When Business Meets Technology From StartUp to Acquisition

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• When Business Meets Technology From Start-Up to
  Acquisition
• John Collins
• 9th October 08

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OSL Genesis

• (Pre-History U.S. Subsidiary, Closed by Parent
  April 03)
• OSL Incorporated May 03
• Tactical
• Relationship-led Engagements, with Demand-led
  Supply (from a pre-qualified resource pool)
• Strategic
• Best Practice Organisation Structure
  Marketing impetus
• Compete directly with Multinational Consultancies
• UK Ireland Nearshore Delivery
• Process-driven IT Business Lifecycle Management
• Business meeting Technology

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OSL Services Proposition
Program Management
Web App Development
Making Change Easier
ITSM Consulting
Application Management
Bus. Process Knowledge Capture
Application Knowledge Capture
Legacy Renewal
Process Improvement
Business Analysis
Application Integration
Business Consulting
Application Services
Business Change
Near Shore Delivery
Reduced Time to Market Increased
Efficiency Business Agility Compliance
Reduced and Predictable Cost Increased
Reliability IT Governance
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Locations

• Dublin
• Professional Services
• Multiple Sectoral Technical Backgrounds
• Business Consulting Services Delivery
• Limerick
• Application Services Centre
• Multiple Technologies Skills
• Process Quality Metrics
• Application Development Maintenance
• Managed Services

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NearShore Service Delivery Channel
Shared Language, Business Culture, Working
Day, Legal Environment, Telecom Standards, Skill
Levels Work Ethic
Ireland The Western European NearShore
Alternative
?
?
?
?
?
Different Currency Cost Base
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Near Shore Delivery Model
Business Layer
Near Shore Off-Site Delivery
Business Users
Business Analysis

• OSL Limerick Team

Optimal Interaction Model At Key Project Touchpoin
ts
Systems Analysis Application Development Testing
Services Application Support/Maintenance
Operations
Hardware/Network Support
Dynamic and Adaptable Delivery
Operations Layer
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Realpolitik of the Indigenous Company

• Negative being small
• No Brand Awareness without incumbent
  Relationships
• Lacking Scale, Reach Balance Sheet
• Winning Projects but never Long-Term Partnership
• Cash Flow always key impediment to Affordability
• Restricted Opportunities for Career Development
• Positive being small!
• Trust, Objectivity, Care the default perception
• Us against the World the mantra and badge
• Agility chameleon-like marketing and delivery
• Specialists and Generalists whatever we need to
  be

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OSL Chronology

• 2003 (forming)
• Focus on Viability Generate Cash Grow from
  within Clarify Govt. Agency role Contractors
  Only!
• 2004 (forming to storming)
• Invest in Structure People Grow Client Base
  (incl UK) Recruit Stabilise costs Secure EI
  support
• 2005 (storming to norming)
• Develop Practices, Marketing, Partnerships New
  Revenues / New Clients / Niche Offerings
• 2006 / 07 (norming to performing)
• UK Growth First signs of Annuity Revenues
  Increased Profitability
• 2007 Revenues, 9.3m (Approx 3367 ConsultingApp
  Services)
• Reserves of approx 1m
• ALL ORGANICALLY ACHIEVED!

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Performing Is that enough?

• Neither Start-up nor big - what do we do next
• Decomposition for Focussed Growth?
• Broaden Sectoral / Geographic Markets?
• Increase Partnership Commitments?
• Product Investments Transformation?
• Merger Acquisition for Size / Reach?
• Consider Inward Investment - Aim Higher?

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Strategy - 2007

• Continue to Grow Organically
• Goals based on credibility, not aspirations
• Unique References
• Productised Services
• Mature Relationships
• How to create the next curve?
• Non-Organic Growth
• Anxious to leverage scale pedigree

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Strategic Shift Non-Organic Growth Through OUR
Acquisition

• OSL Acquired by Perot Systems Corporation (PSC)
  in May 2008
• Going in with our eyes open
• Aiming for
• Scale, Reach, Credibility, Complementary
  Offerings, Direction Gaps that we could fill
• Anticipating
• Cultural Mis-alignment (Corporate Geographic)
• Bureaucracy
• Conflicting Priorities
• Significant Communication Challenges
• Differences in Internal Organisational Metrics
• Need to Fight for Leadership role

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Why did PSC buy us?

• Strategic Acquisition
• Grow European Business Presence
• Establish European Delivery centre
• Integrate Offerings into PS Portfolio
• Leverage our Relationships
• Take advantage of our resources and
  infrastructure
• Exploit our Leadership Team Track Record!

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What have they found?

• Pretty much what they were promised!
• They are aware of our position relative to
  budget
• They are impressed with our people, clients,
  set-up
• They know that we need them as much as they need
  us
• They are anxious to support our needs

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Identifying the Gaps and Building the OSL / Irish
Advantage

• Current Strategy Logic
• OSL Relationship-Led, Consultative, Business
  Empathy
• PSC Size Matters, Low Cost, High Capacity,
  Annuity
• Current Strategy Execution
• OSL Low Risk, Iterative Return, Indirect,
  Evolving to Trusted status
• PSC Direct Selling, ONLY Outsourcing-aware
  Clients, BIG Deals
• Required Changes in Strategic Logic / Execution
• OSL Extend the relationship beyond Consulting
  Development assignments
• PSC Use Consulting as a Front-End Sales Engine
  to build Relationship as a platform for
  long-term, core Managed Service delivery

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and realise our value to both parties
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The Key OSL Strategic Goal An Irish Company
with a GLOBAL Presence

• NOT just a multinational subsidiary
• 3 Operational Elements
• A key part of the European Leadership
  Strategy
• Become the hub for European services delivery
• Expand our services portfolio in Ireland
• AND retain our identity, culture
  entrepreneurial drive
• Now, Real opportunities to grow beyond our
  natural boundaries
• BUT
• We are still an IRISH Company!

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• When Business Meets Technology From Start-Up to
  Acquisition
• IT DOESNT END THERE!
• To be Continued.