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Analyst Newsletter Issue 10

September 2006

In this issue:

Spotlight: 'Repetitive admin' viewed as biggest drain on local authorities
News from Xansa
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'Repetitive admin' viewed as biggest drain on local authorities

18 September 2006
Almost 90 per cent of the UK population believe cutting down on administration costs is the best way for local authorities to free up resources for frontline services.

This is the result of a survey* carried out by outsourcing and technology firm Xansa into public attitudes to government efficiency. The research also found that although three-quarters of the population were generally satisfied with local services, many (80 per cent) felt that local councils were still seeking to improve efficiency levels.

Other options proposed by the 973 adults who participated in the survey included sharing resources, such as finance and HR functions, between local authorities and implementing better debt recovery strategies.

"Our survey shows that people recognise and value the good work done by local authorities," said John Gibson, public sector director at Xansa. "However, a lot of people can see that routine and repetitive administration hinders local government efficiency and there is scope for improvement."

NHS Trusts are a good example of how money can be freed up to focus on frontline services. Established just over 18 months ago, NHS Shared Business Services is on track to deliver £224 million over the next 10 years in savings to the NHS - that equates to annual salaries for 3,000 GPs or 12,000 nurses.
"It's clear from the survey that citizens are keen for local authorities to do all they can to become more efficient. Local authorities should see this as a mandate to press ahead with the necessary reforms," he concluded.

* The survey was carried by GkP NOP on August 26 and 27, 2006
To find out more about how Xansa helps Public Sector organisations do more, please visit http://www.xansa.com/industries/publicsector/

News from Xansa

18 Aug 2006
Financial Services Authority chooses Xansa to make compliance easier

The Financial Services Authority (FSA) has signed a four year agreement with outsourcing and technology company Xansa, to transform its Information Systems (IS) Division capability. This transformation will enable the FSA to deliver a large portfolio of business applications more effectively and companies regulated by the FSA will benefit from greater simplicity when submitting compliance-related information.

Full Press Release

10 Aug 2006
Xansa wins HR Outsourcing contract with Lloyds TSB

Xansa, the outsourcing and technology company, has secured the first multi-process HR outsourcing deal within the UK financial services sector, by signing a 5 year contract with Lloyds TSB.

The service covers HR functions including administration, recruitment and existing helpdesks for training, advice and guidance and general queries. Xansa will work with Lloyds TSB to develop, host and support new recruitment and management information platforms and to transform HR processes.

Full Press Release

24 Jul 2006
Xansa helps drive Eclipse project into final phase

Next generation unified software development is a step closer following the latest meeting of the Eclipse Process Framework project team hosted by outsourcing and technology firm, Xansa. The project team is made up of experts drawn from a number of leading technology companies, collaborating to produce an open-source framework for software development best practice known as the Open Unified Process, or OpenUP.

Full Press Release

24 Jul 2006
Xansa wins £22 million mobile work management contract with Northern Ireland Water Service

Xansa is pleased to announce that Northern Ireland Water Service, an Agency within the Department for Regional Development, have exercised their option to extend the scope of their existing Contact and Billing implementation contract. The extension to the contract worth £22 million over a seven year period continues the development of a mobile work management solution. The initial contract was awarded in January 2006 to the Xansa led consortium, Crystal Alliance.

Full Press Release

02 October 2006
Xansa plc - Board

Xansa, the outsourcing and technology company, is pleased to announce the appointment of Christopher Bunker, aged 59, to its Board as a Non-Executive Director, with immediate effect.

Full Press Release

14 Sep 2006
Xansa 2006 AGM Statement

At the company's Annual General Meeting held on 14 September 2006, Alistair Cox, Chief Executive, stated:

"Trading for our financial year 2006/07 to date has been in line with management expectations. Since the start of the financial year, we have successfully won around £150 million of new orders from significant clients such as Barclays, Lloyds TSB, Northern Ireland Water Services, Office for National Statistics and the Financial Services Authority. We have broadened our service offerings successfully and entered the Human Resources outsourcing market, securing a key contract with Lloyds TSB. Progress in our NHS Shared Business Services joint venture is encouraging as we continue to grow the volumes of transactions we are handling in that business.

To deal with the increased activity that we are witnessing across the group, we have continued to grow our workforce, recruiting in both the UK and India. Demand for our offshore services has been particularly strong and we now employ around 4400 of our staff in India, making us one of the UK's largest employers in that country."

29 Jun 2006
Preliminary results announcement for the year ended 30 April 2006

Xansa, the outsourcing and technology company, is pleased to announce its results for the full year ended 30 April 2006.

Business Highlights:

Full Press Release

27 Jun 2006
Xansa plc Board Announcement

Xansa, the outsourcing and technology company, is pleased to announce the appointment of Badri Agarwal to its Board as a Non-Executive Director with immediate effect.

Full Press Release

Xansa Events

CIMA Training Conference
11 October 2006, CBI Conference Centre, London

The CIMA Training Conference is the event for companies looking to attract and retain the best finance professionals. The conference brings together key employers from a range of industries to share training and support best practice.

Mike Wood, Finance & Accounting Operations Director at NHS Shared Business Services, the Joint Venture between the Department of Health and Xansa, will chair an F & A Outsourcing workshop that will aim to equip the participants with an evaluation tool, as well as help them spot the opportunities and deal with the challenges. Mike won IQPC's Shared Services award for "Outstanding individual contribution to a shared services organisation" in May 2005.

Full details are available on the organiser's website at http://www.cimaglobal.com/cps/rde/xchg/SID-0AAAC564-E557E212/live/root.xsl/events_detail.htm?filename=events_14283.XML

NOA Awards for Best Practice in Outsourcing
12 October 2006, Radisson SAS Hotel, Portman Square Hotel, London

The National Outsourcing Association's Awards for Best Practice in Outsourcing will be held on the evening of Thursday 12 October at the Radisson SAS Hotel, Portman Square, London.

Now in their third year, the Awards have become a major event in the outsourcing industry calendar and will be attended by around 500 outsourcing professionals from the supplier and user community.

Xansa is sponsoring the "BPO Project of the Year" award and will be represented at the ceremony by members of the UK and India management teams.

Full details available on the organiser's website at http://www.noa.co.uk/NOAAwards.htm

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