Trouble viewing this email? Read it online here.
NelsonHall success through insight.

NelsonHall FAO Insight: January 2012

Find out more about NelsonHall's BPO market analysis and insight
at www.nelson-hall.com

Dear #FIRSTNAME

Latest News & Developments

  • CSC Partners With Aria Systems on Billing SaaS Offering for European Online Businesses

    Jan 17, 2012 | New Partnerships by Dominique Raviart
    industry: General retail

    CSC has unveiled CloudBill, a billing and subscription management offering for online businesses in Europe. The offering is based on Aria Systems' SaaS billing application, hosted by CSC.

    Services to be provided by CSC around CloudBill include:

    • Consulting
    • Systems integration.

    Analyst comments:

    SaaS offerings are now becoming more mainstream for the delivery of e-commerce services and moving beyond their origins in support of gaming and software distribution.

    They are also becoming more sophisticated. For example, specialist e-commerce support services company Digital River have expanded their capabilities recently launching a high-capacity order management platform as well as becoming approved as a provider of cross-border payments in Europe.

  • Capgemini Awarded Energy and Carbon Data Management BPO Contract by Tesco

    Jan 17, 2012 | Contracts by Dominique Raviart
    industry: General retail

    Capgemini has been awarded an energy and carbon data management BPO contract by Tesco.

    Services to be provided by Capgemini include:

    • Collecting, processing, and reporting of energy usage and carbon emission data from Tesco operations worldwide
    • Technology systems administration
    • Support in matters of sustainability data from Capgemini's Sustainability CoE.

    The BPO service, which uses CA Technologies' ecoGovernance software product, is named BPO Sustainability Service and is part of Capgemini's Supply Chain Management BPO portfolio.

    The client, Tesco, intends to become a zero carbon emission firm by 2050. The contract with Capgemini will help measuring its current energy usage and carbon emissions.

    Tesco is the third largest retailer in the world. It is headquartered in the U.K.

    Analyst comments:

    This is a small contract in terms of revenue, but interesting in that this new managed service from Capgemini is likely to be highly attractive to many organizations.

    Few BPO service providers are currently offering an energy and carbon data management service - another vendor in Europe is Logica - but we expect it will feature more commonly within vendors' broader BPO portfolio over the next few years.

  • Indra Awarded €5.1m SAP Implementation Contract by Enel Green Power

    Jan 17, 2012 | Contracts by Mike Friend
    industry: Utilities

    Indra has been awarded a €5.1m SAP Finance implementation contract by Enel Green Power, the renewable energy subsidiary of Italian Electricity company, Enel.

    Services to be provided include:

    • Upgrade and roll-out of SAP financial and logistics modules across Enel Green Power subsidiaries in Spain, Portugal, Greece, France, USA, Canada and Mexico
    • Management and support of the organization's SAP applications in Brazil, Costa Rica, El Salvador, Guatemala and Chile
    • Integration of global SAP systems with Corporate SAP finance and logistics mdoules.

    Analyst comments:

    Enel Green Power, like many other organizations, is aiming to move to a "global management model" facilitating consistent and more rapid measurement and consolidation of its financials across geographies and well as strengthening the accounting functionality available. This approach is increasingly important in the effective management of a heterogeneous portfolio of subsidiaries in potentially challlenging times.

    This drive for consistent and accurate measurement is currently a major driver within F&A outsourcing as well as within ERP implementations.

  • arvato Awarded 3-Year Logistics Service Contract by Sony Music in the U.K. & Ireland

    Jan 13, 2012 | Contracts by Mike Friend
    industry: Media

    arvato has been awarded a 3-year logistics and fulfillment contract by Sony Music UK.

    Services to be provided by arvato include:

    • Warehousing and logistics services for Sony's MyPlay Direct on-line store
    • Direct to consumer (D2C) distribution including returns management in the U.K. & Ireland.

    Services will be provided from arvato's distribution facility in Milton Keynes.

    Analyst comments:

    Sony Music has been a major BPO client of arvato since 2009 when it signed a six year European logistics and order to cash contract for inventory management, distribution services (Europe, Export world, B2B, D2C); reverse logistics; sales order admin and customer service and F&A BPO services (accounts payable, accounts receivable, VAT management, stock accounting, intercompany invoicing).

    Under the terms of the new 3-year contract, arvato will transfer all Sony MyPlay Direct distribution and warehousing activities from the existing distribution hub in Sweden to its Milton Keynes center. The Milton Keynes center processes both Direct to Consumer and B2B orders and was acquired from Universal as part of a 5 Year distribution outsourcing contract signed in 2008. Staffing levels at the center are expected to remained largely unchanged, with arvato making use of scale efficiencies to process the additional volumes stemming from its contract with Sony Music.

    arvato's largest multi-process BPO client, supported by 1200 FTE's is Microsoft - for whom it has developed and currently operates its online stores across 31 countries and in eleven languages as well as handling marketing, customer service, payment processing and fulfillment.

  • Cognizant Announce Automated Coupon Redemption Offering

    Jan 12, 2012 | New Offerings by Dominique Raviart
    industry: Specialty retail

    Cognizant has announced a Automated Coupon Redemption SaaS-based offering for the retail and manufacturing sectors. The offering is part of Cognizant's IntelliStore and was designed together with Intelligent Clearing Network a SaaS ISV, whose software allows to deliver digital and paper coupons through PoS.

    Features include

    • BI and reporting capabilities including a dashboard for coupon analysis by store, category, active coupons, most popular coupons and other
    • Push technology to mobile phones.

    Cognizant highlights that in 2010, usage of digital coupons grew by 41% in the U.S., allowing savings of ~$1.2bn.

    Analyst comments:

    Although this service is currently offered as a SaaS service, it has considerable potential to be also offered in BPaaS form, with a number of major retailers already outsourcing their coupon promotion and redemption services.

  • CGI Awarded ERP System Implementation Contract by Canadian Healthcare Shared Services Provider Plexxus

    Jan 05, 2012 | Contracts by Rachael Stormonth
    industry: Healthcare Providers

    CGI has supported Plexxus, a shared-service organization supporting 11 Greater Toronto Area (GTA) member hospitals in the design, build, implementation and management of a SAP-based ERP system covering finance and supply chain management.

    Plexxus will operate the Integrated Technology Solution (ITS). University Health Network was the first Plexxus member hospital to start using this the platform in late November. The remaining hospitals will implement the solution in phases carrying into late 2012.

    Analyst comments:

    CGI has been working with Plexxus since the original launch of the ITS project design phase in July 2010. When completed in late 2012, CGI's roll out of the SAP ERP solution will enable Plexxus to provide its 12 hospital members with supply chain (strategic sourcing, procurement, logistics), finance (general accounting, accounts payable, capital projects and assets accounts, funds and grants management), master data management and reporting services.

    Plexxus is a not for profit shared services organisation created by its 12 members which include: Mount Sinai Hospital, North York General Hospital, Toronto East General Hospital and University Health Network and Women's College Hospital.

  • Serco Awarded Support Services Contract by Anglia Support Partnership (ASP)

    Dec 21, 2011 | Contracts by Sarah Burnett
    industry: Healthcare Providers

    Serco has been chosen to operate the Anglia Support Partnership (ASP). Serco was the remaining single bidder to the tender after Sodexo was appointed reserve bidder. Serco is to submit final proposals for approval by 19 January 2012 leading to award of the contract to run ASP shared services to the U.K. health sector as a partner.

    The services provided by ASP, and to be delivered by Serco, include:

    • Finance
    • Payroll
    • Recruitment
    • IT
    • Estates and facilities services.

    ASP is owned by six NHS Partners:

    • Cambridgeshire Community Services NHS Trust
    • Cambridgeshire and Peterborough NHS Foundation Trust
    • Peterborough Primary Care Trust
    • NHS Cambridgeshire
    • Norfolk Community Health and Care NHS Trust
    • Norfolk Primary Care Trust

    ASP is hosted by Cambridgeshire and Peterborough NHS Foundation Trust with the Trust's Chief Executive and Board being ultimately accountable for it. The effective running of ASP is overseen by a Partnership Board.

    ASP has ~65 contracts for the provision of support services to the Trust and partners, as well as 49 other public and private organisations. Its 2010 revenue ~ £34m. ASP currently employs around 620 members of staff who would transfer to Serco. Service transfer would be expected to take place in April 2012.

    Analyst comments:

    The full details of the award are yet to be released but it is expected to be worth ~£400m over ~10 years.

    More than 70 suppliers had originally expressed interest in this contract. ASP whittled down the list to four including Capita and MITIE Group but only Serco, and Sodexo made it to the final shortlist.

    This is a significant win for Serco, its biggest backoffice services contract in the health sector. The deal brings Serco into direct competition with NHS Shared Business Services (SBS) which is the JV between the Department of Health and Steria. In terms of market penetration, SBS is ahead of ASP. It currently provides services such as F&A, procurement and family health to >130 NHS organizations compared with ASP's 49 clients. Until now ASP has focused on service delivery to trusts in the east of England but Serco's partnership could see the organization widen its target market.

    Demand for shared services in the health sector is increasing with many trusts looking to improve the efficiency of their back office services.The planned changes to the NHS by the government is also contributing to the increase in demand and particularly for services that can be run independently of whatever form the organization of the NHS will take following its restructuring. Independent service provisioing reduces risks to service continuity.

    In another development that shows the increasing competition in this market, in December, Logica was awarded a renewal of its payroll and HR government framework agreement. The scope of the framework was extended to include F&A systems provisioning and it was opened to the health sector.

  • WNS Partners with SEEInfobiz to Enhance O2C Offering

    Dec 16, 2011 | New Partnerships by NelsonHall insurance analyst

    WNS Holdings has announced a partnership with software developer and consulting service provider SEEInfobiz to enhance its F&A offering. WNS will integrate SEEInfobiz's web-based e-fulfilment order-to-cash platform within its current range of F&A offerings.

    The SEEInfobiz platform provides:

    • Automated statement delivery
    • Customized messaging on statements
    • Email campaign management
    • Multilingual statements
    • Integration with social media
    • Online statement analysis.

    In addition, SEEinfobiz will provide technology consulting service to WNS.

    Analyst comments:

    WNS has been seeking to strengthen its platform based O2C offering for B2C customers and this partnership will it is hoped, realise new opportunities in target markets such as Telecom, Banking, Insurance and Utilities. The SEEinfobiz partnership provides WNS with a SaaS based customer service management application that supports integrated e-billing, e-invoicing, e-statements, and e-payments across multiple channels (inc. email, web, mobile, fax, SMS) and multiple formats (pdf, excel, XML etc).

    WNS anticipates making further investments in tools that support the automation of O2C processes.

  • Aditya Birla Minacs Partners With PSGI for Onshore Chargeback Capabilities

    Dec 15, 2011 | New Partnerships by Thomas Whittle

    Aditya Birla Minacs has partnered with Profit Solutions Group Inc (PSGI), a New York based chargeback and accounts recievable management and consultancy firm

    Minacs' client base will now have access to PSGI's onshore and onsite expertise in improving chargeback recoveries/deduction processes and reducing revenue dilution.

    Analyst comments:

    The partnership signals Aditya's push to expand its presence in the U.S. retail sector. Suppliers to the retail industry (manufacturers, wholesalers and distributors) have in recent years seen the scale and complexity of chargebacks and deductions in the sector grow significantly as retailers have sought to maintain their cost competitiveness whilst minimising the impact of rising commodities prices.

    PSGI specializes in helping suppliers to analyze the validity and accuracy of deductions claims in order to minimise revenue leakage and increase the cash flow. With supplier margins in the retail industry already significantly impacted by the purchasing power of the largest retailers, such revenue leakage has a huge impact on the bottom line. PSGI will seek to leverage Aditya's scale and technology expertise to enable delivery of its services to a growing client base.

Welcome to FAO Insight

Welcome to the latest "FAO Insight" article from NelsonHall.

FAO Insight complements the market analyses and vendor assessments within NelsonHall's F&A Outsourcing program by providing commentary and insight on key F&A outsourcing industry developments which impact your sourcing decisions.

If any of your colleagues would like to receive this newsletter, please register here. A corporate email adress is required.

I hope you enjoy using this service and welcome your feedback.
Mike Friend

This e-mail was sent to you only because your e-mail address is on the NelsonHall mailing list. To remove yourself from the list, click here.

If your email client cannot read HTML messages, just click on the following link to bring up today's domain in your browser:
http://www.nelson-hall.com/promos/current-domain/.