Industry news

HM Treasury has replaced its old single provider ICT model with a number of new providers. NTT Data has won a three year contract to provide core ICT services to HM Treasury, while Centerprise International has been awarded a contract for printing services. With these new contracts they hope to become more flexible and competitive, keeping in line with the government’s strategy for ICT.

HM Treasury select SME for first 2015 ICT contract

HM Treasury tenders for new ITO contract

The Department of Health has selected the Kahootz cloud collaboration service from online collaboration specialist INOVEM Limited to deliver more cost effective ICT infrastructure through a shared service agreement, providing services to NHS England, NHS Health Research Authority, the Care Quality Commission and 20 other agencies and public bodies.

As part of the shared services agreement and G-Cloud call-off frame work, the Department of Health (DH) will only pay for direct usage allowing DH to scale consumption accordingly.

Oxford NHS to save £1 million through Vodafone cloud service

Sri Lankan ICT seminar

Date: Wednesday 28th May

Venue: Sri Lankan High Commission, 13 Hyde Park Gardens, London, W2 2LU

Time: 9.30 – 12.30

Register: Click here to register

Sri Lanka is increasingly seen as a rival to India as a software development hub as the recent growth in the software sector in India has caused costs of IT staff to rise significantly and labour turnover is becoming a major issue. Pearson , the UK educational publisher already employs 300 people directly in Sri Lanka working on software development for electronic publishing of its materials as well as e- , m- learning and assessment modules. The sector employs already 60000 workers who generate $300 million of export turnover and this is expected to double in 5 years. The London Stock Exchange started outsourcing various IT projects to a local company called Millenium which gradually became so critical to its operations that it eventually acquired it and will give a testimonial at the event.

1. www.Statseeker.com

Owners of have large IT network installations need to be able to manage demand and capacity.

A number of network managers have traditionally downloaded free management tools from the Internet but these don’t always collect data from all the hardware in the network and they don’t “roll up” , whereas with Statseeker’s compression tools , a network manager can see historical data going back months or years if required to see past areas of pressure in the network and use this to predict future use which can help them either reconfigure the network itself rather than deciding whether new hardware is the answer.

Statseeker already have track record in the UK , they already have reference clients such as Peterborough regional college and New College Nottingham , Monash University , and Texas A&M in the USA and Fedex globally. Following an acquisition by an Australian private equity company they are looking both for major endusers and distributors in the UK.

2. www.99xtechnology.com

Looking to meet educational software companies who would obviously not consider outsourcing/offshoring their core product development work , but may need some support in disciplines such as QA , user experience testing , security testing , performance testing , test automation , mobile integration.

A particular characteristic of their work is the ongoing need maintenance of retired modules still in use where the software developers’s focus for its own staff in bringing forward new products which 99X can offer doing anything from running a helpdesk for a retired product on behalf of the client to development of social media/mobile interfaces for such products. They have expertise in Microsoft , Java , IOS/Android and HTML5/JS technologies.

They would be willing to consider either a contractual relationship or possibly an equity joint venture with a UK software company.

3. www.negete.com

Negete have expertise in particularly in mobile applications development , having worked on the engineering for a number of clients involved in mobile learning applications where the client perhaps develops an app completely in one format such as IOS but needs to offer it in Android and Windows too , or needs to develop a series of sequential learning/assessment modules for an e- / m- learning product.

They also have 2 products , one called m-sales which may be of use to companies who use mobile sales forces to take orders in person and recording sales data while travelling. The other is rush-route which uses wifi-triangulation / NFC technology inside buildings to help users guide them around . It’s currently being piloted in the Dubai Mall in Dubai.

They would be keen to meet software providers who have a need for mobile app work as well as any interesting in developing general sales for m-sales (target anyone with a mobile salesforce) or the for rushroute.

4. www.calcey.com

Virtually all of Calcey’s client base is currently in Silicon Valley , often small start ups who are developing mobile learning technologies for blue chip clients , particularly on the IOS platform. Their work has been used in products sold to CISCO’s training division, 3M’s internal training division and Stanford University’s distance learning courses as well as mobile integration with the university’s administration ERP system.

They would be keen to consider a contractual or collaborative partnership with a UK company developing software involving either mobile solutions (including their integration with web apps) , database integration with front end apps.

5. www.cslworld.com

One of Sri Lanka’s largest outsourcing companies with 400 staff , CSL operate dedicate teams on behalf of clients , work on development of complete modules and applications and offer support services. They are a preferred global vendor for Microsoft having developed the search functionality in SharePoint 2010 and 2013 and offer support for large Sharepoint installations globally.

CSL has also operated a BOOT model for clients such as Cambio Healthcare Systems of Sweden where they set up an outsourced BPO operation on Cambio’s behalf in Sri Lanka which was transferred to Cambio ownership once established with CSL being retained for management contract.

They would like to meet any company considering outsourcing of software development.

6. www.orioncity.com

Operator of Sri Lanka’s largest software park , home to Pearson’s captive facility , plus Sri Lankan Airlines and outsourcers such as WNS , Tetran , Camoplast and ISME Netherlands.

They would be keen to meet any company seeking to set up an operation in Sri Lanka offering office space of 300 sq metres upwards.

Registration is free of charge but please register here.

There will be opportunities for the audience to network over coffee with the delegates , however we are organising 1-2-1 sessions from 11.40-12.40 of 20 minutes each for each Sri Lankan delegate should a visitor wish to have a confidential discussion – for these please email robert@edgetradeinvest.co.uk direct.

Liz Samandi of sourcing company Darian looks at how global sourcing can help British industry on the road to recovery.

The manufacturing and engineering industries have suffered as much as any during the long years of recession. Whilst output is now up and the future looks brighter than it has for some time, companies cannot afford to be complacent. In fact, one of the advantages of recession is that it forces businesses to adopt more economical practices; to work leaner and to develop more efficient business models. It’s important to maintain that mind-set once the good times return.

One of the most successful business strategies used by engineering and manufacturing companies during the recession has been global sourcing of components. Whether in times of economic depression or growth, global sourcing enables companies to remain competitive whilst maintaining quality and a cost effective supply chain.

However, global sourcing isn’t a fix-all solution: it needs to be researched thoroughly and carried out with care. Choose the wrong supplier or the wrong location and your reputation (and even your business) could be at risk. With over 20 years’ experience in the industry, these are my key tips for making outsourcing work.

Avoid a monopoly - rising production costs continue to be an issue for most businesses. However, global sourcing offers the opportunity to shop around a range of suppliers for the right combination of price and quality. A supplier with a monopoly also has the balance of power in any negotiation, but if you have access to a range of viable suppliers, they are more likely to offer competitive prices, improved service and stick to deadlines.

Look for quality - when choosing a supplier, ensure that a thorough quality audit is carried out prior to signing contracts and that you have a comprehensive quality agreement in place so standards are maintained. This makes it easier to resolve any quality issues should they arise.

Compare the market - get several quotes from different suppliers to compare price, service and quality. This is particularly important if working with a company based in a country that you have never operated in before as you will need some sort of benchmark to work from.

Get the figures right - don’t assume that going abroad will automatically be cheaper: you need to understand all the cost factors. For example, currency values can fluctuate significantly, so check currency markers regularly. You may be able to renegotiate prices for a more competitive deal. It may also be advantageous to buy in

the local currency.

Know your supply chain - factor in transport and storage costs. It may be financially sound to warehouse products in the UK, a service often offered by a sourcing partner. Price up the options to make an informed decision. With the right transport partner, distance shouldn’t be an issue and you may be able to purchase larger volumes with a quick turnaround time.

Go into partnership - researching overseas markets and suppliers takes a lot of time and requires a lot of local knowledge. Linking up with a sourcing partner saves time and money, whilst offering the necessary local knowledge and presence.

If using a sourcing partner, check that they have offices overseas with staff on hand who are conversant with the local culture. Having associate offices in a variety of key locations means that any problems can be addressed quickly at source. It can also act as an extension of your purchasing department. Your representative can visit suppliers, compare quotes and monitor quality, improving communication by removing any language barriers.

Benefit from bundling - using an outsourcing partner enables that company to ‘bundle’ products for their customers. Whilst you might only require relatively small quantities, your partner can purchase in greater volumes – which means cost savings for you.

Global sourcing may not solve all your problems or be the answer for every company in the manufacturing and engineering industries, but it is becoming increasingly common as technology advances and obstacles to international trade recede. However, it is essential to carry out your research and do the groundwork – or link up with someone who can do it for you. As new markets open up and distance becomes less of an issue, companies need to evolve and adapt if they are to make the most of the long awaited opportunities that recovery offers.

About the author

Liz Samandi is Managing Director of global sourcing company Darian (www.darianglobalsourcing.co.uk.) Darian has been working with companies and suppliers across the world since 1986. To find out more about global sourcing, for free advice or a consultation with no obligation call 01858 433096 or email info@darianglobalsourcing.co.uk.

MPs sitting on the Public Accounts Committee (PAC) have criticised asylum seeker housing contracts after savings targets failed to materialise.

Six contracts with three outsource services providers including G4S and Serco were designed to achieve savings of £140 million over seven years, however the targeted savings are appearing increasingly distant after just £8 million in savings was achieved in the first year.

The PAC have criticised the move in 2012 to switch to six contracts with three outsourcing providers from 22 contracts with 13 suppliers, attacking large inflexible contracts which threaten increased risk and go against the public sectors encouragement of SMEs.

A Home Office spokesman, said: “While we accept there are challenges with the contracts, we are disappointed with the PAC’s findings and will respond in due course.”

Simplification of procurement functions increase Welsh procurement success

MPs criticise Sellafield nuclear site contract

Portfolio managed services group Brooks Macdonald signs outsourcing deal with major accountancy chain Reeves.

The deal will see Brooks provide Reeves clients with a diverse range of portfolios which are six risk-rated.

BMAM managing director said: “We have been extremely impressed with Reeves' approach and the way in which they work with clients so are delighted that they have chosen Brooks Macdonald Asset Management as an outsourced investment management solution.”

Reeves partner and head of its planning business David Hurst, said: “We are very excited to work with Brooks Macdonald Asset Management who demonstrated to us that they have a clear understanding of the needs of our business and our clients as well as the resources to deliver”.

Accountancy firm Mazars outsources application access management

Business and Professional Services Sector Performing Better Than Expected, says CBI

The Bulgarian outsourcing industry is expected to account for three per cent of the country’s GDP within the next three year.

The Bulgarian Prime Minister Daniela Bobeva said, at a meeting organised by the Bulgarian Outsourcing Association, that the outsourcing industry had grown by 60 per cent over the last four years.

Stefan Bumov, head of the Bulgarian Outsourcing Association, said that the industry is expected to continue to grow, with current industry employment numbers of 20,000 increasing by four times.

The Prime Minister urged the industry to apply for funding from the EU National Innovation Fund to further develop growth and services.

Sofica acquired by TeleTech

Outsourcing Forum Indicates Bulgaria Can Be ‘Silicon Valley’ of Black Sea Region

Migrants Can Be Heroes of Sustained Economic Recovery and Should Be Welcomed

Michael Bloomberg’s comments about immigration are the voice of reason and sanity, counterbalancing the hysterical “And Whose Jobs Are They After?” poster campaigns produced by the radical right. The former New York Mayor told the Financial Times: “We definitely need immigrants and that’s exactly true of London and the whole of the UK in particular.”

He also said: “It requires a special kind of person to emigrate. Immigrants are pre-selected to be people who will contribute to society, look at the glass as half-full and see the good thing about a place.”

These are exactly the sorts of qualities we should be focusing on, the sort that create jobs, not take them. Caps on highly skilled immigration should be abolished, allowing UK companies access to the best talent the globe has to offer. The majority of people (2 in 3) do not have a problem with skilled migrants. Even Nigel Farage concedes he would let a few of them in, but of course, he stops short of saying that these people might well bring some jobs with them.

In a previous blog, I stated how Ernst and Young is currently working on deals to re-headquarter 60 major international firms to the UK, which should create 5,000 jobs between them. Some of these people will be immigrants, some will not. It’s a net gain for job creation that you can bet your bottom € wouldn’t happen if we weren’t encouraging people to set up shop in the UK. Visas for anyone involved in, or even thinking about doing business in the UK, should be readily available: quick, simple and easy.

Same goes for UK companies re-shoring. Any red tape wrapped around that needs to go, because most people would like to see more work come back, but caps on immigration and visa issues could hamper effective handovers and stymy the chances of success.

All calculations on the net gains through immigration are crude, and most flawed in some way, especially given that the Border Control system cannot legally track the ins, outs and intentions of EEA citizens. But the general statistic consensus echoes the sentiment of Mayor Bloomberg, that immigrants generally pay more into the system than they take out and should therefore be welcomed with open arms.

Infrastructure issues such as availability of homes and hospital beds are the ones that make immigration such an emotive topic and political battleground. But these could be assuaged by more high bracket taxpayers, more skilled professionals and more entrepreneurs bringing their big ideas to Britain. People who bring skills, set up businesses, pay taxes, create jobs and grow the public purse - we need more of these people, not just to be pillars of the community, but pillars of sustained economic recovery.

Global marketplace CME Group has entered into an agreement with infrastructure group 6fusion as CME moves closer to launching a cloud resource marketplace.

The partnership between the two groups has now allowed CME Group to announce the trial of a beta marketplace service at the end of 2014.

The marketplace will be targeted at enterprise level customers with expectations of buyer IT expertise for cloud commodity purchasing due to the advanced nature of the market.

6fusion will provide a standard measurement framework allowing buyers to compare prices from different cloud vendors.

Head of product strategy at 6fusion, Rob Bissett, said: “You can already go out and find a bunch of vendors and come up with their list pricing, but what is fundamentally different about our marketplace is that it allows for apples to apples comparisons as it is based on a standardised unit of measurement”.

GDS moves to combine digital marketplaces

Cloud price war continues

South-East police forces have placed a joint procurement service tender for a data security framework valued at as much as £20 million over two years.

The data security tender has the potential for a further two year extension after the initial period and covers a wide range of police forces in the South-East, including transport and nuclear police services.

The security network tender has been divided into four lots including testing, support, security and privacy assessments and risk management, and has been valued at between £10 and £20 million.

Police innovations applications receive go ahead

Capgemini awarded seven year police contract