Bell South's Project Horizon: move IT to India

Project Horizon

The purpose of Project Horizon is to reduce costs associated with the ongoing maintenance and enhancement of IT applications. In order to accomplish this goal, BellSouth will utilize offshore resources and take advantage of the differential cost savings. BellSouth will accomplish this while having the transition transparent to the customers and applicable Business Units. While utilizing offshore resources, BellSouth will ensure that current service levels are maintained.

This cost savings initiative will enable BellSouth to reduce IT expenditures and save an estimated $275 million over a 5-year timeframe (2003-2007.)

India was chosen as the initial pilot site for a variety of reasons including: access to highly skilled, low cost resources; more than 60% of companies with best in class process maturity (CMM level 5) are located in India; and more than 40% of Fortune 500 companies utilize India for their application support. Our IT Strategic Partner, Accenture, currently has over 800 employees and supports more than 40 clients in India (Oracle, Nortel, Verizon, Lucent, Dow, Dupont, Bank of America, et. al.)

Various initiatives are being implemented to ensure a high level of data and physical security.

The initial phase of the program is a 4 1/2 month pilot (4/16/03 - 9/01/03) in Bangalore, India. The pilot includes 17 Accenture resources (FTPs) delivering maintenance and enhancement services for applications in a Non-U.S. location. After successful completion of the pilot, BellSouth plans to additionally transition 634 FTPs offshore continuously through the year 2007. The applications selected in each wave of transition reflect a variety of business units and technologies.

Project Horizon Frequently Asked Questions

What is Project Horizon?
BellSouth is facing the challenge to reduce expenses across the board. Project Horizon is the program whereby BellSouth will utilize resources offshore to provide IT maintenance and development work on their applications. This program will allow BellSouth to reduce IT costs while still maintaining the same workload and service levels.

Why are we sending work to a non-US location?
BellSouth and Accenture reviewed many different options to reduce BellSouth's information technology costs. One of the options selected for further investigation was the movement of some development and support work to a non-U. S. Accenture delivery center. The next step in reviewing this option is a pilot, which will occur from 4/16/03 - 9/15/03.

What type of savings is BellSouth expecting?
This cost savings initiative will enable BellSouth to reduce IT expenses and save 45% - 70% in outsourcing costs which translates into an estimated savings of $275 million over 5 years (2003-2007).

What type of offshore resources will we be using? Accenture is able to employ high caliber resources and depending on the specific job requisition, will determine the level of resource engaged. India has a significant number of high quality colleges and universities, which allows Accenture to pool from highly qualified candidates.

What will happen to the people affected by the transition?
Not all roles will transition to the Bangalore Delivery Center. However, as roles do transition Accenture will move people to other opportunities within their organization based on business need and skills.

What offshore location was chosen?
The following six countries were evaluated as part of the selection process: India, Spain, Canada, Philippines, Brazil, and Australia. BellSouth chose India because of the high quality and low cost of technical resources, a stable infrastructure with redundant communication links built to international standards, and the country's pro-U.S. business environment. India is also home to 62 of the 91 CMM Level 5 (best in class) organizations (globally.) The Accenture resources supporting BellSouth will be located in Bangalore, India.

Given the current geo-political climate is it wise to move any work offshore?
In order to mitigate risks associated with moving work offshore, BellSouth and Accenture reviewed the security, safety, government stability, disaster recovery capabilities, and infrastructure of the countries. Based on this assessment, offshoring was found to be a viable alternative. In addition, we are establishing processes and procedures to further mitigate risk.

What about the tensions between India and Pakistan?
Current tension between India and Pakistan is mostly isolated in the Kashmir region, over 1,000 miles away from the Bangalore Delivery Center. India is the world's largest democracy, where numerous Fortune 500 companies have had operations for years. Accenture has two offices in India that were established in 1988.

Due to the conflict in the Middle East, how safe is the Bangalore, India facility?

Bangalore is located in the south central area of India. The primary threat to India is along its border with Pakistan. Bangalore is over 1,000 miles away from this border.

What about the security of BellSouth information in a Non US location?
BellSouth conducted a security site visit to India. We concluded that the India Delivery Center's physical security meets BellSouth requirements. Accenture employee background checks are conducted based on their policy and procedures. The offshore communication network access has a higher level of security than our on-shore network access.

Where will the BellSouth data reside?
All BellSouth data will stay in the USA. A 'no download' policy of data is enforced via additional security components built into the communication infrastructure for India.

What is the disaster recovery plan for the work that moves to India?
The India Delivery Center has a full disaster recovery plan. BellSouth and Accenture reviewed and tailored the plan to comply with BellSouth security policies and standards.

Will we be using the same tools and processes or will we roll out new ones to accommodate the facility?
We will use standard processes and tools during the pilot. However, a higher degree of consistency and some modification are required to ensure clear communications.

What is the scope of the pilot?
The pilot involves transitioning 17 development and support roles from three applications to the Bangalore Delivery Center (BDC). The pilot covers a period of 5 months with the following goals: (1) proving development and support in a non-U.S. location will be transparent to the BellSouth Business Units, (2) measuring the resources required to ensure a smooth transition of the work to the new location, and (3) measuring the savings to BellSouth. Our current business case suggests moving 1/3-1/2 of our IT application work offshore. This equates to 600-900 positions over the next four years.

If the pilot is successful how many more jobs will be moving offshore?
BellSouth and Accenture will work together to determine the long-term strategy and pace of moving forward with additional non-U.S. work after reviewing the results of the pilot.

What criteria were used for selecting the pilot applications?

A formal process has been used to rank applications based on eleven categories (including headcount, complexity, stability, and impact to the BellSouth business customer). Evaluation of the results by the Accenture Tower Leads and the BellSouth CIO team resulted in the selection of the three pilot applications: OSPCM (Network), BellSouth Works (Customer Markets) and Management Accounting (Shared Services.)

How will we communicate across so many time zones?
As we do today, we will employ a number of mechanisms to communicate. While face-to-face meetings are not feasible for obvious reasons, conference calls, video conferencing, e-mail, and other technologies will be used depending on the type of interaction required.

What is the time difference between Birmingham, Atlanta, and the India Delivery Center?
The time at the Ban galore Delivery Centre in Standard Time is 10.5 hours ahead of Atlanta, 11.5 hours ahead of Birmingham. During Daylight Savings Time, the time is 9.5 hours ahead of Atlanta, 10.5 hours ahead of Birmingham.

Funny how they state a "no download" of customer information data to India, and they point out security is better down there than up here. How long till that gets moved down there?
Plus, how are their Indian call reps supposed to know what's going on without data?

Plus, how are their Indian call reps supposed to know what's going on without data?

They'll work on "virtual" data. Not.

These poor saps in India only have a job until the 'autonomic', self-healing features in IT systems start to work.

No one has a job for life. A given skill is not valuable for that long any more -- they all move to commodity status. Labor is a variable economic capacity just like factory capacity.

(Adapt, overcome, improvise) or migrate or die.

I have my turnout gear, so feel free to flame 8-)

I should point out that Internal Memos is the website by the creator of f#@#%dcompany.com, and is a clearing house for internal company emails he receives. Its a pay site, but once in a while he releases one for free.

Ping, because I know your blood's not boiling enough today.

Among other ventures of Bell South are Cingular cell phones, Southern New England Telephone and most of the Southern States telephone systems. As always anyone who wanst on or off this list let me know.

These poor saps in India only have a job until the 'autonomic', self-healing features in IT systems start to work

While I would like to believe that's true as it helps the "real" IT people that know what they're doing keep their jobs as its cheaper to pay one person $100k than have 20 code monkies running around at $5k, I don't see that happening.
What's going to happen is that IT will be gutted and you'll get a weird look if you try and to start up something without offshoring stated in your business plan. Business cycles will be cut to the bone and the only hope of innovation will be a quick home run.
That said, I'm trying to guard against offshoring myself by learning new skills. Check out Pragmatic Programmer for some ideas. Some my disgard it as Dilbert speak for "Work smarter, not harder" but hey. I've got to eat ;)

They'll work on "virtual" data. Not.

Maybe its different in India than in China, but over there you can get any software you like for a little more than the cost of the CD its printed on. Part of that is the Chinese culture wanting to stick it to the Americans. But part of it is that they're poor.
How much will $1k buy you information in the US. That's 20% of an IT worker's salary over there. Think that can get you a CD with everyone's name, SSN (freakin Sprint PCS has my SSN for some reason), and credit card info?
And Bell South, spare me the "security" that you've set up over there. How are you managing this from 8000 miles and 10hr apart? All it takes is for one person to want to make their year's salary in 10 minutes to take down your plans.

F bellsouth.

I don't use my home phone unless I forget to put the cell on the charger.

The last 30 calls on my caller ID are bellsouth trying to 'upgrade' my service.

As a matter of fact, I think I'll cancel it right now!

so feel free to flame 8-) (Adapt, overcome, improvise) or migrate or die.

FLAME??? Why? It's the truth and the truth is viable and known to everyone in this country because of our God given freedoms are still somewhat intact!

”they all move to commodity status. Labor is a variable economic capacity just like factory capacity.

Spoken like a true sweatshop foreman.

”Adapt, overcome, improvise, migrate or die” said the man to the fish he pulled from the water. Adapt, overcome, improvise, migrate or die…

This cost savings initiative will enable BellSouth to reduce IT expenditures and save an estimated $275 million over a 5-year timeframe (2003-2007.)

And in return will make them competitive in the market. If they don't maintain their competitve attitude, then the company itself will be out of business and very well could be taken over by a foreign company. Times change because consumer demands change and along with those changes we ALL must change to conform. If Bell South is making these changes to maintain their competative hold, then we all as consumers in this country benefit from the rates that are maintained or reduced because of their business saavy and forthought.

”we all as consumers in this country benefit from the rates that are maintained or reduced because of their business saavy and forthought.

Ha! Do your really think that Bell South will “maintain” or “reduce” their rates in the future?????? Don’t be a fool. Bell South’s profits will simply increase and their corporate VP’s will be able to afford that summer home in the suburbs of Paris.

"move IT to India"

OR do they mean "move labor-intensive customer-owned call-centers to India"

NOT that the public (or a lot of Freeers) would *know* the difference between *real* IT and a "call center" ...

From the article:

Our current business case suggests moving 1/3-1/2 of our IT application work offshore. This equates to 600-900 positions over the next four years.

Ha! Do your really think that Bell South will “maintain” or “reduce” their rates in the future

Yes. Through necessity to maintain the competitive edge. You make it appear as though Bell South is cutting jobs and going foreign because they want to. Do you beleive that is the case?

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