Industry news

  • 22 Mar 2012 12:00 AM | Anonymous

    Cognizant announced today that it was expanding its presence in Singapore with the opening of a new development centre.

    Cognizant is involved in a variety of industries out of Singapore, including Banking, Insurance, Manufacturing, and Retail and Logistics as well as other key services. Around 370 professionals will be accommodated within the development centre, which will provide a range of efficiency saving services to clients.

    R. Chandrasekaran, Group Chief Executive, Technology and Operations at Cognizant said:"We started operations in Singapore in 2005 and have steadily grown our presence and investment in the city-state,"

  • 22 Mar 2012 12:00 AM | Anonymous

    Companies with an eye for the future are turning their focus to the emerging field of Services Sciences. This is an interdisciplinary approach to the study, design, and implementation of services systems made up of people and technology to create and deliver value.

    The services sector makes up 70 to 80% of GDP in advanced economies, with services accounting for over 80% of employment here in the UK. In short, up to approximately 75% of wealth in industrialised countries is created not by growing food or making things, but by performing services: teaching, designing, delivering health care, banking, retailing, consulting, delivering IT services and so on.

    A service process is a series of unique states involving the co‐production of the provider and the consumer. Each “transaction” is a new product in itself, and the customer is a co‐producer of the value rendered.

    Too often, when we think of a service process, we think of what the provider must do, but such thinking results in frustration for the customer – who will defect in an instant. When we think of service processes, think of the customer as a co‐producer of value. Think of migrating from transaction chains to information chains, and then on to knowledge chains (or peer‐to‐peer knowledge webs to be more precise). Moreover, think about the Cloud and Cloud computing technologies. The automation of business processes is a key enabler of the Cloud phenomena.

    All of the thoughts and ideas around quickly assembling Cloud‐centred applications to support business services simply won’t happen without process technology. An intrinsic part of the Service‐Oriented Enterprise is “Process on Demand”, which means having the capability to call up Services when needed to change or augment a process that is already being executed.

    By taking service process management into the Cloud, services from multiple knowledge sources can be delivered with maximum flexibility and adaptability to meet the requirement that “most services must be customised.” On‐demand service processes aren’t sequenced as in many traditional workflow systems. In contrast they are asynchronous and peer‐to‐peer, with the high‐level process providing the choreography.

    Let’s turn our attention to the very core issues of providing services. When it comes to service forms of business processes, they reside in the domain of human‐to human interactions. That is to say, services processes cannot be predefined or “flowcharted” in advance. In short, such collaborative human processes are “organic.” They represent “emergent processes” that change not only their state, but also their structure as they are born, and then grow and evolve. Such processes deal with case management and each service renders a unique process instance centred on human to human interactions.

    We’ve already discussed open innovation in the previous blog on The Innovation Economy, but nowhere is the concept more vital than in delivering services. Let’s turn to an example of “open services innovation.” Think “prosumer”(producer–consumer) and the coproduction of value. The role of producers and consumers begin to blur and merge. Giants from Coca‐Cola to Wal‐Mart Stores have tried to set up Web sites where customers can share their interest in the brand. But many of these sites don’t attract enough visitors to form a real community or have been slammed by critics.

    However, Intuit, a UK small business accounting software provider, seems to have figured out a way to benefit from social media. Rather than inviting the whole world, Intuit funnels only diehard users of QuickBooks to a site where they can exchange truly helpful information. For customers, that means quicker answers to problems. For the company, this volunteer army means less need for paid technicians.

    Intuit chose this ‘narrowcast‘ approach after it heard what was going on at the Web site of its popular TurboTax product. Customers were not only asking technical questions, they were often outshining Intuit’s own tech support staff by answering 40% of the queries themselves.

    This approach is ingenious in the sense that the only people that can contribute are those that really have had actual exposure to and used the product first hand. However, by inviting the public to a truly open forum where the advice may or may not apply, a company can hurt its reputation or that of its product if a customer continuously subjects themselves to incorrect or inconsistent tips and advice. Therefore mob‐rule constructionism must be managed carefully to ensure a company’s reputation is not damaged by incorrect information.

    Services innovation has to be treated as an organic process, where value is co-produced by the consumer. It is not something which can be predefined or mapped out, but instead businesses must have the capability to call up services as and when they are needed. Each service requires a unique process instance centred around human to human interactions, and by utilising the cloud businesses can deliver these services with maximum flexibility and adaptability, to meet the demands of the customer.

  • 22 Mar 2012 12:00 AM | Anonymous

    We shouldn't be shy about identifying our successful industries and reinforcing them,” said George Osbourne in this week's budget, as he outlined his plans to give British businesses “the self-confidence to: invest, expand, hire, innovate and be the best.”

    Whilst we never expecting tax breaks for outsourcing companies, any “deliberate strategy to create a more balanced national economy, where financial services are strong, but they are not the only string to our bow,” will include a key role for our industry.

    One vertical sector that is full of outsourcing did well today is computer game industry. Software developers all over Tec h City will be rubbing their hands at the tax breaks they can expect to receive imminently. Many of these companies will also be eligible for a slice of the 20 bn of loans through the National Loan Guarantee Scheme. These low-interest government underwritten loans could drive Tech City on to even greater heights…

    One area the government could have done more is the IT skills gap. The shortage of software developers needs addressing, and with 1.67 million in the dole queue, so many of them in their teens and twenties it makes sense to pull out all the stops to get them into IT.

    Young people are highly computer savvy already – I wonder how many hours a day young unemployed people spend on Facebook? Given the opportunity, these people could fill the IT skills gap long term. So that in the future, there will be reduced need to send work offshore for skills reasons, which would be a coup for the UK economy.

    In the outsourcing industry, we are acutely aware of exactly where the skills gaps lie – because that’s the work that ends up offshore. With the government’s support, we should use these young people to plug the void. Get them off the sofa into IT training programmes.

    The government could be doing more to support this. It can be celebrated that there is a more pertinent IT curriculum being launched in September, but that doesn’t help the youngsters sat on the dole right now…

    So tax breaks for IT suppliers creating jobs for young apprentices would have been welcomed. Let’s hope that IT SMEs taking advantage of the above loans have the capacity to take on youngsters, train them up and create a whole new generation of IT professionals.

  • 22 Mar 2012 12:00 AM | Anonymous

    Outsourcing Works. The NOA will prove it.

    Outsourcing has an image problem. It’s a dirty word, in many peoples eyes.
    This must change. Considering the vast amount of people it employs, and the huge sums of tax they pay, let alone the value we know it adds, we must not stand still and accept that a staggering 80% of the general public do not think outsourcing is beneficial to UK PLC (according to a recent NOA research project The Public Perception of Outsourcing- as featured in the Outsourcing Yearbook 2012 Spring Supplement, Page 6 onwards).

    What are we going to do about it?
    Outsourcing Works is the NOA’s flagship campaign for 2012/13. It aims to set the record straight and an upcoming research project will prove empirically, undeniably the value that the outsourcing industry adds at both the enterprise and national level. We will right the many misconceptions that surround our industry with a yearlong programme of activity including research, PR, publications, education and culminating in the Outsourcing Works Symposium. 

    How do I pledge my support?
    Individuals and companies alike can make a difference and pledge their support to the campaign by joining the Outsourcing Works LinkedIn Group (sub-group of the NOA LinkedIn group). Supporters will receive updates on the campaign including case studies, best practice guides and invites to Outsourcing Works events.

    Even better still, engage in the debate, provide a case study, host an event, stand up and speak or write an article. For more details on how to get involved and make this campaign your campaign, please view the document Outsourcing Works- The Campaign below or contact Kerry Hallard on kerryh@noa.co.uk

    Outsourcing_Works-_The_Campaign.pdf


    Outsourcing Works Research
    Outsourcing_Works_Public_Perception_of_Outsourcing_Research_Results.pdf
    Outsourcing_Works_OnShoring_Survey_Research_Results.pdf

  • 21 Mar 2012 12:00 AM | Anonymous

    The Australian economy - under the respected guidance of its 27th Prime Minister Julia Gillard and her federal team - is carving out a name for itself in the IT security arena.

    Whilst this may sound surprising, it comes against the background of Australia's (as a country) relative youth and the fact that the country has around 22 million citizens: big enough to make its weight felt in international terms, but small enough to be flexible in the modern world of IT matters.

    A key example of this is the country's Defence Signals Directorate (DSD) - Australia's equivalent to the US Department of Homeland Security - which has analysed some of the attack techniques used by cybercriminals and come up with four main methods of blocking them.

    And the Australian government - moving swiftly in response - has started rolling out these techniques across its government IT infrastructre, reportedly to great effect.

    The 3rd and 4th techniques centre on the idea of whitelisting, that is, forcing public sector computer users to install only approved (whitelisted) applications and only allowing similarly approved - and risk analysed - emails to be viewed.

    This means that, on their office computers, government employees can only access their corporate email and browse a limited number of Web sites, which, in turn – means they have a far less chance of infecting their PCs than `civilian’ Internet users.

    Alongside its controlled software and Internet usage approach to IT, the Australian government has also been highly pro-active in quickly patching high-risk security vulnerabilities in both the operating systems and software that its many computers run.

    Based on an analysis of its Internet usage during 2010, in fact, the Australian DSD concluded that at least 85 per cent of the targeted cyber intrusions that it responded to during the year could have been prevented by following these four main mitigation strategies.

    These four strategies are just part of a 35-point strategy report - Strategies to Mitigate Targeted Cyber Intrusions (http://bit.ly/lvZn7K) - which found that, although resistance to the idea of patching operating systems and software was low, the costs involved on the financial and staff training side of things were still quite high.

    That's not to say that staff response to the report's recommendations - which included the control over both portable and data devices - was entirely positive. The report's authors found there was a high degree of staff resistance to the idea that their access to USB sticks and other forms of low-cost data storage were to be restricted.

    Despite this, there are signs that staff are now realising that these data security requirements are a normal part of doing business in the public sector and will therefore be the normal IT methodology - both now and in the future.

    If we contrast this IT security methodology to that seen in the government and public sector here in the UK - where the emphasis is very much on cost saving, rather than taking a draconian approach to effective security - it can be seen that there is considerable scope for security problems with many UK government departments being encouraged to go down the open source (freeware) route.

    There is, of course, nothing wrong with using open software over commercial applications, but most experts agree that at least some of the cost savings accrued from going down the open source route should be re-invested in other aspects of computing security, not least in ensuring those applications are secure enough for general usage.

    Unfortunately for computer users in the UK, there are signs that the audit requirements laid down by current governance rules can still be counter-productive in the longer term, as employees are still free to source – and use - just about any software application they wish.

    Put simply, where Australian public sector workers are effectively told what operating system and software they will be using in the workplace – and IT governance/security staff can plan and accommodate accordingly – their UK counterparts are allowed carte blanche (within reason) to decide the software they wish to use.

    IT purists might argue that this makes for a more efficient IT user base in the UK public sector when compared to their Australian colleagues, but there are real reasons behind the Australian mandate on what operating system and software you can - and cannot - use.

    A clear example of this lies in the use of SCADA - Supervisory Control And Data Acquisition - computer control systems seen at the heart of many industrial automation and control systems.

    First developed in the 1960s - and really coming into their own with the arrival of the first PCs in the 1980s - SCADA-driven systems are typically found in industrial systems such as energy power plants, electricity supply grids, chemical plans and many other industrial systems that require a high degree of computerised control - but also require total, 100 per cent, systems availability.

    This is Mission Critical with a capital M and C. Many businesses claim their IT processes are mission critical, but SCADA control systems are often critical to national infrastructures.

    If the national electrical grid goes down, for example, it can cost industry many tens of millions of pounds per hour and - in the case of hospitals, air traffic control systems and the like - can actually place people's lives in jeopardy.

    Despite the fact that a growing number of PC users in the private and public sector are migrating – or have migrated onto – the Windows 7 platform, most SCADA-based systems use a robust and ruggedised version of Windows 98, a 16-bit version of Windows dating back to the late 1980s.

    The reason for this apparent luddite approach is quite simple: by using a stable and unchanged operating system which has been fully updated and completed its lifecycle, SCADA-based systems can have their operating system loaded into firmware.

    This means that, although there is no equivalent of Microsoft’s `Patch Tuesday’ update programme for Windows 98, cybercriminals cannot easily subvert the code of SCADA-based system, since the firmware-based operating system is fixed - and cannot be updated.

    This fully-embedded firmware approach is fairly unique to SCADA-based operating systems, but helps one to understand that a highly controlled operating system and software environment – as mandated under the Australian DSD’s diktat - has a far lower risk of subversion than the free-for-all software approach see in the cost-cutting UK public sector.

    Here at Avecto, whilst we understand the impetus behind moving to open source software that a growing number of UK government departments and allied public sector agencies are moving towards as part of their cost-cutting strategy, this does not mean that the Australian ideas enshrined in the DSD report cannot also be applied here in the UK.

    This is because the principle on which our security offerings are built is Windows privilege management - namely the control over who has access to specific applications running on the corporate IT platform, as well as the underlying data.

    This means, for example, that if the admin team only run their control and security software from within the network perimeter on known PCs, then access to those applications can be locked down to specific on-network computers.

    Then, even if a set of admin account credentials are compromised by hackers, they cannot use those credentials from the Internet – they would still have to gain physical access to the terminals used by the admin staff.

    This is a similar belt-and-braces approach being adopted by a growing number of banks for online account access. Not only must users present the right credentials, but they must also authenticate themselves using the appropriate hardware token.

    Back in the land of securing Windows-based computers, meanwhile, and it is interesting to note that a second report from Australia’s DSD - Implementing the DSD’s Top Four for Windows environments (http://bit.ly/tfouuM ) - the conclusion is quite unequivocal:

    “Minimising administrative privileges is an exercise in the principle of least privilege. In a properly designed, administered and maintained environment there is no requirement for any user to have administrative privileges on their day-to-day account. In addition there should be no account which has both administrative privileges and access to networks outside of the organisation, such as Internet or email services,” it says.

    “When properly planned and executed, minimising administrative privileges can have significant flow on benefits to the stability and consistency of the computing environment, simplifying administration and support of that environment,” it adds.

    Does this sound vaguely familiar? It should – it’s effectively a summary of the reasoning and principles surrounding the use of SCADA-based computer systems that run our critical infrastructures.

    And whilst I’m clearly not advocating the use of the inflexible embedded operating system approach seen on SCADA-based platforms, I think there is considerable scope for the Australian DSD’s report recommendations to be deployed in UK corporate IT departments.

    As well as reducing the risk profile of company IT systems, they would also greatly assist in the number of support calls need in a typical major corporate - which is something that will make the bean counters happy.

    And that’s no bad thing when you think about it…

  • 21 Mar 2012 12:00 AM | Anonymous

    JANET, the organisation that operates shared network services for the UK's higher education sector, has announced its suppliers.

    Suppliers including Dell, HP, Fujitsu, Capita and more will provide cloud infrastructure services to its customers over the next four years.

  • 21 Mar 2012 12:00 AM | Anonymous

    IBM has unveiled three packages of services and software to help organizations analyze their data for profit and improved efficiency.

    The signature solutions, as IBM calls these offerings, go beyond generic analysis software to address three different specific tasks: detecting financial fraud, predicting consumer behavior and estimating financial risk.

    "Having software is important but having industry expertise and domain knowledge is also pretty essential," said Deepak Advani, IBM vice president of predictive analytics. IBM's intent behind these packages is to combine its analytic software with the lessons it has learned installing such software for clients, Advani said.

  • 21 Mar 2012 12:00 AM | Anonymous

    City & Guilds, the UK’s leading awarding body, has chosen Azzurri Communications as their strategic telecoms partner.

    The first engagement in this relationship is for a £900,000, three year contract. Azzurri will consolidate four existing telecoms suppliers (covering mobility, IP telephony, audio/video conferencing, calls and lines and support) into one managed service to deliver cost savings and reduce complexity. Azzurri will then assist City & Guilds in their quest to use ICT in a radical and strategic way to drive real business change, through a planned and phased unified communications strategy.

    Ian Turfrey, Head of Architecture and Strategic Development, City & Guilds, said: “Our first priority was to procure a cost effective service and get more from our existing infrastructure, through an operational costing model rather than capital expenditure. We also wanted a long term strategic telecoms partner that could help take us on ‘the journey’ to a fully integrated unified communications environment. We believe this is the best way for us to support our business objectives of enhancing staff collaboration and productivity.

  • 21 Mar 2012 12:00 AM | Anonymous

    Amazon has bought the warehouse-robotics company Kiva for $775m in cash. The deal is expected to be completed in the second quarter of 2012, with Kiva continuing to run operations from their headquarters in North Reading, Massachusetts.

    Dave Clark, the global customer fulfillment vice president of Amazon.com said "Kiva shares our passion for invention, and we look forward to supporting their continued growth". Amazon has used automation as a method of increasing productivity by bringing the products directly to employees to pick, pack and stow.

    Quidsi and Zappos the online retailers that have been acquired by Amazon are also reported to be using Kiva’s robotic services.

    The move comes as Amazon reports recent high costs of fulfilment services, and the online retailer hopes to reduce its operational costs.

  • 21 Mar 2012 12:00 AM | Anonymous

    Oracle Corp. has observed a boost in German trading following reports of a quarterly profit, indicative of a growing demand for programs that help companies organize data and run operations.

    This comes following an overhaul of Oracle Corp after poor results during the previous quarter. Since the changes the company has reported increase in shares of 2.3 percent.

    Oracle has also been making acquisitions to broaden its offerings in cloud computing software delivered over the Web. It agreed last month to buy Taleo Corp. (TLEO), a maker of online human resources software, for $1.9 billion, its second Web software acquisition in less than four months.

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