Industry news

  • 9 Mar 2010 12:00 AM | Anonymous

    Liverpool City Council has announced it is set to receive funding after government approval was granted for its Building Schools for the Future (BSF) plans.

    “Out of the £350m being spent on the BSF project, over £26m will be on IT, around 7.3 per cent of the overall BSF spend, ” a spokesperson for the council said.

    The initiative, which forms part of the BSF's sixth wave of spending, will include the provision of ICT services at 24 secondary schools in Liverpool, due to start in 2013 until 2017.

    The council is said to be currently seeking a private sector partner to participate and invest in the Public Private Partnership vehicle, GC News has reported.

  • 9 Mar 2010 12:00 AM | Anonymous

    Midlands-based Accord and Ashram Housing Associations have signed a contact centre and network deal with the newly rebranded Virgin Media Business.

    It is hoped the new arrangement will help the Associations deal with its increasingly large call volumes, now up to 6,000 a month.

    The network will enable the Associations to direct all branch enquiries through its new Customer First Centre.

    “Given the growth and expansion of our housing portfolio in the last five years, our contact points had grown to a number that our residents found confusing,” said Ian Tinsley, Information Systems Manger at Accord.

  • 9 Mar 2010 12:00 AM | Anonymous

    The Financial Intelligence Unit India, part of the Indian Government’s Ministry of Finance, has signed an IT outsourcing contract with Wipro Infotech. The project is due to be completed in 24 months with a further service period of 36 months.

    As part of the deal, Wipro will manage the Unit’s IT in a bid to enhance the efficiency and effectiveness of its collection, analysis and dissemination of financial information and highlights the Government’s intentions to use technology to bring efficiency into analysis of data.

    Mr Arun Goyal, director of Financial Intelligence Unit India, said: “We are keen on timely implementation of the Project as it will significantly enhance capabilities to collect financial information from various reporting entities, analyse it and disseminate actionable information to various law enforcement and intelligence agencies.”

  • 8 Mar 2010 12:00 AM | Anonymous

    Capita boss, Paul Pindar, has joined a growing group of high-profile sourcing professionals calling for an increase in public sector outsourcing.

    The comments were made following figures from the CBI last week that £130bn could be cut from public spending through increased outsourcing.

    Pindar said: “Outsourcing companies could easily save money in areas such as benefit payments as well as reducing back office and administration costs. If you look at the total level of public expenditure of £680-£700bn and the level of savings that have previously been made of 25-30pc, there's no doubt significant savings are there."

    According to The Telegraph, the CBI has today written to Chancellor Alistair Darling ahead of the Budget to say that "re-engineering the way public services are delivered can increase public sector productivity"

    Commenting on the need for increased outsourcing, National Outsourcing Association chairman, Martyn Hart said, “The sector’s ability to cut costs by traditional means, such as staff cuts, is limited, so sourcing and shared service arrangements will come as a matter of course.”

  • 8 Mar 2010 12:00 AM | Anonymous

    The Main Street America Group has appointed India-based outsourcing giant Wipro in a seven year IT agreement.

    In the deal, Wipro will support Main Street America Group’s IT business needs, providing the insurer with applications development, maintenance and quality assurance.

    Enthusiastic about the new partnership, Ronald James, Main Street Americas chief information officer said: "As The Main Street America Group continues to increase scale and productivity, we needed to implement more efficient processes while reducing our operating costs.

    “Partnering with Wipro could also help accelerate the delivery of our projects even further.”

  • 8 Mar 2010 12:00 AM | Anonymous

    BPO firms in the Philippines are hiring new personnel on expectations of strong business growth from the United States and Europe, the Asian Times has reported.

    Amongst the companies planning to expand are Convergys Corp, which plans to expand its 20,000 workforce by 6,000 employees this year and Stream Global Services which says it plans to add 5,000 workers this year.

    With its English-speaking population and cultural affinity with the United States - the world's biggest off-shoring client - the Philippines accounts for between seven per cent and 15 per cent of the global BPO market. The country lags only India, which accounts for between 35 per cent -50 per cent of the global market.

    Gigi Virata, information and research director of the Business Process Association of the Philippines (BPAP), explained: "The back-office and KPO sector has been growing at a faster rate than the voice-based sector and we believe this trend will continue."

  • 8 Mar 2010 12:00 AM | Anonymous

    French nuns have received the news that their sacramental bread may be replaced by cheaper Polish hosts, it has been reported.

    Authorities are contemplating buying the cheaper wafers, according to The Guardian, as the religious bodies at French shrine Lourdes were contemplating buying cheaper hosts from Poland – which are made by a secular workforce.

    However, the Lourdes church has since announced it would continue to buy wafers made in France – but only after negotiating a price reduction.

    Sister Marcelline, from the Carmelite convent at Carmel de Saint Germain-en-Laye just outside Paris, told The Guardian: "Foreign producers, namely those from Poland, have undercut the market."

  • 8 Mar 2010 12:00 AM | Anonymous

    Back in late January, an entry on the NASSCOM India Leadership Forum blog caused a bit of a brouhaha. In it, Vishal Gondal, CEO of mobile games company Indiagames, accused Indian IT companies of failing to adapt to the world of social networking.

    "This is surely one 'social' cause [that] the Indian IT leaders should wake up to," he wrote.

    His posting attracted a stream of comments - some rather less measured, and more caustic, than others. On the whole, however, those who left comments appeared to agree with Vishal Gondal: there is still much work for such companies to do if they're really going to reap the benefits of Web 2.0.

    I broadly agree, but with certain caveats. First, I think it's true of outsourcing companies everywhere in the world, not just India. Second, I think we need to recognise that the measures that Mr Gondal suggests for social networking success - a Facebook page, a Twitter account - don't necessarily translate well to the world of IT services and outsourcing.

    It's a subject I thought I'd discuss with Raj Datta, chief knowledge officer at Indian IT and R&D services company MindTree. I first met Raj in London about three years ago and think he's a great person to speak to about social networking. That's because Raj's work at MindTree is driven by the belief that humans are "wired to share" and because social networking takes centre stage in helping Mindtree's workforce to share ideas and knowledge. In fact, the company has been using social software since 2003 and its overall philosophy has been "socio-technical" from the very beginning.

    "I remember in 2006, I was chairing a panel at a conference in India, which featured Jimmy Wales of Wikipedia," Raj recalls. "Following his presentation, I asked the audience a simple question: 'Who here is working with wikis in the enterprise?' Only about 5% of hands went up," he says.

    If he performed the same ad-hoc poll today, the story would be different, he believes. "The last two to three years has seen a tremendous hype around social software, social networks, Web 2.0 and Enterprise 2.0 as buzzwords, which has demanded attention from various departments."

    But have Indian companies been able to transform Web 2.0 hype into action, I wonder?

    "Most Indian IT companies today are dabbling it. However, they are early in their discovery process and are grappling with typical issues, ranging from technology, to policy, to process," Datta says. In general, he believes, companies are not easily making the shift to a more open, social, collaborative environment - but there is no way to avoid social software as it is fast becoming part of the "natural habitat" for many people who want to share ideas, whether they're at home or at work.

    Perhaps it's just not realistic to judge a company's enthusiasm for social networking by whether they're experimenting with it publicly?

    At MindTree, for example, internal corporate communications have provided an ideal platform for early experimentations with social networking. Instead of a one-way, 'top-down' approach - where the CEO or other top executive addresses the workforce in the same way that a general might dictate a battle plan to the troops - Web 2.0 creates conversations where communications can flow in multiple directions.

    The systems and tools that Raj and his team have built have social features that also allow 'bottom-up' and 'lateral' communications, too, he says. "For example, our Neuron idea management system allows for ideas to percolate upwards in the organisation to the senior-most people, and in parallel, allow for peer-to-peer lateral communications where people can comment on an idea, rate it, build links between ideas and so on," he says. But top-down communication still take place, because senior executives use the system to issue requests for ideas along a particular theme or to solve a specific challenge, he says. Now that's really tapping into 'the wisdom of the crowd'.

    Social networking is also key to how MindTree communicates with its clients about the progress of projects. The company's collaborative ProjectSpace portal allows for effective collaboration between project teams, clients and subject-matter experts so that they can track issues, build project-specific knowledge bases in wiki formats, and establish discussion forums for questions and clarifications.

    Raj tells me that he and his team are now working on a next-generation system that will allow MindTree to tap into social networks outside of the company - but in a "planned and seamless" manner, of course.

    So it seems to me that there's probably a lot going on behind the scenes at outsourcing companies. Just because a provider doesn't have a Facebook page or a Twitter account, that doesn't mean it's not interested in social networking or failing to explore Web 2.0 it in some part of their business.

    IT companies - whether they're in India or anywhere else in the world - are by their nature focussed on business-to-business (B2B) communications, not business-to-consumer (B2C). In other words, they're not trying to sell a new chocolate bar, washing detergent or hatchback car to the general public.

    For them, the true value of social networking lies in finding better ways to tackle client challenges and track project progress. These are the things that set them apart from their competitors. So internal social networking initiatives are the best way for outsourcing providers to experiment with new tools and approaches, long before they dip their toes into the dangerous waters of public forums.

  • 5 Mar 2010 12:00 AM | Anonymous

    NBN Co Limited, the company established to deliver the national broadband network in Australia, has awarded Accenture a five-year contract to provide its core HR administration services.

    Under the terms of the contract, Accenture will provide HR administration, records management, recruitment administration and performance and rewards administration to NBN Co.

  • 5 Mar 2010 12:00 AM | Anonymous

    The Main Street America Group, a provider of insurance products to individuals, families and small businesses in 24 US states, has signed a seven year strategic ITO agreement with Wipro.

    Under terms of the agreement, Wipro will manage Main Street America’s IT organisation. The contract aims to achieve faster time-to-market capabilities and reduce operating costs by utilising economies of scale.

    Ronald James, Main Street America’s chief information officer, commented: “As The Main Street America Group continues to increase scale and productivity, we need to implement more efficient processes while reducing our operating costs”.

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