View
807
Download
1
Category
Tags:
Preview:
DESCRIPTION
Citation preview
On-Demand Sourcing Solutionsfor Middle Market Enterprises
On-Demand Sourcing Solutionsfor Middle Market Enterprises
BPO On Demand
May 2009
Outsourced Services Recurring Revenue On Demand Model 2
Safe Harbor Statement
Certain statements in the following presentation relate to future results that are
forward looking statements as defined in the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those projected as a result of
certain risks and uncertainties, including but not limited to those noted in our forms
and other filings with the SEC. This presentation includes historical and forward-
looking pro forma information. The Company assumes no responsibility to update the
information contained in this presentation.
This presentation and the information contained herein is the property of BPO
Management Services, Inc.
Outsourced Services Recurring Revenue On Demand Model 3
Ticker: OTCBB:HAXS
Founded: July 2005
Public: Reverse merger in December 2006
Customers: 400+ in North America
Employees: 300
Headquarters: Anaheim, CA
Pennsylvania Corporation: Post HAXS merger December 2008
Mission Statement - Mid-Market BPO Play
To be dominant provider of back-office sourcing solutions,offered on a recurring revenue basis,
to middle market enterprises located throughout North America.
Company Profile
Outsourced Services Recurring Revenue On Demand Model 4
Company Profile
Mission Statement - Mid-Market BPO Play
To be dominant provider of back-office
sourcing solutions, offered on a recurring
revenue basis, to middle market enterprises
located throughout North America.
Financial Overview:
Recurring revenue model with strong operating leverage
Q1 2009 Revenue run rate $40M – with EBITDA margins expanding to +25% as we
integrate business functions, grow critical mass and leverage existing IP/infrastructure
Growth Strategy:
Vertical solutions that leverage our core IP/infrastructure
Middle market focus Huge marketplace opportunity
Generate Significant Organic growth projections
CFO sell plays well in uncertain economic times
Significant customer cost savings – on-demand model
Accretive acquisitions with strong operating leverage
Mission Statement - Mid-Market BPO Play
To be dominant provider of back-office sourcing solutions,offered on a recurring revenue basis,
to middle market enterprises located throughout North America.
Outsourced Services Recurring Revenue On Demand Model 5
Founders/Management Team
Patrick Dolan, Chairman and CEO Co-Founder Prior to co-founding BPOMS, Mr. Dolan served as president and chief operating officer of
Infocrossing Inc. [Nasdaq: IFOX], chairman and chief executive officer of Systems Management Specialists (SMS) and spent the early years of his career with Affiliated Computer Services (ACS) and SHL Systemhouse
25 years outsourcing industry experience
Jim Cortens, President Co-Founder Prior to co-founding BPOMS, Mr. Cortens served as executive vice president of Infocrossing Inc.
[Nasdaq: IFOX], president and director of Systems Management Specialists (SMS), and spent the early years of his career with SHL Systemhouse
25 years outsourcing industry experience
John Carradine, COO Former CEO, Healthaxis Mr. Carradine’s prior experience includes acting as CFO and a member of the Board of
Directors of Micrografx, Inc. until its sale to Corel Corporation in 2001, CFO of Intellicall, Inc. a telecommunications company and treasurer of Computer Language Research, Inc. a data services company for the accounting industry.
25 years in the software and data services industry
Patrick Dolan, Chairman and CEO Co-Founder Prior to co-founding BPOMS, Mr. Dolan served as president and chief operating officer of
Infocrossing Inc. [Nasdaq: IFOX], chairman and chief executive officer of Systems Management Specialists (SMS) and spent the early years of his career with Affiliated Computer Services (ACS) and SHL Systemhouse
25 years outsourcing industry experience
Jim Cortens, President Co-Founder Prior to co-founding BPOMS, Mr. Cortens served as executive vice president of Infocrossing Inc.
[Nasdaq: IFOX], president and director of Systems Management Specialists (SMS), and spent the early years of his career with SHL Systemhouse
25 years outsourcing industry experience
John Carradine, COO Former CEO, Healthaxis Mr. Carradine’s prior experience includes acting as CFO and a member of the Board of
Directors of Micrografx, Inc. until its sale to Corel Corporation in 2001, CFO of Intellicall, Inc. a telecommunications company and treasurer of Computer Language Research, Inc. a data services company for the accounting industry.
25 years in the software and data services industry
Outsourced Services Recurring Revenue On Demand Model 6
Founders/Management Team
Nick Curry, SVP – Head Canadian Operations Leads Canadian business activities Former CFO,CIO at major Canadian telecommunications and financial services corporations Significant business development expertise - +25 years industry experience
Ron Herbert, CFO Former, CFO Healthaxis
Brent Webb, General Counsel and Assistant Corporate Secretary Former, General Counsel HAXS
Nick Curry, SVP – Head Canadian Operations Leads Canadian business activities Former CFO,CIO at major Canadian telecommunications and financial services corporations Significant business development expertise - +25 years industry experience
Ron Herbert, CFO Former, CFO Healthaxis
Brent Webb, General Counsel and Assistant Corporate Secretary Former, General Counsel HAXS
Outsourced Services Recurring Revenue On Demand Model 7
Milestones to Date
$4.2 million founders investment
Q4 2006 – Reverse merger to become public company
Q2/Q3 2007 – Closed $21 Million in financing with 4 Institutional investors
Q2 and Q3 2007 – Completed 3 Acquisitions to accelerate growth, strengthen product and service offerings, expand client base and enhance cross selling opportunities
Q2 2008 – Raised $6 Million through a warrant exercise with 2 existing institutional investors to pursue the HAXS transaction
Q4 2008 – Closed HAXS merger
Strong/growing pipeline – Current economic situation accelerates middle market BPO track
Completed initial growth platform to support delivery of back-office business functions on an outsourced/recurring revenue basis – vertical solutions that leverage core IP/infrastructure capability
HR On-Demand HRIS system for the middle market ECM Enterprise Content Management solutions ITO IT Outsourcing – Tier 1 Data Center/Network Services FAO A/P outsourcing solution Healthcare Claims processing engine with HAXS merger
Track record of rapid organic growth
Any-shoreOn-Demand
delivery model
Any-shoreOn-Demand
delivery model
Outsourced Services Recurring Revenue On Demand Model 8
Vision for Growth/Value Creation
Dec’06Dec’06
RevenueRevenue
$30m$30m
$10m$10m
****
$50m$50m
PrivateRev $5mPrivateRev $5m
Pre-HAXSRev $30mPre-HAXSRev $30m
$150m$150m
$100m$100m
Dec’08Dec’08 Dec’10Dec’10
Reverse MergerRev $9mReverse MergerRev $9m
** •Accelerated Organic Growth•Accretive Acquisitions•Accelerated Organic Growth•Accretive Acquisitions
•Target +$250M recurring revs•1.5* Revs $375M valuation•Target +$250M recurring revs•1.5* Revs $375M valuation
**Post – HAXS mergerRev $43mPost – HAXS mergerRev $43m
$200m$200m
Dec’12Dec’12
Operating Platform CompletedReached inflexion point Growth/profitability accelerationOperating platform leverage
Operating Platform CompletedReached inflexion point Growth/profitability accelerationOperating platform leverage
Outsourced Services Recurring Revenue On Demand Model 9
•We are IBM/Accenture for the Middle Market•We are IBM/Accenture for the Middle Market
Comprehensive Set of Outsourced Back-Office Solutions - Middle Market FocusComprehensive Set of Outsourced Back-Office Solutions - Middle Market Focus
Comprehensive Offering – One Stop Shop
Services Provided on Standardized Platforms
Global Delivery Capability – Best Shore Delivery Model
Software as a Service Delivery ‘SaaS’
Leverage Data Center Infrastructure & Intellectual Property
Satisfied Customers – High BPO Contract
renewal rates
Comprehensive Offering – One Stop Shop
Services Provided on Standardized Platforms
Global Delivery Capability – Best Shore Delivery Model
Software as a Service Delivery ‘SaaS’
Leverage Data Center Infrastructure & Intellectual Property
Satisfied Customers – High BPO Contract
renewal rates
What We Do
HealthaxisProducts and Services Verticals
BPOMSProducts and Services Verticals
ITO Infrastructure
and Outsourcing
Services
Enterprise Content
Management
Human Resources
Outsourcing
Healthcare Plan IT &
Administration
Corporate Accounts Payable
Outsourcing
Direct Sales Force and Channel Partners
Target MarketsMiddle Market Companies
$500 million to $3 billion in sales
Target MarketsLarge TPA’s, Insurance Companies,
Managed Care Organizations,Middle Market Companies
Cross SellingOpportunities
Our platform provides economies of scale/delivery capability similar to Tier 1 providers
Outsourced Services Recurring Revenue On Demand Model 10
Highly leverageable IP/infrastructure Software/infrastructure unit costs decrease with scale Fewer resources needed for each incremental client Cross-utilization of resources across data centers/facilities
Business Model
Over 80% of revenue is contracted and recurring grow Opportunity to cross-sell solutions into existing clients High renewal rates on contracts
Infrastructure in Place
Infrastructure in Place
Tier 1 data center – significant available capacity Imaging/capture/scan – off/near/on-shore capability North American geographic coverage Facilities at about 25% capacity
Recurring Revenue
Recurring Revenue
Operating Leverage
Operating Leverage
BPOMS business model based on recurring revenue, critical mass and strong operating leverage.
Revenue above $50 million accelerates profitability
Outsourced Services Recurring Revenue On Demand Model 11
Comprehensive Services
BPOMSIBM/Accenture for the Middle Market
BPOMSIBM/Accenture for the Middle Market
Information Technology OutsourcingInformation Technology OutsourcingHealthcare IT and AdministrationHealthcare IT and Administration
Human Resource Outsourcing Human Resource Outsourcing Enterprise Content ManagementEnterprise Content Management
Finance/Accounting OutsourcingFinance/Accounting Outsourcing
Tier 1 capable data center Managed Services Applications Services Multi-platform Managed Hosting Professional Services and Staffing IT Consulting 7X24X365 operations Network Management Business Recovery
Tier 1 capable data center Managed Services Applications Services Multi-platform Managed Hosting Professional Services and Staffing IT Consulting 7X24X365 operations Network Management Business Recovery
HRIS Systems and Self-Service Portal HR Consulting Payroll and System Integration Compliance Administration Reporting and HR Metrics Performance Management Vendor Management HR Process Redesign
HRIS Systems and Self-Service Portal HR Consulting Payroll and System Integration Compliance Administration Reporting and HR Metrics Performance Management Vendor Management HR Process Redesign
Accounts Payable SaaS Systems Accounts Payable Outsourcing Scanning and Indexing
Accounts Payable SaaS Systems Accounts Payable Outsourcing Scanning and Indexing
Front-end Claims BPO Services SaaS based Claims and Admin Software Web Portals Provider Database Management Vendor Integration and Data Management
Front-end Claims BPO Services SaaS based Claims and Admin Software Web Portals Provider Database Management Vendor Integration and Data Management
Custom ECM Solutions Document Management Software Data Capture/Scan/Index Document Media Conversion Hosted Image Retrieval Systems eReview Collaboration Software Systems Integration/Implementation
Custom ECM Solutions Document Management Software Data Capture/Scan/Index Document Media Conversion Hosted Image Retrieval Systems eReview Collaboration Software Systems Integration/Implementation
Outsourced Services Recurring Revenue On Demand Model 12
Across Industry Verticals
Outsourced Services Recurring Revenue On Demand Model 13
IT Outsourcing Solutions
Cost effective managed services as an alternative to traditional in-house or other outsourced solutions.
Management and applications services tailored to customers' demands allowing them to focus on their core business.
We offer complete multi-platform managed hosting solutions on a 24*7 basis.
Data Warehousing and ETL Tools
Network and Remote Desktop Management
Business Recovery
Professional Services
SAS 70 Type II CertifiedClass A Rated Data Center
Facilities7X 24 X 365 Operations
We are product and supplier independent and support all well established multi-platform
computing technologiesMainframe
Mid-Range (AS/400 iSeries, all flavors of Unix)Open Systems (Intel) Servers
Remote Server and Desktop Support
SAS 70 Type II CertifiedClass A Rated Data Center
Facilities7X 24 X 365 Operations
We are product and supplier independent and support all well established multi-platform
computing technologiesMainframe
Mid-Range (AS/400 iSeries, all flavors of Unix)Open Systems (Intel) Servers
Remote Server and Desktop Support
We are a Leading Provider of Managed IT Infrastructure Services
Outsourced Services Recurring Revenue On Demand Model 14
Enterprise Content Management
We help our customers Improve their back-office performance Make better decisions faster by finding the right
information when it is needed Process documents more effectively Reduce the need for handling and filing paper
documents Streamline the ability to find, manage and access
documents in or out of the office
Our end-to-end solutions touch every aspect of enterprise content management
CaptureCapture
ClassifyClassify
ExtractExtract
ValidateValidate
DeliverDeliver
Our Enterprise Content Management products, services and solutions are aimed at helping business and government capture, index, access, deliver and preserve their documents.
Outsourced Services Recurring Revenue On Demand Model 15
Healthcare Solutions
Smart Front End – A unique package of data conversion and pre-adjudication technology products
Web-Based Solutions – A suite of four Web tools that facilitate member self-service, broker information and employee enrollment.
Benefit Administration Systems – Mature, time-tested ASP solutions for enrollment, plan administration, billing, claims, consumer-driven health plans (HRA/FSA) and fulfillment.
Provider Management – A combination of proprietary technologies and services delivering clean provider data and flexible eligibility matching and data transmission.
Post Adjudication Services – Services that simplify fulfillment, payment, reporting and analysis
For more than 40 years, we've helped TPAs, insurance companies, MCOs and self-administered employers relentlessly attack inefficiencies and reduce costs.
Healthaxis wide array of products and services help payers drive down costs and improve operational efficiencies.
Our ability to integrate and automate critical administrative processes enables customers to focus on their core competencies while providing their customers with a higher level of service.
TPA’s reduce administrative expenses, and improve operational efficiencies.
Insurance companies and MCOs maximize margins, reduce medical claims processing costs, improve operational efficiencies and mitigate risk.
We Combine Technology and Service to Deliver Value
Outsourced Services Recurring Revenue On Demand Model 16
A/P Outsourcing
We help improve A/P work processes by eliminating paper forms and automating workflow.
Our A/P invoice processing solutions enable our customers to capture, route, and track information electronically and delivering invoice data automatically to your back-end system.
We scan incoming invoices and capture all relevant information from the image (for example: invoice date, invoice number, purchase order number, and invoice total). Our A/P solutions also give our customers the ability to automatically match purchase orders with invoices, eliminating labor intensive manual matching.
Accounts Payable departments are constantly challenged by the rising costs of processing and handling paper invoices.
The Solution - Automate Accounts Payable Processes
Outsourced Services Recurring Revenue On Demand Model 17
HR Outsourcing
We are both a human resource BPO direct service provider and an expert BPO human resource project manager
We support businesses
HRAdvocate, our HRIS solution, is provided on a hosted, SaaS, or licensed basis
Senior customer executives take great comfort from the fact that the ongoing management of their critical human capital resources will be handled by our human resource business experts who are well versed in the who, what, where, and why of human resource BPO
HRIS
Self-Service Portal
Recruiting
Payroll and System Integration
Benefits Administration
Compliance Administration
Reporting and HR Metrics
Succession Planning
Training Administration
System Security
Employee Relations
Staffing
Legal Compliance
Performance Management
Compensation Planning
Vendor Management
HR Process Redesign
HRIS
Self-Service Portal
Recruiting
Payroll and System Integration
Benefits Administration
Compliance Administration
Reporting and HR Metrics
Succession Planning
Training Administration
System Security
Employee Relations
Staffing
Legal Compliance
Performance Management
Compensation Planning
Vendor Management
HR Process Redesign
New to the human resource BPO market Established businesses already
outsourcing human resources Businesses that want to maximize the
ROI of their in-house workforce
Comprehensive Products & Services
Outsourced Services Recurring Revenue On Demand Model 18
Rapidly Expanding Marketplace
Market size in 2015 projected at $750B
Market size in 2015 projected at $750B
Today’sGlobal BPO Market
is $400Bgrowing at 10% CAGR
Today’sGlobal BPO Market
is $400Bgrowing at 10% CAGR
Significant portion of newgrowth coming from middlemarket – since there is low
penetration to date
Significant portion of newgrowth coming from middlemarket – since there is low
penetration to date
Market rapidly expanding toinclude processes that cutacross all business sectors
and industries
Market rapidly expanding toinclude processes that cutacross all business sectors
and industries
Globalization and economicuncertainty will accelerate BPO growth – especially in
the middle market
Globalization and economicuncertainty will accelerate BPO growth – especially in
the middle market
Middle market demands pricecompetitive, comprehensiveflexible service offering with
on-shore touch points
Middle market demands pricecompetitive, comprehensiveflexible service offering with
on-shore touch points
Outsourced Services Recurring Revenue On Demand Model 19
EnterpriseSize
Capability/Global Presence
Small, Niche
Providers
Small, Niche
Providers
IBMAccenture
HP
IBMAccenture
HP
Middle Market Focus
CAGR=+15%CAGR=+15%
Enormous Market OpportunityEnormous Market Opportunity
Our Target Market
Middle Market Companiestypically between $500 million
& $3 billion in sales
Our Target Market
Middle Market Companiestypically between $500 million
& $3 billion in sales
Outsourced Services Recurring Revenue On Demand Model 20
Peer Group Analysis
Outsourced Services Recurring Revenue On Demand Model 21
Investment Highlights
Significant market opportunity
“Green Field” - Largely untapped middle market target
Significant cost savings opportunity for outsourcing customers
Cross selling initiatives
BPOMS + HAXS
BPOMS comprehensive service platform
“One Stop Shop” offers a scalable comprehensive outsourced back-office solution for middle market enterprises
Low BPO penetration
Plays well in uncertain economic times
CFO focus
Building SaaS enabled BPO – comprehensive service offering
Outsourced Services Recurring Revenue On Demand Model 22
Investment Highlights
Strong management team
“Cash In” investors
Significant combined business process outsourcing experience
Acquisitions and business integration experience
Tremendous shareholder value creation opportunity
Initial growth platform already built
BPOMS + HAXS – building critical mass
Currently under-valued
Business model yields significant operating leverage
Cost savings sell to customers – no additional spend
Low Risk Investment
Marketplace Credibility
Transform into impressive On Demand Multiples
High Incremental Margins
Plays well in uncertain economic times
Recommended