Industry news

  • 6 Mar 2009 12:00 AM | Anonymous

    Greenwich council has signed a £6m IT contract with Logicalis, an international solutions provider, to upgrade and implement a Local Area Network (LAN) and Wide Area Network (WAN) over the next seven years. The new IT network is set to support innovative e-services for the benefit of citizens and visitors to the London 2012 Olympics.

    The network implementation will take place over the next 12-18 months and will involve the migration of over 10,000 employees to the new voice and data network. The network will also support Greenwich Council’s local home and remote workers.

    Cllr Peter Brooks, Deputiy Leader of Greenwich Council, commented, “The decision to outsource the day to day operational maintenance of the network will enable us to focus on delivering applications and services that streamline existing processes.”

    Cllr Brooks also said that the demand for council services during the Olympics would see a “significant increase” and that Greenwich Council wanted an IT partner to help meet the challenge the Olympics will bring.

    Greenwich could be a hotspot for Olympic visitors as Greenwich Park has been proposed as a site for equestrian events. However there is an ongoing environmental campaign against the use of the World Heritage Site as a venue.

  • 6 Mar 2009 12:00 AM | Anonymous

    You’ve probably already had your mailbox swamped with highly amusing Friday anecdotes but we all know what you’ve all really been waiting for, it’s the sourcingfocus.com weekly roundup!

    Great news for Aviva on Tuesday as they pinned down a $1 billion contract with EDS. As part of the deal 300 Aviva employees are set to be transferred to EDS. Not such great news for the EDS employees who are now facing possible pay cuts due to cost reduction measures announced by its parent company HP.

    Apart from the cost cutting at HP and EDS, the week has been broadly positive for the world of outsourcing. EquaTerra reported that interest in outsourcing has risen by 9 percent in an annual study.

    As part of their ‘Outsourcing Service Provider Performance and Satisfaction Study 2008-09’, six percent of participants (all UK organisations) said they would be looking to outsource more in 08-09. The main reason for choosing outsourcing were the pressures of the downturn. Well, every cloud has a silver lining.

    With Slumdog Millionaire winning eight Oscars India has never been in the media spotlight so often. However, Hollywood films are not the only thing putting India on the map. In the equally glamorous world of outsourcing, India is soaring above the rest with 89 percent of respondents in the EquaTerra report outsourcing their ICT services there.

    More good news came in from Northern Ireland in the shape of 900 new jobs being created by gem, a Belfast BPO firm. Downturn? What downturn?

    Geraldine Fusciardi, Sales and Marketing Director of gem, spoke to sourcingfocus.com and explained that gem and Invest Northern Ireland, who are investing in gem’s new delivery centre, hope to make Northern Ireland a more attractive location for UK outsourcing.

    The week also saw the launch of 2009’s Outsourcing Black Book which, surely to the ire of many, brings offshore risk back to the fore. Sourcingfocus.com asked the experts what they think in ‘For whom the bell tolls’.

    That brings us neatly to the end of the week. Looking back over it I am awash with Slumdog Millionaire-esque positivity. Let’s see what next week brings…

  • 6 Mar 2009 12:00 AM | Anonymous
    This morning a firm called The Consulting Association was shut down for gross breaches of the Data Protection Act.

    The Information Commissioner has alleged that over 40 multinational construction firms, including Taylor Woodrow, Laing O'Rourke, Costain and Balfour Beatty, have been paying the Worcestershire-based company for years to vet job applicants in terms of their union affiliations, relationships, and other information, such as attitude to work.

    While vetting is commonplace and not illegal, holding a secret database is; crucially, this prevents the people concerned from examining data and establishing whether they are correct, relevant, or up to date (which are all legal requirements for such information).

    People within the construction industry had long suspected the existence of a 'blacklist', but until now it had been difficult to substantiate.

    This got me thinking about a range of issues that I'd like to share with you, as they will impact on the services and outsourcing sectors over the next few years as Whitehall strips away legal protections against the trade in the new currency of the 21st century: your and my private data.

    In a spirit of openness and full disclosure, I'm going to share some private data with you: my name appears on a database of people who have been detained and questioned under the Prevention of Terrorism Act (PoTA). The reason is that, one summer's day, I took a photograph of a friend at Brighton railway station.

    The national-security-threatening action of a smartly-dressed, middle-aged man from Folkestone taking a picture of a friend at a coffee stand led to my camera being seized by police, an intrusive search of my person and belongings, and my name being added to the police's database of people apprehended under 2005 terrorist legislation.

    It's likely that, since then, my career, finances, communications, credit history, and so forth, have been investigated and logged – and I say this as a journalist who uses this forum to discuss India, China, Vietnam, and the Middle East.

    Context, however, is the thing lacking in any ill-considered scrabble for data, and technology cannot fill that hole – it can only make it deeper.

    Once all these connections have been made a misleading or inaccurate picture can be created about any person, by anyone looking for specific patterns of behaviour.

    And believe me, people are looking. However, what no one considers is that the act of looking is itself an inherited pattern of behaviour, a meme, from McCarthyism and the Cold War, but we never learn the signal lessons of history.

    Indeed, sometimes the quest to source such information – or its gathering – is a matter of deep-seated prejudice. Data on the Consulting Association's books, for example, included comments about people being Irish, trouble-makers, ex-Army or former shop stewards.

    I am far from alone in having been detained under questionable circumstances, but data from such cases remain on government databases. The future implications of that remain unclear for me and, perhaps, millions of others.

    In terms of the Consulting Association in the private sector, the implications have yet to be established for anyone about whom inaccurate, out-of-date or irrelevant information may have been used to deny them employment. Legal actions may result from the data's publication later this month – both against the firm that gathered the information and the firms that paid for it.

    Now, the reason for me sharing all this with you, voluntarily and candidly, is to demonstrate that vast amounts of intrusive, out-of-date, irrelevant, inaccurate, prejudiced and potentially damaging information will be gathered and traded by organisations about 'private' citizens, given even the slightest opportunity to do so. Any avenue will do, as eventually all lead to the same place once data-sharing restrictions are taken down within Whitehall.

    The Government would like to share data across as many departments as possible, and also have access to phone and email records and your and my websurfing habits.

    In such a climate, who vets the databases? And who could hope to follow the trail of data about themselves across a sprawl of government departments and their myriad connections with the private sector?

    The terrorist at the coffee stand is you or me, in the Government's eyes – and I speak from personal experience.

    The thing is, I'm not convinced that the Government really believes that. There are always paying customers for this type of information, and it matters nothing to some that it may be gathered or held illegally, or be out of date, inaccurate, or irrelevant in law. This morning's closure of the Consulting Association is a prime example: once such data exist, someone will pay for them and want to share them to their own advantage.

    Trade Secretary Peter Mandelson, once he'd wiped himself down from a faceful of green custard this morning (doubtless now on YouTube), said that he will investigate whether such practices are more widespread

    Of course they are, and the Government is in the vanguard. It simply wants to remove all the legal obstacles to their wider usage and commercial exploitation.

    Both my detention and that of thousands of others occurred soon after the PoTA was passed, demonstrating that as soon as such legislation becomes law, organisations champ at the bit to use it excessively and, often, inappropriately.

    In these days of targets and endless bureaucracy, we should also factor in incompetence, corruption, and the need to be seen to do something. Those are elements just as dangerous as armed zealots, because they are far more prevalent but equally destructive to people's lives.

    Those are the views of many leading doctors, who are also concerned about the threats to data protection that seem to be emerging from every quarter as sharing across the public sector becomes seemingly unstoppable.

    In a letter to the Daily Telegraph this week, a group of health professionals said: “Both common law and the Data Protection Act (DPA) 1998 enshrine an individual's right to have the data stored about them protected. The DPA in particular includes the principles that data must be processed for limited purposes, be adequate, relevant and not excessive, and not kept longer than necessary.

    “The principles of the Data Protection Act 1998 are fundamental to the functioning of the National Health Service. We are therefore extremely concerned that the Coroners and Justice Bill, as currently drafted, allows the override of these principles, and rather than protecting confidentiality, permits an unjustifiable level of sharing of confidential person-identifiable health data.”

    The letter was signed by, among others, Dr Hamish Meldrum, chairman of Council, British Medical Association; John Black, president, Royal College of Surgeons of England, and Dr Peter Carter, chief executive and general secretary, Royal College of Nursing.

    Security has always been about several things, among them confidentiality, integrity and limited availability, and data protection partly concerns individuals' legal recourse should those elements be breached.

    We are moving, however, into a very different world and a data economy in which the Government wishes to be the largest player.

    As outsourcing professionals we need to consider all of this very carefully as it is our enterprise that will be called upon to make the Government's proposals a reality, and that spells controversy on a scale not witnessed since the Washington of the 1950s.

    The difference is we now have the technological means to make it impossible to undo the damage to a nation's peace of mind, or to many innocent people's lives.

    When a figure such as Dame Stella Rimington, former head of MI5, accuses the Government of exploiting people’s fear of terrorism to restrict civil rights we should consider that not everything is an opportunity for new business.

  • 6 Mar 2009 12:00 AM | Anonymous

    Much to the umbrage of those languishing at the foot of the rankings, the launch of Brown and Wilson’s ‘2009 Black Book of Outsourcing’ has put offshoring and the risks involved, perceived or otherwise, firmly back on the news agenda.

    This year’s report, ominously titled ‘The Year of Outsourcing Dangerously’, takes the 50 best recognised offshoring locations and ranks them in the Safest and Riskiest 25. Taking into account ten factors that could conceivably affect offshoring operations, and therefore end-user’s businesses, the report aims to give those involved in outsourcing an idea of the threat each country poses to business continuity.

    Some of the big winners in the report include Singapore coming in at number one in the ‘Safest’ category followed closely by Dublin, though of course coming complete with its higher European price ticket. The current bellwether of Africa, Egypt comes in at number ten but the rest of the continent is dismissed by Brown and Wilson in one sentence “The entire continent of Africa still poses serious dangers to business continuity and is recommended to be avoided.”

    But what stall can today’s potential outsourcers really set in these rankings as cost pressures of the recession intensify?

    Dinish Goel of TPI, commented, “That would really depend on what parameters and criteria have been used in arriving at the ranking. Further, generic rankings, while relevant, do not necessarily apply in the same rank order to a specific client situation.”

    The report itself is extensive having surveyed 3010 end-user executives during the later half of the year, 448 of these were then included within the analysis and 125 offshore locations were selected to feature in the report based on employee counts. So while vendors and industry watchers may be surprised at some of the countries’ positions, the results reflect the views of a sizeable chunk of the end user marketplace.

    Kit Burden, a Partner at the DLA Piper law firm, recommended a common sense approach in light of the report, “Some destinations are generally recognised as being relatively "safe" for example the nearshore options such as Czech Republic, Poland, Ireland and further afield options such as India and the Philippines, and insofar as the rankings reflect this, they are worthwhile to support the basic sourcing decision.”

    But most advisors sourcingfocus.com spoke with were quick to add that the Black Book and other similar surveys can only take a potential outsourcer so far and need to be considered alongside other factors.

    “Most users of outsourcing tend to be more sophisticated nowadays in their offshoring decisions and consider many more factors when making their decisions,” said David Skinner, from the Global Sourcing arm of Morrison and Foerster. “Most advisors nowadays will give extensive insight and analysis on offshoring locations beyond what a report can divulge.”

    Another reoccurring theme was that of perception over reality – whether civil unrest and terrorist attacks were actually causing problems for outsourcers. In one case sourcingfocus.com spoke with a Kenyan call centre that continued to operate without hitch during last year’s civil unrest around Nairobi; meanwhile global media outlets conveyed an entire country in turmoil. Likewise Mumbai languishes at number 42, surely suffering from last year’s terrorist attacks. sourcingfocus.com heard no reports of Mumbai’s attacks affecting outsourcing operations.

    “There is a lot of scaremongering but the reality is that there are very few instances of impacts upon offshoring or outsourcing,” commented Kit Burden.

    Nevertheless those that spoke to sourcingfocus.com were keen to convey the importance of spreading risk.

    “It’s important that end-users look at the supplier, not just the location. Most of the big suppliers will have delivery locations worldwide now and will be able to handle any problems,” said David Skinner. Also adding, “A good thing about assessing risk in offshore locations is that it gets end-users asking the right questions of suppliers. It makes companies do things correctly.”

    Prudence it seems will be a key theme in offshoring throughout 2009. But while the report predicts a shift in preference towards nearshoring, stating that offshore vendors without sufficient nearshore representation would face problems securing contracts, this was not echoed by experts.

    “The cost pressures are simply too acute,” says Kit Burden. “So long as the destinations in view "pass muster" at a basic level, they will not be seen as being so risky as to justify foregoing the cost advantages otherwise on offer.”

    Chris Tiernan, Managing Partner of Grosvenor Consultancy Services LLP, explained the choice ultimately does come down to cost but it’s not as simple as a direct comparison, “The issue is the balance of what might happen if risks materialise against the cost of taking steps to address them.” He also said that the costs involved should be assessed and worked out in the outsourcing contract. “Interestingly a deal with these contractual stipulations was signed just two weeks after the Mumbai incident, the client having been there while they were still clearing up after the incident,” he added.

    This common sense approach was supported widely but Andy Gallagher, head of sourcing at Compass Management Consulting, recommended further due-diligence and contingency planning. “Contingency planning is an issue which many clients choose to brush away in the drive to minimise costs. The Satyam case in India was a dramatic reminder of the need for some contingency capability on the client side of outsourcing deals in order to minimise risk and keep systems running.”

    David Skinner of Morrison and Foerster summed things up succinctly “Of course there are risks but these are often exaggerated by the media. Although, those dependent on just one location for their offshoring should have cause to be worried. The report should prompt all those who aren’t doing things correctly to assess their arrangements and put the necessary measures in place to protect themselves.”

  • 5 Mar 2009 12:00 AM | Anonymous

    The Isle of Man Government has worked with Micro Focus, a UK provider of application management and modernisation service, to remove its dependence on its ageing mainframe. The project comprised largely of moving complex mainframe applications to new platforms without impacting ongoing government services.

    The new mainframe is expected to deliver maintenance costs savings of up to £1.5 million over the next six-years and to achieve a positive Return on Investment (ROI) in less than 12 months. The Government also hopes the deal will free up resources to deliver more services in other areas for the citizens of the Isle of Man.

    Allan Paterson, Director of Isle of Man’s Information Systems Division commented: “We have a far-reaching vision for comprehensive, fully integrated, online government services on the Isle of Man, and moving to modern, flexible and cost-effective Windows platforms is a key element of our IT strategy. Advanced development tools from Micro Focus enabled us to migrate our critical COBOL applications from the mainframe to our strategic platform rapidly, in a highly cost-effective manner and without impacting the quality of our services.”

  • 5 Mar 2009 12:00 AM | Anonymous

    Whitbread PLC, the UK’s largest hotel and restaurant group, has signed a new four-year data and voice networks contract with Fujitsu Services. As part of the contract, Fujitsu will be responsible for providing secure, managed voice and data networks and VOIP across all Whitbread’s corporate locations, hotels and restaurants.

    Mark Fabes, business support systems director at Whitbread, comments: “Over the last five years, Fujitsu has modernised and managed our entire data and voice networks, providing a secure, high quality service. In the current economic climate, a reliable and robust data network is critical to our operational optimisation and ensuring we provide the best possible experience for our customers across all of our brands. The availability of our network and the readiness of the data it provides underpin all of our business activity.”

  • 5 Mar 2009 12:00 AM | Anonymous

    eTelecare Global Solutions, a global BPO provider, has acquired of The Phone House Limited, a South African BPO subsidiary of Talk Talk Group Limited, the telecommunications division of The Carphone Warehouse Group. As part of the acquisition eTelecare also secured a three-year BPO contract with Talk Talk Group customers in the United Kingdom.

    “A key component of our corporate strategy is to address the large UK contact centre market,” said John Harris, President and CEO of eTelecare. “We are pleased to have this opportunity to acquire The Phone House centre because it provides an offshore delivery platform to serve the UK market and establish an important new business relationship with the Talk Talk Group.”

  • 4 Mar 2009 12:00 AM | Anonymous

    Essex County Council (ECC) plans to award a multi-billion pound contract to either IBM or TI systems, The Times Reports today.

    In an interview with the times, Lord Hanningfield, the Shadow Transport Secretary, revealed plans to outsource the majority of ECC’s back office processes to the tune of £5.5 billion over eight years. The deal is hoped to deliver savings of at least £200 million. ECC will decide who will deliver the contract next month.

    The full article can be seen here:Councils poised to hand running of care and education to private firms

  • 3 Mar 2009 12:00 AM | Anonymous

    Europcar, a European provider of passenger car and light utility vehicle rentals, has extended its ITO agreement with Unisys Corporation.

    Under the new contract, Unisys will continue to deliver IT services to Europcar employees in locations throughout Europe, including Europcar’s headquarters across seven countries – Belgium, France, Germany, Italy, Portugal, Spain and United Kingdom – and 1,800 commercial agencies.

    The IT services to be delivered include: management and support services for desktops and other IT infrastructure; creation of master software images for Windows and Linux desktops; and technical assistance for resolution of service events.

    Kurt Deli, information officer at Europcar, said: “Through its management of our IT infrastructure and equipment, Unisys has consistently provided high-value outsourcing services that help make Europcar’s employees more productive and better able to serve our customers efficiently. The new contract is further recognition of that valuable capability.”

    Financial details of the deal were not disclosed.

  • 3 Mar 2009 12:00 AM | Anonymous

    Aviva, the worlds fifth largest insurance group, has signed a $1billion (£700 million) contract with EDS who will provide data centre services for the next 10 years.

    Under the agreement EDS will be transforming and managing two data centres located in Norwich, England. These centres will be used to service Aviva’s operations in the UK, India, France and Ireland and should be operational by July this year.

    Igal Mayer, UK general insurance CEO at Aviva commented, “After a thorough evaluation, we chose EDS over other global service providers because of its collaborative approach.” Mr Mayer also added that the data centres will “increase operational efficiency and lower costs.”

    300 Aviva employees are set to be transferred to EDS to help deliver the services however this comes at a time when EDS employees are facing possible pay cuts after costs cutting measures were announced by HP.

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