Industry news

A study from Freelancer.co.uk surveying 220 small businesses in the U.K revealed the number of SME’s offshoring increased by 35% this year. The survey revealed India, Pakistan and the Philippines as the most popular off-shore destinations. The survey showed the top reasons for off-shoring were cost savings and expertise.

Home Office removes barriers for SME IT suppliers

The European Outsourcing Association (EOA) Awards took place last night (10th July) at etc.venues – St Paul’s in London. Celebrating excellence in pan-European outsourcing, the EOA Awards reward buyers, suppliers, advisors and destinations. The awards were presented by comedian Rhodri Rhys and after the formal proceedings, guests were mesmerised by a magician and partied until midnight.

Kerry Hallard, CEO of the National Outsourcing Association (UK chapter of the EOA) said:

“Once again the EOA Awards has seen a record-breaking year for submissions, featuring a host of best-practice examples from across the European outsourcing industry. We were delighted to see such variety and detail within this year’s entries, which goes to show the level of talent and profes-sionalism that exists within our industry. We’d like to congratulate all the winners, and thank all those that took part. Thanks also go to our sponsors for supporting the event. Without them it would not be possible. “

The winners of the 2014 European Outsourcing Association Awards are:

European BPO Contract of the Year

Conectys

European IT Outsourcing Project of the Year

HCL & AstraZeneca

European Outsourcing Service Provider of the Year

Teleperformance

European Outsourcing Advisory of the Year

Eversheds LLP

Offshoring Destination of the Year

Fiji

Award for Corporate Social Responsibility

SPi Global - SPi for Visayas

Award for Innovation in Pan-European Outsourcing

Teleperformance - CX Lab

Outsourcing Works – Award for Delivering Business Value in European Outsourcing

ITC Infotech & Danske Bank

European Outsourcing Professional of the Year

William Pattison, Chief Executive Officer, Mindpearl BPO

European Outsourcing Buyer of the Year

Ziggo & TechMahindra

Contact details:

National Outsourcing Association

44 Wardour Street London

W1D 6QZ

Email Editorial & Marketing Communications: admin@noa.co.uk

Phone: 020 7292 8696

AGC Holdings, a wholly owned portfolio company of Essar Global Fund has confirmed an agreement with Teleperformance to sell its BPO business in the US, Philippines and Costa Rica to Teleperformance for $610 million. Aegis will continue to hold its BPO business in India, Sri Lanka, Malaysia, Australia, South Africa, Peru, Argentina, Saudi Arabia and UK.

Aegis prepares for £3bn Japanese takeover

Over the past seven years, the financial services industry has experienced significant change and upheaval. Despite this, one constant has remained; the use of outsourcing. So with all the transformation and turmoil, why is it that lender’s still favour outsourcing?

Regulatory crackdown

One of the major drivers for outsourcing solutions could be the increasing amount of regulatory demands that lenders are being forced to keep up-to-date with. Lenders are being forced to re-think their propositions and business models in order to differentiate themselves from both established competition and more recently, new market entrants. Furthermore, they need to ensure that they have robust and flexible systems in place to deal with upcoming and existing risk and regulatory burdens, whilst at the same time, reduce operating costs and provide an efficient and effective customer experience.

Let’s take the example of the Mortgage Market Review (MMR), contributing to some of the biggest regulatory changes since 2004. The introduction of the MMR in April aimed to promote a more sustainable mortgage market, however it has inevitably caused an increase in administrative burdens for lenders, advisers and customers. In this context and many others, outsourcing can be seen as a cost effective way to manage necessary process changes.

Focus, focus

Other benefits which have insured outsourcing’s continued popularity include the greater security a third party servicer can grant, as well the reduction in overhead costs outsourcing can help to achieve. For businesses moving into new product areas, partnering with an outsourcer can help to keep market entry costs low by reducing fixed expenditure in staff, IT systems and premis¬es, along with investment in key servicing infrastructure. By partnering with a servicing providerwho is experienced in helping lenders meet these challenges, lenders can focus on their core business proposition. Effective outsourcing can remove operational barriers to growth whilst addressing the administrative and compliance challenges.

Keeping a competitive advantage

In addition to supporting compliance and easing administration pain, outsourcing can also help lenders retain a competitive advantage. Third party administrators are in a position to undertake multiple roles dependent on the lender’s requirements, including acting as a partner for closed or originating portfolios, standby servicing, or managing defined processes in the customer lifecycle. By outsourcing these processes, management teams are free to focus on improving and diversifying propositions and driving business growth.

Outsourcing is by no means a new concept, but it is more relevant than ever in today’s market. Selecting an outsourcer with the right experience can enable lenders to access improved technology, enhanced processes, market insight and operational expertise. This results in good practice in lending so that lenders can focus on what they are there to do. Aside from the tangibles, it also comes with the assurance of predictable costs and leveraging a regulated servicer to deal with the ever shifting regulatory landscape.

After a recent trip to Calcutta by Welsh Water where they worked closely with TCS (Tata Consultancy Services), TCS have increased the Welsh Water staff to 40 members. Although no jobs are at risk by offshoring customer service administration roles employees have voiced their concerns. The offshored roles include web chat, measured payment regulations and unmeasured spilt properties.

South Africa is a fan of outsourcing

Oxfordshire County Council is looking to outsource human resources and finance to Hampshire and will affect approximately 140 staff. If approved, the services will be delivered by Hampshire County Council and its Integrated Business Centre (IBC). By using the shared service centre Oxfordshire aims to save £700,000 a year.

The plan is due to be approved on 15th July.

Capita selected as preferred bidder for Wycombe Council

United Airlines have announced plans to outsource 630 jobs across 12 U.S Airports. The jobs affected include ticket and gate staff and baggage handlers. The move comes as a means to improve cost-saving and keeping ticket prices competitive.

Finnair to outsource cabin service

Capita has been chosen as preferred bidder by Wycombe District Council for a £14m ICT contract. The contract will cover internet, administration, customer service and maintenance. This contract is due to replace the current £5.9m contract with Northgate that is due to expire in early 2015. The exact date for when Capita will be formally offered the contract is not known yet.

Capita awarded £24 mil contract for children’s IT services

After troubles over contract write downs last week Serco have received another hit once the company’s bid to continue running London’s DLR service was turned down. Serco had maintained the contract worth 125 million pound a year contract since 1997, Serco are due to hand over the contract in December.

Serco write down value of loss-making contracts

According to a recent article in the Financial Times from Information Services Group (ISG), the amount spent since the coalition government came into power on outsourcing services has doubled to £88bn.

In a bid to seek cost savings through its austerity programme, tens of thousands of public sector staff have been transferred to privately sector management. When compared to the previous fours years under the then Labour government, outsourcing spend was £45bn.

The results of the research go on to show that over the past two years, the value of public deals reached £51bn compared with £30bn for the commercial sector. They also indicate that although the private sector now seek smaller contracts, the government are pursuing larger deals.

Outsourcing to take a hit at the next general election