Industry news

We finally have some clarity on the future of the United Kingdom, it appears Brexit means ‘hard’ Brexit for the government as Mrs May edged us closer to leaving the customs union. Quite simply, this means that the UK will be excluded from the EU single market and will therefore have to negotiate a new deal with the EU once it leaves. The positive side of this argument is that the UK will get to negotiate new trade deals across the globe, as a member of the union we could not negotiate our own deals. It must be said that we are more certain of the plan ahead, Mrs May has laid out a vague structure which can provide a foundation for negotiations. The Pound appreciated sharply against the Dollar during the speech, most notably when Mrs May confirmed the final agreement would have to go to Parliament.

The employment situation in the UK is looking a bit sticky, as the Office for National Statistics (ONS) reported that the number of people in work slipped by 9,000 to just over 31.8 million in the three months to November. The employment rate held at all-time record high of 74.5 percent and wage growth picked up pace. The suggestion among analysts is that Brexit uncertainty has kept hiring low among firms with wage growth reflecting a skills shortage among professionals and specialists. For more information on the data, click here.

Outsourcing firm Mitie has issued a new profit warning, saying the effects of Brexit uncertainty are causing delays in contract signings. The firm has brought in Sandip Mahajan as its new finance chief in a further change to its top management after a change of CEO’s at the start of the year. It is thought that the introduction of new labour laws are hurting Mitie, although the industry as a whole is adapting well. To learn more, click here.

Infosys, a leader in consulting, technology, and next-generation services, released multinational research findings on artificial intelligence (AI) business impact, market maturity and expectations. The report revealed a clear link between an organisation’s revenue growth and its AI maturity: organisations who report faster growth in revenue over the past three years were also more likely to be further ahead when it comes to AI maturity. Sandeep Dadlani, President & Head of Americas, Infosys, said, “Our research shows that the next four years will witness further spikes in interest, and general bullishness about the significant value and benefits that can be obtained through AI adoption. As an industry, therefore, we must take necessary steps to ensure AI is developed morally and ethically across every part of society and that employees are actively engaged and provided with the necessary training to be central to this journey.” Learn more about Infosys here.

The Economist has been reporting on the importance of constant upskilling and learning in a society where technological innovation sees new developments in employment. It is well worth reading the report in full but in a quick review the report argues that jobs are evolving, becoming a mix of skills and abilities that would have been alien to a worker 25 years ago. It explains the concept of ‘hybrid’ jobs and how teaching and course are adapting to teach applicants practical nano-courses. The need to gain new skills throughout your working life has never been more apparent and important. The GSA offers a wide range of practical workshops in topics like design thinking, RPA & AI, negotiation and governance that can lead to a diploma or MBA.

UK inflation bounced in December 2016, reaching 1.6% up from 1.2% in November. The figure is above expectations although analysts expect higher inflation in 2017 as the fall in the Pound impacts imports with rises being passed to consumers. Some analysts think 3% is possible, especially if oil prices edge up over the coming months. The news may worry the Bank of England, governor Mark Carney noted that the UK’s economic recovery increasingly relied on consumers making price rises a potential torpedo to the economy. Read more here.

Cleverti, an emerging Portuguese technology company, is seeking to strengthen its cooperation with British companies, following a number of successful projects in the United Kingdom. England and Ireland are the main target for Cleverti’s specialized software development. Results so far evidence the added value Cleverti’s business model can bring to UK companies and hence this market has become a priority for Cleverti in 2017. Carlos Coutinho Silva, CEO of Cleverti, explains “2017 will be a challenging year for us. We are seeking to consolidate our client base and also increase our presence in international markets, with a special focus in England and Ireland.“ Beyond the UK, Cleverti’s services currently extend to Belgium, Germany, Norway, Portugal, Sweden and Switzerland, where Cleverti has been helping innovative companies to develop their software products by enhancing internal crews with highly talented IT professionals based in Lisbon.

To learn more, visit www.cleverti.co.uk

WNS (Holdings) Limited (WNS), a leading provider of global Business Process Management (BPM) services announced that the company entered into a definitive agreement to acquire Denali Sourcing Services, a leading provider of strategic procurement BPM solutions. Denali delivers high-end global sourcing and procurement services to some of the world’s leading brands in the High-Tech, Retail/CPG, Banking and Financial Services, Utilities, and Healthcare verticals. Focused solely on procurement, Denali has pioneered “sourcing as a service” in a technology-agnostic capacity, and currently manages over $30 billion in spend on behalf of over 25 clients via a multi-location global delivery network. Over 90% of Denali’s revenue is recurring in nature, and over 95% of revenue is derived from clients in the United States. “The acquisition of Denali Sourcing Services adds a strategic procurement capability to our existing Finance and Accounting solutions. Denali is a unique asset which we believe helps position WNS as an industry leader in F&A, and enhances our Industry Specific Solutions,” said Keshav Murugesh, WNS’ Chief Executive Officer.

To read more, click here.

Every time the government starts talking about Brexit plans, the Pound takes a beating on international markets as investors and speculators try to price in the cost of a hard Brexit on the UK economy. Prime Minister May is expected to announce plans for the future of the UK on the 17th of January, many think the plans will detail a hard Brexit. As the Pound falls, the worry will be its effect on UK consumers, who may find themselves squeezed due to rising prices, which could lead to a challenging year for UK retail. You can read more here.

The Economist briefing this week explains the evolution of the manufacturing industry, from hammer and steel, to computers and consultancy. It is an interesting read for those involved in the sourcing industry as the article details how jobs changed and evolved and how the sourcing industry facilitated improving production and how changing technology has meant that the jobs offshored in the industry are very different to those that were originally in rich countries. If you want to read the article, please click here.