Coming regulatory requirements for T+1 settlement and the management of operational risk, combined with key industry issues such as consolidation, cross-border trading, changes in privacy laws and disaster recovery, continue to drive the need for new architectures and efficient technologies in the financial services industry. But until now, financial services institutions have had no single-source partner to help them design and implement an end-to-end business and technology solution to meet the requirements of a rapidly evolving industry.

HP and Capco, the first services and technology solutions provider focused exclusively on the financial services industry, now offer one integrated source for customized, large-scale, end-to-end business and technology solutions for the global financial services industry. Under the agreement, which includes a $30 million HP equity investment in Capco, the two companies will cooperate closely in developing, marketing, selling and delivering comprehensive solutions to customers in the capital markets, private client and asset management segments of the financial services industry.

By forming their alliance, HP and Capco have created a resource for translating your firm's most complex business strategies into technology that delivers the right results faster, extending your competitive advantage and positioning you for continued global leadership. Through their global association, HP and Capco will provide solutions to help you address key market issues such as consolidation, cross-border trading, changes to privacy laws, disaster recovery and the move to T+1.

why capco and hp?
Capco is the first services and technology solutions provider exclusively focused on forming the future of the financial services industry, with an emphasis on thought leadership in devising new business approaches and practical solutions. HP is the premier provider of technology architecture and solutions, including the Always On Internet Infrastructure (AOII) in use by financial institutions worldwide.

By combining their complementary strengths, Capco and HP offer a whole that's more than the sum of its parts. Their alliance benefits the capital markets and private client/asset management segments by enabling the translation of demanding business strategies into technology that achieves goals -effectively and quickly. Today's capital markets and private client/asset management segments face accelerated pressures to respond to market and regulatory changes and increasingly sophisticated customers. They need more than strategic solutions. They need the kinds of strategic transformations that HP and Capco have the joint expertise to deliver.

solution offering
HP and Capco provide business-driven solutions focusing on:

• transaction processing
• operational risk management
• straight through processing (STP)
• multi-channel distribution
• data management
• operational and financial performance management
• strategic marketing
• product development
• new operating models
• business process outsourcing

hp and capco joint industry leadership
Your solution incorporates the strengths of both HP and Capco, in a blend that matches your firm's requirements, including:

• strategy and business consulting from Capco
• information technology consulting and implementation from HP
• joint offerings in STP, operational risk management, and other processes and technologies driving financial industry change
• joint offerings to support client interactions, client management, and transaction processing in the financial advisory sector
• custom solutions development and deployment incorporating best-of-breed partners and outsourcing where applicable
• a future-proof platform for your firm's IT success and competitive advantage
• joint thought leadership from planning through execution

solution delivery phases
Capco program management and HP project management are integrated from start to finish, through ordered delivery phases:

• Strategic consulting
• Business consulting
• Solution design
• Software applications
• Infrastructure design/deployment
• IT systems integration and infrastructure
• Business process outsourcing (BPO)

HP and Capco will determine with you which alliance partner is better suited to be the prime contractor or lead for the engagement. Or, if you prefer to have separate contracts-with Capco for the business solution and HP for the infrastructure and system integration-that's how your solution delivery will be set up. No matter which delivery structure works for you, HP and Capco promise a single-source approach designed to keep your project on time and on budget.

ensure the success of your IT projects

According to financial services research firm Celent Communications, 60% of financial services IT projects are severely late, severely over budget or complete failures at delivering the desired result. Celent's research identifies the primary cause of the problem as "a gap between business solution definition and implementation." That gap is exactly what the HP and Capco alliance can bridge. Research firm Datamonitor estimates that capital market and private client/asset management segments will spend $60.4B (U.S.) on IT this fiscal year.

Other factors that increase the risk of IT project problems include:

• lack of integration across the value chain
• starting technology solutions without fully establishing the business strategy
• lack of clear ties between technology and business process improvement
• use of too many technology partners
• shortage of vendor who understand both the business and the IT case

With the high stakes involved in implementing operational risk management, T+1 and other STP-driven business change, the HP and Capco alliance offers your firm a tangible resource to mitigate project risk and optimize success.