Commercial BPO Analyst Briefing - Amazon Web...

Commercial BPO Analyst Briefing

November 3, 2010

Xerox Overview

Jim LeskoVice President Investor Relations

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The world leader in business process and document management.

Xerox + ACS = A New Class of Solutions Provider

3

billion public transport fares processed annually

million healthcare claims processed annually

million employees and retirees served by HR services

billion Euros in public funds processed and protected

million phone calls handled daily in our call centers

million+ output devices managed…many of them non-Xerox

million student loan borrowers served

Out of 50 states in the U.S. served by our business services

Country transportation authorities served

37 900 4.4

166 1.5 1.5

11 30+50

We are behind the scenes managing the essential processes that your business can count on to be successful

Xerox & ACSTouch Millions of Lives and Help Businesses Everyday

4

Information Technology Outsourcing

$250B

Xerox Market Opportunity Has Expanded Dramatically

Business Process Outsourcing

$150B+

$500+ Billion Addressable market

Document Management*

$132B

• Attractive

• Large and diverse

• Growing

Source: Internal Market Size Analysis*Includes document related BPO opportunities

$132 Billion Market

Office$81B

Production$25B

Document Outsourcing Services

$26B

5

Document Outsourcing

Strategic DirectionCore Strengths

OurBrand

GlobalPresence

Renowned Innovation

Growth StrategiesBusinesses

Document Technology

Services

Acceleratingcolor transition

I.T.Outsourcing

Advancing customized

digital printing

Expandingdistribution

Building valuethrough services

OfficeSystems

Business ProcessOutsourcing

OfficeSystems

ProductionSystems

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Agenda – Commercial BPO Analyst Briefing

Kent SchnackerFinancial Services

Jim LeskoXerox Direction and Introductions8:00 – 8:10 am

7:30 – 8:00 am Breakfast

Commercial BPO Tom Blodgett

8:10 – 9:30 am Commercial Healthcare Connie Harvey

Customer Care Chris Tranquill

9:30 – 9:40 am Break

9:40 – 10:50 am Tour of Lexington Operations

10:50 – Noon HR Services Ann Vezina

Commercial BPO wrap-up Tom Blodgett

Noon – 12:15 pm Break

12:15 – 1:15 pm Lunch and Roundtable

Tom BlodgettExecutive Vice President, COO CommercialACS, A Xerox Company

Commercial BPO Overview

A Rich History

The Power of Xerox Services

IT Outsourcing

Business Process Outsourcing

Document Outsourcing

proprietary workflow & process expertise

executive managementstrategic planningsales & marketing

actuariesclaims adjustment & processing

human resources & educationaccounting

customer serviceprocurement

records managementregulatory & compliance

loan processinglitigation support

managed print services

information technology outsourcingbusiness & technology consulting

application development & maintenance

systems integrationenterprise software

hardware

Xerox is uniquely positioned in all three service areas

We operate 9 Lines of Business (LOBs) with diverse service offerings and focused management

• Wireless customer care: customer acquisitions, device support, loyalty plans & collections

• Retail: supply chain efficiency, inventory mgmt., data collection

• Travel: back office processing, customer care, on‐line check‐in

• Transportation & Logistics: admin., customer care, marketing, consulting

• Data center outsourcing• Network management

services• Desktop management• Help desk• Remote Infrastructure

Management

• Medicaid administrative & fiscal agent solutions

• Pharmacy benefits management services

• Children’s health administration

• Electronic health records

IT Services

BPS Customer CareChris Tranquill

Government Healthcare

BPS ‐ Business Process Solutions Operations (≈ 9%)

ITO – Commercial IT Services (≈ 15%)

GHS – Government Healthcare (≈ 9%)

HR, F&A, EducationAnn Vezina

HRS – Human Resource Services (≈ 13%)

• HR Consulting: retirement, health, compensation

• HR Outsourcing: Employee service center, data management, payroll

• Total Benefits Outsourcing: 401(k), pension, health self‐service portal

• Learning: technology services, content development, administration

• State: Child support payment processing, tax and revenue systems, eligibility determination & case mgmt, electronic benefits transfer, unclaimed property services, IT services

• Local: IT services, government records mgmt, public safety and justice systems

• Federal: Student loan servicing, healthcare claims processing, electronic payment cards, administrative services, customer care

State, Local & Federal

GS – Government Services (≈ 18%)

• Healthcare payer claim processing, billing, payment, reconciliation,

• Healthcare payer customer care, web‐based self service

• Cost recovery, audit, cost avoidance

Healthcare PayerConnie Harvey

HPI – Healthcare, Payer & Insurance (≈ 9%)

• Electronic toll collection• Fare payment & collection• Commercial carrier solutions• Automated motor carrier tax

& regulatory processing• Public safety photo

enforcement• Traffic & parking

management• DMV customer care

Transportation Solutions

TS – Transportation Solutions (≈ 12%)

Healthcare Provider

HPA – Healthcare Provider & Applications (≈ 6%)

• Consulting solutions• Revenue cycle

management• Analytical care

management & workflow solutions

• Application services

• Commercial Education: student loan svcg, student financial aid, enrollment management

• Financial Services: data processing services to auto finance & leasing

• Mortgage: imaging, processing, admin

• Financial: credit card applications & customer care, lease administration

• Finance & Accounting: A/P, A/R, close process, procurement, treasury & cash mgmt., expense reimbursement

Financial ServicesKent Schnacker

FSG ‐ Financial Services Group (≈ 9%)

Commercial LOBs

Note: Revenue contributions are approximate

Future margins depend on revenue mix

Leverageable platforms drive highest margins

Commercial Services Group Business Mix

Note: The graphic is a relative representation of the commercial services ongoing lines of business

Summary

• Global Delivery Model

• Service and Operational Excellence

• Vertical and Horizontal Focus

• Technology and Innovation

Commercial Healthcare Services

Connie HarveyGroup President Healthcare Payer and Insurance

Commercial Healthcare Strong Position

Percent of the top 10 BCBS organizations are clients

Million healthcare claims processed per year

Of US’ insured population is touched by ACS services

Payer organizations supported by ACS

900+ 2/3

75 Billion dollars in revenue generated by Healthcare clients~2

100

Of the top 20 US managed health plans are ACS clients19

Commercial Healthcare Services Revenue Split

Commercial Healthcare Services Position in Portfolio

Transactional

Recovery Services Print / Mail

Customer Care

Note: Graphics are relative representations of the commercial services ongoing lines of business

Horizontal OfferingTransaction processingCustomer carePrint/mailPayment recoveries and audits

A Changing Payer Market32 million new consumers will access healthcare starting in 2014Payers under heavy pressure to lower medical loss ratios (MLRs) due to health reform - opportunity for increased outsourcing

Our StrengthsBPO market leaderExtensive payer knowledge & experienceBest of breed technologiesFinancial stabilityOperational excellenceHealthcare ecosystem solutions

We Help ClientsCreate growthFocus on their core businessDiversifyDecrease costs while improving quality

Why Commercial Healthcare Services?

Pharma and Life Sciences

Payers Government EmployersProviders

• Analytics• Document Supply

Chain Management• Enterprise Print Services• Enterprise Marketing

Services• Patient Record

Management and Claims Processing

• Revenue Cycle Management

• Systems Integration/ EMR Consulting

• Analytics• Customer Care• Document Supply

Chain Management• Finance and

Accounting• Enterprise Print Services• Enterprise Marketing

Services• Human Resources• Transaction BPO

• Communication Services• Cost Avoidance and

Recovery• Customer Care • Document Supply Chain

Management• Enterprise Marketing

Services• Enterprise Print Services• Finance and Accounting • Human Resources• Membership / Billing• Third-Party Liability• Transaction Processing

• Document Supply Chain Management

• Eligibility/Health Insurance Exchanges Enterprise Print Services

• Enterprise Marketing Services

• Fraud and Abuse• Health Analytics &

Reporting• Health Information

Exchange/Electronic Health Record

• Medicaid Fiscal Agent and MMIS

• Pharmacy Benefits Management

• Actuarial Services• Benefit Consulting• Communications• Document Supply

Chain Management• Enterprise Print Services• Enterprise Marketing

Services• Finance and

Accounting• Human Resources• Plan Administration

Our Healthcare Ecosystem

Connecting the Healthcare Ecosystem

Evidence Based Medicine

Cost of Care Focus

Specialization and New Markets

Innovative Culture

Key Differentiators

Healthcare Solution Set

Aggregation and Leverage

Operational Expertise

Scale and Flexibility

Customer Base

Healthcare Expertise

Growth Focus Areas

Innovation

Healthcare Chief Innovation Officer –Markus Fromherz

Outside in Focus – Leveraging Xerox Innovation Acumen and Customers in

Innovation Process

Innovation Focused on Technology, Process and Business Model

Innovation AreasUnstructured Data, Data Extraction, Storage, Integration and AnalyticsIndividualized Communication and InteractionsDevice IntegrationClinical Rules Automation

OrganicStrong Hunter and Farmer Model

Penetrate, Radiate and Replicate

Focuses for Organic GrowthEMR Adoption and Value ExtractionManaged Medicaid and New Risk Bearing Entities (ACO, IDN, and PHO)Health Information Exchanges (HIEs) and Insurance ExchangesCustomer Acquisition: Allow Customers to Monetize Assets and Create Value

Adjacent

Markets

New Capabilities, Customers or Markets

Cultural Fit, Strong Management Team and Working Business

Adjacent MarketsPharma ServicesSelling and Engaging the ConsumerFraud, Waste, Abuse, and RecoveryMedication AdherenceClinical Data Analytics

Sales Synergies: Health Insurer

• Lack Document and Data Integration Strategy

• Lack Solution Flexibility

• Silo’d “technology pilots”/infrastructure

• Redundant Costs

Win Details

• Health Insurer

• Enterprise Transformation Approach

• Significant long term opportunities

• Enterprise Transformation Consultative Approach

• Deep business process, document, and data management expertise

• Broad portfolio of services to address enterprise needs

• Positions Xerox to secure significant BPO services leveraging our broad portfolio of capabilities

• Long-term solution components– BPO: Digital Mailroom, Client Support,

Customer Care & Transaction Processing– CMS: Outbound Communications– ITO: Hosted Document Mgmt & Workflow– EPS: Managed Print Services

Client Challenges

Deal Clincher Significance of the Deal

EmployerSolutions

PharmaSolutions

PayerSolutions

GovernmentSolutions

ProviderSolutions

Core Strengths Growth StrategiesHealthcare Businesses

Provide solutions that address the administrative cost

pressures

Provide scale, technology and care management

capabilities to the public health programs

Deliver analytic and care management solutions

Deploy a connected health information ecosystem powered by data and

innovation

OurBrand

GlobalPresence

Renowned Innovation

Overall Healthcare Strategy

Customer Care Services

Chris TranquillGroup President Business Process Solutions

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Customer Care Global Processing Power

thousand contact center agents

contact center locations

years of experience in customer care

languages million contact center calls/ interactions daily

34 150 22

60+ 1.5 consecutive year winning J.D. Power certification4th

Customer Care Services Position in Portfolio

Customer Care Services Revenue Split

Customer Care

Technical Support

Retention / Loyalty

Sales

Social CRM


Customer Acquisition

Customer Onboarding

• Consultancy and Analytics

• Digital Creative Services

• Campaign Management Services

• Data Management Services

• Translation and Localization

• Master Vendor Services

• Order Management

• Onboarding Services

• Credit Card Application

• Communications Engineering

• Telesales/Telemarketing

• Technical Support Services

• Outbound and Inbound Call Center Service

• Customer Service and Sales Support

• Relationship management

• Multi-Channel – Multilingual Fulfillment Service Centers

Customer Care

CustomerRetention & Loyalty

• CRM and Predictive Analytics

• Customer Data Integration

• Response Management Services

• Retention and Loyalty Management

• Social Media CRM

• Performance Management

Why Customer Care – Our Value Proposition

Drive Top LineRevenue

Increase CustomerSatisfaction Reduce Costs Increase Market

Share

Differentiators & Value Proposition

Customer Pain Points• No 360-degree View of Customer• Customer Churn• High Cost to Serve• Customer Satisfaction• Not Enough Customer Intelligence• Limited Customer Communication

Differentiators and Value Proposition

Benefits• Higher customer satisfaction• Reduced customer churn• Better customer intelligence• Lower costs reduced calls to the call

center shorter call handle times

Building on Our Success in Customer Care

Inno

vatio

n• Invest in Clients

• Align with Clients’ Brands

• Maintain Supportive Organization Model

• Motivate through Achievement-Based Compensation

• Connect Touch-Points through Multi-Channel Strategy

• Price According to Business Outcome

• Drive Customer Insight via Analytics

Sales Synergies: Case Study

Win DetailsClient: Tier 1 Wireless ProviderScope: 600+ Agents

Post Paid Customer Care

Deal Clincher

Supportive organization aligned with Customer Culture – Dynamic Organization

Rapid deployment and steep launch in Customer Footprint

SBU structure – Accountability to results

Achievement-Based Compensation

Xerox Facility in Customer Coverage Area

Client Challenges

Significant increase in smartphone adoption driving increased call volumes

Primary differentiator in wireless space is customer experience – need partners who deliver quality

Outdated Technology (IVR, KM, Performance Management)

Significance of the Deal

First synergy deal

Competed with multiple tier 1 BPO’s

ACS now has 4 of the top 5 Wireless providers as clients

Our Strategy for Customer Care

Our Vision:Maximize the customer experience by optimizing every touch point with the customer, resulting in our becoming the true global player with presence in Europe, Eastern Europe and Asia.

Our growth strategy• Optimize every touch point that our clients have with their customers

(call center, billing/invoicing, marketing, social media, self-service, translations, etc.)• Combine adjacent technologies and discrete process offerings to create a complete

customer experience• Partner with best-of-breed technology partners to leapfrog technology platform

adoption• Leverage the Xerox Global Account Management infrastructure• Identify possible acquisition candidates in key regions• Expand sales team to quickly acquire new clients

Financial Services

Richard K. SchnackerGroup PresidentFinancial Services Group

FSG Quick Facts

Million documents are imaged, indexed and

transacted each day

Thousand tier 1 consumer calls

per month

Billion consumer loan servicing

portfolio

Billion in payables processed

Of the Top 12 FORTUNE 500

financial services companies are

clients

Billion in receivables processed

Million credit card application

processed per month

Million Residential mortgage images

per month

Billion checks stored on 15

million roles of film

10 200 $65

$421 10 $235

3 20 375

Financial Services Position in Portfolio

FSG Services Revenue Split


Why Financial Services & F&A?

Attractive market sizeEstimated global market of $82 Billion for FSG Services.The overall consumer and commercial lending BPO opportunity in the U.S. is $53 billion, and 77% of the market is untapped

F&A is a horizontal offeringEvery company needs itComplimentary to other ACS horizontal offering HR and Customer Care

ACS multi-national capabilities combined and Xerox global presence aligns with worldwide market demand for financial BPO services

Complements ACS strengthsMarket leader in the student loan segmentEnd-to-end BPO capabilities across credit cards, consumer loans, and commercial loansLeveraged platform model and global footprintRecurring revenue through long-term contractsDemonstrated success in integrating acquisitions

Providers starting to specialize around specific solution setsFinancial institutions with assets between US$10 – 500 billion represent an attractive segmentBuyers are willing to consider a “phased adoption” towards end-to-end outsourcingThe consumer loans segment is particularly attractive since it presents a favorable combination of relatively high outsourcing potential and limited competition

Delinquency Management

• Early Stage Collections

• Late Stage Collections

• Debt Discharge

Technology

• Consumer & Commercial Loan Origination

• End-to-End Consumer & Commercial Loan Servicing

• End-to-End Brokerage Sales Reporting & Fulfillment

• End-to-End REIT & Limited Partnership Services

Business & Portfolio Management

•General Ledger Reporting

•Investor Reporting

•Compliance

•Cash Management

•Ad Hoc Reporting

•Data Management

•Technology Platform

•Tax Reporting

Document Management

• Print, Mail, Postage

• Mail Room Management

• Scanning & Indexing

• Storage & Hosting

• Document Checking

• Custodial Services

Customer Service & Support

• Account / General Inquiries

• Account Maintenance

• Web Services

• Customer Billing / Notices

• Transaction / Payment Processing

• Customer Correspondence

• Cross-Selling

Our Financial Services Value Proposition

Customer Acquisition

• Activations

• Origination

• Underwriting

• Disbursement

Reduce Costs Increase Revenue Improve Customer Service

Gain Customer Wallet Share

Our F&A Value Proposition

Shift Resources to Core Business Increase Visibility Enhance Security

and ComplianceReduce Operating Cost

and Capital Expenditure

Procure to Pay

• Sourcing

• Accounts Payable

• Dispute Resolution

• Vendor Setup

• Procurement

• Travel & Entertainment

Order to Cash

• Contract Management

• Collections

• Cash Applications

• Exception Management

• Credit Risk Management

Treasury & Payroll

• Payroll

• Bank Operations

• Cash Forecasting

• Risk Management

• Closing and Reporting

• Allocations

• Rating Agencies

Accounting, Closing & Reporting

• Accounting: Monthly, Quarterly, Annual G/L Closing,

• Fixed Assets

• Reconciliation

• Intercompany, Accrual and Reserve

• Account Reconciliation

• Reporting: Statutory, SEC and US GAAP

• Tax Filing

• Management Reporting

Financial Planning & Analysis

• Revenue, Cost, P&L, Balance Sheet and Cash Flow Analysis

• Short Term and Long Term Budget Planning

• Variance and Issue Analysis

• Other Business/Ad hoc Analyses

Key Differentiators

Innovations

End-to-end Solutions

Operations Partner

Global Reach and Brand

CustomerIntimacy

Subject Matter Expertise

Innovation Synergies

• Leverage Xerox Smarter Document Technology• Leverage Xerox Image and Correspondence Translation technology • Leverage Xerox Multi-application Predictive Analytics• Leverage Xerox Autobot Technology

Key Innovation Initiatives

Expected Results

• Reduce labor costs• Improve ability to serve clients from the lowest cost center regardless of

language• Accelerate processing time from days to hours/minutes• Improve quality • Bring meaningful use to unstructured data

Sales Synergies: Case Study (Atos Origin)

Client ChallengesImproved accounts payable servicesImproved accounts receivable servicesImproved general accountingImproved cost, control, and technology

Significance of the DealExpansion of global client footprintProvides new Eastern European low cost location for commercial client leverageHigh long-term growth potential

Win DetailsLeading Global Technology Services CompanyFinance & Accounting Administration

Deal ClinchersExisting relationship with Xerox“This relationship will help build a secure foundation to deliver successful services and solutions to improve operational efficiency at Atos Origin”- Michel-Alain Proch, Group CFO of Atos Origin

Our Strategy for Growth

Expand globally

Invest in solutions, sales,

partners

Create synergy value

Build deeper Industry

leadership

Our Vision: Become a leading provider of global financial BPO and F&A services

Selectively pursue

acquisitions

Human Resource Services

Ann VezinaGroup PresidentHuman Resource Services

Million employees and retirees served

Languages supported for employees and participants

HR Services Quick Facts

Major HR service centers located around the world

Countries receiving ACS HR services

Million plus learners supported in over 130 countries

Million hours of professional certifications tracked and managed annually

Thousand hours of instructor-led and web-based learning completed for clients

Million dollars of investment in HRS innovation over the past 22 months

9.8 18 72

23 3 2.2

50 50 Years of benefits delivery experience30

HR Services Position in Portfolio

HR Consulting

Total Benefits Outsourcing

Human Resource

Outsourcing

Learning Services

HR Services Revenue Split


Why Human Resource Services?

Horizontal OfferingEvery company needs itComplimentary to other ACS horizontal offering F&A, and Customer Care

Attractive market sizeEstimated global market of $41 BillionProjected 3-year market growth of 9%

ACS is in top tier in the global market Hewitt/AON and IBM are two primary competitors

ACS multi-national capabilities combined and Xerox global presence aligns with worldwide market demand for HR services

Complements ACS strengthsSubject matter expertise in HRLeveraged platform modelRecurring revenue through long-term contractsTransactional-based pricing modelLeverages global footprintUtilizes IT heritage Contracts entering 2nd generation of outsourcing contracts– More mature clients, advisors and prospects

Providers starting to specialize around specific solution sets

Benefits plus point solutionsPayroll plus point solutionsRecruiting plus point solutions

Complements other ACS offerings to enable cross-selling

Broad, Integrated Global Service Offerings

HR OutsourcingTotal Benefits,Benefits Administration

Learning ServicesHR Consulting –Buck Consultants

• Learning Admin• Content Development• Content Delivery• Instructor-led, e-

learning and virtual classroom

• Forecasting, reporting, logistics and learner care

• Tuition management services

LearningEmployeeBenefits

• Health and Welfare• Defined Benefits• Defined Contribution• Absence Management• Occupational Health

Multi-Process

• Employee service center• Employee data management• Payroll• Global mobility• Compensation• Talent management• HR analytics

HR Strategy & ThoughtLeadership

• Strategic Planning• Change Management• Employee

Communication• Compensation• Health and

Productivity• Human Capital

Management• HR Transformation• Retirement

HR Services Differentiators

Operational Excellence

• HR domain-experienced operations team • Reliable operations partner

Global Breadth and Depth

• “One-Source” global provider from planning to execution

• Global consistency

TechnologyInnovation

• Reduced client capital expenditure requirements • Perpetual leverage of R&D

Improved ParticipantExperience

• Innovative, “user-friendly” benefits portal• Engaging, interactive 3D “Virtual Worlds” technology

Value Proposition Client Benefits

Mobile AppsGlobal Benefits Portal iHealthCoach®

Mobile LearningHealth Care Reform

My Medicare Advocate

Innovation: Changing the HR Experience

Predictive Analytics

• Find a way to unseat a strong incumbent provider

• Mitigate the fear of change

The Solution The ResultsThe Challenge

Benefits Administration

SignificantLong-Term Savings

Sales Synergies: Case Study

Replace with a picture

• Leverage existing relationship with Xerox

• Improve open enrollment experience• Improve service center operation• Improve participant experience• Improve incremental capability• Demonstrate innovation

• Won the business from a major competitor

• Provides an entry point into a global icon consumer goods company

• High long-term growth potential• Annual enrollment employee

satisfaction ratings exceeding P&G’sexpectations

• Innovation: “Two years ago we thought you had no innovation. Today we are giving you our business because of your innovation.”

Our Strategy for HR Services

Acquire Selectively Expand Globally Leverage Innovation

Strategically add to or strengthen our capabilities

Double our non-U.S. business

Leverage innovation to drive

organic growth

Our Vision:To be the Leading Provider of Human Resource Services and Support to Organizations Worldwide

Commercial BPO Analyst Briefing - Amazon Web...

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