Industry news

  • 22 Apr 2014 12:00 AM | Anonymous

    Two of the world’s largest pharmaceutical companies have joined together, with GlaxoSmithKline (GSK) and Novartis announcing a shared services partnership.

    The two companies will share asserts under the agreement which will see GSK and Novartis combine their consumer healthcare units. The companies have announced that the partnership will allow for the two businesses to focus on key areas.

    Under the deal GSK will sell its drug cancer business to Novartis for $16 billion, while GSK will receive Novartis’ vaccine business for $7.1 billion.

    GSK has revealed that the company expects to see significantly increased revenues from the deal, with a projected increase of £1.3 billion to £26.9 billion, according to the company.

    Andrew Witty, chief executive, of GSK, said: "With this transaction, we will substantially strengthen two of our core businesses and create significant new options to increase value for shareholders."

    Pharmaceutical giant urges public sector to invest in innovation

    GSK releases opens innovation platform

  • 22 Apr 2014 12:00 AM | Anonymous

    Chinese Life insurance, one of the largest corporate investors in China has moved to outsource management services.

    The company has undertaken a three-day search for asset management companies for the outsourcing operation, which is expected to be worth around $3.2 billion.

    The outsourcing tender terms offered by Chinese Life are viewed to be very favourable, with assets management companies being offered a 5 per cent management fee and 20 per cent in operational earnings according to the Economic Observer.

    The asset management companies will be responsible for multiple Chinese investment projects, with the outsourced program representing a landmark move within the investment market.

    China enters talks to acquire Airbus fleet worth £12 billion

    UK Prime Minister looks to strengthen trade links with China

  • 22 Apr 2014 12:00 AM | Anonymous

    Following the recent Russo-Ukrainian turmoil, Ukraine has moved to enact a strategic initiative designed to boost the economy.

    The Ukrainian Embassy to the United States will unveil an outsourcing initiative entitled: “Increase Profits. Support Democracy. Cloudsource to Ukraine.”, which will seek to encourage investment in the countries outsourcing services market.

    The initiative is designed to link Ukrainian outsourcing service businesses with U.S. companies and agencies.

    "I am quite sure that the IT industry in the Ukraine provides excellent opportunities to do a good business," said Pavlo Sheremeta, the Minister of Economic Development of the Ukraine. "This is one of the booming sectors in Ukraine due to strong education and the long standing culture of innovation and inventions that we have in the Ukraine."

    The programme is set to be officially announced in Washington on April 29th.

    Ukrainian CEO’s open letter on the future of the country’s outsourcing industry

    Crimean crisis likely to hit outsourcing

  • 22 Apr 2014 12:00 AM | Anonymous

    The Home Office has placed tender for a new communications emergency services network (ESN), valued at between £666 million and £1.46 billion.

    The tender for the communications network requests suppliers to be able to provide mobile, broadband and integrated voice communication services, to around 250,000 emergency services personal across England, Wales and Scotland.

    The delivery of the ESN has been divided into four lots including integration, management, infrastructure and operating services.

    The new ESN is designed to be more efficient with greater operational cost savings and will replace the current Airwave service contract which is set to expire between 2016 and 2020.

    Emergency services bid for shared services funding

    Fire and rescue authorities are urged to collaborate

  • 22 Apr 2014 12:00 AM | Anonymous

    An out-of-hours help desk service employed by Wandsworth London Borough Council has gone live.

    The outsourced service provided by The Help Desk, was part of the Councils move to provide support for increasing numbers of staff who are working irregular hours.

    The new service is designed to improve the council’s organisational structure and create a proactive rather than reactionary approach to system upkeep.

    The council selected the vendor based on The Help Desk’s work with supporting retail brands with the out-of-hours support helping the council to provide 24 hour support services to the community.

    David Tidey, Head of IT & Business Communications for the Council said: “Working practices have evolved over the past few years. When we looked at the situation more closely, we realised a growing number of staff were working longer hours than just those spent in the office and therefore needed to access the systems they rely upon to do their job at any time and from any location. To facilitate this change, we looked at the resourcing of our help desk services.”

    London Councils Tender for £1b Back-Office Deal

  • 17 Apr 2014 12:00 AM | Anonymous

    Indian based IT outsourcing provider HCL Technologies has posted greater than expected profits for the third quarter period.

    The financial and marketing sectors were the main service users, with Europe and U.S. markets being the most profitable for the IT company.

    HCL posted a 59 per cent profit rise over the March quarter period, with revenues up by 29.8 per cent over the July-June period, beating market expectations.

    The company has now revised its growth predictions, with the IT services markets gearing up for growth from increased demand, as the improving economic recovery prompts companies to renew focus on new technology investments.

    Shiv Nadar, Chairman & Chief Strategy Officer at HCL Technologies, said: "Our leadership has been driven by our commitment towards sustainability, diversity and trust through transparency. With an emergence of an increasingly positive macro environment these values will continue to be HCL's key differentiators and provide an impetus to our future growth".

    The announcement follows similar strong reports from fellow Indian based IT firm Tata which also posted prediction beating results.

    Infosys raises forecast after outsourcing contract wins

    IBM awarded major contract with Indian group

  • 17 Apr 2014 12:00 AM | Anonymous

    The call comes after the supermarket posted a 3.6 per cent drop in profits, the slowdown comes as the company moves to transition services from retail to online stores.

    Mr Clarke said that it would take time to re-establish growth due to the ongoing digital transition process, but that a digital focus would pave the way for future growth.

    “We are not opening a lot of new space these days and you can see these long run impacts of this tightening recession. And the growth of online. Online retailing growing for everybody in the UK,” said Mr Clarke.

    The supermarket chain is planning to carry out further investment in digital and automation services and technologies.

    M&S sees sales decline despite strong online performance

    Tesco prepares for mass dot.com store rollout

  • 17 Apr 2014 12:00 AM | Anonymous

    HM Treasury has awarded the first contract for its 2015 ICT programme to SME supplier Centerprise International.

    The contract will cover a four-year period with Centerprise providing support, upgrade and maintenance services to a variety of applications and services including, wirelesses networks, video services, and conference technology.

    The selection of Centerprise comes as part of the government’s SME procurement imitative which seeks to increase SME service uptake by government departments by simplifying the public sector procurement processes.

    Karen Delafield, HM Treasury's CIO, said: "I am looking forward to the prospect of working with Centerprise International. This is just the first step towards changing the way IT works at HM Treasury. It is also the first step in implementing the government's new approach to IT, including the more common use of direct contracts with SME partners."

    UK SMEs capitalise on ITO

    SMEs join forces in outsourcing for growth

  • 17 Apr 2014 12:00 AM | Anonymous

    Indian IT company Wipro has released its financial results for the quarter and year ending March 31, 2014, with results outperforming analyst expectations.

    Wipro announced a 41 per cent year-on-year increase in net income for the quarter and a 27 per cent year-on-year net income increase over the whole year.

    Azim Premji, Chairman of Wipro, commenting on the results said: “The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets.”

    T K Kurien, Executive Director & Chief Executive Officer of Wipro, said: “Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction.”

    Highlights from the release included:

    Net Income Grew 41% YoY in the quarter

    IT Services Operating Margin Expanded by 150 basis points sequentially

    IT Services Revenues Grew 24% YoY in the quarter

    IT Services EBIT Grew 51% YoY in the quarter

    Wipro awarded 10 year contract with Carillion

    HCL posts rising quarter profits

  • 17 Apr 2014 12:00 AM | Anonymous

    Time for the Outsourcing Industry to Shout Back.

    So Accenture decided to change its strapline from ‘Consulting Technology Outsourcing’ to ‘Strategy, Digital, Technology, Operations,’ and the word “outsourcing” has apparently got less than a year to live. But in an industry where calling a spade a spade is both an endearing trait, and an essential skill (from a buy side perspective) hiding the actual nature of your wares behind some nuances of language is wandering into Chris n Gwynnie’s “Conscious Uncoupling” territory; just a little bit pretentious.

    But I’m not suggesting for a second that this is what Accenture has done. Their new strapline brings greater transparency, if anything. After all, B2B marketing 101 tells us that people buy benefits, not features. So tagging themselves as ‘Strategy, Digital, Technology, Operations,’ actually provides a clearer view of what they can offer a customer in terms of value adding activities, because it describes, very plainly, the areas where outsourcing helps companies improve capabilities.

    Make no mistake, clients will only actualise these benefits by outsourcing to Accenture (other outsourcing providers are available!) so the term will live on for as long as organisations need help with their strategy, digital, technology and operations. Don’t forget, BPO is a service they proudly offer still, you don’t have to drill down far to find that out. So fairplay to Accenture, for shaking up their marketing effort.

    Our industry does need to get better at marketing itself, to both talent and customers. In much the same way that an author doesn’t merely promote their own book, most of them speak out for the intrinsic joys of reading per se - the outsourcing industry needs to present a unified front on the added-value nature of outsourcing.

    We all know outsourcing can save customers money, as an industry, we need to get extremely vocal about the benefits of bringing in better talent and technology to help with strategy and operations and end the culture of sweeping the positives under the rug.

    That anyone should even have mind to suggest a company is rebranding to distance itself from what it actually is, stands as testament to the rough ride our industry gets in the media. I’ll bet the Guardian journos leapt out of their seats with glee when presented with the op. of the “Secret Serco”, which alludes to morale being low and profitability top trumping customer service every time (if it is an authentic snapshot of what is happening in that particular deal, it’s not only poor form, but extremely poor contracting, which highlights the short-termism we need collectively avoid).

    The entire sum of client experience, business benefits and supplier staff satisfaction is the reputation of outsourcing: the real, factual one, not the sensationalised hearsay you get in the papers.

    When we conducted a poll at the NOA Summit 2012, 85% of members were proud to be part of the outsourcing industry, and happy to be associated with the O word. So let’s band together and proudly showcase the benefits outsourcing brings, and take collective responsibility for the reputation of our industry. Because however you choose to describe your company, if you’re adding long-term value to a partner, you’re an outsourcer.

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