Industry news

  • 4 Nov 2015 12:00 AM | Anonymous

    Xchanging Plc has announced this week that Apollo Global Management LLC has pulled out from talks on its takeover.

    The insurance-focused outsourcing company has confirmed Apollo briefed them regarding their decision to no longer pursue the bid. Apollo’s withdrawal effectively puts Capita at the top of the race to acquire Xchanging - the outsourcing giant and the US-based private equity firm were the only contenders for the takeover.

    Last month, Xchanging informed it had settled with Capita on a recommended cash offer worth £412m.

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    Related: Xchanging board recommends shareholders accept Capita takeover bid

  • 4 Nov 2015 12:00 AM | Anonymous

    Serco has been fined £200,000 with costs of £220,000 by Inner London Crown Court for the death of 19-year old Woolwich Ferry deckhand Ben Woollacott.

    Woollacott died after being dragged from the ferry while the mooring ropes were being untied. Serco has been charged for failing to ensure the health and safety of its crew, but was cleared of failing to ensure the safe operation of the boat.

    MCA area operations manager Andrew Rudge commented: “This case serves as a reminder that owners and operators of ships should review their procedures and risk assessments regularly, ensure they are fit for purpose and are being used correctly by their employees.”

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    Related: Serco prison officer dies after Blackfriars attack

  • 4 Nov 2015 12:00 AM | Anonymous

    India is a fascinating country that, over the past 20 years, has developed into one of the world’s most dynamic economies. It has also become the centre of outsourcing and offshoring activities with organisations around the world, taking advantage of lower labour rates, skilled workers, the prevalence of English language skills and a developing infrastructure. Some of the world’s biggest outsourced service providers are Indian-based organisations such as Infosys, Wipro and HCL who provide services to organisations across the world, particularly to North American and European organisations.

    As a result of India’s success and growth, working with the people of India is an everyday occurrence for professionals all around the world. Project managers will need to engage with Indian technicians based in Hyderabad to progress the development of IT projects; supplier managers will be talking regularly to their Chennai-based vendors about the service levels being provided; senior managers and directors will be negotiating new service contracts with Indian service provider account managers and directors.

    Anyone that has experienced working and communicating with Indians will have recognised that – whilst of course not all Indians behave the same - there are some common behaviours and conventions. It is helpful to be able to both recognise these, so as to adapt one’s own behaviours in order to be more successful doing business in India.

    Relationships

    Around the world relationships are key to business success. This is never truer than in India. Business people are unlikely to progress far without paying particular attention to nurturing relationships. While in some parts of the world the transaction is the focus and relationships are secondary, in India the relationship is the primary focus. Indeed, you may find that Indian business people might be prepared to lose a lucrative business deal if they are not comfortable with the relationship aspect. Having said that, do not expect Indian business people to lack basic business acumen for this reason – the success of the Indian economy in recent years proves that to be a misconception.

    Bear in mind that the need to build trust is likely to require both persistence and patience. Networks will also be of particular importance in India - being personally recommended is of considerable value.

    Formality and Respect

    Along with the importance of relationships, non-Indians will observe a high level of formality and respect shown in the way Indians behave. They will usually be exceptionally friendly but there may be a sense of them being somewhat guarded. Initially they will be uncomfortable about discussing personal matters, preferring to keep conversations based on non-personal and non-contentious topics: items of business news (or perhaps cricket) can be safe ground (although take care not to assume that every Indian is a fanatical cricket fan!)

    Handshakes are the common method of greeting, particularly in the key business hubs (so don’t feel you need to use the “praying” greeting), although it is not unusual for the handshake to be less firm than that in the US and the UK. As in other parts of the world, it is often polite to be slower to offer to handshakes to the opposite sex as some may feel less comfortable. Smiling though is de riguer when meeting people of either sex!

    Saying "No"

    Respect may often be behind a common complaint that many have about Indian colleagues and contacts, namely their reluctance to say “No”. Many Indians will find it uncomfortable to say no - particularly to a client organisation - for fear of causing offence. The result can often be that an Indian manager will seem to agree with a request without in fact any realistic prospect of being able to meet it. Someone who is trying to get agreement to a proposal may not hear ‘no’ but rather will go through a series of non-committal meetings until they eventually just give up!

    The key here is to listen very carefully to what is being said and, when communicating face-to-face, then observe the body language. An Indian might use euphemisms for “no”. They may say “I will try” or “Possibly” for example. If you are working with Indian suppliers you should consider how you can help an Indian manager to decline a request, perhaps by exploring exactly how they will achieve the request and identifying issues which can then lead to suggesting a variation of the request.

    Hierachy

    It will not take long for anyone dealing with Indian organisations to recognise the importance of hierarchy. If you meet with an Indian team it is likely that you will find yourself talking only to the most senior person. Indeed, it is important when entering a meeting to ensure that you do greet the most senior person first, even if there are others there that you already know well.

    It is highly unlikely that anyone in the Indian team will disagree with his senior colleague. Senior, both in position and often in age, is still respected in India and a considerable degree of deference is shown to those who are most senior.

    This can make it more difficult to progress matters given that many in the team will feel unable to express views and opinions immediately. Often such discussions will need to take place “offline”. You may then find that a subsequent meeting is arranged which will appear to be covering very similar ground.

    Serial meetings may also occur in order to involve more people in the decision-making process. As matters progress it may be considered necessary to involve other people for a number of reasons – sometimes simply to ensure that appropriate people are involved in the process. Do keep in mind when dealing with Indian organisations that decisions are made at only the highest levels. It can often be a surprise to less hierarchical organisations that quite senior managers appear to delay decisions for no good reason. The truth is often that they need to get a sign-off from a more senior colleague but will not want to make that clear to the other party.

    Again – patience is the key!

    Your behaviour

    While it is helpful to consider particular common behaviours and conventions the key to successful cross-cultural engagement is to first appreciate one’s own cultural behaviours and conventions (our own cultural baggage if you will). It is surprising how little most of us are aware of our own personal attitudes and behaviours, and how they might impact on others.

    Having a simple list of “hints and tips” is helpful. If you are likely to be engaging a lot with India and its people, it is crucial to invest some time in developing your own skills and behaviours along with the ability to recognise the indicative behaviours of others.

    In this short article it is not possible to cover all of the aspects of dealing successfully with business in India. If you do want to explore the topic further the NOA has developed an Offshore Communication Skills workshop that you may find of interest. This workshop explores the challenges of working cross culturally and enables you to think about your own style and compare it to the cultural styles of others in the countries in which you are interested.

    If you are interested in attending the Offshore Communication Skills workshop and improving your foreign business skills, email admin@noa.co.uk or call 0207 292 8686.

  • 4 Nov 2015 12:00 AM | Anonymous

    When it comes to safeguarding data, third-party partners, such as business process outsourcers (BPOs), have emerged as de facto extensions of the modern enterprise organization.

    In today’s modern enterprise, intangible assets such as intellectual property, customer information and other critical data account for more than one-half of the organization’s value worldwide, according to Brand Finance, a consultancy specializing in the valuation of intangible assets.

    Enterprises are increasingly entrusting these assets to external partners, with 57 percent of those studied sharing critical consumer information with third parties or BPOs, according to research from the Ponemon Institute. Further, global IT outsourcing now amounts to a $287 billion market that’s growing at a compound annual rate of 6.5 percent, according to Gartner.

    However, businesses are encountering significant risks. Nearly two-thirds, in fact, have repeatedly experienced a breach of consumer data that had been outsourced to a vendor, according to the Ponemon study. In 56 percent of the cases, companies discovered the breach by accident, in contrast to just 27 percent of cases that were revealed by security/control procedures.

    Overall, 28 percent of threat incidents are attributed to third parties, up from 20 percent in 2010, according to PwC. Despite the trend, less than one-third of organizations require third parties to comply with their policies. Three-quarters have not developed a complete inventory of all third parties that handle personal data relating to employees and customers. Roughly one-half say they do not or are unsure whether they monitor the security and privacy practices of the vendors with which they share sensitive or confidential consumer information on an ongoing basis, Ponemon reports.

    Meanwhile, only 43 percent of vendors can demonstrate proof of reasonable security practices and a mere 21 percent continuously train their security teams. Vendors are also falling short on encryption, as only 43 percent of those studied encrypt sensitive data in motion and at rest. That could stand out as the most glaring of lapses, because data-centric encryption, particularly as it applies to the sharing of data and intellectual property, is proving to be business-critical.

    Encryption solutions exist that enable companies to maintain full administrative control over the files and data they share with their partners, outsources and network of stakeholders. Outsourcers need to leverage object-level, data-centric solutions that ensure shared data is secured whether on-premise or in the cloud, accessed by a desktop or mobile device. Indeed, BPO partners can gain a distinctive advantage over competitors by effectively deploying object-level encryption. In doing so, BPOs will convey a more substantial security posture by locking down vulnerable data at the cross-border and network level.

    To be clear: BPOs should not abandon traditional, perimeter-based tools such as firewalls, endpoint-protection products and anti-malware solutions, but their mindsets should transform from perimeter-centric to data-centric. Through object-level encryption, security follows the flow of data instead of the flow of the network. Thus, when hackers gain access to third-party systems (and they will), they’ll conclude that the “plunder” within – the data – is useless due to the advanced key management, identity oversight and policy implementation characteristics of object-level encryption.

    With proper key management, teams designate a unique key for every data file with on-device encryption. Then, identity oversight determines who receives the key, to verify that the users in question merit the access. The policy component of this three-layer “cake” imposes authoritative control over any and all data. Security teams and business leaders define access controls down to the smallest details – including what can be printed, what can be called up on “view only” and whether copy-paste restrictions apply. These teams and leaders can view file history and – if it’s necessary for data protection – immediately revoke availability.

    One simply has to read the most recent headlines about breaches to comprehend the urgency at hand. The 2013 Target hack, of course, stands out as a textbook example, as cyber criminals stole network-access credentials from a heating, air conditioning and refrigeration contractor hired by the mega-retailer.

    That’s why encryption must play the leading role in safeguarding the enterprise’s data. Adversaries, after all, aren’t plotting their next network attack in the interest of a sporting challenge. They want to grab the data inside of the network and exploit it to its maximum potential. When the strategies of outsourcers and their client organizations focus on object-level encryption, hackers discover that the data is as worthless to them as Monopoly money – paving the way for the partnership to endure in a productive, secured manner.

    Sources:

    - Brand Finance information

    - Ponemon study

    - PwC study

    - Gartner outsourcing forecast

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  • 3 Nov 2015 12:00 AM | Anonymous

    Transport for London (TFL) has chosen 12 suppliers to be included in its IT solutions framework. The group consists mostly of large organisations who have previously worked for the government, such as Sopra Steria, CSC, Atos, BAE, Capita, Deloitte and CGI.

    According to TfL CIO Steve Townsend, its “information management team undertook a major review of how IT services were delivered across the organisation with the aim of providing more effective services that add value to the operating businesses". The framework will provide the “project teams with a pre-approved list of suppliers who can bid for a particular category of work”.

    The framework is valued between £80m and £95m, and will last for two years. Services to be provided include business change, consultancy and advice, cyber security, design, implementation, project delivery and project management services.

    Only one of the chosen providers, Keytree, is considered an SME – Keytree’s achieved a turnover of £17.5m in 2014 – causing complains that the government has contradicted its 2011 pledge to conduct 25 per cent of its business with SMEs.

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    Related: Transport of London awards ICT contract to Computacenter

  • 3 Nov 2015 12:00 AM | Anonymous

    United Airlines has decided to suspend its outsourcing programme – which involved the outsourcing of baggage-handling, check-in services and other customer service jobs at some airports – until at least the end of 2016.

    This U-turn decision was made by new United CEO Oscar Munoz, who took over from old chief executive Jeff Simsek in September. The move has been described as a “charm offensive” in order to win over disgruntled employees and customers.

    The original outsourcing plans, made earlier in 2015, were intended to cut $1 billion in costs over the next two years, and involved the planned outsourcing of up to 2,000 jobs. These plans were preceded by previous attempts to outsource ground staff in 2013 and 2014 across almost 20 airports.

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    Related: United Strikes Deal with Machinists Union

  • 3 Nov 2015 12:00 AM | Anonymous

    EVRY, one of the largest IT companies operating in the Nordic region, has signed a £355m deal with nine Norwegian banks to supply banking and IT solutions. The nine banks are a part of a joint collaboration agreement, where Haugesund Sparebank will act as the manager of the contract.

    The IT giant is expected to deliver next-generation core banking and payment solutions, which take into consideration both the intensification of regulatory demands and the growing expectations on the part of consumers for a personal and interactive digital experience.

    The agreement is also expected to help the nine banks in achieving considerable savings in the five-year period covered by the contract. According to Knut Grinde Jacobsen, Chair of the Board of the DSS alliance, the agreement will “strengthen [their] position as competitive local banks in the regions where we operate in the years ahead”.

    EVRY is a part of the Banking Industry Architecture Network, which has established a model for Service Oriented Architecture with standardised service definitions, levels of detail and boundaries. This will ensure that the new solutions will be consistent with international requirements and best practice.

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    Related: Capgemini to provide Nationwide with enhanced IT services until 2020

  • 3 Nov 2015 12:00 AM | Anonymous

    With the ambitious aim of achieving almost £40m in savings over the next decade, four councils – Cheltenham Borough Council, West Oxfordshire District Council, Cotswold District Council and Forest of Dean District Council – have agreed to expand their shared services.

    The four councils already share HR, finance and payroll service. ICT, building control, legal and customer services have now also been added as part of the deal.

    The project is part of the “2020 Vision” programme target, which aims to achieve savings of £38m across the four districts, taking into account the support of a £3.8m grant from central government. Patrick Molyneux – the leader of Forest of Dean District Council – has publicly acknowledged that this initiative “makes a lot of sense”, since it enables the councils to provide efficient services while saving money over the coming years.

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    Related: Birmingham looks to replace citizen registration system

  • 2 Nov 2015 12:00 AM | Anonymous

    Polaris Consulting & Services Ltd is planning to offload its BPO business.

    This branch, which represents only 1 per cent of the company’s revenue but employs 15 per cent of its workers, is no longer seen as a core operation. It’s a seven year old venture with around 1,000 employees across India – Guragon, Hyderabad and Chennai – throughout its call centre facilities, which offer support to banks and telecom companies.

    Nevertheless, the BPO business failed to deliver the profits expected. Therefore, with minds set on the expansion of Polaris’ core business, the board of directors is now looking to sell.

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    Related: The Evolving Role of Rapid Automation in Business Process Outsourcing

  • 2 Nov 2015 12:00 AM | Anonymous

    Birmingham City Council (BCC) has launched a tender process in order to find a supplier to replace its online citizen registration system.

    The Council wants a secure system which will enable citizens “to create their own account and securely access a range of services across the council either within the portal or by providing seamless secure sign-on into online modules for services such as benefit applications”.

    The BCC will test supplier’s offers with their existing services in order to assess the possibilities and limitations of their systems. With this tender process, the Council is seeking solutions for a number of general and technical issues related to their existing online account solution.

    This is a great opportunity for major and minor service providers alike, enabling them to demonstrate the full potential of their modern digital services.

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    Related: Hampshire County Council seeks private cloud supplier in £75m deal

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