Xoserve Announces Intention to Restructure and Create Commercial Sister Company
Xoserve has announced it is in the final stages of creating a new, independently owned sister company and restructuring its existing operations.
Published on 26 Jan 2021
Xoserve has announced it is in the final stages of creating a new, independently owned sister company and restructuring its existing operations. The move comes following confidential consultation with customers and other stakeholders over the last year and is expected to complete in March 2021.
In late 2019 the Xoserve Board of Directors undertook a comprehensive strategic review into how Xoserve discharges its role as the Central Data Service Provider (CDSP) for the UK gas market. The Board considered the implications of a net-zero future, an increasing need for flexibility, innovation and value for money. The Board concluded that Xoserve’s current delivery model for CDSP services limits how Xoserve can respond to the changing shape of the energy market and that without action, this would impede Xoserve’s strategy to increase customer satisfaction, reduce the cost of service delivery and bring innovative solutions to market.
As a result, the restructure will see Xoserve become a specialised contract management company, retaining its role as the CDSP and accountability for delivery of the Data Services Contract (DSC) to Xoserve’s customers. Xoserve’s funding, governance and ownership will remain unchanged. Approximately 50 employees will remain with Xoserve including a number of new hires to bolster the company’s contract management expertise.
Meanwhile, a new company called Correla will be created by Xoserve as an independently owned business, which will deliver services back to Xoserve through a commercial contract. This contract will embrace the existing commitments whilst adding the flexibility to deliver new products and services. Correla will specialise in technology and data services. The majority of Xoserve’s employees and strategic partnerships will transfer to Correla.
The Board of Xoserve has subsequently undertaken a competitive process to identify a suitable investor for Correla and is currently in the final phase of a period of due diligence with the expectation that the investor will be announced, and the sale completed, during March 2021. A key factor for the Board in its selection process was for the values and objectives of the chosen investor to be compatible with the sustainability needs and requirements of the UK energy market, its customers and consumers.
Subject to entering into an agreement for the sale of the new company, the Board will appoint Stephanie Ward to lead the restructured Xoserve organisation. Alongside her other skills and wide experience, Stephanie is an expert in contract management having spent much of her career with major outsource providers Cognizant and Capgemini.
Sian Jones, the current Chief Executive Officer (CEO) of Xoserve, will become the CEO of the new company, Correla, following separation.
For further information about the restructured Xoserve organisation, visit here.
The Xoserve Board would like to take this opportunity to thank all customers who have engaged in the process over the last year; the challenges and support provided in equal measure have been invaluable.