Industry news

With the announcement of the scrapping of the current IT curriculum and the development of a course focused on core knowledge, the future teaching of ICT is undergoing a dramatic shift.

The IT curriculum has received criticism from numerous sectors for being unfit for purpose. Many within the IT industry have commented that the IT curriculum has failed to teach students key abilities and does not provide applicable skills for entry into the IT industry.

The chairman of Google, Eric Schmidt, attacked the teaching of IT within the UK last year, saying that the failure to teach IT was “throwing away your great computing heritage.” A study by e-Skills found that respondents viewed IT GSCE as being "so harmful, boring and/or irrelevant it should simply be scrapped".

In the current economic climate, the IT industry has been an example of good news for the UK economy, demonstrating growth and seeing the creation of innovative start-ups. Silicon Roundabout and Tech City have received backing from the government, which views the IT industry as being a key sector in stimulating economic recovery.

New ICT curriculum will promote innovation

The new curriculum will affect both GSCEs and A-level courses and will focus on providing software development and programming skills to students. The government having taken on board concerns from the IT industry and has consulted widely with organisations to ensure that the new curriculum provides the skills that the industry desires. IBM, Hewlett-Packard and Microsoft are just some of the companies that were involved in the shaping of the programme. The new programme is to be a shorter intensive course in order to allow for teaching flexibility.

The new curriculum will be implemented from September 2014, while the current curriculum is to be withdrawn from this September. The removal of the IT curriculum at the end of this year without a planned viable replacement for two years has raised concern. John Harris, head of IT strategy at GlaxoSmithKline, commented: ““We are very disappointed that the government has not listened to our concerns about withdrawing the ICT curriculum from schools before the new computer science programme is introduced in 2014.”

Skills Commission opposes changes to ICT curriculum

The new curriculum has raised concern over the limited numbers of expert IT teachers and the practicalities of delivering the new curriculum when there is a shortage of staff. Prof Steve Furber of the Royal Society said: "We look forward to hearing more about how the government intends to support non-specialist teachers who make up the majority of the workforce in delivering an excellent ICT education without official guidance on lesson content".

The new curriculum programme, while raising concerns over its implementation has been generally welcomed. Education secretary, Michael Gove, has said: "Imagine the dramatic change which could be possible in just a few years, once we remove the roadblock of the existing ICT curriculum.” With the backing of a growing UK IT industry the curriculum has the potential to revitalise IT education and provide students with the skills that the industry requires.

Headlines around the Euro crisis have resurfaced with a vengeance in recent weeks. The uncertainty surrounding the future of the Euro is taking its toll on financial stability and the markets. What is certain is that the resolution of the Euro crisis – however it pans out – will bring with it major and extensive challenges across the industry, as banks implement major systems and process changes to restore trust with their customers, while minimising any financial losses, liquidity pressures and business risk.

The first is status-quo where all the Euro member states successfully implement tighter fiscal integration and none opt out of the Euro. The second is a contracted Eurozone, which will see some members opt out with agreed terms. The third – and most feared – is total disintegration, resulting from the failure to reach an agreement on fiscal integration and will lead to a number of major economies leaving the Euro. Any and all three options will result in significant turbulence.

For most, a status-quo version of the existing Eurozone is the preferred scenario, and the reforms agreed in December 2011 to embrace tighter fiscal rules and monetary expansion, represent a step in the right direction to resolve this crisis. However, based on the challenges that have come with implementing these reforms in some Eurozone countries, the changing political climate, the ongoing weakness of a number of European banks, and the increasing reluctance of stronger countries to ‘bail out’ financially weaker or politically unstable countries, it is very likely that the ‘contracted Euro’ scenario will be the one that becomes reality.

So, what does this mean for banking and financial institutions?

The introduction of the Euro in the late 90s provided a great deal of experience of changing from one currency to another, and provides a strong basis to tackle the challenges associated with any countries leaving the Euro. However, it is clear that a contracted Euro will have a widespread impact on both operational / IT processes and underlying solutions, requiring additional resource and experience to plan and deliver the necessary changes in a cost-effective and efficient manner. The key impacts are market infrastructure, regulatory, customer and operations, resulting in several significant process and system changes.

In terms of customer impact examples, in core banking, client on-boarding and management processes would need to be changed; client accounts would need to be reset to accommodate multiple currencies, and the data migrated. In addition, any changes in account terms and conditions would need to be planned and communicated to clients effectively. The impact on pension funds could be huge. For example, the potential redenomination of long-term assets (such as government or company bonds), which had already been redenominated from the original national currency into the Euro, might pose significant challenges.

In terms of operational impact examples, the withdrawal and reintroduction of new currency notes and coinage (such as the Drachma) will be a particular test for the banks within countries exiting the Euro, and advance contingency planning will be absolutely crucial. Channels such as branch, direct, mobile, contact centres and ATMs would need to be reset and standardised to be able to cope with currency change and make sure customers still receive the service they require without interruption.

In terms of infrastructure and regulatory impact, Agent / Correspondent banking would need to be restructured and payments infrastructures / systems updated in line with new currencies and regulations. There will be a knock-on impact on European regulation such as SEPA, EMIR and MiFID II across all BFS institutions.

If we look specifically at capital markets, in addition to the above examples, financial institutions will be saddled with changes to Risk Management processes (for example, collateral management, margining and asset services) and potential fragmentation of the market infrastructure. Regulatory bodies will stipulate varying demands on how instruments are priced and may demand capital adequacy changes. The fragmentation of market infrastructure will lead to uncertain liquidity availability and hence the need for more complex connectivity. Real-time trade analytics will play an even more important role. The additional cost of setting up new trading desks / centres will add to the cost of operations and regulatory burdens.

All of the above will impact reporting and management information systems at a global level.

The examples above are just snapshots of the potential extent to which financial services institutions will need to change to be able to cope with a contracted Euro. As such, banks need to place an increased focus on assessing and reacting to the changing situation to limit potential financial losses, evaluate new strategies for operating in these markets and develop appropriate risk management frameworks. This will result in several initiatives to address the need for process and systems changes.

In summary, whilst a lot of groundwork and experience was gained in introducing the Euro, it is essential for all financial services institutions with Euro exposure to start putting plans in place now to be able to adapt to market infrastructure, regulatory, customer and operations changes with minimal disruption. Those that do will be the ones that will not only be ready for any disruption / financial impact caused by future developments, but will be in a strong position to benefit from the changing environment ahead of their competitors.

It is time to act, rather than wait for the next stage of the crisis to unfold.

Mandy Watson of Imperial Civil Enforcement Solutions says the process of procurement will determine the practicalities of delivering service efficiencies and savings

Technology-led innovation is already very much today's reality as authorities rise to the challenges presented by the austerity programme. One only has to look at the inroads authorities are making into new channel strategies as digital technologies drive consumer preferences and service improvement at the point of delivery, while also saving costs. Until recently, however, the procurement of outsourced services in some specialist areas has often been viewed from a manpower rather than a technology-led perspective. Thankfully, more and more authorities are now acknowledging that the procurement process itself must reflect this inexorable culture shift.

With technology comes flexibility, responsiveness and a progressive mindset which are all key factors in delivering sustainable service improvements and efficiencies. In the specialist area of civil enforcement, this shift of emphasis in both the procurement and delivery of services reflects the dramatic improvements that have been made in enforcement provision in many areas of mainland Europe.

On the Continent, it has become increasingly common for enforcement activities to be led by advances in digital IT technologies in both the processing and payment of enforcement penalties, as well as new mobile and automated equipment to identify and record contraventions as they arise. As many forward-thinking authorities here in the UK will testify, the efficiencies that have been made as a result of this switch have been dramatic. But, just as important, the new culture is far more future-proof as it leads to much more dynamic, consistent and responsive enforcement fostered by the concept of continuous service improvement.

Here in the UK, one only has to look at the way proven software systems have transformed the former paper-based enforcement back-office and have continued to evolve in line with developments in CCTV, ANPR and GPS technologies. Such systems have now been further developed to provide dedicated verification and review platforms in support of new approved CCTV enforcement solutions inspired by TMA 2004 - not to mention the corresponding developments in new cashless payment systems and new handheld technologies.

At first glance, a catch-all ITT may seem an attractive proposition in terms of single point of accountability for any multi-disciplined outsource solution. However, the move towards technology-led efficiencies on the Continent - and increasingly so within our own major cities here in the UK - suggests a rather different set of priorities are now in evidence. Here assigned responsibility for efficiencies derived from technological advances is very much the driving force as it will shape and influence all other day-to-day enforcement activities. This, in itself, creates clear and unequivocal accountability - without interfering with other in-house or outsourced services - and helps to ensure an enforcement operation is always able to capitalise on opportunities for further efficiency improvements in the future.

Equally, full financial accountability and significant cost savings can be enjoyed with IT-led managed services as it is in the interest of any responsible IT service provider to ensure its systems are always up to date for optimum operational efficiency at all times. Put simply, such continuous service innovation and development help to maximise efficiencies in all areas and at all times, yet the cost of any software updates or system developments are borne by the service provider not by its customers. The same cannot be said where the IT resource and capability is at an arm's length through a third party where improvements are typically client driven which then incurs inevitable site-specific development costs and margins.

What we consider to be efficient today will look inconsequential in the very near future, as the relentless pace of change gathers momentum. However, by embracing technological innovation from the outset (i.e. at the point of procurement), local authorities of all shapes and sizes can reap the very real benefits of sustained service improvement and reduced costs (perhaps with partner authorities) without costly upfront investment.

For those who defer such decisions, the gap will just get wider as the months go by and, further down the line, the leap of faith into the new technological world will be even more daunting, far more risky and far more costly.

IT consortium the Open Group, consisting of suppliers, users and academics, view cloud computing as a vital technology for SME development, however there is widespread confusion among small and medium sized enterprises surrounding implementation.

There is a lack of best practices in implementing cloud services and in choosing the best service provider.

The director of the Open Group’s cloud working group, Chris Harding, commented that “Cloud computing allows you to do things more quickly without having specialist skills in house. And it costs you less”.

Poor communication between central and local government has "exasperated" councils, according to the National Audit Office, a government watchdog.

The government is devolving more power to local councils, while the already contentious Localism Act has paved the way for major changes, such as transferring public health responsibilities from the NHS to local councils in April 2013. But local authorities are "exasperated" by the unsystematic standards and time wasting exercises that make the change difficult, says the audit office's annual report, published yesterday on 13th June.

Loss-making Finnish cellphone maker Nokia plans to cut another 10,000 jobs globally in its biggest revamp in recent history, while it warned the second-quarter loss from its cellphone business would be larger than expected.

The cuts, which include the closure of Nokia's only plant in Finland, bring total planned job cuts at the group since Stephen Elop took over as chief executive in 2010 to more than 40,000

Fashion retail chain O’Neill have carried out wide ranging IT consolidation, in order to reduce 50 different enterprise resource planning (ERP) and customer relationship management (CRM) to 5 through a single ERP system.

The ERP system was procured from Lawson M3 and Liaison Technologies in 2011 for €6 million.

Richard Van der Hoek, integrations manager for O’Neill Europe, said “The big benefit is centralised data, so we are now able to inform countries quickly about cancelled colours, etc. The other benefit is all sales orders are also in one system,

The use of mobile optimised online services and applications has seen online growth for Sainsbury’s grow by 20 percent.

The improved mobile website allows customers to easily view Sainsbury’s website for groceries which offers over 20,000 products for purchase.

Sainsbury’s released the mobile optimise site last month, making the website available for Apple iPhones, Android operating systems and other smart phone systems. The first quarter trading results demonstrated a 3.6 percent increase in sales.

Private equity companies Apax Partners and Bain Capital, are reportedly looking at investing in a 41 percent stake in BPO giant Genpact.

If the deal is successful, it would rank as one of the largest in business process outsourcing history, with a potential value of $1.4 billion.

The 41 percent stake would come from Oak Hill Capital and General Atlantic Partners who are to sell their take according to the Times of India.

The government is considering creating a third framework to complement the existing G-Cloud and G-Hosting frameworks. Government CIO, Andy Nelson, revealed the potential for a new framework to help the public sector move to modern systems and software along with promoting the adoption of cloud based services.

The success of the G-Cloud framework in sourcing suppliers for public sector projects as well as promoting SMEs to offer competitive services has led to Whitehall contemplating a new framework to meet demand.

Andy Nelson said, “we could use more standard cloud services further down the track. Now is the time to think through how we do that, so we might end up with three different frameworks.”