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Playing the home advantage
UK Nearshore Delivery Centers
Andy Bates
VP, Infrastructure Transformation Services
March 2011
Why have UK Nearshore? For our customers …




    Data Privacy                         Location                    Staff Retention
 EU Data Protection holds UK      UK location means teams can         Gives clients an extended
  companies accountable for           interact 8 hours a day                resource pool
   customer data stored with
                                  Close to International airports      Staff retention is a major
 vendors (Directive 95/46/EC);
                                    Quick and easy access to         strength of our UK locations.
    keeping data onshore is
becoming increasingly important    Motorway and Rail links to       UK Nearshore Delivery Centre
     to UK/EU corporations        London and other major cities     attrition rate for 2011 currently
                                  Allows staff to be deployed to             stands at 10.7%
                                  customer sites where required       Benefits of low attrition are:
                                                                    knowledge retention, continuity,
                                                                        increased productivity


                                                                                                 | Infrastructure Services
                                                                                                                     2
                                                                                  © 2011 Capgemini. All rights reserved.
For Capgemini ...




  Salary and                           Attracting and                    Adjusting the
Operating Costs                        Retaining Staff                     Pyramid
 Like-for-like salaries are lower.      Lifestyle change attracts      Allows us to expand onshore
    Savings of up to 20% are           existing staff and increases      at lower levels to help us
      certainly achievable.                     satisfaction.            adjust our staff “pyramid”
TCO of employees is even lower        Less competition means it is       following several years of
 as impact of cheaper property,        easier to recruit and retain            limited growth.
  and associated services are
            factored in.                            staff.              We can recruit apprentices
                                      There is a bigger pool of high      and junior level grades.
 Per desk cost @Nairn approx
     50% of cost @Woking              quality resources to introduce   Blending highly experienced
                                             into lower grades              resource with closely
                                                                        mentored/supervised junior
Grants can help reduce the start-                                      resource gives high value for
            up costs                                                                money
                                                                                                  | Infrastructure Services
                                                                                                                      3
                                                                                   © 2011 Capgemini. All rights reserved.
UK Delivery Centres

                                                   Focus for UK RDC Growth
Expansion in our Infrastructure Delivery Centres                  Inverness
    •Rotherham                                                                    Nairn
    •Bristol and Swansea
    •Inverness and Nairn
                                                            Glasgow              Edinburgh
Expansion in our FS Delivery Centres:
    •Newcastle                                                                        Newcastle
    •Preston                                                        Preston
                                                                                      Rotherham
    •Liverpool                                                 Liverpool            Leeds
    •Leeds                                                      Manchester
                                                                                 Telford
                                                                         Aston


                                                        Swansea               Swindon

                                                               Bristol                London
                                                                         Woking


                                                                         Worthing



                                                                                                      | Infrastructure Services
                                                                                                          Insert “Title, Author, Date"
                                                                                                                                 4
                                                                                                  © 2012 Capgemini. All rights reserved.
Capgemini’s clients served
                                                                       Newcastle
                                                                            Clients
Preston                                                                 x3 Tier One US
Clients                                                               Investment Banks
X3 Tier One US                                                            x2 Tier One
Investment Banks x1                                                 European Investment
Tier One European                                                            Banks
                                   Inverness
Investment Bank                                      Nairn           x1 major Japanese
                                                                       Investment Bank
                                Glasgow             Edinburgh

                                                        Newcastle
                                      Preston
    Liverpool                     Liverpool
                                                        Rotherham
                                                      Leeds
                                                                                      Leeds
                                   Manchester
      Clients                               Aston
                                                    Telford                            Clients
                            Swansea             Swindon
                                                                                x1 major Japanese
    x3 Tier One US                Bristol
                                            Woking
                                                      London                      Securities House
  Investment Banks                          Worthing
                                                                                   x3 Tier One US
x1 Tier One European                                                             Investment Banks
   Investment Bank                                                             x1 major British Bank
 x1 major Japanese
   Investment Bank                              Toltec and
                                                 Swansea                         Rotherham
                                              Infrastructure
                                            Support for Secure                 Shared Service for
          Inverness
                                               Government                    Infrastructure Support
           & Nairn                                Clients                      for Private Sector
                                                                              Apps Packaging and
       30+ Government,
                                                                                      SOE
      Finance and Private
         sector clients

                                                                                                           | Infrastructure Services
                                                                                                                               5
                                                                                            © 2011 Capgemini. All rights reserved.
Services Available from our Regional UK Delivery Centres
     Service Management               Server Support                      Consultancy                           DBA

   Service Desk                 Unix and Wintel Support            IT Strategy                  Storage & Capacity Planning
   Service Management           Virtualisation                     IT Governance                Installation, Configuration,
   Service Delivery             Storage Management                 Shared Services               Upgrading & Patching
   Level 2&3 Support            Level 4 Support                    IT Service Management        Backup and Recovery
                                                                     Corefirst Installation



    Technical Architecture         End User Computing                 Project Management                     Testing

 Architecture Consultancy       AD Administration                  Programme Office               Regression Testing
 Architecture Build &           Exchange & Lync Admin              Application Transition         Functional Testing
  Implementation                 SharePoint Admin                   Infrastructure Programmes      User Acceptance Testing
 Infrastructure Strategy &      Windows Build Factory              End User Rollouts              Operational Acceptance Testing
  Architecture
                                 Application Packaging Factory      Process Reengineering          Performance Testing
 Functional Design
                                                                     BCP & DR                       Test Management
 Deployment
                                                                                                     Environment Management
 Migrations
                                                                                                     Database Management
 Business Analysis
                                                                                                     Scheduling
 Systems Analysis
 Logical and Physical
  Design/implementation




                                                                                                                         | Infrastructure Services
                                                                                                                                             6
                                                                                                          © 2011 Capgemini. All rights reserved.
Experience of Attracting and Retaining staff

                    •   Offering near shore services for last 16 years
                    •   Particularly strong in Capital Markets, Service Desk & End User Support
Well established    •   Mainframe offerings
                    •   UK Government support from Wales & West




                    • Experienced external candidates with IT Skills from other blue chip firms
 Strong Talent      • Experienced existing workforce in Banking, Finance and Insurance
                    • Award winning Apprentice Programme to train the next generation of
     pool             junior developers and systems administrators




Excellent quality   • Arts, entertainment, outdoor recreation &sports
                    • Favorable cost of living and strong regional identities
     of life        • Significant success in relocating staff seeking change




                                                                                          | Infrastructure Services
                                                                                                              7
                                                                           © 2011 Capgemini. All rights reserved.
Training Programmes & Certifications
                                 Software Developer Advanced Apprenticeship

        Why an Apprenticeship Scheme?                                              The Programme

                                                             Classes of 12 students:
   Good alternative to University
                                                             •       17/18 year olds with an IT interest
   Flexibility to grow your own talent
   Higher retention rate and loyalty                        •       Right attitude and commitment

   Enthusiasm and energy                                    •       Preference to „earn and learn‟
   Value for money                                          2 Year Advanced (IT) Apprenticeship
   UK Government support                                    •       In-House Training – 6 Months „Boot Camp‟
   Investing in development of new UK talent                    •    Technical: Mainframe, Java, BIM, BPM
                                                                 •    IT Lifecycle
   Ensures the supply of the next generation of
                                                                 •    Business and Professional Skills
   senior talent
                                                             •       Learning Partner (QA)
                                                                 •    General IT Training

                                                             •       Work Experience:
                                                                 •    Assigned mentors / projects
                                                                 •    Real work for real clients for real money




                                                                                                               | Infrastructure Services
                                                                                                                                   8
                                                                                                © 2011 Capgemini. All rights reserved.
Support for and Further Benefits of Creating RDCs
                     We have used Regional Grants to support the formation and growth of RDCs



                                               Typically they can cover:
           Training costs & apprenticeships                           Salary costs for a period for associated new role




                                                         Time to agree

                                Our experience is that they can take c6 months to agree




   Formation of RDCs can generate significant regional goodwill and press
                                                                           Opportunities to linking           Increased support from
They attract regional and national   Access to regional recruitment
                                                                      recruitment to redeployment from    Universities and FE to provided
               press                          campaigns
                                                                       other suppliers creates goodwill         focused education

                                                                                                                               | Infrastructure Services
                                                                                                                                                   9
                                                                                                                © 2011 Capgemini. All rights reserved.
Where are we going?



          2012                                2013                                2014

In the last few years nearshoring has emerged as an attractive sourcing strategy for European firms due to
availability, world-class infrastructure, and cultural affinity.

UK FSIs have traditionally been outsourcing most of their work offshore, but nearshore outsourcing to cities in
the UK is expected to grow as firms look to have better control and supervision of their outsourced work.

Several IT-BPO organizations and FSIs are leveraging the Northern UK cities for their nearshore/ back-office
operations

                                                                                          — Market Intelligence



                                                                                                             | Infrastructure Services
                                                                                                                                 10
                                                                                              © 2011 Capgemini. All rights reserved.
More information
                                  Contact
               Andy Bates - Andrew.Bates@capgemini.com
                   http://uk.linkedin.com/in/andybates
                            @CapgeminiUKPR

              About Capgemini

        With more than 115,000 people in       A    deeply    multicultural  organization,
40 countries, Capgemini is one of the          Capgemini has developed its own way of
world's foremost providers of consulting,      working, the Collaborative Business
                                                           TM                           ®
technology and outsourcing services. The       Experience , and draws on Rightshore ,
Group reported 2010 global revenues of         its worldwide delivery model.
EUR 8.7 billion                                Learn more about us at
Together with its clients, Capgemini creates   www.capgemini.com.
and delivers business and technology
solutions that fit their needs and drive the             ®
                                               Rightshore is a trademark belonging to Capgemini
results they want.




                                                                                                      | Infrastructure Services
                                                                                                          Insert “Title, Author, Date"
                                                                                                  © 2012 Capgemini. All rights reserved.   11
www.capgemini.com



The information contained in this presentation is proprietary. ©2012 Capgemini. All rights reserved

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Capgemini Nearshoring

  • 1. Playing the home advantage UK Nearshore Delivery Centers Andy Bates VP, Infrastructure Transformation Services March 2011
  • 2. Why have UK Nearshore? For our customers … Data Privacy Location Staff Retention EU Data Protection holds UK UK location means teams can Gives clients an extended companies accountable for interact 8 hours a day resource pool customer data stored with Close to International airports Staff retention is a major vendors (Directive 95/46/EC); Quick and easy access to strength of our UK locations. keeping data onshore is becoming increasingly important Motorway and Rail links to UK Nearshore Delivery Centre to UK/EU corporations London and other major cities attrition rate for 2011 currently Allows staff to be deployed to stands at 10.7% customer sites where required Benefits of low attrition are: knowledge retention, continuity, increased productivity | Infrastructure Services 2 © 2011 Capgemini. All rights reserved.
  • 3. For Capgemini ... Salary and Attracting and Adjusting the Operating Costs Retaining Staff Pyramid Like-for-like salaries are lower. Lifestyle change attracts Allows us to expand onshore Savings of up to 20% are existing staff and increases at lower levels to help us certainly achievable. satisfaction. adjust our staff “pyramid” TCO of employees is even lower Less competition means it is following several years of as impact of cheaper property, easier to recruit and retain limited growth. and associated services are factored in. staff. We can recruit apprentices There is a bigger pool of high and junior level grades. Per desk cost @Nairn approx 50% of cost @Woking quality resources to introduce Blending highly experienced into lower grades resource with closely mentored/supervised junior Grants can help reduce the start- resource gives high value for up costs money | Infrastructure Services 3 © 2011 Capgemini. All rights reserved.
  • 4. UK Delivery Centres Focus for UK RDC Growth Expansion in our Infrastructure Delivery Centres Inverness •Rotherham Nairn •Bristol and Swansea •Inverness and Nairn Glasgow Edinburgh Expansion in our FS Delivery Centres: •Newcastle Newcastle •Preston Preston Rotherham •Liverpool Liverpool Leeds •Leeds Manchester Telford Aston Swansea Swindon Bristol London Woking Worthing | Infrastructure Services Insert “Title, Author, Date" 4 © 2012 Capgemini. All rights reserved.
  • 5. Capgemini’s clients served Newcastle Clients Preston x3 Tier One US Clients Investment Banks X3 Tier One US x2 Tier One Investment Banks x1 European Investment Tier One European Banks Inverness Investment Bank Nairn x1 major Japanese Investment Bank Glasgow Edinburgh Newcastle Preston Liverpool Liverpool Rotherham Leeds Leeds Manchester Clients Aston Telford Clients Swansea Swindon x1 major Japanese x3 Tier One US Bristol Woking London Securities House Investment Banks Worthing x3 Tier One US x1 Tier One European Investment Banks Investment Bank x1 major British Bank x1 major Japanese Investment Bank Toltec and Swansea Rotherham Infrastructure Support for Secure Shared Service for Inverness Government Infrastructure Support & Nairn Clients for Private Sector Apps Packaging and 30+ Government, SOE Finance and Private sector clients | Infrastructure Services 5 © 2011 Capgemini. All rights reserved.
  • 6. Services Available from our Regional UK Delivery Centres Service Management Server Support Consultancy DBA  Service Desk  Unix and Wintel Support  IT Strategy  Storage & Capacity Planning  Service Management  Virtualisation  IT Governance  Installation, Configuration,  Service Delivery  Storage Management  Shared Services Upgrading & Patching  Level 2&3 Support  Level 4 Support  IT Service Management  Backup and Recovery  Corefirst Installation Technical Architecture End User Computing Project Management Testing  Architecture Consultancy  AD Administration  Programme Office  Regression Testing  Architecture Build &  Exchange & Lync Admin  Application Transition  Functional Testing Implementation  SharePoint Admin  Infrastructure Programmes  User Acceptance Testing  Infrastructure Strategy &  Windows Build Factory  End User Rollouts  Operational Acceptance Testing Architecture  Application Packaging Factory  Process Reengineering  Performance Testing  Functional Design  BCP & DR  Test Management  Deployment  Environment Management  Migrations  Database Management  Business Analysis  Scheduling  Systems Analysis  Logical and Physical Design/implementation | Infrastructure Services 6 © 2011 Capgemini. All rights reserved.
  • 7. Experience of Attracting and Retaining staff • Offering near shore services for last 16 years • Particularly strong in Capital Markets, Service Desk & End User Support Well established • Mainframe offerings • UK Government support from Wales & West • Experienced external candidates with IT Skills from other blue chip firms Strong Talent • Experienced existing workforce in Banking, Finance and Insurance • Award winning Apprentice Programme to train the next generation of pool junior developers and systems administrators Excellent quality • Arts, entertainment, outdoor recreation &sports • Favorable cost of living and strong regional identities of life • Significant success in relocating staff seeking change | Infrastructure Services 7 © 2011 Capgemini. All rights reserved.
  • 8. Training Programmes & Certifications Software Developer Advanced Apprenticeship Why an Apprenticeship Scheme? The Programme Classes of 12 students:  Good alternative to University • 17/18 year olds with an IT interest  Flexibility to grow your own talent  Higher retention rate and loyalty • Right attitude and commitment  Enthusiasm and energy • Preference to „earn and learn‟  Value for money 2 Year Advanced (IT) Apprenticeship  UK Government support • In-House Training – 6 Months „Boot Camp‟  Investing in development of new UK talent • Technical: Mainframe, Java, BIM, BPM • IT Lifecycle  Ensures the supply of the next generation of • Business and Professional Skills  senior talent • Learning Partner (QA) • General IT Training • Work Experience: • Assigned mentors / projects • Real work for real clients for real money | Infrastructure Services 8 © 2011 Capgemini. All rights reserved.
  • 9. Support for and Further Benefits of Creating RDCs We have used Regional Grants to support the formation and growth of RDCs Typically they can cover: Training costs & apprenticeships Salary costs for a period for associated new role Time to agree Our experience is that they can take c6 months to agree Formation of RDCs can generate significant regional goodwill and press Opportunities to linking Increased support from They attract regional and national Access to regional recruitment recruitment to redeployment from Universities and FE to provided press campaigns other suppliers creates goodwill focused education | Infrastructure Services 9 © 2011 Capgemini. All rights reserved.
  • 10. Where are we going? 2012 2013 2014 In the last few years nearshoring has emerged as an attractive sourcing strategy for European firms due to availability, world-class infrastructure, and cultural affinity. UK FSIs have traditionally been outsourcing most of their work offshore, but nearshore outsourcing to cities in the UK is expected to grow as firms look to have better control and supervision of their outsourced work. Several IT-BPO organizations and FSIs are leveraging the Northern UK cities for their nearshore/ back-office operations — Market Intelligence | Infrastructure Services 10 © 2011 Capgemini. All rights reserved.
  • 11. More information Contact Andy Bates - Andrew.Bates@capgemini.com http://uk.linkedin.com/in/andybates @CapgeminiUKPR About Capgemini With more than 115,000 people in A deeply multicultural organization, 40 countries, Capgemini is one of the Capgemini has developed its own way of world's foremost providers of consulting, working, the Collaborative Business TM ® technology and outsourcing services. The Experience , and draws on Rightshore , Group reported 2010 global revenues of its worldwide delivery model. EUR 8.7 billion Learn more about us at Together with its clients, Capgemini creates www.capgemini.com. and delivers business and technology solutions that fit their needs and drive the ® Rightshore is a trademark belonging to Capgemini results they want. | Infrastructure Services Insert “Title, Author, Date" © 2012 Capgemini. All rights reserved. 11
  • 12. www.capgemini.com The information contained in this presentation is proprietary. ©2012 Capgemini. All rights reserved