Application Portfolio Redesign for Payment Solution Provider
The world's leading payment solutions organization is jointly owned by 21,000 member financial institutions around the globe and has divided its operations into six regional operating organizations. The client in this case was the Asia-Pacific subsidiary of a global credit card giant. The company had more than 400 acquirers and issuers and the payment card market in Asia Pacific was poised to grow exponentially by almost 600%.
A central 'shared services' organization was catering to the IT requirements of all the regional operations of the company. This tradition of total centralization, combined with the company's increasingly complex operations, had led to a host of problems: long lead time for IT solutions, limited regional flexibility in the solutions approach and a lack of cost transparency.
The regions, therefore, felt it necessary to move away from the centralized mode of IT servicing. This decentralization, it was hoped, would help reduce the cost of IT applications and lower the lead-time for developing IT solutions. For this diversification strategy, the client wanted to review its portfolio of 98 applications, determine the future state in terms of ownership, location and support strategy and determine investments, people requirement and costs.
Challenges and Requirements
The Infosys team faced the following issues:
- A multitude of tasks had to be performed in a short span of time
- Infosys was also required to showcase its business consulting capabilities
- Confidence had to be built among all the stakeholders concerning the viability of the solution
Infosys assisted the client in conducting a detailed analysis of the point-of-arrival portfolio with the aid of a portfolio assessment framework. The team then identified a list of applications that could be transitioned to a regional level and subsequently owned locally. Infosys also conducted a cost-benefit analysis of transitioning application ownership to the various regions. As a result, Infosys was able to determine that Tier 3 support activities could be outsourced.
Eight applications were initially selected for migration and Infosys developed a phased and selective transition plan in order to ensure a seamless migration process. The migration plan ensured that there were no operational difficulties during the transition. Infosys built a business case outlining the benefits, which was convincing enough to get the necessary budgetary approvals.
Infosys identified working groups to handle the migration of applications and also initiated discussions with the shared service partner. In the second phase, a joint team, comprising members from both Infosys and the client, defined detailed plans for the implementation of the decentralization strategy.
Benefits and Outcome
The benefits enjoyed by the client included:
- The decentralized mode enabled the client to pour resources into critical growth areas and since Asia Pacific was the fastest growing market, it improved its operations there tremendously
- Infosys' extensive knowledge of business processes and its domain expertise in IT infrastructure enabled the client to benefit from an accurate forecast of Total Cost of Ownership (TCO) that were expected after a migration of applications
- Successful implementation helped the client appreciate the advantages of decentralization and this helped it to get a better perspective of decentralization in other areas
- The attention to detail that Infosys paid to analysis proved so beneficial to the client that Infosys' status was changed from an offshore provider to a consulting partner