Industry news

Axel Grunwald, senior consultant at IT consulting firm GFT Technologies reminds us of the need to think of the consumer in the development of investment banking projects.

At the outset of a project, the effort to define requirements and scope can be all-consuming. Whilst the user is included briefly at this point, to explain the businesses needs to the technical team, often little provision is made to return the knowledge to the users in an appropriate form.

In the banking sector, this problem is frequently made more complex. Requirements can change during all project phases and the operational model, processes, or procedures continue to be defined or changed alongside the development of the system.

GFT was recently made acutely aware of this issue in a project where a system needed to be devised before the operational team was in place. The lack of users in the early stages meant that our team had to pay particular attention to how the new system would be returned to the client. We had to include in our methodology some key considerations for involving users in the knowledge transfer. We identified these as:

Language

Training

Resources

We noticed that often, as a project progresses from business requirements to technical code, a transformation of the language happens and it becomes unsuitable for the end-user. In order to re-engage with the business user (during UAT and / or production) it is essential that the documentation is re-translated into business language; “null” has to return to “nothing in here”.

Preparation for the handover to the business community must involve training and appropriate documentation. The benefits of this are two-fold. Firstly, as the usage of the application was explained to the user, this provided for a quicker and smoother testing process. Secondly, it also helped to avoid problems stemming from a lack of understanding.

This approach also supported the train-the-trainer concept, as acceptance-testing users were enabled and provided with the knowledge and documentation to pass on to the other business users when the system finally went live.

We found that the best-placed resources to perform this task are the business and technical analysts, who also gather the business requirements and designed the business and technical solution for the system. They have both the understanding of what has been developed and the skills to re-translate the documentation. They are also best positioned to identify gaps that may have emerged during the project lifecycle.

So the same resources that are responsible for enabling the technology people to code the application are also responsible for enabling the business users to understand and use the system.

For best effect, we embedded both business and technical analysts in the internal support unit to directly engage with the business user on a case-by-case basis and to answer specific questions. They were also deeply involved in the production of user manuals, training sessions, and other documentation distributed to all users.

This user-focused approach meant that, despite not existing at the beginning of the project, the users were fully included in the handover. As they are the final client, we discovered that the project is more successful if you don’t forget them!

Global IT and BPO services provider Patni, has appointed Apoorva Singh as senior vice president and global head – infrastructure management services.

In his new role Singh will be spearheading the infrastructure management services vertical along with Patni’s customer interaction services (CIS) division relating to technology-based support business.

Singh has 15 years of rich industry experience to his credit and in his previous assignment has worked with Infosys as Head of their IMS division for EMEA region.

Prior to Infosys, he has also worked in leadership roles with companies like Solix/ Emagia Corporation, MeraNet Private Limited and Maruti Udyog Limited.

Online rail retailer thetrainline.com has granted Capgemini a five-year extension on its IT outsourcing contract.

The contract, with an estimated value of £15m covers the period 2010-2015 and ensures 24/7 support for the ticket company’s entire IT infrastructure including its online and call centre customer-facing systems.

The contract also provides for Capgemini to undertake a growing volume of applications support and applications management activity for thetrainline.com.

The new contract extension aims to give thetrainline.com better cost-effectiveness through innovations such as virtualisation of the train ticket retailer’s entire server installation, located at a Capgemini data centre in Yorkshire.

The agreement also involves increased use of Capgemini’s Rightshore® delivery model, with much of the applications support work to be undertaken over the five-year period at a Capgemini facility in Bangalore.

Both companies have uninterruptedly worked together since 1997.

The French market’s rapidly growing appetite for engineering offshoring in embedded systems segment is a clear case in point.

This is the outcome of a study done by Pierre Audoin Consultants (PAC), a leading market research and strategic consulting firm in the domain of software and IT services industry in Europe.

The research was conducted at a time when the global economic crisis that has hit the EU the hardest seems to have opened doors of newer opportunities for Indian Information Technology in certain high value and high-end solutions that had so far remained closed for the Indian companies.

According to the PAC study it’s the very same French companies, which had been suspicious about the capacity of the Indian companies to lead and deliver projects in this key segment, that are beginning to change their opinions.

Previously, the benefits of any engineering offshoring went exclusively to North African and Eastern European countries, favoured by the French given their geographic proximity and cultural as well as linguistic compatibilities.

However, French companies began to look for alternative and more cost-efficient destinations in part due to the rising costs –a trend accentuated by economic downturn – and in part due to the lack of specialised engineers for embedded services in Europe.

The survey, carried out among 50 CIOs of big-, medium- and small-sized companies manufacturing embedded systems, found that two-thirds of the respondents admitted to using offshore services.

Similarly, the study discovered that while most French companies prefer to either refer to an expert or develop the embedded system internally; very few offshore the project in its entirety. Indeed, in most cases, it is the conception, the development, the test or the maintenance that is offshored.

But while the survey established that French companies take a lot of time in deciding whether to offshore to India, Indian IT companies have also failed to established strategies aimed at the French market.

Nevertheless, the trend is evolving. Some of the Indian companies such as HCL Technologies, have recently began increasing their visibility in and understanding of the French market.

Public sector and IT outsourcing: need to address the disconnect

“In many ways, there is complete disconnect, between what we want to do as the Department [of Work and Pensions] and what the outsourcers that come and see us want to do for us,” highlighted James Gartner, CTO at the Department of Work and Pensions during the NOA’s end-user event and summer party.

The Department for Work and Pensions (DWP) is one of the largest IT outsourcers in Europe, it spends £185bn in benefits and pensions delivery and with an aging population, the sum is only likely to grow.

During his brief presentation Gardner stressed that, “What [the DWP is] trying to do from a society perspective is bring people out of poverty. To find them new work outcomes to make sure they are not stuck in a poverty trap.”

Gardner indicated that the DWP spends a fraction (0.004%) of that £185bn in technology and that what he wants from suppliers is the innovation and the tools required to address the problems faced by a public sector faced with the deepest cuts in a generation.

Gardner was one of six speakers at the NOA end-user event and summer party, which took place at the HoganLovells offices last week. The other speakers included: Michael Stock from the BBC, Sarah Manning from BT, Kevin Devoy from Centrica, Ian McDonald from Symbian and Andy Beale from the Guardian Media Group.

To view James Gardner presentation here http://www.youtube.com/watch?v=7lJK0hf-90M.

Automobile manufacturer Ford has extended its IT outsourcing deal with business solutions and managed services provider CSC.

Under the agreement, CSC will continue to provide essential infrastructure and application management services for the Ford customer service division in Europe, operating across 19 European offices, including UK branches in the North West, West Midlands and Oxfordshire.

The partnership between Ford and CSC was established 15 years ago and it has evolved to include offshore services to its Europe and US operations.

When CSC acquired IT services company Covansys in 2007, the scope of work expanded to include the offshore IT services provided by Covansys to Ford of Europe and North America.

This follows CSC's announcement last week of a $580m deal with financial services giant UBS for networking services.

The National Outsourcing Association’s (NOA) Diploma in Strategic Global Outsourcing, accredited by Middlesex University, is now open for autumn registration.

Provided by the NOA’s professional development arm NOA Pathway and developed in association with True North, a leading UK learning and development company, the Diploma was specifically designed to raise industry standards by establishing an industry-wide benchmark for quality in outsourcing.

It is open to experienced candidates with a minimum of 10 years’ organisational experience and five years within outsourcing specifically.

Running in its second year, the Diploma was last month awarded to its first graduate, and is helping raise industry standards and drive outsourcing as a professionally recognised career.

The Diploma, which is a postgraduate level programme, is research-based, enabling candidates to select a specific area of study according to their particular area of interest or professional business needs.

By allowing participants to focus on their own organisational agenda, the programme will help them overcome specific outsourcing challenges, so they can effectively achieve their business goals and directly add value to their organisations.

The Diploma comprises three modules, each taking three months to complete. Each module features a one-day workshop which involves all participants to facilitate knowledge-sharing and group learning from a range of outsourcing experts.

All candidates undertaking the course will form learning sets to provide each other with support and contribute to each other’s learning. Each candidate will also have his/her own personal tutor to provide phone-based and online support throughout the nine-month course of study.

For further information or to register for he NOA Diploma programme please call 0845 130 5500, or email contact@noapathway.co.uk

Alex Blues, Head of IT Sourcing at PA Consulting Group continues his exploration of the 'critical intangibles' that can make or break an outsourcing relationship.

Throughout the next few weeks of this regular blog, I will be continuing to consider 'critical intangibles' in further detail. Those things that I believe can make the difference between success and failure in a sourcing relationship. Those details that may be overlooked by those only concerned with the pricing and the legal framework of a sourcing relationship.

Last week, I talked about the difference between a 'co-operative' and a 'competitive' approach to sourcing'. This week I would like to consider the difference between 'trust' and 'suspicion' as the basis for a working, sourcing relationship.

In fact, both attitudes - trust and suspicion - work at a corporate and at an individual level. However, mixing the two styles at either level can be disastrous.

Some organisations and people believe that the world is out to get them - typically characterised by strong rules and governance and an underlying philosophy that self interest is at the core of all actions. In situations like this, the contract never gathers dust - it is always being brandished and penalties are being considered or demanded.

Others believe that you can agree a set of outcomes and 'trust' both parties to achieve these results - in these cases the approach is typically underpinned by lighter governance and outcome-based rewards rather than contractual penalties, like service credits.

Once you have considered and accepted this, there is then the appreciation that suppliers and the contracting organisation fall into one or other camp - even though some may sit in the middle and some at the extremes of the trust or suspicion spectrum, they do all fit into this somewhere.

So, the key critical learning from this is to be honest about your own style corporately and individually, and to make sure that you only work with the supplier or organisation that matches the same style as your own.

If you take the time to assess these 'critical intangible' factors at the outset you could be making the difference between a successful and a failed sourcing relationship - it's not just about finances and contractual terms.

Global IT and BPO services provider Patni Computer Systems has appointed Sunil Chitale as executive vice president and chief strategy and marketing officer for the company.

In his new role, Chitale will lead Patni’s M&A, marketing and strategic planning functions.

Chitale began his career with Patni in 1985 and has managed large relationship portfolios, led the manufacturing vertical and led Patni's Enterprise Software business globally.

In addition, he also managed the Patni Academy for Competency Enhancement (PACE) and the Global Resources in Technology (GRiT) functions.

He has a Bachelor’s degree from the Institute of Technology - Banaras Hindu University.

Nippon Telegraph and Telephone Corporation (NTT), one of the largest global telecommunications service providers has made an all-cash offer for 100% of IT services and solutions specialist Dimension Data shares.

The ICT industry is about to enter a time of revolutionary change with the advent of cloud computing. As such the dominant ICT enterprises are attempting to integrate business domains beyond their existing framework and are trying to secure a leading position as a main player in ICT.

The agreement would see NTT acquire the entire ‘issued’ and ‘to be issued’ ordinary share capital of Dimension Data for approximately £2.1bn; a move unanimously recommended by both boards of directors.

The integration between NTT and Dimension Data will create a substantially expanded global business for corporate users.

NTT Group has developed its business globally with a central focus on managed network services, data centers, system integration and mobile services. Dimension Data however focuses on the development, operation and maintenance of IT infrastructure, including network devices and servers at the clients’ site.