Industry news

Plans have been revealed by Scottish ministers for the creation of a national public services network, worth £325 million.

The new network has been named SWAN and will provide services to all public bodies and organisations within Scotland, including telecommunication and infrastructure services, while reducing cost and increasing delivery performance.

The plans for the new network come after the successful implementation of the UK’s own PSN which expects to have 80 percent of PC-based staff based on the platform within three years.

Two of the largest publishers in the world Penguin and Random house have entered into talks in a response to the rise of new technology, including e-books, which could see a merger which would create the world’s largest publisher. Such a deal would first need to be given the go-ahead by competition authorities.

The creation of a publication company on such a large scale would create an industry leader, bolstering the two companies from rising digital companies such as Google and Amazon.

A statement issues by Penguin owners Pearson commented: “The two companies have not reached agreement and there is no certainty that the discussions will lead to a transaction. A further announcement will be made if and when appropriate."

BT Global Services have revealed a new range of cloud based management services.

The new release of services included within BT Trace, which acts as package of services to support businesses management of their global supply chains, are designed to collect and analyse data, goods details, shares and supply chain information.

The new cloud service provides information in real time through the online services, allowing for rapid reaction to analysed data.

Luis Alvarez, CEO for BT Global Services, said: “With BT Trace, we are pioneers in providing those customers with the ability to identify inefficiencies, streamline their processes and be more successful in their market place.”

An expansion drive by Debenhams is expected to create 1,700 new jobs as the department store looks to open 17 UK stores over the next five years.

The UK expansion comes after a move to expand in overseas markets and increase online service capabilities to a further 30 countries.

The expansion announcement comes after a 4.2 percent rise in pre-tax profits during this year.

The implementation of a far reaching restructuring programme by Ford, which has already resulted in the closure of a Belgium plant yesterday, is expected to see the closure of Ford’s Southampton factory.

A meeting called today at the car manufactures headquarters is expected to foreshadow an announcement. The closure of the factory could result in the loss of over 500 jobs.

Caroline Nokes, MP for Romsey and Southampton North, said: “I've always had concerns about the factory and it now looks like there will be an announcement tomorrow indicating that it's going to close".

Recommendations put forward by the House of Lords Communications Committee have not been implemented by the government.

The report recommended action to change the broadband procurement process which the committee identified as being anti-competitive.

The programme to create Europe’s best broadband network by 2015 has currently seen BT win every contract offered so far.

The Confederation of British Industry (CBI) has revealed that UK manufacturing has dropped to a three year low.

Just 25 percent of surveyed manufactures said that production had increased over the last three months while 28 percent said that production had fallen.

The announcement reflects similar results from manufacturing throughout Europe including even normally stalwart Germany.

Outsourcing (the American for offshoring) has become a frequent tool of attack in the recent US election debates. However, the debate does seem to have helped in clarifying the difference between the relocation of services (offshoring) and the more general contracting of services to an external company (outsourcing).

In recent debates Obama has criticised Romney’s record in offshoring services and jobs to China, including the offshoring of holdings and investments in companies involved in such practices. The Republican party have also been quick to point to Obama’s hand in transferring jobs and investment programs overseas.

In the October 16th debate at Hofstra University Romney rounded on Obama, saying: “You also have investments in Chinese companies … You also have investments through a Caymans trust”. Romney said that enterprises looked to China as an attractive offshoring destination compared to the US, and as such jobs will continue to be created in the more attractive location.

Both Obama and Romney have clarified on the differences of outsourcing and offshoring. Romney senior adviser Eric Fehrnstrom, said: “Outsourcing is what the Obama campaign does when they hire an outside telemarketing vendor to provide telemarketing services," adding, “Offshoring is the shipment of American jobs overseas”. Obama touched on the common misunderstanding in passing, saying: “If you're a worker whose job went overseas, you don't need somebody trying to explain to you the difference between outsourcing and offshoring".

Outsourcing has been used as a negative point in the US election campaign by both candidates. With jobs and the economy ranking as top election issues by voters, both candidates have focused negatively upon outsourcing as a practice. Both candidates focused upon China, with Romney labelling China as a tax manipulator while Obama spoke on closing tax advantages to offshoring destinations, mentioning China.

As mentioned the blanket use of terminology has been focused upon and the differences between offshoring and outsourcing have been touched upon within mainstream media, however these instances have been rare. Outsourcing is a word that is generally thought to hold negative connotations. The common business occurrence of offshore services, and the value investments that come to the shores of the US has been avoided, as has been the link between outsourcing and the billions of dollars of investment that it generates for the US economy.

UK based Credit-ratings checker Experian has acquired the remaining 29.6 percent of Brazilian credit company Serasa that it does not already hold.

The deal has been valued at $1.5 billion and comes five years after the original deal to acquire 70 percent of the business, which had succeeded in generating large operating profits.

Completion of the purchase is expected to be finalised by the end of the year. Don Hunter spokesman for Experian said: “Since 2007, business in Brazil has exceeded Experian's expectations”.

Premier Foods owned Hovis could be sold after the owners ended a £75 million contract with a unnamed supermarket due to untenable margins.

Premier has also announced yesterday that it has increased cost cutting targets from £20 million to £60 million in light of poor margins.

Michael Clarke, chief executive at Premier Foods, called the supermarket contract “costly to service”.

The company is carrying out a review of its bread division including the Hovis brand which is facing pressure from rising competition and ingredient costs including a 30 percent rise in wheat prices.