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Strategic outsourcing From network to business

Strategic outsourcing From network to business. Franck Cormier - BT. The Digital Networked Economy Where connectivity has no more boundaries. Connections, any time, any place, any device. Consolidation & restructuring. Organisational agility. More for less.

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Strategic outsourcing From network to business

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  1. Strategic outsourcing From network to business Franck Cormier - BT

  2. The Digital Networked Economy Where connectivity has no more boundaries Connections, any time, any place, any device

  3. Consolidation& restructuring Organisational agility More for less The Digital Networked Economy the drivers of outsourcing Hostile environment and increased competition Customer centricity

  4. BT is a global IT and networking services company with Targeted propositions Proven capability Global reach World-class partners Leveraging BT network expertise Exploiting BT practitioner experience

  5. BT already has a strong track recordin outsourcing and networked IT services 19% revenue growth last year (>20% in France) “A surprise front runner in the ICT outsourcingrace is BT” (source The Times 8th June 2004) BT signed more than 160 outsourcing contracts, with an estimated contract value of over £10 billion 60% of Fortune 500 companies and two third of the CAC40 rely on BT Our contracts range from Bradford and Bingley, worth £3.75m over 5 years, transferring all existing assets and 3 people transferred, to Unilever worth € 1billion, transfer of €20million of assets and transfer of up to 150 employees

  6. Evidence of BT’s success

  7. Thank you

  8. Back up slides

  9. New challenges and consequences in the digital networked economy The consequences for organisations are twofold: • New opportunities • to increase operational efficiency • reach new customers and markets • create new modes of organisation • New challenges • to manage increasingly • complex business ecosystems • to manage an increasingly competitive environment

  10. 20 per cent of corporate IT spending fails to deliver What you buy today will be out of date in 18/24 months Less than 35% of integration projects come in on time and on budget. Sources: Gartner Group; Forrester Research. The vicious circle... IT and communications systems- the key tools to help address business challenges Businesses frequently concerned with business continuity,security and network performance The pace of change distracts companies from core business

  11. Evidence of BT’s success • CRM • Capita - £18m, to support BBC licensing contract • AXA - virtual call centre at 8 locations • DWP - £170m, CRM solutions • Infrastructure • NHS, £168m – Managed network/broadband • TNT - European WAN • Merrill Lynch - Global WAN • Bank of America, Optical • LIFFE, Storage • System Integration • Essex County Council £164m • Department of Work & Pensions £140m • Edinburgh City Council • Merrill Lynch • Outsourcing • Unilever , £640m- global voice and data • Royal Mail, £500m (with CSC) • HBOS, – Managed voice & data • National Australia Bank, £145m – Managed ICT • Bradford and Bingley - £140m- Managed voice & data • Abbey National, £125m – Managed voice & data • Hewden Stuart, Managed desktop • Applications Mgt & Hosting • Samsung, 5 years – Hosting • Central Office of Info, Server • Police Northern Ireland, Intranet • Abbey National, £3.2m - Intranet • Yorks & Humber, £5m - e-Learning • CGEY, e-Commerce

  12. Europe NAM Asia Pac AMET LAM BT is now delivering 87% of Unilever’s telecommunication services worldwide • Financial performanceon track • 20% global saving to Unilever • Service levels have (in the main) beenmaintained, improvedorestablished for the first time • Migrated services to BT’s infrastructure (TCO €25.899m) • c. £50m of incremental revenue for BT 03/04 • Extranet created - template for future • 4 Remote Ops Centresestablished • Expanded to boundary - LAN, Firewall • Operational in 104 countries (60 new trading entities established) Facts & Figures Contract Value: €1bn, 7 years Scope: PABX, Handsets, Mobile, Dial-up, Fax, Video Conferencing, Calling Cards, Voice & Data, Router mgmt Scale: 104 Countries, €20m assets, c.840 existing contracts, c.400 3rd parties c.100 staff, 13 Languages

  13. Digital Networked Economy Drivers • Convergence of IT and Communications markets creating significant business opportunities; • No single provider can meet all requirements; • Growing customer demand for seamless end-to-end service, with global reach; • Strength of leading competitors – need to find differentiation to win the large complex opportunities; • Growing opportunities for solutions in the Small-Medium and Enterprise market sectors.

  14. BT in the Outsourcing Space • We have been providing Managed Services since the 1980’s and signed our first outsourcing deal in 1992 with TSB • We have signed more than 160 outsourcing contracts, with an estimated contract value of over £10 billion • Our contracts range from Bradford and Bingley, worth £3.75m over 5 years, transferring all existing assets and 3 people transferred, to Unilever worth € 1billion, transfer of €20million of assets and transfer of up to 150 employees • We partner with other key outsourcers - for Royal Mail we worked in a consortia with CSC and Xansa to deliver the £1.5billion solution, where around 1,700 people were transferred to the 3 partners • We have provided outsourced operations across the globe, including Asia Pac, the Americas and Europe • We can deliver the entire breadth of capability in our outsourcing solutions including networks, IT applications, integration, BPO and consulting

  15. Pan-European Network Service Providers: Magic Quadrant • Evaluation Criteria • service portfolio and coverage • client relationship (support, service & quality) • “mind share” and market share • pricing • corporate viability • product strategy • marketing and sales strategy • business and financial strategy • technology strategy • operational strategy

  16. BT Global Services at a glance • We are a £5.8bn division of BT, growing at 7% • Our ambition is to be recognised internationally as the market leader in: Designing, developing and managing IT and communications systems, including outsourcing and business transformation services Global Solutions Consulting & Systems Integration • Focus on European multi-site organisations and Global organisations with European offices • 21000 people around the world including 8100+ outside the UK and 8000 ICT professionals • 25 years of experience in providing consultancy advice to a global customer base Global Services Products Broadcast Carrier

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