Noiseless Transition

Infosys enables T-Mobile UK to faster realise the benefits

of outsourcing its Finance Directorate Functions
Abstract
Noiseless and on- time transition is essential to ensure that firms are able
to maximize the value gain and succeed in their outsourcing initiatives.
This case study details how T-Mobile UK and Infosys BPO worked as
trusted partners to leverage on Infosys proven transition methodology to
successfully transition the transactional processes in the Finance Directorate
function of T-Mobile UK, despite the presence of a number of factors which
made the transitioning process complex and challenging.
Dec 2009
2 | Infosys Case Study
T
T-Mobile UK is a part of the Deutsche Telekom group that operates Fixed,
GSM and UMTS networks in Europe and the United States. T-Mobile UK has
more than 17 million subscribers and 6000 employees making it one of the
largest operations in the Deutsche Telekom group.
CL I ENT
O V E R V I E W
Background and Business Drivers for outsourcing
T-Mobile UK was looking at means of structurally reducing the cost of its business processes while focusing on those activities
that are core to its brand and growth. As part of this strategy, T-Mobile UK carried out an assessment of transactional activities
in its Finance Directorate with a view to partner with a service provider to deliver these activities.
Scope of the outsourcing initiative included various processes within the Finance Directorate such as Accounts Payable (AP),
Accounts Receivable (AR), Procurement, Reporting, Credit Referral, Fraud, Billing and Commissions, Data Management
Office, Interconnect and Roaming Settlement, Fixed Assets and Revenue Accounting.
Customer
Finance
Credit Referrals
Billing and
Commissions
Fraud
Settlement
Procurement &
Controlling
Corporate
Controlling
NT
Controlling
IT Capex
Controlling
Procurement Ops
Procurement
Support
Accounts
Payable
Accounting
Fixed Assets
Equipment &
Commission
Data
Management
Office
Commercial
Finance
Customer Service &
Sales Organisation
(CSSO)
Controlling
Marketing
Controlling
Planning
Reporting
Finance Directorate
T-Mobile UK was keen that the relationship with the chosen service provider should extend beyond mere cost arbitrage. With
this view, three key business objectives were outlined as part of the outsourcing strategy:
1. To drive operational efficiency to gain competitive advantage
2. To improve quality of service by allowing greater focus on value-add processes
3. To take decisive action to deliver cost savings and quality within the first year of partnership
Infosys Case Study | 3
T-Mobile UK was clear that establishing a partnership relationship with the chosen service provider (rather than a client-
provider relationship) was key to achieving these objectives. Hence, they set in place a very rigorous approach towards
selecting the right partner which consisted of multiple vendor site visits and stringent capability analysis. Infosys was selected
as the outsourcing partner to T-Mobile UK, post the rigorous vendor capability assessment.
The Transition Approach
T-Mobile UK had three key objectives from transitioning the processes adopted by Infosys:
Realise the benefits and any synergies available through outsourcing of the in-scope services
Accept the handover of the current services without experiencing undue operational issues and
Maintain existing service levels during transition
Following were some of the challenges anticipated at the start of the transition:
Change management: The retained organisation would be expected to learn a new way of doing things - from managing
processes to managing relationships and acquiring new skills.
Complexity of the transition: The transition was expected to be complex given that there were 4 departments, 21 processes,
130 sub processes, about 70 FTEs at risk, 35 Infosys staff to be trained onsite at T-Mobile UK offices in Hatfield, UK and
multiple transition waves with multiple processes in each wave.
Cultural differences: The challenge here was to integrate two different organizational cultures but also to ensure that any
negative feelings on the part of T-Mobile UK employees were diffused. Cross cultural differences between UK and India also
needed to be accounted for.
Need for accelerated Transition: The transition timelines were challenging with all in-scope processes required to go-live
within 5 months of the start of the first onsite training. Tight timelines also meant that there was very little or no scope for
slippages and need for faster decision making.
Lack of Prior Exposure to Outsourcing on the part of the T-Mobile UK Finance Directorate: Since T-Mobile UK finance
directorate was outsourcing for the first time, Infosys was expected to provide their transition expertise and deploy a proven
methodology. It was also critical for T-Mobile UK to have internal and group stakeholders support the initiative.
Risk of loss of T-Mobile UK resources during transition: A critical risk identified at the start of the transition was potential loss
of T-Mobile UK staff during the transition phase. Loss of key resources would mean loss of process information which could
render the knowledge transfer to Infosys ineffective.
Maintaining Service Levels: It was critical to the success of the transition that existing metrics were not adversely impacted.
The T-Mobile UK staff was expected to dedicate significant amount of time to transfer knowledge to Infosys teams leading to
a potential drop in service levels.
The Infosys Approach towards Noiseless and Accelerated Transition
In order to overcome the above anticipated challenges during the transition, Infosys implemented its rigorous Transition
Methodology consisting of 5 stages (Preparation, Planning, Execution, Parallel run and Steady state) across 5 tracks
(Knowledge management, Contract management, Program Management, Operations and Technology management). Rigorous
tollgate methodology was used to ensure movement of the project from one stage to another.
Specific customer acceptance criterion was agreed upon during the contract discussions to agree on specific performance
parameters that Infosys should deliver to move processes from Transition to Steady state/Business as usual.
The transition of 21 processes (with over 130 sub processes) in scope was done in 3 waves to ensure minimal impact on
existing operations. Careful planning of onsite training timelines ensured that service levels were not impacted due to
T-Mobile UK SMEs spending time training Infosys staff. Detailed documentation of processes through training manuals
ensured completeness of knowledge transfer. The offshore parallel run was supported by TMobile UK SMEs travelling
offshore to Infosys location in India for a period ranging for 1 to 4 weeks.
4 | Infosys Case Study
The Infosys Telecom Centre of Excellence also put together a two day training program comprising of an Overview of the
Wireless industry from a UK perspective and a foundation module on telecom billing to give the Infosys employees an
exposure to the client business environment.
Transition Life Cycle
Preparation Planning Execution Parallel Run Steady State
Go Live
Customer
Feedback
Tollgate Review
1
Tollgate Review
2
Tollgate Review
Health
Check 1
Health
Check 1
Health
Check 3
3
Tollgate Review
4
30 60 90 days
Transition
Warranty
Contracts Management
Define and agree on SLAs and other contractual elements
Operations Management
Hire and train process executives; ensure operating process procedures & physical infrastructure
Technology Management
Design & Implement Technology Infrastructure
Knowledge Management
Understand, Capture & Transfer Knowledge
Program Management
Plan, monitor and communicate progress across tracks

Critical factors that led to a successful Transition
Commitment from T-Mobile UK and Infosys BPO top management: The project enjoyed continued support from the senior
management teams from both sides which provided a clear direction to the project at all stages. The Finance Leadership Team
(FLT) from T-Mobile UK and Infosys BPO senior management met regularly during the course of the transition to review
progress and provide support for issues that needed immediate resolution. Senior leadership from T-Mobile UK also visited
the Infosys BPO operations floor to engage with the Infosys resources.
Robust Governance Model: Governance approach/model was agreed upfront and diligently operationalised throughout the
duration of transition. Governance included weekly steering committee calls, technology and transition review calls. The
Governance was managed through an agreed set of meetings at senior management (Heads of departments), operational
(Process Managers) and project level (Transition and Project Managers). Senior management meetings were fortnightly to
begin with and then monthly as the project progressed. Operational meetings were weekly and in some instances daily while
the Project level meetings were weekly with representation from Operations, Technology, senior management and Project
managers.
Infosys Case Study | 5
Partnership Approach: All stakeholders from both sides ensured that all issues were seen as project issues rather than Infosys
or T-Mobile UK issues. This ensured speedy resolution of issues. The relationships formed at all levels with both retained and
non retained resource were outstanding and a significant benefit to the project.
Proactive Project Management: Risks and Issues were highlighted by both sides proactively which ensured that issues did
not become risks and risks were mitigated to stay on track. Risks and issues were addressed quickly and many were resolved
without having to be raised at a project level. A rigorous risk tracking method was followed with risks tracked on a weekly
basis at the project level. Risks that required senior management attention were highlighted in the fortnightly Finance
leadership team meetings. A dedicated central project management office was set-up which ensured consistency of approach
(in regards to training and documentation) across 130 processes.
Speed of Response: Dedicated project management team from both sides ensured speed of response. The project management
team consisted of program managers, technology, operations and training leads from both sides. Faster decision making was
ensured by agreeing on the process to be followed for making decisions, specifically those requiring exceptional approvals
and close involvement of senior management from both sides. Continuity of project teams from both sides ensured that the
ball didnt drop due to hand-offs. This was true of teams from T-Mobile UK and Infosys side with same teams working right
from Due Diligence to the Project closure.
Robust Organisational Change Management: T-Mobile UK management was committed to managing change not through
monetary incentives but through continuous communication in an open, fair and proactive manner which ensured that
resources at risk always felt trusted, respected and involved in the change process. The TMobile UK senior leadership
was committed to continuously communicating to the staff about the progress of the project. Continuous dialogue with
consulting/ people managers ensured involvement of teams throughout the duration of the project. Significant amount of
time was invested in communicating to the retained resources as well as the staff at risk. An outplacement cell to support staff
at risk was also set-up to help staff at risk find right opportunities in the market.
Selection of Right Resources: Right set of resources were involved in training from both sides. Infosys resources were sensitive
to the situation that the staff at risk was involved and the T-Mobile UK trainers were extremely professional throughout the
training duration. Infosys ensured that all 35 staff to be trained onsite was prepared through a pre-training boot camp to
effectively handle the sensitivities of staff at risk. This also ensured that the two teams integrated well ensuring a smooth
transfer of knowledge.
Key Learnings
Infosys has successfully transitioned over 1000 processes over time, and has evolved a robust methodology to ensure
successful transition of processes without business interruption. However, each transition process presents its own learning
opportunities. Presented below are Infosys and T-Mobile UK s joint learnings from the transition process.
Technology related: Technology which has a major external dependency (either an external vendor or an internal
company group) e.g network connectivity deployment by an external service provider, scanning solution provided by
a third party - needs to be managed closely and tightly. Seemingly simple tasks like granting application accesses need
to be planned in advance to ensure that accesses are made available to all on time. This can be done through a detailed
analysis of the application inventory. Similarly any technology deployments e.g workflow solution aimed at improving
operational efficiencies need to be planned as a separate project with dedicated resources with specific skills to ensure
that deployment timelines match the overall project timeframes.
Cultural integration: The cultural integration exercise needs to start in the early stages of the implementation - this is
especially critical when the outsourcing company/client is offshoring for the first time. Significant number of issues
can be avoided through better understanding of differences in culture and ways of working. This exercise needs
to involve all of the retained organization and focus on dimensions of cultures - power distance, individualism vs
collectivism, uncertainty avoidance, long-term versus short-term orientation etc
Timelines for Transfer of Learning: Judgmental processes need higher training duration - process involving higher
levels of judgment and local market context need to have higher training and stabilization durations. E.g processes
like credit underwriting and fraud management may need extensive training and stabilization durations than other
transactional processes like AP or AR.
Clear definition of scope: A rigorous approach needs to be adopted to clearly define the in-scope and out of scope
activities. This needs to be supported by detailed documentation.
6 | Infosys Case Study
Benefits of successful and noiseless transition delivered:
The success of the transition is highlighted by the following key achievements
1. Project delivered GBP 16,000 under budget (savings delivered to T-Mobile UK as against the originally estimated
transition cost
2. 100% on-time recruitment
3. 95% on-time completion of onsite knowledge transfer/ training
4. Zero escalations
5. 90% on-time delivery of the project
6. Business case being delivered
Laying the Base for Process Optimization
Clients are increasingly looking beyond mere cost arbitrage when it comes to outsourcing. Fast and noise free transition
coupled with a deep understanding of client business drivers has enabled Infosys to add value to the T-Mobile UK
processes through process standardization and harmonization initiatives right from the start of business operations. Process
improvement initiatives implemented in the first quarter of operations include:
Automation and creations of tools for streamlining AP and AR processes
Improvement in recovery of aged debt
Improvement in fraud analysis to detect potential fraud, reduction in ID Fraud loss amounts
All priority Key Performance Indicators (KPI) met
Improvement of Days Commissions Outstanding KPI by 6 days
A partnership approach based on mutual trust and transparency is essential to
successfully transition business processes noiselessly as this enables both sides to
develop a long term view of the relationship without compromising on mutual short
term benefits. Partnering with an outsourcing firm which has the capability to quickly
imbibe client business value drivers will enable clients to not only ensure non-
interruption to regular operations but also to start gaining business value at the
onset of relationship itself.
C
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C
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Lars Nordmark Finance Director
The top Finance leadership team committed a lot of time and energy to our outsourcing
journey. From the onset, we were very clear that we were looking for a long term relationship
and had set out some pretty stringent criteria for choosing our outsourcing partner. Our
expectation from our partner was not limited to just achieving KPIs, we also wanted them to
optimize our processes long term. At the end of the transition and 4 months into steady
state, I am happy to say that we have developed a true partnership. Not only are the KPIs in
the green, we are also seeing process improvements as well. Thats not to say that we have
not had challenges to overcome, but thats what you would expect in a transformation
programme. Overall I am very happy with what we have achieved.
Tim Spence Head of Customer Finance
Infosys was selected based on consistency of performance across the 4 stages of assessment
(pre-visit, site visit, RFP, presentation) as well as key cultural, compatibility and commercial
differentiators that best aligned to T-Mobile UKs goals. The decision to award the contract
was a unanimous one. I must say that the way Infosys managed the transition process
convinced us that we were not wrong in our decision. Not only has the business case been
delivered and all top priority KPIs been met, but we have seen some initial success in terms
of process improvements. Infosys team in India is now working as an extension of our finance
directorate here in Hatfield.
P-O Ahlstrom Head of Compliance Change & Service Relationship Management
We always knew that the success of the relationship was dependant on the two teams
working as one and its great to be in a position of true partnership within just a few months
into the steady state. The true test of an outsourcing partnership occurs when the employees
of both organizations interact with each other. The moment of truth in this relationship occurred
when the Infosys resources walked into our Hatfield office for onsite training. There certainly
was some uncertainty among our employees and I must say that I was impressed by the way
that the Infosys employees were able to handle the situation and diffuse any negative
emotions. They have been able to integrate themselves into the T-Mobile UK organization
within a short span of time and create a winning partnership with their UK counterparts.
For more information, contact [email protected]
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(NASDAQ: INFY) to deliver measurable business value.
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For more information, contact [email protected]