Industry news

Global Telecom & Technology, Inc., a global telecommunications carrier and leading network integrator serving the data communications needs of large enterprise, government and carrier clients, announces the completion of its acquisition of UK-based PacketExchange.

This acquisition provides GTT with greater business scale and a combined customer base of over 1,200 worldwide clients. GTT will add significant network assets in North America, Europe, and Asia as well as an expanded portfolio of data services, including: Global Ethernet, Global Peering, Collaborative Networking, Cloud Networking, Dedicated Internet Access and Transit as well as Network Infrastructure-as-a-Service, complete end-to-end managed network solutions.

Officially announced on May 23, 2011, GTT has moved rapidly to integrate the network assets, services and clients into its proprietary Client Management Database (CMD) to ensure seamless high-quality support of ongoing client installations, service delivery and network support.

"We are excited with the rapid progress in closing and integrating the PacketExchange acquisition,” states Rick Calder, President and Chief Executive Officer of Global Telecom & Technology. “The combination advances our growth strategy to scale the business globally through both organic growth and strategic acquisitions.

The acquisition was funded through an expanded term loan facility with GTT’s existing lender, Silicon Valley Bank and a new term loan facility from BIA Digital Partners, a private investment firm with a focus on mid to later-stage companies.

Of all the rumour and, in some cases, intrigue surrounding outsourcing in the public sector, one of the most interesting has been the recent saga surrounding the provision of services for the NHS, which has come under fire from no lesser authority than the Prime Minister.

David Cameron went as far as to tell parliament that he is ‘very concerned’ at the progress made by a major outsourcing supplier in its efforts to implement multi-million pound IT projects for the NHS, and added that he was considering ‘all available options under the current contract including the option of terminating some or indeed all of the contract’.

It’s clear that the Prime Minister is already facing some stiff opposition to his plans for reform in the NHS, under which groups of GPs would be handed control of around £80bn worth of NHS spending, with a remit to commission treatment and services from ‘any willing provider’ - including private companies.

We’ve already seen Deputy Prime Minister Nick Clegg vowing to veto the legislation, which is proving unpopular amongst MPs and activists alike. However, it’s well worth asking whether, by publicly criticising a leading outsourcing supplier, Mr Cameron is setting them as the scapegoat for his unpopular policies, and outsourcing in general?

Let’s look at this another way. Is it a coincidence that in the last week, we’ve seen outsourcing hit the headlines, following suggestions that wholesale outsourcing of public services could be a ‘political risk’?

By criticising a major supplier of outsourcing so publicly, is the Prime Minister implying that they are, in fact, the root cause of the problem? After all, the proposed NHS reforms, and in particular, the emphasis they place on using a number of different suppliers - and not just those from the private sector - hold strong echoes of the sentiments expressed in the leaked memo between Francis Maude and business chiefs, in which it was suggested that charities and social enterprises had a role to play in the provision of public services.

It’s clear that the supplier in question has owned up to a number of the inefficiencies that Mr Cameron refers to, and have even taken the step of revealing sweeping changes to the way it rolls out services, including a new deployment method to roll out patient administration systems into smaller deployments of more standard and modular components and a willingness to involve doctors at an earlier stage in IT development and implementation.

Even so, it seems to me that one supplier cannot be blamed entirely for the existing inefficiencies in the NHS - and neither should any poor performance from that supplier be held up as a reason not to outsource additional public services.

When outsourcing contracts struggle, it can be for a number of reasons, and not only because the supplier has not performed to expectations. For instance, in this case, has the contract been managed effectively from the government’s end? Were clear objectives put in place at the start of the contract? How were changes handled? For that matter, did the government work to find a supplier with the right level of cultural understanding to understand the way the NHS operated? Were they cheapest supplier?

All these are questions that need addressing before any outsourcing contract is entered into - and if they weren’t, then perhaps the government should be held accountable? The NOA is always willing to help, perhaps our lifecycle model or sourcing knowledge could be of assistance?

Whether in this case it’s a government or supplier problem, it’s clear that outsourcing has a lot more to offer than many in the government would like to admit - for whatever reason - at the moment.

Just as it’s true that one swallow does not make a summer, one project with poor performance does not necessarily mean that all outsourcing contracts are destined for failure - and the government would do well to remember that.

IBM has announced the IBM Intelligent Operations Center for Smarter Cities, a new solution designed to help cities of all sizes gain a holistic view of information across city departments and agencies. By infusing analytical insights into municipal operations through one central point of command, cities will be able to better anticipate problems, respond to crises, and manage resources.

The Intelligent Operations Center for Smarter Cities will allow cities to use information and analytics to make smarter and more timely decisions, helping local leaders manage a spectrum of events, both planned and unplanned, such as deploying water maintenance crews to repair pumps before they break, alerting fire crews to broken fire hydrants at an emergency scene, or anticipating traffic congestion and preparing redirection scenarios.

IDC Government Insights estimates the new Smarter Cities information technology market opportunity at $34 billion in 2011, increasing more than 18 percent per year to $57 billion by 2014.

“All cities are made up of a complex system of systems that are all inextricably linked. The Intelligent Operations Center for Smarter Cities recognizes the behaviour of the city as a whole, thus providing more coordinated and timely decision-making based on deep insights into how each city system will react to a given situation,” said Anne Altman, general manager for Global Public Sector at IBM. “With more than 2,000 smarter cities engagements worldwide, we are now applying best practices and solutions that can be scaled to cities of all sizes around the globe.”

As the majority of the world’s population repatriates to metropolitan areas, key city systems such as water, power and transportation are being strained to the breaking point. For citizens, a smarter city can mean automatically finding the fastest way to get to work, electricity and drinking water that can be counted on, and safer streets, to start. And today’s increasingly empowered consumer expects their standards for quality of life are met to support the urban influx and resulting economic growth of cities.

The Scottish Police Services Authority (SPSA) has put out a tender for a national ICT solution on the Official Journal of the European Union.

The contract will be worth between £40m and £80m and will create a "modern, scalable, national ICT solution for the Scottish Police Service allowing for the recording, management and analysis of information", according to the tender.

The procurement forms part of the National Information Management (IM) Programme and entails the acquisition of a new modern, scalable, extensible, national ICT solution for the Scottish Police Service that allows for the recording, management and analysis of information which aligns to and supports the Scottish Police Service's national model of common end to end policing processes and, through its design and its ability to integrate with other police ICT systems, minimises data management inefficiencies.

The scope of the IM procurement will primarily focus on the acquisition of a national core ICT solution and services to implement this solution for the entire user base (currently circa 25,000 users across Scotland). The procurement exercise may include some or all of the following: software components, software licences, specialist hardware, integration tools and services, business change activities, implementation services, reporting capabilities, data management activities, support, optional managed service arrangements, additional integration services and other relevant services necessary for the implementation of the solution.

Field Fisher Waterhouse has signed an £18.5m deal to outsource its European facilities department to Rollright Facilities.

The five-year contract, which was agreed last month and will take effect from the 6th June, will see facilities management company Rollright manage the UK top 30 firm's 20-person facilities team in London, as well as giving the firm access to Rollright's staff across Europe.

Field Fisher facilities head Peter Titus commented: "The firm is growing significantly, particularly across Europe, and we wanted to review how we could best deliver the most efficient and effective facilities management services across the firm's seven offices.

He added: "In addition, our in-house team of experienced professionals will benefit from the greater training, development and career opportunities that being within a dedicated facilities management provider will bring."

U.K. grocery retailer Morrisons is working with Xerox to better use print and marketing resources to make it easier for shoppers to get information on the best in-store deals.

Under a new, six-year agreement, Xerox will manage the sourcing, production and logistics of all in-store marketing communications, promotional material and shopper magazines. Using an on-line integrated workflow process, Xerox will connect Morrisons with its marketing agencies and supply-chain partners in real-time, providing key data to inform decision-making and improve processes.

Xerox will also deploy its Enterprise Print Services (EPS) offering to help Morrisons better manage documents across its entire print infrastructure, from the office to the in-house print centre.

“Morrisons succeeds by exceeding our shoppers’ expectations. Our customers trust us to deliver consistently high quality food at reliably low prices; we trust Xerox to do the same in terms of our marketing print needs” said Richard Lancaster, marketing director, Morrisons. “Xerox is an expert partner who we rely on to execute our campaigns, freeing us to focus on our business: bringing fresh food and great service to our customers”.

Wokingham councillors have backed plans to outsource the authority's 11 libraries to a private firm in a move it believes would save £170,000 a year.

The council said it has to save money and paying companies to run its sites could save them from being closed.

Councillors agreed to invite firms to bid for five-year contracts starting from May 2012.

It is hoped private investment would also improve services, including IT provision, and boost visitor numbers.

The EOA are delighted to announce the shortlisted entries for the 2011 EOA Summit & Awards after a record number of submissions.

Hosted by the EOA's Spanish chapter, the 2011 EOA Summit & Awards will take place in Madrid on 20th & 21st June 2011. It will look to build on the success of the 2010 event by bringing together Europe's leading outsourcing suppliers, end users and support service providers for a two day conference focusing on the latest innovations, trends and developments in the European outsourcing market.

BPO Contract of the Year

Aditya Birla Minacs (partnership with HP) - General Motors Europe

Alsbridge PLC - Accenture - Thomas Cook West

Caliber Point Business Solutions Ltd

Centrica PLC

Genpact - Diversey

Pillsbury Winthrop Shaw Pittman LLP - GlaxoSmithKline

IT Outsourcing Project of the Year

Capgemini - Molnlycke Health Care (MHC)

Everis - La Caixa

Ferrovial S.A

Luxoft - Harman

Telefonica Germany

Outsourcing Service Provider/Advisory of the Year

AppLabs

Linklaters LLP

Luxoft

Olswang LLP

SPi Global

Offshoring Destination of the Year

Business Processing Association of the Philippines - Philippines

D-Alix - Canary Islands

ITIDA - Egypt

Luxoft - Ukraine

Teleperformance Portugal - Portugal

Valueshore - Spain

Outsourcing End-User of the Year

Ferrovial S.A

Her Majesty's Revenue and Customs

Telefonica Germany

Virgin Racing

Award for Innovation in Outsourcing

AppLabs

Business Integration Partners - Prisa

Centrica PLC

CSC - Zurich Global Life

Gem

Award for Corporate Social Responsbility

Centrica PLC

CSC - Orange (France Telecom)

D-Alix

IBA Group

Indra

EOA has also announced a further new sponsor of the 2011 EOA Summit & Awards - Tetouanshore.

Speakers include

Telefonica O2 Germany, TPI, Centrica, Confederacion Espanola de Cajas de Ahorro (CECA), National Grid, Valueshore, National Rail Enquiries, NOA Pathway, Bolton County Council, Stefanini TechTeam, Stream Global Services, PRISA and Gartner.

Companies confirmed as attending this year include

Visionlab, T-Systems, MedZ Sourcing, Telefonica Espana, Repsol, DHL Supply Chain, Adecco, Amadeus, Enagas, Hitachi, Steria, Fujitsu, ITM Platform, Vocento, Universidad Euroea de Madrid, Stream, Germany Trade & Investment, Omnext BV, Microsoft, Capgemini, Bcerta, Irwin Mitchell, Caliber Point, DLA Piper, Hogan Lovells, DB Systel GmbH (German Railways), Edgewood Services, ITV and Standard Life.

For further details please visit http://www.eoasummit.com/

Firefighters and staff at Hampshire Fire and Rescue Service benefit from Virgin Media Business network to respond to incoming 999 calls and use bandwidth hungry applications such as Voice over IP and video conferencing.

Hampshire Fire and Rescue Service also plans to use the network to share services with other councils and fire services across the country including Kent Fire & Rescue in the coming months. The Wide Area Network (WAN) has been procured over the HPSN2, a shared framework agreement launched in 2009 that’s powered by Virgin Media Business’ nationwide, fibre optic network.

“ICT isn’t something that sits outside of what we do. A resilient network underpins every action we make, from responding to 999 calls call and assessing fire risk at premises across the county to reducing the number of fires through our prevention activities. It’s therefore absolutely critical that we can rely on our network at all times,” said Neil Moore, head of ICT at Hampshire Fire and Rescue Service. “Sharing services is very much a reality for us. Knowing that we have a network that has a high level of security accreditation means that now and in the future, we can share sensitive information, resources and knowledge with partners across the country.”

In a move expected to save £3 billion a year, Francis Maude has announced that the Government is making significant changes to the way it buys in categories of common goods and services such as stationery and office services.

The move follows Sir Philip Green’s Efficiency Review findings last October that Government could better take advantage of its scale and buying power.

Francis Maude also reinforced the Government’s commitment to buy more of its products and services from smaller suppliers.

Small and medium enterprise (SME) action plans set out how each Government Department will seek to achieve the Government’s overall aspiration to do 25% of its business with Small and Medium sized Enterprises (SMEs).

The plans include the creation of one central team, Government Procurement, which will contract for widely used goods and services for the whole of Government at a single, better price, ending the signing of expensive deals by individual departments. The move will end poor value contracts such as those where government departments and agencies paid between £350 and £2,000 for the same laptop and between £85 and £240 for the same printer cartridge from the same supplier.

Central procurement of common items is expected to save more than £3 billion a year by 2015 – 25% of the Government’s current annual spending on these items, helping departments to meet tighter budgets set in the Spending Review.

Francis Maude said:“It is bonkers for different parts of Government to be paying vastly different prices for exactly the same goods. We are putting a stop to this madness which has been presided over for too long. Until recently, there wasn’t even any proper central data on procurement spending.

“So, as Sir Philip Green found, major efficiencies are to be found in Government buying. The establishment of Government Procurement means that the days when there was no strategy and no coherence to the way the Government bought goods and services are well and truly at an end."