Nikita Dergilev: Crisis allowed Technoserv to increase examination in the field of IT outsourcing

TAdviser: What services of IT outsourcing are provided by Department on service and outsourcing of Technoserv company?

Nikita Dergilev: If to be short, then we work in three key directions:

• complex technical support of infrastructure of the customer. All complex of works on service of the engineering systems of the customer and also outsourcing of its information systems, since support of separate services to a full complex service belongs to this direction;

• consulting and expert services. Audit and issue of recommendations, building of service processes at the customer, monitoring of activity of IT service of the customer or his contractors belong to this direction;

• "cloud" products and subscriber services. Within this direction the company provides "cloud" products and services (for example, IaaS services) according to the subscriber scheme with monthly or quarter payment.

TAdviser: What changes happened in this segment of business of Technoserv for last year? How did crisis influence them?

N.D.: Last year became for many organizations the period of expense optimization and cost reduction. Decrease in a capital expenditure (CAPEX) and growth of a share of operating expenses (OPEX) in a cost structure became a trend of the last year for all companies. Cost optimization concerned all areas of work, but the attention to IT departments was paid first of all. The significant growth of number of requests for rendering complex services in the field of outsourcing several times exceeding indicators of last year resulted.

Among customers the active growth of number of those who aim to receive the ready-made solution was observed and to pass to a subscriber consumption pattern of services. Persons interested to buy separately servers and separately solutions became much less. If 5-6 years ago the companies in the market still could undertake care of payback of investments made in IT, then now they are not ready to be engaged in it.

It affected business development of Department of outsourcing of Technoserv. Still a year ago in our portfolio there were practically no agreements with vendors on providing infrastructure and services with the subscriber scheme of payment; today they are.

Last year became time when we actively increased the examination and expanded a product line, aiming to increase the range of services of outsourcing in total portfolio of services of Technoserv. There was significantly an augmented list of vendors, the companies with which earlier in the Russian market not all were well familiar were included in it. The beginning of cooperation of Technoserv and the Israeli company Infinidat became a recent example of it. And inevitable difficulties with the choice of the western companies which some Russian customers faced led a turn towards import substitution to the fact that in the world market realized the fact of changes and an opportunity for new players to begin active promotion in Russia.

TAdviser: Now it would be desirable to ask several questions of IT outsourcing in general. When did this direction of business appear in the Russian market?

N.D.: IT outsourcing appeared in the Russian market long ago, just long enough this type of business was not taken out in the separate direction, and its name widely was not used. Began with the fact that some company, owning excesses of IT capacities, put part of them into operation of others to the companies.

TAdviser: It is possible to call transition to IT outsourcing natural continuation in business development?

N.D.: If to look at experience of the international business companies, then many of them passed for a long time or continue to pass to IT outsourcing. First of all it becomes for economy of costs. Of course, at the same time there are risks, but they are inevitable at any changes. Of course, also unsuccessful examples when as a result of transition not everything manages to be made perfectly well meet. But in general, transition to IT outsourcing is a universal trend in development of the companies, and the risks arising at the same time it is less, than the expected benefits.

The deep reason of transition to IT outsourcing is in other. Than further, it is more and more obvious to those that in the future impossible it will become full to be engaged in development of own IT. The purpose of development of the companies consists in specialization and high-quality rendering the services that requires involvement of profile specialists. At the same time the complexity of the applied IT technologies increases. Inevitably or there occurs stagnation in development of informatization in the company, or there is an unreasonable growth of costs for their permanent updating taking into account the general current level of development of IT. Transition to IT outsourcing for most the companies is inevitable.

TAdviser: Transition to IT outsourcing – it is difficult? To what it is necessary to be ready?

N.D.: The main thing in transition is it is detailed to approach process and to have patience. The first that needs to be understood at once: changes will happen during a long period and gradually, and the effect will occur not in two weeks or half a year, and is much later. It is important that it was understood in the guide of the customer, otherwise process can end with failure.

Transition to IT outsourcing cannot be compared to traditional transfer of the park of own equipment on warranty support of the external company – it becomes very quickly from 1 to 4 weeks depending on the scale of the company. Real transition provides longer process. He mentions identification of the numerous communications existing at the current IT department. Especially if in the company the large IT department was created, and the organization locates territorially spaced assets and supports operation of several systems critical for business in general. Transition to IT outsourcing allows to achieve economy of operating expenses, growth of quality and flexibility of IT processes. But it is necessary to prepare that for achievement of effective objectives it is necessary to go a long way – not less than a year.

TAdviser: How to make that transition to IT outsourcing turned out successful and passed as soon as possible?

N.D.: For this purpose at first careful audit of everything is carried out that is connected with work of IT and planned for transfer for outsourcing afterwards. This stage carries the name Due diligence. On the next stage experts in the field are attracted, discussions with other companies are carried out. A problem of this stage it is not simple to prepare the tender, and to make serious qualification selection of possible candidates for participation in it. Further there comes the negotiation stage with each of the planned candidates. It is necessary to listen to their offers, to provide own arguments, to study the corrected offers. The choice of the best partner for carrying out further works should become result of negotiations. It is a starting point already for detailed planning. It can take several months. After its termination the stage of transfer of IT assets, personnel, reorganization of processes, etc. begins. Process of migration takes from several months to one year. It makes sense to sign the contract for outsourcing for 3-5 years. In this temporary perspective the notable effect of outsourcing is reached.

Even at the beginning of the described process it is necessary to provide that instead of own IT department in the company there has to be a compact and qualified Service of the customer.

One more important point – transition to IT outsourcing is, as a rule, inconceivable if in the company there is no visionary of this initiative in board. He undertakes a problem of promotion of all future changes and control that they will be brought to a real successful completion. If not to make it, then process of transition can be dragged out, and changes will be braked and slip halfway.

TAdviser: Whether transition to IT outsourcing is decrease (or growth) the IT level of the company?

N.D.: As practice shows, in most cases the team of the outsourcer is staffed with more qualified IT specialists, than own staff of IT department of the company. Through a command of service provider there passes a huge number of projects. On them experience on implementation of different practical tasks is accumulated. The outsourcer specializes in service of IT processes and services, ensuring their controllability. All this says that transition to IT outsourcing becomes for the customer a step forward on accumulation of level of the information systems.

But if in the company aim to save own IT department at the high professional grade, then its development should happen in parallel, without being crossed with areas of responsibility of an aursorser.

TAdviser: When such separation is necessary?

N.D.: Such scheme is applied by some banks. For example, when they have the specific appendices written by own forces and there is no confidence that the company outsourcer will be able to support their operation up to standard. Besides, it makes sense to enter separation if there are requirements for security or specific requirements of regulators (for example, requirements of the Central Bank for banks).

TAdviser: "Cloud" calculations, projects on safety of work with personal data, import substitution – whether are these trends defining, pushing the companies to transition to IT outsourcing?

N.D.: After all not technologies, but business challenges of the company are primary. The efficiency, including financial, at outsourcing is higher. In crisis of the company begin to optimize costs, try to do the business is better, respectively, look at outsourcing. It is the most important incentive for the companies. Many companies can construct all the rest (security, "clouds") if they have enough means. It concerns the first stage of transition to IT outsourcing as new model of business.

TAdviser: Really the role of new technologies is not so big how it can seem from outside?

N.D.: An example of the recent past – creation of remote jobs through VDI. Emergence of this technology did not become the reason for the spasmodic growth of IT outsourcing. Implementation of new technology happened gradually and often own forces of the companies.

Of course, in Russia new services appear, new virtualization platforms come to the market, new DPCs are under construction. But IT outsourcing grows not because there are new technologies, and owing to absence at customers of sufficient means for their implementation by own forces. The IT at first proves the costs which are planned for several years ahead before business. As a result of IT comes to understanding of need of economy to have bonuses in KPI. So there is interest in transition to IT outsourcing.

TAdviser: Let's return to what occurs in the market now.

N.D.: Before crisis a number of the large western companies having own representations in Russia traditionally adhered to the following scheme of work: they signed the centralized contract with large western integrator which performed support of the equipment or the system of vendor. Operation of the contract extended worldwide, including to Russia.

After sharp jump of currency rate, payments in the invested currency became unreasonably high for many in Russia. In new conditions the Russian office of the western vendor had to look for alternative option on behalf of the local integrator having sufficient competences for replacement of western.

The situation and from the Russian side changed. For example, the Russian banks, the telecom companies, large industrial enterprises before crisis preferred to work under the direct contracts with the western vendors, getting technical support and services. Still quite recently the western producers acted in local market as direct competitors for the Russian integrators. Now large business was unrolled towards the Russian integrators and offers them major problems, aiming to receive necessary services in former volume, but also at the previous level of financing of projects. To achieve such result of the company go on less severe conditions at signing of the contract. New approach from business gave to the Russian integrators more freedom. They had an opportunity to look for solutions and to try to obtain the necessary quality of providing service.

TAdviser: How these changes were reflected in Technoserv?

N.D.: For Technoserv the impact of changes in the market was not so negative. Moreover, even the positive shade appeared. Customers ceased to look for simple solutions and began to consider complex offers on business optimization actively. As a result we had more interesting offers on IT outsourcing, than were earlier.

Today we are engaged in simple support of IT infrastructure less. In our portfolio there were more complex projects. Moderate growth of expenses of the customer at significant accumulation of volume is characteristic of them employed it. As a result the customer receives economy, reducing or optimizing payments which he had to bear in case of continuation of contracts with large vendors.

TAdviser: What services belong to complex IT outsourcing?

N.D.: It is the expanded technical support providing professional consultations of specialists, monitoring, routine maintenance, repair.

TAdviser: Do you need to develop partnership for IT outsourcing project implementation?

N.D.: We essentially do not aim at implementing all projects by exclusively own forces. There are certain categories of services which are more correct for transferring to partners.

Let's take for an example maintenance. There is no need to support in each region, in each small town of the country, specialists experts to service simple IT infrastructure, for example, cash registers. Or other option – ERP solutions on the basis of SAP where special, highly specialized knowledge is required. We attract the partners having necessary examination to maintenance of such IT solutions.

Now we conduct works on expansion of the partner network. We worked own high standards, rules of relationship. Now we are going to extend them among our partners to provide the necessary quality level and observance of an implementation methodology. New standards extend not only to a stage of carrying out audit of partners, they extend to all areas, up to such attributes as appearance of employees of the partner. Partnership is the effective direction of business development, profitable to us. We aim at distributing loading and to allow each partner to work according to his specialization and scale.

TAdviser: Whether there are in your practice already examples of implementation of such partner network of IT outsourcing within project implementation with the big customer?

N.D.: For example, our project on service of IT infrastructure of Federal Migration Service. The feature of FMS of Russia is a large number of maintenance entities and also the need for accomplishment of frequent routine transactions on places.

For accomplishment of simple routine transactions we attract the regional companies, at the same time making careful preliminary selection. Partners act for us as the second tenches of support, being seamlessly built in our service processes and systems, for example, all partners work in our Service Desk, are controlled by ours service by managers, interact with our first and third support lines. As a result we received not only effective solution, but also could increase the examination on contractor management, having reached high-quality interaction with them.

Other example of the implemented partner policy – cooperation with the companies providing unique technology examination. Cooperation in this case develops according to such scheme: our partner "closes" the third support line of the project solution, and Technoserv undertakes works on direct customer interaction (1 line) and remote maintenance (2nd Line). Our partner removes from himself need of direct communication with the customer which often requires not so much deep examination, how many analysis of simple situations. The projects connected with service of the difficult engineering equipment, operation of the equipment of large DPCs, etc. allow Technoserv to execute building of similar partnership effectively.

TAdviser: How to become the partner of Technoserv?

N.D.: For this purpose the separate service works for our Department. There is also general service of resource management within all company "Technoserv". Both services work on in advance worked scheme. On the website of Technoserv all necessary information allowing to learn what type the partner companies in what region and with what specialization are necessary to us is provided. When the company with necessary competence comes to light, it undergoes the procedure of check after which receives authorization and an opportunity for work within the joint partner agreement.

TAdviser: In what vertical markets does IT outsourcing of Technoserv specialize?

N.D.: First of all, it is banks and financial institutions, government institutions, a telecom and the energy companies.

TAdviser: On what directions there are good perspectives of growth?

N.D.: We expect growth of interest in IT outsourcing from the industry. Now there is a process of transition to use of "smart" machines, upgrade of design offices. All changes require attraction of IT. As for the IT industrial enterprises – not the profile direction, it creates premises for growth of their interest in development in itself of IT outsourcing.

TAdviser: What territories cover projects of IT outsourcing of Technoserv?

N.D.: We work across all territory of Russia. In the list of our clients there are also representatives of neighboring countries.

TAdviser: It is possible to select Russian regions where the high demand on IT outsourcing is observed?

N.D.: Our activity is strongly connected with activity of business in this or that region. However it is necessary to consider where there is a decision point. The vast majority of the companies, even those which have production in the Urals in northern regions, have managing offices in Moscow. Exactly there takes place preparatory work, and delivery of service of outsourcing is executed already through the whole country. In regions where demand for IT services still not really high, we use services of contractors.

Our own IT examination first of all is provided in million-plus cities, first of all in Moscow. In addition, we actively support and we develop the regional centers. It is connected with a possibility of remote work within outsourcing projects. Now in most cases there is no need to hold people directly on the IT platform of customers. Experts can be in any point where there is an Internet access and to service any territories, including northern regions, the Far East.

The problem of the choice of points of placement of our main platforms is connected, first of all, with presence of the technical universities where specialists with strong technical competence prepare. There is not a lot of such higher education institutions in the country. Therefore, for example, we have a strong office in Voronezh where there is a good technical base.

TAdviser: Whether there are differences in the relation to IT outsourcing from business and state companies?

N.D.: Business and state companies approximately equally approach this question. A difference only in the speed of decision making and its scales. Business companies, often, are more operational. In large state companies process turns out longer. It is necessary to observe repeated approvals, to consider changes of the current regulations. It does process of transition to outsourcing more difficult and labor-consuming.

By my estimates, now taking into account the crisis period, interest in transition to complex outsourcing is shown, first of all, by business companies and medium-sized state companies. In the near future it is possible to expect growth of interest from large business companies. State companies will come for them.

TAdviser: Whether there are features of influence of the state departments on development of IT outsourcing in the country?

N.D.: Strangely enough, but state structures, in my opinion, should become the main engine for active development of IT outsourcing. It is connected with the fact that the level of training of IT personnel and their salary rates often does not allow public institutions to develop at themselves necessary IT services in full at the sufficient level. Moreover, moving on the way of optimization of the state, in state structures the first representatives of auxiliary divisions, including IT personnel get laid off.

At the same time in state structures significant growth of the functions requiring serious IT support is observed: SIEI, electronic document management, portals of state services. Moreover, in large state structures – the FMS, Rosrezerv, Rosreestr – goes permanent process on accumulation of huge information volumes and it is possible to work with these data only based on IT.

TAdviser: Call the large projects of IT outsourcing executed by Technoserv last year?

N.D.: During 2014 Technoserv more than increased revenue by 50% on outsourcing projects for state structures. We work with such customers as the Pension Fund of the Russian Federation, Federal Treasury, not to mention long fruitful work with FMS of Russia. Also from customers in this area MTS, Sberbank, Promsvyazbank, the Central Bank of Russian Federation, VTB 24 are selected.

TAdviser: What interesting projects of last year connected with building of your examination in IT outsourcing, could you call?

N.D.: It would be desirable to note the project with Alfa-Bank where we are engaged in expert support of a data network. This project mentions all key nodes of network infrastructure, including a data processing center and a processing center. Works are performed as on objects, and far off and require the high level of examination.

Other interesting project is connected with service of a part of network infrastructure of Rostelecom. In this example the customer shows understanding that its main objective is the consumer service delivery, but not works on repair of the telecom equipment. New approach allows Rostelecom to concentrate on key functions, providing network on outsourcing and receiving at the same time serious economy in the costs.

Development of logistics of own model of provision of services was the following project, important for Technoserv. Earlier many services were rendered to the customer by own forces. Now Technoserv approaches the new system of the organization of regional work. We create the centers of regional competence, we will organize logistics management, we conduct recalculation of routes on the next regions. It allows to optimize costs significantly. Now based on new organizational model we execute the project connected with service of engineering infrastructure for one of large banks. In the future we are going to replicate the accumulated experience on other projects.

There is one more interesting project connected with service of the large DPC which is located abroad. Its importance for us is shown, first of all, that the customer showed complex approach to the idea of IT outsourcing. In this project the customer is in one place, DPC in another, and its service is performed from the third. As a result the "ideal" model of outsourcing where breakdown of roles is worked deeply out turns out and complex approach is applied to the choice of effective solution. Technoserv in this project acts as an effective link in a system the price quality that allows our customer to compete on equal terms on the international scene.