Industry news

Cardiff is set to be home to one of the biggest software centres in Wales as part of a £4.3 million BT programme to create a global network of leading edge IT development centres.

Cardiff joins Glasgow and Belfast in a network of satellite centres that supports BT’s strategy of co-locating software development engineers in state of the art global development centres. Co-locating software engineers allows greater collaboration and enables the company to deliver better quality software, faster and cheaper than before.

Housed at BT’s International Data Centre in Cardiff Bay the centre, due for completion by the end of March 2011, will be home to around 200 software development engineers.

Incorporating the very latest multi-media communications technology, the centre will have three futuristic ‘real-time’ collaboration stations known as ‘pods’ with networked electronic whiteboards and video touch screens linking technology teams and customers from around the world to develop and deliver new IT solutions.

Andrew Board, project director for BT Innovate & Design said: “The facility will make it one of the biggest software houses in Wales. Locating our technical teams under one roof and combining this with the latest Agile working practices will radically speed up the software development process as we bring new products and services to our customers, as well as reducing costs. There is really no limit to what can be achieved in this collaborative working environment.”

Cllr Neil McEvoy, deputy leader of Cardiff Council and Executive Member Economic Development, said: "I'm delighted that BT has chosen Cardiff to be a part of this network.

“Some 4,500 people in Cardiff are employed in ICT, and this investment shows the confidence that BT has in the sector in our city. It will also attract the type of jobs that will help develop Cardiff as a modern competitive, knowledge-based economy."

The software solutions being developed in Cardiff range include network management solutions and ICT solutions for external customers.

This investment underlines BT’s commitment to bring the latest technology practices to Wales.

The Government has put forward proposals which will allow service providers (ISPs) to create “fast lanes” and “slow lanes” which websites will only have access to if they pay an extra premium.

This two-tier proposal has angered campaigners who say that the bid goes directly against the principle of net neutrality – the principle that all internet traffic should be treated equally – is one of the cornerstones of cyberspace and ensures that providers like BT, Virgin or Sky give a simple blog the same level of access as a website for a major corporation or institution.

The Government says that its intention to bring in a system where providers could charge money for a better and quicker service is due to future internet upgrades however many see the move as amounting to the death of democracy online.

The finalists have been announced in this year's e-Government National Awards.

The UK’s most closely watched public sector technology awards, supported by the Prime Minister David Cameron, recognise excellence and innovation in digital initiatives in national and local government, the NHS, education and the third sector.

The Awards ceremony, attended by ministers, top-civil servants and technology experts from the public and private sectors, will be held on Thursday 20 January at the London Guildhall.

The e-Government National Awards 2010 finalists

1. Building a fairer society with e-Government services (sponsored by KPMG)

• Barnsley MBC & South Yorkshire Police - Neighbourhood Watch / Good Neighbours Scheme

• The Charity Commission for England and Wales - Charity Commission Website Development

• City of Lincoln Council - Heritage Connect Lincoln

• Ealing Mencap & ESCAN - Ealing Help

• St George's, University of London - Taste of Medicine

• Westminster City Council - Westminster's Digital Inclusion Framework

• Tavistock and Portman NHS Foundation Trust - Big White Wall Online Wellbeing Service

2. Central e-Government excellence: Take-up & usage growth

• Department of Finance and Personnel, Northern Ireland - NI Direct website

• Department for Work and Pensions - Response to Economic Downturn

• Directgov - Directgov Travel News mobile application

• Charity Commission - Charity Commission Online Registration

• Department for Work and Pensions - Jobseekers Allowance On-Line

• HM Revenue & Customs - Business Tax Programme - VAT online filing

• Home Office - Adelphi ERP Shared Services

3. Central e-Government excellence: Team

• Welsh European Funding Office - WEFO Online

• Department of Finance and Personnel, Northern Ireland - NI Direct website

• National Policing Improvement Agency - IMPACT Programme

• NHS Connecting for Health - N3 technology team - collaborative working, connecting healthcare

• Ministry of Defence - Next Generation HR e-Resourcing Project

• Department of Health - Prison Health IT programme

• Scottish Government - Engage for Education

4. e-Government excellence in Learning & Skills

• Department of Health - e-Learning for Healthcare: e-Safeguarding Children and Young People

• Department of Health - e-Learning for Healthcare: e-SRH (Sexual and Reproductive Health)

• Crown Prosecution Service - Prosecution College

• Aberdeen College - StudentNet in Aberdeen College

• NIACE - TeesLearn

• Skills Funding Agency - Next Step, the Integrated Adult Careers Service web channel

• NHS Choices - NHS Choices Community Intermediaries Training Programme

• The Fire Service College - e-learning to UK Fire and Rescue Services

• NHS Education for Scotland - NES ePortfolio

5. e-Government excellence: For sustainable, 'green IT' or 'carbon-efficient' services (sponsored by KPMG)

• Department of Health - e-Learning for Healthcare: e-Safeguarding Children and Young People

• Land Forces, Ministry of Defence - Land Forces Enhanced Video Telephone Conferencing

• Queen Margaret University - Beyond thin-client: green IT at QMU

• Hampshire County Council - Hampshire's scalable, efficient 'green' Data Centre

• Cornwall Partnership NHS Foundation Trust - E-enabled innovative shared learning

• Southend Borough Council - Southend Borough Council's ICT Strategy 2010-13

• Bristol City Council - Green Digital Bristol

6. e-Government excellence: Innovation in strategy at a local level (sponsored by Pitney Bowes)

• Barnsley MBC & South Yorkshire Police - Neighbourhood Watch / Good Neighbours Scheme

• Peterborough City Council - Verto, Internet based Portfolio Management

• West Yorkshire Police - West Yorkshire Police iPortal

• London Borough Redbridge - YouChoose

• Greater Manchester and Cheshire Cardiac and Stroke Network - Wireless Telemedicine in Primary Care

• Birmingham City Council - Customer First Transformation Programme

• The City of Edinburgh Council - Mobile Working - Edinburgh Building Services

• South Yorkshire Police - South Yorkshire Police BlackBerry deployment

7. e-Government excellence: Innovation in strategy on a national level (sponsored by Vodafone)

• Welsh European Funding Office - WEFO Online

• Welsh Assembly Government - The PSBA Network: The UK's First Public Multi-Sector Network

• NHS Direct - Online Health and Symptom Checkers

• Central Office of Information (COI) - RAF Reserves Recruitment Process

• Charity Commission for England and Wales - That's -e-asy (electronically applied services for you)

• NHS Connecting for Health - N3 Managed Video Conferencing Service - transforming the way the NHS works

• Scottish Government - Engage for Education

8. e-Government excellence: Leadership & Professionalism

• Department of Health - e-Learning for Healthcare: e-Safeguarding Children and Young People

• Peterborough City Council - Verto, Internet based Portfolio Management

• Department for Education - Information Workplace Platform

• Nottingham University Hospitals NHS Trust - Collaboration and Communication Technology at the Heart of Hospital Transformation

• The Metropolitan Police Service - The Metropolitan Police Service's Police Forensic Liaison Unit

9. e-Government excellence: Shared Services

• Welsh Assembly Government - The PSBA Network: The UK's First Public Multi-Sector Network

• University Hospitals of Leicester NHS Trust - McKesson Shared Services - University Hospitals of Leicester NHS Trust

• Scottish Police Services Authority - Scottish Police Services Authority National Service Desk

• DWP Shared Services - NHS NSS PECOS Consortium Project - NHS National Services Scotland Consortium

• DWP Shared Services

• Department for Education - Employee Authentication Service (EAS)

• Northern Ireland Office - Causeway Data Sharing Mechanism

• Home Office - Adelphi ERP Shared Services

10. Local e-Government excellence: Take-up & usage growth

• Oxfordshire County Council - Registration Service - Oxfordshire Registration Service: website and e-services strategy

• City of Lincoln Council - Heritage Connect Lincoln - www.heritageconnectlincoln.com

• Department for Education - Connect Digitally Online School Admissions Project

• Hertfordshire County Council - Intalink Website

• Kirklees Council - Looking Local

• Lincolnshire County Council - School Administration Online System Project

• Aylesbury Vale District Council - AVDC's SMS texting service

11. Local e-Government excellence: Team

• Hampshire County Council - Hampshire IT - providing continuity in the face of adversity

• Learning and Skills Network (LSN) - M-learning - A tool for transformation in Sheffield (MATTS) - phase two

• Department for Education - Connect Digitally

• Calderdale Metropolitan Borough Council - “More for Less" - How I.T. can deliver Value for Money

• University Hospitals Coventry & Warwickshire NHS Trust - Electronic prevention of potentially fatal blood clots in hospitalised patients

• Oxfordshire County Council - Registrar's Online Services

Capita has warned that its sales would be weaker than previously anticipated as the government’s spending cuts start to bite.

Capita has previously stated that the squeeze on public sector spending would create small short-term pressure. The group provides IT services to local authorities to running the teachers’ pension scheme.

As well as tighter public sector spending, sales growth during 2010 would also be adversely affected by an “unusually high degree of revenue attrition” – the loss of existing customers and their associated contribution to turnover – and sluggish sales to date in the second half of the year.

Capita said the cuts would “subdue revenue growth in the second half of the year more than previously anticipated”.

Global technology, consultancy and outsourcing company, Accenture has stated that it aims to hire 5,000 more people in the next 9 months in the Philippines.

During a press conference, Bill Green, Accenture chairman and Chief Executive Officer, said that the company will increase its workforce to 25,000 by end-August next year, the end of its current fiscal year 2011.

Accenture Philippines also inaugurated three additional sites: one each at McKinley Hill in Taguig City, Eastwood in Quezon City and Robinsons Cybergate in Cebu City, and aim to start operating two of the sites from next month. Accenture now has 13 centers all over the country. "This country is source not only of incredible talent but also of ideas and innovation. We are incredibly optimistic in partnering with this country to achieve great things," Green said.

IT systems are at the heart of modern business and the development of new software applications and the maintenance of existing systems, are both critical to ensure productivity, performance and profitability. Advances in software technology over the last 20 years have allowed increasingly more complex business solutions to be created, enabling companies to offer customers exciting new services and products. However, software development processes still suffer from the same problems that they have encountered for the last decade, regardless of the technologies being used.

But why is offshoring software development still considered so risky? All software projects have associated risks. One of the major sources of risk results from changes that occur during the project’s lifecycle. In its simplest form, this is normally assumed as changing the software user’s requirements. However this is not confined just to this area. For example, changes to the makeup of a project team, changes in the technology being used and changes to any external systems where new software might be needed, all present real risks to projects.

It is worth remembering that building any kind of software by using talented expertise abroad can provide a lot of know-how and at the same time reduce expenditure compared to using a company from North America or Europe. At the same time let’s not forget that North America and Europe are two of the world’s biggest consumers of offshore software development. However, here at FusionExperience, we have found that the biggest risk of all to a business is poor communication. Although English is the most common language to conduct business in, written and verbal communication can lead to ambiguity and misunderstandings. There is a need to find a blended approach between offshoring and onshoring that reduces the huge communication risk.

In order to reduce communication problems, businesses looking to outsource their software development need to introduce a communications programme internally. Traditionally it was believed that this would only effectively work if any internal communications were documented as narrative. However this is seldom the case, as written words can also lead to ambiguity and confusion when translated. Indeed, the value of such narrative rapidly erodes as complexity increases with conditional logic such as, ‘If-Then-Else’.

This problem has been inadequately addressed by a number of techniques such as using use cases and diagrammatic representations to go alongside standard narrative formats.

The newer generation of simulation and visualisation tools, with an embedded transparent and collaborative space for shared feedback, provide powerful alternatives to traditional ways of specifying requirements and transferring this knowledge to the offshore partner.

The introduction and implementation of a simulation, visualisation and collaborative communications platform can materially reduce the cost of coordination between onshore and offshoring working. At FusionExperience we use the leading product on the market called iRise. A company’s communications process works at its best when rework cost is reduced to a minimum. In fact, case study evidence has shown that the use of a simulation, visualisation and collaboration platform can reduce overall software development costs by around 34%.

Adopting a simulation, visualisation and collaboration platform for communications, whilst developing systems that deliver what the users actually want, will undoubtedly produce software of a higher quality and fit to purpose. This typically results in software that is easier to maintain, adapt and revise, thereby reducing the long term operational costs and associated risks.

Freddie McMahon, head of customer experience at FusionExperience .

We held the first of our series of interactive webinars and the insights garnered into ‘Operating Model Strategy’ were fascinating. Although the webinar targeted the asset management sector, the issues raised were sector agnostic. Two key topics were covered and discussed. The first is understanding the need for an operations strategy and the second topic was considering the conditions for when companies should review their operating strategies.

When considering operating model strategy, two questions are clearly prominent on the participants’ minds, namely why to have one in the first place, and why or when it should be reviewed. Answering these two questions will identify the key elements that a good operations model must contain. Examining what happens if you don’t have an operating strategy can start to answer this, namely sub-optimisation, urgency winning over importance and inefficient allocation of resources.

Without a holistic approach, decisions are made without considering the overall implications.

Examples include:

- If considered in isolation, the decision to launch a new product may add unwarranted complexity to the operating model, adding cost that erodes competitiveness.

- There can be a failure to leverage existing capabilities across different product sets or jurisdictions.

Crucially, over time the product and service set can become disjointed and have no meaning for the customer.

This has important implications for the contents of an operations strategy. It must deliver an efficient product launch process that considers the impact on the operations as a whole. Moreover it must have clear links to the service proposition, and to the brand strategy.

A second effect of not having a strategy is that urgency tends to win over importance.

One frequent manifestation of this is in managing outsource suppliers. For very good short term reasons, additional services are taken from existing suppliers, complicating the service model.

Retained oversight staff are reduced, cutting costs with no immediate effect on service levels.

Over time, however, knowledge of the operations is reduced, and this degrades the ability to execute change projects. This increase in complexity and the lack of knowledge severely constrains the ability to move to another supplier, with a consequent loss of power when contracts are renegotiated. As a result the competitiveness of the firm is reduced. A good operations strategy can actually speed the product launch process, by providing a clear context within which decisions can be rapidly made.

A third effect of not having a strategy is that it results in the inefficient allocation of resources.

It is important to have the ability to make rapid decisions in response to market demands. However, the true value of any investment is seldom in the initial product launch that is required. It frequently comes from the re-use of the resultant capability across many products.

It is therefore important that the operations strategy articulates a shared and coherent view of the development roadmap, to provide a context for individual product decisions. Individual product launches and other change project decisions can be prioritised in line with the operations strategy.

Whilst this shows the pitfalls of not having a strategy, the work required to develop a good quality operations strategy can be daunting. In world where time is the scarcest resource, then spending time reviewing your strategy can be an expensive diversion.

This illustrates the importance of our second question: “When should you review your strategy?”

The simple and short answer is ‘When the world changes’. What do we mean by this? When the assumptions that a strategy is based on change, it should be reviewed.

A good operations strategy document must therefore make explicit the assumptions on which it is based. These assumptions should be systematically validated at least annually. A full review of the strategy is neccessary if (and only if) these assumptions are no longer valid.

Key assumptions underlying an operations strategy will include the business strategy. This should be examining if there is any change in target clients, distribution channels, or product set. In turn these decisions will be driven by changes in customer and competitor behaviour.

A second key assumption is the capability of the service providers. In recent years, the capability of the outsource providers has been transformed. The successful service providers have been extending their geographic reach, both by acquisition and by investing in global platforms. This investment has greatly increased automation, either by achieving ‘straight through processing’ without human intervention, or by the adoption of image and workflow or other automation tools. This greatly increases productivity. In addition, the consequent reduction in error rates greatly reduces the cost of rework. Finally, this automation allows the remaining work to be performed in global centres of excellence that can take advantage of economies of scale and low labour costs. Follow-the-sun processing allows many tasks to be performed overnight, with delivery to the customer prior to local start of day. For those service providers that have achieved this level of global integration, the next step is to add more services to their core offering.

All of this has very important consequences. Firstly, the consequent reduction in operating costs for the services provider means they are able to compete more aggressively on price. Secondly, these providers are desperate to add volume to their platforms to repay the large investments made. The increase of geographic scope and service scope provides opportunities for simplification of the operating model, improvements in the level of services, improvements in the ability to support new products, together with further reductions in cost.

A third assumption that can change is the regulatory environment. The level of regulatory change bearing down on the industry could fill a whole series of webinars all by itself. We have the Retail Distribution Review affecting distribution in the UK, UCITS IV enabling master-feeder structures and giving us the Key Investor Information Document. This is without considering the AIFMD, or the effect of the abolition of the FSA. To help asset managers understand the impacts, we will shortly be publishing an overview of these changes on our website.

The results of the discussion in this webinar were fascinating. And we hope you can join us for the next two: ‘Successfully managing major change’ and ‘Getting the best out of your existing operations’.

Author: Gordon Easden, practice head, FusionExperience.

The publication of the British Standard (BS) 11000 last month is a landmark for the world of business. It is the world's first standard for collaborative business relationships and rather than representing a one-size solution for all it provides a consistent framework that can be scaled and adapted to meet particular business needs.

As part of the NOA’s commitment to collaboration between organisations, it has been working alongside a range of other industry associations with the British Standards Institution (BSI) to create an industry standard aimed at supporting collaborative business partnering.

The framework comprises methodologies supported by a wide range of tools and guides which have been established over some 20 years experience in relationship management.

In February 2010, Adrian Quayle, NOA Board Member, took on the responsibility, on behalf on the NOA Board, of representing the outsourcing industry on the BSI panel and contributed throughout the development of the Draft Standard to its final version for publication. To ensure the widest representation from the outsourcing industry, Adrian set up a Special Interest Group (SIG) involving all sectors including service recipient customers, service providers, and third party advisers.

Working with the SIG members Adrian provided and co-ordinated the delivery of the wide range of industry best practice contributions to enhance the Draft Standard.

Adrian said: “The broad aim of the standard is to support organisations across all industry sectors to participate in successful collaborative relationships by establishing a framework which allows those organisations to incorporate industry good practice in their approach to working with other parties. The standard has been designed to establish a consistent framework that can be applied by organisations of all sizes, and to highlight the key areas which all companies should address, allowing them to benchmark standards in specific areas.

“The benefits of collaboration are clear: it allows organisations to share best practice and skills, enabling them to really get under the skin of their relationships in order to provide greater value. Only by working together can real benefits be drawn from business relationships.”

The BS 11000 aims to complete this objective through the promotion of five key activities.

• Ongoing management, monitor and measure the relationship

• Continual innovation

• Maintenance of behaviours and trust

• Management of delivery and performance

• Management of issue resolution and monitoring of joint exit strategy

The standard is the brainchild of Partnership Sourcing Limited (PSL) - a self-financing not-for-profit organisation which helps organisations of all sizes, in both the public and private sectors, to build and develop effective competitive business relationships based upon a collaborative approach. PSL's operations director, David Hawkins commented: "Venturing into the world of collaboration can be one of the most exhilarating and ultimately rewarding aspects of business.

"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.”

The NOA believe that the recent public spending cuts could fuel a surge in public sector outsourcing with many government departments outsourcing services which are not core to their business. Large integrated companies will be able to offer public savings by offering just one point of contact instead of many and companies with a broad range of services should be able to adapt easily to meet specific demands.

It is vital that there is some guidance for the way in which public organisations can develop their relationships with the private sector. Outsourcing may be a new way of working for many in this sector and unless great care is taken in maintaining and working on the collaborative relationship, neglect can build the foundations for failure.

The BS 11000 offers significant opportunities to support the implementation of more effective collaborative working between these sectors and enhance the operation of existing business activities to provide an improved relationship that adds value to the parties involved.

In addition, the NOA’s life cycle also outlines four steps to ensure collaborative success: strategic leadership, relationship engagement, transition and change and relationship management. Each step of the lifecycle is concerned with making sure that all the necessary activities are carried out to build and maintain a successful outsourcing deal.

Experience from those outsourcing deals that fail demonstrates that where short cuts are taken and key activities are omitted, problems start to arise. Examples include the failure on the service recipient client side to establish an effective internal management team, or the service provider failing to deliver the service that was promised in the sales process and the contract.

Although the standard was published in October, BS 11000 will receive a formal launch at the House of Lords on 7th December. Part 2 of the guidance is currently a work in progress and will be published early 2011.

Atos Origin, the first company to sign a Memorandum of Understanding with Francis Maude’s Cabinet Office, has announced its healthcare division has been awarded a three year contract extension by the Department for Work and Pensions (DWP) worth in excess of £300 million.

Under the terms of the extension, Atos Healthcare is to continue delivering medical advice and assessment services in a bid to “support the UK Government’s welfare reform agenda”. Atos Heathcare is the number one occupational health provider in the UK.

It’s claimed the extension will “help people to move into and progress in work, while supporting the most vulnerable”.

Keith Wilman, CEO for Atos Origin said, “We have a successful and longstanding relationship with the Department for Work and Pensions and are committed to supporting the Government’s welfare reform agenda to help those who are able get back to work and regain their independence.”

Source: http://www.publictechnology.net/sector/central-gov/dwp-awards-300m-contract-extension

John Suffolk, the Government CIO, has confirmed his resignation from the post effective before the end of the year. Suffolk has held the post for the past four years, and replaced the first Government CIO Ian Watmore.

It’s reported his resignation was first announced internally at the Cabinet Office, but Suffolk later confirmed his intentions to investigative journalist, Tony Collins. On his blog, Collins quotes the outgoing CIO as saying, “Just under 5 years is a good stint ...time to pass the baton on and give the new Government a clear run on new policies, new strategies and new people. It’s been truly great working with Francis Maude. His agenda is my agenda and reverse. He will drive it [major reform] forward.”

Whitehall sources were today talking up Andrew Stott, director of digital engagement and Suffolk's former deputy, as a likely replacement. Stott retires next month from his current role and worked with Watmore during his time as CIO. "[Suffolk's] replacement is likely to be an ally of Ian Watmore, who was brought in to head up the Cabinet Office’s influential Efficiency and Reform Group in July," commented Tola Sergeant of TechMarketView. "The Government CIO now reports to Watmore, and the two will need to work increasingly closely together to push forward the new government’s agenda."

Suffolk was the key proponent of the Government Cloud, which featured in the Labour Government’s ICT Strategy at the start of the year. It’s well known the Cabinet Office is working on a new strategy backed by the coalition government, though it’s understood to remain largely similar to its predecessor aside from extra provisions for open source software.

In recent weeks Andy Tait, deputy director on the G-Cloud programme, described the initiative as the “biggest transformation for public sector ICT in the past 20 years,” and reaffirmed that the G-Cloud was definitely coming. He later confirmed to delegates at Socitm’s conference in Brighton the programme had yet to receive the green light from the Cabinet Office.

Source: http://www.publictechnology.net/sector/central-gov/suffolk-resigns-government-cio-post