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What IT Buyers Want November 2013 1 Capita plc – UKs leading public and private outsourcing group – FTSE 100 constituent and ranked in Euro top 300 – Market capitalisation £6 Billion (June 2013) – Revenue £3.35bn; profits £425m (2012) – UK’s leading public and private sector outsourcing group – Offices in 15 jurisdictions across the globe – 320 offices with over 52,000 employees – 1,000 people in Ireland with ambitious growth plans Key market sectors: Central and Local Government, Financial Services, Health, Life and Pensions, Education and Insurance 2 Our Division Capita Asset Services …is Europe’s most highly rated loan servicer for commercial real estate loans with a portfolio of €120bn across 13 European jurisdictions. Services include master and back up servicing, primary and special servicing, due diligence and work-out. Capita Fiduciary Group …provides corporate and trust administration services to a wide range of institutional, corporate and private clients worldwide. Locations include Ireland, Jersey, London, Luxembourg and The Netherlands with rep office in New York and Singapore. Capita Registrars …core business is share register management; it is the largest UK registrar. Services include employee share plan administration, share dealing, company secretarial services, investor relation services and corporate actions management. 2,000 staff, across a number of countries, administering over €250bn of assets Sector Treasury …provides capital financing, treasury advisory, strategic and consulting services to UK public service organisations. Capita International Financial Services … is one of the most experienced European provider of corporate services to over 250 of the world’s leading corporate’s and many leading financial institutions. Capita Financial Group …provides investment managers with a comprehensive set of onshore and offshore fund administration solutions across a wide variety of fund structures and asset classes. 3 About Us – We are Europe’s largest, independent 3rd party loan servicer – An innovative and responsive business in a strong and stable group – 200 staff in London, Dublin, Frankfurt and Belfast with asset management coverage across Europe – We provide front, middle and back office services for lenders and investors – We provide services in respect of €120 billion of loans across 13 jurisdictions – End to end loan lifecycle solutions, or specific services to complement your operations – Master Servicer for Ireland’s NAMA since 2009 in relation to its €73bn loan portfolio – Primary Servicer for €72 billion of loans & CMBS – Special Servicer and Loan Work-out for €6 billion of loans in the last 4 years – Loan administration and Facility Agency services – Due diligence and re-underwriting services for loans and loan pools Services for banking and capital markets in the management of real estate, corporate and other loans 4 Our IT landscape Capita Group Capita Ireland – > 5,000 IT Staff – Co-location arrangement with Telecity – Multiple data centres – HP Storage and Servers – 60K + desktops – Predominantly Microsoft technology stack re databases etc – 20K+ servers – Gold standard partnership relationships with all major suppliers – VMWare – Multiple application packages – T24 / Evolan – Sharepoint for DM and workflow – MS Dynamics 5 Trends (from my perspective) 2008-’10 • Rapid cost reduction • Freeze on capital projects • Freeze on training spends • Reduction in IT graduates 2010-’12 • Impact of lack of investment • Shortage of IT resources • Slow return to growth generating demand for new projects 2012• Investment returns • Demand for innovation • New projects • Increasing Complexity 6 Challenges for IT Management o New Trends/Technology : o BYOD o Cloud o Big Data o Shadow IT o Challenges : o Security Threats o Compliance / Data Protection o Complexity of the environment o Dealing with Legacy / Justifying upgrades o Resources / Retention / Talent Development o Striking the balance between innovation and bleeding edge o Demonstrating and adding true Value 7 What Buyers Don’t Want o Aggressive Sales techniques o Too many calls / emails o Multiple lines of attack across the company o Looking for too much information o Long presentations o Vapourware o Hidden traps on T’s & C’s o “Its in our policy” or “its in the contract” o Issue Spin 8 What Buyers Want CIO Survey What I look for Frequent communications and effective collaboration – Warm intros and recommendations • 58% – Innovative approach and ideas Ability to provide complete solutions – Partnership • 60% – Understanding my business without being intrusive Understanding of our business – Understand the market I operate in and the relevant technology • 64% – Flexibility on Pricing, Staffing, Delivery requirements Innovative engagement and pricing models – The depth of the company • 70% – Rapid response Superior Technical Skills – Ongoing service past the contract signing • 78% – Cope with unreasonable demands ! 9 What Capita needs right now o Skilled and experienced staff – contract and permanent o Partnership with someone who can supply the right people on a flexible basis across : o Analysis o Testing o Developers o Project & program managers o Solutions across Banking services : o o o o Core processing Workflow (pre-canned) Document Management Systems BI / Reporting / Analytics o Flexible pricing models that suit current and future needs 10 Empathy o Despite modest recovery – its still a difficult environment for sales o Customers are more demanding, more commercially savvy and contracts are getting more and more onerous o More competition than ever in the IT space o Hard to break in to new markets and with new customers – people are more risk adverse than ever 11