1. Strategic outsourcing From network to business Franck Cormier - BT

2. The Digital Networked Economy Where connectivity has no more boundaries Connections, any time, any place, any device

3. The Digital Networked Economy the drivers of outsourcing Consolidation & restructuring Organisational agility More for less Customer centricity Hostile environment and increased competition

4. Targeted propositions Proven capability Global reach World-class partners Leveraging BT network expertise Exploiting BT practitioner experience BT is a global IT and networking services company with

5. BT already has a strong track record in outsourcing and networked IT services 19% revenue growth last year (>20% in France) “A surprise front runner in the ICT outsourcing race is BT” (source The Times 8th June 2004) BT signed more than 160 outsourcing contracts, with an estimated contract value of over £10 billion 60% of Fortune 500 companies and two third of the CAC40 rely on BT Our contracts range from Bradford and Bingley, worth £3.75m over 5 years, transferring all existing assets and 3 people transferred, to Unilever worth € 1billion, transfer of €20million of assets and transfer of up to 150 employees

6. Evidence of BT’s success

7. Thank you

9. Back up slides

10. New challenges and consequences in the digital networked economy The consequences for organisations are twofold: New opportunities to increase operational efficiency reach new customers and markets create new modes of organisation New challenges to manage increasingly complex business ecosystems to manage an increasingly competitive environment

11. The vicious circle... IT and communications systems- the key tools to help address business challenges Businesses frequently concerned with business continuity, security and network performance The pace of change distracts companies from core business 20 per cent of corporate IT spending fails to deliver What you buy today will be out of date in 18/24 months Less than 35% of integration projects come in on time and on budget. Sources: Gartner Group; Forrester Research.

12. Evidence of BT’s success Infrastructure NHS, £168m – Managed network/broadband TNT - European WAN Merrill Lynch - Global WAN Bank of America, Optical LIFFE, Storage Outsourcing Unilever, £640m- global voice and data Royal Mail, £500m (with CSC) HBOS, – Managed voice & data National Australia Bank, £145m – Managed ICT Bradford and Bingley - £140m- Managed voice & data Abbey National, £125m – Managed voice & data Hewden Stuart, Managed desktop CRM Capita - £18m, to support BBC licensing contract AXA - virtual call centre at 8 locations DWP - £170m, CRM solutions System Integration Essex County Council £164m Department of Work & Pensions £140m Edinburgh City Council Merrill Lynch Applications Mgt & Hosting Samsung, 5 years – Hosting Central Office of Info, Server Police Northern Ireland, Intranet Abbey National, £3.2m - Intranet Yorks & Humber, £5m - e-Learning CGEY, e-Commerce

13. BT is now delivering 87% of Unilever’s telecommunication services worldwide Financial performance on track 20% global saving to Unilever Service levels have (in the main) been maintained, improved or established for the first time Migrated services to BT’s infrastructure (TCO €25.899m) c. £50m of incremental revenue for BT 03/04 Extranet created - template for future 4 Remote Ops Centres established Expanded to boundary - LAN, Firewall Operational in 104 countries (60 new trading entities established) Scale: 104 Countries, €20m assets, c.840 existing contracts, c.400 3 rd parties c.100 staff, 13 Languages Facts & Figures Contract Value: €1bn, 7 years Scope: PABX, Handsets, Mobile, Dial-up, Fax, Video Conferencing, Calling Cards, Voice & Data, Router mgmt Asia Pac NAM LAM Europe AMET

14. Digital Networked Economy Drivers Convergence of IT and Communications markets creating significant business opportunities; No single provider can meet all requirements; Growing customer demand for seamless end-to-end service, with global reach; Strength of leading competitors – need to find differentiation to win the large complex opportunities; Growing opportunities for solutions in the Small-Medium and Enterprise market sectors.

15. BT in the Outsourcing Space We have been providing Managed Services since the 1980’s and signed our first outsourcing deal in 1992 with TSB We have signed more than 160 outsourcing contracts, with an estimated contract value of over £10 billion Our contracts range from Bradford and Bingley, worth £3.75m over 5 years, transferring all existing assets and 3 people transferred, to Unilever worth € 1billion, transfer of €20million of assets and transfer of up to 150 employees We partner with other key outsourcers - for Royal Mail we worked in a consortia with CSC and Xansa to deliver the £1.5billion solution, where around 1,700 people were transferred to the 3 partners We have provided outsourced operations across the globe, including Asia Pac, the Americas and Europe We can deliver the entire breadth of capability in our outsourcing solutions including networks, IT applications, integration, BPO and consulting

16. Pan-European Network Service Providers: Magic Quadrant Evaluation Criteria  service portfolio and coverage  client relationship (support, service & quality)  “mind share” and market share  pricing  corporate viability  product strategy  marketing and sales strategy  business and financial strategy  technology strategy  operational strategy

17. BT Global Services at a glance We are a £5.8bn division of BT, growing at 7% Our ambition is to be recognised internationally as the market leader in: Designing, developing and managing IT and communications systems, including outsourcing and business transformation services Focus on European multi-site organisations and Global organisations with European offices 21000 people around the world including 8100+ outside the UK and 8000 ICT professionals 25 years of experience in providing consultancy advice to a global customer base Global Services Products Carrier Broadcast Global Solutions Consulting & Systems Integration