Business Process Outsourcing. Transform the way you do business

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1 Business Process Outsourcing Transform the way you do business

2 Do what you do best, and outsource the rest. Peter Drucker

3 Business Process Outsourcing helping you become a more Adaptive Enterprise Today s business world is marked by change, complexity and the need to rapidly adapt to new market demands without losing momentum on strategic objectives. Successful companies create lean organizations that focus on their core competence and outsource or partner for activities that are not strategically critical and not essential to differentiating the company. Typically these activities include the transactional and tactical points of finance and accounting, human resources, procurement, and sales and marketing. In particular, companies look to Business Process Outsourcing (BPO) to: Focus management attention on strategic issues rather than low value-add transactional activities Reduce operating costs by outsourcing to service providers who can take advantage of labor arbitrage, better IT systems and improved scale Improve financial controls and regulatory compliance Increase the speed and quality of business processes, leveraging a provider s expertise, best practices and continuous quality improvement Increase operational flexibility and minimize use of capital Enrich processes with modern technology and tools Enhance transparency of operations Outsourcing non-core activities frees up capital, people and technology, allowing you to concentrate on your core business and to increase the agility of your operations. Often, cost savings of up to 50 percent can be achieved while at the same time improving the quality of your processes. With BPO, your company can become a leaner, more Adaptive Enterprise. Many industry-leading companies like Procter & Gamble, Nokia, Ford and Aventis have started to outsource part of their operations. Those companies that do not recognize the new business imperative of focusing on what is core to their business and outsourcing the non-core activities risk being left behind in the race for increased competitiveness. 3

4 HP is uniquely positioned to respond to your outsourcing needs Engaging in Business Process Outsourcing is a major transformational challenge for any organization. It requires a partner who understands your business requirements, who has experience in managing processes to world-class performance levels and who has the flexibility to respond to your specific needs. That s HP. HP has been ranked by outsourcing consultancy EquaTerra as a Tier 1 BPO provider a company able to effectively manage long-term complex services. 1 Few players in the market today can provide the level of process excellence, depth of outsourcing experience and world-class IT expertise that HP brings to the market in its BPO service offerings. We have more than 15 years of experience in creating superior operational back-office solutions. Over the years, we have continuously improved and professionalized our process capabilities and invested in leading-edge enabling technologies. As a result, we have been recognized among the Top 10 Most Admired Shared Services Organizations by Shared Services News in 2002 and Today, we are one of the world s top six outsourcing service providers. We provide professional advice and solutions to our customers on all levels of their operations, from business processes to technology infrastructure. By combining our expertise around infrastructure, applications and processes, we are able to provide integrated, effective business solutions that are robust and reliable and that generate immediate bottom-line impact. Given our range of expertise, we are able to flexibly respond to your specific requirements, whether that means providing services based on your existing technology platform or moving your operations onto our platform. We find the solution that makes most sense for you and that satisfies your needs. Recognition of our commitment to customer satisfaction has come from a variety of sources and publications, including Information Week magazine, which rated HP No.1 in outsourcing client satisfaction in a survey of more than 700 clients. 2 1 Bob Cecil, EquaTerra, May 4, 2004, Finance & Accounting Business Process Outsourcing webinar. 2 Information Week magazine, November 18,

5 HP s proven ability to innovate makes them a strong fit and an ideal partner for our accounts payable services. Filippo Passerini, P&G Global Business Services Officer HP s portfolio of BPO services HP provides end-to-end business services, consulting advice, transformation, transition, web services and continuous improvement. We aim to be your business partner in all issues related to optimizing your business operations through outsourcing. At the core of our BPO offering we provide the following business services, either in part or in their entirety: Finance and accounting accounts payable, accounts receivable, time and expense administration, fixed assets management, general ledger, project accounting, reporting Order-to-cash CRM support customer administration, order processing, credit analysis and approvals, billing and invoicing Order-to-cash revenue cycle services revenue, collections, dispute resolution, cash application, reconciliation and reporting Procure-to-pay procurement support supplier administration, PO processing, P-card administration The HP advantage what sets us apart Every day the people in our rapidly growing BPO organization work hard to provide you with superior service that meets your strategic objectives and enhances your operational efficiency. Some of the key assets that set us apart include: Superior process solutions and quality HP consistently surpasses world-class industry benchmarks in process efficiency and leverages its position as an industry leader in imaging, printing and workflow solutions. Our dedicated quality team uses Six Sigma methodologies to continuously improve our process performance. We employ more Six Sigma trained experts than any other provider, except for GE and Wipro. Worry-free reliability HP has the highest standards for its own operations, which translates into a strong emphasis on business continuity, security, privacy and compliance with regulations (e.g., Sarbanes-Oxley) and capital market expectations. Strong business controls and secure service delivery ensure financial and operational excellence across all HP s processes. This translates into worry-free reliability for our customers. Smooth transition HP s BPO team has extensive experience in managing very large scale change programs and has instituted a proven, systematic methodology to ensure the successful implementation of new processes and organizational structures. We have a team of program managers with experience in managing complex process transitions. Customer-centric approach HP is well known in the industry for its flexible, serviceoriented way of cooperating with customers and responding to the needs of business partners. We want to work with you as a partner, in a collaborative manner. At HP, we are constantly pushing the envelope to deliver maximum satisfaction to customers. Procure-to-pay payment services accounts payable, invoice processing, PO matching, credit returns While we recommend looking at these services in an integrated fashion, you can choose any individual service that fits your needs. We provide all of these services in accordance with clearly defined service level agreements, ensuring that the services are performed to the quality and performance standards that you require. As always, our goal in providing these services is to continuously exceed your expectations. 5

6 HP s service delivery is truly global. An extensive global presence allows HP to provide flexible services worldwide. Organization: 4,500+ Process Experts Presence: 56 Local Front Offices 7 Regional Business Centers 7 Global Business Centers Language capabilities: Expertise in 30 languages Global Business Centers Regional Service Centers Local Front Offices HP s global delivery model ensures superior service At HP, we have one of the world s strongest global service delivery organizations. With Global Business Centers in India, China, Singapore, Mexico, Costa Rica and Spain, and with more than 4,500 process experts worldwide, we can cost-effectively and reliably provide services where you need them, when you need them around the globe, 24 hours a day. Our Global Business Centers are further supported by local operations in more than 50 countries, providing you with a ready-built network for future expansion. Given our global presence, our trained staff can support business operations in over 30 languages. Last year alone, we processed more than 130 million transactions for customers worldwide, and we are rapidly scaling up our operations based on growing customer interest. Our business model has been designed for rapid scalability and robustness. Today, we can scale up our operations with several hundred additional employees each week when customer operations require it. Meanwhile, our global delivery model minimizes the risk of downtime due to local disturbances. We can quickly shift operations to help you achieve the highest business continuity. In short, HP has the global coverage and capability to meet your needs and to respond quickly to changes in scope and scale of operations. 6

7 A lot of companies say they re customerobsessed, but they can t necessarily back it up. At HP Services, it s a different story. We worked hard to align our organization, our approach, our processes and our offerings around our customers toughest business challenges. Ann Livermore, Executive VP, HP Technology Solutions Group HP a proven partner in a successful outsourcing operation With a committed, talented and motivated workforce spread around the world, HP is a partner in outsourced business processes for many high-profile customers. We serve a broad range of industries, with a special focus on the financial services, consumer packaged goods, manufacturing (primarily auto and high tech), and pharmaceutical industries. Our customers include Procter & Gamble, Philips, Aventis, ThyssenKrupp, Celanese, Clariant and other world-class companies. For these customers, we provide a broad range of business services from procurement support to finance and accounting services to processing of payroll HR administration. In addition to our external customers, HP itself is one of our primary customers. Virtually all of HP s internal transactional processes particularly procurement, CRM, and finance and accounting related activities are performed by HP s BPO organization. This inside perspective allows us to continuously look for opportunities to further improve our services and optimize our operations for our external customers. Our outsourcing experience has helped us evolve a robust governance framework, which enables us and our clients to better plan and manage the contract life cycle. This framework is based on four pillars: Relationship management Operational control Service request management Proactive management and strategic planning Ultimately, HP has real and proven capabilities in BPO, not just glossy brochures. We encourage you to visit us at one of our Delivery Centers to experience what we can do for you. How HP can support your goals At HP, we are confident that we can offer you a unique value proposition to effectively optimize your business operations and drive value for your company. For more information about HP s Business Process Outsourcing and Services, please visit: or send an message to 7

8 For more information about HP s Business Process Outsourcing and Services, please visit: or send an message to 2004 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein EN, 09/2004

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