Industry news

  • 15 Jun 2015 12:00 AM | Anonymous

    There’s been little update regarding the potential merger between Genpact and Syntel since late May, when rumours in the news first started circulating.

    Speculation was sparked by Genpact’s principal shareholder Bain Capital evaluating the acquisition of Syntel, shortly after Genpact lost out to Capgemini in the acquisition of IGATE.

    Many think that the purchase of Syntel would be an excellent strategic move for Genpact. Everest Group CEO Peter Bendor-Samuel commented: "Genpact needs to add an IT capability if they are going to successfully play in the transformation market place.

    “[IT Services firm] Headstrong is not big enough or diverse enough to do the trick. It appears that Genpact finished second in the IGATE sweepstakes.

    “With Bain Capital owning a large stake and being on their board, they are being pushed to be aggressive in growth, both organic and inorganic. An IT firm such as Syntel would be accretive to earnings as well as position them well in the changing market place.”

    As of yet, no spokesperson from Genpact, Syntel or Bain Capital has chosen to comment on the market speculation.

    Watch this space for further news regarding this story.

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    Related: Genpact Takes Steps to Acquire Syntel

  • 12 Jun 2015 12:00 AM | Anonymous

    The role of procurement within organisations is constantly evolving, as demonstrated by the ProcureCon Indirect 2015 Benchmarking report, produced in association with ProcureCon knowledge partner Ariba.

    The report’s findings include:

    • 57 per cent spend of respondents manage in excess of 500 million euros

    • 46 per cent say value delivery is most important to their business

    • IT realted services was identified as the biggest area for spend

    These findings demonstrate that “the role of procurement within organisations is constantly evolving and is no longer just seen as a cost saving function, but pivotal to influencing strategic decisions at a board level.”

    You can download the entire report from the ProcureCon Indirect website.

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    Related: Government Clamps Down on NHS Procurement, Consultant and Agency Spending

  • 11 Jun 2015 12:00 AM | Anonymous

    Multination BPO and tech services company Genpact has been named by analyst firm Everest Group as a “Leader” in banking BPO.

    Out of the 23 firms evaluated, Genpact was one of only two organisations to receive the designation. Market success, scale, scope, technology and delivery footprint were all taken into account during the evaluation.

    Genpact was recently tipped to acquire Syntel by the Times of India, in a deal that would theoretically add $911 million to Genpact’s current $2.27 billion in annual sales.

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    Related: Genpact Takes Steps to Acquire Syntel

  • 11 Jun 2015 12:00 AM | Anonymous

    At a meeting of the London Assembly budget and performance committee, members and guests were invited to congregate and discuss whether the Met should opt to outsource more of its back office services.

    Metropolitan Police Commissioner Sir Bernard Hogan Howe has called for savings of £800 million to be found by 2020. The force has already decided to outsource HR, finance and procurement, but is now also considering whether to outsource command and control, and transport services.

    A number of speakers were called upon to share their points of view. Kerry Hallard, CEO of the National Outsourcing Association, used Cleveland’s police force as an example of how public sector outsourcing can be done correctly:

    “Cleveland Police outsourced its command and control centre – and its overall objective was to take 40 officers from behind their desks and put them back on the street. It wasn’t just about how quickly it could get the phone answered or about money. It’s about the softer things as well.”

    John Tizard, former director of the Centre for Public Service Partnerships added: “The first thing to do is to know exactly what things are currently costing, what providers would be able to deliver and what you would expect.

    “You need to be absolutely clear about what you need to achieve from outsourcing – quality, resilience and price.”

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    Related: Metropolitan Police Outsources 700 IT Roles to Save $800m

  • 10 Jun 2015 12:00 AM | Anonymous

    Rumours have emerged that Wipro is considering the acquisition of UK-based back office service provider Equiniti in a deal valued at well over £1 billion.

    Equiniti is owned by private equity firm Advent International and currently employs roughly 3,000 people. The story was broken by Sky News on Monday 9th June 2015, in a report claiming that Wipro will have to compete with “a clutch of prospective bidders.”

    The two companies have revealed nothing - when asked for a statement, a spokesperson from Wipro responded: “We don’t comment on market speculation.”

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    Related: Wipro Introduces Wage Hikes to Stay in Line with Infosys and TCS

  • 10 Jun 2015 12:00 AM | Anonymous

    Capgemini has announced that it will be launching a 500 million euro ($563.60 million) capital increase in order to fund its acquisition of IGATE.

    Seven million new shares will be issued up, representing roughly 4.2 per cent of Capgemini’s capital, which will be financed by surplus cash and an equity portion.

    A statement issued by Capgemini said: "The capital increase launched today ... aims primarily at early refinancing part of the $3.8 billion bridge loan implemented in the context of the IGATE acquisition, which is still expected to close in the second semester 2015.”

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    Related: Capgemini Acquires IGATE: Hear from the CEOs

  • 9 Jun 2015 12:00 AM | Anonymous

    NHS Shared Business Services (NHS SBS) has announced the acquisition of McKesson Shared Services for an undisclosed sum.

    NHS SBS is a 50/50 joint venture between the Department of Health and French service provider Sopra Steria. McKesson Shared Services is the outsourced HR, Payroll and Pensions arm of McKesson UK.

    The NHS claims that this acquisition will enable NHS SBS to extend its employment services to support the NHS centrally.

    David Morris, NHS SBS managing director said: “This strategic acquisition complements our existing service provision particularly as MSS mirrors our own approach of working closely in partnership with clients to help them achieve greater efficiency rather than the function being merely a commodity transaction.

    “In the face of immense budgetary pressures and tight resources, it is vital that NHS back office functions such as recovering overpayments, processing the monthly payroll run or processing expenses payments are carried out smoothly and accurately.

    “We have already proven our capabilities in this respect and now with this acquisition we can broaden the support we provide across the NHS that can ultimately free-up more funds and resource for frontline care.”

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    Related: NHS, Serco and Teleperformance among NOA Professional Awards Winners

  • 8 Jun 2015 12:00 AM | Anonymous

    HMRC has issued a £20 million tender for consultants to advise it on how to shift away from its Aspire outsourcing arrangement with Capgemini and Fujitsu, which is due to come to an end in 2017.

    The government department plans to contract its future IT work out to over 400 smaller IT service providers, with no single supplier receiving a contract worth more than £100 million.

    The news was revealed as the tender went out in a recent issue of the Financial Times.

    Claims have been made that HMRC’s current approach towards IT has “stifled innovation and flexibility”; it is hoped that this new approach will help HMRC gain more of its own expertise, as many suspect that the department is currently solely reliant on the knowledge of its service providers.

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    Related: Government Clamps Down on NHS Procurement, Consultant and Agency Spending

  • 8 Jun 2015 12:00 AM | Anonymous

    Recently Sourcingfocus noted that Egypt is revitalising its aim to contend as a top destination for outsourcing. Now Daily News Egypt has reported that “a spate of new agreements with a number of large investors” has given Egypt’s ITO potential a further boost.

    Multinational companies such as IBM, HSBC, Procter & Gamble, Nestlé, Teleperformance and many more have signed agreements to extend their partnerships with the Egyptian government’s Information Technology Industry Development Agency (ITIDA).

    “Egypt can become a multilingual hub in the region for BPO. This is what many international companies are looking for, but the industry has not been fully exploiting this opportunity,” said Giorgio Modesti, CEO of Teleperformance Egypt.

    Nevertheless, a report by Everest Group has confirmed that Egypt’s offshore global services industry is growing at 7.5% annually as a result of the country’s renewed political stability.

    Further reports on Egypt’s outsourcing potential can be found via “Offshore Outsourcing: Egypt is back On”, a blog post on the National Outsourcing Association’s website.

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    Related: Egypt Revitalises Aim to Contend as Top Outsourcing Destination

  • 8 Jun 2015 12:00 AM | Anonymous

    Accenture has signed a multi-million dollar contract with Etihad Airways, confirming that Accenture will support the airline with the implementation of its business transformation programme to improve efficiency, productivity and growth.

    Accenture will also provide strategy and management consulting services in departments such as HR, finance, and procurement and supply management. The company will be working alongside Etihad’s staff and its existing airline technology partner SAP.

    Etihad’s Chief Information and Technology Officer, Robert Webb, commented: “To sustain Etihad Airways’ current and future growth, we need to achieve operational and organisational efficiency by creating an integrated approach to business processes, underpinned by a scalable, common technology platform.

    “We believe that working with world-class business transformation and technology companies like Accenture and SAP will help us realise this goal and prepare our business for years to come with an increased focus on the guest.”

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    Related: Accenture Reveals Where High Performers and Typical Performers in BPO Differ

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