Intelenet acquires service arm of UK transport company
Wednesday, March 10, 2010
Intelenet, controlled by the US private equity group Blackstone, has announced today that it has acquired the back office operations of the UK transport company FirstGroup.
The Indian BPO firm acquired the service arm, FirstInfo, for £45m. Intelenet will now be responsible for customer management, ticket issuing and back-office processing across rail franchises including FirstCapitalConnect, First ScotRail and First Great Western.
The deal, which was formally concluded on the 10th January 2010, sees Intelenet take over FirstInfo’s two UK contact centres in Fort William and Plymouth. It also supports the company’s expansion in the UK and the aim to increase FirstInfo’s UK employees from 300 up to 2,000 in two years.
Belen Martinez, First’s rail division business development director, commented: “It will be business as usual and the new contract with Intelenet will enable First to improve services to customers.
“Intelenet specialises in the delivery of contact centre services and there will be investments in new technology and processes at the centres. We will work closely with Intelenet over the coming months to improve service.”
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Offloading internal contact centres drives significant benefits, says report
Contact centre business transformation is a viable option to generate immediate and significant cost savings, according a Datamonitor whitepaper.
The transformation practice involves an enterprise-outsourcer partnership with the express purpose of improving CRM-related business performance whilst reducing risk and costs.
According to Datamonitor and Teleperformance, who commissioned the report, transformation can be achieved by re-engineering processes and transferring contact centre facilities to the outsourcer.
Peter Ryan, lead analyst for call centres and BPO at Datamonitor, comments, “In light of escalating costs and service demands we are seeing a focus on new and innovative contact centre operating models. Business Transformation has emerged as a viable option to generate large and immediate cost savings.”
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Liverpool Council spends £26m on school ICT
Tuesday, March 09, 2010
Liverpool City Council has announced it is set to receive funding after government approval was granted for its Building Schools for the Future (BSF) plans.
“Out of the £350m being spent on the BSF project, over £26m will be on IT, around 7.3 per cent of the overall BSF spend, ” a spokesperson for the council said.
The initiative, which forms part of the BSF’s sixth wave of spending, will include the provision of ICT services at 24 secondary schools in Liverpool, due to start in 2013 until 2017.
The council is said to be currently seeking a private sector partner to participate and invest in the Public Private Partnership vehicle, GC News has reported.
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Indian Ministry of Finance signs outsourcing contract with Wipro
The Financial Intelligence Unit India, part of the Indian Government’s Ministry of Finance, has signed an IT outsourcing contract with Wipro Infotech. The project is due to be completed in 24 months with a further service period of 36 months.
As part of the deal, Wipro will manage the Unit’s IT in a bid to enhance the efficiency and effectiveness of its collection, analysis and dissemination of financial information and highlights the Government’s intentions to use technology to bring efficiency into analysis of data.
Mr Arun Goyal, director of Financial Intelligence Unit India, said: “We are keen on timely implementation of the Project as it will significantly enhance capabilities to collect financial information from various reporting entities, analyse it and disseminate actionable information to various law enforcement and intelligence agencies.”
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Housing Associations outsource to Virgin Media Business
Midlands-based Accord and Ashram Housing Associations have signed a contact centre and network deal with the newly rebranded Virgin Media Business.
It is hoped the new arrangement will help the Associations deal with its increasingly large call volumes, now up to 6,000 a month.
The network will enable the Associations to direct all branch enquiries through its new Customer First Centre.
“Given the growth and expansion of our housing portfolio in the last five years, our contact points had grown to a number that our residents found confusing,” said Ian Tinsley, Information Systems Manger at Accord.
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Support for Public Sector outsourcing grows
Monday, March 08, 2010
Capita boss, Paul Pindar, has joined a growing group of high-profile sourcing professionals calling for an increase in public sector outsourcing.
The comments were made following figures from the CBI last week that £130bn could be cut from public spending through increased outsourcing.
Pindar said: “Outsourcing companies could easily save money in areas such as benefit payments as well as reducing back office and administration costs. If you look at the total level of public expenditure of £680-£700bn and the level of savings that have previously been made of 25-30pc, there’s no doubt significant savings are there.”
According to The Telegraph, the CBI has today written to Chancellor Alistair Darling ahead of the Budget to say that “re-engineering the way public services are delivered can increase public sector productivity”
Commenting on the need for increased outsourcing, National Outsourcing Association chairman, Martyn Hart said, “The sector’s ability to cut costs by traditional means, such as staff cuts, is limited, so sourcing and shared service arrangements will come as a matter of course.”
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Philippines soaring in BPO industry
BPO firms in the Philippines are hiring new personnel on expectations of strong business growth from the United States and Europe, the Asian Times has reported.
Amongst the companies planning to expand are Convergys Corp, which plans to expand its 20,000 workforce by 6,000 employees this year and Stream Global Services which says it plans to add 5,000 workers this year.
With its English-speaking population and cultural affinity with the United States - the world’s biggest off-shoring client - the Philippines accounts for between seven per cent and 15 per cent of the global BPO market. The country lags only India, which accounts for between 35 per cent -50 per cent of the global market.
Gigi Virata, information and research director of the Business Process Association of the Philippines (BPAP), explained: “The back-office and KPO sector has been growing at a faster rate than the voice-based sector and we believe this trend will continue.”
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French nuns face outsourcing threat
French nuns have received the news that their sacramental bread may be replaced by cheaper Polish hosts, it has been reported.
Authorities are contemplating buying the cheaper wafers, according to The Guardian, as the religious bodies at French shrine Lourdes were contemplating buying cheaper hosts from Poland – which are made by a secular workforce.
However, the Lourdes church has since announced it would continue to buy wafers made in France – but only after negotiating a price reduction.
Sister Marcelline, from the Carmelite convent at Carmel de Saint Germain-en-Laye just outside Paris, told The Guardian: “Foreign producers, namely those from Poland, have undercut the market.”
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Main Street America Group appoint Wipro in seven year contract
The Main Street America Group has appointed India-based outsourcing giant Wipro in a seven year IT agreement.
In the deal, Wipro will support Main Street America Group’s IT business needs, providing the insurer with applications development, maintenance and quality assurance.
Enthusiastic about the new partnership, Ronald James, Main Street Americas chief information officer said: “As The Main Street America Group continues to increase scale and productivity, we needed to implement more efficient processes while reducing our operating costs.
“Partnering with Wipro could also help accelerate the delivery of our projects even further.”
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The sourcingfocus.com weekly news roundup
Friday, March 05, 2010
This week sourcingfocus.com has been deluged with industry research which, for a change, is broadly positive. Firstly Everest Consulting has assured us that the Finance and Accounting Outsourcing (FAO) market is expected to grow at almost 20 per cent this year. Then ProBenchmark, the pricing subsidiary of outsourcing consultancy Alsbridge, conducted research showing that costs for most outsourced IT services look set to fall in 2010. ProBenchmark have attributed this price plummet to the economic downturn as well as the increase in uptake of remote infrastructure management. Nice to hear some positive aspects of the economic downturn.
But it was not all good news. Although they claim to have ‘got your number’, the UK public haven’t returned the favour by using 118 118’s number. The directory firm whose famous advertising featured two men in 70s style jogging outfits has announced plans to close its Plymouth call centre. This move is expected to result in the loss of nearly 200 jobs.
Playboy on the other hand released yet more plans to outsource more of its business functions. Known for not shying away from controversy, the men’s magazine brand has thrown itself full throttle into using the sourcing industry to its advantage. I don’t know about you, but if its good enough for Hef…
2010 is looking good as far as I am concerned. I look forward to seeing what next week has in store for the industry.
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IT outsourcing costs to decline in 2010
Costs for most outsourced IT services look set to fall in 2010 due to the economic downturn as well as the increase in uptake of remote infrastructure management (RIM), research has indicated.
While the economic climate remains uncertain, IT outsourcing prices this year look set to remain on the downward trend which began last year, though at a less dramatic pace, according to the first quarter IT service price analysis from ProBenchmark, the pricing subsidiary of outsourcing consultancy Alsbridge.
However, the prices of some service categories including virtual server support could increase.
“How long the economy will be like this and how long client companies will continue to more aggressively [offshore] infrastructure remains to be seen,” says Chris Pattacini, ProBenchmarks’s director. “It is clear that RIM will continue to proliferate in the market, continuing that downward price pressure, but not as much as last year.”
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US insurance provider signs seven-year ITO contract
The Main Street America Group, a provider of insurance products to individuals, families and small businesses in 24 US states, has signed a seven year strategic ITO agreement with Wipro.
Under terms of the agreement, Wipro will manage Main Street America’s IT organisation. The contract aims to achieve faster time-to-market capabilities and reduce operating costs by utilising economies of scale.
Ronald James, Main Street America’s chief information officer, commented: “As The Main Street America Group continues to increase scale and productivity, we need to implement more efficient processes while reducing our operating costs”.
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NBN Co awards Accenture five-year HR contract
NBN Co Limited, the company established to deliver the national broadband network in Australia, has awarded Accenture a five-year contract to provide its core HR administration services.
Under the terms of the contract, Accenture will provide HR administration, records management, recruitment administration and performance and rewards administration to NBN Co.
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UK pension authority signs £600mn ITO deal
Thursday, March 04, 2010
The UK Government has signed an ITO contract worth £600m with Tata Consultancy Services (TCS) to manage a state-sponsored pension scheme which is still being formulated, it was reported.
The UK’s Personal Accounts Delivery Authority has confirmed that TCS is a successful bidder for a ten-year arrangement to set up and administer the National Employment Savings Trust, a scheme to be launched by 2012.
The Personal Accounts Delivery Authority said in a statement: “The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer the National Employment Savings Trust.”
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118118 call centre to close
Telephone directory firm 118 118’s call centre in Plymouth, is expected to close in June, leading to the loss of nearly 200 jobs, it was reported in Personnel Today.
The company has begun a 90-day consultation process with staff, and is reportedly offering its 180 workers voluntary redundancy.
Meanwhile, some staff were applying for positions at the company’s Cardiff call centres. It also has offices in London.
The increasing popularity of the internet has led to a fall in business since the centre’s opening in 2003.
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Romania rises as preferred ITO destination
Romania has been topped to be the new popular outsourcing destination, following research that indicated the country had jumped from 39th to19th place in an outsourcing location poll last year.
The numbers of outsourcers and employees operating within the country have increased during to the economic downturn, thanks to the country’s high language capabilities, good solid IT skills and a location in a compatible time zone to the UK - an ideal location for call centres, help desks and back office processes..
Meanwhile Europe’s leaders, including Poland, the Czech Republic and Hungary, have fallen as increasing costs for companies erode their competitiveness.
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Landmark UK pension project awarded to TCS
Wednesday, March 03, 2010
The UK government has awarded a landmark contract to Tata Consultancy Services to administer Britain’s new national pension scheme. TCS will take charge for the new personal pension accounts, known as Nest, that are due to be launched in 2012.
The deal was not expected to be signed until after the upcoming election, but was by TCS on Tuesday. It covers an initial 10 years with a possible extension for another five.
This announcement comes just days after BBC reports that Labour is planning to sign-off on new NHS NPfIT agreements before the general election.
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Punjab and Sind Bank sign ITO deal
Indian bank Punjab and Sind have announced they have signed a long-term contract with IT service vendor, Wipro to provide IT outsourcing services.
Under the deal, Indian firm Wipro will provide the bank with, system integration, provisioning and management of core banking solution and enterprise applications, including the banks entire underlying IT infrastructure.
Wipro also plans to undertake both the commissioning and management of the banks data and disaster recovery centre, enhancing service and support for the bank and according to Wipro, ‘enabling centralised banking operations across the country’.
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FAO growth expected as economy recovers
Tuesday, March 02, 2010
The Finance and Accounting Outsourcing (FAO) market is expected to grow at almost 20 per cent this year, reaching an annual contract volume (ACV) of US$3.7 billion, according to Everest Consulting.
Although new contract signings were lower in 2009 compared to recent years, new FAO spending continued to grow organically through contract extensions, representing almost 40 per cent of 2009 ACV growth.
About 35 percent of all currently active FAO contracts, valued at US$5 billion, are up for renewal during the next three years. Everest expects this cycle of contracts renewal to fuel organic growth going forward as buyers focus on expanding the value they generate from FAO.
“As the global economy continues its path towards recovery, we expect to see the FAO market regain traction, driven by new deals and scope expansions, as well as more than 45 contracts up for extension this year,” said Katrina Menzigian, research VP at Everest. “We foresee increased adoption across industries and geographies to continue. Beyond the United States, we expect contract signings in the domestic Asia-Pacific market as well as Rest of Europe to rise.”
Readers can click here to read an extract of the Finance & Accounting Outsourcing Annual Report 2010.
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DWP signs major desktop outsourcing deal
The UK’s Department for Work and Pensions (DWP) has signed a six-year contract with Fujitsu to manage around 140,000 desktop computers for its staff.
Fujitsu claim the contract is the single biggest desktop outsource deal in the UK.
The contract will enable the DWP to make savings on desk-side support and hardware costs and reduced electricity consumption which will bring the DWP’s carbon footprint down.
Joe Harley, DWP IT director general & chief information officer said: “This is the first in a series of competitions to replace our existing IT and telephony services contracts by 2015 and it sets the tone by delivering significant benefits for the DWP and as a framework for Government wide IT.”
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Queensland education department renews Unisys IT contract
Queensland Department of Education and Training has renewed its outsourcing contract with Unisys’ Australian subsidiary, to provide IT services to the department.
Under the $41m Australian dollar agreement, Unisys will continue to provide IT services to all Technical and Further Education institutes across the state, supplying IT services to students, teachers and administrators at 90 campuses across 13 Queensland institutes and the Australian Agricultural College.
Unisys will continue to support approximately 330 servers and 19,000 desktops whilst managing local and wide area networks and providing help desk services to serve approximately 75,000 support calls per year.
Tony Henshaw, vice president, Asia Pacific, Unisys Global Outsourcing and infrastructure services said the experience gained so far had helped Unisys work closely with the Department of Education and Training design a targeted solution to meet the department’s future needs.
“Under the renewal, we are committed to implementing a modernised solution that adopts new tools to enable greater levels of automation, improved service levels and efficiency,” he added.
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Playboy outsources more functions
Monday, March 01, 2010
Playboy’s chief executive Scott Flanders has announced more outsourcing contracts to follow in the coming year, making Playboy more profitable, according to the Chicago Tribune,
This follows previous news that Playboy Enterprises had outsource all business functions except editorial to American Media.
Flanders told the Chicago Tribune that the Chicago-based media conglomerate could cut its headcount of 573 employees by half as partners take over its existing operations and expand into new ventures.
Playboy also will proceed with plans to open “four or five” additional entertainment venues with partners by year-end, including a casino in Mexico and a nightclub in Miami.
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Net-a-Porter signs ITO contract
Net-a-Porter.com, a luxury online fashion retailer, has signed a contract with Claranet to provide web hosting and connectivity services that will support its expansion plans
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Outsourcing 999 control room could save £20m
Cleveland Police in the North-East of England are set to outsource all 999 call operations to a private company in a bid to save millions of pounds as public sector budget cuts continue to pose implications, it has been widely reported.
Cleveland police will appoint a private sector partner to provide both control room and other backroom functions.
The decision, which has been criticised by the Police Federation, is believed to amount to a wholesale change that would make policing less accountable and leave private company employees in control of incidents on the streets, said chairman, Paul McKeever.
However, Cleveland’s chief constable, Sean Price defended the plan, the public would benefit from potential £20 million savings and the “modern methods” used by private companies would mean customer satisfaction would also be improved.
The chief constable also reinforced the importance of calls, insisting any new staff would be expected to meet national call handling standards by answering 90% of all switchboard calls within 30 seconds and all 999 calls within 10 seconds.
“We would rightly be held to account by the public, politicians and media should things go wrong, however this situation is not of our choice but we have to recognise the realities and unless we are able to continue modernising the way we operate we could in a very short time be facing the prospect of having to consider big cuts in both jobs and front-line policing,” he said.
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The sourcingfocus.com weekly news roundup
Friday, February 26, 2010
It’s not often we hear about outsourcing supplier staff taking a stand against their client - but this week, that’s exactly what happened. It was announced on Wednesday that Siemens staff who provide the BBC’s technology, transmission and IT services are balloting for industrial action against the BBC over a pay freeze.
The freeze follows more than 70 redundancies among Siemens staff working on the BBC contract, according to broadcasting union Bectu, which had its claim for a £1,200 pay increase per Siemens employee rejected in October 2009.
Perhaps it’s about time outsourcing service providers start taking a stand when salaries or working conditions aren’t acceptable.
Elsewhere, outsourcing saw some serious progress in a relatively nascent sector – publishing. Major media organisation Reed Elsevier announced a 2009 increase in revenues and operating profit aided by cost savings from the outsourcing of IT development and back office activities.
Outsourcing its IT work helped hold down costs, as systems engineering and maintenance and software development engineering were all taken out of house, as well as some back office processes. This is a clear signal to other media and publishing companies that outsourcing reaps rewards and could see more follow suit.
Meanwhile, in the same week that the NOA held a Public Sector Steering Committee in a bid to further promote best practice in public sector outsourcing, it looks like more local authorities are jumping on the bandwagon.
Ipswich Borough Council announced plans this week to provide a customer contact centre in a bid to both improve services offered to residents, whilst making an estimated £1.5m saving over the next three years. The new centre will be a result of the council‘s recent merger with Northgate Public Services to both design and implement such a centre.
Overall, the sector glowed with health this week, as a plethora of fresh deals were announced – business was confirmed between Unisys and the Bank of Taiwan; HCL and Electrolux; and Logica and Morrison Utility Services.
And finally, it was revealed this week that fast food giant Burger King has launched a call centre in the UAE. The hub will be a centralised service point that allows customers in the UAE to dial one dedicated number and place orders at any Burger King restaurant anywhere in the country. The sweet smell of success is a flame-grill burger and a one-stop shop call centre, apparently.
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Burger King launches call centre in UAE
First Food Services, the Burger King franchisee in the United Arab Emirate (UAE), has announced the launch of the Burger King Call Centre, it has been reported. The call centre will be a centralised service point that allows customers in the UAE to dial one dedicated number to place orders at any Burger King restaurant anywhere in the country.
Equipped with an integrated database of customer contacts, the call centre will provide support in both English and Arabic, and will take customer orders, answer queries and receive complaints.
Yasser Abdel Azim, general manager of First Food Services commented: “With the launch of this call center, Burger King customers in the UAE now have a number to place orders - irrespective of the restaurant location.”
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NII Holdings appoints HP in ITO contract
Mobile communication services provider NII Holdings has signed an IT outsourcing deal with HP Enterprise Services.
Under the agreement the outsourcing service provider will manage NII’s IT applications and technology infrastructure support services throughout Latin America and its headquarters in the US.
Technology giant, HP aims to standardise processes, consolidate technology infrastructure support services and employ new technology to assist NII’s customer offering.
It will also provide applications development, management and testing services that include NII’s software development processes, billing systems and applications support.
Alan Strauss, chief technology officer of NII, said: “Using the expertise of HP and the experience of our employees, we will standardise our processes and leverage the opportunities to increase our operational flexibility, improve cost efficiencies, and improve our service quality.”
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Shop Direct delays cutting 180 jobs
Thursday, February 25, 2010
Shop Direct has delayed call centre closure plans after extending talks with Union of Shop, Distributive and Allied Workers (USDAW) local MP Lembit Opik, reports Call Centre Focus.
Littlewoods and Kays owner, Shop Direct announced earlier this year that the organisation intended to shut three of its call centres in Newtown, Sunderland and Burnley, with the loss of a total of 1,500 staff.
The Newtown site which was due to close in June has been postponed after the consultation talks. The closure dates for both Burnley and Sunderland centres however, are still being discussed.
‘Shop Direct Group can confirm that the proposed closure date for the Newtown contact centre has been extended to the end of December 2010 to allow time to investigate further options with third parties for avoiding redundancies at Newtown,’ Shop Direct said.
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Bank of Taiwan signs new core banking deal with Unisys
The Bank of Taiwan has signed two-year core banking contract with a Unisys’ Taiwanese subsidiary.
Under the contract, Unisys will extend the core banking system to support the bank’s seven overseas branches and manage the requirements of Taiwan’s Anti-Money Laundering (AML) legislation.
The new system will be expanded to include overseas branches, creating a single global system. The bank hopes this will help: ‘leverage the bank’s existing investments in staff, reporting and risk management procedures.’
“In today’s complex banking environment it is vital that financial institutions have the tools and audit trail to help detect and prevent money laundering activity. The new core banking solution that Unisys is managing for Bank of Taiwan is designed to not only help the bank meet its AML obligations, but also enhance the services the bank provides to the overseas branches and their customers,” said Scott Whyman, vice president, Unisys Asia.
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BBC pay freeze may lead to Siemens staff strike
Wednesday, February 24, 2010
Technology employees working for the BBC’s supplier, Siemens, are currently balloting for strike action following the broadcaster’s decision to introduce a pay freeze, according to Computing.
In 2005, Siemens signed a ten-year contract with the public service broadcaster to deliver an enterprise integration architecture layer and other key technology services after the BBC closed its Technology division.
The decision comes at a time when relations between the contractor and its employees at the BBC are already “at an all time low” union official, Suresh Chaula, following the 70 recent redundancies within the Projects and Media Systems division.
There are also a further 50 jobs at risk in the Network and Server Operations division, which is set to be outsourced to Romania.
“As the BBC’s technology partner, Siemens are responsible for keeping our services on-air and online. They have kept us informed as talks have progressed and assured us that, in the event of strike action, contingency plans are in place to ensure there will be no adverse effect on audiences,” the BBC said in a statement.
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Ipswich Council set to create contact centre hub
Ipswich Borough Council has announced it plans to provide a customer contact centre in a bid to both improve services offered to residents whilst making an estimated £1.5m saving over the next three years.
The new centre will be a result of the council‘s recent merger with Northgate Public Services to both design and implement such a centre. Staffed by specialist customer service teams, the centre is hoped to offer the most effective services possible.
“For the first time, local people will be able to raise questions and resolve their concerns through a single point of contact with council staff. As a result, the customer contact centre is certain to have a positive impact on improving the quality of life among our communities,” said Terry Hayward, head of community and customer services.
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Morrison Utility Services signs £10.9m ITO contract
Tuesday, February 23, 2010
Utility provider Morrison Utility Services, has extended its outsourced IT contract with Logica for another eight years in a contract worth £10.9m.
The deal will see Logica provide IT support and management for Morrison Utility Services’ 3,200-strong workforce with until 2014.
Alongside infrastructure management, Logica will also provide application and change management services.
Graeme Cross, head of IT at Morrison Utility Services, said: “As our business grows and adapts to changing market conditions, Logica continues to re-engineer its service.
“The contract that we have with Logica provides a flexible framework that meets the changing nature of our business and we look forward to working together.”
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Competition forces L&T Infotech into BPO market
Software exporter, L&T Infotech has announced it plans to provide business process outsourcing, (BPO) in addition to its existing portfolio of services.
With the aim of providing customers with a full range of services, starting from application development to testing back-office processing, the move will help beat off the firm’s larger rivals already in the outsourcing market.
L&T Infotech has also has appointed one of the big four consulting firms to help advise on its BPO strategy, delivery locations whilst helping to decide whether acquisitions are an appropriate entry strategy for the firm into BPO services.
“We want to be able to offer to the full range of services. We already have infrastructure management, independent testing services and application development and maintenance,” said Sudip Banerjee, CEO of L&T Infotech.
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Reed reaps rewards of IT outsourcing
Monday, February 22, 2010
Publisher Reed Elsevier saw an increase in revenues and operating profit last year aided by cost savings from the outsourcing of IT development and back office activities.
Reed Elsevier said outsourcing its IT work helped hold down costs, it was reported in computerworlduk.com, as systems engineering and maintenance and software development engineering were all outsourced, in addition to some back office processes.
“Good progress is being made in developing the next generation of legal research products, and the advanced back office infrastructure to support them, to deliver an integrated and superior customer experience across legal research, workflow tools, practice solutions and client development,” said the company in a statement.
The publisher revealed last week that its revenues for the year had grown 14 per cent to £6,071m, while operating profit had also increased 14 per cent to £1,570m.
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Electrolux signs five-year ITO deal with HCL
Appliance manufacturer Electrolux has signed an IT infrastructure management contract with outsourcing giant HCL.
Under the contract, lasting five years, HCL will take charge of network monitoring and management, servers, IT security and end user computing.
“We wanted to offer a standardized service to Electrolux operations in Asia Pacific without increasing costs. In HCL we found a partner that understands standardization of services and has an ability to support the business locally across the region” said Bertil Norberg, Electrolux Group CIO.
HCL will serve Electrolux through its Global Delivery Centres in India and Malaysia and onsite. It will provide helpdesk services in languages including English, Vietnamese, Thai and Bahasa (Malaysia & Indonesia).
The deal covers 12 countries in the APAC region including Australia.
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British equity firm invests $50m in Filipino KPO
Emerging markets private equity investor, Actis, has recently signed a $50 million investment deal with Integreon, a Mumbai-based outsourcing firm backed by Ayala Corporation of Philippines.
Integreon, a knowledge processing outsourcer provide document, legal, analytic, and business services across the globe. Currently with operations in London, Los Angeles, New York, Mumbai, and New Delhi, Integreon hope the investment will help further expand their operations. As a result of the investment, UK firm Actis will also receive two seats on the firm’s board.
Integreon, whose clients include Microsoft and other well known legal firms, plans to double its work force of 200 in the Philippines, to 2,000 around the world, suggesting the KPO market is still strongly emerging with good investment opportunities.
Fred I. Ayala, chief executive of Ayala’s business process outsourcing (BPO) investment arm said, “the company continues to regard the BPO sector as a good area for investment.”
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Israeli’s immigration signs $11.2m outsourcing contract
Israel’s Ministry of Immigrant Absorption has signed a $11.2m contract with ITO provider, Ness Technologies.
Under the five-year agreement, Ness Technologies will provide 24-hour technological support to the ministry’s IT systems responsible for immigrant absorption, registration of immigrants and management of assistance resources, such as public housing, financial assistance and customs tax grants.
The company will also upgrade the ministry’s existing helpdesk in the ministry’s bid to expand ICT systems even further.
“Ness Technologies will assist us in leveraging our IT resources whilst further developing our ICT systems to streamline the immigrant absorption processes. We will continue to improve service to immigrants based on these advanced IT systems,” said, Sigal Lebovich, manager of the Information Systems Department of the Ministry of Immigrant Absorption.
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CAE partners with Wipro to address India’s defence training needs
Friday, February 19, 2010
CAE, a developer of simulation technologies, has signed an agreement with Wipro to address the simulation-based training, operations and maintenance needs of India’s defence forces.
Wipro and CAE will work together to provide training systems integration and simulation-based solutions for war gaming, C4ISR (battle command) and a range of other defence platforms expected to be acquired by India’s defence forces.
“The Indian defence market is of strategic importance to CAE and this importance is demonstrated in the investments and strategic relationships CAE has established in India,” said Ash Sarin, CAE’s regional VP for marketing.
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Santander AM ponders fund outsourcing plan
Wednesday, February 17, 2010
Santander Asset Management may look to reduce its in-house fund management operation through outsourcing.
According to reports, the firm may look to reduce its in-house fund management operation by focusing its attention on only a handful of European and Latin American countries.
The key countries would be México, Argentina, Chile, Colombia and Puerto Rico.
According to Spanish newspaper Expansion, the firm’s recent appointments, Juan Marin and Javier Alcaraz as heads of its private banking and asset management team, indicate a change of focus.
This could lead to the firm managing products only in the Spanish, Portuguese, UK and Latin American markets whilst outsourcing products in its other markets, the paper claims.
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Vivacom appoints Alcatel-Lucent in outsourcing deal
Alcatel-Lucent will provide end-to-end network operations management for Bulgarian telecommunications firm Vivacom in new outsource deal.
The contract, which is set to last five years, will also see around 3,000 of Vivacom employees join Alcatel-Lucent under pre-existing terms and conditions of service, it has been widely reported.
“The selection of Alcatel-Lucent will enable Vivacom to lower its operating expenses and ensures that Vivacom customers will receive services of top quality,” said, Andy Williams, president of Alcatel-Lucent’s services business.
Alcatel chief executive, Ben Verwaayen, also predicts outsourcing and co-sourcing deals will increase even further in the future, as companies seek to pool expertise as they search for new areas of growth in a bid to save costs.
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IT needs investment to improve council performance
Tuesday, February 16, 2010
Local authorities view IT schemes as crucial to improving performance this year, a survey of council IT staff has indicated.
While 47 per cent of those surveyed at the recent Civica annual conference admitted they were expecting spending cuts, nearly 60 per cent suggested IT was a key investment area in 2010, according to computing.co.uk.
Further findings indicated that key strategies for driving efficiencies include the re-engineering of workflow processes (33 per cent) and greater use of mobile and flexible working (31 per cent).
David Roots, managing director of surveying company Civica, said: “Rationalising, re-engineering and automating processes is critical to delivering greater service effectiveness while reducing costs in all areas. There is still plenty of scope for local authorities and their partners to exploit technology in addressing the ‘more for less’ demands put upon them.”
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Capgemini wins €94m deal with Fortum Distribution
Capgemini has joined forces with Swedish energy company Fortum Distribution to manage its smart metre provisions, in a deal worth €94m.
The ten year contract includes management of Fortum’s existing portfolio of 860,000 smart meters in Sweden, and will provide regular and scheduled meter reading, field services, service desk, management reporting, data centre hosting and application management.
Capgemini will also be responsible for managing subcontractors, such as telecommunications, software providers, meter manufacturers and field service providers in the deal, which will operate globally from countries including Sweden, Poland, India and Finland.
Peter Harris, VP and European leader of Capgemini’s Smart Energy Services said this was a deal of the utmost significance for Capgemini.
“Not only is Fortum an ambitious company, with aspirations to be a leader in the smart energy sector, the Nordic region is also leading Europe in this space with smart meters already deployed in every household in Sweden, and Finland and Norway close behind.
“We welcome the opportunity to harness the strength and collective expertise of our newly formed dedicated Smart Energy Services practice to help the company achieve its goals,” he added.
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Customers feel complaints ‘not taken seriously’
Over two-thirds of customers feel complaints made to call centres are not being taken seriously enough, with more than half of customers finding call centre employees ‘robot-like’, research has indicated.
A study from speech search specialist Aurix suggested 70 per cent of complaints were not being heard or taken seriously, with further fundings including 96 per cent of respondents saying they would consider switching to a competitor as a result of their complaint not being taken seriously.
Furthermore, nearly three quarters (74 per cent) said they get frustrated by ‘poor communication’ when dealing with an agent, in the survey of 105 customers online.
Peter Rogers, Aurix chief executive said: “Our survey reinforces the message that customers are significantly more likely to “churn” to a competitor based on a poor experience.”
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Ageing population increasing medical outsourcing, says survey
Monday, February 15, 2010
Medical equipment outsourcing is on the rise because of the ageing population. Advancements in technology, the desire to lead an active lifestyle, the rise in chronic conditions and increased public and private spending, are also contributing to a sharp rise, according to a new Bharatbook report.
The report, “Outsourcing in the Global Medical Equipment Industry – The Market Expected to Register High Growth in the Future”, forecasts that the medical equipment outsourcing market will reach $40.1 billion by 2016.
It analyses the key drivers behind outsourcing of manufacturing, clinical research and other support services to low-cost service providers based in Asian countries and elsewhere.
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Firstsource signs BPO deal
UniRush, a US pre-paid card company, has signed a three-year outsourcing deal with Firstsource Solutions, one of India’s largest BPO providers.
Under the agreement, Firstsource will take responsibility for Unirush’s customer services and back-office management for the company’s e-work division. It is hoped the deal will deliver increased operational efficiency whilst reducing risk.
Ram Palaniappan, general manager, UniRush, commented “The partnership will support our extraordinary growth and allow us to continue our tradition of outstanding service delivery to our customers and our partners.”
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The sourcingfocus.com weekly news roundup
Friday, February 12, 2010
Kraft has managed to ruffle the feathers of the British public yet again, with more news pertaining to the nation’s favorite chocolate-maker, Cadburys. It was reported this week that the American food giant is going ahead with plans to offshore its chocolate production to Poland. Gone is the English reserve, as Cadbury’s national officer claimed that the Somerdale branch is to be only the first casualty of Kraft’s ownership.
Poland may or may not be renowned for its chocolate-making skills but one things for sure: the British public won’t take kindly to yet more foreign intervention.
Moving on now from Picnics to planes; it was revealed this week that civilian contractors are being sent to Afghanistan to operate military pilotless aircraft.
QinetiQ has operators working with the Royal Netherlands Army in Uruzgan province in central Afghanistan providing a system of unmanned aerial vehicles that can be called on at any time by the Dutch forces.
Meanwhile, Chinese and Indian students are top dogs apparently when it comes to IT literacy. According to a study released by Accenture, China and India stand to gain a global competitive advantage because of the importance placed on IT.
Western Europe did not fare very well however, as the research revealed that they felt technology was too time consuming. Meanwhile, the Americas (Brazil, Canada, and the United States) and Asia-Pacific (Japan) have positive perceptions of technology, but still not at the same level as young people in China and India.
And finally, the UK’s driver licensing body, DVLA, has announced proposals to outsource 20 medical adviser jobs in Swansea.
The doctors whose positions may be outsourced, work to decide whether drivers with certain medical conditions are fit to hold a licence.
Chocolate, military personnel and medical advisors - what a range of things to outsource. Who knows what could come next…
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DVLA plans to outsource medical jobs
The DVLA, the UK’s driver licensing body, is proposing to outsource 20 medical adviser jobs in Swansea.
The doctors whose positions may be outsourced, work to decide whether drivers with certain medical conditions are fit to hold a licence. The medical advisers are supported by a team of 300, but there is no indication that any of these positions will also be outsourced.
The news is causing worry in Wales with the British Medical Association Cymru and the Liberal Democrats expressing concern over road safety and the security of further jobs at the DVLA.
Dr Richard Lewis, the BMA’s Welsh secretary, commented: “I am extremely concerned that the DVLA are proposing to outsource the service currently provided in Swansea by 20 medical advisers which could lead to the loss of these jobs from the area, and can only be construed as a clear step towards privatisation of the service.”
In reply, a DVLA spokesperson was noncommittal: “We are considering how the DVLA’s professional medical advisory function can be best provided to meet growing demand and ensure that appropriate medical expertise is available when needed.
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Israeli Ministry signs $11m ITO contract
Israel’s Ministry of Immigrant Absorption has signed a five-year, 42 million Israeli shekel (approximately $11.2 million) outsourcing contract with Ness Technologies.
The contract includes an option of an extension of up to an additional five years.
As part of the agreement, Ness Technologies will operate and maintain the ministry’s IT systems 24/7, including applications, infrastructure systems, communications, and workstations. In addition, Ness Technologies will upgrade the ministry’s helpdesk.
Sigal Lebovich, manager of the Information Systems Department of the Ministry of Immigrant Absorption, commented: “Ness will assist us to leverage our IT resources and further develop our ICT systems to streamline the immigrant absorption processes. We will continue to improve service to immigrants based on these advanced IT systems.”
The ministry’s Information Systems Division is responsible for the operation of ICT systems for immigrant absorption, including registration of immigrants, management of assistance resources such as public housing, financial assistance and customs tax grants. The division supports 600 users at 40 sites nationwide, and operates two IT facilities - one in Jerusalem and another at Ben-Gurion International Airport.
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SNS Bank shows outsourcing interest in BinckBank
SNS Bank has outlines its intention to outsource both the execution and administration of its security transactions to BinckBank.
Once an agreement has been reached, outsourcing is expected to be finalised early in 2011.
Under the agreement BinckBank would takeover SNS Bank’s total security-related process for both its investment fund and stock exchange investments.
“SNS Bank aims to be the best in selection, servicing and distribution for both investment fund investors and independent investors,” said Henk Kroeze, chairman of the board of directors of SNS Bank.
“Outsourcing the process that extends from transaction to administrative processing to BinckBank fits in with this strategy.”
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Kraft to outsource Cadbury factory to Eastern Europe
Wednesday, February 10, 2010
Food giant Kraft has been accused of going back on its word to keep open a Cadbury factory, after union officials said its closure was going ahead, the BBC reports.
Kraft plans to follow Cadbury’s plans, made before the takeover and off shore its chocolate production to Poland.
The closure, which is expected, before 2011 will result in up to 400 employees jobless.
“The ink is barely dry on the takeover and a promise made to the Cadbury workers has been broken. If the rumours now circulating are to be believed, Somerdale looks set to be the first casualty of Kraft’s ownership,” said national officer Jennie Formby.
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NHS extends £6m cloud security deal
The NHS has extended a networking deal with Novell, covering security and workload management for cloud applications, it was has been widely reported.
The agreement is worth around £6m and will run for up to five years. The supplier’s Secure Login software will aim to improve access controls for different types of hospital records.
Mark Ferrar, strategy director at the NHS, told Computer World UK that using an open source-based system “not only reduces costs, but will also underpin two key strategic initiatives for the NHS – reducing our environmental impact and moving towards a cloud computing environment”.
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Students in China and India surpass Western Europe in IT literacy
Companies in China and India stand to capture a global competitive advantage because of the strength of their country’s student IT literacy, according to new research from Accenture.
The research, based on a survey of more than 5,000 students and young workers in 13 countries around the world, found that the technology practices of new hires and students, between the ages of 14 and 27, have leapfrogged their counterparts elsewhere in the world.
The research showed that in much of Western Europe the same sample felt that technology consumes too much time.
The Americas (Brazil, Canada, and the United States) and Asia-Pacific (Japan and Australia), meanwhile, have positive perceptions of technology, but not at the same level as young people in China and India.
Gary Curtis, Accenture’s chief technology strategist commented: “The implications are profound. Companies are at risk of failing to attract and retain new hires, while also seeing their competitive edge erode from lack of innovation in information technology.”
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Nokia to slash 285 jobs in plant revamp
Tuesday, February 09, 2010
Nokia plans to axe up to 285 jobs at its plant in Salo, Computer Business Review has reported.
The move comes as the Finnish giant plans to revamp the plant, develop an operational mode, introduce new specialised manufacturing methods, focusing attention on the high-end smartphone market in Europe.
Juha Putkiranta, senior vice president of markets at Nokia, said, “Salo is a crucial part of Nokia’s global manufacturing network. Plans involving changes to employees are always painful, and they are set in motion only after thorough consideration.”
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TCS opens third Mexican centre
Tata Consultancy Services (TCS) has opened its third delivery centre in Queretaro, Mexico.
The new centre will serve global clients in IT services, consulting and testing, BPO and call centre services.
Speaking at the launch, Ankur Prakash, director of TCS for Latin America, commented “We remain committed to Mexico and we continue to invest in developing the skills of the IT professionals here.”
The company plans to hire 500 new agents in 2010 to staff the centre.
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UK outsources staff to operate machinery in Afghanistan
Monday, February 08, 2010
Civilian contractors are being sent to Afghanistan to operate military pilotless aircraft, the Times has reported.
QinetiQ has operators working with the Royal Netherlands Army in Uruzgan province in central Afghanistan providing a system of unmanned aerial vehicles (UAVs) that can be called on at any time by the Dutch forces. UAVs are being used increasingly by the Nato-led operation in Afghanistan, although American and British forces generally operate them themselves.
Outsourcing is expected to grow as pressure on defence spending rises, but it is controversial in conflict zones because it requires qualities such as flexibility, trust and mutual understanding that are difficult to write into a standard contract.
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Essex councillor charged in expenses scandal
Essex council leader, Lord Hanningfield has resigned after expense charges were brought against him, Computer World has reported.
The council signed the eight-year agreement with IBM to transform its operations and services, and cut costs. However with costs expected to be between £2.3 billion and £5.4 billion, dependent upon the services procured, Essex council has been criticised for the scale of the project after other outsourcing deals had previously gone wrong.
Hanningfield, who initiated the multi-billion-pound outsourcing contract between IBM and Essex County Council in 2009, now faces criminal charges along with four other politicians over his expenses claims.
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HP strikes deal with Geo to connect centres
Friday, February 05, 2010
HP Enterprise Services has paired up with Geo to design and build a fibre network in the UK to connect two data centres in the North-East of England.
Geo has designed new routes between HPs’ existing data centre in Sunderland and their new 330,000 sq. ft. eco-data centre near Middlesbrough.
It will be the largest data centre to be commissioned in Europe in 2010. HP purchased the facility in February and immediately started its fit out as a high tech data centre site. Following completion of the build, the ongoing support and maintenance of this new network will be undertaken by Geo on HP’s behalf.
“The Wynyard Data Centre incorporates the very best of data centre design, from the environmental features critical to its efficient operation through to the IT infrastructure,” said Gary Bailey, HP-Enterprise Services Network Programme Manager.
“A key consideration in designing communication infrastructure for the facility was modelling all possible points of network failure to the highest levels of diversity and security. Geo demonstrated their capabilities in this respect and were selected for their ability to meet these demanding requirements,” added Bailey.
“Geo has a wealth of experience in the design, build and operation of fibre networks in the UK. We have been able to provide HP with the expertise that comes from building and managing nationally more than 3,000km of network throughout the UK,” said Chris Smedley, Chief Executive, Geo.
“Dedicated fibre optic networks offer the highest levels of reliability, total control, no sharing or shaping of traffic with the ability to scale up your bandwidth to as high a level as you need,” added Smedley.
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The sourcingfocus.com weekly news roundup
Great news: the outsourcing industry is making a gradual recovery - or so says the largest sourcing data and advisory firm in the world. TPI released their fourth-quarter and full-year 2009 data showing that the global outsourcing market had its best performance in six quarters and that a slow but steady recovery in the industry is underway.
The 4Q09 Global TPI Index revealed that total contract values are up 47 per cent sequentially to $24.7 billion, the highest since 2Q08. 2010 is looking like it is going to be a positive year for outsourcing - and about time too.
It is nice to start the Round-Up on a high. The positive news has been flowing into the sourcingfocus.com news room this week. So, for a change, the Round-Up is overflowing with optimism.
Analyst firm Ovum has agreed with the National Outsourcing Association’s predictions which indicated that public sector outsourcing is on the rise. In particular, contact centre outsourcing is set for significant growth as public sector organisations attempt to cut costs.
Among the new deals we reported on this week was the US drugstore chain Walgreens and tycoon Richard Branson’s Virgin Atlantic. Walgreens announced a BPO deal with Genpact for a ten-year period that will involve the transfer of at least 500 jobs. Virgin Atlantic signed a five-year agreement with SITA who will be providing IT support for the airline.
There were some new mergers and acquisitions announced this week too. BPO provider Intelenet launched a new operations and customer contact centre in Krakow, Poland. Outsourcing Malaysia on the other hand announced plans to undergo a consolidation of sorts. The aim is to make it more competitive in the global market by merging it into a larger force to be reckoned with.
It’s looking good, sourcing folks! If you fancy having your say about the outsourcing market check out Op2i’s outsourcing survey. The survey will be looking at the impact of the recession and its recovery on the outsourcing sector – with the results to be made available on sourcingfocus.com.
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Op2i relaunch outsourcing survey
Research consultancy and advisory firm Op2i has relaunched a survey looking at the impact of the recession and its recovery on the outsourcing sector – with the results to be made available on sourcingfocus.com
The study, which builds on last year’s survey from the company, is titled “Outsourcing Expectations and Reality – where next?” and will also look at the outsourcing plans of various organisations.
Respondents are provided with an instantaneous analysis of their responses with answers compared with views from industry gurus.
To complete the 15 minute survey log on to http://www.proxi.co.uk/op2i
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bmi pairs up with IBM
UK airline, bmi, has signed a contract with IBM to manage a new-look passenger check-in operation.
As part of the ITO contract IBM has re-engineered bmi’s kiosk, web and mobile self service check-in systems.
The new system will service bmi’s main UK and Ireland airports including Heathrow, Manchester, Edinburgh, Glasgow, Dublin and Belfast.
The installation of the new system aims to increase customer uptake of the self service system, allowing bmi to “achieve continued cost savings, keep airfares competitive and improve customer service levels”, said the tech giant.
Peter Federico, bmi Group IT director, said: “We are pleased to be partnering with a company which has demonstrated its capability in this field over a number of years. It gives us a unified check-in platform for self service kiosks, web and mobile devices.”
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Job cuts at Helphire call centres
Accident management company Helphire Group could cut as many as 300 jobs in its Bath call centre in an attempt to reduce costs.
Employees at the company’s Bath call centre will remain those most affected by the plans as the firm proposes the consolidation of its contact centre work and the work carried out at its two offices in the north of England.
Helphire however, hope to transfer some of the roles.
‘A consultation process is underway with potentially affected employees within the Bath contact centre,’ Helphire said.
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Intelenet launch new BPO centre in Krakow
Thursday, February 04, 2010
BPO provider Intelenet is launching a new operations and customer contact centre in Krakow, Poland.
The 150-seater facility, located in Southern Poland, will “enhance the company’s near shore capabilities in Europe”, said the company, which plans to grow the facility to 500 seats in around a year.
The centre will make use of the “rich multi-lingual talent base” found in Poland.
“The BPO business has truly grown global over the years and clients look at outsourcing partners that can manage critical processes from multiple global locations,” said.Susir Kumar, managing director and chief executive officer,
“The new facility is a step forward to augment our nearshore presence, and provide a globally integrated service offering to our clients,” he added.
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Malaysian outsourcing firms to consolidate
Malaysia’s outsourcing and shared services (SSO) industry is likely to undergo a consolidation of sorts as it seeks to reinvent itself in the face of stiff competition in the global market, according to reports.
Outsourcing Malaysia is rolling out a three-year plan to promote the creation of two or three SSO consortiums, which will be ready to compete globally by 2012.
Outsourcing Malaysia chairman, David Wong, commented: “In the outsourcing business, the name of the game is the ability to scale. Obviously, if you are small, you’ll find it difficult to do that and won’t be able to bid for major global contracts”.
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Walgreens announce BPO deal with Genpact
US drugstore chain Walgreens has signed a ten-year outsourcing agreement with Genpact in a move that will involve transferring at least 500 jobs.
As part of the contract, Walgreens plans to transfer its accounting processes to Genpact resulting in around 500 Walgreen accounting staff in Illinois, U.S, joining Genpact’s payroll.
“The deal will help us improve cost productivity and facilitate our growth strategy, while maintaining an agile and service-focused organisation,” said Walgreens executive vice-president and CFO Wade Miquelon.
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Public sector call centre sourcing to increase
Contact centre outsourcing is set for significant growth in the public sector as organisations attempt to cut costs, according to analysts Ovum.
A combination of budget cuts set against increased demand for better services by citizens, will make call centres increasingly attractive to the sector, indicated the analysts.
Ovum also expressed the potential for increasing use of “non-traditional CRM” systems as part of government contracts. Interactive voice response, analytics and outbound notification are all potential growth areas.
Ovum said it remained “bullish” about outsourcing opportunities in the public sector despite the fact staff were likely to “fight aggressively to prevent the use of outsourcers as a means of reducing public payroll headcount”.
It also indicated that there was likely to be widespread resistance to increased levels of offshoring – something frequently condemned in the media. It said cost savings would need to be created “through automation rather than labour arbitrage”.
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EMEA outsourcing momentum surged in Q4 2009
Wednesday, February 03, 2010
The value of outsourcing contracts in EMEA surged during the fourth quarter of 2009, research has indicated.
Total Contract Value (TCV) in the region managed to hit €12.4bn in the last three months of the year - an increase of 135 per cent on the previous quarter and 61 per cent year-on-year.
However, in spite of the improvement in the number of large deals taking place, the overall market shift to smaller value deals continued, according to the fourth quarter EMEA TPI Index.
However, as in other regions of the world, the strong quarterly performance was not enough to offset the effects of the global recession and the pause in outsourcing decision-making on full-year results, said TPI.
“The fourth quarter showed clear signs of recovery, but as expected, the recession took a toll on the full-year results,” said Duncan Aitchison, partner and president, EMEA at TPI.
Additional findings include:
•IT Outsourcing (ITO) dominated EMEA market activity in the fourth quarter, up 127 percent from Q3 and 62 per cent year-on-year.
•Business process outsourcing (BPO) in the region grew 214 percent compared to the third quarter and 57 percent year-on-year.
•Contracts awarded in Financial Services, driven by mega-deal activity, increased 57 per cent from the first half of the year.
“While we don’t expect a bounce back to pre-recession levels, we are maintaining a positive outlook for 2010 as the market starts to show momentum in key industry verticals and signs of steady recovery in the broader market,” concludes Aitchison.
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JLL sign IBM in long-term IT services deal
Financial services firm Jones Lang LaSalle (JLL) has joined hands with IBM in a seven-year IT services deal.
Under the agreement IBM will provide JJL with infrastructure support services across 19 of the countries where JJL operates, throughout the EMEA region.
The contract will supply end-user support in nine different languages across a number of functions including server operations, application management, helpdesk, network management, asset management, IT procurement, service management and system security.
“Jones Lang LaSalle has a long-standing business relationship with IBM which understands the specific IT requirements in the real estate sector. The relationship is vital for us in continuing to adopt new technologies to service our worldwide operations,” said Andy Palmer, chief information officer, EMEA, Jones Lang LaSalle.
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Suncorp Group extends Unisys BPO deals
Australian bank Suncorp Group has extended its two BPO agreements with Unisys to provide services across Australia.
Unisys Payment Services will continue to provide Suncorp’s with cheque processing services for a further two years and direct entry electronic payments for a further three years.
Unisys will provide the services from centres in Sydney, Perth, Brisbane, Melbourne and Adelaide.
Suncorp Bank General Manager Terry Wasmund said: “Having Unisys provide these services allows us to focus on other core areas of our business, knowing that back-end payments are being processed in an efficient and cost-effective manner.”
Since 2001, Unisys has processed approximately 68 million cheque, direct debit and credit payment transactions annually for Suncorp.
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Virgin Atlantic signs ITO deal
Virgin Atlantic has signed a five-year agreement with SITA services to provide IT support for the airline, it has been reported. Under the five-year agreement, SITA services will take over 40 contracts from previous suppliers.
The IT outsourcing contract will include the provision of international and domestic IP virtual private networks, voice-managed local area networks, cabling, network support and vendor and service management.
Tim Livett, director of finance and business services, Virgin Atlantic, told Offshoring Times that the agreement is intended to improve service delivery while generating significant economies of scale.
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Shop Direct closures could lead to 1,500 job losses
Tuesday, February 02, 2010
Littlewoods, Kays, Great Universal and LX Direct owner Shop Direct could close three of its call centres after increasing numbers of customers turn to online shopping.
The emerging trend has resulted in the decline of call volumes within the centres leaving them with excess capacity.
The home shopping retailer answered 19 million calls in the past year in comparison to the 33 million calls made through Shop Direct’s call centres less than four years ago. Highlighting the magnitude of the shift towards customers choosing online retailing, the company is said to now expect more than 70 per cent of group sales to be made online by 2011.
“We recognise that this is a very difficult time for those teams affected by the proposed contact centre closures. We are working closely with the trade unions to help staff through the consultation process and support them in finding future employment,” said Mark Newton-Jones, chief executive.
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Indonesian outsourcing workers protest at low pay
Monday, February 01, 2010
Long-term outsourcing staff at PT Jakarta International Container Terminal (JICT), Indonesia’s largest container port, staged a protest this week having been denied permanent employee status.
Many of the workers, working in IT and administration , have worked there for up to 20 years, according to press reports. They are now being asked to sign contracts as outsourcing workers or to give up their employment at the port.
Those employed on a part-time outsourcing contract are reported to earn one tenth of a full-time wage; approximately £90 a month against £900 for a full-time worker.
“We have been working at the firm main division for 15 to 20 years but we have yet to become permanent employees,” Sutimanto, chairman of the JICT outsourcing worker association, said as quoted by Kompas.com.
“The labour law bans a company from outsourcing jobs in its main division.”
Approximately 500 workers protested in front of the main gate of the Tanjung Priok port, North Jakarta demanding permanent employee status.
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Obama aims to keep jobs in US
Barack Obama has announced plans to slash taxes for American firms to generate jobs in the US, it has been widely reported.
The move is aimed to counteract the outsourcing of jobs; however, analysts say this is likely to create more problems than it aims solve.
A survey conducted by Asia Sentinel in India has concluded that it will be difficult to impose tax penalties on US firms that outsource jobs.
John Daval, a New Delhi-based outsourcing consultant said: “This is a really complex issue as enormous job losses have taken place in the US and it is difficult to quantify the exact tax losses triggered by outsourcing.”
If the President does manage to impose tax breaks, it is believed this will hit American companies more than the Indian outsourcing industry.
However, the President’s stance has caused some concern for the Indian outsourcing industry as nearly 70 per cent of India’s US$40bn software is directed at the US market.
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HP predicts $8.6bn boost in Indian ITO market
Hewlett-Packard (HP) expects outsourcing and off shoring IT infrastructure to be an emerging growth engine for the global technology services industry, the company has announced.
The technology giant also estimates this remote infrastructure management market to exceed $8.6 billion in India by the end of 2010.
HP plans to increase its IT infrastructure outsourcing, business leveraging on the scale and labour arbitrage operations within India, said Ludger Rohlmann, HP VP and ITO of delivery operations.
“Today, there are increasingly more remote operation opportunities, with an apparent shift from work onsite to remote working. In some parts of ITO, up to 80 per cent of work can be done remotely,” said Rohlmann.
“We expect more work to come to India through the increasing pressure on our customers to reduce their costs and thus outsource to locations like India.”
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The sourcingfocus.com weekly news roundup
Friday, January 29, 2010
It has been all over the news this week and we are just as enthralled by it here at the sourcingfocus.com news room. The long-awaited end to the Sky and EDS dispute has been revealed, with Sky being awarded a substantial part of its £709 million lawsuit. The Round-Up read with interest an article on the Computing website which revealed that EDS’s key witness had bought his degree online. No surprise that this undermined the witness’s credibility, not to mention the credibility of the entire EDS case. Check out Tom Young’s article to see how this revelation played out in court.
For those of you who are more interested in the implications this case has on the outsourcing sector and the overall legal implications, look no further then sourcingfocus.com. The NOA chairman, Martyn Hart, has detailed what he believes will be the effect on the outsourcing industry in the Hart of Outsourcing and Alan Owens, partner at Morrison & Foerster outlines the ensuing legal implications in this week’s Guest Blog.
So apart from the end of this major battle, what else has been happening this week? Unlike Sky, McDonald’s is more than happy with the delivery of its outsourcing contract as it extended a long-term ITO contract with ACS.
Under the renewed agreement ACS will provide McDonald’s with a range of managed IT services including, desktop support, messaging services, data centre facilities management and network operations.
When it comes to popular publishing outsourcing destinations, India remained ahead of the game, it was revealed this week. Research carried out by Valuenotes Database revealed that 66 per cent of the 237 respondents selected the offshore giant. The US was second favourite followed by the Philippines, UK and China. With India and China continuously being pitted against each other it seems India is the Asian Tiger who prevailed in this particular race.
A UK company also revealed big news this week. AstraZeneca is to cut 8,000 jobs worldwide as it embarks on outsourcing more of its research and development. Great news for the industry, but not such good news for employees at the sites being closed in Loughborough and Cambridge.
Like most companies, AstraZeneca has stated that cost is a major motive for this move to outsource research and development.
That’s one point to China, and one point to India this week.
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AstraZeneca outsources R&D
AstraZeneca is to cut 8,000 jobs worldwide as it embarks on outsourcing more of its research and development.
Some of the work is due to be transferred to China in a move cut costs, it has been widely reported.
Shares in the company fell 140p to 2905p, wiping £2 billion from its market capitalisation and making it the biggest faller in the FTSE 100.
David Brennan, chief executive of the AstraZeneca said: “As the majority of our employees are in the UK, the US and Europe, you could expect more job cuts there
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Meggitt signs $50m engineering outsourcing contract with HCL
Thursday, January 28, 2010
Meggitt have signed an engineering management outsourcing contract with HCL. The contract is worth $50 million and will see HCL providing engineering services for the company’s global operations.
The contract was awarded after a multi-vendor review which ran for several months. Terry Twigger, Meggitt’s chief executive commented: “This strategic initiative will help us respond to the current economic environment while successfully positioning us for future growth.”
Meggitt is a UK headquartered company with a presence in North America, Europe and Asia. It specialises in extreme environment engineering
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British American Tobacco appoint Wipro in long-term contract
British American Tobacco has signed a multi-year outsourcing contract with Wipro Technologies to provide application support services.
Global IT service provider, Wipro Technologies will help the tobacco giant improve the effectiveness and efficiency of its application support services for its global business operations across 130 countries.
Under the contract, the two companies’ will partner up to provide an enterprise-wide global application support delivery model. This will consequently reduce the total cost of ownership and allow for more opportunities for value added services for the business users of British American Tobacco.
“The global capabilities of Wipro match very well with the needs of British American Tobacco as a Global Enterprise,” said Phil Colman, chief information officer, British American Tobacco.
“We believe this is the right way forward for us in terms of our IT strategy. We will be considerably more effective across our global enterprise. These changes will help us improve the application support service quality, facilitate better integration, enable enhanced knowledge sharing and, ultimately, help us become more competitive,” added Ben Fourie, Head of Global IT Services at British American Tobacco.
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India stays ahead in publishing race
Wednesday, January 27, 2010
India continues to be the most popular publishing sourcing destination, according to research carried out by Valuenotes Database.
With 66 per cent of the 237 respondents selecting the offshore giant, the destination pipped other publishing offshore locations to the post.
The US was second favourite followed by the Philippines, UK and China.
“An increasing cost of production and print, coupled with the global economic slowdown, has led to the industry struggling to address the increasing demand of digital content as opposed to print acting as the driving forces behind publishing outsourcing,” said Rakhi Vig, manager of product sales with Valuenotes Database.
“Whilst we have seen publishers trying a variety of approaches - going digital, reducing print publishing, and cutting costs, believes the industry is yet to find that one formula that addresses all its problems.”
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UK and Irish IT services to see slow growth this year
The UK and Irish IT services market will see a slow increase in growth this year, according to analysts Ovum. The countries can expect real-term growth of less than two per cent in 2010 and won’t return to pre-recessionary levels until at least 2011.
By the end of the forecast period in 2013 the UK and Irish IT services market is expected to grow to over £32 billion. However, less than a third of this will come from the public sector which is facing big cuts.
However, the IT services market has been through the worst effects of the recession, according to the analysts. But the recovery promises to be a slow ascent rather than a quick bounce-back.
Dr Alexander Simkin, co-author of the forecast, said: “Some IT services vendors are pinning their hopes on a marked uptick in the UK and Ireland in 2010. [But] They need to take a more realistic view: the market will remain challenging for at least 12 months with only modest growth overall during 2010.”
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Bharti to outsource telecoms in $1bn deal
Bharti Airtel has invited bids to outsource the management of its inter-city optic fibre cable network.
It has been reported that the deal is estimated to be worth up to $1bn over a five-year period.
“We will form a JV and have a stake in the company to which we award this contract,” Bharti’s chief executive officer, Manoj Kohli, told the Economic Times. Kohli also suggested that Bharti hopes to close the deal before the end of this fiscal.
Bharti operates optical fibre cable network of over 100,000 route kilometers. The company is also set to renew its multi-billion network-outsourcing contracts with Ericsson and Nokia Siemens this year.
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NASA signs $26m ITO contract with CIBER
Tuesday, January 26, 2010
Marshall Space Flight Center Information Technology Services, a department of the National Aeronautical and Space Administration (NASA), has signed a five-year IT outsourcing contract with CIBER.
Under the NASA Marshall Space Flight Center Information Technology Services contract, CIBER will provide over 60 personnel, generating revenues exceeding $26 million.
In delivering this contract CIBER will join Dynetics, an engineering, scientific and IT solutions provider, who is the prime contractor on this $355 million contract.
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IBM partners with Convergys for US Census BPO
IBM has signed a business process outsourcing (BPO) contract with Convergys to provide customer service and data accuracy services for the upcoming 2010 US census, in a project that will need more than 1,500 agents.
As part of the outsourcing deal, Convergys’ contact centre agents will call citizens who have submitted incomplete or inaccurate census questionnaires to improve data accuracy.
“For government funding to be done fairly, the Bureau of the Census needs to count everyone, count them once, and count them in the right location,” said Jim Boyce, Convergys President, Global Sales and Services.
The Bureau of the Census counts all United States residents every 10 years and will mail or deliver census questionnaires to each household in March 2010.
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McDonald’s extends long-term sourcing contract with ACS
Fast food giant McDonald’s has announced it will extend its existing relationship with IT provider, ACS for an additional five years.
Under the renewed agreement ACS will provide McDonald’s with a range of managed IT services including, desktop support, messaging services, data centre facilities management and network operations.
ACS will also supply McDonald’s with an end-to-end application performance monitoring service, enhancing the diagnosis of performance issues across the core technology stacks, support planning and infrastructure readiness.
“Sourcing has been a key component of our strategy to enable and empower our business. The extension of the ACS agreement is a sign of our further commitment to this strategy and to all the benefits we’ve received from our relationship with the ACS team. We look forward to the continued successes we have achieved with all our sourcing partners,” said Chris Millington, vice president and chief technology officer for McDonald’s.
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Public sector “could save 20 per cent”
Monday, January 25, 2010
Telecoms and sourcing projects are often not as efficient as they could be, according to a survey from Forrester Consulting.
The survey found staff shortcuts, short-sighted strategy, and lack of planning, multisourcing and resources to be the main pitfalls for the loss.
According to the survey, “the public sector could potentially save up to 20 per cent on each contract,“ if they were to change the way they approached outsourcing.
“As organisations plan their IT projects for 2010, CIOs need to change the way they approach, plan and source their telecoms in a disciplined and methodical way –dedicating the right skills and adequate time to projects. With attention to detail and best practice, the results will follow,” said Harry McDermott, CEO at telecommunications and network sourcing specialists Hudson & Yorke.
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BMO Capital Markets signs BPO contract with BancTec
BMO Capital Markets has signed a long-term BPO contract with BancTec to manage its invoices and cheques.
As part of the contract BMO Capital Market will direct invoices to BancTec’s facilities, where they are scanned, processed and archived for backup.
Additionally, paper cheques will be converted to electronic images to enable clients to manage late payments or missing customer account details more efficiently.
Steve Rogers, managing director and head of U.S. Global Treasury Management, at BMO Capital Markets said: “This strategic relationship with BancTec allows us to provide our clients full treasury management services and meet their working capital and cash flow needs”.
BMO’s investment and corporate banking arm, BMO Financial Group, will continue its retail remittance processing services with BancTec.
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The sourcingfocus.com weekly news roundup
Friday, January 22, 2010
There is something uniquely bonding in the experience of complaining about the cashier’s glum face at our local supermarket or the perverse grin on the bus drivers face as he watches you race to catch the bus, and promptly closes the door in your sweaty breathless face. Customer service - it is something we as customers feel very strongly about and quite rightly too. Is it too much to ask that you get a chirpy smile with your weekly shop or that bus drivers actually want you to catch the bus? It came as no surprise then, that when a report was released this week suggesting UK customers were not 100 per cent satisfied with the services offered by their credit card provider, it caught the sourcingfocus.com news team’s attention.
The report revealed that a huge two million UK customers were disatisfied with the customer service offered by companies such as American Express which had fallen in customer satisfaction charts. Halifax, Lloyds TSB and Natwest came bottom of the league tables, with only 64 per cent, 63 per cent and 62 per cent of shoppers respectively being satisfied. Why can’t they get it right? It seems all we ever hear about is retail banks and their downfalls (Not to mention their botched outsourcing deals).
The major UK banks may not have used outsourcing wisely in the past but their relatives across the pond seem to be utilising its advantages. US Universities are showing increased interest in outsourcing. A survey revealed that IT decision makers are facing challenges that include the need to effectively balance the provision of resources for their constituencies against their focus on strategic initiatives.
Apparently half of the survey respondents said they already outsource some IT services with the most common being those considered non-strategic, such as student email, laptop distribution, printer support and project management. Nearly all respondents said they thought outsourcing would be good for their institutions.
Sounds like good news for ITO, however, news released by Wipro would suggest otherwise. The technology giant disclosed planes to cut 85 jobs in Finland. It seems that the industry is still experiencing the aftershocks of the recent economic downturn. At the same time TPI claimed in its fourth-quarter and full-year 2009 data that the global outsourcing market has had its best performance in the last six quarters. Hopefully we will not be hearing about any further job losses, then.
To summarise this week, UK banks are still crap and outsourcing both on the up and the down at the same time. I think that says it all.
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BPO TeleTech to support Haiti relief
TeleTech is providing 42 of its service delivery centers and 5,000 employees from around the globe for a telethon to aid the victims of the Haiti disaster.
The outsourcing service provider is participating with a coalition of global media, entertainers and businesses who will be supporting the “Hope for Haiti Now: A Global Benefit for Earthquake Relief” telethon.
“Hope for Haiti Now” will air on Friday, January 22, 2010 at 8:00 p.m. ET/PT. The company is offering 42 of its existing service delivery centers located in the U.S., Canada, Mexico, Argentina, Australia, Philippines, South Africa, and Costa Rica to for the cause.
Kenneth Tuchman, TeleTech’s chairman and chief executive officer, commented: “I’m proud and honored to announce that TeleTech will play a role in this important fundraising event. It is highly rewarding to be able to repurpose our global infrastructure, technology, and human capital to aid others during a crisis and I am overwhelmed by our employees’ consistent drive to help others in a time of crisis and their generosity to give of their time and resources.”
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Global corporations losing billions annually through sourcing failure
Large global enterprises are losing £12 billion annually through failures in the sourcing and management of their telecom services.
The losses occur because 80 percent of all telecoms sourcing projects are inefficient, according to a joint study from Forrester Consulting and Hudson & Yorke.
Further findings from the report included:
o While CIOs are spending up to 20 per cent of IT budgets on telecom services, they are committing under one fifth of team time to managing their telecom strategy, sourcing and governance, resulting in financial loss
o While nearly three quarters of respondents (74 per cent) had considered their total cost of ownership in detail, only half that number felt they had thoroughly defined their telecoms sourcing strategy,
o At the end of a major sourcing project, one in five of respondents felt they were not satisfied that they had met the objectives set out in the original business case
Harry McDermott, CEO at Hudson & Yorke, comments, “CIOs are increasingly expected by their CEOs and CFOs to deliver more services and improved quality at less cost. There is clearly a significant discrepancy between what large organisations hope to achieve with a major telecoms sourcing project, and the reality of what is currently being delivered with limited experience and resources.”
The independent study surveyed 81 multinational corporations from 12 countries across a variety of industries.
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Technology giant, Wipro cuts 85 jobs in Finland
Wipro Technologies is in negotiations with employee representatives as the firm plans up to 85 job cuts across Finland.
Indian IT services exporter, Wipro currently provides the telecom segment with IT services including global firms such as Ericsson and Nokia.
In the past year, the industry sector has been proved somewhat challenging, although the company during its recent third quarter results has said that there has been some demand returning.
“After carefully considering all possible options, the company has decided to enter into a negotiation process with the employees given the challenging industry situation within telecom R&D,” said Wipro Technologies.
The company has however said, that operations in locations of Helsinki, Tampere, Turku and Seinajoki are all expected to continue with virtually no interrupted.
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Outsourcing market has best performance in six quarters
Thursday, January 21, 2010
TPI and Information Services Group have today released fourth-quarter and full-year 2009 data indicating the global outsourcing market has had its best performance in the last six quarters.
The 4Q09 Global TPI Index, measuring commercial outsourcing contracts was valued at greater than $25 million, showing the market’s total contract value at $24.7 billion, an increase of 47 per cent successively and 8 per cent year-over-year.
The main outsourcing sector driving the market forward is recognised as IT outsourcing (ITO), surging in Europe, the Middle East and Africa.
“As we anticipated, 2009 marked a low point in outsourcing because of the recession in the general economy,” whilst “the global market bottomed in the first half of the year it now shows signs of recovering slowly and steadily, with the outlook for building on its second-half momentum positive,” said Mark Mayo, partner and president, Global Operations, TPI.
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IBM acquires U.S. National Interest Security Company
IBM has paired up with IT and management consultancy firm the National Interest Security Company in a bid to expand the organisation’s capabilities.
IBM hope the acquisition will expand the company’s capabilities with federal, state and local government entities, particularly in the fast-growing areas of defense, healthcare, energy, logistics and security.
Andrew Maner, chief executive officer of NISC said: “NISC’s high-end, differentiated approach combined with IBM’s Analytics Center will help federal agencies improve current mission effectiveness and create new capabilities.”
The NISC is based in Virginia, America and specialises in the defense, healthcare, energy, logistics and security sectors.
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US Intelligence agency awards $27m security contract to CSC
A major US intelligence agency has awarded a cyber security contract to CSC, the US outsourcing giant.
Under the $27 million contract CSC will work to secure the agency against cyber attack.
The outsourcer will provide vulnerability analysis to identify potential computer and network threats and penetration testing to evaluate overall network security.
The ‘task order’ is for an initial one year but may be extended up to five depending on performance. The contract was awarded in Q4 last year
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RBS call centre closure leads to job losses
Wednesday, January 20, 2010
NatWest workers have learned the bank’s Theale, Reading based call centre is due to close in September this year leading to job losses.
Consultations with staff were an ongoing part of the process, said RBS spokesperson Linda Harper.
“However as a result of our relocation from the centre in Theale, 141 roles in our UK operations business will be made surplus,” said Harper.
“In 2009 we announced that we would be cutting 4,500 roles in the UK over the next two years in our business services division and that we would work through a process with staff at all affected locations as we determined the local impact of this,” she added.
The job cuts come as RBS decided not to renew its lease when it expires in September. RBI has told some staff of possible relocation opportunities to either its Swindon or Farnborough offices.
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Ericsson signs ITO contract with TCS
Ericsson has signed a five year IT outsourcing contract with Tata Consultancy Services (TCS).
TCS will deliver application maintenance and development services for Ericssons internal IT operations as one of two strategic partners for the company.
Amit Bajaj, director, Nordic region, TCS, reportedly explained that Nordic companies are increasingly looking at service providers to deliver IT services and business solutions.
The contract points to the ongoing trend of Indian headquartered IT companies delivering projects in the Nordic region.
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Post downturn there will be a rise in outsourced debt collections, says report
Tuesday, January 19, 2010
A recent survey has reported that businesses worldwide are more likely to increase their use of outsourced collection services to improve cash flow and increase liquidity. The survey revealed that Belgium and the Netherlands showed 44 per cent and 43 per cent increased use of outsourced collections services.
The survey was conducted by the ‘Global Collections Review’ and included over 3,500 companies across four continents by the credit management and collections specialist Atradius.
The Economic Times reported that companies will be outsourcing their collection work in order to recover business-to-business international and domestic trade debts.
The survey was conducted among 3,538 businesses across 20 countries including Austria, Belgium, Denmark, France, Italy, the Netherlands, Poland, Spain, Sweden, Switzerland, the United Kingdom, Australia, Canada, China, Hong Kong and the USA.
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US Universities increase interest in outsourcing
US Universities are showing increased interest in outsourcing. IT decision makers are looking to the discipline to help them meet important challenges and priority business initiatives, according to a survey from CDI IT Solutions.
According to the survey, the biggest challenge faced by higher education IT leaders is the need to effectively balance the provision of resources for their constituencies against their focus on strategic initiatives. Some other important challenges highlighted include: preparing for disaster recovery; the ability to testing systems; application development; security (threat of breaches) and IT staff retention.
“As their CIO counterparts in the private sector learned in past business cycles, IT leaders at colleges and universities are beginning to recognise the value of outsourcing services to stretch tight budgets while maintaining quality service delivery to faculty, students and administration,” comments Andy Cvitanov, president of CDI IT Solutions.
Half of the survey respondents said they already outsource some IT services with the most common being those considered non-strategic, such as student email, laptop distribution, printer support and project management. Nearly all respondents said they thought outsourcing would be good for their institutions.
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2million consumers left sour after credit card customer service
New data has suggested a huge two million UK customers are not 100 per cent satisfied with the services offered by their credit card provider.
uSwitch.com, Marks & Spencer and Tesco rose from third and fourth place respectively from last year to the top of the price customer satisfaction tables, with 89.4% of consumers saying they were content with service levels overall. Whilst American Express, which had taken the top slot in 2008 has dropped to third place.
Other traditional card providers, Halifax, Lloyds TSB and Natwest came bottom of the league tables, with only 64 per cent, 63 per cent and 62 per cent of shoppers respectively being satisfied.
Last year saw supermarkets over take in popularity polls, stealing the limelight from traditional financial institutions in the customer satisfaction stakes. Supported by the dissatisfaction found in the recent research this trend seems set to continue throughout 2010.
“It is disappointing that customer service is still letting the dedicated card companies down. With generous rewards such as loyalty points, gifts, air miles or money off your shopping bill, it’s easy to see why the supermarket credit cards are doing so well,” said Louise Bond, personal finance expert at uSwitch.com.
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Microsoft strikes five year BPO deal with arvato
Monday, January 18, 2010
Microsoft has paired up with media and communications services provider arvato in a five-year deal.
The agreement sees Microsoft consolidating operational activities for several key business lines previously handled by multiple suppliers with one vendor.
The provider will handle several operations including software licensing and distribution, partner reward schemes, day-to-day invoice processes, technology deployment, technical support and customer services.
“Moving from many to a single vendor with such extensive international reach will not only be more efficient, but also help ensure global consistency in the way we do business,” said Matt Rossmeissl, Microsoft Vice President Commercial Operations.
Matthias Mierisch, Head of arvato’s Global BPO Unit for Microsoft and CEO of arvato UK & Ireland, said: “We will now be focusing on ensuring Microsoft realises the true benefits from this latest substantial investment in arvato.”
arvato will support this business globally from their operations based in Dublin, Singapore, Reno (Nevada), Fargo (North Dakota), Manila and Buenos Aires.
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The sourcingfocus.com weekly news roundup
Friday, January 15, 2010
What a week Google has had. Putting its foot down on China’s demand to censor the search results on its Chinese service could see them pulling out of the country altogether. A multi-billion dollar business with ethics - who would have thought it?
Google were not the only company in the news this week who are being eulogised for their social awareness. It was revealed on Thursday that IBM has topped the Stonewall list of gay-friendly employers for the second time in four years.
Stonewall is a UK lesbian, gay and bisexual charity, and published its Top 100 Employers 2010 during the week. IBM has topped the list, being named the best place to work in the UK for lesbian, gay and bisexual people. It seems even outsourcers have a social conscience.
However, employees at Bosch may not be feeling as warmly about the outsourcing industry as the employees at IBM. On Friday, the German manufacturing company announced its plans to close a car plant in Wales and move the remaining production to an existing plant in Hungary, leading to significant job cuts.
The subsequent loss of 900 jobs in the UK is a result of an almost 50 per cent fall in demand for luxury vehicles. Looks like the sector can’t please all of the people, all of the time.
Also this week, in a total role reversal, Barclays has brought outsourced applications back in-house. The bank has decided it will not renew its £400m outsourcing deal with Accenture.
The move will see 230 out of the 900 technology staff who moved to Accenture when the deal was signed in 2004, return to Barclays. With the general consensus that outsourcing is on the up, this seems to be an interesting move by Barclays. Sourcingfocus.com will ensure you are kept updated on the progress.
Never a dull moment in the sourcing industry as this week of ups and downs demonstrates. But then, when does the course of business ever run smooth?
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Bosch to offshore car part plant to Hungary
German manufacturing company Bosch is set to close a car plant factory in Wales, moving its remaining production to a sister plant in Hungary in 2011, it has been widely reported.
The move, which is expected to lead to a loss of 900 jobs, had been triggered by a 45 per cent fall in demand for alternators for luxury vehicles, according to FT.com.
A spokesperson from Bosch said the decision to close the plant in Miskin, near Cardiff, was due to wider difficulties in the industry.
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