Industry news

Cognizant Technology Solutions has bought TriZetto, the US healthcare IT services provider. Cognizant paid $2.7bn in cash to private equity group Apax – a valuation of nearly four times its $700m turnover. The acquisition grows Cognizant’s healthcare revenue to more than $3bn.

The integrated company will focus on three core areas: traditional IT services; high-growth businesses such as management consulting, business process services and IT infrastructure services; and emerging delivery models, as it looks to capitalise on shifts in health-care information technology driven by regulatory reform.

Although shares originally rose 3% on the back of the announcement, they are now trading flat following speculation that Cognizant had paid too high a price. The deal is subject to regulatory approval and is expected to be completed in the fourth quarter.

With 5 days to go until Scotland votes on the Scottish independence referendum business have being releasing a constant stream of contingency plans to move south of the border in order to mitigate financial uncertainty. TSB, John Lewis, Asda and Tesco Bank are all set to follow suit in the Scottish withdrawal.

Outsourcing will undoubtedly be affected if Scotland vote “Yes” at the ballot box, though some see an independent Scotland would open a new market to outsourcing, international outsources will be meet with unstable economic climate and newest of tax compliance issues.

Outsources currently contracted to the NHS in Scotland could see services being withdrawn with an Independent Scotland planning to reverse all privatisation and outsourcing of NHS services.

Procurement bill passed by the Scottish Parliament

With the introduction of the Mortgage Market Review (MMR) in April, the main challenge for lenders has been how to comply with regulation effectively whilst still delivering excellent customer service and retaining their competitive advantage. As a result, how to efficiently evidence MMR compliance has been, and will continue to be, a key focus for lenders of all shapes and sizes. Audit trails and detailed records will have to be kept to show that lenders are acting appropriately, with robust systems, controls and processes needed in order to manage the production and collation of these reports.

One of the main factors to remain compliant within arrears management is having a clear understanding of each customer’s individual circumstances. After the introduction of MMR lenders must evidence, on request, that they have made customers aware of every single option available to them. They also need to demonstrate that borrowers understand the product they have agreed to, as well as the responsibilities they have to make repayments.

Benefits of outsourcing

Here is where third party software and outsourcing solutions can be beneficial. Suitable software used by well trained and managed teams can help to ensure consistent processes, strong controls and an audit capability, all in a cost effective manner.

It is important that collections departments establish comprehensive insight into each customer with the aim of truly understanding their individual needs. Here, a system that is intuitive to the user can help lenders overcome any customer reluctance to divulge information. Prompts and scripts are provided to help ensure that all the relevant questions and checks have been made in order for a full assessment to take place, with these records providing lenders with the foundations of a resilient case review process.

Outsourcing supports good lending

However, it is not just at the beginning of the customer journey that appropriate processes are important. There are other requirements which are not customer facing, such as ensuring that arrears charges are a ‘reasonable calculation’, rather than an estimate. As a result of this, lenders will have to carry out specific fee justification exercises to demonstrate that fees are both reasonable and fair. The administration associated with these tasks can be time consuming and challenging. Utilising an outsourcer who has a focus on activity costing can provide lenders with the support and transparency they need to meet the regulator’s demands.

As the regulatory landscape of the financial services industry continues to evolve, the importance of policy, process and procedure will continue to increase. Partnering with an experienced outsourcer is one way that lenders can ensure they are working within the regulatory framework, whilst at the same time operating in a time and cost effective manner.

The London Borough of Lewisham have developed an ICT Framework for education. The Framework valued at £60m will support educations bodies and authorities across London to procure IT equipment and services. An estimated 160 suppliers and service providers are to be included in the framework due to operate for 4 years. Suppliers wishing to be included on the framework are to make a bid by October 20th 2014.

Steria awarded £1 billion Cabinet Office contract

One of Michael Gove’s last acts as education sectary will come to pass as regulations permitting English local authorities to outsource child protection services will be established any day now.

Shadow children’s minister Steve McCabe confirmed Labour would wave the new regulations through but promised that a future labour government would scrap if things went wrong.

There has been strong opposition to the outsourcing of children’s services with 72,000 people signing a petition against the move as well as social work advisor Professor Eileen Munro voicing here concerns. The government responded to public distain by restricting the outsourcing agreements to charities and not for profit organisations.

Can Outsourcing Children’s Services Innovate Approaches to Social Care?

Wycombe District Council have signed a five year contract with Capita for the management of a fully integrated IT system hoping to transform its customer service. The contract which is valued at £14m will start in February 2015 and will replace their old managed services agreement with Northgate. Capita will work with Wycombe to extend their self-service opportunities available to citizens including an app they have designed named Engage which will integrate with the councils back office providing more up to date information to the locals.

NOA launches first qualification for the 3.1 million people in the UK’s outsourcing industry

The Bank of England (BoE) first outsourced the printing banknotes in 2003 and looks set to continue down the outsourcing path with a new 10 year printing contract to commence in April 2015. De La Rue who are the current printers of sterling bank notes have been announced as the preferred bidder for the 10 year contract. De La Rue the Basingstoke based firm will print £20 and £50 notes on paper and £5 and £10 notes will now be printed on the plastic polymer material. De La Rue is the largest commercial bank note printer in the world.

Bank of England moves to invest in compliance systems

Intelligent office UK, outsourced service provider of onshore business process outsourcing (BPO) solutions is planning to open its second onshore shared services centre in Glasgow.

The new centre will provide document production, document conversion and digital transcription services to law firms throughout the UK. It will also create over 100 full-time positions adding to its 700 work force.

Clients of Intelligent office UK include Stephenson Harwood, Wragge & Co, Bevan Brittan and Farrer & Co.

Outsourcing on the Up

BP have signed a five year deal with Infosys to provide IT services. The IT Service deal will help support the development of BP apps and improve IT across operations. Infosys has committed to train BP engineers at its Information and Technology University.

Infosys appoints Sikka from SAP as CEO

The National Outsourcing Association (NOA), the industry association and professional body for outsourcing, today launches the outsourcing industry’s first Level 2 qualification with founding client Capita. The qualification, 75% of which is achieved through work-based learning, provides the first broad-based standard for the UK’s 3.1 million employees in organisations which deliver outsourced services to the public and private sectors.

Capita, the UK’s leading outsourcing service provider, is the NOA’s first Learning Centre and founding client for the Level 2 Award following a three-month pilot across 60 employees within Capita Insurance and Regulatory Services.

The NOA has also been working closely with Capita on the development of the qualification to ensure that it is aligned with the real needs of service providers and their clients.

Kerry Hallard, CEO, National Outsourcing Association, said: “This qualification is a game-changer for the outsourcing industry. Outsourcing has oft been viewed as the accidental profession – something people find themselves in. Additionally, staff development and retention is the number one issue for the outsourcing industry today, as it continues to evolve to consistently deliver value-add, business transformation and innovation. This qualification recognises excellence in outsourcing skills and helps position outsourcing as a professional career of choice. But more than that, this qualification can up-skill the three million plus people currently working in outsourcing in the UK today and further help grow and improve this dynamic industry’s performance within the UK economy”.

Andy Parker, Capita chief executive, said: "The qualification is centred around engaging, work-based learning and has successfully wrapped a framework, best practice, assessments and independent verification around the day job. Following the pilot, we now plan to embed the qualification within our employee learning and development programme across Capita. The qualification will serve as a differentiator for talent in the industry, provide assurance to customers of outsourcing services, bridge the skills gaps for people transferring into outsourcing companies from the public and private sector and recognise excellence across the industry."