| Type | Public (LSE: XCH) |
|---|---|
| Industry | Business processing |
| Founded | 1999 |
| Headquarters | London, United Kingdom |
| Key people | Nigel Rich (Chairman) Ken Lever (CEO) David Bauernfeind (CFO) |
| Revenue | £780.6 million (2010)[1] |
| Employees | 8000 (2010)[2] |
| Website | www.xchanging.com |
Xchanging PLC (LSE: XCH[3]) is an outsourcing company for business processes, with a wide range of multinational customers in 42 countries.
Xchanging offer a range of "partnering" and outsourcing contract arrangements. In "partnering", Xchanging share any profit and capital benefits from productivity improvements, scale advantages and entrepreneurship with the customer. These benefits are split 50:50 so that the interests of Xchanging and the customer are aligned. In outsourcing, Xchanging will typically take over a customer's business process, or back office function, and incorporate them into an existing platform in an attempt to provide better and cheaper handling of administrative tasks.[4]
Xchanging employs over 8,000 people worldwide.[5] It is listed on the London Stock Exchange and is in the FTSE SmallCap Index. Xchanging is also a member of the FTSE4Good Index.
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Xchanging was founded in 1999, by David Andrews, a former partner in Andersen Consulting. Andrews came up with the idea at Andersen Consulting, to create joint ventures with large multinationals to outsource the processing of back-office transactions.[6]
In 2000, Xchanging and BAE Systems created the first of these 'Enterprise Partnerships',[7] for HR services (see also[8]). A second followed soon after, again with BAE Systems, for indirect procurement.[9]
Two years later, Xchanging and Lloyd's of London created two more 'Enterprise Partnerships',[10] one for claims processing, and one for the London Insurance market’s back office system; the latter including the IUA[11] as a partner too. Further partnerships were signed with Deutsche Bank[12][13] in 2004 (launching Xchanging into the European financial market), Aon in 2006 (in broking services)[14] and Allianz GI[15][16][17] in 2007.
In 2007[18] Xchanging listed on the London Stock Exchange, entering the FTSE250.[19][20]
In 2009, Xchanging acquired[21] a 75% stake in Cambridge Solutions,[22] another outsourcing business. This acquisition was to deliver greater scale, broader international reach, and a number of platforms for future growth.[23]
In 2010,[24] Xchanging further expanded in the European financial sector by developing an eighth 'Enterprise Partnership' with Italian group, SIA-SSB.[25] As part of this 'Enterprise Partnership', Xchanging acquired 51% of Kedrios S.p.A. (Kedrios), the Italian subsidiary of SIA-SSB that specialises in securities processing and fund administration services for the Italian market. With this, Xchanging entered the Italian market. This market is one of the larger outsourcing markets in Europe.[26]
In mid 2010, Xchanging acquired security and technology communications company, Data Integration.[27] The company[28] is an IT services business in the United Kingdom. The company specialises in network security, application optimisation, mobility services, high performance networks, IP telephony and open access networks. Data Integration serves more than 300 customers in the UK, spanning the private and public sectors.
Based on a number of long-term Enterprise Partnerships and the acquisition of Cambridge Solutions, Xchanging reported a 35% revenue increase year-on-year to £750.4m, at the end of 2009.[29]
On 8 February 2011, David Andrews decided to step down from the Board and from the role of Chief Executive Officer taking on a new role as Senior Adviser to the Chairman to support the company's business development initiatives. During the search for a successor to Andrews in the role of CEO, Ken Lever, the Chief Financial Officer, assumed the role of Acting Chief Executive Officer in addition to his responsibilities as CFO whilst Xchanging's Chairman, Nigel Rich, became Executive Chairman.[30]
Xchanging's Enterprise Partnerships are formed with BAE Systems, Lloyd's of London, Deutsche Bank, Allianz AG, Aon and SIA-SSB.
Other notable partnerships that Xchanging have developed include deals with CAD IT[31][32] in Italy, Alexander Mann Solutions,[33] and Pegasystems.[34]
Customers include Boots,[35] Cooper Gay,[36] CHEP,[37] SELEX Galileo,[38] QBE,[39] Birds Eye,[40] American Express[41] and the London Metal Exchange.[42]
Xchanging operates on an Enterprise Partnership model forming joint ventures with large organisations in processing areas such as HR, accounting and procurement, as well as industry specific processing such as securities processing and insurance claims processing. Although the list of back-office processes which could be transformed is non-exhaustive.[43]
Xchanging provides procurement, finance and accounting, human resources, technology and customer administration services across industries.
Xchanging provides industry specific processing[44] for:-
Xchanging has offices in ten principal locations - Australia, France, Italy, Germany, India, Japan, Malaysia, Singapore, the UK and the USA.[45]
On Prime Minister David Cameron’s visit to India[46][47] in July 2010, CEO David Andrews revealed plans to create a new low-carbon state-of-the-art 1,000 person processing centre, with an option to scale to 2,000, in Shimoga,[48] a tier three town,[49] north-west of Bangalore. Speaking on the Shimoga project, British Prime Minister, Mr. David Cameron said, “I welcome this latest news from David and his team in Karnataka which showcases the very best of UK and Indian ingenuity and creativity. My government is keen to lay the foundations of an enhanced relationship between Britain and India for the decades to come, and Xchanging has demonstrated here in India what can be achieved by British companies when successfully opening up new markets around the world”[50]
Chief Minister of Karnataka, Mr. BS Yeddyurappa stated, “Entry of a multi-national in Shimoga is an indication of the potential of tier 2 and tier 3 cities of Karnataka. Xchanging’s association in joint development of the SEZ IT Park at Shimoga would usher in IT penetration in Tier 2 and Tier 3 cities. I congratulate Xchanging for this initiative”.[50]
Xchanging has been the title sponsor of the historic, annual boat race between the Oxford and Cambridge universities since 2005. From the 156th race, held on April 3rd 2010, the Boat Race officially came to be called the ‘Xchanging Boat Race’.[51][52]
The first Xchanging Boat Race, won by Cambridge after a gap of two years, drew record viewership[53] on television, online and along the River Thames with thousands of spectators lining the banks.