Xchanging - History and Growth

History and Growth

Xchanging was founded in 1999, by David Andrews, a former partner in Andersen Consulting. Andrews came up with the idea at Andersen Consulting, to create joint ventures with large multinationals to outsource the processing of back-office transactions.

In 2000, Xchanging and BAE Systems created the first of these 'Enterprise Partnerships', for HR services (see also). A second followed soon after, again with BAE Systems, for indirect procurement.

Two years later, Xchanging and Lloyd's of London created two more 'Enterprise Partnerships', one for claims processing, and one for the London Insurance market’s back office system; the latter including the IUA as a partner too. Further partnerships were signed with Deutsche Bank in 2004 (launching Xchanging into the European financial market), Aon in 2006 (in broking services) and Allianz GI in 2007.

In 2007 Xchanging listed on the London Stock Exchange, entering the FTSE250.

In 2009, Xchanging acquired a 75% stake in Cambridge Solutions, another outsourcing business. This acquisition was to deliver greater scale, broader international reach, and a number of platforms for future growth.

In 2010, Xchanging further expanded in the European financial sector by developing an eighth 'Enterprise Partnership' with Italian group, SIA-SSB. As part of this 'Enterprise Partnership', Xchanging acquired 51% of Kedrios S.p.A. (Kedrios), the Italian subsidiary of SIA-SSB that specialises in securities processing and fund administration services for the Italian market. With this, Xchanging entered the Italian market. This market is one of the larger outsourcing markets in Europe.

In mid 2010, Xchanging acquired security and technology communications company, Data Integration. The company is an IT services business in the United Kingdom. The company specialises in network security, application optimisation, mobility services, high performance networks, IP telephony and open access networks. Data Integration serves more than 300 customers in the UK, spanning the private and public sectors.

Based on a number of long-term Enterprise Partnerships and the acquisition of Cambridge Solutions, Xchanging reported a 35% revenue increase year-on-year to £750.4m, at the end of 2009.

On 8 February 2011, David Andrews decided to step down from the Board and from the role of Chief Executive Officer taking on a new role as Senior Adviser to the Chairman to support the company's business development initiatives. During the search for a successor to Andrews in the role of CEO, Ken Lever, the Chief Financial Officer, assumed the role of Acting Chief Executive Officer in addition to his responsibilities as CFO.