Industry news

Canada will be opening a new trade hub in London this week in an attempt to help Canadian firms crack new markets and gain investment. Export Development Canada (EDC) is a government export support service that will launch this week is a boost to expectations about the attractiveness of the UK’s, and particularly London’s, economy post Brexit. It was also revealed in research by London & Partners that London remains an attractive hub for tech companies as a survey of more than 200 US tech executives picked London as the top destination in Europe for building a tech business.

For weekly news updates, subscribe to our email newsletter.

The Shortlist for the NOA Awards ceremony has been released with the winners to be announced on Thursday 10th November 2016. This is the thirteenth annual award ceremony which recognises the achievements of the industry and celebrates the efforts of companies who have demonstrated best-practice in outsourcing. NOA CEO, Kerry Hallard said “This is without doubt the most competitive year ever in terms of submissions; the quality of case studies evidencing outsourcing excellence across aspects such as relationship and contract management, innovation, service delivery and collaboration has made the judging process an extremely challenging one”. The 18 categories cover all sectors of the outsourcing industry as the event promises to be a must-attend event.

For weekly news updates, subscribe to our email newsletter.

A survey by Lloyds bank of business confidence showed that small and medium sized enterprises expect a reduction in orders and are less likely to hire or increase capital spending. The overall business confidence index measured by the bank fell to a four year low, which could be further proof of the lasting effect of Brexit on the economy. The survey showed that the service industry was the most concerned about the vote, especially in areas that voted remain. In a hint of good news, the survey showed that the appointment of Mrs May as PM has rallied some confidence.

For weekly news updates, subscribe to our email newsletter.

Related news: UK Rebound Provides Little Optimism

Mitie Group Plc, Britain’s outsourced service provider, has issued a profit warning, citing a reduction in higher margin project volumes and reduced spending by client’s after the Brexit vote. Mitie Group pointed out the slowdown in its healthcare unit and its property management unit which has been damaged by social housing rent reductions that came into effect in April 2016 and pressures in local authority spending on maintenance and repair projects. Mitie Group has already indicated intentions to exit ‘unsustainable’ care contracts.

For weekly news updates, subscribe to our email newsletter.

Related news: Brexit jitters taking a toll on business, Mitie warns

The Guardian is reporting that the President of the Bundesbank, Germany’s central bank, Jens Weidmann, has warned that a hard Brexit will damage the global standing of the City of London as a financial hub. Mr Weidmann noted that the hard Brexit option would lead to banks being stripped of their ability to do business across the EU. Much of the issues Mr Weidmann discusses in his interview relate to passporting rights and how the removal of free movement will hurt the City’s popularity with financial industries.

To read more, click here.

For weekly news updates, subscribe to our email newsletter.

Haringey council and the outsourced care company Sevacare are being taken to court by 17 homecare workers who claim that they are not receiving minimum wage. All of the employees are on zero-hour contracts to care for elderly or disabled residents. Unison, a trade union that represents the workers noted that a 2014 National Audit Office report suggested over 200,000 health care workers could be in similar situations. A Sevacare spokesperson said: “While we cannot comment on the ongoing tribunal, we have always paid our staff an average hourly rate that is at least the national minimum wage for any hours they have been contracted to work.”

For weekly news updates, subscribe to our email newsletter.

Related news: Concentrix Loses HMRC Contract

After the Brexit vote, some car firms are moving senior roles out of the UK because of fears over access to the EU common market according to head-hunter DHR International. Many roles are being moved to eastern Europe, in particular Romania, Hungary and Bulgaria in research and development and procurement units. Big car firms like Renault and Daimler have already announced new sites in eastern Europe or have already established sites there. This comes not long after a paper from the Japanese government, warning Britain not to initiate a hard Brexit.

For weekly news updates, subscribe to our email newsletter.

At the opening of Oracle OpenWorld 2016, Oracle executive chairman and CTO Larry Ellison declared that the company would be “aggressively moving into infrastructure” offering to beat Amazon’s AWS services on both speed and price. In his speech, he talked about offering a more versatile platform, allowing customers to "lift and shift" anything they like. He also talked about reducing the costs associated with the services offered. With computer service firms facing up against each other over different services and sectors, Amazon will be loath to end up losing ground in a market where it feels comfortable.

For weekly news updates, subscribe to our email newsletter.

Related news: Business is Underusing the Cloud

In an interview with the BBC for its Tech Talent coverage, fund manager Neil Woodford has explained that the UK lacks major tech giants due to a lack of long term thinking and investing in the industry. Mr Woodford argues that the UK does not lack the skills for the industry, citing good universities and promising ideas but bemoans the lack of "scale-up cash" to help companies grow. It is also believed that tax rules in the UK encourage start-ups to sell early as oppose to try and grow.

For more information, click here.

For weekly news updates, subscribe to our email newsletter.

Microsoft has announced that it will be closing its Skype subsidiary office in London, potentially costing over 200 jobs. Microsoft has been on a global drive to reduce staff numbers as tech giants worldwide attempt to cut costs, positioning themselves to offer the best and cheapest service to consumers in the digital economy. Microsoft will be consolidating their London business in their new site in Paddington. "Microsoft will be entering into a consultation process and offer new opportunities, where possible," the company said.

For weekly news updates, subscribe to our email newsletter.

Related news: Oracle is Moving into Infrastructure to Challenge Amazon