Industry news

  • 3 Aug 2011 12:00 AM | Anonymous

    Recently David Cameron launched a major defence of the Big Society and declared the initiative as ‘his mission’. Today, the Big Society is one of the most hotly debated topics in the country. Some are passionate about it and believe the initiative could herald important changes in the public and voluntary sectors whilst others view it as a ‘cover up’ for budget cuts.

    A recent survey found that nearly 40% supported the idea of the private and third sector delivering public services whilst the rest were either not sure or opposed the idea. Love it or loath it, the Big Society is firmly on the agenda for the public, third and private sector. The Big Society in its broadest sense is the devolution of power which will allow local communities, voluntary organisations, private companies and local governments to run services.

    The public sector is said to be facing some of the deepest post-War cuts with the government expected to slash £81bn in spending . Given the scale of the economic challenge ahead, public, charity and private sector organisations are expressing concern about how they are actually going to deliver services under the Big Society banner. It is argued that many citizens feel that some state run services are inefficient and badly organised and as such, transferring these services to local groups, charities and private organsations could make them more efficient . As some organisations and groups already have the specialist skills to run certain services, allowing them to manage them does make sense.

    The ‘Open Public Services’ white paper provides a clearer indication on how the Government wishes to decentralise public services. As part of the Government’s reforms, it is keen to increase the number of providers delivering key services to the public. The Government has already announced plans that it wants to introduce a ‘Rights to provide’ scheme which will allow entrepreneurial front-line staff to take over and run services as a mutual, co-op or joint venture by partnering with the private and third sector.

    In fact Cabinet Office Minister Francis Maude predicts that by 2015 up to one million public sector workers will be employee owners and partners in mutuals delivering public services . Mututals can take many forms and can range from health service staff wanting to launch an employee-owned social enterprise to help homeless, marginalised or vulnerable patients, to employees from local authorities getting together to form a mutual to deliver children’s services.

    One recent example has been the announcement from Wandsworth Council that employees at York Gardens Library , which faces closure, have formed a mutual trust to ensure its survival by partnering with local schools, a private school foundation and with help from volunteers.

    Another example of a joint venture was highlighted by the Institute for Public Care (IPC) at Oxford Brookes University which cited a care at-home project for people in Bath and North East Somerset suffering from motor neurone disease. This was said to cost £1,000 per person a month when provided by Neurological Commissioning Support, compared with £45,000 a month for unplanned hospital treatment . The Neurological Commissioning Support is a joint venture to improve end-of-life care between the MS Society, Motor Neurone Disease Association and Parkinson’s UK and it works with PCTs and County Councils.

    Whilst no one can downplay the fundamental role capital plays to fund any service - it is these kinds of collaborative strategy that will make a key difference to groups and organisations who want to deliver services in the Big Society.

    If a group of public sector workers are forming a joint venture or if you are an organisation already in existence, what do you need to bear in mind when forming partnerships? Every strategic collaboration involves the exchange of resources, so consider what you need in order to deliver your service and likewise what expertise and resources you can provide your partners in exchange. Infrastructure, professional expertise and technology are just some of the areas where a collaborative approach can help to achieve key efficiencies.

    Infrastructure: If you are looking for new premises, private and third sector organisations can help provide space in their own office or at least point you in the direct direction. In the case of York Gardens Library, it was a local school that provided the space to house the new library.

    Professional expertise: Your expertise in a service is likely to be of valuable use to voluntary and private sector companies. Beyond financial resources, there are other contributions a partner can bring to a venture which can be just as valuable. A partner with a strong business network, industry connections, client database and expertise can also increase the value of your organisation and improve the chances of success. So tap into your partner’s resources to ensure you benefit from expertise in areas such as finance, HR, legal and marketing.

    Technology: A number of people, including Lord Nat Wei who advises the Prime Minster on the Big Society, acknowledge the pivotal role technology can play when delivering services. Your technical partners should be able to advise you on how you can use technology to maximum effect.

    Depending on the nature of your service, consider what role technology and the internet in particular could play. Needless to say the internet is available 24 hours a day, so it does provide the ideal inexpensive vehicle to provide a range of services – especially if your service runs overnight. Setting up a web based self-help service or even the humble text message is worth considering when you want to keep costs low and create a service where people can have as much or as little interaction as they choose.

    As a charitable organisation, we ourselves have partnered with a number of public and private sector organisations and have done so for a number of years. However given the impending budget cuts, an increasing number of public sector organisations now see the collaborative approach as a pressing need. We have given partners access to our experts and we have benefited by having access to their specialist skills. Ultimately there is no secret potion to a successful partnership, just that an open and honest approach is the key ingredient to help create a mutually beneficial relationship.

    We recently helped a partner understand the complexities of communication technologies so they could use it to maximise their outreach and keep costs to a minimum. In turn they helped us achieve a higher level of understanding around the security protocols of the Information Assurance Framework which has now benefited us tremendously.

    In summary, both the public and third sectors have had to grapple with limited budgets to deliver services to the most needy. Decentralising public services is naturally an emotive and contentious issue. People have raised questions about whether public sector staff owned mutuals will have the culture, expertise and resources necessary to make a positive impact on public services.

    Some have also argued whether the mutuals will be any different to the ones they are replacing. The old adage ‘cash is king’ rings very true today. But given the scale of the budgetary cuts and the fact that some organisations, be it a mutual or a charity, will have far less resources than others, what we need is strategic collaboration. It must also be across private, public and third sector organisations so expertise and resources are shared.

    Before embarking on a strategic alliance, first conduct a thorough evaluation of your own operations from the bottom up to find suitable areas where collaboration can help you to be more progressive. Ask yourself constantly: what could we be doing differently? The strategic alliance must drive innovation and efficiency. Do not shy away from using technology. In fact technology should help to free up resources for you to use elsewhere. Your aim is to deliver a key service to people who need it the most and whilst this might sound like the obvious - ensure that your collaborative approach achieves this very task.

  • 2 Aug 2011 12:00 AM | Anonymous

    The term “sustainability” used to be a buzzword heard in company meetings. Today it’s an essential concern in the boardroom.

    In a global survey of 766 CEOs conducted last year, 93 percent said sustainability is critical to the future success of their companies. Their responses support what we’ve heard from Xerox customers for years: sustainability is no longer just “nice to have” but a fundamental part of business.

    Long before going green was popular and sustainability entered our daily vocabulary, Xerox put sustainability practices into place across the company. We know (based on decades of experience) the challenge organisations face in bringing their sustainability vision to life, especially when it comes to daily practices in the office.

    Taking the first step

    One of the first places to start is taking stock of how office equipment currently is used. The printer you can’t live without at work may be your biggest green offender. Older printers often take up a lot of energy and a single-function device is rarely as efficient as one that also copies and scans.

    Small changes to everyday habits can reduce an office’s carbon footprint, like these fast, inexpensive ways to reduce the amount of power used:

    1.Unplug devices that aren’t frequently used: Devices consume phantom power even while in standby mode. If there are scanners, printers, or guest computers that aren’t needed every day, unplug them in between use.

    2.Purchase ENERGY STAR-qualified equipment: When purchasing new office equipment, consider the cost and features and how it will impact your energy use. Arm yourself with a list of products that are ENERGY STAR qualified to make a smart purchasing decision.

    3.Make use of energy-saving settings: Enable the built-in energy-saving settings found on current technology products. These are like the low-power mode on your printer and the hibernation mode on your computer.

    Document and Printer Management

    Over the years Xerox has seen a number of common practices that hinder efforts to reduce an organisation’s carbon footprint. One of the most common is the tendency to support far more devices than necessary, including old, energy-inefficient machines.

    Other challenges to sustainability include:

    • Lack of departmental control over how / what people print.

    • Devices not placed in an optimal position, so they are either under- or over-utilised by staff. Energy can be spent unnecessarily if staff don't make the most of available devices.

    • Ordering and storing more consumables than needed. This takes up valuable office space.

    • Unconnected network-enabled devices aren’t remotely monitored or proactively fixed, leading to an excess of printer-related calls to the IT helpdesk and more engineer site visits.

    Organisation-wide print policies to restrict print volumes can help with many of these challenges. The policy could include:

    • Mandatory double-sided printing.

    • Limiting job sizes.

    • Developing rules to ensure certain document sizes and types are printed only on certain devices.

    As simple as these steps are, we’ve found many businesses don’t implement these well.

    And there are other areas for improvement. Innovations in printer hardware and software, such as new energy-saving printers which include sleep, can help significantly. And some devices feature green-friendly parts made from recyclable plastics. There's also new imaging technology like Xerox’s proprietary solid ink which has substantial sustainability benefits. A solid ink printer or multifunction printer uses solid sticks (or blocks) of no-mess, non-toxic ink instead of toner or inkjet cartridges. It is easy to use, produces great colour print quality, is cost-effective, and very good for the environment.

    These innovations, combined with an organisation’s proactive approach to managing its own unique printing environment in a more sustainable way can go a long way toward ‘greening’ a business.

    Seeking Assistance

    Many organisations outsource print management to address these issues. Our customers have realised cost savings of up to 30 percent whilst also reducing energy usage, solid waste and carbon footprint by at least 20 percent (and in many cases significantly more) across the lifecycle of devices.

    We do this by introducing a managed print service (MPS), which gives an organisation visibility into its document output costs. This environment is then managed on an ongoing basis whilst delivering against mutually agreed KPIs and SLAs. At Xerox, we’ve seen this approach deliver impressive results for a number of different clients – from the Sandwell Metropolitan Borough Council to defence provider Selex Galileo.

    Like the CEOs questioned in the survey, these organisations see sustainability as critical to future success and have sought help in changing what was once just a vision into reality.

  • 2 Aug 2011 12:00 AM | Anonymous

    Accenture to Deliver Information Technology and Finance and Accounting Services to Intertek under Outsourcing Contract

    Accenture has entered into an agreement with Intertek, a leading global provider of quality and safety solutions, to provide Intertek with global IT and finance and accounting (F&A) services on an outsourced basis. The agreement includes the provision of technology infrastructure, application management and back-office accounting services. Financial details were not disclosed.

    Under the global agreement, Accenture will provide F&A business process outsourcing (BPO) services to Intertek through an Accenture global delivery centre in Delhi, India. The agreement includes services currently delivered by Intertek across ten English speaking countries and the programme will be implemented over the next two years.

    Accenture will also provide global technology infrastructure and manage Intertek's bespoke technology applications; supporting the group's strong global growth programme and enabling efficient integration of acquisitions.

    Following a sustained period of significant growth, including a number of acquisitions, Intertek is seeking to integrate and standardize its finance and technology functions across a number of geographic locations.

    “As part of our Intertek as One programme, our collaboration with Accenture will support Intertek's growing IT and accounting requirements across ten countries. This change will provide an efficient, scalable platform to support Intertek's growth program and generate near term cost savings.” said Lloyd Pitchford, Chief Financial Officer of Intertek Group.

    “The Intertek and Accenture agreement aims to create a high performing outsourced shared services environment for Intertek’s finance and IT support functions,” said Paul Dillon, senior executive in Accenture’s Industrial Equipment Group. “We are focused on helping Intertek simplify its back office processes in these areas and delivering cost synergies across the Group”

    Accenture will deliver the services both from client sites

  • 2 Aug 2011 12:00 AM | Anonymous

    The Cabinet Office has claimed that Whitehall has cut millions of pounds from departmental costs, including £300 million from day-to-day IT expenditure and much more from large contracts including technology.

    This follows Francis Maude’s pledge in October last year to leave “no stone unturned” in the hunt for more savings at the centre of government, delivering better for less, to address the deficit while protecting the front line and will help departments live within their tighter budgets.

    The savings figures released have come from efficiency and reform measures implemented across government and have been independently audited. The savings include:

    Smarter procurement

    •£400 million saved by taking stronger control of our marketing spend, we have reduced spend through the Central Office of Information on relevant categories by 80 per cent.

    •£360 million saved by centralising spend on common goods and services

    •£800 million saved from renegotiating deals with some of the largest suppliers to government, equivalent to 6 per cent of a full year of spend with those suppliers.

    Major Projects and ICT

    •£150 million saved from 2010/11 budgets for government’s major projects, by halting or curtailing spending; and

    •£300 million saved by applying greater scrutiny to our ICT expenditure, departments have stopped or reduced spend on low value ICT projects.

  • 2 Aug 2011 12:00 AM | Anonymous

    CSC has announced it has closed the acquisition of iSOFT Group Limited, one of the world’s largest providers of advanced healthcare IT solutions.

    Adding iSOFT’s 3,000 global employees, including those from major research and development centers in India, Spain, UK, Australia, New Zealand and Central Europe, expands CSC’s capability to support existing customers, develop more innovative solutions, and adds a robust set of clients in new and emerging markets.

    More than 13,000 healthcare providers and governments in 40 countries use iSOFT’s e-health software solutions to manage patient information and drive improvements in their core processes. With the expertise and experience of more than 1,000 development professionals and more than 200 clinicians, iSOFT solutions touch more than 200 million patients across five continents every day, and its systems are installed in over 8,000 hospitals and clinics. This scale has allowed iSOFT to keep abreast of the latest trends in healthcare technology and practices and translate them into innovative and practical solutions.

    “The completion of this acquisition is a milestone in the expansion of our global healthcare business,” said Michael W. Laphen, CSC chairman, president and CEO. “CSC is at the forefront of emerging healthcare technologies, giving our clients access to an expanded range of innovative capabilities.”

  • 2 Aug 2011 12:00 AM | Anonymous

    Windstream Corp. has entered into a definitive agreement to acquire PAETEC Holding Corp. based in Fairport, N.Y., in a transaction valued at approximately $2.3 billion.

    "This transaction significantly advances our strategy to drive top-line revenue growth by expanding our focus on business and broadband services," said Jeff Gardner, president and CEO of Windstream. "The combined company will have a nationwide network with a deep fiber footprint to offer enhanced capabilities in strategic growth areas, including IP-based services, data centers, cloud computing and managed services. Financially, we improve our growth profile and lower the payout ratio on our strong dividend, offering investors a unique combination of growth and yield."

  • 2 Aug 2011 12:00 AM | Anonymous

    Outsourcing giant Capita will acquire AIBIFS, the international financial services business of AIB, its second acquisition in a fortnight.

    The acquisition will be made for a cash consideration of £29m, on a cash free, debt free basis.

    On completion of the acquisition, the business will integrate into Capita's investor and banking services division.

  • 2 Aug 2011 12:00 AM | Anonymous

    Martyn Hart, chair of the National Outsourcing Association, writes for the Guardian and says that better relationships and benchmarking can make government a smarter buyer of IT services.

    Martyn comments :"Two documents emanating from Whitehall within days of each other last month – the Open Public Services white paper, and the Cabinet Office Guidance for Offshoring - point to an escalating level of outsourcing in government support services.

    Last week, another document – the provocatively entitled Government IT – A Recipe for Rip Offs, was scathing in its opinions on how government lacks the requisite expertise to handle such deals, alleging that it is paying massively over-the-odds for IT services.

    Sandwiched in between these documents was a report from the National Audit Office that told us, despite spending roughly £275m on training in 2009-10, the government had no accurate data on the timings, costs and benefits (if any) of its skills development programme. If government manages its IT outsourcing deals in the same equivocal fashion, it is no surprise that there has been a repugnantly thoughtless waste of exasperated taxpayers' cash."

  • 2 Aug 2011 12:00 AM | Anonymous

    Genpact Expands Operations into Brazil

    Genpact Opens Center in Sao Paulo to Serve Anchor Client Astra Zeneca, Other Global Clients and the Brazil-to-Brazil Market

    Genpact Limited, a global leader in business process and technology management, has announced the opening of operations in Brazil, its first location in South America. Located in São Paulo, Genpact is now providing services for Astra Zeneca, with plans to serve additional global corporations for their Brazilian businesses as well as establish business operations for the burgeoning Brazil-to-Brazil market.

    Genpact has begun providing finance and accounting (F&A) services to Astra Zeneca from this center and is also providing IT services to a financial services client. Genpact is aggressively training and recruiting for additional employees so that it can continue to grow its broad portfolio of business process management services from this location. In line with its strategy in all global locations where it operates, Genpact will rely on local leadership hires to lead its growth and staff client projects, thus creating jobs in the surrounding community.

    In conjunction with the inauguration of the center this week, Thomaz Bonato, CFO, Astra Zeneca Brazilsaid, “We are pleased to work closely with Genpact to get this center established in São Paulo and running seamlessly and are confident that they will continue to provide best-in-class F&A services for Astra Zeneca along with many other companies. We know that Genpact shares our vision of the business growth potential here in Brazil, so this will be an exciting journey for both companies.”

    “Genpact’s expansion into Brazil is in line with our growth strategy to bring our global business practices and expertise to rapidly growing emerging economies to serve global corporations expanding there as well as local growth companies,” said Tiger Tyagarajan, president and CEO, Genpact. “We are thrilled to partner with our key client Astra Zeneca in establishing our center in São Paulo and we look forward to growing our Brazil business with them and many other clients. We will immediately be able to bring our global knowledge of managing end-to-end business processes to drive better outcomes for our clients.”

  • 1 Aug 2011 12:00 AM | Anonymous

    L’Oréal, a leading global cosmetics and beauty company has awarded a three-and-a-half year procurement co-sourcing contract to Xchanging, the business process and technology services provider and integrator. As part of the contract, Xchanging will manage a significant amount of indirect procurement on behalf of L’Oréal across five countries – France, the UK, Germany, Italy and Spain. The contract runs to 31st December 2014.

    Xchanging will operate on a co-sourcing basis working alongside L’Oréal’s purchasing team to streamline purchasing processes and improve overall quality and cost. The contract spans various categories of indirect spend including: Information Technology and Telecommunications, Facilities Management, Human Resources, Light Transport and Logistics Supplies, Travel, Industrial Supplies & Services, Utilities and Laboratory Supplies. Xchanging will also provide procurement management activities including reporting, supplier and contract management.

    L’Oréal is present in over 130 countries, with 67,500 employees world-wide. Its brand portfolio includes: L’Oréal Paris, Garnier, Maybelline, Soft Sheen Carson, Matrix, Redken, L’Oréal Professional, Kérastase, Vichy, Diesel, Inneov, La Roche-Posay, Lancôme, Biotherm, Khiel’s, Shu Uemura and Armani, Cacharel and Ralph Lauren fragrances. The company acquired The Body Shop in 2006.

    Denis Royer, Managing Director, Xchanging Procurement Services Europe, added, “We are delighted to have won this contract with L’Oréal after a rigorous competitive process, enhancing our leading position in the European procurement services market. We look forward to working closely with the L’Oréal team and delivering the savings and benefits they expect from Xchanging”.

    Xchanging Procurement Services manages annual indirect spend of over €4 billion on behalf of large corporations and services customers across a range of industries globally. We help maximise the value our customers receive from the money they spend and simplify the administration involved in the purchasing process. Offering a complete suite of procurement services, Xchanging deliver through a combination of high-calibre supply market specialists, technology and process expertise.

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