Xchanging
Encyclopedia
Xchanging PLC 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.
Xchanging employs over 8,000 people worldwide. It is listed on the London Stock Exchange
and is in the FTSE SmallCap Index
. Xchanging is also a member of the FTSE4Good Index
.
In 2000, Xchanging and BAE Systems
created the first of these 'Enterprise Partnerships', for HR services (see also). A second followed soon after, again with BAE Systems, for indirect procurement.
Two years later, Xchanging and Lloyd's of London
created two more 'Enterprise Partnerships', one for claims processing, and one for the London Insurance market’s back office system; the latter including the IUA as a partner too.
Further partnerships were signed with Deutsche Bank
in 2004 (launching Xchanging into the European financial market), Aon
in 2006 (in broking services) and Allianz GI
in 2007.
In 2007 Xchanging listed on the London Stock Exchange, entering the FTSE250.
In 2009, Xchanging acquired a 75% stake in Cambridge Solutions
, another outsourcing business. This acquisition was to deliver greater scale, broader international reach, and a number of platforms for future growth.
In 2010, Xchanging further expanded in the European financial sector by developing an eighth 'Enterprise Partnership' with Italian
group, SIA-SSB. 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
.
In mid 2010, Xchanging acquired security and technology communications company, Data Integration. The company 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.
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.
Other notable partnerships that Xchanging have developed include deals with CAD IT in Italy, Alexander Mann Solutions, and Pegasystems
.
Customers include Boots
, Cooper Gay, CHEP
, SELEX Galileo
, QBE
, Birds Eye
, American Express
and the London Metal Exchange
.
s 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.
Xchanging provides procurement, finance and accounting, human resources, technology and customer administration services across industries.
Xchanging provides industry specific processing for:-
, France
, Italy
, Germany
, India
, Japan
, Malaysia, Singapore
, the UK and the USA.
’s visit to India 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, a tier three town, 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”
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”.
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’.
The first Xchanging Boat Race, won by Cambridge after a gap of two years, drew record viewership on television, online and along the River Thames
with thousands of spectators lining the banks.
Outsourcing
Outsourcing is the process of contracting a business function to someone else.-Overview:The term outsourcing is used inconsistently but usually involves the contracting out of a business function - commonly one previously performed in-house - to an external provider...
company for business processes
Business process outsourcing
Business process outsourcing is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments...
, 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.
Xchanging employs over 8,000 people worldwide. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is in the FTSE SmallCap Index
FTSE SmallCap Index
The FTSE SmallCap Index is an index of small market capitalization companies consisting of the 351st to the 619th largest listed companies on the London Stock Exchange main market...
. Xchanging is also a member of the FTSE4Good Index
FTSE4Good Index
The FTSE4Good Index series is a series of ethical investment stock market indices launched in 2001 by the FTSE Group. A number of stock market indices are available, for example covering UK shares, US shares, European markets, and Japan, with inclusion based on a range of corporate social...
.
History and growth
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.In 2000, Xchanging and BAE Systems
BAE Systems
BAE Systems plc is a British multinational defence, security and aerospace company headquartered in London, United Kingdom, that has global interests, particularly in North America through its subsidiary BAE Systems Inc. BAE is among the world's largest military contractors; in 2009 it was the...
created the first of these 'Enterprise Partnerships', for HR services (see also). A second followed soon after, again with BAE Systems, for indirect procurement.
Two years later, Xchanging and Lloyd's of London
Lloyd's of London
Lloyd's, also known as Lloyd's of London, is a British insurance and reinsurance market. It serves as a partially mutualised marketplace where multiple financial backers, underwriters, or members, whether individuals or corporations, come together to pool and spread risk...
created two more 'Enterprise Partnerships', one for claims processing, and one for the London Insurance market’s back office system; the latter including the IUA as a partner too.
Further partnerships were signed with Deutsche Bank
Deutsche Bank
Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
in 2004 (launching Xchanging into the European financial market), Aon
Aon
Aon or AON may refer to:* Aon , son of Poseidon in Greek mythology* Aon , a genus of moths* Aon , a Latin trigraph* Aon, a composition by Jazz Pianist Harold Mabern, ca...
in 2006 (in broking services) and Allianz GI
Allianz
SE is a global financial services company headquartered in Munich, Germany. Its core business and focus is insurance. As of 2010, it was the world's 12th-largest financial services group and 23rd-largest company according to a composite measure by Forbes magazine.Its Allianz Global Investors...
in 2007.
In 2007 Xchanging listed on the London Stock Exchange, entering the FTSE250.
In 2009, Xchanging acquired a 75% stake in Cambridge Solutions
Cambridge Solutions
Cambridge Solutions is a leading Business Process Outsourcing provider in the information technology industry.Cambridge Solutions' U.S. headquarters is in Greenwich, Connecticut and its India headquarters is in Bangalore, India. It employs over 4,500 people in 62 worldwide locations...
, another outsourcing business. This acquisition was to deliver greater scale, broader international reach, and a number of platforms for future growth.
In 2010, Xchanging further expanded in the European financial sector by developing an eighth 'Enterprise Partnership' with Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
group, SIA-SSB. 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
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
.
In mid 2010, Xchanging acquired security and technology communications company, Data Integration. The company 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.
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.
Notable partners and customers
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 in Italy, Alexander Mann Solutions, and Pegasystems
Pegasystems
Pegasystems Inc. is a provider of Business Process Management software solutions and a Business rules Platform based in Cambridge, Massachusetts.-History:Pegasystems was founded in 1983 by Alan Trefler...
.
Customers include Boots
Boots UK
Boots UK Limited , is a leading pharmacy chain in the United Kingdom, with outlets in most high streets throughout the country...
, Cooper Gay, CHEP
CHEP
CHEP is an international company dealing in pallet and container pooling services, serving customers in a range of industrial and retail supply chains. CHEP is owned by Brambles Limited....
, SELEX Galileo
SELEX Galileo
SELEX Galileo is a major defence electronics company that specialises in surveillance, protection, tracking, targeting, navigation and control, and imaging systems. It is owned by the Italian company Finmeccanica....
, QBE
QBE
QBE may refer to:*QBE Insurance, a multinational insurance company*Query by Example, devised by Moshé M. Zloof at IBM Research during the mid-1970s*Microsoft Query by Example, derived from Zloof's original...
, Birds Eye
Birds Eye
__FORCETOC__Birds Eye is an international brand of frozen foods owned by Pinnacle Foods in North America and by private equity group Permira in Europe....
, American Express
American Express
American Express Company or AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States. Founded in 1850, it is one of the 30 components of the Dow Jones Industrial Average. The company is best...
and the London Metal Exchange
London Metal Exchange
The London Metal Exchange is the futures exchange with the world's largest market in options, and futures contracts on base and other metals. As the LME offers contracts with daily expiry dates of up to three months from trade date, along with longer-dated contracts up to 123 months, it also...
.
Operations
Xchanging operates on an Enterprise Partnership model forming joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
s with large organisations in processing areas such as HR
Human resources
Human resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
, accounting
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
and procurement
Procurement outsourcing
Procurement outsourcing is the transfer of specified key procurement activities relating to sourcing and supplier management to a third party — perhaps to reduce overall costs or maybe to tighten the company's focus on its core competencies...
, as well as industry specific processing such as securities processing
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
and insurance claims processing
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
. Although the list of back-office processes which could be transformed is non-exhaustive.
Xchanging provides procurement, finance and accounting, human resources, technology and customer administration 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 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 SWIFTSwiftThe swifts are a family, Apodidae, of highly aerial birds. They are superficially similar to swallows, but are actually not closely related to passerine species at all; swifts are in the separate order Apodiformes, which they share with hummingbirds...
managed infrastructure services to banks - Industrial, commercial and public – Including retailRetailRetail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
, real estateReal estateIn general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
, manufacturing and logisticsLogisticsLogistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and...
as well as services for the public sectorPublic sectorThe public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
in the USA and Asia-PacificAsia-PacificAsia-Pacific or Asia Pacific is the part of the world in or near the Western Pacific Ocean...
.
Locations
Xchanging has offices in ten principal locations - AustraliaAustralia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Malaysia, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, the UK and the USA.
Low-Carbon Shimoga Project
On Prime Minister David CameronDavid Cameron
David William Donald Cameron is the current Prime Minister of the United Kingdom, First Lord of the Treasury, Minister for the Civil Service and Leader of the Conservative Party. Cameron represents Witney as its Member of Parliament ....
’s visit to India 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, a tier three town, 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”
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”.
University Boat Race
Xchanging has been the title sponsor of the historic, annual boat race between the OxfordOxford University Boat Club
The Oxford University Boat Club is the rowing club of the University of Oxford, England, located on the River Thames at Oxford. The club was founded in the early 19th century....
and Cambridge
Cambridge University Boat Club
The Cambridge University Boat Club is the rowing club of the University of Cambridge, England, located on the River Cam at Cambridge, although training primarily takes place on the River Great Ouse at Ely. The club was founded in 1828...
universities since 2005. From the 156th race, held on April 3rd 2010, the Boat Race officially came to be called the ‘Xchanging Boat Race’.
The first Xchanging Boat Race, won by Cambridge after a gap of two years, drew record viewership on television, online and along the River Thames
River Thames
The River Thames flows through southern England. It is the longest river entirely in England and the second longest in the United Kingdom. While it is best known because its lower reaches flow through central London, the river flows alongside several other towns and cities, including Oxford,...
with thousands of spectators lining the banks.