Industry news

  • 9 Oct 2012 12:00 AM | Anonymous

    How will a multi-national company benefit from outsourcing parts of its operation to Egypt post the Egyptian revolution? I hear this question being asked by investors looking to outsource their business operations. At ITIDA, we’re confident that Egypt’s location, solid infrastructure, cost benefits and talent set it apart and continue to make it an ideal outsourcing destination for multinational companies.

    Following on from my last post, Building on stability for growth, I want to take a quick look at each of these attributes in turn and explain how they make up Egypt’s value proposition. Beginning with its geographic location UK Trade and Investment recently described Egypt’s location as “hard to beat.” At the crossroads of Europe, Africa and Asia, and with flights to European cities being on average only four hours, Egypt is ideally connected to international markets.

    An additional geographic benefit is that the world’s major subsea telecommunications cables run along the north coast of Egypt, making phone and internet access quick, easy and highly competitive in terms of operational cost. Our infrastructure and connectivity is scalable and the country is presently investing in network upgrades to offer fourth generation broadband.

    We provide a great infrastructure with world-class business hub facilities. Smart Village, just outside Cairo, currently accommodates the needs of over 100 companies and 22,000 professionals in high-tech facilities and expects to host over 600 companies and 100,000 professionals by 2014. Investors include Microsoft, Vodafone, Ericsson, IBM and Alcatel-Lucent – successful multinationals, with high expectations who remained throughout the Egyptian revolution. Adding to the success of the Smart Village, a new 35,000 seat development for Contact Centers is now open at Maadi Park in Cairo, hosting major centers such as Sykes and IST, in addition to large local vendors Xceed and Raya.

    The cost of doing business in Egypt remains highly favorable, and despite some investor skepticism, economic outlook is positive. This year Egypt saw continued growth in the ICT market with the industry reaching $1.4 billion in export revenue and gaining recognition from international organizations such as the United Nations Conference on Trade and Development (UNCTAD). This continued growth and recognition from key industry experts reaffirms Egypt’s confidence of achieving IT export revenues of $10 billion by 2020.

    What I am most proud about, and what lies at the heart of Egypt’s outsourcing offer, is its talent. We benefit from a strong, sustainable pool of home-grown talent that is technologically skilled, multi-lingual and entrepreneurial. Egypt produces more than 425,000 graduates each year with around 60,000 business and commerce graduates, and 31,000 fluent in western languages.

    ITIDA works closely with local universities and multinational companies to provide students with world-class training. This year Future University Egypt joined SAP’s acclaimed University Alliance Program. We also launched a Technology Innovation Center in Cairo and a Graduate Program to drive communication and technology innovation in Egypt. In addition to these developments, as part of the EduEgypt initiative, the country has created around 28,000 BPO and ITO training graduates, and 200 certified BPO trainers – skills ready and waiting to be utilized by business.

    I am very pleased that the National Outsourcing Association has acknowledged ITIDA’s efforts to educate the next generation, by shortlisting us in the Skills Development Programme of the Year category at this year’s NOA Awards.

    The appointment of a democratically elected president has brought an increased confidence to Egypt and I hope this short snapshot helps to demonstrate that Egypt is experiencing a period of renewed stability and growth and continues to be an attractive global outsourcing destination. I’m keen to hear your thoughts.

  • 9 Oct 2012 12:00 AM | Anonymous

    The Sourcing Specialist 2 – IT Hardware

    It time for the second of our Sourcing Specialist guest blog posts. Alun Morris, Sourcing Consultant at Wax Digital, outlines the nuances of sourcing common but non-core spend categories, that often get overlooked in the mêlée of driving best value from core business spend. This week: IT hardware.

    The spectre of Moore’s Law, coupled with greater IT purchasing choices and the impact of trends like BYOD has revolutionised IT hardware sourcing.

    What brand of system is going to deliver the right performance and the right price has little individual bearing on the sourcing team’s success. From building data centres, to co-location, to cloud, understanding the respective merits of different approaches and balancing interrelated factors such as real estate, support, maintenance and obsolescence is now critical.

    Of course there are many (and growing) choices of IT supplier that can provide the full solution. Even if this approach is your final choice, being able to deconstruct the category and look at its component parts when sourcing is good practice for achieving best value.

    Assessment of market forces, such as steel price changes, shortening product lifecycles and the total cost of owning IT versus virtualisation or rental are also vital. It goes without saying that sourcing must work in partnership with IT so that best value decisions are based around strategy and objectives. Consideration must be made for issues like information security, business process efficiency and staff productivity too.

    Due to IT becoming an increasingly service orientated market it’s important to know exactly what you are paying for and if its matches your needs. Best value may well be achieved from a single IT solution provider providing products, installation, training and maintenance. But there can be many variants in service levels and these must be clearly identified to properly evaluate and compare options during the tender process.

    Of course many organisations’ IT departments already have relationships with an array of IT resellers and vendors; these should be respected if they are strong and successful. However existing suppliers should also be invited to compete for business. eAuctions are effective here as they allow hardware requirements to be split into lots in order to source critical inventory at best price.

    As we saw with IT Consumables there are many deciding factors and total cost considerations that impact what really drives best value in IT hardware. Casting a wide net initially helps you to evaluate different approaches. Then once your preferred model is chosen applying tactical sourcing skills will ensure the right balance of business value and performance.

    Next time: Professional Services.

    In the meantime you can find out more about sourcing IT hardware and other non-core categories in this ebook dedicated to the subject.

  • 8 Oct 2012 12:00 AM | Anonymous

    Outsourcers increasingly need to deliver on outcome-based contracts. Provision of a service alone doesn’t necessarily cut the mustard. This means rethinking the service design and the engagement of audiences. Part of this is proposition development, says Peter Mills, strategic planning director at The Team.

    Propositions are misunderstood. It’s marketing jargon gone crazy, of course. Some put this down to the whole offer, soup to nuts, everything we do. Others say it’s the pithy line that sums it all up: the strapline, the boilerplate, the slogan.

    I think we should see proposition development in the round. We have an audience. They have a need, perhaps latent. How do we understand how they would respond to our offer and do the thing we want them to do? Do we have to change our offer to make it more engaging and effective?

    What kind of thing are we talking about? It could be getting people to use less expensive, more effective channels, such as online services, over existing face-to-face services, or new employee appraisal systems, or registering for a service they don’t particularly want to use. It may be doing something they want to do, like reserve a book in a library, or something they don’t want to, like pay a fine.

    We start at the beginning: the brief. Is the issue identified the right one? Are the audiences fully understood? Are existing messages what people really hear? How do we know that? Are these the most effective communication channels? How will we know we have been successful? Once these questions are answered, or at least explored, we need to agree an approach for coming up with the proposition.

    Our preference is for a co-creation approach. It’s immediate history lies in online development. Although web technology was seen by many as a fantastic innovation, making money out it proved difficult to start with, partly because people just found the ‘experience’ just all too difficult. Co-creation, working with others to create something, is just so more effective than not working across both experts and users (who you should see as experts in their own right). It encourages improved buy-in and corporate memory. It is insight- and evidence-based. It exploits creative minds more fully, whoever they may be. It brings about advocacy and opens up networks.

    This approach, therefore, needs open-mindedness, willingness to hear inconvenient truths and commitment to attention to detail. Committing to these things together helps better creative thinking.

    Successful concepts come about because their creators understood their audience better than the audience themselves. How people frame their worlds and respond to norms is not necessarily conscious. Getting under people’s skin by reviewing existing research, carrying out fresh research where gaps are apparent, being imaginative in the design and execution of the research to truly understand motivations and willingness to change perceptions or behaviour, and checking channels and influencers provides a sound foundation for crisp proposition development and creative conceptualisation.

    Wherever possible we develop pen portraits or personae against which we can continuously test our thinking. This means we have ‘the audience in the room’ and allows those not involved in the co-creation development directly to appreciate the thinking and rationale.

    This is how we do it.

    We understand the problem – for example, some people are not very good at doing something, but they need to. We get to appreciate why people are reluctant. Are people informed by myths and untruths? There may be a primary resistance, but this may be beyond our immediate influence, such as cost, or timings, or penalties, but there could be supplementary resistance or behaviours that we could influence, such as normative behaviours – I don’t do something because none of my friends do – or cultural framing. Propositions can be developed that recognise more latent ambitions and motivations and then tested using pen portraits and then in wider, more conventional environs, such as focus groups.

    Propositions can be developed, and increasingly so, with a wide variety of invited expertise in the same room through facilitated workshops. These may already be within our own team, but also within the client’s team, although not necessarily in the direct client group, within customer groups and other ‘stakeholders’ – people with an interest in helping your target audience achieve your goals. The groups should be facilitated so that all ideas surfaced are captured, everyone gets to play a part and stimulus is loose enough to encourage development.

    The ideal result of this activity is something you can prototype and test. It doesn’t have to be a full blown pilot, just something that is sufficiently realised that the process people need to go through are apparent and can be critiqued and improved.

  • 5 Oct 2012 12:00 AM | Anonymous

    Edinburgh Airport has outsourced its IT infrastructure to Onyx, in a five year contract worth £3million.

    Onyx will provide infrastructure services including cloud services, networking support, datacentres access and 24-hour support.

    Head of IT at Edinburgh Airport said: “It is vital for us to have the IT capacity to support business growth, and the ability to implement the best technological solutions and quality of service for our passengers and airlines.”

  • 5 Oct 2012 12:00 AM | Anonymous

    A survey from cloud management specialists Zenoss revealed that only 18 percent of the company’s user community had deployed open source management platforms.

    While open source services have become increasingly prevalent within the cloud marketplace, the survey by Zenoss has revealed that such services have yet to be fully adopted by the IT community.

    While reports of failing in security and limited support were given for reasons of avoidance, the report revealed that 43 percent of those polled planned to adopt open source computing platforms in the future.

  • 5 Oct 2012 12:00 AM | Anonymous

    The EU has revealed three proposals aimed at developing the IT market.

    The stimulus proposals include improving infrastructure coordination, regularise and regulate online payments processes and enforce e-invoicing for public service contracts.

    The proposals are designed to develop and standardise the IT marketplace within the public sector while setting the trend for the private market.

  • 4 Oct 2012 12:00 AM | Anonymous

    T-Mobile USA and MetroPCS have announced a joint merger as “the leading value carrier in the U.S. wireless marketplace," the deal has seen MetroPCS pay $1.5 billion for T-Mobile capital.

    The new company will be jointly owned by MetroPCS with 26 percent of shares and Deutsche Telekom with 74 percent.

    The merger will increase network coverage of the company and increase its presence in the wireless provider market.

    MetroPCS chairman Roger Linquist, said: “"Ultimately, this combination will create a stronger wireless provider nationally with broader value offerings to better serve our combined customers and drive shareholder value".

  • 4 Oct 2012 12:00 AM | Anonymous

    Private NHS contracts worth £250,000,000 were signed this week according to Labour's health spokesman Andy Burnham in a speech during the Labour party conference.

    Burnham said that the Government had moved to a “market in healthcare” with increased privatisation of the NHS, he citied contracts including Arriva non-emergency ambulance services and Parkwood Healthcare’s patient advocacy groups services contract.

    Burnham voiced concern that privatisation had seen "care being fragmented and services becoming disjointed".

  • 4 Oct 2012 12:00 AM | Anonymous

    FirstGroup has experienced sharp losses from the scrapping of the West Coast rail contract with a fall in shares of 21 percent and £240 million lost in value from the company.

    The emergence of serious flaws from the DfT procurement process, removed FirstGroup's position to take over from Virgin in the running of the service in December.

    The procurement failure is expected to cost the taxpayer £40 million in compensation to the four shortlisted bidders.

  • 4 Oct 2012 12:00 AM | Anonymous

    Indian based Tata Consultancy Services (TCS) which specialises in IT services, will provide support services to the Disclosure and Barring Service (DBS).

    The DBS which along with the Criminal Records Bureau and the Independent Safeguarding Authority, prevents unsuitable persons from working within a variety of roles including children and other vulnerable groups.

    the Public and Commercial Services Union revealed that “the Home Office has announced its ‘intention to award’ the DBS contract to Tata Consultancy Services (TCS). The Home Office is currently finalising discussions with TCS on the implementations plans of the five-year contract which will start in 2013.”

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