Industry news

  • 11 Nov 2013 12:00 AM | Anonymous

    Infosys have been hit by a landmark fine by the U.S. for alleged abuses relating to work immigration visas.

    The company has agreed to settle a fine of $35 million with the U.S. Attorney’s Office for the Eastern District of Texas, relating to the outsourcing company’s practice of bringing skilled foreign employees to the U.S. on B-1 visas, allowing the Bangalore based outsourcing provider to side step caps imposed on H1-Bs visas.

    The fines come as the U.S. government seeks to clamp down on the abuse of loopholes in visa controls by outsourcing companies, who seek to meet continuing high demand in the country.

    The demand for skilled workers is expected to continue with the U.S. only having enough computer-science graduates to meet 40 per cent of jobs by 2020 according to a new report.

    Call for U.S outsourcing visa rules to be cleared up

    Home Office awards contracts for visa applications services.

  • 11 Nov 2013 12:00 AM | Anonymous

    Beijing based mobile games developer Rekoo has opened a London office in Tech City, representing the first high profile Chinese company to invest in the UK technology centre.

    The company has published games in China for big-name brands including Disney, Facebook and Zynga.

    The company which employs 500 staff worldwide, plans to have 10 staff in the London based office, while looking to expand this number to 25 within the next three years.

    The announcement of the investment comes as London mayor Boris Johnson visits China as part of a six day trade mission to encourage Chinese investment in the UK capital.

    “As a leading light in China’s tech scene, Rekoo’s decision is another huge boost for the capital’s digital industries,” said Boris in a statement.

    Amazon develops new London site

    Government provides £50 million for Tech City development

  • 8 Nov 2013 12:00 AM | Anonymous

    As a result of the recent publicised failures of government outsourcing, the government has been encouraged to slow down its multimillion pound outsourcing enlargement program.

    Whitehall officials leading the review over G4S and Serco scandals say government should take some blame as contracts have been managed “poor in a lot of areas”. Bill Crothers Cabinet office chief procurement officer claims government departments “get the suppliers they deserve”.

    Crothers suggests the disappointment of government outsource contracts lies with the failure to manage contracts and ensure they “deliver what they said they would do”.

    The government currently outsources around £20bn a year in outsourcing contracts to deliver public services in a bid to drive forward a more efficient civil service.

    G4S hit buy pay dispute at GCHQ

  • 7 Nov 2013 12:00 AM | Anonymous

    This partnership will bring Sri Lanka’s process and industry knowledge through Brandix to combine with Accenture’s global cross-industry experience in delivering management services, to provide high quality product and service to global customers. Accenture will assist Brandix in leveraging the Apparel industry for its global clients.

    Brandix Chief Executive Ashroff Omar commented on the new venture in a statement saying, "Accenture will bring its extensive global experience, proprietary assets, software and analytics capabilities, helping to create more efficient and cost effective business processes".

    Accenture moves to increase Brazilian investment with acquisition

  • 7 Nov 2013 12:00 AM | Anonymous

    Favourable economic conditions and positive outsourcing trends in America and Europe have enabled the outsourcing industry to grow with American IT service firm Cognizant Technology Solutions Corp increasing its revenue in Q3 by a more than expected 22 percent, as well as reported jumps in profit for its Indian competitors InfoSys and Tata Consulting it was reported yesterday.

    North America, which accounts for three quarters of Cognizant’s revenue, offered the company lucrative contracts in addition to the work won on President Barack Obama's healthcare reforms where Cognizant supports the operators of online insurance exchanges, opened 1st October, as part of Obamacare to offer health insurance plans to millions of uninsured Americans.

    "In the United States, for example, there's a lot of work for the state level and the federal level because of healthcare," Chief Financial Officer Karen McLoughlin

    As financial firms and companies in Europe particularly, outsource more work and increase spending on consulting, the company’s revenue increased by 37 percent to £414.1million in the region which also saw its Indian rivals, Infosys Ltd and Tata Consultancy Services win as demand for outsourcing has grown.

    "We continue to also see healthy demand in the sort of traditional outsourcing types of businesses on the continent," Chief Executive Francisco D'Souza

    Cognizant’s continued surge in revenue was aided by operating on lower margins than its rivals like infoSys and Tata Consulting, helping it secure more business in the largest outsourcing geography, North America and, especially in the case of large contracts coming up for renewal, leveraging these margins effectively.

    "Our performance during the quarter was stronger than anticipated due to a faster ramp up in demand for outsourcing services and strong discretionary spend on consulting and technology services," Cognizant President Gordon Coburn said.

  • 7 Nov 2013 12:00 AM | Anonymous

    Transforming the way UK public services are delivered is a key priority for this Government, in order to meet ambitious saving targets, support reforms and streamline services.

    Yet, despite so much riding on the success of transformation and change programmes, research from the Harvard Business Review found that seven out of every 10 projects fail, representing a significant amount of wastage for both local authorities and outsourcing providers alike.

    For any transformation programme to be effective, alongside technology and infrastructure modernisations, outsourcing partnerships need to foster a cultural shift which places people at its core. Even the most meticulously-planned project is likely to fail without the support of the people expected to deliver it, so getting everyone’s buy-in is crucial to success.

    The first step is to appoint a team of motivated, capable leaders who not only have the traditional, managerial skills to lead complex reforms, but possess the softer skills, too. Human qualities such as empathy, understanding and patience are just as important, as bringing about change requires modifying the behaviour of people, as well as systems and processes.

    Once the management team is in place, the next step is about effective engagement. Employees need to understand why the change is happening to get behind it, so the reasons should be communicated in simple language and across different channels. Get people involved in the success, by celebrating milestones and achievements.

    Engaging and empowering employees from the start brings other benefits, too. When arvato TUPE-transferred 170 employees in our public-private partnership with Chesterfield Borough Council, we ran a ‘Have Your Say’ initiative. This helped to create a culture of goodwill and generated over 200 improvement ideas, allowing us to streamline our proposition, flag any potential issues upfront and more generally create a smoother transition.

    Transformation is most successful when it’s involving employees and helping their personal development. Lean Six Sigma [LSS] training, which targets waste elimination and variability reduction, is one tried and tested methodology that focuses on the citizen and gives staff the tools they need to improve processes themselves. In our partnership with Slough Borough Council, arvato trained all 100 employees to White Belt standard, enabling 85 per cent of participants to make a positive change to the way they worked by removing inefficiencies.

    It is only through true partnership – in which managers skilfully guide the change programme and employees consider themselves an active contributor to its success – that we’ll see the odds of failure flipped in reverse.

  • 6 Nov 2013 12:00 AM | Anonymous

    The Serious Fraud Office (SFO) has confirmed it has launched a criminal investigation into government contracts with G4S and Serco over the provision of electronic tagging services.

    The Ministry of Justice has called for the SFO to probe G4S because it refused a further full audit after the results of the initial audit found substantial disparities between tagging and charging, that led to over-billing by both companies of Government worth over tens of millions of pounds.

    G4S confirmed today that it had received notice that the director of the SFO has opened an investigation into the ‘contract for the provision of electronic monitoring services which commenced in April 2005 as amended and extended until the present day’.”

    Serco, subject to a full audit by accountancy firm PwC following the announcement of the initial audit in July confirmed it will also co-operate fully with the SFO investigation – which could lead to fines or prosecution.

    Neither company can win any further British government work until a second investigation run by the Cabinet Office into contracts it has with each company, whose results are expected at the end of November, is completed.

  • 4 Nov 2013 12:00 AM | Anonymous

    French based Steria Limited has been awarded a 10 year contract worth as much as £1 billion.

    The contract was awarded to Steria’s Hemel Hempstead division, the conformation follows the company being named as the Cabinet Office's preferred bidder .

    The contract will see Steria deliver a new ICT framework and the delivery of business technology services, designed to achieve economies of scale and increased efficiencies.

    The contract will see the creation of a new joint venture business called Shared Services Connected Ltd (SSCL), which Steria will run as a shared service with the government.

    Steria said: “SSCL will invest in technologies and skills to create UK centres of excellence, which will not only improve levels of service, but will stimulate innovation, create high-value jobs and develop skills in the UK”.

    The move to select Steria has angered public services unions, with members of the Public and Commercial Services (PCS) union striking in protests of plans to outsource services as part of the contract.

    Public services union to strike over outsourcing plans

  • 4 Nov 2013 12:00 AM | Anonymous

    The UK government has announced the creation of a new data infrastructure programme, the National Information Infrastructure (NII) will allow users to access real-time public data as part of a move to increase transparency and government accountability.

    The development of the NII is in response to an independent review into new ways to use information held by the public sector.

    Peter Lawrence, deputy director of transparency and open data at the Cabinet Office, said: “We’ve developed a process to identify those datasets that are most useful to either business, or civil society, or government, to improve growth, public services and citizens’ lives”.

    The announcement of the NII came as the Prime Minister urged UK businesses to follow an open data and transparent model.

    David Cameron urges businesses to publish open data

  • 1 Nov 2013 12:00 AM | Anonymous

    Cabinet Office minister Francis Maude has urged SMEs to place pressure on the government and demand increased transparency and accountability from the public sector procurement process.

    The move to increase the government’s procurement transparency would increase completion and help SMEs in bidding for contracts.

    Increased accountability and openness would also restrict the dominance of enterprise level companies over public sector contracts, while encouraging the use of SMEs to deliver specialist services.

    Mr Maude said during an Open Government Partnership summit, that: “One is the small business arena, who get frozen out of a lot of government contracting. It’s just too difficult. They should be being very demanding.”

    Government select committee hears from outsourcing experts

    MoJ tenders for £108 million ITO contract as part of future procurement strategy

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