capgemini nearshoring

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


For Capgemini ...


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


UK Delivery Centres

Insert “Title, Author, Date" 4

© 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


Capgemini’s clients served


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


Services Available from our Regional UK Delivery Centres


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


Experience of Attracting and Retaining staff


• 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


Training Programmes & Certifications Software Developer Advanced Apprenticeship


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


Support for and Further Benefits of Creating RDCs


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


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


More information


Insert “Title, Author, Date"

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 - [email protected]

http://uk.linkedin.com/in/andybates

@CapgeminiUKPR

http://www.capgemini.com/

mailto:[email protected]

http://uk.linkedin.com/in/andybates

http://www.linkedin.com/company/capgemini

http://www.twitter.com/capgemini