The BPO Transformation Journey Mary Trevena, Vice President 5 November 2015

2 Copyright © Capgemini 2015. All Rights Reserved

The BPO Transformation Journey | 5 November 2015

What if there were a simple way to significantly enhance your business?

Your BPO

Transformation

Journey

Link: https://youtu.be/Osa78NzqKlE

3

The BPO Transformation Journey | 5 November 2015

Copyright © Capgemini 2015. All Rights Reserved

Leading businesses recognize the growth potential that innovation brings …

Demand for

End-to-end

Transformation

Growing demand for

Automation and

RPA

Need for easier

acquisition integration Growing demand

for SaaS and BPaaS

solutions

SMACT (Social, Mobile, Analytics,

Cloud, Internet of Things) is driving

innovation

Digital

Transformation

Increased focus on business

outcomes

and transformation

capabilities

Increased need for domain

expertise

Technology

Integration

Have you thought about the impact that these opportunities could have on your business?

4 Copyright © Capgemini 2015. All Rights Reserved

The BPO Transformation Journey | 5 November 2015

The journey to a new BPO vision – From cost reduction to business outcomes

1990’s

Global

Delivery

Network

BPOpen®

BPO

COMMAND

CENTER

GLOBAL

PROCESS MODEL©

IP AND

TECHNOLOGY

Global

Enterprise

Model

VERTICAL

EXPERTISE

BPO as

A Stack

Transformation Transformation

Cost of Service Lift and Shift

2010’s 2000’s Today

Clients praised Capgemini's deep

industry knowledge, flexible customer

orientation,

commitment to client relationships and

good service delivery.

Gartner Research

“ Providers understand they are at risk because

customers are directly going to cloud. So many

providers are thinking of adding cloud to their

portfolio of services. (...) An example of a

company that really gets it is Capgemini, which

recently launched a global cloud brokerage

service.”

ISG

“

Autonomics

(RPA)

Tomorrow

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The BPO Transformation Journey | 5 November 2015

Capgemini BPO: Accelerating the transformation of your business processes and the resulting business outcomes you can expect

Supply Chain

Procurement

Finance & Accounting

CPG, Retail & Distribution

Utilities Manufacturing Financial Services

Media & Entertainment

Human Resources

Analytics

Services

Processes

Applications

Infrastructure

We deliver best-in-class industry expertise to your business with our service

portfolio of integrated, technology-based solutions:

Creating agility throughout your operations with a Cloud-based, Business-as-a-Service approach

SECTOR

OFFERS SMARTcare

Demand Driven Insight /

Supply Chain

Enterprise

Content

Management

Insurance Claims

Processing Participations

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The BPO Transformation Journey | 5 November 2015

Capgemini BPO: How we do it

People: Our BPO team comprises over 18,000 dedicated sector and

function specialists who work 24 / 7 / 365 to exceed expectations

Delivery Network: We provide world-class services through an

integrated delivery network that utilizes right resources at right

locations

Methodology: Unique Global Enterprise Model (GEM) methodology

and stack offerings enable us to build solutions tailored to your clients’

needs

Technology and Partners: Innovative and cutting-edge technology

combined with our partner portfolio guarantees successful outcomes

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The BPO Transformation Journey | 5 November 2015

Capgemini BPO and your business: All the right people in the right people in all the right places

18,000+ professionals

48% 52%

Training Curriculum:

Professionals Skills

Leadership Techniques Program

Blended Learning Programs

Process Capability

• Process Trainers Academy

• GEM Academy

Engaging and Developing our Talent

SOURCING

CHANNELS

INDUSTRIALIZED

ON-BOARDING

PROCESS

LEARNING &

DEVELOPMENT

TALENT

MANAGEMENT

AND DEVELOPMENT

ONGOING TALENT DEVELOPMENT

Capgemini’s BPO employees are true professionals – they are the top talent available, dedicated to their

work and continually improving through our talent development programs.

E-learning

Self -learning: on-the job training,

assignments projects,

Development

Centers

Academies

Instructor- led courses

Training Curricula

Manager support, expert

communities

Capgemini University

Blended

Training &

Development

Approach

Average age

30 years

70% of employees with certified

business qualifications

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The BPO Transformation Journey | 5 November 2015

What are the next steps in BPO Transformation?

We’re already seeing impressive outcomes

19 Engagements Expected Savings

121 FTEs 136

Artefacts

built

101 Artefacts in

production via 33

Robots

Savings Realized

36 FTEs Avg. of 500 transactions per

robot

per day

136K Transactions

Processed

Save costs

Improve efficiency

Unlock your investment in existing ERP systems

Boost productivity

Robotic Process Automation/Autonomics can

Autonomics: Self-regulating, self-managing systematic processing

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The BPO Transformation Journey | 5 November 2015

A specific solution for your business: Three types of Stack for three business needs

Versions of the Stack look different depending on the scope of the customer’s needs:

Multiple Process (Broad) Stack

• Each layer assembled to meet

unique customer needs

• Fulfills multiple processes

FAQ MDM, SCM Procurement P2P, O2C,

R2A

BPOpen®

App Hub ERP

PRIVATE SAP Security

BASIC SAP Hosting

Single Process (Thin) Stack

• Each layer assembled to meet

unique customer needs

• Fulfills a single process

PRIVATE

C2C Collections

Virtual Company Stack

• Ready-to-use, standardized services

based on Netsuite and Capgemini IP

• Fulfills a specific set of processes for

common business needs (e.g. start ups,

M&A, new market entry)

R2A Including joint venture

accounting

C2C Including royalties

P2P

BPOpen®

App Hub

ERP

PRIVATE

BPO

Connect

Mulesoft

Swedish client BPO transformation journeys

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The BPO Transformation Journey | 5 November 2015

Over 60% cost savings for Scania in the next five years

Scania is a Swedish manufacturer of heavy trucks and buses headquartered in Sodertalje (Sweden). The company is present in

more than 100 countries with production units located in Europe and Latin America (Brazil). Scania reported net sales of EUR

9.21 billion in 2014.

Contract signed in

May 2013

2013

GEM Implementation

(GPM© Alignment) for one of

the business areas started

from Nov 2014

2014

Transparency and control: Improve

transparency and control to enhance quality

Harmonization: Harmonize the Finance

Group which has separate operating models

for each unit/country

Cost reduction: Reduce the cost of

delivering finance services

Quality and volume fluctuations: Improve

and maintain quality of service. Develop a

scalable delivery model to handle volume

fluctuations

Decentralized Operations: Complex and

non-standard operations spread across 24

countries in Europe

The Challenge The Solution

Consolidated and standardized processes

across 24 countries using our Rightshore®

delivery model

Centralized shared services model with

BPOpen® platform as a single point of

contact for all suppliers

Technology: Command Center, Capgemini

T-room, WebEx, MS Lync, BPOpen®, QMS

and MDM modules

Delivery centers: Bangalore (India) and

Krakow (Poland)

Scope of Work: AP, AR, Scanning and

Indexing for supplier invoices

No. of resources: 160

No. of languages supported: 1 (English)

The Outcome

Embedded controls/segregation of duties

Industrialized Payables/Receivables

processes: Synergies across SBUs

60% cost savings projected over five years

Scalable F&A service offering/market-leading

technology solutions

Flexible mechanism to fluctuate resources

depending on business needs

SLA-based operating model with best-in-class

reporting from GCC

Modularization with complete suite of offerings

(People, Process and Technology)

Projected additional savings of approx. €5.5

million over next five years with GEM

implementation

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The BPO Transformation Journey | 5 November 2015

Nine-million Euro in savings for SKF

Reduce cost and improve productivity

Increase transparency and authorization

controls

Need for automation

Need for standardization and world class

processes

The Challenge The Solution

“Lift and shift” approach to transition

operations to our delivery center

Phased transition was agreed targeting

operations by BUs and Service Line

Work transferred in five transition waves

Implemented SWIM project

Implemented Audited Internal Control

Standards for all countries in scope

Delivery centers: Guatemala, China, India

and Poland

Scope of work: AP, T&E, AR, GL, MDM, AP

helpdesk and Tax

No. of resources: 246

Languages: English, French, German,

Italian, Spanish

The Outcome

Reduced total cost by 9 million euros

Improved productivity by 30% during the

contract

Increased transparency of Finance processes

to key stakeholders

Automated Accounts Payable service delivery

Increase authorization controls

Implemented World Class F&A processes

Achieved standardization across all SKF

Business Units

Named SKF’s Best Supplier of 2013

SKF is a Swedish bearing company founded in 1907. The company’s technology platforms include bearings and units,

seals, mechatronics, services and lubrication systems. In 2014, SKF reported annual revenue of SEK 70.975 billion.

Contract renewal

for 7 years Scope reorganization

AP Vendor Helpdesk

SKF Canada

Contract

sign off

(90 FTEs)

US Ext.

(+22 FTEs)

Command

Center and T&E

Germany

added

2006 2007 2008 2009 2010 2011 2012 2013

Further extensions – MDM services SKF RFT

SKF Poland, SKF RKS Avallon, SKF Lubrication, SKF

Malaysia, SWIM - 1st Line Support, Transfer Price

updates in ICSS, SKF Linear system (Movex), Sales

Units (VAT reporting, ERP/IRP CPM reporting, Statutory

reporting)

GPM© alignment

SWIM Project SKF Mexico

Cash Collection

SKF Brazil

2014

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The BPO Transformation Journey | 5 November 2015

75 million SEK savings for high-tech engineering group

Efficiency and quality – increase efficiency

and achieve better quality within

administrative processes

Operational Excellence – Drive

businesses by rigorous focus on operational

excellence by applying common

methodologies

Standardization – Implement a common

way of working across the business with

consistent process outcomes

Cost reduction – Reduce the cost of

delivering finance services

The Challenge The Solution

• Implementing GEM levers to achieve cost

reduction targets

• Methodology: Global Process Model© and

Rightshore®

• Delivery centers: Bangalore (India), Krakow

(Poland), Blumenau (Brazil) and Nanhai

(China)

• Scope of work: AP, AR (inclusive

collections), GA (inclusive Fixed Assets)

• No. of resources: 579

• No. of languages supported: 21

The Outcome

Our client will see significant cost reductions in

three areas:

• Labour arbitrage

• Committed productivity from Capgemini

• Centralisation of retained finance activities

Application of a global process template for

retained and outsourced finance processes

Transparency of the performance and

outcomes of finance processes across

businesses and countries

Acceleration of benefits could save our clients

75 million SEK when compared with a standard

procurement process

Our client is an international engineering group in tooling, materials technology, mining and construction. The Stockholm,

Sweden-based company employs over 47,000 people and reported annual sales of over 89 billion SEK in 2014.

Signed 5 year

contract in

March (+2 year

extension

option)

2013

Sign off of

client’s Global

Process

Template

2014

First countries

live in India,

China and

Poland

2014

14 Copyright © Capgemini 2015. All Rights Reserved

The BPO Transformation Journey | 5 November 2015

Mary

Trevena Vice President BPO

mary.trevenae@capgemini.com

Your thoughts: An open discussion

15 Copyright © Capgemini 2015. All Rights Reserved

The BPO Transformation Journey | 5 November 2015

We are recognized leaders in the marketplace

Constant Market Recognition

‘Best Supplier in 2013’ and ‘Best Performance in Cost’ for outstanding

performance as a partner and significant cost savings delivered through

the transformation of SKF’s business processes

2013 ‘Prime Supplier of the Year’ for outstanding contribution to move business

initiatives forward and championing supplier diversity

Positioned in the leaders quadrant for Finance & Accounting BPO published

in 2012, 2013, 2014 and 2015

Awarded as “Leader” in the 2013 and 2014 Everest Group FAO PEAK Matrix

Positioned in HfS’s Winner’s Circle Blueprint for Finance & Accounting BPO

for 2013 and 2015 as well as for Procurement in 2015 and Supply Chain in 2014

Recognized as Leader in Worldwide Business Analytics BPO 2014 MarketScape

Capgemini has a good spread of F&A

process activities across its delivery

locations. It is well integrated across sites

to deliver a view back to clients of both

contract performance metrics

and their financial performance.”

– Gartner, Inc.

“Magic Quadrant for Finance

and Accounting BPO,”

Capgemini’s flexible, platform-based GEM

methodology has all the aspects of

progressive delivery covered.”

“All key Capgemini clients

attest real value from the

GEM methodology.”

– HFS Blueprint Report

Capgemini: the 'best of breed' provider

of business as a service. Capgemini is

the fastest to come to market with an

interesting 'assemble to order' approach

that exploits IaaS, SaaS, BPO assets

and end-to-end service management.

The approach positions Capgemini as a

BPO innovator.

– Research 451

In our view, Capgemini's Global

Enterprise Model and proven ability

to provide this service quality

consistently sets it apart at the

forefront of the F&A market."

– HfS Research Blueprint report for

Finance and Accounting BPO

Clients praised Capgemini's deep

industry knowledge, flexible

customer orientation,

commitment to client relationships

and good service delivery.

– Gartner Research

The information contained in this presentation is proprietary.

© 2015 Capgemini. All rights reserved.

www.capgemini.com

About Capgemini

Now with 180,000 people in over 40 countries, Capgemini is one of

the world's foremost providers of consulting, technology and

outsourcing services. The Group reported 2014 global revenues of

EUR 10.573 billion. Together with its clients, Capgemini creates

and delivers business, technology and digital solutions that fit their

needs, enabling them to achieve innovation and competitiveness. A

deeply multicultural organization, Capgemini has developed its own

way of working, the Collaborative Business ExperienceTM, and

draws on Rightshore®, its worldwide delivery model.

Rightshore® is a trademark belonging to Capgemini