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Research Bulletin APublicationfromINPUT'SOutsourcingInformationSystemsProgramme-Europe Vol.IV,No.22 — December1993 DVO Processing Services for the Manufacturing Sector DVOisasubsidiaryofDeutscheBabcock OfferingSAPR/2andCADAM Group,offeringprocessingservices BasedServices predominantlyfororganisationsinthe mechanicalengineeringsector. DVOis Exhibit2providesabreakdownofDVO's basedinOberhauseninGermany,buthas revenuesbyactivity. awide-areanetworkcoveringlocationsas diverseasHamburg,Berlin,Munichand Exhibit2 Cologne. RevenueBreakdown DVO'srecentrevenuegrowthisshownin byActivity,1993 Exhibit1. Activity Revenues Proportionof (DMm) Revenues(%) Exhibit1 DVORevenues Datacentreservice 53 74 1991 1992 1993 Consultingservices 15 21 Revenues(DMm) 63.5 70.5 72 Education&training 4 5 Growth(%) 11 3 Total 72 100 Source:DVO Source:DVO SeventypercentofDVO'srevenuesare captiverevenuesderivedfromfellow ThemajorityofDVO'srevenuesare subsidiarieswithinDeutscheBabcock. derivedfromitsSAPR/2andCADAM basedprocessingservices. Thecompany ©1994byINPUT.Reproductionprohibited. IEU-OSP INPUT Research Bulletin hasofferedCADandSAPoutsourcing ThelocationsofDVO'smajordatacentres servicessince1979andnowhas arelistedinExhibit3. approximately110customersforthese services. Exhibit3 DVOregardscostsavingsasthemajor Employee Breakdown drivingforcebehindoutsourcing. The Location NumberofPersonnel companyspecialisesinanalysingitsclient Employed costsandaimstoofferthemsavingsof 25%throughitsserviceofferings. Oberhausen 225 Insomeinstances,forexampleSempell Berlin 57 AG,DVOreplacesanSAPservicerunfrom Magdeburg 37 anexistingin-housedatacentrewithSAP outsourcingservicesrunfromoneofDVO's Aachen 10 owndatacentres.Inotherinstances,DVO providesclientswithacomplete Total 329 restructuringoftheirISactivities.DVO Source:DVO targetsgeneralmanagementnotIS managementinitssalesprocess. ThedatacentreinMagdeburgwas DseVrOv'icsespriiscbiangsefdorointsaSnAiPnitoiuatlsporuorjceicntgfee MacAquWirMedadagseaburresguelrtAofrmaactounrtreancwtewriktehAG. followedbyausagefee. HoweverDVO doesnotpriceitsusagefeesonCPU DVOemployssixoutsourcingsales utilisation,butpreferstobaseitspricing personnel. onthefollowing: NinetypercentofDVO'srevenuesare •numberofterminalsused derivedfromcompaniesinthe •numberoftransactions manufacturingsector. Howeverthe •memorycapacity remainingtenpercentarederivedfrom •telecommunicationsusage distributionsectororganisationsand •manpowercosts. employmentagencies. DVOisplanningstrategicpartnershipsto attaintheprocessingcapacityrequiredfor majorprojectsandhasrecentlyacquireda datacentreinAachen(AS/400) toserve midrangecustomers. ThisprofileisissuedaspartofINPUTsOutsourcingInformationSystemsProgrammeforthe loicnafloIrmNaPtiUoTnosregravniicseastiinodnusotrrPye.teIrfyLoiunehsavateIaNnPyUqTu,es1t7ioHnisllorStcroeemtm,eMnatysfaoinr,thLiosnpdroofnilWe,1pXle7asFeBcEalnlglyaonudr. (071)4939335,Fax(071)6290179 IEU-OSP 2 ©1994byINPUT.Reproductionprohibited.