to deliver a state of the art online store to ensure uniform customer experience
The core challenge was to provide a globally consistent contract-to-invoice service across four lines of business – Microsoft Dynamics, Commercial Operations, Enterprise Services and Original Equipment Manufacturers Operations – that together represent over 90% of Microsoft’s global revenues.
Microsoft had previously used seven vendors in five locations across four continents. Processes had become fragmented; meaning quality and service were inconsistent. This lack of standardisation was adversely impacting operating costs, productivity and customer satisfaction.
Following an intensive nine-month process, Microsoft selected Arvato as its preferred outsourcing partner to align worldwide business, standardise global processes, achieve significant cost savings, and enhance the customer and partner experience.
a global managed service model
In a five-year agreement worth £130m ($200m) Microsoft, for the first time, entrusted the processing of 90% of the company’s worldwide revenues (more than $60bn in FY2011) to a single global partner.
The scale of this global BPO relationship was unique in managed services, covering six locations worldwide (Dublin, Reno, Fargo, Monterrey, Singapore, Manila), and involving 1,100employees, 15 languages and more than 4,000 processes.
To manage the complexity and risk, Microsoft and Arvato established a managed services model, covering the whole ‘contract to invoice’ chain. This global managed services solution empowered Arvato to drive operational improvements and achieve over 20%, cost savings, while enabling Microsoft to redeploy its resources to deliver value-added work.
A new financial model was also agreed of a fixed price over the lifetime of the contract, linked to risk-reward payments, driving Arvato to seek out transformational opportunities.
Under the innovative managed solution, Arvato is empowered to make operational decisions according to the scope of contract and with clear accountability. For its part, Microsoft is freed from micro-managing day-to-day operations.
Instead, clear service level agreements and a remedies framework enable it to focus on outcome-based performance targets, such as revenue growth and customer satisfaction.
Mirrored personnel structures have been aligned between Arvato and Microsoft, facilitating open communications and simplified reporting. This has allowed prompt local decision makingto drive continuous improvement and delivery of critical milestones. To review progress and ensure compliance with targets and timelines, a joint Steering Committee and three-tier governance model were established.
Services: complete contract-to-invoice service
Agreement management and contract planning
Amendment and maintenance management
Order management (including royalty reporting)
Query management and customer care
Quality, compliance and Sarbanes-Oxley controls
Business intelligence and reporting
IT solutions and helpdesk