Outsourcing des Back Offices Un pas supplémentaire dans la spécialisation des métiers de la finance Avril 2006

2 Table of Contents Back office structure and functions (Benoit Schaus) Sourcing (André Vandencamp) Outsourcing (François Dorland)

3 Agenda Faut-il avoir peur de l outsourcing (d é localisation) ? Outsourcing : une tentative de d é finition Sous-traitance, out-tasking Outsourcing Filialisation comment s y retrouver ? Les m é tiers concern é s Les logiques é conomiques et industrielles de l outsourcing Des é conomies d é chelles Des é conomies de co û t La question de la TVA Une nouvelle organisation des m é tiers : les diff é rents degr é s et modalit é s Mise en oeuvre de l outsourcing : un projet industriel La n é gociation et les Services Level Agreements (SLAs) La mise en œ uvre et la p é riode de transition La stabilisation Grandeurs et mis è res de l outsourcing au jour le jour Une nouvelle fa ç on de travailler Quand la situation n est pas bonne : comment revenir en arri è re ?

4 Agenda Faut-il avoir peur de l outsourcing (d é localisation) ? Outsourcing : une tentative de d é finition Sous-traitance, out-tasking Outsourcing Filialisation comment s y retrouver ? Les m é tiers concern é s Les logiques é conomiques et industrielles de l outsourcing Des é conomies d é chelles Des é conomies de co û t La question de la TVA Une nouvelle organisation des m é tiers : les diff é rents degr é s et modalit é s Mise en oeuvre de l outsourcing : un projet industriel La n é gociation et les Services Level Agreements (SLAs) La mise en œ uvre et la p é riode de transition La stabilisation Grandeurs et mis è res de l outsourcing au jour le jour Une nouvelle fa ç on de travailler Quand la situation n est pas bonne : comment revenir en arri è re ?

5 Agenda Faut-il avoir peur de l outsourcing (d é localisation) ? Outsourcing : une tentative de d é finition Sous-traitance, out-tasking Outsourcing Filialisation comment s y retrouver ? Les m é tiers concern é s Les logiques é conomiques et industrielles de l outsourcing Des é conomies d é chelles Des é conomies de co û t La question de la TVA Une nouvelle organisation des m é tiers : les diff é rents degr é s et modalit é s Mise en oeuvre de l outsourcing : un projet industriel La n é gociation et les Services Level Agreements (SLAs) La mise en œ uvre et la p é riode de transition La stabilisation Grandeurs et mis è res de l outsourcing au jour le jour Une nouvelle fa ç on de travailler Quand la situation n est pas bonne : comment revenir en arri è re ?

6 Wealth management & private banking executives are being challenged to commit to growth & profitability Onshore VS Offshore Development of new onshore models through combination of organic growth and acquisitions Consolidation & Scale Several recent acquisitions High Value Client Solutions Trend towards holistic advice Growth of Network Based Models More shared services within group; Development of open products architecture Diversity of Products and Services Rapid trend to alternative products e.g. hedge funds, private equity, Rise of open product architecture Better Enable Advisors New client demands / concerns More investment in hiring/training Front office enabling tools on the rise Cost Effective IT Investment Managed by ratios Trend to packages & standardisation; Evolution of outsource market Profitability Management Evolving examples of success and new benchmarks; Driving investment performance Source: 2003 IBM Survey of European Wealth and Private Banks (trends) Impacts Focus on core business Acquire best of breed components IT Impact

7 Example : the acquisition of a core banking system is a strategic decision with a 10 years perspective With dedicated resources allocation along the project lifecycle 3 months 9/12 months 10 years 3 months 9/12 months 10 years ImplementationPost-ImplementationPreparation Objectives & Scope Definition Implementation Hosting Services Application Support & Maintenance Project & Change Management Service Management Chose partners with the ability to support you on the long run, and to address the activities chain as a whole is a key success factor Chose partners with the ability to support you on the long run, and to address the activities chain as a whole is a key success factor

8 Benefit from combined economies of scale Hosting Shared infrastructures & teams Wide service hours coverage Lower cost for options (Disaster recovery…) Improved accessibility & cost for unplanned resources needs 1.IT and operations efficiency improvements begin 2.Achievement of most or all efficiencies 3.Impasse 4.Replacement of core systems and hosted services begin 5.Core system replacement and hosted services Source: IBM Institute for Business Value

9 Flexibility: Benefit from flexible resources allocation and pricing IT Operations Cost Business constraints by lack of capacity & delays Anticipated Investments Cost Time Revenue Trend Improved Business Agility Capacité utilisée Cost Time IT Operations Cost Reduced Upfront Investments Flexible pricing & fast provisioning Revenue Trend

10 Agenda Faut-il avoir peur de l outsourcing (d é localisation) ? Outsourcing : une tentative de d é finition Sous-traitance, out-tasking Outsourcing Filialisation comment s y retrouver ? Les m é tiers concern é s Les logiques é conomiques et industrielles de l outsourcing Des é conomies d é chelles Des é conomies de co û t La question de la TVA Une nouvelle organisation des m é tiers : les diff é rents degr é s et modalit é s Mise en oeuvre de l outsourcing : un projet industriel La n é gociation et les Services Level Agreements (SLAs) La mise en œ uvre et la p é riode de transition La stabilisation Grandeurs et mis è res de l outsourcing au jour le jour Une nouvelle fa ç on de travailler Quand la situation n est pas bonne : comment revenir en arri è re ?

11 Governance model Governance Business Partnering Organization alignment Commercial Model Benefits – Business Case Flexible pricing SLA Contractual Agreements Service definition Hosting Service Solution Core activities Options IT processes PSF-ICT Agreement Outsourced function Services Implementation Strategy Activities Planning & Budget Resources Change Management

12 Example of IT outsourcing Change Management Project Management Architecture Business Organization IT operations Select the appropriate architecture Support the integration of clients from a technical perspective Parameters definition Define business requirements Parameters settings definition Configuration Testing Client Integration Support the integration of clients from an organization perspective Procedures definition Training Project & change management Project guidance and assistance Resources Governance

13 Committed Service Levels Services Options Software License Maintenance & Support … Software License Maintenance & Support … Consulting Application Expertise … Consulting Application Expertise … Service Level Agreement Availability Performance Responsiveness … A la carte Options Managed Services Hosting IT Operations Service Levels … Managed Services Hosting IT Operations Service Levels … Integration Set-Up Project Administration … Integration Set-Up Project Administration … CUSTOMER

14 Agenda Faut-il avoir peur de l outsourcing (d é localisation) ? Outsourcing : une tentative de d é finition Sous-traitance, out-tasking Outsourcing Filialisation comment s y retrouver ? Les m é tiers concern é s Les logiques é conomiques et industrielles de l outsourcing Des é conomies d é chelles Des é conomies de co û t La question de la TVA Une nouvelle organisation des m é tiers : les diff é rents degr é s et modalit é s Mise en oeuvre de l outsourcing : un projet industriel La n é gociation et les Services Level Agreements (SLAs) La mise en œ uvre et la p é riode de transition La stabilisation Grandeurs et mis è res de l outsourcing au jour le jour Une nouvelle fa ç on de travailler Quand la situation n est pas bonne : comment revenir en arri è re ?

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