New ICT Model. Generalitat de Catalunya Innovative Sourcing Process Through Public-Private Collaboration.

Maastricht, November 26th, 2013

Message from Artur Mas President of Government of Catalonia1

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New ICT Model. Innovative Sourcing Process Through Public-Private Collaboration. Jordi Escalé, CIO of Government of Catalonia

Executive Summary Video

NEW ICT MODEL

Executive Summary New ICT Model: Generalitat de Catalunya. Innovative Sourcing Process Through Public-Private Collaboration.

Telecommunications and Information Technology Centre What services do we offer?

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Provides services to citizensManages citizens relationshipPlans, executes and evaluates public policies

Translates government requirements into IT projects Optimizes resources Promotes innovation

Supplies IT servicesPromotes innovation within solutions design

Catalan Government

CTTI

ICT Suppliers

Public enterprise that has capacity to design, plan, oversee, manage and execute ICT projects

Telecommunica tions suppliers

Workplace suppliers

Data centers suppliers

Applications suppliers

Justice Culture

Health

Governance & Inst. Relations

Business & Labor Education

Internal Affairs

Presidency

Agriculture

Territory & Sustainability

Social Welfare & Family

Economy & Knowledge

Public organiza

tions

Telecommunications and Information Technology Centre (CTTI)

Strategic agency for Government action plan.

Telecommunications and Information Technology Centre The challenge

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601 M€ ICT budget 200.000 workplaces

5.300 buildings

26 Call centers

1.800 Applications

475 Active projects

41 Data Centers and 71 Tech rooms (<5 servers)

5.500 xDSL Lines

1.000 fiber optic connections

3 Gbps Internet Access

220 TDT & FM (Infraestructure)

2010 Volume

2011 Scenario

Technological obsolescence

Organization model

ICT Descentra-

lization

High dispersion

The new ICT model Government Plan (PdG)

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GOVERNMENT GOALS

2011 I PdG I 2014 Doing more with less and in a better way

Government Agreement (GOV/144/11)

CTTI is designated responsible for ICT centralized provision and for the ICT management in the Catalan Government

DOWNSIZINGAUSTERITY AGILITY

ICT’s budget and its management centralized into a single government focus, coordinated through CTTI.

Centralized management of client demand to enable efficiency and synergies among departments.

Supplier concentration, along with promotion of the Catalan ICT sector.

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The new ICT model New ICT model goals assessment

OBJECTIVES OF THE NEW ICT MODEL

To comply with government goals, a new ICT Model was designed and four main objectives were set forth.

EFFICENCY 25%Improve efficiency and savings in the

provision of recurring ICT

services and energy spending

TRANSFORMATIONConsolidate

infrastructure and transversal applications, and modernize desktop and telecommunication

services

ITC SECTORBoost the Catalan

ICT sector and attract investments from international

companies in Catalonia.

COMPETITIVENESSProvide Catalonia

with a high capacity telecommunications

network. Promote regional balance

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The new ICT model Timeline for change

DESIGN ICT SERVICE MODEL COMPETITIVE DIALOGUES TRANSITION

May-Sep 2011

ICT SERVICE MODEL

Oct 12-Mar 13

IMPLEMENTATION

Oct 2012

ICT GOVERNANCE MODEL DETAILED DESIGN

GOVERNANCE

Oct 11 – Feb 12

Oct 11-Sep 12

Centralized suppliers

New ICT governance model designed

EXTERNALI-ZATION

Oct 12 - Jan 13

ORGANIZATIONAL MODEL DESIGN

CTTI ORGANIZATION

Mar – Sep 2012

NEW ORGANIZATION

Jan -Jun 2013

TRANSFORMATION

Jan 2013

ICT GOVERNANCE MODEL

HIGH LEVEL DESIGN

Mar - Sep 2012

The new governance model was incorporated in the competitive dialogues and the suppliers contracts

Executive Summary New ICT Model: Generalitat de Catalunya. Innovative Sourcing Process Through Public-Private Collaboration.

ICT SERVICES

ICT Service Model Innovative Sourcing Process – How is it organized?

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Tech TeamTelecomm. & Connectivity

Financial & Legal team

Strategic manager

Telecomm. & Connectivity

Sub-commission Telecomm. & Connectivity

Tech teamService Desk / IT

Facilities

Financial & Legal team

Strategic manager

Service Desk / IT Facilities

Sub-commission Service Desk / IT Facilities

Tech team CPD Infrastructures

Financial & Legal team

Strategic manager

CPD Infrastructures

Sub- commission CPD Infrastructures

Tech teamApplications

Financial & Legal team

Strategic manager

Applications

Sub-commission Applications

Competitive dialogue committee

CTTI Board

Legal support

commission

ICT contracting commission

Represented by chief executive officers from the 12 Departments of Generalitat

ApplicationsDevelopment and

maintenance

Workplace

ICTGovernance

Provision, maintenance and customer service

InfrastructureData centers

ICT Service Model Innovative Sourcing Process - How is it organized?

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Infrastructure and telecoms services

Round 1 Round 2 Round 3Kickoff

• Documentation Delivery• Process Functional

explanation

Participants’ solutions

Delivery of documentation

Review of solutions and evaluation of questions

Dialogue sessions

Businesses

Dialogue teams

Documentation for next round

Dialogue teams

Committee Session at the end of each roundCommittee Session at the end of each round

Concentrated in two or three days

ICT Service Model Innovative Sourcing Process - Competitive dialogues development

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ICT Service Model Innovative Sourcing Process – Global data

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Global numbers (without taxes)

Number of tenders 30Maximum tender budget 2.028,45 M€

Maximum annual budget out to tender 274,65 M€Estimated value of the contract 2.870,31 M€

Assignment of assets 8,52 M€Employees to transfer 90 people

Cost (without taxes) Applications Workplace & Helpdesk

Infrastructures and Data Centers

Connectivity & Telecommunications

Number of tenders 11 4 6 9

Maximum tender budget 427,06 M€ 564,21 M€ 402,55 M€ 634,63 M€

Initial scope 80% 75% 70% 100%Maximum annual budget out 

to tender 71,18 M€ 70,53 M€ 45,88 M€ (*) 87,07 M€

Estimated value of the 

contract 581,39 M€ 921,32 M€ 644,15 M€ 723,44 M€

Assignment of assets - 1,3 M€ 7,22 M€ -

Employees to transfer 52 15 9 14

(*) Average budget, since it is a decreasing budget due to the high level of investments to do.

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ICT Service Model Innovative Sourcing Process - Results

APPLICATIONS

WORKPLACE

-25%

-35%

AfterBeforeDialogues

300 Suppliers 1800 Apps

26 CCs

300 Suppliers

<5 % Virtualitzation

1 CCs

4 Service Suppliers

>50 % Virtualitzation

8 Service Suppliers 11 Tenders

Department 1

Department 2

Department 3

Department N

...

Cross-organizational apps

Department 1

Department 2

Department 3

Department N

...

Cross-organizational apps

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ICT Service Model Innovative Sourcing Process - Results

DATA CENTERS

TELECOMMUNIC ATION &

CONNECTIVITY

42 Data Centers 6 Data Centers

UPGRADE & MAX HIGH CAPACITY

-35%

-25%-50% -35% -10%

High capacity network

Buildings: 1.020

Municipalities: 167

High capacity network

Buildings: 5.635

Municipalities: >800

HP

IBM

T-SYSTEMS

EGARA

PEDROSASUPORT

UNITECNIC-NEXICA

GeneralitatSu

pplie

rs

AfterBeforeDialogues

The PGT is divided into six major transformation programs, 4 related to technological services and 2 related to governance programs.

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ICT Service Model Transformation Plan

Policies and standards

Applications Workplace TelecommunicationsData Center

Suport systems and tools to Governance model

Gov

erna

nce

Tech

nolo

gica

l se

rvic

es

Each of them share common goals, drivers and strategies:• Aggregation and Consolidation• Standardization and homogenization• Modernization• Simplification• Paying for use• Efficiency and savings (process, economic, carbon footprint reduction, ...)

The scope included on technical services transformation …

The PGT approach requires a complex and accurate planning to mitigate risks and, a strict communications plan on each agency.

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ICT Service Model Transformation Plan

Global figures• 200.000 workplaces• 5.900 buildings• 26 call and service centers• +2000 Applications• 42 Data Centers i 71 technical

rooms (<5 serv)• 65 directori domains• +500 desktop patterns • 5.500 xDSL lines• 1.000 F.O. links• 3 Gbps internet access• 84 M annual voice minuts

PGT planned main execution period is about 3 years (2013-2015)

Forecast 1.000 projects over this period

Coordinated actions in a multi-vendor environment, with a lot of technical

dependencies

Requires a strong support of each agency to facilitate its implementation

PGT as the driving force to:

Achieve the expected efficiencies.

Technological modernization

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ICT Service Model Transformation Plan

Since April 1st, about 100 active projects

Executive Summary New ICT Model: Generalitat de Catalunya. Innovative Sourcing Process Through Public-Private Collaboration.

ICT GOVERNANCE

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ICT Governance Governance model

Tran

sici

ói T

rans

fora

mci

ó

Govern Propi CTTI

ApplicationsApplications Data infrastructuresData infrastructuresDesktop servicesDesktop services

SAU (Users helpdesk service)

Communications infrastructures

Communications infrastructures

Strategic governance

Financial governance

Relationship with

departments and entities

governance

Demand governance

Project governance

Billing governance

Supply governance

Services governanc

e

Quality governance

Security governance Tran

sitio

n an

d tr

ansf

orm

atio

n

People, buildings, resources and tools governance

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ICT Governance Differential features

ICT Governance before 2013Self governance and delegated governance at Departments

New ICT Governance 2013Self governance and delegated governance at CTTI

Individual ICT governance criteria and guidelines foreach Department 1 Centralized ICT governance criteria and guidelines for

all Catalan government

ICT governance execution carried out with owned resources and Departmental offices2 ICT governance execution carried out with owned resources

and centralized offices

Function duplicities of the ICT governance3 Uniqueness functions of the ICT governance

Oversized volumes and costs of delegated governance4 Synergy and efficiency gains thanks to concentration

Cost minimum reduction of 17%

Model oriented towards individuals5 Model oriented towards services

High complexity level to manage contracts and suppliers:• High volume of contracts and suppliers• Constant contractual renovations

6Simplicity to manage contracts and suppliers:

• Concentration of contracts and suppliers• Contracts length of 4 + 2 years

Model with a fixed spending commitmentwith the suppliers7 Model with a variable spending commitment. Implantation of

performance goals.

GUIDING PRINCIPLES FOR CHANGE

TRANSPARENCY AGILITY EFFICIENCY TRACEABILITY

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CLARITY REMEDY

PORTIC

ITFM

Cost modelingDemand & Projects management

Change management and communication

Service management

Control center

Solutions and services monitoring

ICT Governance Governance tools

Executive Summary New ICT Model: Generalitat de Catalunya. Innovative Sourcing Process Through Public-Private Collaboration.

CTTI ORGANIZATION

2010 Scenario

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CTTI Organization Main alternatives

Supplier …

Supplier A Supplier B

Supplier C Supplier …

Supplier as Service Integrator

CTTI Retained IT Organization

ContractOLA

Operational Agreement between Suppliers to act as „one supplier“ to the customer, enabling the Service Integration.

Supplier …

Supplier A Supplier B

Supplier C Supplier …

CTTI as Service Integrator

CTTI Retained IT Organization

ContractOLA

50-70 headcount

180-230 headcount

Supplier …

Supplier A Supplier B

Supplier C Supplier …

Services atomized in different Departments

CTTI Retained IT Cross-services organization

Contract

OLA

Each customer had their own strategic, operational and supply structure

351 headcount

Department 1 Department 2 Department n

Opt

ion

1O

ptio

n 2

Executive Summary New ICT Model: Generalitat de Catalunya. Innovative Sourcing Process Through Public-Private Collaboration.

RESULTS

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Results Objectives of the new ICT Model

EFFICENCY 25% TRANSFORMATION COMPETITIVENESS ICT Sector

For each goal, we have set quantitative, measurable indicators of our progress towards it

OBJECTIVES OF THE NEW ICT MODEL

Objective 1. Efficiency and savings

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Results Goals and achievements

Goal Indicator Accomplishment

3. Energy & other indirect savings

2. Organization & structure reduction

CTTI employees - 43%

1. 25% Cost reduction on recurrent services

Generalitat’s ICT spending - 25%

EFFICIENCY

EFFICENCY 25%Improve efficiency

and savings in the provision of ICT

services and energy spending

Generalitat’s ICT governance

spending- 17%

Savings volume 10 M €/year

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Results Goals and achievements

Objective 2. Transformation and service improvement

TRANSFORMATION

TRANSFORMATIONConsolidate

infrastructure and transversal applications, and modernize desktop and telecommunication

services

Goal Indicator

Apps maintenance and improvement spending

1. Consolidation of data Infrastructures

2. Shared applications Consolidated Policy

3. Modernize desktop services

4. Modernize telecommunications services

Infrastructure reduction

Infrastructure spending

Desktop services spending

1st call problem solving

Mobil services cost

Land line services cost

- 86%

- 36%

- 36%

- 23%

- 28 %

Accomplishment

- 50%

- 35%

5. Centralize governance tools

Reduction of governance tools - 90%

Expected results at the end of the implementation

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Results Goals and achievements

COMPETITIVENESSProvide Catalonia

with a high capacity telecommunications

network. Promote regional balance

Goal Indicator

1. High Speed Communications Network

Official Buildings Connected to high speed line

Improve bandwidth (from 4Mb to 100 Mb) x25

Cost per Mb - 83,3%

COMPETITIVENESS

2. Promote territorial balance

Objectives 3. Country’s competitiveness

100%

Accomplishment

Negotiate line rates that depend on bandwidth instead of distance

Approved line rates based on

bandwidth

Expected results at the end of the implementation

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Results Goals and achievements

ICT SECTORBoost the Catalan ICT

sector and attract investments from multinationals in

Catalonia.

Objectives 4. Boost ICT Catalan sectorICT SECTOR

Goal Indicator

Job vacancies created*

2. Create new job vacancies in Catalunya 8.454

1. Attract investments to Catalunya

Investment amount 2.808 M€

5. Appearance of new Catalan company groups

Nº groups created with the

dialogues

Itteria TicxCAT

Cluster Catalunya TIC

6. Involve Catalan Companies in multi- national industrial projects.

Nº of successful

projects

IBM – SeidorHP - Aventia

4. Improve ICT Catalan companies activity

% Catalan capital companies 16%

Accomplishment

% Catalan NIF companies

3. Increase companies with Catalan NIF 66%

* Potential destruction of vacancies within non winning companies are not taken into account here.Expected results at the end of the

implementation

Results Investments – Applications and IT Facilities & Service Desk in Catalonia

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Indra - Lleida

HP - Girona

Altran - Barcelona

Accenture – Sant Cugat del Vallès

Itteria – Vic

Indra – Lleida

Fujitsu – Hospitalet

IBM - Reus

Service Desk

Technology Development

Center

Technological Innovation

Center

T-Systems - ReusCenter of

Excellence for Software

Development

Software factory Application

Delivery Center

Delivery Center

Software Quality Center

baTech – 4 Centers of Excellence

Pedrosa Data Centre

HP - Colt – Hospitalet

Ute IBM-Insa/Seidor- CerdanyolaParc de l’Alba Primary Data

Center

Ute Unitecnic/Nexica– 22@ Barcelona

Cloud Data Center

T-Systems – CerdanyolaParc de l’Alba Data Center

Analytics Innovation

Center

IT FacilitiesData CentreApplications

BEFORE

Number of connected buildings

End of 2016

Results Investments - Telecommunications

XFOCAT (High bandwidth network)XFOCAT (High bandwidth network)

The Catalan high bandwidth network is built with two suppliers:

+Fiber optic network of the Generalitat de Catalunya.Operated by Xarxa Oberta de Catalunya.Capacity to provide service to 745 buildings.

Fiber optic network of Telefónica.Conditions of “balance” and “neutrality” as they are set on C1 contract.Capacity to provide service up to 5.000 buildings.

5.907 buildings 4.297 buildingsTransformation to high bandwidth

73% (*)939 municipalities

712 municipalities

75%

(*) Pending evaluation of the transformation plan for some buildings

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Executive Summary New ICT Model: Generalitat de Catalunya. Innovative Sourcing Process Through Public-Private Collaboration.

CONCLUSIONS

We are in an ongoing flight

Pulling a big ship

Lots of pieces

learning by doing

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Long way ahead

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Good direction

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Private companies

Catalan government

Thanks to everyone that

made it possible

Other institutions that support

us

CTTI Staff

Public bodies

Generalitat employees

Message from Artur Mas President of Government of Catalonia1

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New ICT Model. Innovative Sourcing Process Through Public-Private Collaboration. Jordi Escalé, CIO of Government of Catalonia

Executive Summary Video