Industry news

The American technology giant CSC has admitted that accounts relating to its NHS Lorenzo contract contained substantial errors.

Business accounts were found by internal auditors to contain exaggerated income figures relating to the NHS contract. The income records contained discrepancies of £15.5 million.

CSC commented that the error was “an internal CSC accounting error and has no impact on our charges made to the NHS. It is entirely a matter for CSC and does not impact the NHS”.

New research from YouGov shows that the UK government needs to increase the simplicity of information requests in order to benefit from the quality of the data.

The research showed that more that more than four in five citizens claimed that they never knowingly entered false information when completing government documentation, placing data collected by the public sector as highly reliable.

Director for the public sector at SAS, Bernard Baker, said: “If the public sector adjusts its communication methods and tools in line with this feedback, not only will response rates improve, but so will the consistency and uniformity of the data being collected, putting public servants in a much stronger position to provide citizens with improved services.”

Global IT Anglo-Dutch services firm Logica, whose clients include companies such as BT, Shell, BAE Systems has recommended a £1.7 billion takeover offer by Canadian CGI Group Inc.

Logica has suffered from setbacks from the European economic downturn, which has seen many of the company’s key clients including government public sectors reduce IT spending in order to make cost-savings.

If the offer is accepted CGI will see their sales and staff numbers rise by over double and place the company in direct competition with firms such as Accenture, Cap Gemini and IBM. Rival offers should also not be ruled out from Indian companies looking at European expansion.

Logica chairman David Tyler said: "Given the very limited geographic overlap and CGI's strong reputation for successful integration, we believe this transaction will offer great opportunities for Logica's people."

The acquisition of Buddy Media by Salesforce comes on the back similar acquisitions by rival companies as they look to deliver on the social CRM in the cloud, with social marketing integration.

Buddy Media provides social marketing and specialised campaign management, with a strong sales pipeline and customer base including Mattel, L’Oreal and Virgin Mobile. The acquisition is expected to be around $800 million.

Carter Lusher Research Fellow & Chief Analyst at Ovum, commented: “it is extremely likely that Salesforce will invest heavily in Buddy Media's R&D and sales force. The Buddy Media brand will likely be retained.”

Global Engineering and IT services provider Mahindra Satyam have announced the setting up of an delivery centre for Aerospace and Defense in Toulouse, France, as part of the companies European expansion strategy.

Mahindra Satyam previously set up a German based Aerospace centre in 2008. The new centre is expected to ramp-up operations and create opportunities for local talent in Engineering, Information Technology and Communications domains.

CP Gurnani, CEO, Mahindra Satyam, said “The large talent pool coupled with excellent infrastructure in the region offers an environment conducive to driving business growth and creating a more seamless customer experience.”

Leicestershire, Nottinghamshire and Derbyshire police forces plan to merge their HR systems into one shared service.

The HR back office system will be provided by Capita in a £2.3 million contract over a 5-year period. The service will compile data for HR, duty management, health and safety and training for the combined three forces.

The combined shared service is expected to save the three forces around £900,000 per year. The back office system provided by Capita will allow for the future integration of payroll and accounting services in the future.

Deputy chief constable Peter Goodman, said: “For the police, a shared system means reduced costs, enhanced processes and effective business transformation.”

The government has admitted that the Communications Green Paper which was due to be published last year, has no fixed deadline.

The delayed Communications Green Paper which is meant to set the future policy for UK digital infrastructure and broadband is according to Ed Vaizey, minister for culture, still on track for publication by 2015. The Communications Green Paper is designed to set the regulatory framework for both the communications and media sectors aimed at pushing innovation and growth within the UK.

Ed Vaizey , said: “The Communications Review remains on course and, subject to the legislative programme, the government hope to introduce new legislation before the end of this parliament.”

The Welsh Government has published a report setting a target of £400 million in investment for delivering super-fast broadband up until 2015, for business and residents.

The report details funding of around £57 million from the UK government and £70 million from European sources, with the remaining funding coming from within the Welsh Government.

The report stated that Wales hoped to deliver high-speed broadband throughout the country by 2015, however the document failed to distinguish between what was classed as ‘high-speed’ or ‘super-fast’.

The Home Affairs Committee has expressed worry surrounding privatisation of IT services within police forces.

The Committee raised concerns regarding the procurement process, with Keith Vaz MP, Chairman of the Home Affairs Committee, commenting that: “greater private-sector involvement are being taken without clarity over their scope."

The Committee criticised outsourcing being carried between Surrey and the West Midlands Police for lacking in clarity, while highlighting the e-Borders programme as an example of wasted money due to the failure to establish clear goals.

A survey carried out by mobile and internet service provider Everything Everywhere recorded that 86 percent of UK businesses believed 4G would increase productivity.

The research also recorded that 93 percent of businesses wanted a 4G service across the UK as rapidly as possible.

The research comes as 4G faces delays from UK mobile operators. Martin Stiven, vice president of B2B at Everything Everywhere, said: “Half of the countries on the F20 list of the world’s biggest economies already have 4G, leaving British businesses at risk of falling behind rivals.”