Delivering Productized Services

“SAP Global Delivery is an integral part of SAP Consulting. It is a delivery methodology that allows the distribution of services at low risk, some of them provided locally, regionally, or globally from locations with specialized consulting skills,” explains Animesh Parihar, Director of SAP Global Delivery in Bangalore, India. A “follow the sun” approach for its consulting services ensures that SAP Global Delivery is operational the world over, 24 hours a day. “We can use the different centers for the development of any project, always taking care of its specificity. The combination of global and local consultants along with the SAP ecosystem means a reduction in the total cost of ownership. This strategy also allows us to raise the level of skills,” adds Parihar.

Consolidation of services

The consultancy business underwent a transformation in 2000. Customers required services adapted to a global model of business. SAP Global Delivery, launched in 2002, answered those needs without affecting the quality of the consulting services.
Today, SAP Global Delivery works with SAP subsidiaries, labs and global service and support units, with partners and other elements of the SAP ecosystem to deliver services from Bangalore, Bucharest, Buenos Aires, Dalian and Gurgaon. “We provide development, upgrade, implementation and roll-out services so that our customers get the best value from their investment in SAP products. In 2006, we reached 670 deliveries and we have about more than 1.000 engagements in 2007,” states Parihar.
Once SAP solutions arrive in the market, it is time for consolidation. With SAP Global Delivery, that model is applied to services. “We are speaking of industrialization in the area of services. We understand that industrialization offers two perspectives. First, it allows offering a product in a shorter period of time. Second, it enables cost reduction by means of reusable resources,” says Parihar.

Added value through industrialization

SAP productized services offer predictable, cost-effective results across a variety of IT projects. Implementations and upgrades can be piloted and evaluated quickly and then rolled out across the organization based on proven business results. SAP Consulting currently offers the productized services leveraging the SAP Global Delivery model.
The productized services are reusable work packages fixed in scope, cost and effort and increase benefits to customers in terms of time and dependability. The development of these service packages with the partner network has accelerated the “industrialization mode” in the services industry. The recent inauguration of a new SAP Global Delivery location in Buenos Aires, which is added to the existing ones in India, China and East Europe, fits well into this strategy.
“We understood that it was necessary to reduce service implementation time,” adds Stefan Gruler, Chief Operations Officer of SAP Field Services. “Through SAP Global Delivery, we are closer to the development centers, innovation hubs, and customers, and can respond quicker with a larger scope. This strategy allows us to accompany projects from the initial steps onward – globally analyzing and comparing the main topics in development. It is more efficient to approach development from a global perspective than doing it only in a specific country,” says Gruler.
The productized services do not restrict the client’s needs. “For example, upgrades are productized services that are a combination of resources,” says Gruler. “These upgrades usually have similar requirements in various cases, which gives us an opportunity to provide the same service in less time.” Combining the productized service with the experience provided by SAP creates added value, as the predefined, reusable service package is standardized on industry best practices and proven business processes, meeting the need for greater consistency and reduced risk in service delivery. “The tendency is to make small productized services that easily provide advantage to larger projects. This is a great way to leverage SAP Global Delivery,” says Gruler.

Working arm-in-arm with a partner ecosystem

SAP Global Delivery locations
SAP Global Delivery locations

The SAP Global Delivery model feeds into an ecosystem of partners. “The ecosystem works in conjunction with us. We have trusted a good part of the consultancy business to them, which is why they play a significant role in the distributed delivery of services,” says Parihar. “For any development, it is essential to count on partners to provide first-hand information, collect data, and communicate data. In that sense, the multiple locations of SAP Global Delivery work like receivers and distributors of productized services. In the future, we plan even greater participation, creating new productized services on the basis of input provided by the partners on site,” Gruler adds.
Professional work in the network is performed by a global team as SAP Global Delivery promotes interchange and cultural multiplicity. The project structures are global, so that a project manager of one nationality can work jointly with managers of other nationalities and cultures. Project managers are located in their own countries and can offer the required solution with localization.

New location in Buenos Aires

With a new office in Argentina, SAP Global Delivery continues its mission. “Recently, we developed a technical upgrade for a client, doing consultancy in Argentina, Europe, India, and China at the same time, which meant saving a day in a process that originally took four,” says Carola Feinberg, director of the Buenos Aires location. “The team of consultants in China can send information to one of the centers in India for evaluation. It is then resent to a consultant in Europe, who will send the results to Buenos Aires. Everything can be done on the same day.” The SAP Global Delivery location in Buenos Aires will serve customers worldwide.