Industry news

  • 16 Mar 2015 12:00 AM | Anonymous

    Davide Cervellin, Head of EU Analytics at eBay, has said to Sourcingfocus that outsourcing data analytics to third party specialists can be a good move for companies looking to speed up their processes.

    Cervellin had previously been giving a talk on how to make your organisation data-centric. A large portion of his talk emphasised the importance of data analytics to the financial side of any business. He also claimed that the modern Chief Financial Officer (CFO) needs to have a good understanding of technology and data - Cervellin himself reports directly to eBay CFO Robert H. Swan.

    In a short chat after the talk, a Sourcingfocus representative asked Davide Cervellin whether outsourcing analytics is a good idea for companies. He responded that there are clear benefits to outsourcing anayltics, such as speeding up the process and attaining results more quickly, but that companies also need to approach outsourcing analytics with caution.

    'It can be a good idea but can also be risky.' he said, 'you need a very strong contract in place with your [supplier] to protect your data.'

    So outsourcing analytics is best left to smaller companies, while large companies are best off keeping those processes in-house?

    'Not necessarily. The thing is, regardless of the size of your company, outsourcing analytics can speed things up massively.'

    To a company the size of eBay, data is one of the most valuable resources available, hence why it has to be protected so assiduously. EBay itself suffered a major data breach last year, resulting in all users having to change their passwords.

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    Read this next: US Healthcare Companies Embrace Non-Traditional BPO

  • 16 Mar 2015 12:00 AM | Anonymous

    Copeland Borough Council is faced with growing pressure from staff unions following the authority’s decision to outsource services to private sector providers.

    Dan Gow, regional organiser of the GMB trade union, claims that “History has shown us that privatisation will clearly have a huge impact on employees terms and conditions whilst private employers seek to increase profit margins from their contracts”.

    Three trade unions are calling for a vote of no confidence in Copeland Borough Council’s leadership structure, as well as a series of public meetings and debates.

    Copeland Borough Council is facing an enforced budget cut of £1.48m in 2015/16.

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    Read this next: Protests at Copeland Borough Council Arise Over Outsourcing/Privatisation Confusion

  • 16 Mar 2015 12:00 AM | Anonymous

    Saturday saw luminaries ranging from David Cameron to Bollywood superstar Amitabh Bachan gather to unveil a statue of Mahatma Gandhi in Parliament Square, marking 100 years since Gandhi left South Africa for India to begin his independence struggle.

    Today it has emerged that Indian ITO provider Infosys contributed £250 000 to the metalwork figure, the highest donation so far. Earlier this year, the firm’s cofounder N R Narayana Murthy donated £200 000 for the statue, amongst a host of contributions from fellow Indian business leaders.

    Continuing Gandhi’s philosophy of mutually beneficial Anglo-Indian relations, Infosys - headquartered in London - employ 3000 people in the Britain, earning almost $1 billion in revenue from business within the UK.

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    Read this next: Infosys Opens Major BPO Base in Puerto Rico

  • 13 Mar 2015 12:00 AM | Anonymous

    Yesterday, Serco announced that it intends to sell its BPO operations. This news is hardly a surprise after Serco Group's poor performance in 2014, for which the company has announced operating losses of £1.3 billion.

    Serco's BPO portfolio includes offshore operations Intelenet and Infovision, based in Mumbai and Delhi respectively, and Serco Listening Company Ltd, a call centre business that the company acquired in 2011.

    The group has initiated a rights issue in order to raise £555 million - Serco desperately needs to reduce its current state of debt. The sale of Serco's BPO businesses will begin after 17th April when the rights issue closes.

    'The sale of the BPO portfolio has two distinct disposal transactions, with a view to maximising the enterprise valuation.

    'The first transaction is in respect of the majority of Serco’s private sector BPO operations, including the businesses acquired through the acquisition by Serco of Intelenet in 2011 and Infovision in 2008, and selected additional delivery locations in the United Kingdom, Poland and the Middle East,' the group said when filing with the LSE.

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    Read this next: Serco Seeks Redemption after £1.3bn Operating Loss

  • 13 Mar 2015 12:00 AM | Anonymous

    Parts of India’s iconic state-run railways could potentially be outsourced in future, following revelations by Railway Minister Suresh Prabhu today.

    Speaking at a panel discussion at the India Today Conclave, Prabhu admitted that "Neither privatisation nor total government control is the solution to the problems of Railways." The Minister refused to elaborate upon the "legislative changes" he is seeking to address these issues, but there remains a strong possibility that the state will seek large-scale outsourcing contracts in an effort to improve the finances and efficiency of the embattled Indian Railways.

    This follows the announcement in latest Railway Budget in February that the state would look to enter into joint ventures with the private sector, and soft-financing from other nations, as it seeks to modernise. In October, the railway invited private organisations to sell reserved and unreserved tickets, much to the chagrin of local trade unions.

    The rail network, which is the 4th longest in the world and carries a record 8 billion passengers, has suffered from a lack of investment, upkeep and repair in recent times. To remedy the neglect, the railway operator plans to add 4,000km of new lines by 2017, as well as significant gauge conversion, doubling and electrification of its existing aging lines.

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    Read this next: Transport of London awards ICT contract to Computacenter

  • 12 Mar 2015 12:00 AM | Anonymous

    Indian BPO and consultancy provider Wipro has been declared the 2015 World’s Most Ethical Company by The Ethisphere Institute, the global leader in defining and advancing the standards of ethical business practice.

    The title is awarded through the Institute’s Ethics Quotient, which assesses ethical performance through evaluating an organisation’s ethics and compliance program, corporate citizenship and responsibility, culture of ethics, governance, innovation and reputation.

    Commenting on the achievement, Anurag Behar, Wipro’s Chief Sustainability Officer, said “At Wipro ethics, integrity and responsible citizenship are a foundational first principle and at the core of how we think and act. We are happy to be recognized by Ethisphere for the fourth time in succession. We see this as a reaffirmation of what we stand for."

    Ethisphere's Chief Executive Officer, Timothy Erblich offered his own compliments upon Wipro’s success, remarking "Earning this recognition involves the collective action of a global workforce from the top down. We congratulate everyone at Wipro for this extraordinary achievement."

    Whilst the list was dominated by US-based companies, Indian firms also scored highly, with Tata Steel and Tata Power named amongst 132 honorees across 21 nations.

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    Read this next: Infosys and Wipro Scramble to Retain Expiring Outsourcing Contracts

  • 12 Mar 2015 12:00 AM | Anonymous

    The first new university in Britain for 30 years is due to open its doors in 2017. NMITE (The New Model in Technology & Engineering), is opening to tackle the shortage of engineering, technology and science degrees.

    The courses have been designed by business leaders such as Charlie Mayfield, the chairman of John Lewis, the chief executive of GlaxoSmithKline and the corporate development officer from JCB.

    Students will be taught the analytical thinking, innovation and leadership skills that employers seek. NMITE will not be able to award its own degrees at first so they will be awarded through their partnership with the University of Bristol and University of Warwick.

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    Read this next: Transport of London awards ICT contract to Computacenter

  • 12 Mar 2015 12:00 AM | Anonymous

    2014 was a truly terrible year for Serco, marred by a number of contract scandals, including its £285 million prisoner-transfer contract with the UK government which was subsequently investigated by the City of London police.

    The result? An operating loss of £1.3 billion - this accounts for the £656 million loss before exceptional items and the £661 million loss of exceptional items. Those figures represent quite a stark contrast to Serco's £236 million profit in 2013.

    Rupert Soames, who became CEO at Serco in February 2014, said: 'There is a real sense that, having confessed our sins and in taking the punishment, we are now ready to start on the path to recovery.

    'We have all we need: a good plan, strong management to execute it, and, following the successful completion of our proposed rights issue and refinancing, a balance sheet that is an appropriate foundation on which to implement our new strategy.'

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    Read this next: Whitehall award new contracts to G4S and Serco despite being on probation.

  • 12 Mar 2015 12:00 AM | Anonymous

    Trustees of the National Gallery are meeting today to prepare for a third round of employee strikes, which the Guardian reports will include two-thirds of the gallery's workforce.

    The strikes are in reaction to the National Gallery's plans to outsource around 400 jobs based around customer services such as security, visitor services and ticketing.

    The plans were originally announced around nine months ago, in response to government funding cuts and a number of other issues. At the beginning of this year, Public and Commercial Services Union (PCS) spokesman Richard Simcox said 'we do not accept that this is the answer to whatever problems the gallery has,' but without suggesting any potential alternative solutions.

    The National Gallery's plans to outsource have been mislabeled as 'privitisation' by both the PCS and publications such as the Guardian. By outsourcing services, the National Gallery maintains full control and accountability; privitisation would involve the National Gallery losing all control of the operation.

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    Read this next: Protests at Copeland Borough Council Arise Over Outsourcing/Privatisation Confusion

  • 12 Mar 2015 12:00 AM | Anonymous

    Outsourcing IT support services saves time and money for many businesses. This is particularly the case for SMEs whose internal staff don’t have the time or skills to managed complicated office technology — especially considering the rate at which technology changes.

    To gain the most value from managed services, however, you need to prioritise your business-critical IT processes. These processes could include providing on-site employee technical support, managing security concerns for a bring-your-own-device (BYOD) program, or configuring your network.

    The different levels of service

    Once you know which IT functions you want to outsource, you can begin pricing vendors to see what you can accomplish within your budget.

    As you consider the options, you’ll notice that vendors typically offer three support categories: break-fix, proactive, and fully managed. Be aware that as the level of support increases, so does the price tag. Go into your search knowing which option is best for your organisation and don’t be persuaded to pay for services you won’t fully utilise.

    In this article, you’ll learn what to expect from each type of support so you can decide which is right for you.

    BREAK-FIX: BASIC SUPPORT FOR THE BUDGET CONSCIOUS

    If your business isn’t heavily dependent on IT and simply needs a helping hand when a computer or network breaks, break-fix support is a good fit for you.

    With this type of service, an IT engineer will diagnose and fix problems remotely, whether via telephone or online remote computer access. For more complicated issues, the engineer might tackle the problem on-site.

    Break-fix services are based on a pay-as-you-go model, so you won’t spend your budget on unused or underutilised services. The downside is you might experience slower response times and lower quality service. In addition, this reactive approach to IT can become inefficient, particularly if the same problems reoccur.

    PROACTIVE: PREVENTATIVE MAINTENANCE FOR THE IT DEPENDENT

    When your business relies heavily on IT (if you run business-critical apps or use cloud services, for example), you need a higher level of support than break-fix.

    Proactive support helps you avoid problems by monitoring the health of your computers and networks. The third-party support team will immediately address areas of concern, such as low disk space. Unlike break-fix support, technicians are equipped to respond quickly and provide better support.

    By resolving issues in advance, you can minimise the likelihood of outages. Unfortunately, if you don’t choose the right service provider, the costs could be inordinate for the level of support you receive.

    FULLY MANAGED: IT DEPARTMENTS FOR THE IT AVERSE

    Sometimes break-fix and proactive solutions aren’t enough, particularly if your company is IT dependent but doesn’t want to manage the resource requirements for an in-house IT department. In this case, you can replace the function of an internal IT team with fully managed support.

    The service provider will not only oversee your day-to-day technology maintenance needs but also look for recurring problems and ways to strengthen your IT infrastructure. Plus, you’ll benefit from the provider’s knowledge of industry trends and experience with new technologies.

    Managed services give you premium service levels and quick response times — and a price tag to match. Because this top-tier service requires a hefty investment, it’s crucial that you work with a trustworthy provider that will act according to the strategic direction you provide.

    Choosing the right provider

    Regardless of which support tier you decide on, you need to work with the right service provider. First, consider the company’s years of experience and read current customer testimonials.

    If the vendor makes it past your initial investigation, examine the company’s service level agreements to see how quickly the service provider will address your needs. If possible, have the vendor demonstrate typical response times so you can evaluate the service quality.

    When reviewing contracts, bear in mind that new equipment and upgrades are not always covered. Also, not all vendors support BYOD equipment, so if that’s a priority for your business, look for a service provider that can support these devices.

    Additionally, make sure the provider can support all your critical applications and is available during your business hours. To prevent voiding your hardware warranties, verify that the engineers are fully qualified to repair equipment from an array of manufacturers.

    Being mindful of these considerations can help ensure you have a positive experience with the company you choose to manage your IT environment.

    Things to remember

    Outsourcing is not a one-size-fits-all solution for IT problems within your organisation. Randomly allocating lower priority IT processes to a third party or automatically subscribing to a top-tier service level you don’t need won’t give you the results you’re looking for.

    But approaching outsourcing as a strategic decision can unlock business potential that might not otherwise be possible for your business.

    When you outsource priority processes, you can help your business stay ahead of the curve. Your employees will be able to focus on their day-to-day jobs rather than on fixing IT issues, and your company will benefit from the IT support provider’s expertise. Now that’s value.

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    ITS is part of the US Reynolds and Reynolds company which has a strong heritage in data backup and recovery services. In his position, Matt is responsible for developing Managed IT services within the UK and is currently focused on the next generation of cloud and recovery products. Find out more.

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