BT Group is a global telecommunications company operating in over 170 countries with over 100,000 employees and $29.4 billion in revenue. Their finance organization has transitioned over time to utilize shared services organizations (SSOs) and outsourcing partners to increase efficiency. They have built regional insourced SSOs in the UK and India as well as global outsourced SSOs. The benefits and tradeoffs of insourced regional versus outsourced global models are discussed.

1. A BT Group Case Study:
Finance Transformation – Regional or Global SSC
Ralph Geertsema Head of Finance Systems EMEA
BT Group plc, London

2. BT Group: Our Company
• Operating in 170+ countries
• 100,000+ employees
• $29.4bn revenue (FY 07/08)
• Principal activities:
– Networked IT services
– Local, national & international
telecommunication services
– Broadband and internet services
– Converged fixed /mobile solutions & services
• Headquartered in London/U.K.

3. Our Finance Organisation
• UK + CZ/HU + India + Brazil
• UK + India
• 700+ FTE
Finance • 60+ FTE
Systems*
Specialist
Global Centres of
Transaction Excellence
Processing
BT
(UK)
SSC* Finance
• UK + India
Decision Business Insight
• 400+ FTE
Support
(UK)
SSC*
* Part of Reporting, Planning & Analysis division

4. Finance Transformation
Enablers
SSO Outsourcing
Technology
Underpinned by common systems & standard processes
Driving Finance
Efficiency and
Effectiveness

5. SSO & Outsourcing:
The Changing Mix
% Total FTE
100%
90%
80%
70%
60% Non-SSC
insourced SSC
50%
outsourced SSC
40%
30%
20%
10%
0%
2002 2005 2008 2011
BT has built a Shared Services Organisation over time, increasing its
partnerships with Third Party BPO’s. in the last 3 years we have build
out our in sourced SSC presence

6. SSO & Outsourcing:
The Changing Mix
• Flexibility regarding • Process strength
scope
• Discipline
• Control over resources
• Clear cost of incremental
• Reduced control activities
overhead
Insourced Outsourced
Regional Global
• Proximity to Customer
• Cultural intimacy • Scale
• Flexibility • Access to Capacity
• Focus on customer • Low Cost environment
deliverables

7. Core quality quadrants

8. Core quality quadrants –
Outsourced Global
Core quality Pitfall
+ -
- +
Allergy Challenge

9. Core quality quadrants –
Insourced Regional
Core quality
Pitfall
+ -
- +
Allergy Challenge