Industry news

As we head in to British springtime, UK is still counting the cost and dealing with the aftermath of months of wind, rain and chronic flooding, Cloud IT experts Net Solutions Europe (NSE) to comment on the importance of resilient IT systems to mitigate crisis management.

According to the latest statistics from the Met Office, the UK has experienced its wettest winter in almost 250 years, with businesses in Somerset alone reporting losses over £1.2 million (an average of £17,352 per business) in lost productivity.

“When premises become flooded and lose power or accessibility, the failings of traditional servers become painfully apparent,” says Tom Underhill of Cloud IT experts, Net Solutions Europe. “The natural solution for interruption to business because of adverse weather, power or IT failures, is for staff to continue working from home or a safer environment. However, if all files and processes are stored on internal physical servers, a business of any size can literally grind to a halt. Where flooding is concerned, water-damaged servers can be a disaster.”

“Cloud integration is a clear solution to this problem. With data stored virtually in a secure, purpose-built data centre, businesses can be confident that their information is highly secure regardless of what the weather conditions are, and that their files can be consistently accessed and updated from any remote location. If any member of staff is unable to get into work, as long as wherever they are has an internet connection, they can keep doing their job.”

“A big concern for some business owners is the cost implications of investing in new IT systems,” adds Tom, “but implementing Cloud can often be a cost-neutral exercise that adds flexibility and resilience. With a range of private, hybrid and public Cloud solutions available, it’s possible for a business with a budget of any size to adopt the trend and protect their productivity and files.”

Cloud applications are now streamlining key processes such as email, storage, backup, HR, billing, CRM, and accounting for both small and large businesses. In fact, the Financial Times recently reported that nearly a quarter of all the UK’s IT spend is on the implementation of Cloud services that will ensure businesses can be much better equipped to maintain business continuity during ever more common weather disruptions.

New research from innovation foundation group Nesta reveals that businesses can expect to see increase of productivity of between 8 and 10 per cent from the employment of big data.

The research of 500 UK companies found that effective use of bid data, with proper collection, analysis and deployment, can see a 4.3 per cent increase in equity return.

The research revealed that businesses that allowed staff greater flexibility and autonomy in making decisions saw increased productivity from data than businesses that operated on a centralised decision making model.

Hasan Bakhshi, research director at Nesta, said: "Businesses must analyse their data and create an environment where workers are empowered to use it to generate positive returns. Our report makes a strong case that no business should ignore its data."

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More Welsh firms are winning significant public sector contracts thanks to the simplification of procurement functions and practices

The finance minister Jane Hutt revealed that Welsh contractors are now securing three quarters of all available major construction awards made available on the Welsh online procurement portal.

The online procurement portal known as ‘sell2wales’ has so far driven savings of £130 million over the last five years from increased efficiency, according to the finance minister.

Ms Hutt said: “Through collective effort, clear goals and strong leadership, procurement is being transformed from a ‘function’ to a strategic, intelligent lever which can have a positive and lasting impact on jobs, economic growth and the lives of people across Wales.”

As we enter what we are all hoping is a period of steady economic recovery, the focus of many companies has shifted from survival to growth. Businesses have now reverted to an emphasis on growth and the notion of establishing a sustainable model that will deliver positive results in the long term.

For service-based companies – and outsourcers in particular – the volume of business remains key, but in order to maintain a healthy level of growth, this increase in volume should not come at the expense of quality. Improvements to basic processes, such as managing your workforce more effectively, can actually have a significant impact on the quality of service – but which changes are the easiest and most effective to implement?

Tight margins

Business Processing Outsourcers (BPOs) are notoriously squeezed by some of the tightest profit margins in business. In most cases, outsourcers sign up to very ambitious Service Level Agreements (SLAs) which leave little room for manoeuvre without sacrificing profitability. Back office resources are typically stretched to the limit, with an overworked workforce under a lot of pressure to complete an often unmanageable amount of tasks at record speed. This can mean that tasks are not being completed to the best possible standard, with knock-on implications for the both the end customer and the client. So just how do outsourcers provide a better level of service under such difficult conditions?

Productivity

As an operational director, you need to ensure that your administrative staff is as productive as possible. This requires a new way of working, with a greater emphasis on completing specific tasks quicker and to a higher standard. Technology can play a key role here, with software able to allocate tasks to workers based on their individual skills and availability. This ensures that the right work is given to the right people at the right time. Workers are able to specialise in specific processes, which greatly increases the likelihood of tasks being completed correctly first time – sometimes referred to as “one and done”. Work is therefore completed quicker and with fewer errors, increasing the level of service whilst reducing operational costs and maintaining profit margins.

But technology can take this one step further. Workflow management technology that tracks the progress of the customer journey can now be fully integrated with Quality Assurance software to make sure that each individual stage is being completed to the agreed level of service. This granularity allows for greater transparency between outsourcers and their clients.

Complaints down, quality up

Some BPOs are already experiencing the benefits of this new way of working. For example, insurance policy administrator HCL IBS has seen complaints reduce by 70 per cent since implementing these tools and tactics to improve its workforce culture. By increasing efficiency and quality of service simultaneously, outsourcers are able to protect their profit margins and hold onto the cash they need to reinvest for growth.

David Cameron has announced that the government will invest a further £45 million in developing the ‘Internet of Things’ (IoT).

The pledge raises the total fund to £73 million for services and technology relating to IoT.

Mr Cameron during an announcement in Hannover said: “I see the Internet of Things as a huge transformative development - a way of boosting productivity, of keeping us healthier, making transport more efficient, reducing energy needs, tackling climate change.”

The US Government has 18F, an in-house digital services group which reflects the UK’s Government Digital Service.

18F has been launched as part of the independent General Services Administration (GSA) which is focused on transforming government IT services, encouraging efficiency and increasing transparency.

18F will seek to deliver cutting edge in-house digital services, tools and support services, the agency will also be available to offer advice to government departments on how they themselves can implement internal services.

GSA Administrator Dan Tangherlini said: “The mission of 18F is to make the government's digital services simple, effective, and easier to use for the American people. This service delivery program will make GSA the home of the government's digital incubator.”

GDS moves to combine digital marketplaces

Japanese based Hitachi has announced plans to move its global rail business to the UK as part of a planned expansion programme.

The expansion programme is hoped to increase revenues from €2 billion to €3 billion and increase the workforce to 4,000 workers from the 2,500 currently employed.

The move by the Japanese manufacturer places the company in proximity to its main competitors such as German based Siemens.

The announcement follows Hitachi’s success in winning a £1.2 billion contract to build next generational inter-city trains in north-east England.

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3.2 million SMEs are collaborating with one another in order to fuel growth, with focus on outsourcing marketing & sales according to new research.

The research released by CitySprint, as annual report ‘Collaborate UK’ revealed that 3.2 million small and medium businesses are pooling their resources and outsourcing in order to achieve greater growth.

In particular the research found that SMEs are looking to bring in marketing and sales support and are working together in order to win new business.

The report is based on the opinions of over 1,000 SMEs across UK, and also shows that:

• A net 11% looking to hire but 49% still in ‘survival’ mode

• Familiar barriers of red tape (16%), limited access to talent (15%) and finance (13%) hindering growth

• 1m looking abroad for opportunities

• Nearly a third (29%) feel more prepared to take on bigger competitors for new business

Professor Robert Blackburn, Director, Small Business Research Centre, Kingston University, said: "SMEs turned to each other to maximise efficiency and output during the downturn and are now starting to collaborate in different ways. This includes a focus on bringing in support for functions which will help them grow their reach and market share, perhaps even into related activities and new geographical territories.”

China has entered talks to buy more than 150 Airbus jets worth £12 billion.

Sources speaking to Reuters revealed that the deal would form part of the visit by Chinese president Xi Jinping to Europe at the end of March.

The deal is expected to involve the purchase of A330 craft and include talks surrounding the creation of Airbus’s second major factory in the country, which is ranked as the fastest growing aviation market on the planet.

The talks are also expected to ease relations between the EU and China following a cooling in trade relationships following environmental policies.

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George Osborne’s latest budget continues and builds on the governments support of small and medium sized businesses.

In the budget announcement in the commons the chancellor detailed how SME support programmes would be built upon, as the government seeks to support SME growth and their contribution to the economy.

Mr Osborne announced that the budget will increase tax credits for SMEs involved with research and development while operating at a loss, with tax credits set to increase from 11 to 14.5 per cent in April.

The move to provide subsidies to SMEs involved in R&D comes as the new budget seeks to increase UK innovation

Genevieve Moore, a tax partner at London Chartered Accountants Blick Rothenberg LLP, said: “The way the R&D tax relief works for SME’s means the real cash impact will be an increase in the repayment due to the SME from 24.75p to 32.63p for every £1 spent on qualifying R&D.

Peter Grant, CEO, CloudApps, said: “With the business rate discounts that the Chancellor has announced today, SMBs have been given the chance to pursue growth. Receiving these benefits means that companies are able to focus on improving their own workforce and invest time and money in driving innovation internally."

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