Industry news

We’re all aware that the revolution in communications over the past decade has meant that businesses of all sizes now operate, not just in domestic and regional markets, but in a truly global one. Given this, it’s not surprising that many organisations now look for global service models from their suppliers. But how realistic is it to demand a worldwide approach to the outsourcing of recruitment, let alone the wider aspects of talent management?

Although a genuinely international model might at first seem attractive, the devil is of course, in the detail – detail which suggests that a single, templated approach to talent acquisition is unlikely to work effectively. We hear a lot of talk about a global recruitment arena and the movement of talent across borders, but it would simply be wrong to believe this has eroded the key differences between key regional and even local markets. Take, for example the use of networking tools, both physical and online.

While these may be highly effective in Western European countries such as France and Germany, they are much less so in Russia and the other countries of the former Soviet Union where candidates respond better to targeted, individual approaches. Online sourcing is also fraught with difficulties in one of the world’s fastest growing economies, China, because its rigorous firewalls render many of the tools commonly used in the US and UK, such as LinkedIn and Facebook, virtually useless.

This seems to means that, at least for the foreseeable future, in-depth local knowledge combined with international reach will provide the best competitor advantage in the battle for talent. The challenge is to turn a regional partner model into an effective global solution for the client. At Ochre House we’re attempting to achieve this with our partnerships in the USA and on the Pacific Rim by combining adaptation to individual geographical markets with a common, consistent approach to those things that should be regarded as ‘universal’ – the criteria that are non-negotiable wherever hiring is undertaken.

Into this category will fall such things as buy-in to the company’s business and social philosophy, its basic standards and its commitment to diversity and work/life balance. And we tend to believe this combination of local and international is not a stop-gap or a compromise while we wait for some completely global hiring platform to be devised. Perhaps the most effective solution to international talent sourcing model is not in the pipeline - it may have already arrived.

UNIT4 has announced that it will partner with Hampshire County Council to create a back office shared services programme that will be offered to public sector organisations across the UK in a bid to help them reduce costs and reform service delivery.

The services will be delivered collaboratively by Hampshire County Council and other public sector partners. Hampshire County Council will be the hosted service provider and through the partnership provide support and functional expertise for finance, procurement, asset management and HR & Payroll. UNIT4 will underpin the shared services delivery with its Local Government Platform, which is founded upon Agresso Business World and best-in-class partner solutions.

Hampshire County Council believes that the proposed services will help to address some of the impact of the current Government funding restrictions.

“This is an important partnership”, said Councillor Keith Evans, IT Champion for Hampshire County Council. “These shared services will be available to other public sector organizations across the UK. They will generate worthwhile economies of scale to all participating organizations and, equally important, will provide a more assured and quality-based mechanism and environment in which to undertake new initiatives.

"UNIT4 is a progressive company with innovative ideas that match our own. The agreement provides us with access to a cost effective ERP solution that can address the urgent needs of our potential customers today and provides a robust and scalable platform that can support any future expansion.”

ITC Infotech, a global IT services company and a fully owned subsidiary of ITC Ltd., has set up a Center of Excellence (CoE) for Oracle Industry Solutions. The company has established a close working relationship with Oracle across a variety of industries to provide cutting-edge solutions.

Mr. L N Balaji, President, US Operations, ITC Infotech said, “Our close working relationship with Oracle helps us stay ahead of the technology curve, thereby enhancing our value proposition to customers. With the CoE for Oracle Industry Solutions, we will further consolidate our position as a global leader in chosen industry domain solutions including Life sciences, Retail, Consumer Goods, Travel and Hospitality.”

The CoE for Oracle Industry Solutions will help ITC Infotech deepen capabilities and incubate expertise. Through the CoE, the company will work on best practices, develop new solutions and continuously add value to existing engagements. Additionally, the CoE for Oracle Industry Solutions will help ITC Infotech expand offerings across industries where it is already serving customers globally.

Mr. Balaji added, “Loyalty Marketing is a key growth area for ITC Infotech and we are witnessing significant traction in this area. Companies across the board are looking at enhancing customer relations and strengthening customer retention.”

buyingTeam, Europe’s largest procurement outsourcing specialist, has announced the renewal of its partnership with Universal Music UK, signing an extended three-year contract worth in excess of US$2 million.

buyingTeam has been working with Universal since 2003 to improve business performance through better procurement practices, including active cost management and the realisation of resulting savings. The company will continue to oversee the management of Universal Music’s indirect expenditure, ranging from media and creative services to facilities and overhead costs.

buyingTeam will also be responsible for a wide range of strategic and operational responsibilities such as the development and delivery of procurement strategies, stakeholder and supplier relationship management, strategic and tactical sourcing, contract management, spend analysis and risk mitigation for all Universal Music operations in the UK.

As both businesses and public sector bodies focus increasingly on procurement to drive organisational efficiency and effectiveness, many are turning to specialists to help to improve performance by implementing enhanced buying processes and behaviours. buyingTeam has a strong track record of working with a wide range of blue chip clients and changing underlying attitudes to buying. Through aligning procurement more closely with overall business objectives, buyingTeam and Universal Music UK have generated long term, sustained savings, which comparatively outperform the returns delivered through cost saving programmes.

The Universal UK account will continue to be managed by Paul Denyer, engagement manager at buyingTeam. Paul has led Universal Music’s engagement in the UK for two and a half years.

buyingTeam CEO Matthew Eatough commented: "Renewal of our relationship with such a highly valued client is a strong endorsement of the progress that we have made together. Through working closely in partnership with our clients, we can deliver extraordinary results. In addition to significant cost savings, we have encouraged the introduction of new buying behaviours and processes, which enable Universal to achieve the best levels of value over the long term.”

Universal Music UK’s CFO, David Bryant, commented: "The primary objective of our partnership with buyingTeam is to develop and implement an effective long-term procurement strategy. Today, we have superior strategic procurement processes in place that continue to deliver sustained improvements to our business.”

Consip, a public company owned by the Italian Ministry of Economy and Finance (MEF) with responsibility for public procurement, has awarded Accenture a four-year, $6 million (USD) contract to develop, build and maintain an eProcurement system that will help transform the way the Italian government manages its procurement operations by increasing efficiencies and ensuring value for money across suppliers.

Accenture will provide Rome-based Consip SpA with management consulting and IT services, overseeing the development and daily maintenance of a new eProcurement system to enable Consip SpA to fully leverage the latest eProcurement technologies and processes while reducing costs and improving efficiencies.

This project supports the Ministry of Economy and Finance (MEF) wider Program for the Rationalization of Public Expenditure in Goods & Services. Accenture won the public tender for this project leading a consortium in partnership with PwC. Accenture has worked with Consip SpA across a broad range of initiatives including strategic sourcing, eProcurement and marketing.

Gianmario Pisanu of Accenture’s Health & Public Service practice said, “This contract reinforces our committed and ongoing relationship with Consip SpA and underscores Accenture’s deep knowledge of our client’s business. Accenture will use its broad industry skills and insights from our global network to support Consip’s mission to reduce procurement costs across the public sector. We will work in partnership with our client to introduce an innovative eProcurement system that reflects superior knowledge of central and local administrative purchasing, best-practice supply chain management and high performance in the public sector.”

New BT security “out of the cloud” service presented at CeBIT 2011 in Hanover, Germany

BT has announced its cloud-based security solution - Managed Virtual Firewall Service (MVFS). MVFS will alallows companies to fully protect their internet access without having to invest in their own hardware or software. Add-ons such as URL filter, virus protection and intrusion prevention are also available.

BT has set up a virtual firewall for its customers in a BT data centre and handles any relevant updates as well as configuration, maintenance, licence management and monitoring.

Additional functions such as URL filtering, virus protection, intrusion prevention and extended reporting can be added depending on the service package.

“Many companies can ill afford continuous monitoring of the threat level and prompt installation of security updates” explains Dr. Frank Kedziur, Head of Business Continuity, Security & Governance Practice at BT Germany. “This new cloud-based firewall service allows our customers to avail themselves of the expertise of our security specialists and benefit from a firewall that is always up to date without having to invest in hardware or software themselves. As BT can react quickly to changing requirements, customers can also benefit from a flexibility they would hardly have when using their own equipment.”

HP Enterprise Services UK Limited has announced that Centrica plc has signed a seven-year outsourcing services agreement worth more than £247 million.

With the new agreement, HP will enable Centrica to move to a utility-based private cloud computing environment that will support Centrica’s change program, improve speed of deployment, help lower costs and support the company’s environmental objectives.

“Centrica is striving to improve our ability to respond to market changes to supply gas and electricity to homes and businesses more efficiently,” said Dave Bickerton, group chief information officer, Centrica. “We value HP’s utility computing capabilities and quality solutions that are flexible, cost-effective and help reduce our carbon footprint.”

The Big Society requires public and private organisations to work together if it is to stand any chance of becoming a success, according to global IT services provider HCL Technologies.

The Office for Budgetary Responsibility has predicted that as many as 330,000 jobs could be lost in the public sector, by 2015 as a result of the spending cuts. Back in October, the government insisted that it had planned to ‘facilitate a movement of jobs from the public sector to the private sector’, taking steps to ensure that the transition was a smooth one.

However, considerable doubt has been cast upon this plan after a recent survey of more than 500 companies in the private sector found that over half were unwilling to take on public sector workers. An additional 52 per cent believed that public sector workers were ill-equipped to work in a commercial setting. Furthermore, 75 per cent of these companies claimed that they couldn’t be sure that there would be enough jobs available to compensate for those lost in the public sector.

It seems that by setting out plans which will ‘presume’ that private (and voluntary groups, it should be noted) will run almost every kind of public service, the government is putting their trust, to a large extent in the private sector to deliver increased efficiency at a reduced cost to the taxpayer, with the outsourcing community set to benefit more than most as a result. However, many are now speculation on how will this work in practical terms.

Bindi Bhullar, director of global IT services provider HCL Technologies, commented: “A lot of IT service providers and their customers are confused by what the Big Society actually stands for and what real difference it is going to make to local business. We rarely hear it being explained in easily digestible language, which encourages those who don't want to understand it to resort to ridicule. Over the years, everyone has got so used to these flagship policy ideas being nothing more than political rhetoric.ˇ

“What we need above all is for the government to take a more active role in equipping public sector workers to manage existing and future IT projects. By training them in a broader set of skills, public sector workers will be more prepared for the transition into the private sector, and more suitable for the jobs that may exist there.

“One thing’s certain - if we are to look back in the years to come and see the Big Society initiative as a big success, then it will be important to have everyone - in both the public and private sector working together.ˇ

Dell Services has announced it has signed a six-year IT outsourcing contract with leading pan European travel company TUI Travel PLC.

Deploying managed infrastructure services, Dell Services will utilise its IT Infrastructure Library (ITIL)-based best practices and systems as well as cloud-based asset management capabilities to help TUI Travel boost cost savings and productivity.

Under the agreement, Dell Services will help TUI Travel standardise its tool set and infrastructure, specifically for IT services that support its employees, with Service Desk offerings such as Desktop, Laptop, and Printer support, and Managed Client services including Managed Active Directory and Exchange.

Specifically, Dell Services will provide a single point of contact for resolving technical issues and offer 24/7 service desk support, utilising disciplined workflows, automated process tools and industry best practices to help increase efficiencies and control costs.

The contract also includes the provision of hardware and use of Dell Managed Deployment Services, an end-to-end offering designed to help speed deployment time, save money, and provide comprehensive planning and project management to support IT staff.

Additionally, Dell Managed Print Services will be utilised to assist TUI Travel in modernising its printer fleet, which will help decrease the total cost of printing. Dell Managed Print Services will help enable TUI Travel to focus on its core business, and not the day-to-day management of a complex fleet of printers, copiers, faxes, scanners, and multi-function devices.

Services will be provided initially in the UK, Germany, France, Spain, the Netherlands and Switzerland.

“Through increased IT efficiency and cost reduction of technology ownership, our partnership with Dell will provide significant value to our organisation and will also enable TUI Travel’s team to focus on more customer-centric development,” said Jim Mann, CIO,TUI Travel PLC.

“It is our privilege to deliver innovative IT solutions that help TUI Travel serve its 30 million customers in 27 markets. With a standardised tool set and cloud-based infrastructure, we are excited to help TUI Travel drive cost savings and boost productivity for its operations across 180 countries,” said Eric Velfre, director, Dell Services.

Whichever way to look at it, the backbone of any strong, successful business relationship is the ability to work together toward a common goal.

Collaboration offers the opportunity to share the flow of knowledge and experience between individuals and organisations. Moreover, it gives organisations an excellent opportunity to establish an open dialogue to generate positive changes to the dynamics of how the organisations work together to deliver benefit and add value. This is particularly relevant in the outsourcing industry.

Matthias Mierisch, chairman and CEO of arvato UK and Ireland, said: “It is important not to rush into a partnership without first having a detailed and realistic understanding of what it is aiming to achieve. The only way this can be done is through extensive consultation in advance, and honesty from both sides is paramount.

“Clearly there always needs to be a degree of flexibility so that any unforeseen issues when transferring the service can be taken into account, but having a thorough and transparent strategy in place from the start is a vital foundation for a successful relationship.

“Whether in the public or private sector, any transformation of services must be supported by the organisation’s people. There is a significant challenge in transferring the necessary skills, knowledge, technical infrastructure, tools and techniques while ensuring that the change is embraced by employees at all levels.

“For this to work there needs to be an emphasis not only on process design, but also on the cultural aspects of the change. This requires extensive consultation with front-line staff in advance, followed by provision of necessary support and training throughout the transfer and beyond.

“Any outsourcing partner should be able to work as an integral part of clients’ businesses. Not only does this means respecting their client’s culture, representing their brand and supporting their employees, but also having the deep sector experience to create a service that can adapt to market pressures.

“Once an agreement is in place, measuring success and striving for continuous improvement and innovation is key, and it is essential that the measurement criteria are shared by both parties.”

As part of its activities in helping business organisations create solid and profitable relationships, the NOA has been working with other industry associations in collaboration with the British Standards Institute (BSI) to publish the first-ever standard on Collaborative Business Relationships.

The new Standard part one was formally launched at the House of Lords in December with the BS 11000-2 currently in development. It will provide additional guidance on practical implementation of BS 11000-1 within organisations and is due to be published later in 2011.

Adrian Quayle, NOA Board member, has been contributing to the British Standard. He said: “It is expected that the British Standard 11000 will become a requirement for companies across a wide range of public sector contracts which will obviously include many outsourcing deals.

“The guidance standard will help with the ‘how to’ aspects of establishing, managing and evaluating collaborative relationships in organisations from any sector, focussing on the key aspects of the methodology such as partner selection, risk and knowledge management and the internal assessment process.”

BS 11000-2 may draw upon case studies where the benefits of forming collaborative relationships (over non-collaborative relationships such as typical supplier-client ones) have been realised within organisations working to the principles of BS 11000, in terms of greater efficiencies and in demonstrating value-creation.

In shaping BS 11000-2, BSI hopes to engage with small and medium-sized organisations to ensure that their perspective is reflected in the guidance and the benefits of building collaborative relationships is achieved by different organisations across the private and public sector.

Chris Baldock, Managing Director of intY, said: “The BS 11000 standard will be a real benefit to the public sector. It will allow businesses to collaborate and work in partnership to a set standard that will ultimately help them to achieve a competitive edge.

“In some situations it is more efficient and cost effective to outsource certain resources. Focus on what you are good at, and partner with those particular companies that can add value to your organisation. Partnering should be seen as a mutual benefit, not a threat and this will help the industry to understand that collaboration will only make their businesses stronger. Adoption of standards will quickly address this providing commonality of approach and implementation that can only be good for the industry.”

The benefits of collaboration in any business are clear and it is hoped that the BS11000 will help organisations to share best practice and skills through their relationships in order to provide greater value.

Advances in technology have also helped to support a collaborative approach in outsourcing, with innovations such as virtualisation and the cloud leading to new ways of working, managing, innovating and outsourcing together. With more tools available for organisations to work together, it’s no surprise to find that more are taking the opportunity to do just that.