Driving Efficiencies Through Blended Offshore Outsourcing Models

1. Driving Efficiencies Through Blended Offshore Outsourcing Models Gary Jones Quantum Corporation Director, Customer Support

2. Quantum, a global leader in storage, delivers highly reliable backup, recovery and archive solutions that meet demanding requirements for data integrity and availability with superior price/performance and comprehensive service and support. Quantum offers the broadest portfolio of tape drives, tape autoloaders, tape libraries and disk-based backup systems. Service Strategies - Certification Showcase

3. By the Numbers Service Strategies - Certification Showcase

4. Twice-Certified Support Center • Quantum remains the only secondary storage company to achieve Support Center Practices certification • Successfully passed our 2nd audit earlier in the year • Field Service Practices (FSP) charter member • Currently working towards Field Support Practices initial audit • Award-Winning Service • Omega NorthFace ScoreBoard Award Service Strategies - Certification Showcase

5. Setting the Stage • Quantum acquired two new data-storage businesses • Both businesses had several call centers each • Call volume was not very high at any of the call centers • Quantum’s primary call center in Irvine, CA, was not able to absorb additional calls • We quickly concluded that we had to go outside for resources • We knew our call volume would not be very interesting to most vendors • The required skill-set was more engineering than technical • Few vendors possessed knowledge about the storage industry or its technologies, or had the lab infrastructure required to support data storage products • Customer-contact positions have always been in-house. Quantum executive management and our sales team would have to be sold on the possibility of going off-shore Service Strategies - Certification Showcase

6. Why We Thought We Could Do It • We developed a simple outsourcing strategy that would ensure that Quantum Global Services remained focused and aligned with the passions of other Quantum organizations • All practices will have a Customer Centric Focus • All practices will support our Distribution Channels • All practices will support our Global Presence • All practices will promote Service as a Differentiator • We believed in our service readiness processes • We believed in our quality check points that allow us to continuously validate our service processes and measure our performance Service Strategies - Certification Showcase

7. Our Thought Process OFF-shore ON-shore • One location per geo (US, EMEA, APAC) • Would provide 1st & 2nd level support to channel partners and global accounts with local HQs • Would focus on high-margin service products only • Centralized at QSS HQ (QSS hosts all Quantum support) • Would host all critical support activities like 3rd level support, SOP definition & strategy • Host and make available all high $ capital equipment requirements IN-source • Most favorable cost model • Focus would be on high volume/ low margin service products • Would leverage franchise capabilities developed at HQs • Engineering level resources abundant • Industry experience growing • Use when existing vendor relationships should be leveraged • Initial staging when time-to-market requirements are tight • High-level engineering resources not required • Significant industry experience not required OUT-source Service Strategies - Certification Showcase

8. The Search for the Perfect Partner Begins • Attributes that would meet our objectives: • Full appreciation for Quantum’s quality objectives • Quality and process checks in place • Personnel trained in soft-skills and service delivery • Financially stable • Demonstrated competency in out-sourcing • Domestic interface with partnership mentality • Reliable and secure infrastructure • Responsive scalability • Competitive value proposition = Quality/Cost Service Strategies - Certification Showcase

9. Managing What You Measure • Our transactional surveys told us that if we scored high on EXPERTISE, customers would tend to rate us high in all categories. Loyalty scores (buy again, recommend) generally followed the EXPERTISE curve on our periodic surveys • We invested in tools & built ‘traditions’ that allow us to minimize the variability of knowledge at the individual level: • Weekly training: product, process, technical, soft-skills, western civilization (e.g. People Magazine!) & language skills (think off-shore companies) • FAQ system, pushed-based, closed loop: 3 access levels; Customer-Partner-Quantum (containing increasingly more sensitive information) • Technical Forum: For Quantum’s Technical Community including partners (safe-haven for technical discussions) • Web-based Certification & Training: Content mgmt; course monitoring; “who knows what” and “where are they located” (how long ago did they learn it) • M2M: An ever-growing, machine-to-machine bit-cruncher that pushes support personnel to their next step (Device Relationship Management) Service Strategies - Certification Showcase

10. We set out to franchise our business at all 5 call centers The businesses are operated locally, by independent management (three Quantum sites + two different vendors) Common set of tools and traditions Standard Operating Procedures inclusive of “leading” practices All franchisees share the following characteristics Common passion about Customer Satisfaction Push CSAT measurement to the individual level Autonomy over actions required to meet CSAT goals Autonomy over operational metrics (for the most part) Centralized skills assessment Centralized tools management Franchising Support Service Strategies - Certification Showcase

11. Partner Management • Typical account management activities • HQ based Technical Account Manager assigned to each site (& partner) • HQ based Business Manager assigned to each site • Formal quarterly business reviews with each partner • Yes, we can be a high-maintenance customer • Continuous monitoring of transactional survey results, both aggregated and at the individual call-center rep level (+ secret shopping, etc.) • Frequent calls with each partner based on customer feedback • Constant review of technical and product courses taken, not taken, and related assessments Service Strategies - Certification Showcase

12. From the Beginning Service Strategies - Certification Showcase

13. Knowledge Management • All vendors are required to access the KMS for each call and make reference to what search terms were unsuccessfully used Service Strategies - Certification Showcase

14. Technical Forum • Quantum utilizes an on-line forum that encourages “what-if” discussions and collaboration on product issues BEFORE they become customer or support issues Service Strategies - Certification Showcase

15. Web-based Certification & Training • Who Knows What? • Anytime, anywhere tool for managing the skill-set of Quantum support personnel and partners Service Strategies - Certification Showcase

16. M2M – Machine 2 Machine • Quantum has recently deployed an M2M tool that was built to minimize the impact of skill and knowledge variability Service Strategies - Certification Showcase

17. Closure Confirmation Service Strategies - Certification Showcase

18. Transactional Survey • Survey contains quick links to call avoidance tools • Survey visually communicates location of call centers Service Strategies - Certification Showcase

19. Lessons Learned • Investment in training and on-site support paid big dividends in ensuring that high quality team performance was delivered at launch • Close launch team coordination between Quantum and partners ensured that objectives could be achieved in a narrow launch window • Clear program requirements and performance expectations provided a strong framework to conduct a successful fast track launch Service Strategies - Certification Showcase

20. Lessons Learned – continued – • Ensure complete buy-in of internal stake-holders • Get IT in early (voice and data can be the long-poles) • Document and communicate business objectives early • Work with a proven profitable player with experience • Assure functional teams buy into plan • Define specific metrics that align with business goals • Ease into transition in a phased manner • Daily relationship management until steady state is secured • Trust the experience of your chosen partner Service Strategies - Certification Showcase

21. Add it All Up • Global Presence • True “follow-the-sun” global support infrastructure • Global logistics and parts movement • Dedicated support resources in each region • World-wide field service response • Account managers assigned to key customers and partners Customer Focused • SCP Certified - independently audited • Omega NorthFace - Award winning • Transactional surveys - actively manage services operations based on daily customer feedback • Periodic surveys – 3rd party managed live surveys assure service operations are meeting or beating industry best practices 1 2 + • Channel Driven • Comprehensive on-line training resources > Quantum Learning • FAQ/Knowledge base with partner-only sections • StorageCare Partner - Industry first VAR participation program • Service as a Differentiator • Full interoperability assurance and testing of products • Significant investment in tools and other resources • M2M capabilities a first in the secondary storage market 3 4 Service Strategies - Certification Showcase