop Services Offerings VI- A. Hewlett-Packard introduces Selective Outsourcing Vl-1 1. Focusing on CHent/Server Computing VI- 2. Targeting CIO's and CFO's VI-3 HP 3. Su—pported by Other Divisions VI-5 B. ITnet ^Targeting Distributed Systems Outsourcing in Local Government VI-6 1. Developing Distributed Systems Outsourcing Services VE-7 2. Targeting Managed Services in Local Government VI -1 3. Developing International Partnerships VI-12 C. SHL Systemhouse Aims to be Global Leader in Transformational Outsourcing VI-13 1. EstabHshing Transformational Outsourcing Services VI-13 2. Focusing on Postal Authorities and Banking & Finance Sectors VI-16 3. Growth by Acquisition VE-17 ei994bvINPUT.ReoroductionProhibited. OSFQ DESKTOPSERVICESOUTSOURCING—EUROPE, 1994 INPUT Table of Contents Appendixes A. User Questionnaire A-1 OSFQ 01994bvINPUT.ReoroductionProhibited. iii — DESKTOPSERVICESOUTSOURCING—EUROPE, 1994 INPUT Exhibits -1 Desktop Support Challenges 11-2 ' -2 Areas ofLow Satisfaction: User Perspective 11-4 -3 Scope for Service Improvement: User Perspective 11-6 -4 Purchasing Control: Desktop Services 11-7 -5 Perceived Benefits ofDesktop Services Outsourcing Users and IT Managers 11-9 -1 Third-Party Service Delivery: Europe m-2 III -2 Third-Party Service Delivery France, Germany, and U.K in-4 -3 IT Department Service DeHvery: Europe in-5 -4 IT Department Service DeHvery by Country in-5 -5 Principal Challenges: Support ofDesktop Infrastructure in-7 -6 Service Quahty by Country in-9 -7 Overall Service Quality User vs. IT Manager Perspective in-9 -8 Best Supported Functions: Desktop Services- Europe m-io -9 Ratings ofBest Supported Fimctions by Country m-ii -10 Best Supported Functions: User vs. IT Manager Perspective in-12 -11 Worst Supported Functions: Desktop Services Europe in-13 -12 Ratings ofWorst Supported Desktop Functions France, Germany, and U.K. in-14 -13 Worst Supported Functions User vs. IT Manager Perspective m-15 iv ©1994bvINPUT.ReoroductionProhibited. 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