Presentation by Dr. Andreas Maaser of Telefonica Germany at the EOA Summit & Awards, Madrid, 21st June 2011

1. IT Benchmarking
21.06.2011
Dr. Andreas Maaser

2. 1Dr. Andreas Maaser in confidence
01 Company profile
02 Telefònica Germany - IT outsourcing
03 Key performance indicators
04 Benchmarking
05 Working group IT Benchmarking
06 First results; next steps

3. Telefónica Germany is part of Telefónica S.A.,
one of the biggest internationally operating telecommunications
companies in the world.
2Dr. Andreas Maaser in confidence
 Mobile Telecommunication
 Mobile Internet
 Internet access
 Fixed network telephony
 Virtual Private Networks, security and
hosting
 Broadband wholesale
Portfolio
 More than 20 million customers, 17,03 m mobile customers and more than 2,6 m DSL
customers
 More than 1,1 million broadband connections (ULL) through partners
 Revenue in Q1/2011: 1,23 billion Euros
 Network coverage : 99% Mobile voice, 95% DSL and fixed network telephony, 98%
Mobile Data,  LTE next-generation mobile technology
01
Facts &
Figures
 1995 – Foundation of VIAG Interkom
(as a joint venture between VIAG AG,
British Telecommunications &Telenor)
 2002 – VIAG Interkom becomes o2
Germany
 2006 – o2 becomes part of the Telefónica
group
 2011 – Integration HanseNet; Telefónica
o2 Germany becomes Telefónica
Germany; LTE Roll-out
History

4. 3Dr. Andreas Maaser in confidence
02 Telefónica Germany
has experience in successful IT outsourcing for several years.
Produc-
tion
Quality
Ass.
DevelopmentPlanning & Capacity
Management
Planning
E2E
Analysis
Analysis
Coding
& CT
Integration
E2E Test
Launch
offshore:
60%
onsite:
40%
internal
&
external
offshore:
80%
onsite:
20%
internal
&
external
Shareofoffshore
activities
0
25
50
75
100%
2011201020092008

5. 4
03 Key performance indicators
were used to manage and compare the different vendors.
Dr. Andreas Maaser in confidence
DefinitionKPI
Cost Onshore/Offshore
Ratio
On-/Offshore MDs/
Total MDs
Average Dayrate Total Cost/ MDs
other
KPIs
Governance Effort Internal MDs/
Deliveryvolume
Scalability Availability of
resources
Ratio Cost E2E Test -
Development
Cost E2E Test/ Cost
Development
Contracted
KPIs
Quality Defect Density MDs/ Defects
Defect Ratio
Production/E2E
Production Defects/
E2E Defects
Service Level
Agreement
Reaction Time/
Resolution Time
Productivity Function Point
Analysis Function Points / PM
MD = Mandays
PM = Person Month

6.  After transition new vendor
exceeded expectations
 Company internal benchmark
difficult due to different
technologies, methodologies,
scope, etc.
5Dr. Andreas Maaser in confidence
04 Benchmarking
reasons for benchmarking on operational level.
IT outsourcing
start transition
time
progress
 Available IT Benchmarks on the market:
• too generic or high level
• doesn´t reflect different methodologies, technologies, etc.
• definition of metrics can be misinterpreted
• definition cannot be adapted on specific conditions
• no option to get in touch with other benchmarking participants

7. Working group IT Benchmarking
was initiated together with European Outsourcing Association
Germany e.V.
6Dr. Andreas Maaser in confidence
comparison of outsourcing services on an operational level
projects with different parameters and methodologies of
software development (e.g. Waterfall, Scrum)
• companies with offshore IT development
• “users-only” benchmarking working group
• regular workshops
• definition of commonly accepted metrics of benchmarking
parameters to ensure comparability
• discussion of results (current metrics: defect density &
test effort)
• confidence – based on NDA
05
Target
Approach
Members
Scope

8. 7
Working group IT Benchmarking
first comparable results and the exchange of experiences give clear
indications about success factors in outsourcing.
06
Benchmarking metrics which
are in place and have been
compared:
• Test Effort
• Defect Density
 splitted for different
technologies & methodologies
Next steps:
• Definition and comparison of
Productivity
• Scope enhancement
regarding other metrics
• expansion of working group
to widen data base
 EOA Germany
• Dr. Jörg Stimmer
(joerg.stimmer@plixos.com)
• Prof. Dr. Wolfgang
Fritzemeyer
(wolfgang.fritzemeyer@bake
rnet.com)
 Telefónica Germany
• Dr. Andreas Maaser
(andreas.maaser@o2.com)
First results Contact
Dr. Andreas Maaser in confidence