Industry news

  • 9 Dec 2010 12:00 AM | Anonymous

    Finding new ways to improve cost efficiencies in this day and age can seem a little like looking for a needle in a haystack for cash-strapped local authorities.

    Indeed, at the NOA’s 8th Sourcing Summit conference recently a number of Public Sector speakers explained how the recent squeeze on public sector spending has only served to put more pressure on councils to justify their spending and find new ways of making significant cut backs.

    Councils across the country have been asked to make £780 million in savings to support and strengthen local services and help them to become more responsive and cost effective, following the government’s spending review.

    As a result, local authorities have been taking a number of different approaches to try to meet these targets, with services such as IT seen as soft targets for councils looking for departments where they can make cuts.

    For all councils, the spending review will be a test of their ability to meet the needs of their communities, whilst juggling a reduced budget and efficiency savings. To achieve these revised financial targets, it has been increasingly necessary for each council to identify its key competencies across their services using this as a framework to identify where services can be dropped, outsourced or even invested in.

    The cuts will lead to a major drive by councils as they look to strip back to essentials. They will look to extend privatisation and outsourcing into every area with the creation of new contracts and jobs.

    Many of our speakers asked if perhaps shared services is the solution? Often referred to as “Outsourcing without a contract” shared services could offer the first steps towards hitting Public Sector targets.

    A good example of where this has been put into practice has been the emergence of a new ‘super council’ formed between Hammersmith and Fulham, Kensington and Chelsea and Westminster councils.

    By merging a number of services together, and by working in collaboration and sharing information, the councils are predicting savings of between £50 million and £100 million per year. Of course, the other benefit of this is that it will result in operations streamlining whilst still protecting their most important front line services.

    It’s important, however, to understand that just as an effective and carefully planned strategy will be the difference between outsourcing success and failure so such strategic planning needs to be carried out with shared services as well. (Perhaps without the contractual rigor, but more likely for Councils, with a political rigor).

    They do need to recognise they are providers and understand what their citizens need when working out how to outsource or use shared services.

    Communication between residents and councils is vital, along with working together collaboratively in order to pinpoint where cut backs and efficiencies can be made, whilst not compromising the services they are responsible for providing.

    Shared service platforms can promote common BPO and technology platforms, enabling councils to secure greater cost efficiencies. These common platforms, which will ultimately become part of wider Public Sector Network and ICT facilities, will also help drive simpler ICT procurement and service innovation processes too.

    There is huge potential for the recent cuts to help councils to become more unified, resourceful and efficient, and shared service platforms will enable councils to progress wider partnerships with the public sector, by pooling resources or advancing initiatives where multiple funding streams are directed towards larger scale and less bureaucratic projects.

    Hopefully this will make the needle in the haystack that little bit easier to find!

  • 9 Dec 2010 12:00 AM | Anonymous

    Managing operations: FusionExperience’s 4th webinar on operations management will take place on Tuesday 14th December.

    It was good to see so many attended the first three webinars - Strategic Operating Model Design, Managing Outsource Suppliers and Managing Major Change - in our Autumn-Winter series on operations.

    The remaining webinar in this series, accessible from our website, will offer key insights into: successfully managing operations, ensuring your operations are much more predictable as well as reducing errors and complaints

    We have seen from experience that driving out unnecessary cost has always been central to streamlining operations. Yet this cost cutting can sometimes be slow to enact and difficult to pinpoint. These cost cutting initiatives need to be done by carefully managing incremental improvement.

    This improvement will increase business agility – drastically reducing project timescales (and thus cost) for small and large scale projects. In order to illustrate this, we will be looking at a series of case studies as well as examining the ‘Capability Maturity Model Integration for Services’ (CMMIs) framework, and the relevance this has for asset managers.

    Discussing these issues often raises many more interesting questions. By establishing a healthy interaction between professionals on this fascinating subject in the webinar we hope to gather together the thoughts and ideas of professionals from across the industry in order to analyse and write about our and their opinions. We very much hope you can join us.

    Gordon Easden, financial practice lead, FusionExperience

  • 9 Dec 2010 12:00 AM | Anonymous

    Home Secretary Theresa May says the only way the UK Police Force can save staff is through IT cost savings. The remarks were part of a Parliamentary written answer.

    Source: http://www.publictechnology.net/sector/defence-fire-police/it-savings-only-way-save-frontline-police-delivery-says-minister

  • 9 Dec 2010 12:00 AM | Anonymous

    Fujitsu is hoping to turn customer innovation on its head with a new 'Open Innovation' service designed to break down the current method of R&D-led innovation to one that is a truly open and collaborative.

    The company believes that the days of self-serving R&D departments are over and that organisations in both the private and public sector are now ready for an open approach that sees individuals, businesses, government and academia brought together so that true innovation can occur.

    The increased willingness for collaboration between organisations to find and develop the best solutions for some of the most challenging of shared business problems is still in its early days. However, Fujitsu’s strategy of extending the concept of real collaboration right back through the development cycle to the start of the creative function, is set to turn the innovation process on its head.

    The three key factors driving this change are the economic recession; IT evolution and new concepts such as Cloud, as well as technology enablers that can aid open innovation such as collaboration / online communications tools and trust derived from social networking.

    Fujitsu UK & Ireland's chief information officer and chief technology officer, David Smith, said: "Many companies are still taking a linear approach to innovation, ie create something in their closed environment and then hope that they can sell it to meet the perceived market need. It is possible now to take a much more collaborative approach to innovation with Web 2.0 capabilities and social networking tools. These tools allow you to create distributed communities to collaborate on a given business challenge which operated outside of traditional corporate boundaries and potentially be far more engaged with your target marketplace and be directly driven by their input; I believe that companies that innovate alone will increasingly tend to be laggards not leaders."

    The new open innovation service will allow community members to:

    - Collaborate on innovative solutions, developing new business opportunities

    - Explore existing business problems, exploit expertise and identify innovative solutions

    - Gain an expert perspective on areas of interest relating to innovation

    - Understand Fujitsu's future technology direction and technologies under development

    - Harness dedicated R&D activity to support their business

    - Shape Fujitsu R&D to ensure the outcomes fully fit their business needs

    - Reduce the costs of innovation by collaborating with Fujitsu and its partners to develop shared solutions.

  • 9 Dec 2010 12:00 AM | Anonymous

    Microsoft secured a big cloud contract win with the US Department of Agriculture (USDA) yesterday in its latest cat-and-mouse play with rival Google to score lucrative deals with government bodies Stateside.

    Just last week, Google scooped up 17,000 government drones from the US General Services Administration (GSA) as part of a five-year, $6.7m contract that was handed to Unisys Corp.

    But Microsoft's win on Wednesday eclipses Google's latest effort. The software giant inked a deal that covers 120,000 USDA workers whose systems will be migrated to Microsoft's online versions of Exchange, SharePoint and Office Communications over the next month.

    "USDA's IT modernisation will allow us to streamline our operations and help us use taxpayer dollars more efficiently. With a focused cloud roadmap, we saw a clear opportunity to achieve our cost savings and consolidation goals, and tap into the promise of the cloud," said USDA CIO Chris Smith.

    Financial terms of the agreement were not disclosed.

    To date, USDA staff have been using 21 different email systems across the department's office locations.

    Microsoft said that it has 500 state and local governments on its cloud computing books, but the USDA deal is significant because it is the first federal agency to have signed up to the company's online offerings.

    Source: http://www.channelregister.co.uk/2010/12/09/usda_signs_microsoft_cloud_contract/

  • 9 Dec 2010 12:00 AM | Anonymous

    Analysts TechMarketReview has revealed that Cloud computing will be worth £2.4bn this year, and is projected to be worth £10.4bn in 2014. This is what analysts refer to as the first wave of Cloud adoption, with the second wave, the move into private clouds. The third wave will see a migration into the public cloud, expected to transpire in the next five years.

    Chris Papa, Managing Director for communications specialist and Cloud computing company Qubic, said “I predict that the coming year will see a movement towards Cloud technology as businesses become more aware of its advantages, namely the balance between cost and savings. Despite the trend companies still need to assess the benefits in accordance with their individual requirements and businesses will need to decide when Cloud is cost-effective, and when it is not. This should be assessed in partnership with a trusted supplier and although some will take the plunge into Cloud computing others will wait. Either way by 2013 I expect to see a greater movement towards Cloud technologies.”

  • 9 Dec 2010 12:00 AM | Anonymous

    Yesterday's update from outsourcing and construction group Carillion was upbeat. The company is confident of meeting full-year targets.

    Earlier this year, Carillion started to scale back its UK construction business – with plans to reduce it by one third over the next three years. This was a prudent move.

    The group is now looking to double revenue from its international business and grow its support services operation in Britain as public sector clients outsource more work.

    Canada is one interesting source of opportunity next year. For example, Ontario is developing a new 10-year plan for infrastructure – with expenditure expected to be more than C$50bn (£31bn). There are also lots of bidding opportunities in Middle Eastern countries such as Qatar.

    No new contracts were announced, but the order book in the second half so far has grown by more than £1bn – and the pipeline continues to grow. Much of this has come from scope increases on existing contracts.

    Carillion also said it expected an improvement in the company's overall operating margin in 2010, which was 3.8pc in 2009, with margins in support services on track to achieve 5pc.

    The group is also expected to be in a net cash position by the end of 2010, with analysts pencilling about £70m.

    Source: http://www.telegraph.co.uk/finance/markets/questor/8189872/Questor-share-tip-Carillion-to-meet-expectations.html

  • 8 Dec 2010 12:00 AM | Anonymous

    The Accenture contract for FBI IT Supplies and Support Services is worth up to £30bn.

    Under the contract, Accenture is eligible to provide the FBI and other DOJ agencies with advanced analytics to support intelligence-led policing and investigation; process innovation via Accenture's Law Enforcement Center of Excellence; multi-modal biometrics and large-scale identification offerings; and financial, supply chain and human resources offerings.

    The indefinite delivery/indefinite quantity contract has a one-year base contracting period plus seven additional one-year options.

  • 8 Dec 2010 12:00 AM | Anonymous

    Standard Life is set to acquire IT supplier Focus Solutions Group for approximately £42 million.

    The savings and investment firm said the transaction will help to improve its systems and capitalise on opportunities arising within its key corporate and retail markets.

    Standard Life will combine Focus Solutions' technology with its own Wrap platform and the Focus Solutions brand will be retained.

    David Nish, chief executive at the company, said: "Standard Life continues to focus on the delivery of solutions and services for intermediaries and other distribution channels. Consistent with our previous acquisitions of [benefits technology firm] Vebnet and [independent financial adviser services firm] threesixty, the acquisition of Focus provides further capability in providing support, technology and innovation to our core markets and customers."

  • 8 Dec 2010 12:00 AM | Anonymous

    Cloud computing could give the top five EU economies a 763bn-euro (£645bn; $1tn) boost over five years, a report has said.

    The report, by the Centre for Economics and Business Research has said that the widespread adoption of cloud computing could also create 2.4m jobs.

    The CEBR report, commissioned by EMC - a data storage and IT storage firm, suggests that the rapid uptake of cloud computing service offerings will make them progressively cheaper as economies of scale take hold and service offerings increasingly mature.

    The company is just one of many pushing into the sector, all saying that 2011 will be the year of the cloud, when the technology will find mainstream adoption.

    The authors of the CEBR study acknowledge that their findings are based on assumptions and as of now no-one really knows the full impact that cloud will have on businesses.

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