Industry news

  • 17 Jul 2015 12:00 AM | Anonymous

    Despite the global annual contract value (ACV) for the first half of 2015 ($6.2 billion) declining seven per cent year-on-year, ISG’s latest global Outsourcing Index has revealed that numerous world-wide outsourcing records have been broken in the second quarter of this year.

    A record 451 contracts valued at $5 million or more were signed in the second quarter of 2015, along with a high of 754 agreements in the first half of the year. These achievements were all managed despite a lacklustre first quarter – one of the slowest quarters of the last decade.

    ISG noted that the sharp increase in activity has come as buyers continue to negotiate a higher number of deals at a lower value, opting to avoid getting locked into cumbersome, long term contracts at a time when a wave of new technologies and operating models are causing significant disruption in the ITO and BPO markets.

    ISG president John Keppel commented that three of the past four halves have logged the highest outsourcing adoption counts ever: "We're seeing a clear and continuing trend towards more deals at lower value.

    “From the start of the recession in 2008 until now, counts have nearly doubled, while ACV has risen only modestly. Technology has changed significantly during this period, which saw the beginning of the digital as-a-service revolution and its continuing pervasive impact on the global services market.

    "It's particularly noteworthy that ACV rallied from a dismal first quarter to pass the $6 billion mark without any significant aid from mega-relationships this quarter. The second quarter had only two deals with ACV greater than $100 million, a low not seen in many years. Clearly, it's the size of the demand, not the size of the deal, that is driving this market."

    You can access further information on the ISG Outsourcing Index here.

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    Related: Every Service Provider Worth Knowing in the Global Outsourcing Market, According to ISG

  • 17 Jul 2015 12:00 AM | Anonymous

    ISON BPO, the BPO and call centre services firm, has brought nine more contact centres to the African region this year, requiring an additional 5,000 employees.

    The company currently has over 7,000 employees across 12 countries, including 10 centres in sub-Saharan Africa with 4,500 individuals working there.

    Four of ISON BPO’s new centres are being set up in Nigeria, requiring a further 4,000 employees. The firm currently employs 1,300 individuals in the country, 99 per cent of which are local Nigerians. Airtel and AIICO are two key clients of the Nigeria-based centre.

    Pravin Kumar, CEO of ISON BPO, said: “Nigeria has a huge potential for growth and development, especially with the availability of strong, vibrant and talented workforce. One of our visions for Nigeria is to upskill the local human talent and develop it as an Offshore Call Center hub and also add significant value for our customers both internally and externally.

    “It should not be difficult to create 25,000 jobs in one-to-two years in this space and generate export revenue of around 400 million dollars in this space. It can then grow from there.”

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    Related: Why Saudi Arabia could be the Next Big ITO Market

  • 17 Jul 2015 12:00 AM | Anonymous

    arvato Systems has chosen Violin Memory to host its all-flash storage arrays, deciding against going with one of the “big six” storage suppliers such as HP or IBM.

    arvato opted for Violin’s services after it identified the need to provide storage for customer services based on large external databases, owned by Oracle and SAP.

    “We needed IOPS higher than 100,000 and believed we would need up to 500,000 IOPS and this was not possible with old fashioned spinning disk storage,” said Jesko Jacobs, senior data center manager at arvato Systems.

    The huge IT service provider considered proposals from the likes of IBM, HP, Hitachi and EMC, but decided to concentrate on flash storage specialists instead, hence why Violin Memory was ultimately chosen.

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    Related: Goldman Sachs Moves to Revolutionary IO Datacentre in Slough

  • 16 Jul 2015 12:00 AM | Anonymous

    Customer relationship management company Groupe Acticall has agreed to buy Sitel Worldwide Corporation for an undisclosed amount.

    Through its acquisition of Sitel, Groupe Acticall will gain access to 61,100 employees, advanced technology solutions, a number of high profile customers and over 30 years of industry experience. The French-headquartered firm already has 7,500+ employees and over 65 million customer contacts managed annually.

    Sitel will continue to operate as an independent brand, owned by Groupe Acticall, upon the closing of the acquisition, which is still subject to government and regulatory approvals.

    Peter Ryan, principal analyst at Ovum, wrote on Ovum’s blog that the news was “of little surprise among watchers of the contact centre outsourcing space” and that Groupe Acticall “will clearly benefit from Sitel’s global presence, which counts 21 countries and 40 languages.”

    He went on to speculate on how Groupe Acticall will facilitate Sitel’s revenue growth:

    “Over the past two years, Sitel’s top line only grew one per cent annually, which was lower than most of its global competitors. That it will now be owned by a firm that has a legacy in CRM and that understands the nature of the contact center sector is a positive first step in improving its revenue performance.

    “Groupe Acticall should provide Sitel with the flexibility and backing required to further expand into value-added solutions, explore new vertical market opportunities, and prospect for contracts in emerging demand centers.”

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    Related: Wipro steps up digital offering with design firm acquisition

  • 16 Jul 2015 12:00 AM | Anonymous

    In December 2014 Northamptonshire County Council announced plans to outsource services in a bid to save £148 million over the next five years.

    The council currently employs around 4,000 staff but plans to downsize to a core workforce of 150 once the outsourcing project is complete. The majority of its services will be outsourced to four independently operated “community interest companies” that will be free to compete with others for council services.

    Representatives from UNISON, Britain’s biggest trade union, have expressed concerns regarding the future jobs of current council staff (who are likely to be TUPE’d) and whether other councils will follow Northamptonshire’s lead, suggesting that this project could be “the beginning of the end for public services as we know it.”

    Tonia Williams, regional organiser at Unison, said: “The way this is being presented to staff is that everything is going to be okay, you will all have jobs in the new community interest companies.

    “But what they are not really being honest about is that they can set these companies up, but further down the line the contracts for Northamptonshire’s council functions could go out to the open market.”

    However, earlier in the year council leader Jim Harker claimed the council’s traditional methods “not only no longer work financially, but also do not meet the needs of the citizens.”

    The changes are likely to be the biggest seen in Northamptonshire County Council’s 125 year history.

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    Related: Local councils must find extra £1 billion by 2020 to fund new minimum wage

  • 16 Jul 2015 12:00 AM | Anonymous

    Capgemini’s community challenge has taken place for the fourth year running - 25 students were brought together for a week, split into five groups and given the opportunity to help charities of their choice.

    Team Crane, who worked together in order to raise donations and awareness for Telford District Rotary Club, were this year’s winners, due to the impressive feat of redesigning all existing media for one of the charity’s causes, as well as introducing a number of exciting new marketing campaigns.

    Edward’s Trust, Small Woods, Homestart and Telford and Wrekin’s Council for Voluntary Services were the other charities focused on during the event.

    The week was seen as a huge success; the participating students were said to have left Capgemini and the charities involved “speechless and amazed.”

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    Related: Capgemini finalises acquisition of IGATE

  • 16 Jul 2015 12:00 AM | Anonymous

    Staying on top of the latest threats to a business can be a significant investment in resources – technology, staffing, and management of IT estates are all necessary. Cyber threats are covert and so organisations often don’t know an attack is happening or even whether a security breach has taken place – various reports, including Verizon’s Data Breach Investigations Report, puts the discovery of data breaches into weeks and months.

    This is compounded by the fact that cyber security is complex. Managing the myriad of security solutions within an organisation can be challenging to say the least. This problem only grows as a business gets larger. In the largest organisations you’ll find dedicated IT security teams – but this is costly and out of reach for many SMEs. The compromise is that IT teams need to take on security roles as well as continue with their day-to-day work.

    Which takes me to my third point quite nicely – cyber attacks are continuous. There is no let up. Attacks happen 24 hours a day, seven days a week and they happen all year round. Anecdotal evidence from a number of IT security professionals also suggests that cyber attacks actually increase during public holidays, when staffing levels are often at their lowest.

    Having a robust security infrastructure in place will always be vital, and will stop the majority of threats targeting your network, but a determined hacker will always find a way. They only need to find one small weakness in the network security architecture to gain a foothold into the organisation.

    The benefit, therefore, of outsourcing part, or all, of an organisation’s security operation is that managed security service providers can make threats visible, help to eliminate the complexity of security and are able to provide continuous monitoring, freeing up internal IT personnel to focus on other business critical IT operations.

    Is the firewall king?

    Firewalls are the perfect example of the challenges faced by IT teams. They are often overlooked and neglected for more innovative technologies that can protect against Advanced Persistent Threats (APTs), zero-day exploits, advanced malware and other threats.

    Firewalls were first developed and deployed 25 years ago, and have been on the front lines protecting organisations ever since. Firewalls have two main purposes – they filter traffic coming from the Internet coming into your network, blocking the known bad traffic and threats, and controlling what information your network is sending outside the corporate network.

    A firewall works by breaking down TCP/IP traffic into packets, which it then inspects to ensure it meets the criteria set out by the firewall policies and rules before letting that traffic through. Firewalls will block everything that hasn’t specifically been allowed, but rules and policies can be amended and configured as and when needed. Alternatively, you can allow all traffic through a firewall and set specific policies to block certain traffic.

    And here lies the challenge. For home users, and for small businesses, managing firewalls is often as simple as ensuring each computer and laptop has a firewall, but as the number of devices grows, so does the challenge of ensuring firewalls remain fit for purpose. Gartner noted that through 2018, more than 95 per cent of firewall breaches will be caused by firewall misconfigurations.

    Let that sink in for a second. 95 per cent of firewall breaches are essentially down to human error and not through some flaw in the technology itself.

    This all comes down to the management of the firewall and ensuring that rules and policies for allowing, and denying traffic, are robust enough to protect the organisation, without being overly restrictive from an employee’s perspective. But, it’s not just firewalls that need managing – almost every piece of IT security equipment needs similar time and focus to ensure they’re working to maximum effect.

    Ultimately, managing firewalls and other network security products is a major task and one that requires dedicated internal IT security teams. For many there simply isn’t the budget to have enough skilled IT pros internally, so increasingly we’re seeing end-user organisations outsourcing parts, or all, of the security operations.

    A managed service can help to solve the problems of covert attacks, complex security, and continuous cyber attacks. But more importantly, outsourcing the IT security element of your network operations means that IT teams can focus on their core competencies, leaving the complex management of security to the professionals

    Networks First is a leading managed IT services and network support provider based in the UK.

  • 15 Jul 2015 12:00 AM | Anonymous

    arvato UK has landed a contract with NHS National Services Scotland (NSS) to deliver HR though the launch of an innovative online self-service platform.

    NHS NSS provides shared services and strategic support to NHS Scotland. The organisation will roll out “HR Connect”, an HR system developed by arvato, to be used by 3,600 specialist NHS staff based in 24 different locations around the country.

    The platform will provide those employees with 24-hour access to a wide range of HR policies, procedures, guidelines, tools, hints, tips and a library of FAQs. A similar arvato system is currently being used by East Cheshire NHS Trust and resulted in a 25 per cent drop in the number of HR helpdesk calls within its first year of implementation.

    “The new system will enable staff to access the information they need and carry out their line management responsibilities without having to rely on the HR Service Centre that only operates in office hours,” said Jane Fewsdale, workforce information, systems and business support manager at NHS NSS.

    “With our staff spread far and wide across the country, this is an important development for the organisation, making things easier for our employees while delivering efficiencies and reducing the administrative burden on our HR team.”

    Sally Campbell, director of health at arvato UK, commented: “Together with the budget challenges organisations are facing, the clear link between employee-wellbeing and patient care, identified by the Francis Review, is driving HR departments to fundamentally change how they deliver services.

    “Our central platform, which now delivers services to more than 40,000 NHS employees across the UK, was developed in a live NHS environment and will provide National Services Scotland with a wealth of best practice support.”

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    Related: Xerox wins £40 million NHSBSA printing contract

  • 15 Jul 2015 12:00 AM | Anonymous

    Fuji Xerox has signed an eight-year contract with the South Australian government worth AU$33 million, to assist with moving the state’s property administration system to an online platform.

    The document management solutions team at Fuji Xerox will do so using its integrated land information system (ILIS) – the software will replace 28 legacy applications used by the client for over 30 years now.

    Relational Data Systems, a Fuji Xerox software partner, will be responsible for configuring ILIS and will also partner in providing ongoing support. ILIS was originally developed by Fuji Xerox for the Australian Northern Territory government during the early 1990s.

    Stephen Mullighan, Australian Minister for Transport and Infrastructure, said: "This new system gives the legal, finance, and conveyancing industries 24/7 access to core business systems and access to government information and products via a single login."

    Fuji Xerox co. is a joint venture partnership between Fuji Photo Film co. and Xerox.

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    Related: Xerox wins £40 million NHSBSA printing contract

  • 14 Jul 2015 12:00 AM | Anonymous

    The FT has reported that four of the largest providers of outsourced services to the public sector – Serco, Mitie, G4S and Interserve – have welcomed George Osborne’s plans to bring up the minimum wage to £7.20 per hour from April 2016.

    All four companies have said that their long term public sector contracts include provision to adjust in the case of new government legislation.

    A spokesperson from Serco said: “We welcome any measure that addresses basic pay within the UK and provides a consistent approach to pay levels across our industry.”

    Many care homeowners, however, have claimed they have no such protection and currently employ around 40 per cent of their staff on the minimum wage.

    Martin Green, CEO of Care England, commented: “We want to see employees in the care sector being better paid, but there is a big question over affordability… the increase in the minimum wage will lead to some business failures.”

    He went on to add that smaller businesses would be hit particularly hard, while their larger equivalents may withdraw from areas where local authority funding becomes particularly tight.

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    Related: How the summer Budget will affect the UK outsourcing industry

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