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Martin Cruise and Wendy McLeod 25th September 2013

Joint HP and BT consultation meeting BT Midrange: Cessation of Contract Clyde TUPE transfer HP to BT. Martin Cruise and Wendy McLeod 25th September 2013. Agenda. Introductions and welcome BT Rationale for change Contract Clyde UK Data Centres BTs Self Service Strategy People impact

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Martin Cruise and Wendy McLeod 25th September 2013

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  1. Joint HP and BT consultation meeting BT Midrange: Cessation of Contract Clyde TUPE transfer HP to BT Martin Cruise and Wendy McLeod 25th September 2013

  2. Agenda • Introductions and welcome • BT Rationale for change • Contract Clyde • UK Data Centres • BTs Self Service Strategy • People impact • Progress and Next Steps • Consultation Meetings • Questions

  3. BT TSO UK Data Centres Overview • BT TSO organisation is approximately 16,000 strong of IT professionals • Manages the core BT internal data centres in the UK • Supports all internal server and storage infrastructure housed in BT’s internal data centres • Data centres are supported 24/7, supporting BT’s internal business

  4. HP Clyde Contract • HP Clyde contract is a managed service contract for HP to provide a managed service for BT’s internal IT infrastructure. The contract covers server support, storage support and backup/restore support. Within the contract, HP provides hardware support for server infrastructure • Work initially out-sourced nine years ago under the “Edin” project / contract name • Contract with HP ceases midnight on 14 November 2013, moving all the hardware support to BT direct contracts, in-sourcing all the people currently considered to be 121 people.

  5. BTs Self Service Strategy • Project Python is an integral part of the IT Data Centres’ self-service strategy where we plan to reduce our service operations dependency on 3rd parties (vendor & subcon) from 60% to 25% of GMC within three years • Project Python unlocks our contract addressable base (removes the 10% reduction floor on the HP Edin contract) enabling TSO to implement the IT Estate initiatives • Unlocking the addressable base also enables BT to manage breakfix support in line with our the ‘future state technology’ and key location strategies as follows: • Within three Years, IT Data Centres plan to fully insource breakfix support for our VDC, containerisation and MI technologies within our Strategic long term data centres These data centre's will be supported 24*7 by multi-skilled BT engineers, thus also improving the physical security of our estate

  6. In strictest confidence People Impact • 121 people in-scope • Majority are ex BT employees • Majority based in BT buildings, no planned changes of work location • Transfer to BT gives employees the ability to move into new cloud based infrastructure, not just the old legacy technology which is in the Clyde contract • Similar on boarding arrangements as Project Wimbledon • Similar Pension arrangements per Wimbledon • Will look to assimilate those in scope onto BT T&Cs per Wimbledon • Transfer provides long term, sustainable employment

  7. Progress and Next steps ....

  8. HP to Staff Planned UK Communications Plan BT to Staff November October September 4 30 2 9 16 23 7 11 14 28 21 BT Communications - Townhall BT Onboarding Pensions and Benefits Briefings 30/8 3 Transition Communications Mgr Briefing StaffInvite On Site Roadshows 13 Consultation Rep nomination In-Scope Letter 4 & 5 OOS process 2 3 In-Scope Webcasts Unions UKWC

  9. Union Consultation Meetings -Proposed timeline • Agree consultative timetable to update on progress and work toward agreement on T&C matrices and measures statements Initial formal meeting 25th September 2nd meeting w/c 30th Sept 3rd meeting w/c 7 Oct 4th meeting w/c 14th Oct 5th meeting w/c 21 Oct 6th meeting w/c 28 Oct

  10. Asking Questions

  11. Any Questions ?

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