Industry news

Capita are set to cut up to 400 jobs across the UK, the trade union Unite have reported.

According to Unite, Capita will also be offshoring a significant amount of staff to India as part of the proposal.

The staff affected are understood to work on the Prudential, Royal London and Phoenix accounts, while, while the trade union has said it may consider an industrial action ballot in response.

David Fleming, Unite National Officer said: "Members would be angry and concerned at the prospect of losing their jobs in the current economic climate. Capita is a highly profitable company and to treat loyal and highly skilled workers in this way is deplorable."

Capita have released a statement, stating: "In order to maintain its competitive position in the marketplace, optimise operational efficiency and maintain and improve service delivery to its clients, Capita's IT services business has concluded that a revised delivery model is necessary".

The government will be capping most IT projects at £100 million from now on. In a procurement policy notice (PPN) delivered to all departments and agencies, the government mandated that all future IT projects are capped at the figure.

The move comes as part of a new IT procurement strategy, as the government attempt to move away from awarding lengthy, expensive contracts large vendors and instead allow SMEs to deliver projects over a shorter period of time.

In 2011, it was announced that projects over £100 million would be analysed carefully by the Major Projects Authority, but the cap will now prevent any projects that large taking place without a thorough review.

Francis Maude, Minister for the Cabinet Office, realised a statement, stating: “The Government ICT Strategy, published at the end of March 2011 outlined a new approach to ICT procurement that improves contract delivery timelines and reduces the risk of project failure, enables greater use of SMEs, a much shorter timescale and lower costs to all parties. We will end the practice of attempting to cover every requirement in great detail and cover every legal eventuality in every project and contract, thereby increasing the procurement cost and timescales to all parties to an unacceptable level.”

Business Analytics firm, Omnext, has turned to Andy Rogers, the National Outsourcing Association Board Member, to develop position in UK market.

The Dutch software company has entered into the UK market with a plan of rapid expansion and Andy Rogers has been charged with driving the UK expansion over the next few years.

The firm’s speciality is future-facing cloud-based analytics, with its Software-Analysis-as-a Service products doubling revenues year-on-year.

Andy Rogers is well positioned to head up Omnext’s UK operation with 27 years of senior management experience at National Grid across 12 business critical services.

Jaco de Vries, CEO of Omnext said: “Our product adoption is continuing to grow strongly by offering the flexibility of a cloud based service to more and more internationally operating companies. We are proving that we can provide companies, wherever they are in the outsourcing chain, the capability to manage the life cycle costs of applications in an environment where agility, modernisation and consolidation are the order of the day. Against this background having Andy on the team with his practical and professional experience can only serve to enhance our UK operations”.

Logica and Atos have been picked to provide new HR software in order to streamline resources for the French Ministry of Defence over a 7 year contract.

The deal will see the Department of Defence merge five systems currently in place and accessed by over 300,000 users into one complete system. The design and implementation will be complete at the end of 2014 and will be rolled out to the civil service within the next three years.

General Jacques Roudière, Ministry of Defence Human Resources director, said: "It will be the cornerstone of our HR management by providing value-add at all levels in our HR chain, including officers in contact with the administration and those responsible for local management at headquarters”.

A London law firm warns that fines of up to £100 million could be imposed under new EU Date Protection rules.

Vinod Bange, partner at law firm Taylor Wessing has warned that companies using cloud software face heavy penalties based on annual global turnover, if they breach laws including international data transfer regulation.

Bange said: “Regulatory sanctions have gone way off the scale in terms of what we are used to right now”.

Security Firm G4S are to take two thirds of the civilian staff working for the Lincolnshire Police over a ten year contract.

The Police Authority expects to see significant savings which will be used to extend the front line deployment of officers. The move has attracted the attention of ten other Police Authorities who are looking to make similar savings.

Barry Young, chairman of Lincolnshire Police Authority, said "This is not a total solution and the authority still faces significant financial challenges, but it does provide a solid foundation to secure quality and value for money policing of our communities in the future".

Developers situated at Canary Wharf are looking to the success of Silicon Roundabout, as well as media and telecoms.

Developers at Canary Wharf are moving to attract up and coming IT companies as they aim to emulate Shoreditch’s based Silicon Roundabout success.

John Garwood, Canary Wharf Group secretary, has commented that the area represents “a unique selling point” and a "natural fit" for start-up IT businesses, with multiple funding opportunities from the surrounding financial institutions.

Government departments have received guidance from the Cabinet Office on awarding contracts under £100 million in a bid to increase SME participation.

The guidance is intended to reduce risks from outsourcing to a single supplier while increasing competition.The guidance provided states that of open source and open standards should be employed and that designs, code and templates should be reused.

Francis Maude, Cabinet Office minister, said: “We will end the practice of attempting to cover every requirement in great detail and cover every legal eventuality in every project and contract, thereby increasing the procurement cost and timescales to all parties to unacceptable levels”.

In the past few years, outsourcing elements of Learning & Development (L&D) has become increasingly popular due to a large number of organisations experiencing static training budgets. According to recent research by the Learning & Performance Institute (LPI), 44 per cent of organisations surveyed expect their L&D budgets to remain the same in 2012. Externalised L&D offers businesses the opportunity to save valuable time, whilst maximising their investment.

When it comes to outsourcing L&D, the level to which it is outsourced depends on the company and their individual needs. We’re seeing a common theme where the private sector is really embracing the opportunities associated with outsourcing, while the public sector has fallen behind slightly.

This is also supported by the LPI’s findings, which found that the public sector has been hit by huge reductions in spend.

Some organisations may decide to simply outsource the training function whilst others may prefer to externalise the entire process, from the management and administration through to the training. Whilst organisations today understand the benefits L&D will have on their employees’ performance and productivity, in times of austerity they can be forced to focus on reducing their bottom line, pushing L&D down the list of priorities. On the other end of the spectrum, some organisations are committed to continuing their investment in L&D, despite the economic conditions, and outsource their L&D because it can offer them the best return for their investment. It also provides expertises that they wouldn’t have access to in house.

Every organisation has its own unique reasons for outsourcing L&D but it is of the upmost importance that the selected vendor fully understands the company’s business, its expectations and objectives from L&D. The first step to laying down the foundations of a successful working relationship between both parties is ensuring that the responsibility falls in the right hands. We believe the business partner model is the best approach, offering the external vendor more influence internally, allowing the business to fully benefit from their knowledge and expertise. The model also specifies the vendor’s obligations through a service level agreement that quantifies their obligations, in turn placing the responsibility onto the vendor.

The L&D Director is central to the success of this relationship by identifying the correct vendors, communicating the company’s objectives and expectations, and by ensuring that the training programme is in line with the company’s culture and ideologies. Researching vendors that can offer the right fit in terms of culture, experience and ability to fulfil the company’s training requirements is critical. Employees flourish when they know that their training is in the hands of a credible organisation that understands them and the business they work for. By taking the right initial steps when choosing the vendor, L&D Directors can avoid any unnecessary complications later down the line and reap the benefits of contracting and working alongside an L&D vendor that really understands their business and can offer the expertise and skills needed by the business, to help take it forward.

When I explain that governance consulting has played a major part in my career to date, I’m often greeted with the look of a good friend searching for ways to say ‘how sad, you really need to get a life’. I have on more rare occasions also received supportive comments such as ‘keep the faith’, often coupled with a consoling pat on the back.

I suspect these reactions reflect some degree of adverse individual experience but also a more widely held perception that governance in any form should carry a health warning. Indeed many individuals and organisations are more than a little ambivalent about governance - and therein lies my challenge. It is difficult to promote the merits of something when such mixed views prevail in the corporate community.

In my view successful governance is an enterprise wide, overarching corporate function, aimed at delivering innovation, value and mitigating risk to the business. It therefore follows that governance should provide a management continuum throughout the outsourcing life-cycle to provide a consistent and appropriate focus on strategic outcomes. Good governance should not be undermined by the distractions of every day operational issues.

This may seem obvious, but the reality often falls short of the mark. The effects of time, business dynamics, management changes and daily events too often overtake the intent at the outset. It is almost easy to gradually lose sight of the objectives and outcomes we’re aiming for when dealing with daily operational challenges. I once heard an Executive comment, “they’re all floundering around in the swamp when I need them up here on dry ground showing us the way out”.

Governance should not be seen as an opportunity for yet another meeting attended by a cast of many to dwell on matters already settled elsewhere.

Good governance is critical to the success of any outsourcing venture. It provides a formal decision making framework to ensure alignment of the provided services with the business, technical and sourcing strategies of the client. The precise nature of this framework matures over time to reflect mutual levels of trust and confidence coupled with the changing aspirations and the nature of the client and provider relationship.

We need good governance to enable the delivery of business benefit. Put simply: Governance really matters.