Industry news

  • 12 Mar 2015 12:00 AM | Anonymous

    The first new university in Britain for 30 years is due to open its doors in 2017. NMITE (The New Model in Technology & Engineering), is opening to tackle the shortage of engineering, technology and science degrees.

    The courses have been designed by business leaders such as Charlie Mayfield, the chairman of John Lewis, the chief executive of GlaxoSmithKline and the corporate development officer from JCB.

    Students will be taught the analytical thinking, innovation and leadership skills that employers seek. NMITE will not be able to award its own degrees at first so they will be awarded through their partnership with the University of Bristol and University of Warwick.

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    Read this next: Transport of London awards ICT contract to Computacenter

  • 12 Mar 2015 12:00 AM | Anonymous

    2014 was a truly terrible year for Serco, marred by a number of contract scandals, including its £285 million prisoner-transfer contract with the UK government which was subsequently investigated by the City of London police.

    The result? An operating loss of £1.3 billion - this accounts for the £656 million loss before exceptional items and the £661 million loss of exceptional items. Those figures represent quite a stark contrast to Serco's £236 million profit in 2013.

    Rupert Soames, who became CEO at Serco in February 2014, said: 'There is a real sense that, having confessed our sins and in taking the punishment, we are now ready to start on the path to recovery.

    'We have all we need: a good plan, strong management to execute it, and, following the successful completion of our proposed rights issue and refinancing, a balance sheet that is an appropriate foundation on which to implement our new strategy.'

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    Read this next: Whitehall award new contracts to G4S and Serco despite being on probation.

  • 12 Mar 2015 12:00 AM | Anonymous

    Trustees of the National Gallery are meeting today to prepare for a third round of employee strikes, which the Guardian reports will include two-thirds of the gallery's workforce.

    The strikes are in reaction to the National Gallery's plans to outsource around 400 jobs based around customer services such as security, visitor services and ticketing.

    The plans were originally announced around nine months ago, in response to government funding cuts and a number of other issues. At the beginning of this year, Public and Commercial Services Union (PCS) spokesman Richard Simcox said 'we do not accept that this is the answer to whatever problems the gallery has,' but without suggesting any potential alternative solutions.

    The National Gallery's plans to outsource have been mislabeled as 'privitisation' by both the PCS and publications such as the Guardian. By outsourcing services, the National Gallery maintains full control and accountability; privitisation would involve the National Gallery losing all control of the operation.

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    Read this next: Protests at Copeland Borough Council Arise Over Outsourcing/Privatisation Confusion

  • 12 Mar 2015 12:00 AM | Anonymous

    Outsourcing IT support services saves time and money for many businesses. This is particularly the case for SMEs whose internal staff don’t have the time or skills to managed complicated office technology — especially considering the rate at which technology changes.

    To gain the most value from managed services, however, you need to prioritise your business-critical IT processes. These processes could include providing on-site employee technical support, managing security concerns for a bring-your-own-device (BYOD) program, or configuring your network.

    The different levels of service

    Once you know which IT functions you want to outsource, you can begin pricing vendors to see what you can accomplish within your budget.

    As you consider the options, you’ll notice that vendors typically offer three support categories: break-fix, proactive, and fully managed. Be aware that as the level of support increases, so does the price tag. Go into your search knowing which option is best for your organisation and don’t be persuaded to pay for services you won’t fully utilise.

    In this article, you’ll learn what to expect from each type of support so you can decide which is right for you.

    BREAK-FIX: BASIC SUPPORT FOR THE BUDGET CONSCIOUS

    If your business isn’t heavily dependent on IT and simply needs a helping hand when a computer or network breaks, break-fix support is a good fit for you.

    With this type of service, an IT engineer will diagnose and fix problems remotely, whether via telephone or online remote computer access. For more complicated issues, the engineer might tackle the problem on-site.

    Break-fix services are based on a pay-as-you-go model, so you won’t spend your budget on unused or underutilised services. The downside is you might experience slower response times and lower quality service. In addition, this reactive approach to IT can become inefficient, particularly if the same problems reoccur.

    PROACTIVE: PREVENTATIVE MAINTENANCE FOR THE IT DEPENDENT

    When your business relies heavily on IT (if you run business-critical apps or use cloud services, for example), you need a higher level of support than break-fix.

    Proactive support helps you avoid problems by monitoring the health of your computers and networks. The third-party support team will immediately address areas of concern, such as low disk space. Unlike break-fix support, technicians are equipped to respond quickly and provide better support.

    By resolving issues in advance, you can minimise the likelihood of outages. Unfortunately, if you don’t choose the right service provider, the costs could be inordinate for the level of support you receive.

    FULLY MANAGED: IT DEPARTMENTS FOR THE IT AVERSE

    Sometimes break-fix and proactive solutions aren’t enough, particularly if your company is IT dependent but doesn’t want to manage the resource requirements for an in-house IT department. In this case, you can replace the function of an internal IT team with fully managed support.

    The service provider will not only oversee your day-to-day technology maintenance needs but also look for recurring problems and ways to strengthen your IT infrastructure. Plus, you’ll benefit from the provider’s knowledge of industry trends and experience with new technologies.

    Managed services give you premium service levels and quick response times — and a price tag to match. Because this top-tier service requires a hefty investment, it’s crucial that you work with a trustworthy provider that will act according to the strategic direction you provide.

    Choosing the right provider

    Regardless of which support tier you decide on, you need to work with the right service provider. First, consider the company’s years of experience and read current customer testimonials.

    If the vendor makes it past your initial investigation, examine the company’s service level agreements to see how quickly the service provider will address your needs. If possible, have the vendor demonstrate typical response times so you can evaluate the service quality.

    When reviewing contracts, bear in mind that new equipment and upgrades are not always covered. Also, not all vendors support BYOD equipment, so if that’s a priority for your business, look for a service provider that can support these devices.

    Additionally, make sure the provider can support all your critical applications and is available during your business hours. To prevent voiding your hardware warranties, verify that the engineers are fully qualified to repair equipment from an array of manufacturers.

    Being mindful of these considerations can help ensure you have a positive experience with the company you choose to manage your IT environment.

    Things to remember

    Outsourcing is not a one-size-fits-all solution for IT problems within your organisation. Randomly allocating lower priority IT processes to a third party or automatically subscribing to a top-tier service level you don’t need won’t give you the results you’re looking for.

    But approaching outsourcing as a strategic decision can unlock business potential that might not otherwise be possible for your business.

    When you outsource priority processes, you can help your business stay ahead of the curve. Your employees will be able to focus on their day-to-day jobs rather than on fixing IT issues, and your company will benefit from the IT support provider’s expertise. Now that’s value.

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    ITS is part of the US Reynolds and Reynolds company which has a strong heritage in data backup and recovery services. In his position, Matt is responsible for developing Managed IT services within the UK and is currently focused on the next generation of cloud and recovery products. Find out more.

  • 12 Mar 2015 12:00 AM | Anonymous

    Managing the individual and organizational effects of change is critical in any business process outsourcing (BPO) relationship. Much like a person’s lasting impression of a visit to a far-away, exotic destination may be shaped largely by the journey to get there, how change is managed while working toward a business goal affects the perceptions of success for that goal. In fact, our research shows that the most successful BPO relationships - those that produce the greatest business value - hinge on the ability of the provider to manage the wide-ranging human and structural effects of BPO on the organization as a whole.

    BPO providers with experience and a proven methodology for addressing organizational challenges are critical for effective change management. This requires a provider with people who are experienced in the relevant functions and technologies, and who possess a deep and extensive knowledge of the outsourced function and the client’s business processes. This often includes coordinating work across large geographic areas, underscoring the need for continuous, on-the-ground information about the client’s diverse regional business needs.

    Helping people from both the retained and outsourced workforces understand the impact of the change and managing that change effectively through the short and long-term are critical components of a successful BPO engagement.

    Managing the retained workforce

    Effectively managing the changes experienced by the retained workforce - and the portion of the business process that remains in-house once outsourcing begins - is a priority. Unless change management effectively monitors both the structure and performance of this group, a dangerous disconnect can arise, eroding the value of the arrangement. Companies that are attentive to transition issues and to supporting the retained workforce have been found to drive topline benefits from a more effective functional organization.

    Efforts should also be made to overcome the natural resistance to change, while giving people the knowledge and skills they need to work in new ways. This may involve the use of innovative programs for training, collaboration and knowledge sharing; cultural assessments to help determine where misaligned attitudes may interfere in the new work environment; and redesigned work processes that go beyond telling people about change, and instead use technologies that embed new ways of working into the applications these workers use.

    The long-term journey

    Managing for the long-term is not just about avoiding risks, but also about identifying opportunities. Clients and providers should work together to define a compelling vision for the future, recognize where the gaps are, and then create a roadmap to take advantage of the opportunities.

    This means making the change adaptive and agile in the face of new business demands that are likely to occur over time. Often, this involves reassessing previously defined end-state targets in light of market shifts and changing business priorities. Business outcomes – not just the achievement of intermediate project goals – must be monitored to keep the program on track through expected leadership shifts and marketplace changes.

    All of this goes into enabling a BPO relationship that is more capable of change– one that recognizes change as a constant presence, and actively seeks it out rather than avoiding it.

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    Learn more about Accenture Operations, the business process excellence and cloud technology specialist.

  • 10 Mar 2015 12:00 AM | Anonymous

    Infosys, India's second largest IT outsourcing (ITO) specialist, announced today that its business process outsourcing (BPO) arm has set up a new offshore centre based in Aguadilla, Puerto Rico.

    The centre houses 250 employees and will be geared towards serving the aviation sector. It has been developed in collaboration with the Puerto Rico Industrial Development Company (PRIDCO) and will specialise in order-to-cash business processes for clients.

    'The availability of a highly skilled and talented workforce, coupled with positive business environment fostered by Puerto Rican government, makes this a favourable destination for Infosys BPO,' said the CEO of Infosys BPO Anup Uppadhayay.

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    Read this next: Infosys and Wipro Scramble to Retain Expiring Outsourcing Contracts

  • 10 Mar 2015 12:00 AM | Anonymous

    Research conducted by Finextra and sponsored by CSC has revealed that 49 per cent of global banks plan to increase their use of IT outsourcing (ITO) over the next 12 months, while 42 per cent will be reducing their use of consultants.

    Just 9 per cent expect to reduce their use of ITO, while 22 per cent plan to increase their use of consultants.

    The report surveyed over 50 global banks towards the end of 2014. The trends revealed suggest that these international banks are looking for a way to keep their IT resources up to date, while keeping costs down. This also explains the lack of popularity for consultants, who are notoriously expensive as a resource.

    The report concluded that consultants charge 'twice the rate of contractors', so cutting them out of the budget it 'a quick way to shed costs.'

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    Read this next: Deutsche Bank agrees major outsourcing deal with HP

  • 10 Mar 2015 12:00 AM | Anonymous

    Surrey County Council will go ahead and extend their joint initiative with East Sussex County Council to collaborate in a number of areas such as IT, HR and financial services.

    This initiative is due to save approximately £8m a year. The shared services will be led by a joint committee comprising of three cabinet members from each authority.

    The contract will also allow other local authorities to join the partnership.

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    Read this next: Protests at Copeland Borough Council Arise Over Outsourcing/Privatisation Confusion

  • 10 Mar 2015 12:00 AM | Anonymous

    French call centre operator Teleperformance is set to open a new site at Gateshead Quays, which will house 300 new staff fulfilling the firm’s technical and customer service operations for an as yet unnamed multinational firm.

    The company, which already employs almost 9000 UK-based staff, provides outsourced services to several major brands including HP and Procter & Gamble within the North-East.

    Recruitment is underway, with a view to beginning operations in the summer.

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    Read this next: PeopleTECH Launches Contact Centre Evaluation Service

  • 9 Mar 2015 12:00 AM | Anonymous

    A report released by AMA Research has predicted encouraging growth in Facilities Management Outsourcing over the next three years, with an annual value increase of 5 per cent.

    The ‘Facilities Management Outsourcing Market Report- UK 2014-2018 Analysis’ forecast the value of the service to reach £23.2 billion by 2018, an increase of £3.7 billion from last year’s results. The report went on to suggest that key opportunities in future will come from local authorities within the public sector, fueled by recession-era drives to make efficiency savings.

    Currently, the corporate market makes up almost 50 per cent of the total facilities management outsourcing market, with a further 25 per cent allocated to local and central government.

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    Read this next: European Commission Awards Largest Ever Outsourcing Contract

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