Industry news

  • 17 Apr 2014 12:00 AM | Anonymous

    The call comes after the supermarket posted a 3.6 per cent drop in profits, the slowdown comes as the company moves to transition services from retail to online stores.

    Mr Clarke said that it would take time to re-establish growth due to the ongoing digital transition process, but that a digital focus would pave the way for future growth.

    “We are not opening a lot of new space these days and you can see these long run impacts of this tightening recession. And the growth of online. Online retailing growing for everybody in the UK,” said Mr Clarke.

    The supermarket chain is planning to carry out further investment in digital and automation services and technologies.

    M&S sees sales decline despite strong online performance

    Tesco prepares for mass dot.com store rollout

  • 17 Apr 2014 12:00 AM | Anonymous

    HM Treasury has awarded the first contract for its 2015 ICT programme to SME supplier Centerprise International.

    The contract will cover a four-year period with Centerprise providing support, upgrade and maintenance services to a variety of applications and services including, wirelesses networks, video services, and conference technology.

    The selection of Centerprise comes as part of the government’s SME procurement imitative which seeks to increase SME service uptake by government departments by simplifying the public sector procurement processes.

    Karen Delafield, HM Treasury's CIO, said: "I am looking forward to the prospect of working with Centerprise International. This is just the first step towards changing the way IT works at HM Treasury. It is also the first step in implementing the government's new approach to IT, including the more common use of direct contracts with SME partners."

    UK SMEs capitalise on ITO

    SMEs join forces in outsourcing for growth

  • 17 Apr 2014 12:00 AM | Anonymous

    Indian IT company Wipro has released its financial results for the quarter and year ending March 31, 2014, with results outperforming analyst expectations.

    Wipro announced a 41 per cent year-on-year increase in net income for the quarter and a 27 per cent year-on-year net income increase over the whole year.

    Azim Premji, Chairman of Wipro, commenting on the results said: “The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets.”

    T K Kurien, Executive Director & Chief Executive Officer of Wipro, said: “Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction.”

    Highlights from the release included:

    Net Income Grew 41% YoY in the quarter

    IT Services Operating Margin Expanded by 150 basis points sequentially

    IT Services Revenues Grew 24% YoY in the quarter

    IT Services EBIT Grew 51% YoY in the quarter

    Wipro awarded 10 year contract with Carillion

    HCL posts rising quarter profits

  • 17 Apr 2014 12:00 AM | Anonymous

    Time for the Outsourcing Industry to Shout Back.

    So Accenture decided to change its strapline from ‘Consulting Technology Outsourcing’ to ‘Strategy, Digital, Technology, Operations,’ and the word “outsourcing” has apparently got less than a year to live. But in an industry where calling a spade a spade is both an endearing trait, and an essential skill (from a buy side perspective) hiding the actual nature of your wares behind some nuances of language is wandering into Chris n Gwynnie’s “Conscious Uncoupling” territory; just a little bit pretentious.

    But I’m not suggesting for a second that this is what Accenture has done. Their new strapline brings greater transparency, if anything. After all, B2B marketing 101 tells us that people buy benefits, not features. So tagging themselves as ‘Strategy, Digital, Technology, Operations,’ actually provides a clearer view of what they can offer a customer in terms of value adding activities, because it describes, very plainly, the areas where outsourcing helps companies improve capabilities.

    Make no mistake, clients will only actualise these benefits by outsourcing to Accenture (other outsourcing providers are available!) so the term will live on for as long as organisations need help with their strategy, digital, technology and operations. Don’t forget, BPO is a service they proudly offer still, you don’t have to drill down far to find that out. So fairplay to Accenture, for shaking up their marketing effort.

    Our industry does need to get better at marketing itself, to both talent and customers. In much the same way that an author doesn’t merely promote their own book, most of them speak out for the intrinsic joys of reading per se - the outsourcing industry needs to present a unified front on the added-value nature of outsourcing.

    We all know outsourcing can save customers money, as an industry, we need to get extremely vocal about the benefits of bringing in better talent and technology to help with strategy and operations and end the culture of sweeping the positives under the rug.

    That anyone should even have mind to suggest a company is rebranding to distance itself from what it actually is, stands as testament to the rough ride our industry gets in the media. I’ll bet the Guardian journos leapt out of their seats with glee when presented with the op. of the “Secret Serco”, which alludes to morale being low and profitability top trumping customer service every time (if it is an authentic snapshot of what is happening in that particular deal, it’s not only poor form, but extremely poor contracting, which highlights the short-termism we need collectively avoid).

    The entire sum of client experience, business benefits and supplier staff satisfaction is the reputation of outsourcing: the real, factual one, not the sensationalised hearsay you get in the papers.

    When we conducted a poll at the NOA Summit 2012, 85% of members were proud to be part of the outsourcing industry, and happy to be associated with the O word. So let’s band together and proudly showcase the benefits outsourcing brings, and take collective responsibility for the reputation of our industry. Because however you choose to describe your company, if you’re adding long-term value to a partner, you’re an outsourcer.

  • 16 Apr 2014 12:00 AM | Anonymous

    With the public sector asking for more from their outsourcers, providers are having to find new ways of working together to bid for projects. This is happening in a variety of ways, for example consortia, joint ventures or partnerships. A few weeks ago, I wrote about how to pick a partner. Last week I discussed how to work with them to build a winning bid. This week, I’ve included some top tips on working effectively with your partner once you’ve won the contract.

    1. Use the transition to reboot your relationship at a senior level

    Shifting from “bid mode” to “delivery mode” brings with it a number of changes: to the team structure, the activities and often the location of the team. Use the opportunity to have a full and frank conversation. Ask yourselves the challenging questions looking back at the bid phase: what went well? What went less well? What are the lessons for the delivery phase? What do you need each other to do differently for the delivery phase to succeed? And, looking forwards, ask yourselves the challenging questions about what being delivery partners means in practice: Who faces off to who? How will you manage the client? How will you deal with disagreements? Don’t be afraid to plan for things that might go wrong and how you’ll deal with them – they will. The best partnerships survive because they can work through things that go wrong.

    2. Continue to invest in the joint team

    During the bid phase, your teams will have worked together. They will have shared the excitement of the development stage, the frustrations of negotiations, and the glory of being a member of the winning team. It’s crucial to continue this team spirit into the delivery phase, after all, it’s your people who will ultimately make the contract a success. As with building any team, developing a shared view of what success looks like and how the team should work together will form a solid foundation. All the conversations you’ve had at a senior level about your ways of working are similarly useful to have at a more operational level. And remember that building a joint team is a process, not an event, and one that requires regular investment.

    3. Build in regular performance and contract reviews

    Partnerships are most likely to come under pressure when one partner feels the other is reneging on the deal, whether as part of a formal contract or an informal understanding. This is particularly true around performance and / or delivering contractual obligations. Planning out a series of milestones with target performance levels can set expectations and focus each partner to deliver their responsibilities. Building in a regular review of performance and contracts will give both sides an opportunity to raise any issues or risks arising with the delivery of the service. If something or someone is not working as they’re meant to, it’s crucial to be able to communicate openly and honestly about problems and work to solve them together. Rather than letting a problem drag on, nipping it in the bud is much better for the long-term relationship. A regular review provides the space to do so.By investing in your relationship, the team, and regularly reviewing performance, you will lay the groundwork for a successful partnership.

    Josie Cluer is public sector lead at Moorhouse, the transformation consultancy.

  • 16 Apr 2014 12:00 AM | Anonymous

    The BBC has tendered for a digital services framework for the development of mobile applications, online services, interactive TV and a range of other digital services.

    The contract is believed to be worth as much as £5.4 million and would replace contracts held by Magnetic North, Do Tank, Collective and VML London, which are coming to an end.

    The contract specifies that suppliers “may be required to work across aspect of the BBC’s online portfolio”.

    The head of market engagement at BBC Future Media said that the digital services framework would be familiar to suppliers who had registered with the Government Digital Service Store (GDS).

    Applications for tender will need to be received by the 2pm deadline on 16th May.

    BBC announce new outsourcing tender programme

    MPs to grill BBC staff on failed procurement system

  • 16 Apr 2014 12:00 AM | Anonymous

    Ofcom has found that while broadband speeds are rapidly increasing across the country, there remains a wide disparity in superfast connections across the country.

    The average fixed-line broadband speed was found to be nearly five times faster than average speeds five years ago, however superfast broadband services were available in only select parts of the country.

    A survey by Ofcom found that many rural and some urban areas still had limited access to superfast broadband connections.

    Ofcom chief executive Ed Richards said: “There is more work needed to deliver wider availability of broadband and superfast broadband, particularly in rural communities but also in some locations within cities to enable wider access to fast internet.”

    Despite the uneven service offerings across the UK, Ofcom found that the country had the highest coverage out of the five top EU economic countries.

    Mps critical of lack of transparency in BT rural broadband contracts

    Wales goes superfast

  • 16 Apr 2014 12:00 AM | Anonymous

    Europe, the Middle East and Africa (EMEA) have seen the highest rates of outsourcing activity in four years according to new research.

    Both the quantity and value of outsourcing contracts have increased year-on-year according to new research published by the Information Services Group (ISG).

    The research found that the current values of contracts in the EMEA region had increased by 29 per cent year-on-year to €2.4 billion.

    Outsourcing growth according to the ISG has been driven a several ‘mega relationship’ contracts which have helped to raise the market value average.

    ISG partner and president John Keppel, said: “Although these larger contracts have a strong role to play in the market, the smaller deal size brackets will continue to grow more sharply as enterprises opt for greater flexibility and more specialized services from a greater number of providers. Multi-sourcing, increasing competition among providers and lower technology costs will continue to be the factors that drive the market for the foreseeable future.”

    ISG outsourcing index sees outsourcing contract value soar by 89%

  • 15 Apr 2014 12:00 AM | Anonymous

    The UK government has moved to break down its defence equipment procurement programme as it seeks to privatise the procurement process.

    Previous attempts to sell off the multi-billion pound programme which covers land, air, sea and combined arms, alongside HR and finance services, had been met by obstacles.

    The breakdown of the procurement operation is designed to facilitate the uptake of services by the private sector and will help to meet specialist procurement requirements according to a MoD spokesman speaking to Reuters.

    The government had originally planned to have one private contractor for all defence procurement services however the plan was scrapped when only one bidder was left in the running after a number of companies pulled out of the bidding process.

    The government is expected to send out notices to interested parties over the coming weeks.

    MoD outsourcing strategy revealed

    MoD moves to cut £1.5 billion from procurement fund

  • 15 Apr 2014 12:00 AM | Anonymous

    The G-Cloud is helping buyers achieve significant savings with the cloud’s director Tony Singleton saying that buyers are saving 50 per cent on average.

    The announcement comes as the Government Digital Service (GDS) prepares to release a report on the G-Cloud and what success the procurement portal has had in generating public sector savings.

    The government procurement cloud service has recorded £124 million of sales so far, with the governments SME focus appearing to have succeeded, with 59 per cent of sales going to small and medium businesses.

    Mr Singleton said in a blog post that the: “G-Cloud is about more than sales; it is about transforming the way the public sector buys cloud-based services, and it is one of the frameworks supporting a wider business IT transformation.

    GDS moves to combine digital marketplaces

    Whitehall departments move to share information across government

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