Industry news

  • 30 Oct 2014 12:00 AM | Anonymous

    Interserve, Sodexo and GEO Group have been included as part of the preferred bidders for 21 criminal probation service contracts worth a total of £450 million a year.

    According to a recent article, Britain plans to outsource more of this work and those chosen will be responsible for running the bulk of Britain's rehabilitation centres for around 200,000 low and medium-risk offenders, which includes overseeing community orders and supervising unpaid work. Others chosen include seven private firms, sixteen charities and voluntary organisations and four probation staff mutuals.

    French supplier Sodexo was provisionally awarded six contracts in partnership with the offenders rehabilitation charity NACRO, while British based Capita did not win any of the contracts it applied for. Interserve has been selected for five contracts as part of a partnership with social enterprise firm 3SC and charities Addaction, P3 and Shelter with the collective value of Interserve’s contracts expected to be worth around 600 million pounds over seven years. Another consortium chosen includes four charities and Amey (British subsidiary of the Spanish group Ferrovial) which has been awarded two contracts. G4S and Serco were banned from bidding.

    Contractors will only be paid in full if reoffending rates fall and work is expected to commence early next year.

    The changes represent the largest level of outsourcing of probation services in the world. It means 70% of the work will be contracted out to private companies and the voluntary sector.

    Bath probation staff move to strike over outsourcing plans

  • 30 Oct 2014 12:00 AM | Anonymous

    Free online Outsourcing Lifecycle Assessment launched to rapidly identify and fix outsourcing pain-points

    The National Outsourcing Association (NOA), the professional body and industry association for outsourcing, is today launching its corporate accreditation programme, developed to recognise and reward excellence in outsourcing by the users of outsourcing services.

    The NOA’s corporate accreditation programme is an in-depth assessment process that measures outsourcing performance against world-class standards with the key objective of driving best practice in outsourcing, so that companies can achieve the best value from their outsourcing programmes. It gives an organisation’s stakeholders and investors assurance their outsourcing is governed in line with global best practice standards – something frequently asked, but previously hard to prove.

    The NOA’s accreditation programme has been developed over the past 12 months around the NOA’s Lifecycle Model, which has helped imbed best practice into over 200 organisations and been subject to continuous critique and review. For the first time, all that learning has been condensed into an integrated platform of tools and templates that tells an organisation, quickly and easily, exactly how they compare to leading-edge best practice. The NOA has partnered with Op2i to develop the platform which is powered by Governance Director, Op2i’s enterprise governance system.

    As the first point on the journey to accreditation the NOA has developed a free and easy-to-use online Outsourcing Lifecycle Assessment (OLA) tool designed to give rapid insight into the performance of a project/division/company’s outsourcing maturity level against the NOA’s tried and tested Lifecycle model. The online assessment, which takes circa 15 minutes to complete, comprises 87 questions and contrasts inputted answers to NOA Lifecycle Model knowhow to deliver an immediate outsourcing maturity rating and personal performance report. The report also highlights areas for immediate process improvement and indicates readiness for industry accreditation.

    Kerry Hallard, CEO of the National Outsourcing Association, commented: “Our Corporate Accreditation programme and free Outsourcing Lifecycle Assessment tool further demonstrate NOA’s commitment to driving excellence in outsourcing and complement our portfolio of professional qualifications for those working in outsourcing. Although the full accreditation programme is targeted at the buyers of outsourcing services, we actively encourage suppliers and advisors to use this tool in order to consistently drive performance across the outsourcing spectrum.”

    Organisations showing readiness for full accreditation can either: subscribe to the NOA’s OLA integrated platform to quickly and easily guide them through two further tiers of Lifecycle processes whilst assessing their outsourcing maturity against NOA standards; or they can review their own performance against the NOA’s published LifeCycle model. Organisations then need to book in with the NOA for a pre-audit meeting or full audit session. The full audit involves reviewing practices in greater detail (at tiers 2 and 3) and providing the NOA assessor with clear evidence that practices meet NOA standards.

    The NOA will accredit organisations who achieve Silver (Competent) and Gold (Excellent) standards, but will also categorise outsourcing maturity at Basic and Foundation levels. Accreditation lasts for three years, with a requirement to demonstrate ongoing commitment to best practice annually. Full accreditation can be achieved within a 3 month window if outsourcing processes are largely already optimised. It could however take in excess of two years if an organisation needs to embark upon a significant improvement journey.

  • 30 Oct 2014 12:00 AM | Anonymous

    The Department for Education is proactively looking to inject competition and contestability into “one of the last areas of local government not subject to market forces.”

    The DfE’s consultation to test the market appetite for the outsourcing of child services has naturally generated an emotional response, as the perceived “privatisation of children’s social services” is considered “radically different, crown jewels stuff.”

    Before we go any further, outsourcing and privatisation are different - most of you know that, I’m sure. But a lot of people don’t know the difference and think the DfE is trying to sell off child services, when it is in fact exploring alternative options and looking to improve services because it has serious concerns about how things are being done at the moment. According to the Guardian, “at least 10 struggling council children's departments could face official intervention.”

    Where Ofsted deems a child services department to be failing, the DfE needs to find alternative solutions. As Alan Wood, director of children’s services in Hackney, and DfE advisor, says: “If we carry on doing what we do in the way we do it, we just get the same, only there will be less of it.”

    I’m a Mum, and the fact that there are children out there who are vulnerable and in trouble and in desperate need of external support saddens me. Children need help, urgently, and I really believe that well thought-out private sector involvement can improve the quality and amount of help on offer.

    I don’t agree that this move is ‘privatising vulnerable young children’ - this is a move to wrestle control from social services departments that Ofsted reports are failing, and improve services. Whatever your ideology, that’s a good idea, right? Who could argue otherwise?

    The DfE thinks so too, and is engaging in informal conversations to find ways to improve things, and wants to create a vibrant market for the private and third sector provision of child care services. This could be the only way the desperately needed transformation is going to happen. According to the Guardian, the DfE is worried that “many of England's 152 children's services do not have sufficient in-house expertise or staff capacity to drive through improvement plans.”

    But private sector providers have a huge appetite for transformation, and the expertise and capital to make bold process improvements and drive for efficiency. Combine that with the expertise of appropriate third sector organisations and there could be huge positive effects, using technology/ apps to streamline the paperwork side of things, improving the availability of face-to-face time with kids and parents, ensuring the best advice is passed on and nothing is missed, and also building a body of real-time evidence to improve transparency and accountability in the big decisions.

    At the same time, there does need to be pragmatism and flexibility in the delivery of child services; they are complex by nature and contracts must be designed to empower social workers to do the best possible job… there can be no output-based, itemised billing; the contracts must be built to put the children first, not box ticking over practicality, not time-sheets over quality time. If ever a contract was crying out for an outcome-based approach, it’s this. This needs to be gotten right first time. There is no other option.

  • 29 Oct 2014 12:00 AM | Anonymous

    Opinion polls show immigration as a major concern form voters a concern which has helped fuel the rise of UKIP. UKIP have backed more immigration curbs at the next election to tackle the problem.

    A new report showed the outsourcing giant Capita who had been hired in 2012 to check the records of more than 250,000 people who should have been removed the UK, failed to trace more than 50,000 people. The parliament’s Public Accounts Committee also highlighted in the report that government could not check whether those who had been refused the right to stay in Britain had actually left.

    The damming report has put Cameron’s government under fire with The Committee, made up for lawmakers from the 3 main parties saying it was “disturbing” that the government did not know where these people were.

    For further information please click here.

    Immigration policies continue to restrict recruitment

  • 28 Oct 2014 12:00 AM | Anonymous

    According to a Dutch paper, KLM, plans to reduce its workforce by 7,500 jobs (25%) largely through outsourcing.

    The report goes on to say that the Dutch arm of Air France is expected to announce this at the release of the quarterly earnings and hopes it will help it to cut 4.4 billion euros (3.4 billion pounds) in outstanding debt by reducing costs.

    Air France reports improved benefits from private cloud

  • 27 Oct 2014 12:00 AM | Anonymous

    The opening of the Science Museum gallery dedicated to the history of ICT is celebrated by Her Majesty The Queen by sending her first tweet.

    The tweet read: “It is a pleasure to open the Information Age exhibition today at the @ScienceMuseum and I hope people will enjoy visiting. Elizabeth R.”

    The gallery explores the technological breakthroughs that have transformed how humans communicate, listening to personal recollections of people whose first experience of television was watching the Coronation in 1953.

    The gallery opened on the 25th October – you can find out more by visiting the Science Museum website here.

    Councils still using shared services and outsourcing to enable transformation

  • 24 Oct 2014 12:00 AM | Anonymous

    According to a recent article on the BBC website, The Department for Work and Pensions are investing in electronic pads that recognise job seekers' signatures using biometric software will be installed at centres around the UK, along with PC workstations and free wi-fi.

    They anticipate that by installing computers, this will save £2m per year.

    DWP award contract to CSC

  • 23 Oct 2014 12:00 AM | Anonymous

    World renowned diamond-mining and luxury Jewellery company De Beers have signed a global IT infrastructure deal with outsourcing provider HCL. HCL will supply De Beer’s global IT network where previously IT had been managed by regional providers. The agreement will see HCL run datacenter operations, a multi-lingual service desk, LAN Management, security services, service management, desk side support and project services. HCL will provide services to remote locations like Snap Lake mine in Canada which can only be reached via ice roads in the winter.

    TCS and HCL disappoint whilst Infosys plays catch up

  • 22 Oct 2014 12:00 AM | Anonymous

    Philip Morris International (PMI) have picked Wipro to manage their IT infrastructure. The five year contract will include support for servers, storage, backup and applications with the aim to save costs and better be able to serve and support their workforce around the world. PMI owns seven of the world’s top 15 international cigarette brands including Marlboro.

    IBM and Wipro in the running to win Rs 1,200 crore call centre deal

  • 22 Oct 2014 12:00 AM | Anonymous

    According to a recent article, the German airline Lufthansa is close to selling its IT infrastructure division and completing an outsourcing deal with IBM. It is due to result in a 240 million euro ($305.57 million) pre-tax charge in 2014. The airline has stated that the deal is expected to close at the end of the first quarter of 2015 and will yield an average of 70 million euros in annual savings.

    Lufthansa plans to outsource ground staff

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