Industry news

According to ComputerWeekly.com, many IT projects at the Ministry of Defence are on hold after IT contractors walked out over a dispute in their tax status. The UK Hydrographic Office (UKHO), responsible for the collection and supply of hydrographic and geospatial data to the Royal Navy has very limited IT staff after contractors walked out. The dispute is centred on whether contractors are eligible to be taxed under controversial rules known as IR35. The Association of Independent Professionals and the Self Employed (IPSE), which represents around 26,000 public sector off-payroll workers, is known to have written to the UKHO in June about the issue.

Read more here.

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Related news: MOD Looking to Secure Laser Deal

The Pound continued a downward trend last night, slipping to $1.21 in US trading. Worries about hard Brexit led to the four-day rout of the pound on global markets as traders worried about the general management of the UK economy in the approach to Brexit negotiations. However, some good news emerged this morning as the pound rallied on news British MP’s will be allowed some debate on the Brexit process. The pound will continue to remain volatile in the short to medium term as it tries to find natural level.

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Related news: Brexit News Round-Up

According to a report by insolvency firm Begbies Traynor, nearly 100,000 businesses have been pushed to financial distress by the introduction of the national living wage. The number of firms struggling financially has increased 23% since the living wage was introduced six months ago with almost a third of struggling firms being retailers. Retailers are trying to find ways to adapt to the new laws by increasing prices and reducing profits and staff benefits.

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Transport for London has awarded Outdoor Plus a £17.6 million contract to bring digital advertising to road underpasses around London according to City A.M. The competitive tender was released last May and includes screens at six locations the A40 in Ealing and A3 Kingston with plans for a further three sites. Graeme Craig, TfL's director of commercial development, said: "Expanding our work with Outdoor Plus will provide tailored, dynamic advertising at nine locations across the capital”. The TfL advertising estate is a major player in the domestic market making up 20 per cent of all out-of-home advertising in the UK.

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Outsourcing group Mitie have named Phil Bentley as its new chief executive as Ruby McGregor-Smith announces she will be standing down after nine years. Mitie recently released a profit warning blaming Brexit for a fall in contract generation. Whilst some analysts are concerned that the announcement now will cause uncertainty at a challenging time, Mr Bentley has plenty of experience having formerly held the positions of chief executive with British Gas and Cable & Wireless.

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Related news: Mitie Group Plc Offers Bleak News to the Market

French President, Francois Hollande, has warned Britain that it will not get its own way in the coming negotiations over Brexit. Last week saw the pound plunge after it became clearer that a ‘Hard Brexit’ (the process by which Britain leaves the tariff free union so as to avoid open immigration and EU laws) was more likely after Mrs May, the Prime Minister, gave hints of Brexit plans at the conservative conference. It is likely that Brussels will set a tough stance against the UK, although many continental elections could see the landscape change as negotiations commence.

Good news for Mr Fox, Saudi Arabia and the Gulf states are looking to forge closer ties with the UK post Brexit according to City A.M. Sadly, thanks to EU treaty, any trade deals cannot be negotiated prior to leaving the Union so it could be years before any deal gets organised, and worse, according to the Economist, some in Brussels are considering legal action if the UK gets too close to any deals.

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Related news: The Steady Slide of the Pound

In an interview with the BBC, Yves Bigot, director-general of France’s TV5 explained what happened when the TV network was attacked by a powerful malicious software in April 2015. It’s believed that the hackers had done some reconnaissance on the target months before the official suggesting how sophisticated cyber-criminals have become. Increasingly, cyber-attacks have focused less on information theft and more on physical damage, especially in high profile cases, all suggesting the importance of improved cyber security.

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In a move to improve best practice and standards throughout an increasingly globalised sourcing market, the National Outsourcing Association (NOA) has rebranded to the Global Sourcing Association (GSA). The move reflects how the industry has changed, with increasing focus being placed on automation, shared services and other aspects of sourcing rather than just outsourcing. As home to the Global Sourcing Standard, the GSA will aim to share and serve best practice across the world. The new brand was launched in the presence of the President of Bulgaria at their successful European Leadership Summit last week in Sofia.

See the new site here.

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Related news: GSA Award Winners Announced

The Pound has been continuing its slide against the dollar and the Euro, going as low as $1.2253 on the morning of the 7th October. The slide of the pound has accelerated since the Prime Minister, Theresa May, indicated that a hard Brexit, where the UK leaves the single market completely, is a likely option if free movement is not curtailed. The hope from the government is that the falling pound will boost UK exports but worryingly, the UK’s trade deficit widened in August with exports only growing by £100 million pounds from July. The UK has a high propensity to import, meaning that the UK has a large trade deficit which will only grow with a weak pound.

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Related news: Easyjet Hit By Slump in Pound

Last night, the GSA (Global sourcing Association) hosted the European Awards in Sofia, Bulgaria. A celebration of the sourcing industry, the awards ceremony was attended by more than 200 industry leaders from Europe, United Kingdom, North America and Asia. Massive congratulations to the winners of awards and the nominees for their fantastic contribution to the sourcing industry. To read more and see a full list of the winners, click here.

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Related news: New GSA A-List Released