Outsourced data management

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Outsourced data management

• SunGard Data Management Solutions

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Why you should outsource data management

• Three reasons why you should outsource
• Data Management is not a core business
• There is a great degree of commonality in data
  management
• Typically on 25 of the overall costs of data
  management are spent on data

3
Where does your organisation add value?
What processes are commodities?
Vendor file format change
New Instruments Instrument types
New Rules Logic
New Rules Logic
New Formulas methodologies
New Formulas methodologies
New Downstream systems
Vendor Change
DBA
Acquisition
Loading Normalisation
Matching X - Ref
Check
Publish
Store
Correct
Enrich
Enrich
4
Internal vs Managed Service costs savings

• Internal
• Costs increase over time
• Staff costs
• Hardware cost
• Software support
• Must add staff to scale
• Managed Service
• Cost decrease over time
• Costs shared as additional clients added to
  service
• Sharing model means scaling costs are shared
• Provides predictable structure for costs

Cost saving as much as 30 in year 1 as much as
60 by year 5
Costs
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What do we mean by outsourcing

• Head count shift off-shore
• Realise quick cost savings
• Management overhead
• Limit to cost savings (i.e. non scalable)
• Lift out
• Realise quick cost savings
• Based on one clients requirements
• Possible scalability issues
• True managed service
• Realise quick cost savings
• Service and savings scalable
• Savings increase with number of clients

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A Team Outsourcing Survey (http//www.data.sung
ard.com/outsourcing/ )

• Market Survey of the willingness to outsource
  data management
• A- Team consulting, industry specialist and
  publishers of the Reference Data Review
• 1,500 readers globally
• December 2004 Study with Reuters into the
  importance of Enterprise Data Management
• 95 of which open-minded to the outsourcing their
  data management processes
• Results varied by data type and business function

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Outsourced data management

• SunGard Data Management Solutions

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Scalable Cost / Idea Sharing Model
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A Team Outsourcing Survey (http//www.data.su
ngard.com/outsourcing/ )

• Benefits of Outsourcing
• Removes redundancy of cost and effort across the
  industry
• Clear cost reduction advantage through
  efficiencies of scale
• Dramatic reduction in time to market over on site
  deployments
• Free up valuable resources
• Leverage third party expertise
• Increased business agility
• More responsive to market requirements
• Scaleable over time

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Barriers and risks

• Barriers
• Loss of control
• Risk
• Reliability
• Security
• Risks
• Big Bang vs. phased approach
• Experience, expertise, track record
• Scalability of service
• Man power threat