Industry news

Prioritising the IT and technology needs of a business, while ensuring the IT budget is being used effectively, is arguably the biggest challenge facing CIOs and CTOs today. According to the October 2011 Forrester Research, Inc. report, “BC/DR Remain Priorities for 2012 But Take a Backseat to Cost-Saving and Efficiency Initiatives,” by Stephanie Balaouras, enterprises continue to spend an average of 6 percent of their budget on Business Continuity and Disaster Recovery (BCDR) efforts but in terms of overall priorities, BCDR will take a backseat to consolidation, business intelligence and virtualisation. The fact that these technologies have such a high priority makes the argument even stronger for BCDR.

Historically, the way technology solutions were developed and deployed meant CIOs and CTOs struggled with allocating budget, which often meant limiting investments in certain areas to cover other more pressing needs. Typically, technology solutions were one-hit wonders to address one, maybe two business needs at most. As such prioritising needs soon became a challenge and BCDR solutions were no exception.

However, when you take into consideration the areas enterprises are keen to invest in — virtualisation, infrastructure consolidation and cloud computing — the reality is these technologies are not discrete solutions like their predecessors. In fact, much of the hype has to do with the versatility they bring to IT and the businesses they support. By taking an overarching view of the organisation; what needs to be achieved and how technology can help, these solutions can and should be linked, including BCDR.

Business Continuity and Disaster Recovery in the Cloud Brings a Whole New Level of Cost Efficiency and Ease

Business continuity and disaster recovery solutions designed specifically for maintaining the operation of key business systems during a major event have traditionally been achieved via full physical backups and total replication. Often, this has doubled the cost of IT infrastructure needs, giving BCDR a reputation for being expensive and often unattainable. But virtualisation and cloud-based solutions have blown the BCDR physical paradigm out of the water. Businesses can use the cloud to better meet Recovery Time Objectives (RTO) and Recovery Point Objectives (RPO) in an easier and more cost-effective way.

At the end of the day, most BCDR budget decisions come down to how important or mission critical achieving a particular RTO and RPO objective is. In an ideal world, all businesses would choose the best possible RTO and RPO as possible. Who wouldn’t? But the reality is, when executives are shown the cost of a BCDR solution, all of a sudden the conversation moves from having the absolute best results to what amount of data or work loss is acceptable. Enter cloud computing and the pay-as-you-use model. Gone are the days when companies need to pay for additional computer resources for the occasional chance when they need them. Not to mention companies that own their own data centres and have redundancy and fail over efforts built in. This equates translating to additional infrastructure investments that are most likely rarely used.

By using cloud services for virtualised servers, storage, desktops and applications, businesses can ensure a redundant solution that meets their RTO and RPO objectives with minimal capital expenditures required. Additionally, data centres built for cloud services can offer BCDR not just at an inter-data-centre level but at an intra-data-centre level — providing an initial failover point locally before even having to physically leave the primary data centre.

The latest innovation in BCDR and where it is evolving is a complete, truly end-to-end strategy. Virtualisation and cloud will allow for everything from the desktop to the data centre and anything in between to ultimately have a BCDR solution available without breaking the bank.

BCDR Is Not Just About Preparing for Major Disasters

Natural disasters and national emergencies are typically what come to mind when companies think about their strategy for business continuity and disaster recovery. But the reality is that BCDR is about ensuring the business can continue to operate no matter what type of event or service interruption occurs. However, in a bottom-line-driven world, IT departments and executive teams cannot afford to bankrupt the business for the “what might happen” scenario.

In the end, it is up to the enterprise to determine how much risk their business can afford and what the best BCDR solution for their business is. The good news is that, thanks to virtualisation and cloud computing, the options are ever increasing while costs are decreasing, providing companies with economical solutions that provide even better BCDR coverage than ever before.

Translation — eventually every aspect of the business will be able to be BCDR’d.

India’s recent demand for European Union designation as a data secure country has brought the issue into the spotlight. Here we take a closer look at those nations which have achieved EU recognition and the benefits of doing so.

Article 25.1 of the Data Protection Directive (in the UK enacted through the eighth principles of the Data Protection Act, 1998) prohibits the transfer of personal data to a third county (i.e. a country or territory outside the EEA) unless that third country provides an adequate level of protection for the rights and freedoms of data subjects in relation to the processing of personal data. Several exceptions to this rule are available including, in particular, the use of the approved EC model clauses.

Data transfers to third countries can take place in many circumstances, such as where an EU- based business relocates functions to subsidiaries outside the EEA, establishes an offshore shared service centre which processes, for example, HR or payroll data, where data is transferred for offshore processing as part of an outsourcing agreement with a third party supplier or as part of a hosting or cloud computing deal. The onus is on the data controller to ensure that he complies with the eighth data protection principle in relation to any cross-border data transfer of personal data.

The European Commission has designated a small number of third countries as providing adequate protection. The European Commission publishes a list of its decisions on the adequacy of personal data in third countries together with copies of the Commission Decision and Article 29 Working Party Opinion on which the decision is based.

The European Commission has so far recognised the following countries: Andorra (2010), Argentina (2003), Canada (2002), Faroe Islands (2010), Guernsey (2003), Isle of Man (2004), Israel (2011), Jersey (2008) and Switzerland (2000); the primary data protection laws considered by the Working Party to provide adequate protection being:

 the Qualified Law on the Protection of Personal Data, 2003 (Andorra);

 the Argentinean Constitution, Personal Data Protection Act No.25.326 and Regulation approved by Decree No. 1558/2001 (Argentina);

 the Personal Information and Electronic Documents Act, 2000 (Canada);

 the Data Protection Act, 2001 (Faroe Islands);

 the Data Protection (Bailiwick of Guernsey) Law, 2001 (Guernsey);

 the Data Protection Act, 2002 (Isle of Man);

 the Privacy Protection Act, 1981 (Israel);

 the Data Protection (Jersey) Law, 2001 (Jersey); and

 the Law on Data Protection, 1992, as amended by Swiss Federal Council ruling of 1993 (Switzerland).

The Commission’s webpage listing needs to be reviewed carefully because it appears to list Australia and, although there is an air passenger data transfer agreement between Australia and the EU, no general finding of adequacy applies to Australia. New Zealand, which the Article 29 Working Party found to be adequate in April 2011, is not yet listed, so we assume that the European Commission has not yet made an adequacy finding. The delay may be explained because, according to the Working Party, some concerns exist in connection with direct marketing and the oversight of data transfers. Israel’s 2010 adequacy decision was not without a few bumps along the way either, with a formal objection from the Irish government (a political move linked to the alleged use of forged Irish passports by an Israeli intelligence agency in the assignation of a Hamas operative in Dubai in January that year), requiring a full debate and vote, rather than the shorter written procedure which allows automatic adoption absent any objections by the member states. One can imagine that territories, such as Guernsey, Jersey and the Isle of Man, received a rather smoother passage through their adoption of data protection laws closely modelled on the UK’s Data Protection Act.

The US has not been deemed as providing adequate protection, however personal data sent under the Safe Harbor scheme signed between the EC and the US government in 2000 is considered to be adequately protected. Not all US companies can qualify for the safe harbor programme, e.g. companies in financial services, transport and telecommunications. There are also several international agreements to which the EU is a party which permit and require the transfer of passenger names records of all airline passengers (e.g. Canada in 2005, US in 2007 and Australia in 2008).

The benefit of recognition is that personal data can flow from the 27 EU countries and three EEA member countries (Norway, Liechtenstein and Iceland) to a recognised third country without any further safeguard being necessary. The recognition process can however give rise to pressure brought to bear on the third country to undertake some remedial action. For example, whilst making a finding of adequate protection in the case of Argentina, the Working Party urged “the Argentinean Authorities to ensure the effective enforcement of the legislation at a provincial level by means of the creation of the necessary independent control authorities.”

What is not entirely clear is whether the Working Party monitors how its recommendations are dealt with, if at all, once a third party has obtained a decision of adequacy and whether it monitors and reviews amendments to existing data protection regulations and the introduction of new data protection regulations, with a view to reaffirming (or otherwise) an adequacy finding.

As data protection and security is increasingly high up on the corporate agenda, recognition itself may add a degree of comfort to the enterprise sending data to that third country (recognising however that adequacy is not the same as equivalent). As reported by Economic Times of India, the India government believes that “recognition as a data secure country is vital….to ensure meaningful access in cross border supply.” Underlying this seems to be the fear articulated by Ameet Nivsarkar, vice-president of Nasscom, that “European companies start insisting on a data secure status as a critical factor for giving business.” As the European Commission recently announced its comprehensive reform of EU data protection rules, perhaps we will see an uptick in third countries looking to achieve an adequacy designation.

Transport for London (TfL) is looking to sign a contract with a supplier for their coming roll out of real-time information (RTI) screens, which will improve services for customers by allowing them to view real-time information of service availability at stations.

The electronic service update boards (ESUBs) which will be situated in front of station gate lines will provide an overview of services at a glance for customers entering the station.

The £2m contract with a single supplier is set to last 4 years, and covers the manufacture and supply of the ESUB units.

TfL currently has 340 ESUBs across its underground network and intends to roll out further ESUB units for the Docklands Light Railway, the overground network, cable car and some train operating company sites. 100 of the oldest units of the existing 340 ESUBs, are now obsolete and cannot cope with the advanced software required to meet demands.

“Transport for London is committed to providing information to customers that allows them to make the most effective use of the network. Real-time information provided at stations is key to this, and is delivered through a number of channels and formats,” TfL said in the tender notice.

Telefonica has unveiled its new app to rival Skype, Whats App and Viber. The app allows smartphone users to communicate and send messages using their data allowance rather than using their minutes or text allowance.

Tu Me will be free to download and will be promoted to members of Telefonica's O2, Movistar and Vivo networks, which totals 300 million customers across the world.

The app will allow users to send messages, pictures, and voice messages with others who also have the app. Messages will be encrypted when transmitted and Telefonica has vowed not to analyse or provide third-party access to the contents unless required to do so by the courts.

"We've seen the growing popularity of communication apps on smartphones but we believe we've gone one better with Tu Me using our knowledge and insights of how people use their devices," said Telefonica Digital's chief commercial officer Stephen Shurrock.

Indian-owned call-centre, Firstsource, has said that the first minister’s announcement of 600 new jobs back in March of 600 jobs was a ‘misunderstanding’. A new call centre will be opened creating 600 job roles, many of these, however, will be filled by existing members of staff who will be transferred to the new call-centre.

Staff at the new operation run by Firstsource in Cardiff Bay will deal with call centre enquiries for the satellite television company BskyB, work is currently being carried out in Cardiff by the outsourcing call centre operator Conduit. The vast majority of the 600 people working at Firstsource will be transferred over from Conduit.

When asked whether the first minister's comments had been premature, a spokeswoman for Firstsource said: "We have never said that we were going to take on new jobs."

Cognizant announces first quarter 2012 results.

Highlights from the financials announcement include:

• First quarter revenue up 2.9% sequentially and 24.8% year-over-year;

• Revises guidance for 2012 revenue growth to at least 20%;

• Net headcount addition for the quarter was approximately 2,800

Revenue for the first quarter of 2012 rose to $1.71 billion, up 24.8% from $1.37 billion in the first quarter of 2011. GAAP net income was $243.7 million, or $0.79 per diluted share, compared to $208.3 million, or $0.67 per diluted share, in the first quarter of 2011. Diluted earnings per share on a non-GAAP basis was $0.86. GAAP operating margin for the quarter was 18.6%. Excluding stock-based compensation expense of $31.4 million, non-GAAP operating margin was 20.4%, slightly higher than the Company's targeted 19-20% range.

"Due to a slower than anticipated acceleration in demand as we entered the second quarter, we are adopting a more conservative stance for the remainder of the year and revising our guidance to at least 20% revenue growth for 2012," said Francisco D'Souza, Chief Executive Officer of Cognizant. "We continue to believe that we have the right portfolio of services to sustain our industry leading growth and also meet the changing demands in the market as clients continue to grapple with their dual mandates of cost containment and innovation/business transformation."

Smart City Technology is to be trialled in Greenwich Peninsular, a 190 acre riverfront area by the surrounding the Dome which is up for redevelopment.

Greenwich will play witness to the co-operation between five tech firms and an outfit called Living Plan IT, which markets a so-say ‘urban operating system,’ with UK HMG present to give its blessing to the plan and with the local council, Greenwich, also promising support.

The firms involved are Hitachi Consulting, Philips, McLaren Electronic Systems, engineering consultancy Buro Happold, Critical Software and contract management specialist 8over8. The aim is to develop and regenerate urban spaces like this part of London with new tech-based approaches.

The hope is Smart City technologies is to facilitate smarter, sustainable and intelligent-living which will lead to more efficient use of energy and other resources, providing the basis for innovative services for residents, businesses and governments as well as new jobs and exports.

In response to the changing landscape of the outsourcing industry, the NOA have introduced five new categories for the NOA Awards in association with Wipro Technologies. The Awards which is in its 9th year will take place in London on the 25th October 2012. The new awards, for which entries are now open, are:

• In-house Outsourcing Professional of the Year -sponsored by Olswang

• Shared Services Centre of the Year

• Outsourcing Rising Star

• Skills Development Programme of the Year

• The Outsourcing Works Award for Best Delivery of Business Value

Martyn Hart, Chairman, National Outsourcing Association said “Outsourcing evolves non-stop, and the awards categories have been supplemented this year to account for that. It’s a chance to reward the best efforts of those at the cutting edge – those improving services, saving the government money and improving business prospects. Suppliers, end-users, advisories, destinations, projects and professionals all covet these awards. Last year, we received more entries than ever before – a record we’re expecting to be broken this year. ”

As well as the five new categories, the following categories are also up for grabs:

• Outsourcing Service Provider of the Year

• Outsourcing Advisory of the Year

• BPO Contract of the Year

• IT Outsourcing Project of the Year

• Financial Services Outsourcing Project of the Year

• Public Sector Outsourcing Project of the Year

• Telecommunications, Utilities and High Tech Project of the Year

• Offshoring Project of the Year

• Offshoring Destination of the Year

• Outsourcing Contact Centre Provider of the Year

• Outsourcing End-User of the Year

• Award for Innovation in Outsourcing

• Award for Corporate Social Responsibility

• Award for Academic Achievement

The closing date for entries is Friday 27th July 2012, when the NOA’s panel of outsourcing experts will commence the judging process. Entering is free and straightforward – for details of the entry process download the entry pack at www.noa.co.uk . The shortlist will be announced in September.

Gemalto has been awarded has been awarded the contract for the management of UK drivers’ licences by The Driver and Vehicle Licensing Agency (DVLA). IBM had previously held the contract, believed to be worth £60 million to £300 million.

The supplier responsibilities will include providing between 40 and 80 million secure permit documents, digital tachograph cards and biometric residence permits.

“The DVLA is recognised as a centre of excellence for the issue of high security national documents like the Driving Licence and Biometric Residence Permit,” commented Simon Tse, Chief Executive Officer of DVLA.

“The new contract we have signed today delivers millions of pounds of saving for the UK taxpayer and allows DVLA to issue even more secure driving licences, and provide the next generation of high security smart cards for other parts of UK government. We look forward to working with Gemalto to ensure the UK’s cards remain among the most secure in the world.”

The government is unlikely to meet targets of installing superfast broadband to 90% of the UK by 2015. According to a new report from the London School of Economics (LSE), the current levels of funding will not suffice.

The report estimated that for the target to be met, the public funds set aside, around £1.3 billion for the scheme would need to nearly double. The remaining funding could come from the private sector. It was also stated that the £50 million set aside for the scheme in the latest Budget would not come close to the funding required.

The report, ‘Costs and Benefits of Superfast Broadband in the UK’, stated: “The government’s universal service commitment for basic broadband to reach the whole country by 2015 is on course.

“However, meeting the government targets of 100% fast broadband coverage and 90% superfast broadband coverage in 2015 will absorb not only the funding from public sources but also roughly equal funding from private sources.”

The report also noted that it was unclear whether the £50 million fund for a “wave of 10 smaller super-connected cities” would be for ‘superfast’ or ‘ultrafast’ broadband.