IBM Global Process ServicesPrinciples and Promises

2 Principles and Promises

Meet IBM Global Process Services.We deliver Business Process Innovation.

We collaborate with our clients to apply business process

expertise, advanced analytics, cutting-edge technology, and

research to enable business process agility and drive innovation.

We commit to measurable business outcomes that help accelerate

top-line growth, improve profitability, and take advantage of

the opportunities of a global economy.

3IBM Global Process Services

First. IBM Global Process Services innovates your business processes and helps differentiate your enterprise.Every company has an essential reason for being in business. Every company wants to grow. IBM Global Process Services works closely with our clients to deliver business process solutions that help realise their growth goals while remaining true to their essence. This deep collaboration is founded on industry-specific business insight, a rigorous yet flexible methodology and best practices developed in conjunction with our clients. It is how we provide Business Process Innovation.

Many companies have lost the advantages they once enjoyed simply by shipping work elsewhere and improving efficiency. We help drive bottom-line savings while also capturing top-line opportunities. In addition, balanced shore solutions locate work where it best meets cost, language and regulatory specifications, and other needs.

Today’s market calls for a different kind of business process outsourcing (BPO) provider—one that takes into account a

company’s unique identity and position in the market, one that can deliver sustainable competitive advantage and measurable business outcomes through process innovation. In fact, organisations that seek out innovation-focused partnerships outperformed across every financial measure, compared to those using other partnering strategies.2

“Some of the challenges I think IBM has helped us overcome are multiple channels to go out to market, what IBM has been able to do is provide a much more consistent approach, behind that is of course, control and compliance... IBM does bring some true global experience and benchmarks to a company like Telstra, that’s been a great advantage to us. I think also expertise in areas of innovation that Telstra otherwise wouldn’t have had access to.”

- Richard Allen, Chief Procurement Officer & Executive Director

Enterprise Services, Telstra

Customer Care Strategic business partnership with Concentrix to transform and deliver high value interactions at every stage of the B2C customer care life cycle.

Integrated Supply Chain Optimise supply chain efficiency, minimise risk and enhance B2B customer services with technology and advanced analytics.

Industry Unique Solutions Smarter Lending, Revenue Cycle Management etc. to address unique industry challenges.

Managed Marketing Services Partner with CMO’s to execute digital marketing campaigns and achieve results through the science of analytics and execution excellence.

Finance and Administration, Sourcing and Procurement Partner with CFOs to drive enterprise wide process optimisation & maximise savings and compliance with advanced analytics to demonstrate better financial performance.

Human Resources Enable a Smarter Workforce by leveraging asset based solutions to improve work force performance and HR operations.

4 Principles and Promises

Second. IBM Global Process Services creates measurable business outcomes that contribute to top-line growth and bottom-line savings. IBM Global Process Services does not just understand business processes; we understand what they mean to business. Our recognised thought leaders in Industry, Human Resources, Finance and Administration and Supply Chain Management have direct experience, valuable insights, and best practices from hundreds of client engagements to enhance all of our clients’ knowledge and decision-making.

Our Business Process Innovation, advanced analytical capabilities, human talent, and technology give us practical business expertise that helps our clients identify measurable growth opportunities and calibrate their business processes to capitalise on them for immediate gain and sustained long-term performance.

A global telecommunications provider sought a partner to help it ensure its supply chain operations were agile and delivering value to the business. Increasing compliance, reducing costs and streamlining processes were key requirements.

Five years later, this partnership has delivered annual savings of $200 million and increased the telco’s ratio of savings from 3.3 to 9.5. The company streamlined its procurement processes and greatly improved internal purchasing compliance and visibility of expenditure. The business has also improved inventory management and its repairs and logistics processes.

A spokesperson from the company said: “Our supply chain was once seen as just a back-office function, but is now a competitive advantage.”

Success story

5IBM Global Process Services

Third. Our experts apply a rigorous yet flexible methodology and toolset that allow us to commit contractually to measurable outcomes for our clients.Working with clients in almost every industry, we have developed the Enterprise Process Innovation Continuum (EPIC), a proven methodology for optimising the quality and efficiency of business processes. Using EPIC which embeds analytics, our process innovation experts are able to deliver end-to-end solutions and systematically execute against IBM best-practice models, controls frameworks, and benchmarks.

EPIC enables us to deliver precise business outcomes, such as:

•Up to 12x return on investment (ROI) with the execution of a Source-to-Pay collaboration model

•Up to 25 percent contracted working capital improvement with accounts receivable reductions

• 80 to 90 percent purchasing and supplier compliance •Up to 30 percent reduction in training operational costs •Up to 20 percent improvement in collections effectiveness • Show a reduction in annual human resource outsourcing

(HRO) operating costs by up to 20 to 30 percent, and training operational costs by up to 40 percent

•Reduce annual procurement spend by 7 to 15 percent•Annualised run rate savings range 30 percent to 60 percent

from baseline

•Up to 15% increase in ROI on Marketing Campaigns

IBM Global Process Services has always been geared toward accelerating business process innovation. Our process and industry experts, as well as our Six Sigma, Lean, industrial engineering, benchmarking, advanced analytics and modelling experts work closely with IBM Research, one of the largest private research organisations in the world, to create and extend innovation across our clients’ businesses.

IBM Global Process Services worked with an automotive company facing intense competition in attracting specialised employees. After evaluating the automaker’s current and future needs, IBM developed an innovative human resources strategy (a recruitment process outsourcing solution) to attract and retain top talent. As a result, the company halved the time it took to fill positions, significantly cut recruitment agency costs, and hired new, high-quality talent.

IBM implemented a number of new processes. For example, instead of writing requisitions, our recruiting team conducted interviews with the company’s hiring managers to understand its critical requirements for the roles, composed talent requisitions and drove the recruitment process. Instead of reviewing up to 50 applications per vacant position, hiring managers were presented with the top five candidates.

Success story

6 Principles and Promises

Fourth. To take advantage of the opportunities of a global economy, organisations need a partner who is defining what it means to be global.Over the last fifteen years, IBM has transformed from a multinational corporation into what we call a Globally Integrated Enterprise, remixing our workforce to the locations where we found the skills necessary for today’s economy. In keeping with our vision of next-generation BPO, we took a balanced-shore approach, locating work where it could be performed best at optimal costs while allowing us to respond to market opportunities, and enabling us to broaden and diversify our talent pool. This holistic, balanced-shore approach to transformation is the same that we apply for our clients.

Whether our client is large or small, with operations around the world or in just one country, IBM Global Process Services passes on the institutional knowledge gained from IBM’s transformation in the solutions we deploy. With over 50 delivery centres spread across five continents and the ability to provide service in over 40 languages, IBM Global Process Services has the scale to deliver cost-effective solutions for our clients’ most specialised needs.

IBM’s presence across more than 170 countries gives us unique insight into global and local considerations such as policy implications and trade laws that will increasingly affect the way companies do business in the global market. In addition to providing BPO services, we help our clients to manage the risks associated with change and communicate with their constituents about how their engagement with IBM Global Process Services helps them achieve sustainable competitive advantage in an ever-changing global environment.

7IBM Global Process Services

Fifth. Leading the way with our community-based delivery centres.IBM Global Process Services has community-based delivery centres at the University of Ballarat in Victoria and the Unitec Institute of Technology in Auckland, created in close collaboration with both institutions.

These regional delivery centres allow us to provide high-value, cost-effective services to our clients, drawing on a flexible student workforce led by experienced IBM staff. We roster students around their study timetables and can scale our workforce according to client demand.

Outsourcing to IBM’s community-based delivery centres offers a number of advantages for Australian and New Zealand clients, including greater access and visibility over managed services, and an alignment of time zones, language and culture.

“The partnership between IBM and the University of Ballarat is truly exceptional, operating across two decades. It is amazing to think that about one third of IBM’s Ballarat workforce are either UB students or graduates. The Earn as You Learn Program has been a wonderful vehicle for transitioning undergraduates into the workforce with a globally iconic brand.”

- Mal Vallance, Director, University of Ballarat Technology Park.

At each of our centres, we employ a combination of research and innovation, advanced analytics capabilities, human talent and cutting-edge technology. IBM has proven methodologies to improve client business processes, for example, one of our clients has experienced a 30% reduction in resource requirements, along with significantly improved service levels. Our clients have realised real cost-saving benefits and significant productivity benefits associated with this flexible workforce by up to 20%.

Our clients achieve enduring business process changes that produce immediate results and enable continuous

improvement of their operations, with our services evolving to constantly meet their needs as business requirements change over time. IBM is focused on the ongoing investment of each of our centres with particular attention on this continuous improvement and quality.

“This initiative is an excellent example of collaboration between business and tertiary education and will make a positive contribution to the economic prosperity of our country.”

- Rick Ede, Chief Executive, Unitec Institute of Technology.

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© Copyright IBM Corporation 2015. All Rights Reserved.

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Produced in Australia. April 2015 IBM, the IBM logo, and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at http://www.ibm.com/legal/copytrade.shtml.

1 IBM now provides Customer Care through a strategic partnership with Concentrix.

2 “Why partnering strategies matter”—an IBM Center for Applied Insights global study based on input from 1,351 sourcing decision makers. For more info, visit: http://www.ibm.com/ibmcai/sourcing

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Find out how IBM Global Process Services can benefit your businessWhen you partner with IBM Global Process Services, you gain access to our business process expertise and deep industry knowledge.

To learn more about IBM Global Process Services, please contact your IBM representative.

Website: ibm.com/bpoutsourcing/auEmail: askbpo@au1.ibmPhone: 1800 557 343 (Australia) or0508 275 426 (New Zealand) and ask for BPO.