Xchanging

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Xchanging A CSC company
Public (LSEXCH)
Industry Technology
Founded 1999
Headquarters London, United Kingdom
Key people
Geoff Unwin (Chairman)
Craig Wilson (CEO)
David Bauernfeind (CFO)
Revenue £440.2 million (2015)[1]
Number of employees
7,000 (2015)[2]
Website www.xchanging.com

Xchanging PLC is a business process and technology services provider and integrator, owned by CSC, with a wide range of multinational customers across many industries in 48 countries.

Xchanging provides technology-enabled business solutions to the global commercial insurance industry. 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.[3]

Xchanging employs over 7,000 people worldwide.[4] Xchanging offers IT outsourcing, infrastructure including network managed services, software products and application management. It also sells procurement services.

It was listed on the London Stock Exchange until it was acquired by CSC in May 2016.

History[edit]

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.[5]

In 2000, Xchanging and BAE Systems created the first of these 'Enterprise Partnerships',[6] for HR services (see also[7]). A second followed soon after, again with BAE Systems, for indirect procurement.[8] In 2012, Xchanging entered the US Indirect Procurement market through an agreement with U.S. based BAE Systems representing $800 million in spend to be addressed over 7 years.[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 a 75% stake in Cambridge Solutions,[21] another outsourcing business. This acquisition was to deliver greater scale, broader international reach, and a number of platforms for future growth.[22]

In 2010,[23] Xchanging further expanded in the European financial sector by developing an eighth 'Enterprise Partnership' with Italian group, SIA-SSB.[24] 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.[25]

In mid 2010, Xchanging acquired security and technology communications company, Data Integration.[26] The company[27] 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.[28]

On 8 February 2011, Xchanging issued a profit warning and announced a £100 million write-off on goodwill. David Andrews stepped down with immediate effect and became "senior adviser to the chairman", Ken Lever assumed the role of Acting Chief Executive Officer in addition to his role as CFO.[29][30]

In May 2016, CSC acquired Xchanging plc in a deal valued at £480 million, or approximately US$720 million.[31]

Notable partners and customers[edit]

Xchanging's partners include Lloyd's of London, Deutsche Bank, Allianz AG, Aon and SIA-SSB.

Other notable partnerships that Xchanging has developed include deals with CAD IT[32][33] in Italy, Alexander Mann Solutions,[34] and Pegasystems.[35]

Customers include Boots,[36] Cooper Gay,[37] CHEP,[38] SELEX Galileo,[39] QBE,[40] Birds Eye,[41] American Express[42] London Metal Exchange,[43] and the Liberty Mutual[44]

Operations[edit]

Xchanging works 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.[45]

Xchanging provides services across industries.

  • Procurement – Managing direct & indirect spend and sourcing strategies
  • Finance and accounting - Processing of receipts and payments, net settlement and clearance
  • Human resources - Providing employment services from recruitment through to payroll and pensions payment, back-to-work and medical compensation schemes
  • Technology – Design, build and run IT infrastructure and software
  • Customer administration - B2B and B2C services to support customer's customer

Xchanging provides industry specific processing[46] for:-

  • Banking and securities – Processing securities transactions and retail investment accounting
  • Insurance – Processing of insurance policies, premiums & claims, and broker annuity
  • Other financial services - IT systems & hosting for exchanges, processing services for fund managers, investors, as well as SWIFT managed infrastructure services to banks
  • Industrial, commercial and public – Including retail, real estate, manufacturing and logistics as well as services for the public sector in the United States and Asia-Pacific.

Locations[edit]

Xchanging has offices in ten principal locations - Australia - Insurance and Procurement, France - RTO and Nasdaq, Italy - Monetary Policy and Compensation, Germany, India, Japan, Malaysia, Singapore, the UK and the United States.[47]

Low-Carbon Shimoga Project[edit]

On Prime Minister David Cameron's visit to India[48][49] 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,[50] a tier three town,[51] 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 of when successfully opening up new markets around the world"[52]

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".[52]

University Boat Race[edit]

Xchanging was the title sponsor of the historic, annual boat race between the Oxford and Cambridge universities from 2005 until 2012. From the 156th race, held on April 3, 2010, the Boat Race was officially called the ‘Xchanging Boat Race’.[53][54]

The first Xchanging Boat Race, won by Cambridge after a gap of two years, drew record viewership[55] on television, online and along the River Thames with thousands of spectators lining the banks.

References[edit]

  1. ^ "Xchanging - Business Processing, Procurement and Technology Services Provider" (PDF). Xchanging plc. Retrieved 13 May 2016. 
  2. ^ "Download Area" (PDF). Xchanging plc. Retrieved 13 May 2016. 
  3. ^ Annual Report 2009 Archived April 14, 2010, at the Wayback Machine., page 4
  4. ^ "Investing in Xchanging". Xchanging plc. Retrieved 13 May 2016. 
  5. ^ The Power of Partnerships Archived July 11, 2011, at the Wayback Machine.
  6. ^ BPO Enterprise Partnerships Archived March 12, 2012, at the Wayback Machine.
  7. ^ Xchanging UK Limited (17 January 2007). "Xchanging Acquires BAE Systems' Remaining 50% Share in Jointly Owned HR Services Company". Retrieved 13 May 2016. 
  8. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  9. ^ Reuters Editorial (17 August 2011). "Xchanging and BAE Systems Inc Sign Seven Year US Procurement Outsourcing Services Contract". Reuters. Retrieved 13 May 2016. 
  10. ^ Lloyd's Press Release Archived September 28, 2011, at the Wayback Machine.
  11. ^ "IUA of London". Archived from the original on June 26, 2007. Retrieved 13 May 2016. 
  12. ^ "Xchanging takes majority stake in Deutsche Bank transaction subsidi...". Finextra Research. Retrieved 13 May 2016. 
  13. ^ "Deutsche Bank Annual Report 2004 - Transactions Xchanging". Retrieved 13 May 2016. 
  14. ^ "Aon Outsources London Market Processing Operations to Xchanging". Insurance Journal. 14 August 2006. Retrieved 13 May 2016. 
  15. ^ Sophie Brodie (24 August 2007). "Xchanging in £270m Allianz deal". Telegraph.co.uk. Retrieved 13 May 2016. 
  16. ^ Allianz Outsoucring Deal Archived July 11, 2011, at the Wayback Machine.
  17. ^ Allianz Press release Archived March 1, 2012, at the Wayback Machine.
  18. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  19. ^ The Guardian
  20. ^ "Xchanging Prepares IPO". Insurance Journal. 27 March 2007. Retrieved 13 May 2016. 
  21. ^ "Xchanging to acquire Cambridge for 83 mn pounds". Economic Times. 5 October 2008. Retrieved 13 May 2016. 
  22. ^ "Xchanging acquires 75% stake in Cambridge Solutions". Finextra Research. Retrieved 13 May 2016. 
  23. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  24. ^ "Xchanging completes SIA-SSB deal". Finextra Research. Retrieved 13 May 2016. 
  25. ^ "Europe goes mad over outsourcing". Retrieved 13 May 2016. 
  26. ^ "Xchanging snaps up network security business Data Integration for up to £9 million". Proactiveinvestors UK. 21 June 2010. Retrieved 13 May 2016. 
  27. ^ "Data Integration". Data Integration. Retrieved 13 May 2016. 
  28. ^ "Xchanging PLC, XCH:LSE financials - FT.com". Retrieved 13 May 2016. 
  29. ^ Fletcher, Nick. "Outsourcing group Xchanging halves in value after profit warning". The Guardian. 
  30. ^ "Xchanging PLC - Trading Statement". Retrieved 13 May 2016. 
  31. ^ "CSC Makes Cash Offer for Xchanging Plc.". Computer Sciences Corporation. Retrieved 2016-02-25. 
  32. ^ CAD IT (5 February 2007). "CAD IT & Xchanging Sign an Exclusive International Partnering Agreement /PR Newswire UK/". Retrieved 13 May 2016. 
  33. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  34. ^ The Recruiter, Alexander Mann Solutions Archived October 4, 2011, at the Wayback Machine. forms strategic alliance with Xchanging]]
  35. ^ "Latest Financial News, Stock News, Forex News and Commodity Market News - Euroinvestor". Retrieved 13 May 2016. 
  36. ^ "You searched for xchanging and boots sign seven year 400 million outsourcing contract - HRO Today". HRO Today. Retrieved 13 May 2016. 
  37. ^ Barbara Hahn. "Cooper Gay signs outsourcing contract with Xchanging". Retrieved 13 May 2016. 
  38. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  39. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  40. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  41. ^ "News". Xchanging plc. Retrieved 13 May 2016. 
  42. ^ "CrainsCleveland.com : Subscription Center". Retrieved 13 May 2016. 
  43. ^ "London Metal Exchange: Home". Retrieved 13 May 2016. 
  44. ^ "Leading Insurance Broker Marsh Appoints Xuber to Provide Core Broking Software". Xchanging plc. Retrieved 13 May 2016. 
  45. ^ Business World, We are Fairly Industry Agnostic Archived August 9, 2010, at the Wayback Machine.
  46. ^ "Insurance Claims Management Software Services and Solutions - Xchanging". Xchanging plc. Retrieved 13 May 2016. 
  47. ^ "Xchanging Geographic Reach". Xchanging plc. Retrieved 13 May 2016. 
  48. ^ "British PM David Cameron gifts 2,000 jobs to Shimoga". dna. 29 July 2010. Retrieved 13 May 2016. 
  49. ^ Watt, Nicholas (27 July 2010). "David Cameron seeks to impress India with his massive delegation". The Guardian (London). 
  50. ^ "Sleepy Shimoga to go global". Deccan Herald. Retrieved 13 May 2016. 
  51. ^ "Economy". EGOV Monitor. Archived from the original on March 12, 2012. Retrieved 13 May 2016. 
  52. ^ a b "News". Xchanging plc. Retrieved 13 May 2016. 
  53. ^ Rachel Quarrell (20 November 2009). "University Boat Race to have title sponsorship from 2010 onwards". The Daily Telegraph (London). 
  54. ^ "Xchanging becomes title sponsor of The Boat Race". The Boat Race Company. Archived from the original on November 21, 2009. Retrieved 2009-11-20. 
  55. ^ "Latest news". University of Cambridge. Retrieved 13 May 2016. 

External links[edit]