Serco Group plc · LSE:SRP
Serco — Investor Day (December 2012)
125 slides from Serco's investor day presentation, Dec 11, 2012
Slide 1: Serco Global Services – outlining the strong opportunities for our BPO division
Serco Global Services – outlining the strong opportunities for our BPO division Serco Group plc Investor and analyst event 11 December 2012
Slide 2: Agenda
Agenda 2.30pm Serco and BPO: Andrew Jenner Global Services overview: Susir Kumar and Tom Riall Regional CEO introductions: Steve Sieke (Americas), Bhupender Singh (AMEAA), David Poole (UK&E) UK&E Private Sector: Jerry Benson (MD, UK&E Private Sector) UK&E Public Sector: Jonathan Prew (MD, UK&E Publi
Slide 3: Serco and BPO
Serco and BPO Andrew Jenner Finance Director Serco Group plc
Slide 4: Serco and BPO – the messages of today’s presentation
Serco and BPO – the messages of today’s presentation The BPO market is large and growing Serco’s growth in the BPO market is a natural evolution of our strategy Providing middle and back office services meets the increasing needs of customers We are building a global BPO business that is tru
Slide 5: Strategic rationale for BPO expansion
Strategic rationale for BPO expansion Builds a balanced portfolio across markets, sectors and service lines Fast growth, higher margin markets enhance Group outlook Addresses customer demand for integrated solutions (frontline + BPO divisions bidding and working together) Scale and depth red
Slide 6: Timeline of developing our global BPO business
Timeline of developing our global BPO business Anglia Support Partnership Shop Direct Peterborough AEGON Enfield Council City Council easyJet Peterborough IT Services strategic City Council partnership Centrica Derby Council ICT Hertfordshire ICT County Council $1bn+ Southwark
Slide 7: Our BPO operating structure
Our BPO operating structure Go To Middle and back office to the Middle and back office to the public sector as part of Market private and public sector integrated solutions with frontline divisions Global Services Americas AMEAA UK&E UK&E AMEAA Americas Global Offshore Regional / Regional / Global S
Slide 8: Serco Global Services is delivering
Serco Global Services is delivering Creation of a world class BPO business 2012 revenues will be approximately $1.2bn: now ranked amongst the top BPO suppliers globally Excellent 2012 expected revenue growth: c40% total; c10% organic; c30% underlying* Strong progress in improving margins Cle
Slide 9: Serco Global Services overview – strategy and positioning
Serco Global Services overview – strategy and positioning Susir Kumar Executive Chairman Serco Global Services
Slide 10: Serco Global Services – capabilities
Serco Global Services – capabilities Business Process Outsourcing (BPO) Services Consulting Technology Contact Centre Operational Strategy & Transformation Knowledge Management Banking, Customer service Operating strategy, operational reviews and Designing and implementing Financial Sales be
Slide 11: Serco Global Services – fast facts
Serco Global Services – fast facts $1bn+ Global Business Process Outsourcing (BPO) business Excellent 2012 expected revenue growth: c40% total; c10% organic; c30% underlying 50,000+ employees servicing 250+ clients 100 delivery centres across 12 countries – UK, India, Australia, USA, Poland,
Slide 12: Global BPO market is large and growing
Global BPO market is large and growing Global BPO - geographic split (2012) Global BPO - vertical split (2012) US$bn 2012 CAGR 4 BFSI United States 158 4.9% 8% % Public Sector Central & Latin America 19 18.1% 24% 9% Manufacturing UK & Europe 106 8.2% Telecom Middle East & Africa 6 16.3% 12% Others I
Slide 13: Competitive landscape and development
Competitive landscape and development Competitive landscape Competitive type Key players Typical profile Range of Services High Global IT-BPO Accenture IBM Large global players offering Service Capgemini HP multiple services Providers Genpact TCS Strong IT-BPO capabilities Fujitsu
Slide 14: Serco Global Services - competitively advantaged in an attractive market
Serco Global Services - competitively advantaged in an attractive market Scale across onshore, nearshore and offshore Global customer reach Strong brand Capabilities across front, middle and back office Serving both private and public sectors Efficient cost structure Customer-centric s
Slide 15: Serco Global Services strategy
Serco Global Services strategy Be the BPO supplier of choice in its chosen verticals and markets as an end-to-end provider of middle office and back office services Deliver balanced profile across public/private and onshore/nearshore/offshore Position portfolio to high growth market segments
Slide 16: Serco Global Services business profile
Serco Global Services business profile Estimated revenue mix for 2012 Geographic Profile Sector Profile Delivery Profile Customer Market Profile UK & Europe Public Onshore Developed 15% Americas Private 18% Nearshore 15% Markets AMEAA 1% Offshore Fast & 8% Emerging 77% 49% 51% Markets 85% 81% Medium
Slide 17: Portfolio transformation
Portfolio transformation Current Serco Global Services portfolio Target Serco Global Services portfolio Tier 1 Tier 1 India Relative market position Relative market position Australia India Australia UK Vertex UK Private UK Local UK Local Government UK BFS Government US Healthcare UK TLC US TTH UK P
Slide 18: Regional market opportunity
Regional market opportunity Market size Regions & CAGR Market opportunity Serco’s position UK & $106bn UK ($20bn; CAGR 7%) is the largest BPO market in Europe, followed by Germany & France ($18bn each) Tier 1 Status in CRM Deep domain expertise in BFSI Europe c.8% BFSI ($23bn, CAGR 7%) is th
Slide 19: Serco Global Services focus areas
Serco Global Services focus areas 2012e Focus Focus Focus Strategic delivery Regions revenue mix markets verticals horizontals locations c77% UK Public Sector CRM UK UK & BFSI F&A India Europe TTH Procurement Poland Telecom HR Philippines Retail Analytics South Africa
Slide 20: Summary – strategy and positioning
Summary – strategy and positioning Breadth and depth of capabilities that are well invested, innovative and often market leading End-to-end, integrated offering across frontline services through to middle and back office Deep domain knowledge and expertise in our focused vertical and horizonta
Slide 21: Serco Global Services overview – Operations Introduction
Serco Global Services overview – Operations Introduction Tom Riall Divisional CEO Serco Global Services
Slide 22: Our BPO operating structure
Our BPO operating structure Go To Middle and back office to the Middle and back office to the public sector as part of Market private and public sector integrated solutions with frontline divisions Global Services Americas AMEAA UK&E UK&E AMEAA Americas Global Offshore Regional / Regional / Global S
Slide 23: Serco Global Services key achievements to date
Serco Global Services key achievements to date Won contracts worth >£1bn TCV across 23 new clients Wins & Rebids Secured key rebids – National Rail Enquiries in UK, Australian Tax Office, Vodafone in India Integration / Serco BPO operations fully integrated, with acquisitions performing to pla
Slide 24: Serco Global Services key wins in 2012
Serco Global Services key wins in 2012 Total Total contract value contract value Sales, services and Customer service, sales, business intelligence £430m payments, emails £55m Customer contact and Customer service, sales, £170m escalations and refunds £18m support services Full range of support Sale
Slide 25: Serco Global Services integration of capabilities
Serco Global Services integration of capabilities Serco Integration wins Brand recognition Financial strength and expertise Large scale TUPE capability Industry and customer knowledge Domain Serco Global Services Knowledge UK onshore delivery Scale in offshore delivery Leading voice services Middle
Slide 26: Serco’s global delivery capability
Serco’s global delivery capability Global footprint 42 centres in India, 40 in UK, 7 in Australia, 2 in USA & Poland,1 each in Germany, United Kingdom 40 Centres Poland 2 Centres Guatemala, Philippines, North America 2 Centres Germany Mauritius, UAE, South Africa & 1 Centre Singapore Dubai 1 Centr
Slide 27: Serco Global Services industry recognition
Serco Global Services industry recognition Ranked 2nd - Best CEO of the Year BPO Entrepreneur of Best HR Practices Award Award for Leverage IT for Operational Excellence & Career Growth Practices Susir Kumar the Year - Susir Kumar in Reward & Business Performance Quality in BPO Industry Recognition
Slide 28: Serco Global Services sector summary
Serco Global Services sector summary We have more than 50,000 employees delivering world class services to 250 clients from 100 delivery centres in 12 countries, handling 600m calls and 60m back office transactions annually But what can Serco Global Services do for John? 28
Slide 29: Human Resource services
Human Resource services Job application Gets his salary We process 80,000 We process 600,000 résumés annually payrolls annually John Smith You’re Hired John needs a safe (Accountant) place for his money Serco Global Services is currently providing Human Resource services for 11 major clients 29
Slide 30: Banking & Insurance
Banking & Insurance Banking Insurance We handle 14m calls We generate outbound and 26m banking insurance sales worth transactions £1.2m per month John needs a John gets more than He also bank account a bank account buys insurance Over 9,500 employees delivering services to 35 major BFSI clients 30
Slide 31: Finance & Accounting
Finance & Accounting F&A and back office support Procure to Pay, Accounting, Decision Risk Mgmt, Travel & Order to Cash closing & support & Payroll Expense reporting and F&A 62k ledger Payroll for 75k travel & 15m invoices 3,000 transactions 130k staff expense claims £1.4bn of management 12k 3,800 k
Slide 32: Telecom and Utility
Telecom and Utility Telecom Utilities Around 2,500 We manage 30m employees work in the calls monthly for Telcos utilities vertical John wants to and buys himself and also uses it to stay in touch a new iPhone pay his utility bills 16,000 employees provide services to 14 major Telecom clients across
Slide 33: Travel & Hospitality
Travel & Hospitality Travel & Transportation Hospitality We handle 12m calls We service 4m and 7m data Customers and fulfilled transactions for Travel 1m bookings & Transportation John likes to and feels he’s due a his travel company travel well deserved holiday fix an adventure break 3,500 employee
Slide 34: Healthcare
Healthcare Health insurance processing Customer Finance Transaction Billing & Interaction and Operations Processing Collections Support but John has Luckily for John he and makes a an accident has health insurance complete recovery Over 1,500 employees support Healthcare clients manage their patient
Slide 35: Retail
Retail Retail Shopping Online Shopping We process payments We process 1m retail worth £3.5bn invoices monthly annually So John takes and when he’s tired and only stops when himself shopping he carries on online the card is maxed 3,500 employees across 23 major clients in the retail space globally 35
Slide 36: Credit Bureau & Mortgage
Credit Bureau & Mortgage Credit Check Mortgage We handle 15m We process £600m transactions and calls worth of mortgages per for Credit Bureaux month John wants to buy a new and needs a credit rating John feels increased home for all his new gadgets for his new mortgage pressure on his finances Over
Slide 37: Collection & Fraud Management
Collection & Fraud Management Collections Fraud Detection we handle 400,000 Advances Fraud team first party collection saves over £1m per connects a month month Is John in Does he consider credit card fraud or What becomes serious debt ? something else to pay off his debt ? of John? Over 9,500 emplo
Slide 38: Serco Global Services sector summary
Serco Global Services sector summary We have more than 50,000 employees delivering world class services to 250 clients from 100 delivery centres in 12 countries, handling 600m calls and 60m back office transactions annually Travel, Transport & Hospitality Public Sector Around 3,500 employees across
Slide 39: Serco Global Services management structure
Serco Global Services management structure Group Chief Executive Chris Hyman Divisional CEO Divisional Executive Chairman Tom Riall Susir Kumar Corporate Support Business Improvement Strategy, Mergers & Acquisitions, Regional CEOs (Internal Transformation, Group Process Excellence) New Markets and R
Slide 40: Americas – Factsheet
Americas – Factsheet Overview Customer profile Current position Fargo Campbellsville Guatemala 28,000 sq ft 18,000 sq ft 17,000 sq ft 287 Seats 180 Seats 360 Seats 380 FTEs 350 FTEs 270 FTEs Orbitz Corporate US Air Cargo Greyhound Orbitz Leisure Pegasus Orbitz Sales A
Slide 41: Americas – developing our market presence
Americas – developing our market presence Strategic actions: Building on strengths in TTH to develop compelling services for small to medium size hotel groups, and grow into related sectors such as Logistics Strengthen end-to-end capabilities in Utilities and Healthcare Leverage dominant marke
Slide 42: AMEAA – Factsheet
AMEAA – Factsheet Overview Customer profile Current position Extensive service delivery footprint with 42 centres in India, 7 in Australia, 1 each in Philippines, Mauritius, UAE and Singapore 18,000 seats and 32,000 employees – c30% of Serco Group’s headcount Focused on BFSI, Telecom, TTH and
Slide 43: AMEAA – capturing high growth opportunities
AMEAA – capturing high growth opportunities Strategic actions: Leverage dominant position in India and continue to add marquee domestic and international clients Position as experts in captive business transformation for large public and private sector organisations Develop Middle East, Africa
Slide 44: UK & Europe – Factsheet
UK & Europe – Factsheet Overview Customer profile Current position 10,000 employees onshore across 40 delivery centres and 10,000 off and nearshore 2,000 employees transferred to Serco on the acquisition of Vertex delivering additional customer contact services in the public sector Provide the
Slide 45: UK & Europe – leveraging our strong market position
UK & Europe – leveraging our strong market position Strategic actions: Leverage strong client relationships and middle and back office capabilities to deepen our market position both in the private sector and public sectors Exploit joint opportunities with the UK&E frontline division Capitalis
Slide 46: Serco Global Services – UK&E Private Sector
Serco Global Services – UK&E Private Sector Jerry Benson Managing Director Serco Global Services, UK&E Private Sector
Slide 47: UK & Europe private sector – Serco Global Services market position
UK & Europe private sector – Serco Global Services market position Attractive markets with excellent opportunities across our chosen sectors – Retail – Telecommunications/Media – Banking, Financial Services, Insurance (BFSI) – Transport/Travel/Hospitality Differentiated proposition, derived from
Slide 48: Our private sector BPO journey
Our private sector BPO journey ICT services for Cross selling into First BPO First Strategic acquisitions CRM growth BPO major blue chip major blue chip acquisition productisation to increase scale and scale leader clients clients and capability 2005 2006 2008 2010 2011 2012 2013 Acquisition Int
Slide 49: Combined capabilities driving growth
Combined capabilities driving growth Serco The Listening Company Intelenet Assured transition Blue chip customers in Strong processes in a chosen sectors regulated environment Proven transformation Multi-channel capability Metrics driven approach Citizen centric approach to improve qua
Slide 50: Key wins
Key wins Key wins 2012 Sales, services and business intelligence Customer services, sales and retention via multiple channels Contact centre services, payments and order processing, collections Customer service, sales, escalations and refunds Sales and customer services Customer services, sales, F&A
Slide 51: Customer portfolio
Customer portfolio We serve a growing range of Retail customers across our markets with increasing contract size and scale Travel 7,200 staff onshore, nearshore and offshore, dealing with over BFSI 100m customer interactions p.a. Typically delivering 30% cost savings, as well as sales and Tele
Slide 52: Delivery centres
Delivery centres Poland Krakow South Africa Cape Town Germany Berlin India Mumbai, Delhi, Chennai Location agnostic business model meeting customer requirement to benefit from blend of onshore and offshore 52
Slide 53: Capability matrix
Capability matrix Transactional Voice / Web Operations Non-Voice Operations Services Customer Customer Risk Customer Back Middle F&A Acquisition Maintenance Management Retention Office Office Warehousing & HR Tele / Web Customer Early Stage Rebates/ Order Underwriting Inventory Full
Slide 54: A multi-channel, personalised future
A multi-channel, personalised future A leading position in creating a customer-centric digital future 54
Slide 55: Economic environment driving transformational deals
Economic environment driving transformational deals Market Drivers Market Needs Market Opportunity Customers seeking Cost base reduction A reduction in operating support to: costs up to 40% End-to-end Maintain profitability accountability Full digital enablement in challenging economic C
Slide 56: Focus areas
Focus areas Targeting 4 market verticals and 5 horizontals This private sector UK & Europe BPO market is estimated to be worth approximately $48bn, of which around half is UK-specific These areas are forecasted to grow at a 5-9% CAGR BFSI Telecom Retail TTH 9,300 8,000 6,000 2,000 CRM 7.7% 6.8
Slide 57: Market overview – Banking, Financial Services, Insurance
Market overview – Banking, Financial Services, Insurance Market developments Our approach Increasing competition and Transforming processes to deliver regulation continuous service improvement Rise of the multi-channel Mutually beneficial new commercial consumer models Onshore, offshore, n
Slide 58: Aegon UK - No. 4 UK Life and Pensions Business
Aegon UK - No. 4 UK Life and Pensions Business Client Overview Case Snapshot Processes Handled Benefits International life assurance, The UK life and pensions Serco operates the end-to- Supporting cost savings and pensions and asset market is highly competitive, end insurance processing volu
Slide 59: Market overview – Travel, Transport and Hospitality
Market overview – Travel, Transport and Hospitality Market developments Our approach Continued pressure on household Transforming processes to deliver budgets continuous service improvement Cautious corporate discretionary Onshore, offshore, nearshore locations spending End-to-end integrat
Slide 60: easyJet – major European airline
easyJet – major European airline Client Overview Case Snapshot Processes Handled Benefits easyJet is the UK’s largest easyJet’s contract with their Serco provides inbound and Recruited over 600 staff in a and Europe’s 4th largest existing Customer Contact outbound contacts via 3-month period
Slide 61: Market overview – Telecom & Media
Market overview – Telecom & Media Market developments Our approach Market maturing in more developed Transforming processes for continuous European economies service improvement Pressure to improve margins increases Onshore, offshore, nearshore locations potential for outsourcing End-to-en
Slide 62: Sky Deutschland - fastest growing pay TV
Sky Deutschland - fastest growing pay TV Client Overview Case Snapshot Processes Handled Benefits Sky Deutschland and Sky Key deliverables for Sky are Serco have opened a new Under an innovative model Austria operate Pay TV to invest in products and purpose built contact centre the Berlin ce
Slide 63: Market overview – Retail
Market overview – Retail Market developments Our approach Continued pressure on household Transforming processes for continuous budgets service improvement Demise of high street versus growth of Onshore, offshore, nearshore locations online channels End-to-end integrated front, middle and
Slide 64: fgh - UK arm of the world’s largest distance selling organisation
fgh - UK arm of the world’s largest distance selling organisation Client Overview Case Snapshot Processes Handled Benefits Freemans and Grattan were Retailers are experiencing Serco operates the FGH Within first 3 months we acquired in 1999 by Otto dramatic changes in contact centre in Sheff
Slide 65: Summary
Summary Challenging economic environment and changing consumer behaviour are driving our customers to seek transformational solutions to deliver their business objectives Strong organic growth and significant new business wins across all our target sectors including largest BPO deal and first mo
Slide 66: Video - what do our customers think?
Video - what do our customers think? Andrew Langridge Head of Vendor Management Team, Freeman Grattan Holdings Keith Basnett Group Chief Operating Officer, Shop Direct Group David Beattie Customer Services Director, Aegon UK Tommy Young Chief Operating Officer, Aegon UK Jim Milby Global Operations O
Slide 67: Serco Global Services – UK&E Public Sector
Serco Global Services – UK&E Public Sector Jonathan Prew Managing Director Serco Global Services, UK&E Public Sector
Slide 68: UK Public Sector – Serco Global Services market position
UK Public Sector – Serco Global Services market position Attractive market with Local and Central Government and Health segments offering excellent growth opportunities We have developed and acquired a strong set of capabilities to meet market requirements – end-to-end transaction processing – c
Slide 69: Our public sector BPO journey
Our public sector BPO journey PCC revs & bens, Entry into NHS First LG contact customer contact, shared services First strategic Incremental centre – moving procurement, council Entry into Central partnership partnering into new areas wide transformation Government BPO 2008 2009 2010 2011 2012 2013
Slide 70: Capabilities
Capabilities Public Sector BPO Health Local Government Central Government Customer Services (contact services, complex case management, adult social care) Transactional Services (HR & Payroll, Finance, Traded Services) Revenues and Benefits (collection and benefits processing) ICT (technical and ope
Slide 71: Customer portfolio
Customer portfolio Broad customer base including Local Authorities, Central Government Departments and their Agencies as well as NHS Trusts Local Government 5,500 staff delivering services to more than 10m citizens Guaranteeing over £100m savings to our public sector customers Central Governme
Slide 72: Delivery centres
Delivery centres Delivery centres matching customer requirements 72
Slide 73: Vertex and central government
Vertex and central government Complex case management of Inbound call handling for Customer contact services for Telephone and email enquiry non-automated child maintenance Jobseeker Direct, National Defra Helpline, Poultry Register, service providing information on a payments Insurance Number Servi
Slide 74: Economic and political environment
Economic and political environment The budget deficit has worsened. . . . . . while socioeconomic problems still persist 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 0 1 million 58% 1% 20 Original Record fall in Young people GDP growth Budget Deficit (£billions) NHS estimate out of work in last q
Slide 75: Market and customer response
Market and customer response Market Drivers Market Developments Customer Requirements Rising cost of Acute financial Highly cost conscious welfare and pressures Focus on customer healthcare Personalisation – management Wider approach to putting the individual capabilities and transformat
Slide 76: Large and growing market
Large and growing market Total Government Expenditure Spending on Public Services Spending on Service Delivery* 9% 6% 4% 14% 12% Debt Interest Service Delivery 21% Front & Middle Office 15% Local Government NHS, Nurses & GPs Back Office Public Services 12% Schools & Teachers £691bn Benefits & Pensio
Slide 77: Government service delivery capabilities
Government service delivery capabilities Domain Customer Contact Case Management Revenue Management Purchasing Back Office Estimated Spend in Government £8bn £14bn £13bn £1bn £10bn Capability Inbound Outbound Applications Claims Certifications Grants Payments Goods Customer Customer Processing Proce
Slide 78: Market overview – Local Government
Market overview – Local Government Market developments Our approach Funding cuts and restrictions on Payment by Results reverse raising Joint Risk Taking Shifting social demographic Standardisation & channel optimisation Changing citizen behaviours Focused on customer management Local
Slide 79: Case Study – Hertfordshire County Council Strategic Partnership
Case Study – Hertfordshire County Council Strategic Partnership Contract factsheet Started April 2011. TCV £200m. Maximum 10 year term Guaranteed savings of at least £25m Customer Service Centre, ICT, Facilities Management, Transactional Finance, HR & Payroll, Occupational Health Includes fr
Slide 80: Market overview– Central Government
Market overview– Central Government Market developments Our approach Addressing the deficit and departmental Payment by Results cuts Joint Risk Taking Shifting social demographic Standardisation and channel optimisation Changing citizen behaviours Focused on complex case management and
Slide 81: Case Study – Job Centre Plus
Case Study – Job Centre Plus Contract factsheet Started February 2009. Initial 4 year term, recently extended Managing 90,000 enquiries every week for JobSeeker Direct (JSD) supporting job seekers to access the right opportunities; National Benefit Fraud Hotline (NBFH) – helpline for whistleblow
Slide 82: Market overview – Health
Market overview – Health Market developments Our approach £20bn productivity saving to be Specialist shared services centre (ASP) delivered Joint Risk Taking Steady rise in the incidence of chronic Process Standardisation diseases Integrated solutions with our frontline Ageing populati
Slide 83: Health Case Study – Anglia Support Partnership (ASP)
Health Case Study – Anglia Support Partnership (ASP) Contract factsheet Started April 2012. £120m TCV over initial 4 year term Guaranteed savings to ASP customers of 20% Operational and specialist IT, finance operations, employment services, contracts management, procurement, primary care supp
Slide 84: Summary
Summary This is an attractive market offering significant growth opportunities – cost reduction and reforming public service delivery will continue to be a key issue for the next 10 years Only 6% of Public Service Delivery spend is currently outsourced – an extra 2% would increase the opportunit
Slide 85: Video - what do our customers think?
Video - what do our customers think? Matthew Lee Deputy Leader, Peterborough City Council Graham Farrant Chief Executive, Thurrock Council Sarah Pickup Director of Health and Community Services, Hertfordshire County Council Ashish Dasgupta Non Executive Director, Cambridgeshire and Peterborough NHS
Slide 86: Serco Global Services – Offshore BPO Delivery
Serco Global Services – Offshore BPO Delivery Chandramouli Baskaran Chief Executive Officer Serco Global Services - Offshore Operations
Slide 87: Offshore BPO delivery
Offshore BPO delivery Offshoring currently accounts for over 20% of the Global BPO market and is the fastest growing delivery channel with an expected CAGR of 15-20% Serco Global Services has a uniquely positioned model that is location agnostic, resulting in strength across onshore, nearshore a
Slide 88: Offshore BPO market and Serco’s positioning
Offshore BPO market and Serco’s positioning Global BPO - delivery split (2006-15) Offshore BPO - delivery location mix 15% 19% 9% 55% 31% Offshore 15-20% India 9% Global BPO market Philippines CAGR (2010-15) $385bn 11% 37% China 85% 81% 69% Onshore <5% Mexico Brazil 16% Malaysia 2006 2010 2015 18% 1
Slide 89: Offshore capabilities blueprint
Offshore capabilities blueprint Key verticals Banking, Financial Travel, Transportation Healthcare Telecom Retail Utilities Services & Insurance & Hospitality Key service lines Customer Lifecycle Management Sales & Service Data Management Finance & Accounting Business Intelligence Integrated Service
Slide 90: Increasing service complexity
Increasing service complexity Recall Campaign Management Retention & Resolution Desk Sales Through Service Refund Management Customer & Market Surveys Financially empowered service Collection/ Debt Recovery transactions Lead Generation Complaint , Escalation, Customer regeneratio
Slide 91: Offshore decision criteria and delivery approach
Offshore decision criteria and delivery approach Client Decision Criteria Robust solution Review rigor Robust transition Capabilities Governance Process improvement Knowledge transfer Flexibility Security Value added services Partnership approach Culture fit Business Contin
Slide 92: People management
People management Key success factors Differentiators Sourcing Requirement gathering Job profile mapping Adopted common European framework Job profile mapping & internal job posting Pipeline of graduates Sourcing arena to resource capability mapping Hiring Résumé screening Competency
Slide 93: Delivery impacts
Delivery impacts Commercial For a UK Bank, delivered sales worth £10m p.a. at 10% of the previous cost Implications Reduced operational loss for Retail bank from £500,000 to under £15,000 p.a. Recovered Real estate dues over £20m in 6 months Customer Reduced customer complaints for a US electronic r
Slide 94: Case study – National Rail Enquiries
Case study – National Rail Enquiries Contract factsheet Started June 2004. Initial 8 year term. Renewed contract for 3 years starting 2013, TCV £7m Initially supporting only 12% of volumes Currently handling 100% of NRE’s inbound volumes (approximately 5m calls per annum) with over 240 FTEs ac
Slide 95: Case study – Apria Healthcare
Case study – Apria Healthcare Contract factsheet Started March 2009, initial 7 year term TCV £56m Supporting client’s order to cash processes i.e. inbound order processing, claims management, collections and payment processing with over 1,000 FTEs across Mumbai and Delhi centres Handling over
Slide 96: Summary
Summary Offshoring is the fastest growing delivery channel of the BPO market Serco Global Services has a uniquely positioned location agnostic model Significant offshore scale advantage already established 11 multi-language centres servicing over 30 clients across a broad spectrum of vertica
Slide 97: Shop Direct Group - BPO strategic partnership
Shop Direct Group - BPO strategic partnership David Rumble Serco Global Services Retail Partnership Director
Slide 98: Shop Direct Group (SDG)
Shop Direct Group (SDG) Client Overview Case Snapshot Processes Handled Outcomes UK’s leading online and 10 year partnership, Sales – reactive and Increase sales revenue home shopping retailer £430m commitment proactive multi-channel through digital services Annual turnover of Driven by
Slide 99: Our journey with SDG
Our journey with SDG Sep 10 - March 11 Jul 11 - Apr 12 Jul 12 - Jun 22 SDG contracted to The SDG explore the potential SDG contracted to Serco Listening Company for an to outsource significantly with a £430m 10 year initial 3 year agreement more services agreement Component services for Ei
Slide 100: Our SDG partnership approach
Our SDG partnership approach Service Assurance Transformation Relationships A people-focused approach Reduced customer effort People valued and Protect and improve sales through new channels and rewarding right behaviour new technology performance Focus on evidence-based Improved custome
Slide 101: Our SDG transformation timeline
Our SDG transformation timeline phase zero phase one phase two phase three Apr - Jul 2012 Jul - Dec 2012 Jan - Dec 2013 Jan - Jul 2014 Support Team Transition services to Multi-skilling across mobilised Serco in time for peak brands implementation People Recruitment and Stabilise and assur
Slide 102: Innovation in retail
Innovation in retail People Workforce management on smart-phone Process Use of epiCentre – light CRM tool Technology Intelligent engagement – web-chat 102
Slide 103: Innovation in retail
Innovation in retail People Workforce management on smart-phone 103
Slide 104: Innovation in retail
Innovation in retail Process Use of epiCentre – light CRM tool Automation between client systems to Increase efficiency and reduce handle time Client Sales Client CRM Management Client Client Billing Knowledge Base Other Client apps Client C-Sat Survey 104
Slide 105: Innovation in retail
Innovation in retail Technology Intelligent engagement – web-chat 105
Slide 106: A platform for future success
A platform for future success The Serco SDG contract is highly referenceable in the retail market as well as other private sector verticals Demonstrates that our deep service ethos can be delivered in a digital sales and service environment Firmly establishes our transformation credentials in
Slide 107: Barclays - BPO strategic partnership
Barclays - BPO strategic partnership Rupa Nathani Head of Barclays Operations in Chennai
Slide 108: Barclays partnership - background and growth
Barclays partnership - background and growth 4,500 People (English Language) Delivery locations Geography Mumbai Barclays UK 51 Processes (Voice & Data) Chennai Barclays India 41m Transaction volumes Manila Barclays UAE (over 16m calls handled and 25m transactions processed) Dubai Ba
Slide 109: Relationship evolution – from offshore cost arbitrage to strategic partner
Relationship evolution – from offshore cost arbitrage to strategic partner Dec 2004 June 2007 Cost + Speed Cost arbitrage of Execution Original drivers Offshore delivery capability developed to give inherent business continuity Speed to market July 2007 Dec 2011 Efficiency & Increased share
Slide 110: Serco delivery impacts
Serco delivery impacts Disbursement of loans from 24 hours to 3.5 hours Customer first Customers banking accounts opened within 7 hours of documentation receipt Processed loans worth more than £7.1bn with zero customer complaints Reduced the turn-around time for fraud investigation from 21 d
Slide 111: Customer video - strategic relationship beyond contract
Customer video - strategic relationship beyond contract 111
Slide 112: Summary
Summary Key BFSI strategic partnership built over eight years Significant organic growth in service scope – more business clusters – more processes and volumes – more geographies Relationship evolved from offshore cost arbitrage to strategic partnership Substantial increase in more value-add
Slide 113: Child Maintenance Group - Off System Case Management Services
Child Maintenance Group - Off System Case Management Services Garry Robinson Serco Global Services, Head of Government UK
Slide 114: Contract overview
Contract overview Clerical Cases Management Service to ensure that complex child support cases are managed effectively and sensitively – manage the influx of new cases from our customer The Child Support Agency Service Start Date: – collect an initial payment and maintain regular payments 15.08.06
Slide 115: Account journey
Account journey October 06- Sept 07 Sept 07 – Oct 08 Oct 08 – Mar 11 Apr 11 – Mar 12 Apr 12 – next 24 months Development Transactional Increased Strong at Move to partnership KEY relationship joint working all levels partnership approach New Strong Customer Improved performance Continue to performan
Slide 116: Creating a centre of excellence for future growth
Creating a centre of excellence for future growth In May 2012 set up a 250 seat contact centre in less than 8 weeks Completed ahead of time and within budget Transferred agents and work from Stockport in line with customer’s request Space to rotate operations to complete a renovation programme
Slide 117: Innovation - systems
Innovation - systems Over the term of the contract we have built a number systems that have proved to be critical to our successes Case Movement Database PAG database Accuracy database Post database Call logger Caseworker Connect TELEm Improved performance and Non Finance Directory c
Slide 118: Innovation - revenue collection
Innovation - revenue collection January – March 2011 delivered the maximising performance project – recruited over 100 staff in less than 8 weeks and collected > £1.1m in less than 3 months New outbound team created Outbound campaigns ran out of hours Sent HMRC a list of selected non-paying no
Slide 119: Innovation - process efficiencies
Innovation - process efficiencies Since April 2010 delivered >90 FTE efficiency savings through improved processes and customer experience Used lean six sigma techniques to challenge every step of the many procedures we have Challenged the client on “policy and regulations” – many removed as the
Slide 120: Innovation - process redesign
Innovation - process redesign Designed and implemented a reengineered process for ‘Change of Circumstance’ reducing the end-to-end processing time by 7 working days and increased throughput per FTE, further improvements still to be delivered Used lean six sigma techniques to identify the bottlenec
Slide 121: Innovation - new technology
Innovation - new technology Deployed a call routing solution and created three Centres of Excellence, providing improved knowledge to front line caseworkers and improving first call resolution Call logger used to identify key call types Reviewed average handling time of each of these call types
Slide 122: Summary
Summary We manage the most complex cases for CMG Our team have specialist skills and expertise – created end-to-end processes for complex case management – reengineered the customer journey – developed new systems to enhance service delivery We have delivered innovations which have – improved
Slide 123: Closing remarks and Q&A
Closing remarks and Q&A Andrew Jenner Finance Director Serco Group plc
Slide 124: Serco and BPO – the messages of today’s presentation
Serco and BPO – the messages of today’s presentation The BPO market is large and growing Serco’s growth in the BPO market is a natural evolution of our strategy Providing middle and back office services meets the increasing needs of customers We are building a global BPO business that is tru
Slide 125: Serco Global Services – outlining the strong opportunities for our BPO division
Serco Global Services – outlining the strong opportunities for our BPO division Serco Group plc Investor and analyst event 11 December 2012