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  • Services revenue continues to grow in FY16 as SCC announces Vietnam expansion

    James Rigby, Chief Executive, SCCSCC announces its financial results for year ending 31st March 2016, with significant progress made on its continued transition to a managed service and solutions led business.

    FY16 highlights (SCC UK & M2 combined):

    • £653m turnover, down 1%;
    • Services turnover up 11% to £177m;
    • Data Centre Services revenues up 67% to £43m;
    • 29% EBITDA increase to £24.9m;
    • Services now accounts for 27% of total turnover (17% in 2013);
    • Services margins represent 66% of total margins – up from 63% in the prior year and 52% in 2013;
    • SCC announces new global delivery centre (GDC) in Vietnam.

    Overall turnover showed a marginal decline of 1% in FY16 – with high-turnover/low-margin product revenue reduced by £35m – as SCC continues to focus on improved margin and developing its services business, which delivered substantial growth of 11% to £177m.

    Over the last three years SCC has successfully changed the mix of its UK business, with 27% of turnover now coming from services, up from 17% in 2013, and 66% of gross profit is now generated from services, up 14% from 2013.

    The most notable growth in FY16 came from SCC’s Cloud Delivered Managed Services (CDMS) business.

    SCC’s total investment in CDMS surpassed £60m, with further investments in hosted voice & UCaaS specialist SIPCOM, and mobility business One Point completing its services portfolio, adding to investments made in FY15 in connectivity (Fluidata) and SCC’s third Tier 3+ Data Centre in Fareham. These businesses independently generated £26m of revenue in the year, taking combined services revenues past £200m to £203m.

    In FY16, SCC’s overall managed services turnover grew by £22m, driven principally by its Data Centre Services which saw turnover hit £43m, up 67% on FY15. This was supported by a number of key wins in the private and public sectors including: Konica Minolta, Next, Clarke Willmott, Ince & Co, Arnold Clarke, and NHS Blood and Transplant.

    With its focus still firmly fixed on building long-term strategic partnerships with its customers, SCC’s Data Centre Services closed FY16 with an annualised revenue run rate of £52m, a 51% increase from the start of the year, of which 80% is repeatable income, underpinning SCC’s strategy for annuity business and continued profitability.

    Sentinel by SCC, SCC’s secure multi-tenanted cloud platform, continued its growth trend with revenue up more than 120% in FY16, increasing to almost £8m from £3.6m last year. Key customer wins for Sentinel in FY16 included: Sodexo, Oxford City Council, and DWP.

    Since its acquisition by SCC in February 2014, M2, Europe’s leading Managed Print Services (MPS) business, has enjoyed its best ever period of growth. SCC & M2 closed FY16 on £46m combined turnover, representing 21% turnover growth, and £4.6m combined EBITDA, up 48%.

    In the last year, M2 has grown to employ over 230 people and has 24,000 devices under management in the UK. FY16 also saw the expansion of M2’s regional office network to include: London, Bracknell, Bristol, Birmingham, Manchester, Leeds, and Scotland, and the creation of a dedicated public sector division.

    SCC Chief Executive James Rigby said:

    “We’ve had another strong financial performance in the areas identified in our business strategy as key to SCC’s long-term success. We continued to make investments throughout FY16 in additional capability, improved facilities and skilled people – all geared towards delivering the very best service to our customers. Our services business has grown significantly over the past three years and the forecast is for that to continue. And the opportunity for customers, particularly in the mid-market space, to grow with us has never been so large with the completion of our Cloud Delivered Managed Services proposition in FY16.”

    SCC’s was recognised by two notable industry awards in FY16. In November CRN named SCC its Managed Services Provider of the Year, with the judges describing “a shining example of clear strategy”. And in March SCC won Managed Services Solution of the Year at IT Europa’s European IT & Software Excellence Awards for its Data Centre migration project with WHSmith.

    Looking ahead to FY17, SCC expects stable growth in product revenues and continuing growth in services revenues led by its CDMS proposition.

    Immediately following the close of FY16, SCC launched its Universal Cloud Gateway service, a cloud brokerage portal enabling customers to easily procure both public and SCC cloud solutions. This new service meets the needs of enterprise scale organisations with multi-cloud strategies and provides a simplified & flexible route to complex cloud services.

    SCC will continue to invest in Data Centre & cloud services, with two major Data Centre expansion projects already underway at its Birmingham and Fareham facilities. In 2016, SCC will increase rack capacity to more than 3,000, bringing total capacity growth over the last three years to over 300%.

    As SCC continues its journey towards a stronger mix of annuity-based services, with many of its customers’ infrastructures requiring 24×7 support, 2016 will also see the launch of SCC Vietnam.

    SCC Vietnam, headquartered in Ho Chi Minh City, will deliver two main activities: firstly, providing level three & four infrastructure support to customers, and the creation of an Offshore Development Centre to accelerate the development of custom applications.

    Rigby added:

    “It’s an exciting time for SCC as we look further East to a location that combines a sufficient time difference with widely-available technical skills. SCC Vietnam will be incorporated by August 2016 and we are aiming for an initial headcount of around 50. Vietnam is a country of over 90 million people with an average age of 30. It has a high quality education system, similar to Romania, with over 300 IT-only universities. English is widely spoken to a high standard and the time difference of London+7 is ideal for 24X7 customer support.”

    SCC Romania wins again at the Romanian Outsourcing Awards for Excellence 2016

    SCC RomaniaSCC Romania is celebrating another award win – the second in the space of a week – after being named ‘SSC Company of the Year’ at the Romanian Outsourcing Awards for Excellence 2016.

    The Romanian Outsourcing Awards for Excellence recognises, rewards and celebrates the success of the most prominent companies acting in the Outsourcing – BPO, ITO and SSC industry in Romania.

    The SSC Company of the Year category represents achievement on the highest level for shared services operations in Romania.

    The award marks SCC Romania’s second win in quick succession after winning Outsourcing Company of the Year at last week’s Regional IT & Outsourcing Industry Awards (PIN 2016), in the same year it celebrates 10 years in business.

    Launched in 2006, SCC Romania, SCC’s near-shore support services operation, has grown to span 3 locations, in Iasi and Bacau, and employs 1,200 people, speaking 10 languages and managing in excess of 2 million tickets per year.

    SCC’s Romania service desk delivers 24/7 multi-lingual support, 365 days per year, with a 9-second average answer time and 97% customer satisfaction rating, supporting key strategic customers including National Trust, Konica Minolta, and Samworth Brothers among them.

    With further growth expected in FY17, these two awards are a significant milestone in SCC Romania’s 10-year history and sustained success into the future.

    James Rigby, SCC Chief Executive, said:

    “We are immensely proud of our Romania business and to win two awards in succession is credit to the whole team and its world class service delivery in Iasi and Bacau. As our Romania business continues to grow, supporting customers throughout Europe, it’s important that we maintain and build on the high standards of service we’ve set ourselves, and these awards are evidence that we’re absolutely committed to doing that.”

    SCC Romania named ‘Outsourcing Company of the Year’ at prestigious PIN 2016

    PIN 2016SCC’s near-shore support services operation, SCC Romania, is enjoying a double celebration having been named Outsourcing Company of the Year at the prestigious Regional IT & Outsourcing Industry Awards (PIN 2016), in the same month it celebrates ten years in business.

    Launched in 2006, SCC Romania has grown to span 3 locations, in Iasi and Bacau, and employs 1,200 people, speaking 10 languages and managing in excess of 2 million tickets per year.

    PIN 2016 recognises IT and Outsourcing companies, universities, student associations & related services, including training, recruitment & foreign language courses, and relevant non-governmental organisations.

    It celebrates the development of the IT industry on a regional level and highlights its positive impact on the community. Organisations honoured range from established companies and firms, innovative start-ups, and bold entrepreneurship, community events, and sustainable projects in education.

    PIN 2016 01

    James Rigby, SCC Chief Executive, said:

    “Our Romania support business is critical to the success of our overall 5-year business plan, and is helping SCC drive its services strategy by supporting key strategic customers and reinforcing the trusted relationships that we’ve built. This award, the first of many in Romania, just goes to show what you can achieve with clear vision and good people, from the leadership team right across our 1,200 employees in Iasi and Bacau. As our Romania business continues to grow, supporting customers throughout Europe, it’s important that we maintain and build on the high standards of service we’ve set ourselves, and this award is evidence that we’re absolutely committed to doing that.”

    SCC’s Romania service desk delivers 24/7 multi-lingual support, 365 days per year, with a 9-second average answer time and 97% customer satisfaction rating, supporting key strategic customers including National Trust, Konica Minolta, and Samworth Brothers among them.

    SCC wins prestigious IT Europa Award for best managed service solution

    SCC COL2 DCSCC has cemented its reputation as the UK’s leading IT managed services provider by winning Managed Service Solution of the Year at IT Europa’s prestigious European IT and Software Excellence Awards.

    IT Europa’s European IT & Software Excellence Awards recognises best practices in customer solutions by Systems Integrators, Solution VARs, MSPs and ISVs across Europe.

    The award represents SCC’s second managed services accolade in under five months, after being named Managed Services Provider of the Year at the CRN Channel Awards in November, as Europe’s biggest independent IT services business continues to gain recognition for its continued investment and growth in cloud delivered managed services.

    SCC was selected by the judges for the successful delivery of WHSmith’s complex Data Centre migration project, as part of a large infrastructure outsource contract with the prominent high street retailer.

    With more than 1,000 stores across the UK, WHSmith is one of the UK’s most recognisable brands, with uninterrupted IT service delivery critical to its success. SCC was acknowledged the time spent planning each intricate phase of the Data Centre migration project, and its collaborative approach.

    SCC Chief Executive James Rigby said: “I’m incredibly proud that SCC has been recognised for our IT managed services by IT Europa. It’s testament not only to our continued investment in IT services, but also the wonderfully talented people we have at SCC, and their commitment to building lasting, successful relationships with mid-market customers like WHSmith who share our values around dependability, partnership and, above all, service excellence. This project in particular was complex and challenging – but, together with WHSmith, the delivery was executed without any disruption to BAU and I’m delighted to accept the award of Managed Services Solution of the Year.”

    Ian Windsor, CIO at WHSmith, added: “Technology is critical to our business and we need to ensure our staff have the tools they need to provide great service to our customers. We have tens of thousands of products in our stores, with complex ways of deciding what stock goes to what store. It’s all driven by technology, so we need a partner that does its role properly and doesn’t rely on us to manage them. SCC run IT services as an extension of my team, which is great.”

    Click here to watch SCC’s case study film with WHSmith CIO Ian Windsor >>

    SCC completes Cloud Delivered Managed Services portfolio with One Point investment

    SCC invests in One PointSCC has taken a controlling stake in One Point, adding mobile voice and data capability to complete its Cloud Delivered Managed Services (CDMS) proposition.

    One Point becomes SCC’s third major investment in 2015 – another key milestone in the development of its CDMS portfolio following investments in Fluidata and SIPCOM earlier this year.

    Having invested more than £50m in its own Data Centres – including the acquisition of SSE’s flagship Tier 3+ Data Centre in Fareham in 2014 – SCC has since bolstered its capability in connectivity, voice, and now mobile to complete its CDMS offering.

    One Point simplifies the delivery of mobile voice and data services by unifying best-in-class technologies to improve business performance. The strategic partnership will see One Point continue to operate as normal, under its own brand and existing leadership team.

    James Rigby, SCC Chief Executive, said:

    “We’ve been actively pursuing an investment in mobile – and in One Point we’ve found the right business to complement our existing services portfolio and deliver the same, excellent levels of service to customers.

     

    “We’ve worked tremendously hard to build a formidable Cloud Delivered Managed Services proposition – and position SCC at the cutting edge of IT service delivery.

     

    “This investment marks the completion of our CDMS portfolio, in terms of capability. We’ll now look to drive the proposition forward, adding additional capacity where necessary, alongside continued organic investments in our own Data Centre Services.”

    One Point Managing Director Ben McElligott added:

    “Aligning our business with SCC increases our overall service offering, expanding our own capability and making the most of our service offering, particularly around mobile.

     

    “The investment from SCC cements One Point firmly in the mid-market space and provides our customers with additional choice and value. We’re delighted to be joining SCC and view this as a great partnership for both our business and our customers.”

    In November, SCC was named Managed Services Provider of the Year at the CRN Channel Awards 2015. The judges commended SCC for its “long-term investment in its capabilities and developing a comprehensive and effective value proposition,” and described SCC’s entry as “a shining example of clear strategy and delivering exceptional results to its customers.”

    SCC wins major Managed Print Services contract with Devon County Council

    Devon-County-CouncilSCC, Europe’s biggest independent IT services business, is the new preferred supplier of Managed Print Services (MPS) across public sector organisations in Devon following a major contract win with Devon County Council

    SCC was successful in two Lots tendered by the council: to provide and maintain 550 devices, and to become the preferred supplier of MPS to local authority, education, healthcare and EMS organisations throughout the region.

    John Taylor, Chief Executive Officer of M2, said of the award:

    “Organisations are realising the value of managed print in driving down cost, waste, and risk. With the growing technical, complex nature of managed print, finding quality, service excellence, and a trusted partner is essential.

     

    “In the case of Devon County Council, SCC had to solve the main challenges around managing a multi-vendor fleet of MFD’s and printers, requiring pedigree, local & national capability, and a strong overall MPS business.”

    This latest MPS win is the latest in a long line of recent successes following SCC’s acquisition of M2, Europe’s leading independent managed print IT service provider, in February last year.

    M2, an SCC business, was acquired to merge with SCC’s existing print services operation, enhancing the company’s specialist capabilities in that area.

    It has since enjoyed record growth, most recently investing more than £1.5m in doubling its salesforce and regional office network following an unprecedented number of customer wins in the 18 months since the acquisition.

    Andrew Mappin, M2’s Sales Director for Public Sector & Production Print, said:

    “Our recent growth been exceptional, driven through multi-year managed service contracts. And we’re delighted to have won this contract with Devon County Council.

     

    “We feel best placed to serve Devon County Council and public sector organisations across the regions – a huge return on the investment in our regional network.”

    Earlier in 2015, Photizo once again listed M2 in its Leaders Index as one of the world’s leading independent providers in managed print services.

    Visit the M2 website: http://www.m2.uk.com/

    SCC Awarded Place on G-Cloud 7 Framework

    G-Cloud-7-FrameworksSCC has continued its G-Cloud success after being awarded a place on the new G-Cloud 7 Framework.

    Europe’s principal IT services business, SCC, has been included on every iteration of the G-Cloud Framework since its inception, a result of continued organic and acquisitive investment in service capability and resource.

    For G-Cloud 7, SCC has introduced a portfolio of new, innovative services including Software as a Service (SaaS) offerings to deliver Skype for Business, Secure File Sharing & Collaboration, Hosted Desktop, and Managed Desktop, each hosted on Sentinel by SCC.

    Sentinel by SCC not only provides faster IT implementation but also keeps data to Government-approved security standards.

    It is the most established and cost-effective Cloud solution; the first Pan-Government Accredited platform of its kind, supporting a number of major public sector organisations including: Civil Aviation Authority, HM Passport Office, Highways England, Yorkshire and Humber CSU, and Mersey Care NHS Trust.

    A key reason for SCC’s inclusion on the G-Cloud 7 Framework is its award-winning service delivery having recently won large, multi-year contracts with Oxford City Council, Sodexo, and Charity Commission.

    Kelvin Ayre, Practice Manager for Sentinel by SCC, said of SCC’s inclusion on the G-Cloud 7 Framework:

    “This is the seventh successive iteration of G-Cloud that SCC has been included on and we’re pleased to be offering an extended service that will continue to transform the way the public sector works.

     

    “G-Cloud 7 heralds the ‘year of the cloud’ – and 2016 is a critical year for public sector organisations to make the move to secure cloud, or get left behind.

     

    “SCC’s own user base continued to expand rapidly – and we’re proud that, since the launch of Sentinel by SCC, we haven’t lost a single customer from the platform.”

    Earlier this month, SCC was named Managed Services Provider of the Year at the CRN Channel Awards 2015, commended for its continual and substantial investment in excellent service delivery in the mid-market space.

    For more details about Sentinel by SCC or our G-Cloud 7 services, visit www.scc.com/sentinel.

    SCC wins Managed Services Provider of the Year at prestigious CRN Channel Awards

    CRNSCC has been named Managed Services Provider of the Year at the prestigious CRN Channel Awards 2015.

    Now in its 22nd year, the CRN Channel Awards continues to represent the pinnacle of achievement in the UK market, rewarding outstanding performance in the IT channel.

    SCC’s win is a landmark milestone in its strategic transition from IT reseller to become Europe’s leading independent IT services business.

    SCC has invested heavily in its own Data Centre & Cloud Services and owned facilities, including more than £60m on the expansion of its COL1 Data Centre in Birmingham and acquisition of FAR, SSE Telecoms’ flagship, Tier 3+ Data Centre in Fareham earlier this year.

    Since hitting the acquisition trail in 2012, SCC has also invested in Managed Print Services business M2, Data Telecoms provider Fluidata and, last month, leading global Cloud Services Provider SIPCOM as it grows its Cloud Delivered Managed Services (CDMS) proposition.

    SCC’s total rack capacity now stands at over 1,800 and 14Mv of power, with the business closing FY15 on 67% occupancy and annual rack growth of 145%.

    SCC’s Data Centre and Cloud services hit £26m last year following a succession of key customer wins including Kier Group, Samworth Brothers, Grafton Group, Macdonald Hotels, United Utilities, Department for Work and Pensions, and WHSmith.

    It was the Data Centre transition project with WHSmith that particularly impressed the CRN Channel Awards judges, commending SCC on its technical capabilities, skilled team, and new positing as a top 3 UK Data Centre Services provider

    SCC Chief Executive James Rigby said:

    “To be recognised by CRN is clearly an honour – but to win Managed Services Provider of the Year is particularly special as a reward for our hard work in the strategic transition of SCC.

     

    “As a business, we’re firmly on track to achieve our 2017 target of £50m EBITDA, through organic and acquisitive growth and delivery of a market-leading, end-to-end Cloud Delivered Managed Services proposition.

     

    “Most important to us are the long-term partnerships we’re developing with our customers in the mid-market space – and we continue to invest in the most appropriate areas for future success.”

     

    CRN-Award

     

    Defence Employer Recognition Scheme

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    SCC has a long history of supporting the British Armed Forces, and we are committed to helping ex-service personnel into long-term, civilian employment.

    People depend on our customers, and our customers depend on us. In the Forces, the country depends on you – which is why we know that you have something special to offer SCC.

    The skills and experience you gained in the Forces are transferable to many of the roles we are currently advertising.

    What we can offer you is the opportunity to learn, develop and grow as you build your post-Forces career with SCC.

     

    SCC---Award

    SCC wins 10-year IT infrastructure contract with Oxford City Council

    SCC COL1 DCSCC, Europe’s biggest independent IT services business, has won a 10-year IT infrastructure contract with Oxford City Council.

    The five-year agreement, with the option to extend by a further five years, sees SCC awarded a single contract to deliver: Data Centre Hosting, Server & Storage, Server Technical Support, Database Administration, and Network Security Infrastructure & Support.

    Key to Oxford City Council’s decision to choose SCC as its infrastructure partner was Sentinel by SCC, the secure, multi-tenanted Cloud platform built specifically for the public sector, which the council will use for Data Centre Hosting.

    Sentinel, the first Pan-Government Accredited Cloud platform of its kind, provides flexibility, enabling the council to scale server requirements up or down and pay only for what it uses.

    This is expected to deliver immediate cost-savings of more than £150k per annum which can be reassigned to the delivery of public services.

    Sentinel by SCC protects data to Official & Official Sensitive (IL2 & IL3) security standards, and already supports a number of other major public sector organisations, including: Civil Aviation Authority, DWP, Highways England, HMRC, Yorkshire and Humber CSU, and Mersey Care NHS Trust.

    Oxford City Council Head of Business Improvement Helen Bishop said: “Throughout the process, SCC consistently showed itself to be professional and responsive by taking note of the information provided and the specification requirements, and offering relevant and comprehensive technical solutions.

    “In the past two years Sentinel by SCC has delivered 100% availability. The references, site visit, and stakeholder interviews confirmed that SCC’s culture of customer service was a good fit for this contract and matches the culture and aspiration of Oxford City Council.”

    Kelvin Ayre, Practice Manager for Sentinel by SCC, added: “We are delighted to have been awarded this contract by Oxford City Council; Sentinel by SCC represents the very best fit for the city’s requirements.

    “As government changes, so does the shape of city councils – resulting in the need for a solution that is flexible, scalable, and cost-effective. That’s exactly why we’re seeing so much success with Sentinel, and we look forward to a successful, long-term partnership with Oxford City Council.”

    SCC’s Data Centre & Cloud Services business posted an 87% increase in FY15, and was recently named Best Performing SaaS Partner at Becrypt’s annual awards, recognised for product innovation and forward thinking for Sentinel by SCC.

    Find out more about SCC: http://www.scc.com/
    Visit the Sentinel by SCC page: http://www.scc.com/sentinel
    View current DCS & Cloud vacancies at SCC: http://www.scc-careers.com/