Outsourcing Contracts by uki18959

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									    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
The Digital Networked Economy
the drivers of outsourcing

                       Consolidation
                       & restructuring
    Hostile
  environment
 and increased                               Organisational
  competition                                    agility




          Customer               More for less
          centricity
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
BT already has a strong track record
in outsourcing and networked IT services

  19% revenue growth last year (>20% in France)
  “A surprise front runner in the ICT outsourcing race 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
Evidence of BT’s success
Thank you
Back up slides
 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
The vicious circle...
  IT and communications
  systems- the key tools to help
  address business challenges
  Businesses frequently
  concerned with business
  continuity, security and network   20 per cent of corporate IT spending
  performance                                               fails to deliver
                                        What you buy today will be out of
                                                   date in 18/24 months
  The pace of change distracts
                                     Less than 35% of integration projects
  companies from core business            come in on time and on budget.
                                        Sources: Gartner Group; Forrester Research.
Evidence of BT’s success
    Infrastructure                             CRM
    • NHS, £168m – Managed                     • Capita - £18m, to support
      network/broadband                          BBC licensing contract
    • TNT - European WAN                       • AXA - virtual call centre at 8
                                                 locations
    • Merrill Lynch - Global WAN
                                               • DWP - £170m, CRM solutions
    • Bank of America, Optical
    • LIFFE, Storage
                                                   System Integration
                                                   • Essex County Council £164m
    Outsourcing                                    • Department of Work &
    • Unilever , £640m- global voice and             Pensions £140m
      data                                         • Edinburgh City Council
    • Royal Mail, £500m (with CSC)                 • Merrill Lynch
    • HBOS, – Managed voice & data
    • National Australia Bank, £145m       Applications Mgt & Hosting
      – Managed ICT
                                           • Samsung, 5 years – Hosting
    • Bradford and Bingley - £140m-
      Managed voice & data                 • Central Office of Info, Server

    • Abbey National, £125m – Managed      • Police Northern Ireland, Intranet
      voice & data                         • Abbey National, £3.2m - Intranet
    • Hewden Stuart, Managed desktop       • Yorks & Humber, £5m - e-Learning
                                           • CGEY, e-Commerce
                                                                                 Europe
                                                                    NAM


BT is now delivering 87% of Unilever’s                                                             Asia Pac
                                                                                          AMET
telecommunication services worldwide
                                                                             LAM

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

                                                                               Consulting
                                                          Global
                                                                               & Systems
                                                         Solutions
• Focus on European multi-site organisations and                               Integration
Global organisations with European offices
• 21000 people around the world including 8100+
                                                              Global Services
outside the UK and 8000 ICT professionals
                                                   Products                         Broadcast
• 25 years of experience in providing
consultancy advice to a global customer base
                                                                     Carrier

								
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