Industry news

United Airlines have announced plans to outsource 630 jobs across 12 U.S Airports. The jobs affected include ticket and gate staff and baggage handlers. The move comes as a means to improve cost-saving and keeping ticket prices competitive.

Finnair to outsource cabin service

Capita has been chosen as preferred bidder by Wycombe District Council for a £14m ICT contract. The contract will cover internet, administration, customer service and maintenance. This contract is due to replace the current £5.9m contract with Northgate that is due to expire in early 2015. The exact date for when Capita will be formally offered the contract is not known yet.

Capita awarded £24 mil contract for children’s IT services

After troubles over contract write downs last week Serco have received another hit once the company’s bid to continue running London’s DLR service was turned down. Serco had maintained the contract worth 125 million pound a year contract since 1997, Serco are due to hand over the contract in December.

Serco write down value of loss-making contracts

According to a recent article in the Financial Times from Information Services Group (ISG), the amount spent since the coalition government came into power on outsourcing services has doubled to £88bn.

In a bid to seek cost savings through its austerity programme, tens of thousands of public sector staff have been transferred to privately sector management. When compared to the previous fours years under the then Labour government, outsourcing spend was £45bn.

The results of the research go on to show that over the past two years, the value of public deals reached £51bn compared with £30bn for the commercial sector. They also indicate that although the private sector now seek smaller contracts, the government are pursuing larger deals.

Outsourcing to take a hit at the next general election

Serco warned they would have to write down the value of several lossmaking contracts which would hinder annual results. Share prices dropped one percent as a result of Serco’s warnings. The news comes after several high profile exits from its management team in recent months, Rupert Soames took over as Chief Executive officer in May. It’s been a hard year for Serco after it was temporarily banned form biding from all central government work.

It’s been a mixed month for Serco

According to research based on audited accounts from primary Care Trusts, since 2011 there has been a significant increase in the private provision of NHS-funded community and mental healthcare. The Nuffield Trust reported that in 2012-2013, commissioners outsourced £1 in every £5 to private providers which represented an annual increase of 34%. The research went on to show that from 2011/12 to 2012/13, funding for independent mental healthcare services increased by 15%, however funding for NHS-provided mental healthcare fell by 1% in this period.

NHS told to learn from the high street and to privatise

The NHS is looking to outsource cancer care to private health firms, this would be the largest health service outsourcing plan worth over £1.2bn. A number of private healthcare providers have already expressed interest in a £689m contract in the Staffordshire area which would last 10 years, there is also a spate £535m contract to provide end of life care. There is concern however that outsourcing cancer care will result in job losses within the NHS trusts.

NHS told to learn from the high street and to privatise

Atos have signed a 5 year outsourcing contract with RTE a French utility company, responsible for maintaining the French electricity grid. The contract will develop IT infrastructure and applications and workplace services. RTE’s CIO emphasised the importance of IT systems as the nerve centre of their operations. RTE hope to draw on Atos’s experience of innovation to maintain and further improve IT quality to its public service function.

Atos urges government to improve disability claims system

According to Everest’s Annual Contact Centre Outsourcing Report spend has grown 7% in 2013 to reach €70-75 billion signalling steady growth since 2009. The report reveals a higher number of new deals alongside a higher number of contract terminations as buyers consolidate their portfolios and focus on driving more value from their current engagements. Everest’s Report highlights that the call centre outsourcing value proposition has changed over time to move beyond labour arbitrage and the focus is now clearly on multi-channel and industry specific solutions and value-added services to drive process improvement and business outcomes.

Procurement Outsourcing shows 12 percent growth

IBM has been awarded a 10 year contract with Spanish bank, Banco Popular, to manage their tech infrastructure, including their private cloud. 41 employees will be transferred over to IBM with the aim of this deal is to save Banco Popular $200 million over 10 years. IBM have previously worked with Banco Popular to help modernise their data centre and their new tech headquarters in Madrid.

Australian Department of Health take 13 year IBM outsourcing agreement to tender