Industry news

The UK TV industry is at risk of losing around £1billion to online giants if they move into the industry. A new report from OC&C's, suggests that if major online aggregators, such as Amazon, Facebook and Google were to take 10% of the market for TV, legacy firms would be at risk of losing profit margins. If the behemoths of the internet were to generate content, the size of revenue lost would increase as marketing and control distribution would be handed to the major internet firms. The broadcast industry is facing some tough questions as this wave of competition closes in, such as the possibility of syndication and the notion of becoming their own digital platform.

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UK councils are struggling to prepare for the coming introduction of GDPR which could leave them vulnerable in areas such as financial, personnel and process requirements. From May 2018, any organisation holding data on EU citizens must be able to clear that data on request as part of the 'Right to be Forgotten', this includes local councils as well as most private businesses. GDPR is designed to give the customer control over their data and may lead to an overhaul in the way councils store and use the data it collects. In another startling move, it was found that with only nine months until GDPR comes into effect, nearly a quarter of firms are yet to hire a data protection officer (DPO).

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Fast-food chain McDonald’s has chosen Capgemini as its global supplier to support the use of digital technology for its customers. McDonald's is keen to utilise disruptive technology and place new and innovative solutions, front and centre in its customer approach so as to not lose ground on competitors and make the most of its economies of scale. The agreement will see Capgemini open a support centre for McDonald’s in Chicago, showcasing its applications and offering jobs to local people, which will keep Mr Trump onside by giving the American worker a prominent place in the corporate strategy.

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Multi-award-winning digital marketing agency in Sri Lanka, zMessenger, recently expanded their services in the region by entering into a partnership with Bangladesh-based multinational technology company, SSD-Tech. The partnership agreement was instigated with zMessenger’s vision towards expanding to the region and ideally, Bangladesh had come on top. The partnership was confirmed through an agreement which was signed between the two companies at the zMessenger Head Office in Colombo 02. zMessenger brings innovation to business through technologies, data, creativity and aims to provide integrated solutions delivering exceptional customer experiences that are digitally led, data driven and multi-channel. Systems Solutions & Development Technologies Limited (SSD-Tech) is a USD $65 mn company and acquires experience in providing solutions to clients ranging from for telecommunication operators, financial institutions and large enterprises.

More news on Sri Lanka from sourcingfocus: SLASSCOM and ICT Norway to Boost Sri Lanka’s IT Sector, Asian Development Bank Supports Sri Lanka with New Funds

The bust up at the top of Infosys has come at the worst possible time for the IT outsourcing giant as pressure mounts for a serious change in the business offerings of Indian IT firms. After the resignation of Mr Sikka, following constant harassment from one of the firm's founders, Mr Murthy, questions about the future of Infosys are being raised. Pressure was already mounting on Indian IT outsourcing firms as procurement directors look to nearshoring and in-house IT providers as the cost advantage of India has eroded away. Infosys, like other firms such as Wipro and TCS, are looking to invest in more innovative offerings to clients in an attempt to move away from basic offerings, however the recent management problems may damage Infosys' mainframe-maintenance contracts which act as the firms bulwark in terms of earnings. Infosys, and other Indian firms need to diversify away from the reverence it holds for company founders so as to maintain confidence in their business structure, otherwise their transformation will be short lived.

More from sourcingfocus on Infosys.

The FCA are investigating outsourcing firm Mitie in connection with a profit warning issued last September. Mitie is being investigated on the content and timing of a profit warning issued last year and is "fully co-operating" with the financial regulator. It is more bad news for Mitie who are struggling with the uncertain climate around Brexit and faces another investigation into Deloitte's auditing of Mitie's accounts for the years ending 31 March 2015 and 2016. Mitie employs over 50,000 people in the UK for major clients including the NHS.

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The Philippine BPO sector is not worried about the protectionist rhetoric of foreign markets according to Convergys Asia Pacific president. Despite threats to reduce outsourcing from the likes of President Trump, businesses continue to outsource offshore in the Philippines, so the protectionist environment really has not had the major negative impact on business as expected. Although some clients are moving operations back to the United States, new clients are filling the gaps keeping the business environment strong.

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The Sri Lanka Association of Software and Service Companies together with ICT Norway kicked off a fresh initiative to empower start-ups in Sri Lanka. SLASSCOM and ICT Norway have come together to offer Sri Lankan start-ups the opportunity to take part in the Oslo Innovation Week. Start-ups across Sri Lanka will be given an opportunity at a pitching event organised by both the Sri Lankan and the Norwegian bodies on 30th August, 2017. The start-ups with the most unique and innovative pitches will be shortlisted and the top three winning companies will be sponsored by ICT Norway to take part in the five-day Oslo Innovation Week in Norway from 25th to 29th September, 2017. The tie up between SLASSCOM and ICT Norway to strengthen Sri Lanka’s ICT sector, is also seen as an effort to further enhance the bilateral relationship between the two countries.

More news about Sri Lanka: Asian Development Bank Supports Sri Lanka with New Funds, Sri Lankan Central Bank to Promote Innovation

A stronger Euro is, thanks to a stronger economic outlook in the Eurozone could lead to parity with the UK Pound. The two currencies are coming closer as the economies of both diverge, meanwhile the US Fed is less likely to raise rates after the events in Texas this week leading to greater strength in the Euro. A stronger European economy is bad for Brexit as negotiations look better for the continental negotiators.

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The Asian Development Bank (ADB) has earmarked up to $ 5 billion to work on a new country partnership strategy (CPS) for 2018-2022, with the Government to address policy reforms and growth-oriented infrastructure as well as strengthen drivers of growth through sustainable, inclusive and environmentally friendly solutions to help Sri Lanka’s transition to upper middle income country status. Under the new five-year CPS, ADB is committing around $ 800 million-$ 1 billion per year, while technical assistance is expected to amount to about $ 8 million a year. In addition, ADB will also increase its private sector operations by expanding into non-finance sectors.

Read more news about Sri Lanka: Sri Lankan Central Bank to Promote Innovation