Industry news

  • 16 Jun 2015 12:00 AM | Anonymous

    Computerworld has reported that Disney has cancelled its plans to outsource specific IT work offshore to Cognizant, just two weeks after telling roughly 30 of its application developers that they would lose their jobs because of the move.

    This change of heart comes just as the US government has started scrutinising outsourcing deals between US buyers and Indian service providers. The Indian Economic Times (ET) has reported that contracts involving Southern California Edison, Fossil, TCS and Infosys are all under investigation.

    President of NASSCOM Shri R Chandrasekhar told the ET: "Undoubtedly [these probes] would have a damaging impact on future business. It is a serious concern… This has the potential of seriously destabilising the way the sector does business... and frankly, we are also dismayed by the way a hostile business environment is being created.”

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    Related: Former Infosys Head and Capita Executive Join Forces to Create New BPO Startup

  • 16 Jun 2015 12:00 AM | Anonymous

    Worcestershire Acute Hospitals NHS Trust has outsourced IT responsibilities to Computacenter, in order to enable its member organisations to share IT capabilities.

    The county’s three Clinical Commissioning Groups (CCGs) – Redditch and Bromsgrove CCG, South Worcestershire CCG and Wyre Forest CCG – will all be sharing the service.

    Computacenter will also be providing 24-hour remote and onsite support for 9,000 NHS staff spread across 160 sites in the country.

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    Related: NHS Shared Business Services Acquires McKesson Shared Services

  • 15 Jun 2015 12:00 AM | Anonymous

    The Indian Economic Times (ET) has reported that Blackstone Group has dropped out of the race to acquire Serco India BPO, due to the asking price being too high.

    Blackstone was previously thought to be the most likely candidate to buy Serco India BPO, having previously owned the business from 2007 until 2011. However, the private equity firm has now allegedly joined a number of other companies in thinking that the price set by Serco Group for the BPO business is simply too much.

    Many believe that, having bought the business from Blackstone for over $630 million, Serco is unwilling to sell it back for as little as $400 million, despite that being the current estimated value of the business.

    A source “familiar with the matter” told the ET: "They [Serco] don't want to take the hit, but the fact is that the business is just not as valuable. The business is less robust than when Serco bought it and the margins fluctuate. Other European private equity players have also looked at it and backed off.”

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    Related: Sale of Serco India Falters, “Price too High” Private Equity Firms Say

  • 15 Jun 2015 12:00 AM | Anonymous

    Asheesh Mehra, the former head of Infosys Asia-Pacific BPO operations, has resigned from the company in order to launch his own venture.

    Known as Antworks, the new business is a BPO and technology startup that will serve the healthcare and financial services industries.

    Former Capita, TCS and WNS senior executive Govind Sandhu is co-founding the operation. Their offices will be based in Singapore, supported by three delivery centres in India. The new company has been formed with seed capital of $8 million.

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    Related: Gartner “Cautiously Optimistic” about Infosys’ Ability to Hit $20 Billion by 2020

  • 15 Jun 2015 12:00 AM | Anonymous

    There’s been little update regarding the potential merger between Genpact and Syntel since late May, when rumours in the news first started circulating.

    Speculation was sparked by Genpact’s principal shareholder Bain Capital evaluating the acquisition of Syntel, shortly after Genpact lost out to Capgemini in the acquisition of IGATE.

    Many think that the purchase of Syntel would be an excellent strategic move for Genpact. Everest Group CEO Peter Bendor-Samuel commented: "Genpact needs to add an IT capability if they are going to successfully play in the transformation market place.

    “[IT Services firm] Headstrong is not big enough or diverse enough to do the trick. It appears that Genpact finished second in the IGATE sweepstakes.

    “With Bain Capital owning a large stake and being on their board, they are being pushed to be aggressive in growth, both organic and inorganic. An IT firm such as Syntel would be accretive to earnings as well as position them well in the changing market place.”

    As of yet, no spokesperson from Genpact, Syntel or Bain Capital has chosen to comment on the market speculation.

    Watch this space for further news regarding this story.

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    Related: Genpact Takes Steps to Acquire Syntel

  • 12 Jun 2015 12:00 AM | Anonymous

    The role of procurement within organisations is constantly evolving, as demonstrated by the ProcureCon Indirect 2015 Benchmarking report, produced in association with ProcureCon knowledge partner Ariba.

    The report’s findings include:

    • 57 per cent spend of respondents manage in excess of 500 million euros

    • 46 per cent say value delivery is most important to their business

    • IT realted services was identified as the biggest area for spend

    These findings demonstrate that “the role of procurement within organisations is constantly evolving and is no longer just seen as a cost saving function, but pivotal to influencing strategic decisions at a board level.”

    You can download the entire report from the ProcureCon Indirect website.

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    Related: Government Clamps Down on NHS Procurement, Consultant and Agency Spending

  • 11 Jun 2015 12:00 AM | Anonymous

    Multination BPO and tech services company Genpact has been named by analyst firm Everest Group as a “Leader” in banking BPO.

    Out of the 23 firms evaluated, Genpact was one of only two organisations to receive the designation. Market success, scale, scope, technology and delivery footprint were all taken into account during the evaluation.

    Genpact was recently tipped to acquire Syntel by the Times of India, in a deal that would theoretically add $911 million to Genpact’s current $2.27 billion in annual sales.

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    Related: Genpact Takes Steps to Acquire Syntel

  • 11 Jun 2015 12:00 AM | Anonymous

    At a meeting of the London Assembly budget and performance committee, members and guests were invited to congregate and discuss whether the Met should opt to outsource more of its back office services.

    Metropolitan Police Commissioner Sir Bernard Hogan Howe has called for savings of £800 million to be found by 2020. The force has already decided to outsource HR, finance and procurement, but is now also considering whether to outsource command and control, and transport services.

    A number of speakers were called upon to share their points of view. Kerry Hallard, CEO of the National Outsourcing Association, used Cleveland’s police force as an example of how public sector outsourcing can be done correctly:

    “Cleveland Police outsourced its command and control centre – and its overall objective was to take 40 officers from behind their desks and put them back on the street. It wasn’t just about how quickly it could get the phone answered or about money. It’s about the softer things as well.”

    John Tizard, former director of the Centre for Public Service Partnerships added: “The first thing to do is to know exactly what things are currently costing, what providers would be able to deliver and what you would expect.

    “You need to be absolutely clear about what you need to achieve from outsourcing – quality, resilience and price.”

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    Related: Metropolitan Police Outsources 700 IT Roles to Save $800m

  • 10 Jun 2015 12:00 AM | Anonymous

    Rumours have emerged that Wipro is considering the acquisition of UK-based back office service provider Equiniti in a deal valued at well over £1 billion.

    Equiniti is owned by private equity firm Advent International and currently employs roughly 3,000 people. The story was broken by Sky News on Monday 9th June 2015, in a report claiming that Wipro will have to compete with “a clutch of prospective bidders.”

    The two companies have revealed nothing - when asked for a statement, a spokesperson from Wipro responded: “We don’t comment on market speculation.”

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    Related: Wipro Introduces Wage Hikes to Stay in Line with Infosys and TCS

  • 10 Jun 2015 12:00 AM | Anonymous

    Capgemini has announced that it will be launching a 500 million euro ($563.60 million) capital increase in order to fund its acquisition of IGATE.

    Seven million new shares will be issued up, representing roughly 4.2 per cent of Capgemini’s capital, which will be financed by surplus cash and an equity portion.

    A statement issued by Capgemini said: "The capital increase launched today ... aims primarily at early refinancing part of the $3.8 billion bridge loan implemented in the context of the IGATE acquisition, which is still expected to close in the second semester 2015.”

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    Related: Capgemini Acquires IGATE: Hear from the CEOs

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