Chris Walsh

1
Chris Walsh

• DirectorPartner Relationship Management

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About Telstra

• Australia's leading telecommunications
  information services company
• AU36 billion in assets
• AU22 billion sales revenue
• 1.5 million retail shareholders (1 in 6
  Australian adult s)
• gt 9.94 million Australian fixed line services
• gt 8.5 million mobile services
• 49,000 workforce

Australia is twice the area of India and has a
population of 20 million (1/50th of Indias).
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Telstras Services

• Basic access services to most homes and
  businesses in Australia
• Local and long distance telephone calls in
  Australia and international calls to and from
  Australia
• Mobile telecommunications services
• Broadband access and content
• Comprehensive range of data and Internet services
  (including Telstra BigPond, Australia's leading
  ISP)
• Management of business customers' IT and / or
  telecommunications services
• Wholesale services to other carriers, carriage
  service providers and ISPs
• Advertising, search and information services
  (through Sensis)
• Distribution of FOXTEL's cable subscription
  television services

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Our business environment has dictated the need
for us to do things differently

• Fixed line revenues declining
• Data and internet volumes growing exponentially
• Regulatory environment favouring competitors
• Ownership changes
• Duplication and complexity increasing our costs

• Grow revenue
• Cut costs
• Change the game pricing, services, services
  delivery
• Simplify the way we do things
• Change the culture

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IT Transformation Objectives

• Simpler
• Better
• Faster
• Focused
• Efficient
• Reliable

• Reduce duplication and complexity in Telstra's
  current systems
• Make it easier for our people to serve our
  customers
• Provide our customers with fast access to simple,
  easy to use products and services
• Make us easier to deal with.

Some 60 of Telstras current applications will
be replaced by the Transformation Programme
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Ten years of IT Outsourcing at Telstra..

• We outsourced to one major provider
• Operations services for servers (mainframe, Unix,
  NT)
• Portion of our ADM work - scope was typically
  technical design to system test
• We outsourced more ADM portfolios
• Expanded the scope of ADM work to be outsourced
• Moved from one to three major AD/M providers
• We increased the number of applications
  outsourced
• Transitioned some portfolios from one supplier to
  another
• Four major suppliers, including two Indian based
  companies
• Global delivery across all portfolios
• We are evolving our partnering with our key
  providers
• New agreement for Operations Services
• Moving away from smaller AD/M providers to our
  key global providers

1997 Start - up
2000 Extension
2003- 2005 Global Delivery
2006- 2007 Emerging Partnering
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have been fairly typical.

• Built around need for savings, efficiencies,
  savings, quality, savings and savings (not to
  mention savings)
• Did not envision a radically different
  applications landscape
• Transactional accountabilities and measurements
• Service Level and Productivity regimes that
• Are expensive
• Drive efficiency rather than effectiveness
• Incent optimisation at the transactional level
• Align tactical goals

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The next ten years of IT outsourcing at Telstra
must reflect..

• our need to be more agile rather than merely more
  efficient
• a different applications landscape where we
  derive lasting competitive advantage from what we
  do rather than the systems we use
• process efficiency is a means to achieve agility,
  not an end in itself
• relationship level accountabilities and
  measurements
• alignment of strategic goals

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and this will require our IT providers to deliver
on the rhetoric and meet the expectationsthey
have set.

• think as much about engagement processes as
  production processes
• warning signs apparent of big supplier syndrome
  in engagement processes
• get the sales people out of the relationship
• greengrocers provide a full range not just high
  margin product
• yes if and no but
• cross the cultural divide (dont leave it all to
  me)
• get the tactical issues off the table
• embrace deal- rather than transaction-level
  measures
• embrace business/relationship- rather than
  transaction-level goals and outcomes
• are you prepared to provide services to a
  competitor service provider?
• let us win the World Cup
• remember that India has more registered
  cricketers than the Australian population