DOING BUSINESS BETTER. TOGETHER

The sourcingfocus.com weekly news roundup

26 Feb 2010 12:00 AM | Anonymous

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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