EXHIBIT 10.25
SCOPE OF WORK FOR
2005-2008 FORD GLOBAL SPOC PROGRAM
SCOPE OF WORK
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FORD MOTOR COMPANY
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DECEMBER 1, 2005
FORD GLOBAL SPOC SCOPE OF WORK
CONFIDENTIAL INFORMATION OF TECHTEAM GLOBAL, INC.
The information in this proposal shall not be disclosed outside of Ford Motor Company organization and shall not be duplicated, used or disclosed, in whole or in part, for any purposes other than to evaluate the proposal, provided that if a contract is awarded to TechTeam Global, Inc., as a result of or in connection with the submission of this proposal, Ford Motor Company shall have the right to duplicate, use or disclose the information to the extent provided by the contract. This restriction does not limit the right of Ford Motor Company to use information contained in the proposal if it is obtained from another source without restriction.
Copyright (C) 2005 TechTeam Global, Inc.
All Rights Reserved. Printed in the United States
DECEMBER 1, 2005 PAGE i
FORD GLOBAL SPOC SCOPE OF WORK
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY........................................................................ 6
2.0 SPOC PROGRAM OVERVIEW.................................................................... 10
SPOC Program Model........................................................................ 10
SPOC Program Vision and Guiding Principles................................................ 10
Geographic Footprint...................................................................... 10
Managed Service........................................................................... 11
Service Catalog........................................................................... 11
3.0 PRICING TRANSPARENCY..................................................................... 12
Seat Counting............................................................................. 12
Seat Count Guiding Principles.......................................................... 12
Baseline Seat Count Matrix............................................................. 13
End User Behavior......................................................................... 13
Support Request Frequency (SRF)........................................................ 13
Incident Handle Time (IHT)............................................................. 14
4.0 PROGRAM GOVERNANCE....................................................................... 15
Feedback Forums........................................................................... 15
Issues Meeting......................................................................... 15
Operational Review..................................................................... 15
Board of Governors..................................................................... 16
Executive Review Meetings.............................................................. 17
5.0 PROGRAM SERVICE COMPONENTS............................................................... 18
Core SPOC Program Services................................................................ 18
Support Center (Service Desk).......................................................... 18
JLR Manufacturing Support.............................................................. 20
Deskside Central Support............................................................... 20
Support Center and Deskside Hours of Operations........................................... 21
Global Project Office.................................................................. 22
6.0 SERVICE LEVEL OFFERINGS.................................................................. 24
SPOC Program Core Service Offerings....................................................... 24
Ford Service Level Agreements-Core Services............................................ 24
7.0 PROGRAM FLEXIBILITY...................................................................... 28
Working Together in Partnership to Reduce Costs........................................... 28
The Bi-Annual True Up..................................................................... 28
Seat Count True Up..................................................................... 28
Customer Behavior True Up.............................................................. 28
True Up Result Scenarios and Outcomes.................................................. 29
An Out of Cycle True Up................................................................... 31
Timeline for a Change in Service.......................................................... 31
Baseline Activity Monitoring.............................................................. 31
Global SPOC Program by Business Unit'..................................................... 33
8.0 THE CUSTOMER EXPERIENCE.................................................................. 34
Customer Experience Model................................................................. 34
DECEMBER 1, 2005 PAGE 2
FORD GLOBAL SPOC SCOPE OF WORK
Customer Experience Focus Groups....................................................... 34
Customer Satisfaction Surveys.......................................................... 34
9.0 SPOC PROGRAM PRACTICES................................................................... 35
Ford Employees Working in the SPOC Program................................................ 35
Global Guiding Principles-Ford Employees in the SPOC Program DE-Niehl (DE-Koln)Region 35
German Worker's Council Agreement...................................................... 37
Transition of Non TechTeam Agency Resources............................................... 38
Industry Analysis (Benchmarking).......................................................... 38
Supporting Functions...................................................................... 40
Reporting and Metrics..................................................................... 43
Change Management......................................................................... 46
Continuous Improvement.................................................................... 49
Cycle Plan of Innovation............................................................... 49
Focus Groups........................................................................... 49
Focus Group Workflow................................................................... 50
Focus: HOPE Hiring Program (North America Only)........................................... 50
IT Apprenticeship Program................................................................. 50
Human Resources Polices................................................................... 51
10.0 2005-2008 RE-DESIGNED SPOC PROGRAM IMPLEMENTATION....................................... 52
Re-designed Global SPOC Program Transition Approach....................................... 53
Communication Forums................................................................... 55
Adherence to Timelines................................................................. 55
11.0 JAGUAR LAND ROVER INTEGRATION........................................................... 56
Jaguar Land Rover Transition Approach..................................................... 56
Preparation and Readiness.............................................................. 58
Transfer of Personnel, Processes and Infrastructure.................................... 58
Launch................................................................................. 59
Project Launch Methodology and Toolsets................................................ 59
Critical Assumptions, Risk Analysis & Mitigation Strategies............................ 61
Adherence to Timelines.................................................................... 63
12.0 SPOC PROGRAM ASSUMPTIONS AND RESPONSIBILITIES........................................... 64
Program Assumptions....................................................................... 64
Ford Responsibilities..................................................................... 65
TechTeam Responsibilities................................................................. 66
13.0 NORTH AMERICAN FACILITY AGREEMENT....................................................... 67
Physical Location......................................................................... 67
Security.................................................................................. 67
Furniture................................................................................. 67
Telecommunications........................................................................ 68
Network................................................................................... 68
Facility Scalability Requirements......................................................... 69
Facility Services Assumptions and Responsibilities........................................ 69
Ford Responsibilities.................................................................. 69
TechTeam Responsibilities.............................................................. 70
Project Assumptions.................................................................... 70
DECEMBER 1, 2005 PAGE 3
FORD GLOBAL SPOC SCOPE OF WORK
14.0 INVESTMENT SUMMARY...................................................................... 71
Core Services Investment Methodology...................................................... 71
Core Services Pricing Matrix.............................................................. 72
Menu Option Pricing....................................................................... 72
Fixed Fee Activities................................................................... 74
Time and Materials Activities.......................................................... 76
North American Facilities Pricing......................................................... 77
Facility Expansion..................................................................... 77
Facilities Pricing Assumptions......................................................... 77
Transition Costs.......................................................................... 78
Re-Designed Global SPOC Program Implementation Costs................................... 78
JLR Integration Implementation Costs................................................... 78
UK-JLR Menu Option Pricing................................................................ 79
Expanding JLR from 10 to 11 Contiguous Hours........................................... 79
JLR Specific SPOC Manufacturing Support Center Option.................................. 79
Variable Pricing.......................................................................... 80
Seat Count Growth...................................................................... 80
Seat Count Declines.................................................................... 80
Quality Assurance Pricing................................................................. 81
Investment............................................................................. 81
Time and Materials Rates.................................................................. 82
DE-Niehl (DE Koln)Credit-Ford Employees Working in SPOC................................... 83
Investment Assumptions.................................................................... 84
Customer Count Assumptions:............................................................ 84
Governance Assumptions:................................................................ 85
Other Investment Assumptions:.......................................................... 85
Invoicing Method.......................................................................... 85
15.0 AGREEMENT............................................................................... 86
Initial Term.............................................................................. 86
Terms..................................................................................... 86
Ford Terms and Conditions.............................................................. 86
Other Contract Terms................................................................... 86
DECEMBER 1, 2005 PAGE 4
FORD GLOBAL SPOC SCOPE OF WORK
16.0 APPENDIX............................................................................... 88
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Indicates that material has been omitted and confidential treatment has
been requested therefor. All such omitted material has been filed
separately with the SEC pursuant to Rule 24b-2.
DECEMBER 1, 2005 PAGE 5
FORD GLOBAL SPOC SCOPE OF WORK
1.0 EXECUTIVE SUMMARY
This Scope of Work document was jointly developed by principal representatives of the Ford Motor Company (hereinafter Ford) and Tech Team Global, Inc (hereinafter TechTeam). We believe that this close-knit working relationship and partnership developed a very robust and comprehensive set of program principles and requirements required for the continuation and enhancement of the Ford Motor Global SPOC Program (hereinafter SPOC Program). The intent of this Scope of Work is to clearly articulate the consolidated support model, service offerings, program practices and financial models used to support this complex and comprehensive approach to delivering IT Support Services.
The SPOC Program is a holistic approach to marrying Support Center and Deskside support under the first level support umbrella.
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To reflect this, a number of key principles have been incorporated into the contract structure, which will enable Ford and TechTeam to continue to deliver a quality, customer focused service aligned to the needs of the business. The key principles have been incorporated into 5 categories and are summarized below.
CONTRACT SCOPE & STRUCTURE
The key principles relating to contract scope and structure incorporated into this SOW are listed below:
- A single sourced contract to TechTeam Global provided that:
- Ford savings targets are met
- TechTeam provides a European Offshore solution including a timed
implementation plan and savings targets ready for implementation
upon Ford approval
- A plan detailing actions and timing for a North American off shore
feasibility study is developed
- A single global contract that includes regional requirements
- A regional/global level resource management model
- A services catalog with priced, optional regional menu selections
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TRANSPARENCY
- The service pricing was based on an 'open book' pricing methodology.
Through this methodology, TechTeam provided Ford Motor Company with the
costs of delivering the SPOC Program service within each of the regions.
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DECEMBER 1, 2005 PAGE 6
FORD GLOBAL SPOC SCOPE OF WORK
CUSTOMER EXPERIENCE
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SPOC PROGRAM CORE SERVICE OFFERINGS
SPOC Program Support Center and Deskside service levels will be offered
on a consistent global basis. Changes have been agreed to for
incorporation into the Core Services with a view to reduce the overall
Ford total cost of ownership. These changes are primarily found in the
areas of delivery models, service levels and supporting functions.
FLEXIBILITY
Flexibility to reduce SPOC Program costs will be achieved on a Global or Regional basis through the following methods:
DECEMBER 1, 2005 PAGE 7
FORD GLOBAL SPOC SCOPE OF WORK
1. WORKING TOGETHER IN PARTNERSHIP TO REDUCE COSTS -- Ford Motor business
conditions may require that SPOC Program costs be reduced on a global or
regional basis. If this occurs, Ford and Tech Team will work together to
identify viable options by reducing SPOC Program services to achieve cost
targets. Tech Team will be requested to develop a proposal for all viable
strategies and will include risk analysis, business impact and savings
potential.
2. THE BI-ANNUAL TRUE UP -- A bi-annual true up will take place for all
regions participating in the program. The true up will take into account
multiple data points, including a re-calculation of seat counts, support
request frequency and incident handle time. Following the true up, results
will be included on the agenda for the next Board of Governors meeting.
The purpose of this meeting will be to discuss the outcome of the true up
and make a joint decision on next step actions. The data points listed
above along with scenarios provided in the SOW will be used as a decision
making aid to Ford. Implementation of changes in the delivery model and
associated costs will follow the Timeline for a Change in Service (not to
exceed 3.5 months) defined below. Options may include cost adjustments, an
agreement to waive SLAs, or to void SLAs until the thresholds return to
those expected. Additional data points, such as Customer Satisfaction, can
be used to arrive at an appropriate future action.
3. AN OUT-OF-CYCLE TRUE UP -- Each region will be eligible for an out of
cycle seat count true-up if a Significant Event occurs that causes a
change in the existing number of total seats in that region by a factor of
+/- five percent. In order for this to be implemented, data must be
provided as to the number of individuals leaving the program by region and
the estimated timescales involved. A Significant Event is defined as an
organizational restructure, regional realignment, and/or elimination of
SPOC Program seats within a SPOC Program region. Additionally, a
Significant Event will include the addition of SPOC Program seats caused
by an event other than the launch of a new building. Results of the Out of
Cycle True Up will follow the same process as outlined in the Bi-Annual
True Up. Implementation of changes in the delivery model and associated
costs will follow the Timeline for a Change in Service (not to exceed 3.5
months) defined below. Options may include cost adjustments, an agreement
to waive SLAs, or to void SLAs until the thresholds return to those
expected. Additional data points, such as Customer Satisfaction, can be
used to arrive at an appropriate future action.
DECEMBER 1, 2005 PAGE 8
FORD GLOBAL SPOC SCOPE OF WORK
TIMELINE FOR A CHANGE IN SERVICE
In the event that the above actions trigger a request for a change in service, the implementation of such a request will be subject to a maximum of 3.5 months* to take effect (for risk analysis and approval to be undertaken). The target timescales will be communicated to show when the changes are expected to begin.
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*This timescale applies to all requests where resource changes result in a downsizing or upsizing of 15 individuals or less. Where the changes are greater than this, indicative timescales will be provided based on the scope of the change.
BASELINE ACTIVITY MONITORING
Pro-active monitoring of the support request frequency, incident handle time and user population (elements of the baseline) will be reported on a monthly basis. This will enable Ford to actively prepare for any cost or service change requirements.
The support request frequency and incident handle time will be monitored to ensure the resource levels continue to be aligned to the demands of the business. In the event that these levels go above or below the agreed thresholds for a period of 3 continuous months, this will trigger a review between the regional representatives and board of governance.
In addition, trends will be reported to Ford each month showing year to date figures to ensure continued visibility of potential movement.
PROGRAM GOVERNANCE
A single global governance structure/process will continue to be at the foundation of the SPOC Program contract.
Regional representatives will be responsible for identifying the needs and demands of their region and for proposing any changes in service scope or delivery. If the change requested by the regional representative is one authorized to be handled at a regional level according to the contract, there will be no requirement that it be approved by the governance board. Should the requested change be outside of the contract structure, it will then be the responsibility of the regional representatives to put recommendations forward for acceptance through the SPOC Program governance process.
DECEMBER 1, 2005 PAGE 9
FORD GLOBAL SPOC SCOPE OF WORK
2.0 SPOC PROGRAM OVERVIEW
SPOC PROGRAM MODEL
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SPOC PROGRAM VISION AND GUIDING PRINCIPLES
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GEOGRAPHIC FOOTPRINT
Within Ford, the SPOC Program is governed and delivered via a centralized, global approach. The Program is founded on global principles and is segmented into regions which are defined by geographic areas where SPOC Support Centers reside. The Program is delivered from the following Support Centers:
- North America (NA)*
- UK-Ford (UK-Warley)
- DE- Niehl (DE- Koln)
- UK - JLR**
*Note: The North America region supports both Ford Motor and Ford Credit North American enrolled users. All North American enrolled users are supported from one common North American support center. However, the Deskside support model for Ford Motor and Ford Credit has key differentiators and where required the language within the SOW identifies the differentiation between Ford Motor and Ford Credit within the North American region.
**Note: The UK-JLR region is included in this Scope of Work and is planned to launch within the Program after execution of this contract.
DECEMBER 1, 2005 PAGE 10
FORD GLOBAL SPOC SCOPE OF WORK
As the Program evolves and expands, changes to regional delineations will be documented via the Change Management and Governance Processes.
MANAGED SERVICE
TechTeam will provide a Managed Service for all SPOC Program Customers. This includes analyst resources, operational management, training, communications, travel, processes and tools owned by the Program used to deliver support. Tools required to deliver the SPOC Program (i.e. an incident management tool), which are not owned by TechTeam, will be maintained by Ford or the appropriate application owner.
Ford and TechTeam agree that TechTeam will deliver these services on a Managed Service basis, and that as a Managed Service: TechTeam commits to handle the forecasted support volume within the SPOC Program agreed upon Service Levels offered at a unit cost, presently defined at a per unit price. Should Ford require alternative pricing models, the unit price will change.
SERVICE CATALOG
The services provided under this Scope of Work are documented in the Appendix D, the SPOC Program Services Catalog. This catalog is designed to identify the scope of services provided by the Ford Global SPOC Program.
The Service Catalog contains Core Services (services delivered to all SPOC Program customers globally as part of the unit price of the program) and Menu Options (additional services available to the customer if required). The catalog defines the description, Customers, regional service hours, service level agreements and key functions for each of the services. Changes to the Service Catalog will follow the Global SPOC Program Change Management Process.
DECEMBER 1, 2005 PAGE 11
FORD GLOBAL SPOC SCOPE OF WORK
3.0 PRICING TRANSPARENCY
SEAT COUNTING
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SEAT COUNT GUIDING PRINCIPLES
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DECEMBER 1, 2005 PAGE 12
FORD GLOBAL SPOC SCOPE OF WORK
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BASELINE SEAT COUNT MATRIX
The number of enrolled seats as a result of the December 1, 2005 true up is as follows:
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END-USER BEHAVIOR
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SUPPORT REQUEST FREQUENCY (SRF)
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DECEMBER 1, 2005 ...
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