Industry news

  • 29 Oct 2010 12:00 AM | Anonymous

    The organisation responsible for decommissioning the UK's ageing nuclear power stations has kicked off a 12-month procurement for IT services covering everything from servers and desktops to networks, security and storage technology.

    The Nuclear Decommissioning Authority (NDA), which is responsible for sites including Sellafield and Dounreay, has invited outsourcing suppliers or consortia to bid for the work, with the aim of selecting a shortlist of up to four potential providers to compete for the contract.

    The tender notice on the Official Journal of the European Union lists the range of services required, which includes servers, desktops, voice and data networking, security, storage, helpdesk services, printing, videoconferencing, applications and testing.

    The authority will hold a supplier day for potential providers on 3 November 2010 to provide further information to interested bidders.

    The procurement project is being led by Sellafield as a collaborative project that also includes the Civil Nuclear Constabulary and the National Nuclear Laboratory.

  • 29 Oct 2010 12:00 AM | Anonymous

    Mouchel, the outsourcing company, saw its shares drop 30 per cent yesterday after it scrapped its dividend and reported a sizeable full-year loss.

    Mouchel experienced a sharp drop in demand due to the change of government in May. The company specialises in developing infrastructure for councils and government agencies and has been affected as departments cut down their spending and scaled down projects.

    In response, the company rolled out a restructuring programme, taking the number of job cuts since 2009 to 2,000 and creating a larger-than-expected one-off cost of £45.2m.

    The company is hoping that the Coalition Government's Comprehensive Spending Review, will create a new demand for outsourcing businesses in the hope of saving costs. The group also offers consultancy services and is also aiming to expand in new areas such as the health sector and police and educational centres, in an attempt to attract new clients and contracts.

    Richard Cuthbert, CEO of Mouchel, said: "Mouchel believes that pressure on the public sector to reduce costs will lead to greater demand for private sector support."

    The group said it had an order book of £1.8bn, and has put in proposals for £2.2bn for additional business.

  • 28 Oct 2010 12:00 AM | Anonymous

    A ground-breaking report examining the "internet economy" states it contributes £100bn to Britain’s GDP.

    The Connected Kingdom report, published on Thursday, also says that the internet is responsible for 250,000 UK jobs and predicts it will grow to account for 10pc of UK GDP by 2015.

    Experts believe the internet now wields a bigger influence of the British economy than construction, transport or utilities.

    The report, commissioned by Google, found that Britons spend a higher proportion of their money online than any other country in the nations of the Organisation of Economic Co-operation and Development (OECD).

    Mr Zwillenberg said online shopping accounted for about half of the headline £100bn figure. In 2001 consumers spent just £2bn online and he added that cash spent on online goods and tickets would also be counted among the retail and transport sectors' contribution to the economy. Mr Zwillenberg said online businesses have become so skilled at selling overseas that the UK is now a net exporter of goods and services with £2.80 exported for every £1 imported.

    Matt Brittin, managing director of Google UK, said: "We all know how the internet has changed the way people access information and communicate.

    "Now for the first time we can see how its adoption by British business has become a major contributor to UK GDP, and that the internet is a central pillar of the UK's economy. The sector has come of age, and with great prospects for further growth, will be vital to the UK's future prosperity."

  • 28 Oct 2010 12:00 AM | Anonymous

    Anglian Water, one of the UK’s leading providers of water and wastewater services, has formed a strategic IT services alliance with Capgemini UK plc, part of Capgemini Group, one of the world’s foremost providers of consulting, technology and outsourcing services with the signing of a five-year, multi-million pound outsourcing contract. This will cover the water company’s entire IT infrastructure as well as all its core business applications for the period 2011- 2015.

    The focus of the contract will be on innovation and IT effectiveness to support the drive for excellence in all aspects of service delivery and business performance at Anglian Water, which is already consistently one of Britain’s top-performing water companies as rated by OFWAT, the UK industry water regulator. It is also one of the largest water companies in England and Wales, with over six million domestic and commercial customers across Eastern England and more than £2 billion investment in building and maintaining water and waste water networks over the last five years.

    Chris Boucher, Director of Information Services at Anglian Water, said: ‘Effective IT is vital to everything we do, from planning, constructing and maintaining our water and waste network to serving and billing our customers. It is set to become even more important over the next five years in meeting our own ambitious business objectives, and in meeting or exceeding the expectations of our customers and the regulator. Capgemini clearly has the business and technical skills and experience, and the capacity for innovation, that can help drive our business forwards. We look forward to working with them on a long-term basis.’

    Capgemini will deploy its Rightshore delivery model at Anglian Water, with IT infrastructure based at Capgemini data centres in Swindon and Bristol, applications management at Capgemini in the UK and India, and a dedicated IT help desk at a Capgemini facility in Romania. The transition from the incumbent IT supplier to Capgemini begins immediately and the new services are scheduled to go live in February 2011. Capgemini’s new ‘Merlin’ data centre in Swindon will be central to the contract. Capgemini will also offer consultancy and IT strategy on top of the IT implementation at the core of this project. The applications management part of the contract will deploy Capgemini’s Application Lifecycle Services global service line which helps ensure continuous alignment of applications with business needs.

  • 28 Oct 2010 12:00 AM | Anonymous

    Two new appointments to BT’s public sector team will strengthen the knowledge base behind the end-to-end ICT services it delivers to government departments and agencies across Northern Ireland. The positions have been created to build on existing customer and partner relationships as well as pave the way for cost transformation projects aligned to emerging public sector requirements.

    The BT public sector division has been growing steadily and serves many of its key customers across the NI Civil Service, local government, education, criminal justice and health. Projects include the deployment of Account NI, a shared services centre for the Department of Finance and Personnel, a managed ICT infrastructure for the Northern Ireland Housing Executive, a managed network contract in the education sector and a PFI for Land and Property Services.

    “The breadth and scope of our skills is something we continually look to build. Having great new people in our team will help us continue to create strong public sector partnerships where we can bring all our expertise to bear on transformational projects that increase efficiency and save money,” said Peter Russell, Head of Public Sector, BT.

  • 28 Oct 2010 12:00 AM | Anonymous

    Proposals for twenty-four local enterprise partnerships were given the green light by Government today, in a landmark move that will see local business and civic leaders working together to drive sustainable economic growth and create new jobs in their communities.

    Ministers announced the first wave of successful partnerships today as part of a new plan for local economic growth, which sets out the Government’s role in empowering locally driven growth, encouraging business investment and promoting economic development.

    Ministers also declared the £1.4bn Regional Growth Fund open for business.

    The fund will support the creation of private sector jobs and will particularly support communities currently dependent on the public sector, helping them make the transition to private sector led growth and prosperity.

    The announcements form part of a White Paper on Local Growth published today, which sets out the Government’s new approach to rebalance the economy and drive sustainable growth by focusing on three key themes:

    · Shifting power to local communities and businesses - by establishing dynamic local enterprise partnerships of local business and civic leaders, operating within an area that makes economic sense, which can provide the vision, knowledge and strategic leadership to set local priorities and empower communities to fulfil their potential.

    · Increasing confidence to invest – by creating the right conditions for growth through a consistent and efficient framework for investment, an effective planning framework and new incentives to make sure local communities benefit from development.

    ·Focused investment – by tackling barriers to growth that the market will not address itself and supporting investment that will have a long term impact on growth.

    Business Secretary, Vince Cable said:

    “I was delighted that so many of the proposals for local enterprise partnerships showed real imagination and initiative and a genuine desire to drive local economic growth. I am pleased to announce that we are asking 24 of these partnerships to set up their boards and get to work.

    “The knowledge and expertise of the private sector, local authorities and their local communities will be crucial as we work to create a better environment for business and ensure that everyone has access to the opportunities that growth brings.

    “The measures set out in today’s White Paper demonstrate the Coalition’s ambition to create a fairer and more balanced economy – one that is driven by private sector growth with business opportunities spread more evenly across the country and between industries.”

  • 28 Oct 2010 12:00 AM | Anonymous

    A group of the largest businesses across the world have joined forces to provide a set of requirements for the future of cloud computing.

    The Open Data Centre Alliance has been formed by 70 business members with a combined annual IT spend of £31.6bn. The alliance includes members from BMW, Shell, UBS and Deutsche Bank who will aim to set hardware and software requirements for cloud computing to tackle organisations’ challenges such as security, automation and interoperability.

    Mario Mueller, steering committee member and vice-president of IT infrastructure for BMW, said, "For the first time, an independent consortium of global IT managers will work together to define requirements of datacentre and cloud environments, for today and tomorrow."

    "Members are committed to the usage model road-map to guide datacentre purchasing decisions and for planning future datacentre deployments," added Mueller.

    Intel is the technical advisor for the alliance and unveiled plans at Cern's Globe for Science and Innovation in Geneva, to make cloud computing more interoperable as part of its Cloud 2015 initiative to meet alliance requirements.

    Boyd Davis, vice-president of Intel's architecture group, said, "In the next five years, the internet will gain five billion new users, which will choke existing infrastructure, while closed proprietary architecture will stifle innovation. There is demand for infrastructure that is open and interoperable."

  • 28 Oct 2010 12:00 AM | Anonymous

    In an uncertain economy, our instinct is to make the best with what we have, rather than splash out on new products. Car owners are an obvious example. They eke out another thirty thousand miles from their old vehicle, patching her up at the garage every time she develops another rattle. The fact that a new car would save on fuel, tax and running costs – not to mention stress - is eclipsed by this determination to battle on grimly as before.

    For local government departments likewise, the temptation is strong to do the best they can within the status quo, rather than searching for a better alternative. This is perhaps understandable after all, the public sector is facing severe cuts in funding, but the demands for services will remain as they are. Indeed, they may well increase as investment from the private sector shrinks. Meanwhile, Westminster appears to have turned its back on local government, shelving long-awaited reform of the finance systems.

    While councils may see their core responsibilities as to empty the bins and bury the dead, with everything else optional; citizens’ expectations in times of financial constraint are likely to be much more wide ranging. Recession and redundancy are guaranteed to drive folks back to the libraries, into the parks and leisure facilities, and into the offices of social services for support. The local community, resentful of perceived bureaucratic inefficiency, will not tolerate a hike in council tax to pay for any financial shortfall. In short, town hall chiefs are being asked to spin straw into gold.

    In this cost-saving environment, IT services can appear as a soft target. As long as the support staff keep the lights on, says the jittery finance director, then we’ll get by just fine, no? We cannot risk making an expensive mistake, so it’s far safer to use sticking-plaster rather than wield the big broom, right?

    This reaction is hardly a new or surprising one. Restrictions on capital expenditure, costly procurement exercises and short term cost considerations have too often got in the way of long-term efficiency and quality of service benefits.

    But, just like the stubborn car owner who patches up his wheezing gas-guzzler, those authorities that carry on regardless are living in a false economy. Investment in new IT solutions will quickly save money and provide better services: the dream scenario for all electable councillors.

    Desktop virtualisation is the key to this alchemy. Instead of running hundreds, or thousands of costly desktop PCs across a number of different locations, departments and operating systems, a cloud-based service can dramatically improve efficiency whilst saving money on power and maintenance. Virtualisation encourages hot-desking and flexible working, as employees can work from any client device on the system, so reaping further financial savings.

    According to technology analysts Gartner, organisations can save between 40 per cent and 70 per cent on overall operating costs per user per month by implementing an application or desktop virtualisation solution. A separate study by the Butler Group found that organisations can save half their energy costs by switching to a virtual desktop, which also represents a substantial reduction in an organisation’s carbon footprint.

    Aside from the financial benefits, the efficiency gains are immediately reflected in the day to day running of the system. Authorities are increasingly expected to “join up” departments - education, health and social services - and coordinate their response to changing workloads, funding and priorities. Central government’s decision to change roles and responsibilities between departments will inevitably increase the need for flexible, secure access to systems from new users, locations and organisations, with very little budget allocated to transitional services or support. Virtualising the desktop allows any system or data to be delivered without the need to visit or install software onto the user’s PC.

    Surrey County Council, for example, is profiting from a new desktop strategy for 8,000 users, ten per cent of whom are mobile. The Council recognised that its desktop strategy was becoming unwieldy and out-of-date and it needed to ensure that application upgrade and management costs didn’t escalate; it also needed a greater degree of flexibility. A new Citrix-based installation has allowed County Hall to replace more than half of its ‘fat’ 6,000 desktops across 300 sites with ‘thin’ hot-desk terminals. Centralising all the Council’s servers and file storage in one place has improved accessibility and productivity levels and met Surrey’s need for users to be more mobile, improve performance and to reduce power requirements and costs.

    As well as this increased horizontal sharing, where information and systems are shared between different agencies, authorities are increasingly demanding vertical shared services, delivering a wide variety of different systems to similar organisations in different locations. These shared services can use desktop virtualisation to centralise delivery into a shared environment, where pooled budgets and resources can delivery economies of scale. It is often said that two can live nearly as cheaply as one (particularly if you cut out all the discretionary spending!) and this is equally true of running IT delivery services.

    Some costs are unique and based on the number of users, but many can be shared resulting in real savings. For example, The Homes and Communities Agency (HCA), the national housing and regeneration agency for England, provides staff with access to core business applications via a Citrix XenApp environment. One thousand users have been federalised by the solution. The flexibility and scalability provided by the Citrix environment is central to the Agency’s ICT Strategy.

    Critically though, local government will seek to make savings wherever it can that do not directly affect jobs or impact adversely on service delivery. That means reducing accommodation and travel costs, and cutting spend on new equipment and maintenance wherever it’s safe and sensible to do so. Virtualised desktops can play their part here too, allowing staff to work from home, or any office with a client device, extending the lifespan of existing equipment and moving to a “swap on fail” for client devices. Taken together these measures can significantly reduce accommodation footprint through hot-desking, reduce maintenance and support costs and make staff more productive.

    Solihull Community Housing Association, in collaboration with Solihull Council, deployed a Citrix XenDesktop Virtual Desktop Infrastructure (VDI) solution to support independent working for its duty managers. Located at specific sites across the borough, the duty managers previously logged into dedicated PCs at their respective location. Now, they can work from any site within the borough. Introducing a far greater degree of flexibility, the system allows registered users to securely log into their virtualised desktop from any location. In a stroke, the system increased overall workforce efficiency by removing the need for a duty manager to be present at every location all of the time.

    These technology solutions may not be wired to spin straw into gold, but they can deliver effective and efficient IT services whilst reducing costs. Town hall chiefs who realise calculated investment can save money may find the time is right to trade in the spluttering rust bucket for a vehicle that will drive performance and savings for many years to come.

    Centralis is a leading independent IT consultancy, specialising in delivering applications securely to their point of use. Centralis’ mission is to help customers reduce cost and improve business agility through innovative, award-winning solutions backed by top-level partnership with industry leading vendors, including Citrix, Microsoft and VMware Centralis local government customers include Surrey County Council, Bracknell Forest Borough Council, Leeds City Council, Solihull Metropolitan Council, Horsham District Council, and Fife Council.www.centralis.co.uk

  • 28 Oct 2010 12:00 AM | Anonymous

    It’s no secret that financial services companies – banks, insurers, asset managers and the like – have had a challenging time over the past couple of years. But with growth now the focus of the

    industry’s attention, new products will be needed. The debt-based culture of the last ten years is behind us and people want ways to accumulate wealth and minimize their tax liabilities. For financial services providers, getting the right products to market quickly is key to taking advantage of this changing market. And if you want to launch new products effectively, outsourcing is one option to consider.

    Getting new, innovative products to the market quickly can be the difference between being a leader or laggard in the financial services market. The pressure is on to create and bring new and different types of product to the market. In a world where consumer’s needs are changing, financial services providers, (and their outsourcers and tech providers) find themselves having to revolutionise the way in which they introduce, and market their new offerings into the marketplace.

    Although this has been difficult in the past, outsourcing now gives product managers and actuaries a new option to build their product portfolio, reducing the cost and time it takes for new product development. This also helps bridge the gap between product design and implementation, helping to get new products out faster.

    So once you’ve built it, how do you sell it? New marketing strategies can encourage people to think differently about new versions of well known (older) products and could make the difference between a highly successful launch and a complete flop. For instance, now that consumers carry thousands of pounds worth of electronic equipment on them including IPods, laptops and mobile phones, protection products could be sold as ‘preserve your lifestyle’ rather than ‘preserve your life’.

    Now, during the ‘post-crunch’ period, the weight of competition in the marketplace only heightens the pressure to get products available to consumers in the blink of an eye. Speed to market has been the deal-breaker in the ascent to the top of the market for companies in the past, most notably being Standard Life’s rise to dominance in the SIPP market a few years ago. Understandably, others such as Santander are now attempting to re-create this success through all of the means mentioned above.

    The big question is, “how do providers speed up the process by which products are brought to market?” The answer is allowing skilled, strategically managed teams to handle the product development from end-to-end so that these products are created and launched efficiently - better known as outsourcing.

    Outsourcing allows the more sophisticated types of product development strategies can grow and become more comprehensive to deliver improvements in product quality as well as how quickly it can be delivered to the market. A properly thought-out strategy for product development and product-to-market can make a real difference to customer retention and treating customers fairly.

  • 27 Oct 2010 12:00 AM | Anonymous

    Jane Williams, Head of Talent Management and Learning at Siemens IT Solutions and Services discusses the opening up of opportunities and career progression for individuals part of IT or business process outsourcing agreements.

    The business of managing and motivating talent in any organisation is an important element to get the best out of individuals and gain a high performance culture. Within the outsourcing arena, many thousands of employees can transfer into an organisation upon signature of a contract. This influx presents challenges of retention, development and motivation of the individual at a time of much change, yet at the same time it is essential to gain employee commitment and engagement for the good of the new contractual relationship.

    A focus on people management as a core element of the new outsourcing agreement is crucial to hit the ground running. Professional outsourcing suppliers offer dedicated HR and talent management teams to support effective people transfer and cultural integration of new transferring employees. This is far more than a focus on pay and benefits, but a dedicated approach to knowledge development and career progression through training and development initiatives and more personally tailored coaching and mentoring schemes.

    Retaining the people at the heart of organisations

    The spectrum of people transferring over to an outsourcing supplier from an originating organisation such as broadcaster, bank or local council can range from back office administration roles through to high level management positions. Each person has an individual need that has to be supported and enhanced. Siemens IT Solutions and Services boasts a ‘practice what it preaches’ philosophy and is proud that 55% of its employees have TUPE transferred from another organisation. Indeed the Managing Director himself was formally part of TUPE transfer.

    Encouraging the sharing of knowledge and experience between peers

    Where outsourcing agreements see large numbers of people transferring over to an outsourcing supplier but remain on an original site, for example a call or data centre, the challenge of talent management is further exaggerated. Geographical spread and cultures are diverse so positive and mobile talent management initiatives need to be proactively rolled out. This includes internal communication programmes, seminar session, team briefs and social events.

    The moment people transfer into Siemens, they are part of a much large community of local, national and sometimes global peers across diverse industry sectors. The alignment of transferring employees to skills practices boosts the sharing of best practice, championing of knowledge and development of careers. For example, a desktop manager within a finance company has the potential to cross pollinate ideas and experiences with a colleague in a public sector organisation. At the same time, career progression is enhanced with greater opportunities available for upwards or horizontal migration.

    A positive example of talent transfer in business process outsourcing

    National Savings and Investments (NS&I) and Siemens IT Solutions and Services are an example of partnership between government and the private sector, which has been very successful, demonstrated in a long term contract.

    NS&I is one of the most deeply-rooted and historically significant financial institutions in the country. It started life as the Post Office Savings Bank and was originally established to encourage people to save by giving them an absolutely secure, easily accessible home for their money, backed by the credibility of the UK Government. In more recent times its strategic objective has been to provide cost effective funding for the Treasury. It does this by making funds available from the retail market at a lower cost than the Treasury could achieve by borrowing from the wholesale market, resulting in a saving for the UK taxpayer.

    Back in the 1990s, NS&I needed to take radical steps to get the business on track, which included finding a partner who could deliver an operational business and drive a change programme efficiently and effectively. This would leave the NS&I management team free to concentrate on its core business, the business of competing in a financial services marketplace.

    The entire NS&I operations department was outsourced, with more than 4100 staff joining Siemens under TUPE regulations. Once this transfer had taken place, around 130 staff remained keeping responsibility for executive leadership, strategy, product design and pricing, marketing, relationship and contract management and other core management tasks. The Siemens account director is an integral, permanent member of the NS&I executive management board - this means that conscious efforts are made on both sides to set strategy, develop action plans and resolve issues together, as partners rather than through the normal client/supplier relationship. This shared vision has proved to be the key to long term success.

    Since 1999, funds under management at NS&I have increased significantly, employee productivity has improved by over 400% and customer response times were slashed from 11 to three days. A shared partner vision has developed the relationship into much more than an outsourcing deal and the key to success has been attributed to the management of people and a stronger customer focus, all underpinned by technology change.

    Talent management as the hinge for operational success

    The NS&I case example highlights that with the right processes, new innovations, leadership and management of people, productivity gains are assured. Other operational benefits that can be achieved by looking after your ‘people power’ are improved margins, extended market share and even survival in a competitive environment.

    Talent management is certainly not the ‘soft’ side of outsourcing, but should be seen as one of the hinges to operational and individual employee success.

    www.siemens.co.uk/it-solutions

    Siemens IT Solutions and Services is a proven provider of IT and business process outsourcing services to the public sector. Clients include National Savings & Investments (NS&I) VOSA, the UKBA, the Office for National Statistics and Welsh Assembly Government.

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