BT Global Services

UK Markets and Government & Health

Emer Timmons, President BTGS UK Markets

Neil Rogers, President Global Government & Health

April 2011

Agenda

An overview of BT Global Services

A look at the UK markets

A look at the Government & Health sector

BT Global Services

Overview

Overview

Our vision – the leader in networked IT services

Number One for customer service

World Communication

Awards

What makes us different?

• Around 25,000 people globally, with one of the

largest professional services capability in our

industry

• Bringing together a broad portfolio of services

• With a track record of delivering for customers

globally in around170 countries

• Underpinned with a unique breadth of scope,

reach and capability

• And recognised as market leading for customer

service and innovation

BT Global Services is a global leader in managed networked IT services, operating

globally and delivering locally to help our customers thrive in a changing world

BTGS can differentiate with

expertise, legacy and global

service delivery capability.Ovum‟s BT Global Services Enterprise

Strategy Review: August 2010

Overview

Emer Timmons UK

Luis AlvarezEMEA & Latin America

Kim McMannUnited States & Canada

Kevin TaylorAsia Pacific

Jeff Kelly

CEO, BT Global Services

Andy

Nicholson

Global Banking

& Financial

Markets

Bas Burger

Global

Commerce

(manufacturing,

logistics &

pharmaceuticals)

Kim McMann

Global

Consumer

Packaged

Goods

Neil Rogers

Global

Government &

Health

Rogier BronsgeestGlobal Customer Service Operations

Ashish GuptaPortfolio & Service Design

Himanshu RajaFinance & Commercial

Nigel PerksHuman Resources & Communications

Tom Regent Sales & Marketing

Kevin TorgersonStrategy & Operations

Colour key: Regions Global verticals Service lines Support functions

Our structure

Government

& Health

Neil Rogers

Global Banking &

Financial Markets

Andy Nicholson

Consumer

Packaged Goods

Kim McCann

Global

Commerce

Bas Burger

UK

Emer Timmons

Asia Pacific

Kevin Taylor

EMEA & LATAM

Luis Alvarez

US & Canada

Kim McCann

Customer

Customer

Customer

Close to customer

Delivering“on theground”

Creating depth in

local markets

Vertical expertise and scale

Delivering global capability

Creating focused solutions

Global solutioning, delivery and service

Creating consistent quality

Overview

How we work

Portfolio & Service Design, Ashish Gupta

Global Customer Service Operations, Rogier Bronsgeest

BTGS revenue by sector

2010/11

A global leader in managed networked IT services

• BT‟s is the most comprehensive fixed-line network in

the UK, and the UK government is our largest

customer

• Globally we can count the World Health Organisation,

United Nations, EU and NATO, as well as major

global multinationals such as, BMW, Credit Suisse,

Deutsche Bank, Emirates, Fiat, FT, Microsoft, NYSE,

Thomson Reuters, Unilever, Volkswagen and Volvo

as our customers

• We connect businesses globally over a secure,

optimised IP network that reaches 1,270 cities

in more than 170 counties

• More than 68,500 traders in over 800 firms across 50

countries use BT‟s trading solutions. Every day over

20 million credit & debit card payments are processed

over the BT network

• BT will provide the voice and data networks, internet

access and land lines at every London 2012 Games

venue

Overview

Expanding from our base in the UK

46%

24%

19%

8%

3%

Corporate customersPublic sector (UK & overseas)Financial institutionsTransitOther global carrier

What we offer

DFTS will save MOD around £800m by 2015 BT‟s networked IT Services will enable J. Sainsbury‟s

to significantly improve their customer service focus

by simplifying and accelerating their response time

on customer enquiries

Unilever recently renewed their IT Networking

Outsourcing contract until 2013

Our Progress

Our customers in the UK - who they are and what we do for them

1,700 customers

Public sector Commercial sector

What we offer What we offer

Source Daily Telegraph

UK GDP Growth Forecasts Bank of

England

Overview

How we see the UK market

What solutions do we provide?

Overview

BT Onevoice

Anywhere won

„Best Technology

Foresight‟

INFRASTRUCTURE

as a SERVICE

COMMUNICATIONS

as a SERVICE

SOFTWARE

as a SERVICE

LAN Management

Internet Services

Managed Firewall Services

Web AccessSecurity

Applications AssuredInfrastructure

Managed Security Monitoring

DedicatedServices

Secure Remote Access

VPN Services

MessagingSecurity

Virtual DataCentre

ManagedMobility Expenses

BT Onevoice

SIP Trunk

IP Telephony& Video

Hosted VoiceFlexible Working

Services

Field ForceAutomation

Supply ChainSolutions

Hosted ContactCentres

Self Service

Intrusion Prevention Services

Inbound Services

Managed Security Services

• Helps us to develop marketplace

opportunities e.g. virtual data

centres and cloud computing

• Identify and manage real

business risks that matter to our

customers e.g. energy efficiency

• Enhances our reputation and

performance in bids e.g. CR

noted in £2.1bn bids in 09/10,

most of which were UK bids

• Avoids costs through use of our

solutions e.g. conferencing and

field force automation

• Prevents costs through

environmental management

e.g. landfill tax

• Enhances pride in BT,

motivating our people,

attracting talent and reducing

churn

• Helps us to differentiate

ourselves as competition

increases

• Meet emerging expectations of

sustainability e.g. low carbon

economy

• Proactively manage emerging

business risks to ensure

business continuity in the longer

term e.g. climate change

A responsible and sustainable business leader

Overview

CUSTOMER

SERVICE

DELIVERY

COST

TRANSFORMATION

INVESTING

FOR THE FUTURE

BT Global Services

UK Markets

• BTGSUK provides networked IT services to

80% of FTSE 100 companies

• In the UK alone, BT provides network

services to over 90 per cent of the UK‟s

leading retail brands

• BT is the UK network service market

leader: No 1 for Ethernet Services, No1

for IP MPLS VPN‟s and No 1 for Internet

Access

• But the depth and breadth of our networked

IT services portfolio goes beyond networks:

hosted communications and applications,

managed IT and professional services,

outsourcing and innovation

• To help our customers improve employee

productivity, organisational efficiency,

enhanced customer experience and grow

through innovation

UK markets

BT is a leader in networked IT services in the UK

GSUK Professional Services

Market engagement: being a

trusted advisor to customer CxOs

Business effectiveness:

trusted advice on improving

business using networked IT

IT optimisation: trusted advice on

delivering high value IT services

Proposition delivery: repeatable

professional services propositions

UK markets

Driving profitable growth through a new Professional

Services-led sales engagement

“We have come to

appreciate the quality of

BT‟s service delivery. The

way that they engage and

partner with us is very

good indeed.”

Mark Sutton, Director of IT

Mothercare Group

Better service at reduced cost

UK markets

Mothercare improves service and saves money by

consolidating its in-store solutions and networked

IT services with BT

ChallengeMothercare wanted a single service provider to source and support its

retail applications, hardware, and other communications services

ValueConsolidating services with BT has rationalised the Mothercare supplier

base, enabling significant cost savings with clear accountability

SolutionBT provides a one-stop-shop for all support services for Mothercare‟s

in-store infrastructure plus a wide range of network services

“The IP nature of the BT

Hosted Voice solution

means we get loads of extra

facilities at no additional

cost. Moreover, because it‟s

a cloud-based managed

service, we can keep

internal costs low and

concentrate upon our day

jobs.”

Darren Lester, Senior

Technical Analyst, National

Express

UK markets

Adopting BT Hosted IPT gives National Express

advanced telephony benefits at low risk

ChallengeNational Express wanted to move its voice services to IP Telephony

while retaining the benefits of its BT Featurenet service

ValueThe solution has enabled National Express to benefit from the

advantages of a converged network at no extra cost

SolutionBT offered Hosted IPT, which seamlessly integrates with BT

Featurenet and provides a low risk introduction to IP Telephony

Transporting the corporation to an IP-based future

“The BT VDC offered us a

number of advantages. It‟s

very flexible and, with

minimal set-up time, we

could get to market far more

quickly. No significant up-

front capital expenditure

was necessary, and the

charging regime is

transparent.”

James Davies, Application

Development Manager,

Norton Rose LLP

UK markets

Norton Rose launches a new online risk

management tool with the BT Virtual Data Centre

service at its heart

ChallengeNorton Rose wanted to work with a specialist data centre services

provider to host its new Risk Manager client application

ValueA very flexible, agile, secure and scalable solution featuring low start-up

costs and supporting a faster time-to-market

SolutionBT‟s Virtual Data Centre service has enabled Norton Rose to create,

monitor, and manage its own virtual data centre infrastructure

Scalable cloud-based services for on-demand business

Drive incremental business

growth through win back from

targeted Pursue Accounts led

by hunting team

Drive product sales through

focus on selected big bets –

SIP/Voice and SFBB/Network

services; improve bundling to

increase number of products

per customer

Leverage 2012 Games as

compelling event in

conjunction with High street

proposition and increase pull-

through of core portfolio,

especially for retail, transport

& logistics sectors

Support global expansion of

UK companies, especially in

Asia. Leverage investment in

Prosperity. Address global

opportunities for SIs (Cap

Gemini , ATOS, etc)

Nuclear decommission/new

build; Transport (TfL, Network

Rail) RMG/Post Office;

Gaming & Supply Chain;

Construction Sell-Through;

Services (KPMG, E&Y); Global

SI – partnering for public sector

& global opportunities

New Business Acquisition Programme Product Big Bets

2012 Games Global growth from UK Sector Growth Focus

Launch proposition to regain

market share in retail,

leverage investment in

Superfast Access, cloud-

based services, and cross-BT

capabilities (e.g. BT Expedite)

Retail – Lighting up the high street proposition

UK markets

Our big bets in the commercial sector

GS overview

The Customer Proposition

A suite of modular, integrated services for retailers with a common service wrap across network, IT and

applications, leveraging the best capabilities across BT Group and partners.

Why BT:

• End to End service integration capability from customer interaction to supply chain

• Retail specialist: professional services, retail applications, cloud based services

• Superfast Access, network coverage and content

• London 2012, investing in UK plc.

Customer Benefits

Enables retailers to: manage their costs more

effectively against demand, enabling innovative,

personalised multi–channel interaction, improve

footfall and customer loyalty, enable a more

effective workforce and efficient supply chain.

BT Benefits:

• Key enabler for customer acquisitions

• Maximise asset utilisation across BT

• Leverage for other sectors & customers,

e.g. Gaming, Post Office, Pharmacies, etc.

UK markets

Retail proposition “Lighting up the high street”

- exciting the market with new propositions

• Structured Go-to-Market approach to drive new C-level engagements

and win back share of wallet in key competitor accounts

• Leverage vertical expertise and horizontal portfolio capabilities in

targeted business conversations

• Experienced new business acquisition specialists focussed on high

potential Accounts

• Sales Academy to drive new client engagements in previously

reactively managed accounts

GS overviewUK markets

New Business Acquisition programme

Identify customer

hot buttons

Engage new CxO level contact

Qualify new sales

opportunities & quick wins

Acquire new

business

Winning back market share from the competition

Strategic

Partners

Global Partners

e.g. HP Capgemini

Cisco Microsoft

Vodafone

Technology or

Niche Partners

e.g. CSC Fujitsu

Logica Siemens

Unisys

Consultancy & Advisory (e.g. KPMG)

Technology Providers (e.g. RM)

Independent Software Vendors (ISVs)

Global Indirect

Channel

Certified Partners

Certified Support

Certified Distribution

Regional or

Vertical

Partners

e.g. Accenture, ATOS, Capita, Dell, IBM,

Infosys, Mahindra, Steria, Tata, Wipro.

Construction (e.g. Balfour)

Indirect S

ale

s

Sell

To (

ow

n u

se)

Sell

Thro

ugh (

„BT

Insid

e‟)

Join

t G

TM

pro

positio

ns

• Global Partner Programme

• Global growth opportunities with SI partners

• Joint up approach on BPO

• 360 degree relationship

• Leverage BT assets and operations globally

UK markets

Expanding our addressable market with partners

Leveraging London 2012

Two propositions to leverage an expected £21bn boost to the economy and address the

challenges of being prepared:

(i) Business Continuity – Are you Ready for London 2012?

Targeting UK businesses and organisations to help

them be prepare for the Games.

(i) London 2012-in-a-box

Shrink-wrapped solutions to help international

organisations with short-term requirements for

Games-time communications services

UK markets

BT Global Services

Government & Health

A strong foundation...

• Over 1200 customers in Government and Health

around the world

• Deliver critical contracts to enable Government to

run including:

• Ministry of Defence

• NHS

• Police

• 2012

• Criminal Justice Department

• Local Councils and Health Authorities

• Investing in Security

• 1300+ security experts worldwide

• Connecting over 1650 sites around the world

for the Ministry of Defence

• Hosting NHS data for over 50m patients

• Making it easier for customers to buy:

• Buying Solutions framework contract

• MOUs with Government

• Utilising existing contract Ts & Cs e.g. MoD

A clear strategy for growth

...that will continue to grow

Defend &

grow existing

customers

New

customers

in UK

New

international

markets

Government & Health

Continuing to invest in and grow our business

„Delivering the public sector cuts facing the new

Government will not be easy. But those who argue it

will be impossible without slashing services should

take a look at BT.‟

David Wighton, The Times, May 2010

We built and operate the NHS Spine

platform that exchanges 3,500,000

prescription messages

each week

We process over

225,000 applications

each year for the Security

Industry Authority (SIA)

We provide a highly secure

network for over 260,000

military and civilian defence

employees

We undertake

c.1,000,000 criminal record checks

per annum at Disclosure Scotland to

safeguard vulnerable groups

Government & Health

We are proud of what we do

We collect circa £580,000,000 in

tax revenues each year on behalf

of our local authority partnerships

We are delivering in excess of

£500m savings in partnership with

six UK Councils through efficiency &

transformation programmes

HealthCentral

GovernmentDefence

Local & Regional Government

Full

outs

ourc

eS

ecto

r P

ropositio

ns

Pro

duct &

serv

ices

DFTS

Government & Health

In delivering a broad range of services for our customers

LSP

• Remote county with population of over 500,000 needing to

create higher value, less seasonal jobs

• 100% coverage superfast broadband covering 263,000

business premises and universities

• Benefiting existing businesses & attracting new ones to the

area: faster back-up of computer systems, wider use of

video conferencing, increase usage of „cloud computing‟„This puts Cornwall in the fast land

of the information superhighway and

will make the far South West of

England a magnet for bandwidth-

hungry businesses who want to

combine some of the best

telecommunications infrastructure in

the world with one of the best

working environments in the UK.

Make no mistake – this will

transform Cornwall‟s economy and

the way it does business‟;

Theo Leijser, Director for the South

West Regional Development Agency

Government & Health

Including transforming business services in Cornwall

Government & Health

Promising prognosis for BT telehealth trial

BT helps NHS Wakefield District demonstrate the

benefits of telehealth for the management of patients

with chronic conditions

• NHS Wakefield District looked to a pioneering

telehealth trial with BT focusing on patients with

chronic heart failure

• Patients say they feel more in control of their

condition and in some cases it has transformed

their lives

• BT delivered the Intel Health Guide® as a

managed service, allowing patients to self-

monitor their vital signs for remote analysis

“The confidence I have in this

system means I don‟t worry

about my health like I used to. I

sleep better and don‟t have the

panic attacks. I‟ve started to

walk small distances again. I‟d

go as far as saying it‟s given me

a new lease of life.”

David Ward

Patient

NHS Wakefield District

• Selling more of our core portfolio

• Sales Academy

• Competitive offers from „Maude‟ review

(conferencing, calls and lines)

• Replicating experience with NHS

worldwide, starting in Asia

• Expanding Defence networks beyond UK

Ministry of Defence

• Regional Networks

• Police Outsourcing

• Education

• Secure Products & PSN

• Cyber Security

• Local Government

• DFTS for Police

• Criminal Justice

Export intellectual property gained in UK

Optimise pipeline and replicate profitable model

Increase sales coverage model for simple products

Stable of mid-tier sector specific propositions

1. International

3. Partnerships & BPO

Strategy

2. Propositions

4. Share of wallet improvements

Government & Health

Our growth agenda has 4 focus areas

Opportunity

Our Growth AgendaGovernment & Health

1. International Growth

• Exporting intellectual capital gained in the UK mainly

• NHS

• Ministry of Defence

• Health

• Replicating experience from UK NHS

• Main opportunity seen in Asia

• Singapore Health

• Australian based health care deal to be

announced

• Defence

• Delivering Networked IT services beyond just the

UK Ministry of Defence

• Acquisition of US Federal

• Delivering networks in theatres of war for wide

range of international defence organisations

Government & Health

2. Sector Propositions

• Capability from IL0 to IL6

• Contributor to task force on Cyber defence

• Onsite & in-network managed services

• Over 1300 security experts

Cyber Security

• Mobile solutions for front line staff

• Conferencing solutions reducing travel

• Secure patient data systems

• Unified Communications for productivity

Health

• Mobile community health workers

• Asset tracking using RFID (health & libraries

& environment)

• Telepresence for FCO, 50 countries

Flexible Working/Other

• Cloud-based architecture

• Automated service delivery

• Inherently resilient & secure offering 99.9%

availability

Education Sector

Secure Portfolio & PSN

• Extending DFTS services into Police sector

• HR services for Police

• Shared services HR Payroll, Revenue &

Benefits

Re-use Single Service-BPO

• Deed of Understanding signed to provide GCN

services

• Broad range PSN compliant portfolio service

available now

• Dedicated Government assurance team

2

We continue to see a healthy pipeline of opportunityBuilding on our existing experience....

9

22 2 years

1 year

6 months

Number of customers with BPO

projects over the next 2 years

Government & Health

3. Partnering and BPO

A strong pipeline

of BPO

opportunities

over the next 2

years within

Local & Devolved

Government

Max Wide

BT Local

Government

• Customer

Service

• Revenues &

Benefits

• ICT

• HR & Payroll

• Finance

• Social Care

CareFirst

• Customer

Service

• Revenues &

Benefits

• ICT

• HR & Payroll

• Finance

• Social Care

CareFirst

• Customer

Service

• HR & Payroll

• ICT

• Procurement

• Revenues &

Benefits

• Customer

Service

• HR & Payroll

• Finance

• ICT

• Procurement

• Revenues &

Benefits

• Customer

Service

• HR & Payroll

• Finance

• ICT

• Procurement

• Revenues &

Benefits

• Customer

Service

• Payroll

• ICT

• Revenues &

Benefits

£7.5bn opportunity through selling existing products to existing customers

We are:

• Recruiting a team of 184 new sales people

• Aligning the team to 1100 customers that

previously have had a lower level of

account management than we would like

• Increasing our order intake targets by

£200m per year

• Investing in developing a new wave of

sales professionals in BT

• Focusing on core products where we see

most market opportunity

• Calls and Lines

• Network Services

• Conferencing

• Cloud capability

New Sales Academy

Government & Health

4. Growing share of wallet

„What I have seen today is a fantastic tool

for „bringing to life‟ flexible working

technology‟

Simon Haston, Programme Lead, Improvement

Service for Scotland

4. The Public Sector Network (PSN)

Our Progress

A joint government and industry programme

to create a „secure internet‟ for the public

sector that will:

Deliver cost savings

• Target of £500m pa by 2014

• Lower network and procurement costs plus

service efficiencies

• Assured end-to-end service based on standard

telco networks

Support the Government ICT Strategy

• Standardise and rationalise networks and

infrastructure

• Simplify and enhance security

• Promote open competition

• Streamline procurement

• Underpin cloud services

• Enable collaboration, shared services and new

ways of working

• Support enhanced public service delivery

We played a leading role in creating the PSN with the

Cabinet Office from its inception in 2007, now we are

making it a reality

• We have signed a Deed of Understanding with the Cabinet

Office, enabling us to become a provider of GCN

(Government Conveyance Network) services,

interconnecting PSN Direct Network Service Providers

• We are committed to PSN and will provide a full range of

• compliant services at scale this year

• We already have 2.2.4 accredited network services required

for PSN, including our MPLS core and 21CN

• We are the largest communications provider to the public

sector and are working with major customers to make the

transition to PSN today

• We have the Assuring Government Information portfolio and

our Government Assurance team to ensure higher levels of

HMG IA compliance

• Our broader portfolio will support the move to new ways of

working

Government & Health

“We have all worked very hard to get PSN up and

running and it is extremely gratifying to see the

networks foundations now firmly in place”.

John Stubley, PSN Programme Director, Cabinet Office

BT. Bringing it all together for London 2012

Government & Health

© British Telecommunications plc

Number One for customer service

World Communication

Awards

What makes us different?

• Around 25,000 people globally, with one of the

largest professional services capability in our

industry

• Bringing together a broad portfolio of services

• With a track record of delivering for customers

globally in around170 countries

• Underpinned with a unique breadth of scope,

reach and capability

• And recognised as market leading for customer

service and innovation

BT Global Services is a global leader in managed networked IT services, operating

globally and delivering locally to help our customers thrive in a changing world

BTGS can differentiate with

expertise, legacy and global

service delivery capability.Ovum‟s BT Global Services Enterprise

Strategy Review: August 2010

To summarise

The UK market is key to enabling BT be a global leader in

Networked IT Services