Industry news

The 2011 National Outsourcing Association Awards (NOAAs) for Best Practice in Outsourcing is inviting suppliers, users and support services to enter a submission to this industry leading event by the 5th August 2011.

For the first time ever the NOA will be bringing together it’s annual Sourcing Summit and Awards on the 9th and 10th November 2011 at the Park Plaza Riverbank Hotel, London. Held on the final day of the summit, the eighth annual awards will recognise and reward innovation and achievement by suppliers, users and integrated teams within the outsourcing industry.

Entries embrace the whole spectrum of the industry – no matter what sector they are in, outsourcers of all sizes, whether an individual, SME or multinational corporate - all have an equal chance to win.

With planned attendance of 500 guests, this unmissable evening will provide an ideal setting to entertain and network with leading players in the industry. The NOAAs are unique in that they are completely independent, and as such they are highly respected and coveted within the industry.

Visit www.noa.co.uk for registration details.

Aegis Limited, the leading global outsourcing services provider and part of the Essar Group, has announced it is to enter the UK and European market for the first time, creating 600 new jobs in Manchester.

The 600 roles will be at a new customer centre in Manchester, which is expected to open later this year. Aegis then plans a further significant expansion across various countries in Continental Europe, where a number of additional customer service centres will be opened during the next two years.

Aegis, which is one of the world’s largest outsourcing businesses with over 50,000 employees across 50 locations globally, is entering the UK and European outsourcing market at a time of strong

forecast market growth.

The U.K.’s Cabinet Office has published guidance to help Government procurers consider supplier proposals “Government ICT Offshoring (International Sourcing) Guidance”.

This guidance is aimed at Chief Information Officers (CIOs), Senior Information Risk Owners (SIROs), Senior Responsible Owners (SROs) and procurers in Government Departments and exchequer funded bodies, to help them consider supplier proposals which include offshore provision and which may offer value for money.

The guidance is focused primarily on situations in which suppliers of a procured service would wish to use offshore capability to deliver some or all of the service in question. It is not intended to deal with proposals to relocate inhouse services. Any such proposals would have to be considered, as now, by ministers in the light of all elevant factors.

Offshoring efficiency savings are currently often found in Application Development (AD) and Application Maintenance and Support (AMS) services as well as in Remote Infrastructure Management Services (RIMS), implementation, testing, etc. In addition the drive to move towards consumption of publicly available shared (cloud) services, will lead to increasing delivery of ICT services from worldwide locations.

The Guidance covers the following 60 main items by categories:

1.Definition

2.Potential Benefits

3.Risk Mitigation

4.Offshoring Plan

5.Offshoring and Procurement Law: Legal obligations

6.Procurement checklist when considering offshored sliutions

7.Information Assurance

8.Data Protection

9.Freedom of Information and commercially sensitive data

10.The Data Handling clauses and Cabinet Office Pliicy Notes

11.Human resources

12.Wider economic considerations

Williams Lea, the leading global provider of corporate information solutions, has announced that it has been appointed as Managed Service Provider for print and print management services to central Government.

The contract, announced by Francis Maude, the Minister for the Cabinet Office, on 13 July 2011, is the first centrally managed contract to be awarded by Government Procurement. Under the new arrangements, the HMRC print contract will be available to all Government departments in a deal that is expected to save £21m and will replace 140 contracts with a single contract.

Williams Lea, the largest print buyer in the UK, won the contract following a highly competitive process designed to identify a strategic partner to help HMRC and central Government departments move away from a tactical print model.

As the Managed Service Provider, Williams Lea will work with Government Procurement and key stakeholders to drive efficiencies, while identifying and developing opportunities to transform print activity throughout the life of the contract.

“We are delighted to have won this prestigious contract,” said Miles Toulson-Clarke, Board Sponsor for Williams Lea. “Government Procurement was looking for an organisation with a proven record of success and the ability to deliver a transformational solution on a pan-Government scale. With this being the first centrally managed contract to be let by Government Procurement, we are delighted to have been selected to work with central Government and look forward to engaging with key stakeholders and existing vendors.”

Content management vendor OpenText is moving further into BPM (business process management) software, scooping up Global 360 for US$260 million.

Companies use BPM software to create, put in place and manage various business processes, such as the steps involved in purchasing supplies, fulfilling orders, or hiring new workers.

The Global 360 deal makes sense, given that some 60 percent of global organizations are already aligning their content management systems with BPM, OpenText CEO John Shackleton said in a statement.

Why wait for the next data security horror story?

“Government hacking is taking place right now behind the scenes.”

These are the words of LulzSec, the group at the centre of some high-profile news stories about ‘hacktivism’ in recent weeks. UK-based and international public sector institutions that have recently fallen victim to hacking attacks include the CIA, the US Senate, the EU, and Britain’s Serious Organised Crime Agency (Soca).

LulzSec claimed to have brought down the CIA’s website, and to have used a denial-of-service (DoS) attack to overload Soca.gov.uk with web requests. Soca had to take its website offline to prevent the attack from affecting other clients hosted by its service provider.

Other types of attack can result in public sector organisations having confidential information, including email addresses, passwords and phone numbers, stolen and then leaked. LulzSec recently warned the NHS that its networks are vulnerable to cyber-attack. It seems that hackers are good at identifying weaknesses – underestimate them at your peril.

Public sector data at risk

Clearly, data security is something that public sector organisations must take seriously. Missing laptops are just the tip of a huge iceberg of risk. Yet while reports suggest that data security budgets remain more or less intact, it is also clear that public sector organisations aren't being proactive enough about protecting their systems. It’s as if they are waiting for something terrible to happen before they decide to do something about it. If nothing happens, they will carry on as normal.

Obviously some public sector organisations have less time to spend on data security than they would like, but it still makes more sense to prevent an attack from ever happening than to let it happen and then panic about it at the last minute under intense media scrutiny.

Organisations that take preventative measures are also in a much better position to avoid being fined by the Independent Commissioners Office (ICO) for breaching the Data Protection Act. One council was recently fined £120,000.

The message is this: don’t wait until your data has been hacked; it’s better to make sure the attack doesn’t occur in the first place. And the case for prevention is stronger still when you consider how quickly and cost-effectively an organisation can implement preventative measures.

Preventing future security breaches

The most common ways in which networks are compromised are through weak password policies, un-patched systems or badly configured firewalls and intrusion prevention systems. Penetration testing is one simple precaution that public sector organisations can take to see which areas of its own security are compromised. An engineer checks the internal and external infrastructure, including web applications, to see if he or she can gain any level of unauthorised access. If desired this can even extend to social engineering, where an engineer will turn up unannounced and try to gain access to the network under false pretences.

Public sector organisations are often surprised to see which of their assets are already publically discoverable. By having an engineer attempt to penetrate your systems, you can identify where your network is strong and where it is exposed. It helps you to prioritise how to improve network security and make the most of your IT security budget. And a good engineer will make sure you have the knowledge and skills you need to check the network yourself on an on-going basis.

Taking this sanity check doesn’t cost a lot of money; it’s certainly a sensible investment when you consider what a public sector organisation might otherwise have to spend at the last minute to pick up the pieces following a hacking attack and mend its shattered reputation with the media, the public and individuals whose privacy has been breached.

It makes sense to check, at the same time, that:

• your internet access is controlled with an intelligent web solution,

• you are aware of all the applications running on your network,

• you have spam controls in place, and

• you adhere to all the relevant compliancy regulations.

Time to take action

Leaving sensitive data unencrypted can cause serious, long-term damage to an organisation and its reputation. A good data security provider will be able to prevent this from happening, implementing security at the device level, the network gateway level, and at the level of the client device within the secure network. The best time to act is now.

Gartner research last year stated that IT service firms need to leverage automation tools offered by software vendors, as well as develop their own tools. What role can automation play in the transition to a more industrialised outsourcing model?

"Increased efficiency, reduced costs". The mantra that every tired CIO in the country uses to send himself to sleep is fast becoming tired itself. As more pressure is being put on CIOs to deliver more with less, the industry needs to get itself into gear before it can transform. One could argue that the IT outsourcing industry needs to undergo its own industrial revolution, and move from an aging manual labour economy towards a more modern automated machine-based solution.

In November 2010 Gartner published their "predicts" report on the future of the IT Services market. The research states "by 2015, tools and automation will eliminate 25% of labour hours associated with IT services. As the IT service industry matures, it will increasingly mirror other industries, such as manufacturing, in transforming from a craftsmanship to a more industrialized model. Automation is part of this transition." Automated technologies can learn from human behaviour so that simple everyday tasks can be handed over to IT systems and solved before human intervention is required.

Traditional outsourcers have been faced with an increase in growth in terms of servers managed but a decline in the amount of resources needed to manage them effectively. Profitability issues aside, the amount of man hours wasted on management of these data centres has skyrocketed. For this reason, outsourcing organisations should be looking at automation as a viable option for optimising their infrastructure.

Clients will increasingly look at aligning IT outsourcing cost and consumption and as a consequence accessing services. Industrialised offerings will need to address key items, such as compliance, demand management, integration, pricing mechanisms and security.

Dubbing this transition a revolution is a bit of a misnomer. The traditional outsourcing model will survive, but needs must. A more industrialised and automated infrastructure is central to protect profitability in a market notorious in recent years for its stagnant growth.

I was told that in his engaging, thought-provoking presentation at the EOA conference, Carlos Flores Ramirez, Vice-President & Country Manager at NIIT Technologies Limited, said that a large percentage of IT outsourcing contracts do not deliver the success expected.

He felt there was a common reason for this is - the client did not really know what it wanted.

He said that in an industry where successes and failures are shared, this is an interesting situation. It was his view that in the outsourcing market place, there tends to be two types of client. Companies that are mature, experienced procurers of outsourced services - these companies know exactly what they want and know how to get it. The other kind is less mature in the market place and needs a supplier to be a partner that they can discuss things with.

He implied that problems can arise when the latter attempts to emulate the former, but doesn’t put in the requisite effort.

My reaction is that this is nothing new, if you don't put the effort in you don't get much out, but I think the danger with both of Senor Ramirez's types of users is that even mature organisations can underestimate the amount of effort that is required, not just to procure outsourcing services, that's the relatively easy part, but to maintain the relationship through the 5, 7 or 10 years that the contracts runs for.

Of course there is another difficulty - maintaining relationships during transition from one supplier to another, as many of my friends in the public sector can testify, where, because of procurement rules, they have had to re-tender even when the relationship and value has been good.

I do not know what was meant by "not delivering the success expected," but quite often the benefits identified in the business case are not tracked throughout the life of the outsourcing service, and actually, they might never be looked at, at all.

So sometimes this lack of success is the view of people that perhaps were not involved with the original project or the fact that what they were "expecting" wasn't even part of the deal!

So how could you prepare for this, especially if you are one of Senor Ramirez's less mature customers?

One thing’s for sure: however experienced, procurers of outsourcing should never rush into things. It is possible to sign a contract one day, and the next day, it’s already outdated. Properly clarifying your requirements takes time, money and cultural understanding.

Companies that do not put in the spadework - specifying the work to be done, the metrics for measuring success, managing the ongoing relationship - will never reap the true benefits of outsourcing.

If you're new to outsourcing, getting involved in an NOA knowledge-sharing event offers you the best way start to your outsourcing journey. Our members include a multitude of end-users, suppliers and consultants; our collective depth of experience is unrivalled.

We can show you what to consider when setting out, how to manage throughout the life of the contract and things you must know when formulating your all-important exit strategy.

The deal sees TfL and the Greater London Authority (GLA) (including the Metropolitan Police, the London Development Agency and the London Fire and Emergency Planning Authority), implementing Asite's Cloud Software.

Asite's technology will provide TfL and the GLA with a single integrated data management solution for all aspects of the contract administration process across their significant on-going portfolio of construction and facilities management works. TfL staff as well as their entire construction supply chain will use Asite's Contract Administration applications to manage contract change and to provide real-time visibility of their actual schedule and cost position against budget. This will assist each of the participants in the supply chain delivering the TfL public works programme by providing further transparency across the complexities of the gamut of forms of contract in use in the field.

Tony Ryan, CEO of Asite said, "we will be providing TfL with a true SaaS Platform, with a government grade pedigree of security, compliance, and enterprise systems integration. Our Cloud Platform will give TfL the flexibility to deliver Contract Administration to their supply chain within their existing and proven processes. Asite cSaaS and AppBuilder offers TfL and every member of their supply chain the ability to interact with critical project information in their own way by providing each participant with the information they need when they need it.

Redknee, a leading provider of business-critical billing and charging software and solutions for communications service providers, has entered into a global partnership with Tech Mahindra, a global systems integrator and business transformation consulting organisation focused on the communications industry, to jointly deliver software and services to the communications service providers market.

Redknee and Tech Mahindra announced the partnership at the Microsoft Worldwide Partner Conference 2011. This partnership brings to the market the strongest combination of Microsoft expertise to communication service providers pairing Redknee, the leading solutions provider to successfully integrate its real-time billing capabilities with Microsoft Dynamics CRM, and Tech Mahindra, the 2011 Microsoft Communications Sector Partner of the Year Award winner.

Larry Goldman, Head of Telecoms Software Research at Analysys Mason, commented: “Communications service providers increasingly value fully integrated software solutions. This agreement provides a broad range of integrated billing, charging, customer care and OSS capabilities that deliver improved time to market and reduced cost."