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