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Gold all round for outsourcing in the Olympics

by Rupert Hodgson, sourcingfocus.com

The Olympics are coming, every day news articles relating to the 2012 Olympic appear in the media at an ever increasing rate as the games draw nearer. Many of these stories feature outsourcing companies that are either playing a dominant role in the running of the London Olympics or expect to gain increased business from the arrival of the Games.

With private security company G4S providing security, technology services provider Atos providing supporting systems, Acer providing technology hardware, Panasonic providing display equipment and many other companies in the by-lines including BT and cisco to name a few, the Olympic Games is an event that outsources almost its entire production and represent a huge business opportunity for those involved.

The Games have also impacted on outsourcing businesses that have not been contracted to the Games. The attention that the Olympic Games brings to the UK, and the need to capitalise commercially in order to offset the economic costs of the Games has massively increased the level of business going to outsourcing companies.

An example of the 2012 Olympics impacting on in-direct business includes the expansion of contact centres to meet the increased demand.  A contract centre operated by Journeycall based in Scotland announced that it was hiring new staff in order to meet massive demand on its services from clients in the transportation industry including rail and bus. Journerycall MD, Trisha Pirie, said “We’re gearing up for an exceptionally busy few months when many of our rail and bus clients may experience unprecedented demand both before, during and after the Olympics and Paralympics events.”

The public sector has offered up an increasing number of contracts for tender in preparation for a global focus on the UK during the 2012 Games. Telecommunications projects including Underground station wireless access and rolling out superfast broadband in rural areas are just some of the areas that the government have focused on in preparation for the Games.

The sale of the task in hand has seen huge deployments of staff and resources. Acer has supplied over 12,000 PCs, 900 servers and more than 1,000 notebooks to the Olympic organising committee.  A total of 3,500 staff will be employed by the IT suppliers in order to meet service requirements. 

G4S is in the process of hiring 10,000 workers to provide security over the Olympics as part of £200 million contract to train and evaluate security staff.  The Olympic contract is expected to bolster the FTSE 100 Company which has seen growth revenues of 6.7 percent in the first quarter of 2012. A G4S spokesman commented that: “based on recent contract awards, outsourcing trends and the group’s bid pipeline, the organic growth rate is expected to continue to improve during 2012.”

The Games has proven to be unique opportunity for Outsourcing companies in gaining business and winning large contracts that extend many years beyond the summer of 2012.


 

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