Strategic outsourcing From network to business

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Strategic outsourcing From network to business

• Franck Cormier - BT

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The Digital Networked Economy Where connectivity
has no more boundaries
Connections, any time, any place, any device
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The Digital Networked Economy the drivers of
outsourcing
Hostile environment and increased competition
Customer centricity
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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

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BT already has a strong track recordin
outsourcing and networked IT services

• 19 revenue growth last year (gt20 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

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Evidence of BTs success
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Thank you
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(No Transcript)
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Back up slides
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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

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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

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Evidence of BTs 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

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BT is now delivering 87 of Unilevers
telecommunication services worldwide

• Financial performance on track
• 20 global saving to Unilever
• Service levels have (in the main) been
  maintained, improved or established for the
  first time
• Migrated services to BTs infrastructure (TCO
  25.899m)
• c. 50m of incremental revenue for BT 03/04
• Extranet created - template for future
• 4 Remote Ops Centres established
• 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
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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.

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BT in the Outsourcing Space

• We have been providing Managed Services since the
  1980s 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

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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

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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