Industry news

  • 25 Jan 2016 12:00 AM | Anonymous

    Scottish cloud and data centre provider Brightsolid closed a new deal - worth £1m a year – with Aberdeen City Council to provide a managed data centre service.

    The council migrated its entire ICT estate to the private cloud in the first six weeks of the new contract framework. Willie Young, the Aberdeen City Council finance, policy and resources convenor, admitted the Council was impressed with the quality, flexibility and personalisation of the service.

    “We have found a partner with whom we can innovatively work as we digitally transform our council services while also reducing our operational costs”, he commented.

    Brightsolid CEO, Richard Higgs, said their intention was to “help the city become a centre of technical excellence”.

    The provision of disaster recovery services is also included within the new framework. The deal will last until May of 2017.

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    Related: Atos Origin to provide managed services for Aberdeen City Council

  • 25 Jan 2016 12:00 AM | Anonymous

    Clearsprings Group – the company contracted by the Home Office to run accommodation services for asylum seekers in Cardiff – has decided to drop its controversial policy of making refugee tenants wear red wristbands in order to claim the meals they’re entitled to.

    A number of those tenants claim that they have been singled out for abuse by local residents as a result of the policy. Jo Stevens, Labour MP for Cardiff Central, has confirmed that the practice will come to an end today, after speaking to the operations director at Clearsprings.

    Clearsprings has defended the policy, claiming it came into effect in the face of a dramatic increase in the number of asylum seekers it was housing: "Volumes of people in initial accommodation sites, including Cardiff [have] increased quickly. Clearsprings has taken steps, agreed with the Home Office, to increase capacity in line with this demand in the form of additional self-catering accommodation.

    "Those clients in the self-catering units receive a weekly allowance in the form of supermarket vouchers and those in full-board accommodation are issued with a coloured wristband that bears no other logo or text identifying its use or origin. Full-board clients are required to show their wristbands in order to receive meals in the restaurant."

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    Related: Airwave Solutions withdraws injunction blocking Home Office contract award

  • 22 Jan 2016 12:00 AM | Anonymous

    You don’t need me to tell you that two of the biggest technology trends in business right now are Robotic Process Automation and Artificial Intelligence. But if I said to you that they were Intelligent Automation and Cognitive Computing, or Service Delivery Automation and Autonomics, and that these were actually pretty much the same thing, then you might start to question me. I could even take it further and combine both of these into a super-trend of Cognitive Robotic Process Automation, at which point you would have given up all hope in me.

    But this is exactly what is happening in the world of technology marketing at the moment. Just when you thought the industry had finally settled on some common terms for something, somebody muddies the waters by inventing a new one. And not because it describes something fundamentally different, but just so that their offering or product sounds different from everyone else’s.

    Now, this obviously isn’t a new practice, but the danger now is that the technologies we are talking about really are game-changers, and the need for clarity is crucial. Buyers need to understand whether they are getting, for example, a genuine Robotic Process Automation capability or a macro-driven piece of software that has been rebadged as RPA. They need to understand whether the Artificial Intelligence software really does self-learn or whether it is some convoluted logic dressed up as AI. Knowing these things will make the difference between success and failure of the project, and whether that investment that you worked so hard to secure will actually deliver the benefits that were promised.

    So, here’s some pointers that will help you cut through the marketing hype and identify “real” RPA and “real” AI applications.

    Robotic Process Automation

    The term “robot” is useful here because the software replaces (or enhances) the work that a human being would normally do. Process automation has been around for a long while (even something like SAP can be described as process automation software), but the difference with RPA is the focus on the human tasks. RPA software’s real value is because it works at the “presentation layer” (the user interface) of the vast majority of different types of computer systems and can be trained to access and write to them relatively simply. This sort of “simple complexity” hasn’t been available before.

    It is important to remember that the RPA software robots are effectively dumb: they will do exactly what you have trained them to do, 100 per cent of the time. But there is no “intelligence” in them. So, if anyone talks about Intelligent Automation, or Cognitive Robotic Process Automation, then start putting on your cynic’s hat.

    Artificial Intelligence

    The opportunity for obfuscation with AI is enormous, and many people have openly taken that opportunity. The challenge comes because there is no single definition of AI - my favourite is that it is any technology that is 20 years from fruition. But if you think of AI capabilities in three different categories, then it should become somewhat clearer.

    Firstly, there are AI technologies that are great at capturing information. This could be done through Vision Recognition (e.g. recognising a face in a photo), Sound Recognition (e.g. transcribing words that someone is saying), Search (e.g. extracting data from unstructured or semi-structured documents) or Data Analysis (e.g. identifying clusters of behaviours in customer data). The first three of these require what is called Supervised Learning, i.e. they require large data sets to learn the necessary patterns, whereas the fourth uses Unsupervised Learning, which means that it can come up with the answers without you telling it what the question is. But all of these essentially turn (unstructured) data into information, and this is the most mature application of AI in business today.

    The second AI capability turns that information into something useful: it works out what is happening. This is done through Natural Language Processing (e.g. extracting the meaning from an email), Reasoning (e.g. how should I act based on the information given) or Prediction (e.g. predicting buying behaviours based on previous purchases). Some of these applications, such as Prediction, are more mature than others, but all of these can provide real value to a business.

    Finally there is the capability to understand why something is happening. This area of AI feeds off most of the others I have mentioned. This is the least advanced area of AI and is not yet relevant to business applications, but will obviously have a huge impact once it does.

    All AI applications will fit into one or more of the above categories. If what is being described to you feels like a bit of a round peg compared to my square holes, then you should start to question those capabilities. And if the talk is all about “neural networks” or “machine learning” (both of which are underlying AI technologies) then simply seek to understand what it does, rather than what it is.

    RPA and AI are two very different technologies and should be treated as such (if you remember one thing make it this: there is no such thing as Cognitive Robotic Process Automation). Each of these technologies do complement each other very well (for example with AI provided structured outputs from unstructured inputs, which can then be processed by RPA) which is why they can be deployed very effectively together. But, please don’t get fooled by the hyperbole of marketing speak that surrounds these - seek to understand or, if it’s still not clear enough for you, seek advice.

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    The NOA has launched the world's first RPA workshop and qualification, ideal for all of those looking to instigate RPA at their organisation.

  • 21 Jan 2016 12:00 AM | Anonymous

    Worcestershire County Council and the supplier firm Liberata signed a £5.2m seven-year contract.

    Liberata will introduce new technology solutions to local public bodies in order to supply human resources, health and financial services through a process that is expected to save more than £2.2m and affect 106 jobs over the seven year-period.

    The deal also includes maintenance, technology solution management and support, and will mean the creation of 25 new apprenticeship posts.

    The council’s member for transformation and commissioning, Marc Bayliss, said: “The commissioning of these services meets our aim to create a lower and more transparent cost of service while also ensuring our commitments to schools and other customers can continue to be delivered now and in the future”.

    The new process is due to start on the 1st of February 2016.

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    Related: HP to transform Worcestershire County Council ICT

  • 20 Jan 2016 12:00 AM | Anonymous

    Cognizant – the American service provider with over two-thirds of its employees based in India – gained more new business (or added more incremental revenue) in 2015 than Wipro, Tata Consultancy Services and Infosys combined.

    Cognizant achieved $12.41 billion in overall revenue for 2015, $2.15 billion of which was made up by incremental revenue achieved in the 2015 calendar year. Meanwhile, India’s three largest software firms only racked up $1.96 billion in new revenue between them ($1.18bn for TCS, $570 million for Infosys and $211.5 million for Wipro).

    Experts have claimed that, as an increasing number of outsourcing deals come to incorporate cloud computing and data analytics, this substantial gap between Cognizant and its home-grown Indian competitors will only grow larger in size.

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    Related: India affirmed as “last BRIC country standing” beating China’s growth for second year running

  • 20 Jan 2016 12:00 AM | Anonymous

    Norfolk County Council and Updata Infrastructure – part of Capita IT Enterprise Services - reached a £20m deal to enhance network services in council schools, buildings and libraries.

    The first stage of the framework includes a £10m contract to install and manage a wide area network (WAN) and local area networks (LAN), unified communications and mobile communications across the council. The contract will also include ten apprenticeships and two undergraduate work placement each year during the contract period.

    Norfolk County Council’s head of procurement, Al Collier, said: “This contract will reduce costs and enhance IT services for public sector staff and for schools, allowing them to deliver the best possible service to people in Norfolk”.

    “Other public sector organisations and local people may also take advantage of the frameworks”, he added.

    In addition, the deal will include the upgrade of a multi-channel contact centre, improved broadband connections for schools, enhanced internet filtering services and the latest educational technology.

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    Related: Serco secures £85 million Norfolk and Norwich University Hospital extension

  • 20 Jan 2016 12:00 AM | Anonymous

    Despite China’s economic deceleration, its outsourcing industry experienced very positive growth during the year of 2015.

    Shen Danyang, a spokesperson for the Ministry of Commerce said: “Chinese companies inked service outsourcing contracts worth $130.9 billion” - a rise of 21.5 per cent compared to 2014. “Nearly half of the offshore deals were related to information technology services”, he added.

    Contracts with businesses from the two major Chinese trade partners – the United States and the European Union – rose by 17.5 per cent and 17.6 per cent respectively, while contracts with Japanese businesses fell by 9.8 per cent.

    China is today the world’s second-largest service outsourcing providers after India.

    The Chinese government sees this sector as the new big vehicle to boost employment as well as the domestic economy.

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    Related: China’s stock market closes early on the first trading day of 2016

  • 19 Jan 2016 12:00 AM | Anonymous

    Cornwall Council announced yesterday that its contract with BT Cornwall has been formally terminated, after the latter decided against appealing the High Court’s decision to end the deal.

    BT Cornwall had lost an injunction back in December to prevent the council from ending the 10-year contract. The High Court granted Cornwall council the right to severe ties with the telecoms company, after BT reportedly failed to meet performance targets, one of which was to increase job levels.

    The deal saw BT Cornwall running ICT and back office services, and involved 270 employees dealing with HR services, ICT, despatch, printing and telecare.

    According to the council’s press release, “Work has been taking place to ensure that this process takes place as smoothly as possible and all services will be maintained. We are continuing to hold discussions with BT Cornwall over the payment of costs and the level of damages we will receive.”

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    Related: High Court allows Cornwall Council to terminate £160m BT contract

  • 18 Jan 2016 12:00 AM | Anonymous

    The Information Services Group (ISG) has published this past week the Outsourcing Index for Q4 of 2015 - a quarterly review of the latest sourcing industry data and trends.

    The report unveils a strong last quarter performance for the global outsourcing industry, which hit a four-year high total annual contract value (ACV) this quarter, in spite of a disappointing 2015 overall performance.

    The Index, which only accounts for outsourcing contracts worth $5m or more annually, shows that the global industry’s ACV for Q4 rose five percent to $7bn. The ISG attributes the positive result to the closing of nine megadeals valued at more than $100m since last September.

    The strong performance of the industry in the last months of 2015 was not enough to reverse a weak first semester. In spite of a two percent increase in the number of contracts signed, up to a record 1445, 2015 saw a decline in the total ACV of the industry of more than eight percent to $23.7bn.

    The ISG singled out the decline in the total value of ITO contracts by 12 percent or $2bn this past year as the leading cause for the year’s dismal performance. This decline is attributed to more and more companies moving their IT infrastructure to the cloud. The report also shows that apart from a handful of large deals, the trend is for contracts to be worth less and for an increase in the volume contracts.

    According to John Keppel, president of ISG, "The data this quarter and this year confirm more enterprises are sourcing than ever before, and they're paying less for those services, which encourages them to participate in the sourcing market even more".

    "They're buying flexibility with cost variability, utilizing smaller deals more than ever as they revamp their processes around cloud, digitalization and automation. Outsourcing continues to have a strong value proposition as we exit 2015 and enter 2016", he continues.

    It is not the first year that the global outsourcing ACV has deteriorated; the industry has seen a consistent yearly decline of ACV over the past decade - between 2012 and 2015 alone the average ACV declined by 20 percent. Average contract duration has also decreased in recent years; between 2012 and 2015 contract duration fell by 15 per cent, coming up to 3.5 years in 2015.

    Europe, the world’s largest outsourcing market, had a strong Q4 performance with ACV rising 17 percent to $3.9bn. However, similar to the global trend, ACV fell by eight percent to $11.7bn in 2015 overall after a dismal first semester performance.

    As for the UK, the industry’s ACV for the region fell by 19 percent to its lowest since 2009. Similar to the rest of the world, contract volume reached a new high.

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    Related: ISG Finds Global Outsourcing Market in Decline

  • 18 Jan 2016 12:00 AM | Anonymous

    The Department of Work and Pensions has proposed its “2020 Vision”, the intention of which is to deliver more innovative, cost-effective services to its customers, as well as develop excellent supplier and stakeholder relationships.

    In order to support this activity, the DWP will be holding a Market Engagement Event for Contact/Service Centre provision on 9th February 2016 where senior leaders from DWP will set out the 2020 Vision and define the transformation the organisation is undertaking. This will provide the opportunity for potential suppliers to feed back on the plans and suggest innovative solutions to work alongside DWP in the future to help meet departmental objectives.

    Attendees will also get the chance to interact with the DWP finance director general, DWP commercial director and several senior officials working across operational and corporate arms of the business including digital, security and business transformation teams.

    Although there is no specific procurement expected to follow from this event, the intention is to discuss ongoing engagement opportunities and meetings with potential suppliers at the event. The DWP currently manages four contact centre contracts, with an overall value of £81 million.

    What with further government cuts and austerity measures being proposed, the outsourcing requirements of the DWP are expected to increase from 2016 onward, with future sourcing activities to be informed by the outcomes of this market engagement event.

    Further information can be found here.

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