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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
Hostile
environment
and increased
competition
Customer
centricity
Consolidation
& restructuring
Organisational
agility
More for less
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
Business
Transformation
Networked IT
Outsourcing Services
Application Management Services
Global IP Infrastructure Services
Partners
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
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partie intégrante d’un contrat. Les conditions générales de BT FRANCE SAS priment sur toutes les autres conditions.
Les marques et noms commerciaux, enseignes, etc. sont la propriété du groupe BT plc.
© BT FRANCE SAS 2004
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
performance
The pace of change distracts
companies from core business
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What you buy today will be out of
date in 18/24 months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.
Evidence of BT’s success
Infrastructure
CRM
• NHS, £168m – Managed
network/broadband
• Capita - £18m, to support
BBC licensing contract
• TNT - European WAN
• AXA - virtual call centre at 8
locations
• Merrill Lynch - Global WAN
• Bank of America, Optical
• LIFFE, Storage
• DWP - £170m, CRM solutions
System Integration
• Essex County Council £164m
Outsourcing
• Unilever , £640m- global voice and
data
• Royal Mail, £500m (with CSC)
• Department of Work &
Pensions £140m
• Edinburgh City Council
• Merrill Lynch
• HBOS, – Managed voice & data
• National Australia Bank, £145m
– Managed ICT
Applications Mgt & Hosting
• Bradford and Bingley - £140mManaged voice & data
• Central Office of Info, Server
• Samsung, 5 years – Hosting
• Abbey National, £125m – Managed
voice & data
• Police Northern Ireland, Intranet
• Hewden Stuart, Managed desktop
• Yorks & Humber, £5m - e-Learning
• Abbey National, £3.2m - Intranet
• CGEY, e-Commerce
NAM
Europe
BT is now delivering 87% of Unilever’s
telecommunication services worldwide
Asia Pac
AMET
LAM
• Financial performance on track
• 20% global saving to Unilever
Facts & Figures
• Service levels have (in the main) been maintained,
improved or established for the first time
Contract Value: €1bn, 7 years
• Migrated services to BT’s infrastructure (TCO
Scope: PABX, Handsets, Mobile, Dial-up, Fax, Video
€25.899m)
Conferencing, Calling Cards, Voice & Data, Router mgmt
• c. £50m of incremental revenue for BT 03/04
• Extranet created - template for future
Scale: 104 Countries, €20m assets,
• 4 Remote Ops Centres established
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
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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
• 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
Consulting
& Systems
Integration
Global
Solutions
Global Services
Products
Broadcast
Carrier