M A N A G E D S E RV I C E S S O L U T I O N S

M A N A G E D S E R V I C E S — S E R V I C E F O R L I F E

S E R V I C E.
FOCUS.
V A L U E.
 THE CHALLENGES YOU FACE MULTIPLY EVERY DAY.

MANAGED SERVICES GIVES YOU THE FREEDOM

TO FOCUS ON YOUR CORE STRATEGIES.

A managed services solution is a powerful option for organizations seeking to manage their operational
costs and to achieve performance goals that will drive growth in the long term.

In today’s customer-driven business environment, your organization must differentiate itself by delivering
services or products that create value for your customers. At the same time, you must manage the
business—getting new products to market, managing finances, and reducing operational inefficiencies.
Your core products and services are what make your organization successful; but finely tuned deployment
and management of these solutions can make the difference between success and excellence.

KPMG Consulting’s Managed Services can help you turn the challenge of managing your business into
an opportunity for gaining competitive advantage. We offer business application management services for
many non-core business activities, including order management, billing, customer care, e-mail, and service
assurance. Entrusting these business processes to a proven partner like KPMG Consulting enables you to
reduce up-front investments and maintenance costs and allows your organization to focus on the products
or services that are central to maintaining a competitive advantage in the marketplace. In addition, we
provide online services that help our clients access the latest technological innovations without a large
up-front investment.

2 K P M G C O N S U LT I N G
 “Business Process Outsourcing is gaining momentum…as organizations

are opening up to outsourcing non-core, but critical, business processes

to reduce costs, improve service levels, and sharpen their focus on

core competencies.”

C. E. Unterberg, Towbin, “Business Process Outsourcing,”

April 16, 2001

As an example, by using our Managed With KPMG Consulting’s leading-edge Managed Services,
you can:
Services solutions, our team has helped
geographically dispersed organizations • Lower your cost of capital—Because we’ve already

centralize and automate systems to hire
and pay temporary employees from local
agencies, enabling these organizations to
transform a traditional bottleneck into a
competitive weapon. We’ve helped retailers
focus more on selling products by taking
away the burden of maintaining Web-
enabled storefronts or online billing systems.
procured the equipment, your investment is
significantly smaller
• Focus on your organization’s core competencies—
By eliminating non-core business processes from
your organization, you are free to focus on your
customers and the services or products that your
organization provides
• Reduce overall risk—By taking advantage of our
existing operational environment and our proven
experience, your organization can avoid spending time
and money on procuring equipment and building staff

MANAGED SERVICES SOLUTIONS 3

 WE UNDERSTAND YOUR BUSINESS.

LET US HELP YOU CONTROL COSTS

THROUGH MANAGED SERVICES.

Increased reliance on technology has created a new foundation
of Internet-powered platforms and applications at many
organizations. Today, many forward-thinking organizations
are aggressively applying business intelligence and innovative
business processes to gain sustainable results from their
investments. However, business transformation can slow down
growth by diluting the organization’s focus. As such, many
organizations are engaging in relationships with Managed
Services providers to create high-performance, sustainable
solutions without sacrificing other areas of their business.
Our teams leverage our Managed Services solutions to help
you meet all of your business process needs—from automation
and management of business processes to our global network of
Broadband Solution Centers, which proactively manage and support
applications to ensure quality and performance. Our Common
Commerce Infrastructure provides our Managed Services clients
with transactional services capabilities—including bill presentment
and payment services and electronic payment processing—which
can be exchanged securely through our Certificate Authority (CA)
security services.

With our core IT competency and our infrastructure, only

SPEED WITH PURPOSE KPMG Consulting brings all of the necessary elements to the table:
Time-to-market is essential. But when new technologies are part
of the plan, sound strategies and process innovation are equally
important. We can help you implement Managed Services BUSINESS PROCESS
MANAGEMENT
A P P L I C AT I O N S
MANAGEMENT

solutions quickly and reliably. We align with best-in-class

BUSINESS PROCESS SOFTWARE
technology providers to deliver industry-focused solutions that
are based on proven technologies, experience, and innovation.
I N F O R M AT I O N
TECHNOLOGY
AND
With our Managed Services solutions, we offer Business Process I N T E G R AT I O N

Management and Applications Management. We integrate

best-in-class applications and solutions to address your business NETWORKS HARDWARE/STORAGE

challenges. We help you control costs and improve quality

I N F O R M AT I O N T E C H N O L O G Y INFRASTRUCTURE AND
MANAGEMENT O P E R AT I O N S U P P O R T
through our technology solutions, industry and technology
experience, and proven strategies.

“In today’s resource-constrained environment, competitive advantage

will continue to accrue to companies that can install and implement

the optimal IT infrastructure for their businesses before their

competitors can.”

Jim Lebinski, Vice President and Research Director,

Decision Tools, Gartner Measurement, January 2002

4 K P M G C O N S U LT I N G
 BUSINESS PROCESS MANAGEMENT
A N E X A M P L E O F A C W P P L AT F O R M
Business process management is not a new concept; large
organizations have been outsourcing “non-core” functions for some
time. However, recent improvements in technology, coupled with BANK LOCATIONS
B A NK BANK B ANK
increasing pressures for tighter fiscal management, are creating a trend Dall a New
San Fra n c i s c o BANK s BANK Yo r k

toward the outsourcing of core business functions and an increase Seatt l

e Chica g
o

in market demand for high-end business process management.

With our Business Process Management solution, we identify

non-core business processes that can be run as a Managed Service.
By leveraging our experience in business process analysis and
management, our in-house facilities, and our strategic partnerships
with premier hosting facilities, we can offer customers a tangible TEMPORARY/LABOR AGENCIES

decrease in cost and a higher level of service.

Contingent Workforce Procurement (CWP) Solution BANK LOCATIONS

One way we’ve helped organizations increase efficiencies and move BANK BANK BANK

San Fra n c i s c o Dall a New

BANK s B A NK Yo r k
toward operational excellence is through our Contingent Workforce Seatt l
e Chica g
o

Procurement solution. By offering an enterprise-wide, Internet-based

offering, your organization can focus on more strategic roles, largely K P MG CO NSULT I NG P LAT FOR MS
eliminating time-consuming administrative tasks. Our solution can
help your organization:

• Reduce overall IT spending

TEMPORARY/LABOR AGENCIES
• Increase efficiency

• Improve visibility and effectiveness

Automating, centralizing, and streamlining a non-core process (in this
case, a bank’s hiring of contingent workers) allows organizations to more
quickly and efficiently engage and manage talented contract labor for
IT functions and realize significant cost reductions. This secure, scalable,
state-of-the-art platform also provides the highest level of service and
value to your internal staff, who need quality temporary labor to work
as efficiently as possible.

“[We] believe that most BPO services that combine process and

industry-specific knowledge tend to create the greatest amount of

intellectual capital…and be the most valuable solutions to customers.

This is because vendors can generally have a better perspective of

historical software, technology, and process structures for a particular

vertical function.”

C. E. Unterberg, Towbin, “Business Process Outsourcing”

5
 I N F O R M AT I O N T E C H N O L O G Y M A N A G E M E N T
Applications Management
Our Applications Management solution offers much more than
a traditional applications services provider. We offer support for
business process changes, patching, updates, and transactional review
processes catered to your needs. We use a service control center to
proactively manage and support applications, ensuring quality and
performance. Staffed by experienced technicians who are supported
by KPMG Consulting solution specialists, this service maximizes
application availability and minimizes downtime through the use
of best-in-class automated monitoring and trouble-management
tools. We can identify and solve problems before they impact your
performance, and support full reporting capabilities, ongoing
enhancements, data fixes, and ad-hoc reporting.
Regardless of where your applications reside—in-house, in our own
facilities, or in those of our partners—our team can determine the
most efficient and cost-effective route to reliable operations.
Our primary focus is to provide applications management services
for leading software packages such as Ariba, Oracle, PeopleSoft,
SAP, and Siebel.
We support your entire IT life cycle—from formulating your
initial strategy through development and integration of your core
applications to providing day-to-day operational support either
at your site, our Broadband Solution Centers, or that of your data
center provider. Our service delivery model, diagrammed
below, reduces costs and risks, and improves ROI.
SERVICE DELIVERY MODEL
CONTINUOUS BUSINESS
IMPROVEMENT STRATEGY
CUSTOM- APPLICATIONS
IZATION DELIVERY INTEGRATION
MODEL
CUSTOMER DATA
SUPPORT MANAGEMENT
APPLICATIONS
MANAGEMENT
“With all of the complexities and added components that are now
required to manage eBusiness, the managed service alternative is
becoming increasingly attractive.”
AMR Research Outlook 2001: The Top Ten Technologies to
Watch, January 1, 2001
I N F R A S T R U C T U R E A N D O P E R AT I O N S U P P O R T
In support of our Managed Services solutions, we have
established an infrastructure and operational support structure.
This support network includes:
• Common Commerce Infrastructure—A suite of
Web-based tools that provide your organization with
transactional services capabilities, including bill
presentment and payment services and electronic
payment processing
• Certificate Authority Capabilities—PKI-based security
program that allows you to exchange information
securely over an open network
• Broadband Solution Centers—A facility that provides
your organization with an arena for project develop-
ment as well as hosting and network operations support
• Customer Call Center—A full-service, technical, 24x7,
Web-based customer support center that provides
access from any secure interface
• Monitoring Services—Provides 24x7 reactive, predic-
tive, and proactive monitoring of servers, firewalls,
and applications
• Maintenance Services—Provides timely management
and application of patches, revisions, and fixes for your
mission-critical applications
• Management Services—Provides plans to apply our
enterprise application expertise to your solutions, either
by insourcing, outsourcing, or the custom match that
best serves your needs
MANAGED SERVICES 6
 CASE STUDIES
CONTINGENT
WORKFORCE FOR
A LARGE BANK
Bank executives at a large global financial institution knew
that in order to maintain its current leadership status, the
bank needed to streamline its processes involved with
hiring and managing temporary employees and services.
KPMG Consulting helped the bank achieve greater ROI
by improving operational efficiencies and cost takeout
with its contingent workforce.
Operating out of more than 4,000 domestic offices,
38 international offices, and almost 100 regional client
telephone service centers, this bank is one of the largest
online banks in the United States, with over 3 million
online clients.
Historically, the bank’s sourcing, hiring, and management
of contract and temporary services was managed by its
company-wide contractor management program. The bank
procured a significant amount of IT contract and temporary
services via phone, fax, and e-mail to augment its permanent
workforce. The inefficiencies of this process resulted in long
procurement cycle times, higher expense levels for contract
labor, and an absence of vital information regarding supplier
quality and performance. Bank executives sought an
Internet-based solution with the capacity to support at
least 500 suppliers and 3,000 contractors in the contractor
management database.
KPMG Consulting implemented an enterprise-wide, Internet-
based software solution that would be available to the
bank’s hiring managers, administrative staff, customers,
suppliers, and contractors at any time from any location.
Leveraging best-in-class technology, we enabled the bank
to quickly and efficiently engage and manage talented
contract labor for IT functions. This arrangement also
positioned the client to expand its category offerings,
generate an additional revenue stream, and improve
customer acquisition while providing the highest level
of service and value via this secure, scalable technology.
Our rapid implementation schedule allowed for faster
time-to-market, making this bank much more capable
of achieving its aggressive ROI goals. The organization
is now able to select better candidates in less time, improve
recruiter and hiring manager productivity, reduce the time
spent on processing paperwork, ensure that preferred
suppliers are used, buy from the most competitive suppliers,
and measure spending, process, and participant performance
via reporting.
7 K P M G C O N S U LT I N G
S TAT E O F T E X A S
The State of Texas, Department of Information Resources
(DIR) was charged with establishing a task force to
demonstrate the feasibility of conducting state business
over the Internet. The DIR looked to KPMG Consulting
to help create an online government framework and an
online portal that provides citizens with 24x7 access to
government operations.
The DIR serves as the technology broker for the State
of Texas and works through master contract agreements
that can support dozens of state agencies.
To make doing business with the government more
convenient for citizens, the client wanted to provide
them with access to government operations 24 hours
a day, seven days a week. The Texas State legislature
mandated the creation of an eGovernment Task Force
that would test the viability of state agencies to conduct
business over the Internet. The client decided to implement
an eGovernment framework with services including
application hosting, online payment functions, and
Web site development services.
KPMG Consulting developed a portal and all related
supporting infrastructure that provides online transaction
capabilities and Internet security. This was implemented
and deployed with outsource services for electronic
payment, bill presentment, and certificate authority
(digital certificates) for the DIR. Our team also provided
infrastructure design, systems analysis and integration,
Web and custom application development, business
and functional operations, and data center support
and management.
Our team helped create the TexasOnline Web site, which
is a flexible, scalable, secure conduit to information and
services offered by the State of Texas. It also provided
capabilities that enable and improve communications and
business management between state agencies, businesses,
and constituents. The added benefits of more efficient
online transaction capabilities and Internet security are
illustrated by customer service through-call reduction to
state agencies, improved end-user satisfaction, more readily
accessible information, and faster, more smoothly processed
fee recovery.
 BROADBAND SOLUTION CENTERS

KPMG Consulting’s Broadband Solution Centers are multimillion-

dollar facilities that house hardware and software technologies from
industry leaders and leverage high-bandwidth network connections
for collaborative development of cutting-edge solutions. In project
rooms, our professionals work with your team to develop and test new
solutions with offsite team members participating in real time over the
Internet. Using these centers will minimize your up-front investment,
enable rapid implementation, reduce the impact of your existing
operational systems, and lower travel costs. Once your applications
have been tested, we support ongoing commercial operations on site
or can continue our monitoring, maintenance, and management
while transitioning the servers to your site or to one of our global
hosting partners.

THE BENEFITS OF WORKING

WITH US

KPMG Consulting is one of the world’s most respected business

advisors and systems integrators. We build enduring relationships with
our clients by helping them create new business models and innovative
solutions, enabling organizations to leverage technology for stronger
return on investment and enhanced service to their customers,
vendors, and employees.

From business systems strategy to implementation, we combine our

industry knowledge with technology experience to deliver results-
focused solutions quickly. By partnering with technology leaders, we
provide leading business and government organizations around the
globe with best-in-class solutions across every industry segment.

THE NEXT STEPS

If you would like to learn more about how we can help your
organization, please contact us at 866-FOR-KCIN (703-747-6748)
from outside the US and Canada) or visit our Web site at
www.kpmgconsulting.com.

8 K P M G C O N S U LT I N G
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FOR VISUAL CLARIFICATION ONLY)
KPMG Consulting
1676 International Drive
McLean, VA 22102

1 .8 6 6 . F O R . K C I N
703.747.6748 (outside the US & Canada)

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© 2002 KPMG Consulting, Inc. All rights reserved. Printed in the USA.
KPMG Consulting, Inc. is an independent consulting company.
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