Industry news

With the current change in climate, many companies are responding to the effects of a tough economy by expanding their use of existing outsourcing agreements and looking at new contract arrangements. Recent TPI data has revealed the strongest half year performance in outsourcing in 10 years. Gartner’s latest report also predicts a growth in the reliance of outsourcing. So, to ensure best practice and competitive advantage, robust Resource Planning should be conducted throughout the lifecycle of an outsourcing project. This should include the early decision making stage, through procurement, vendor selection, contract negotiation and enforcement, to the service delivery and management of the relationship. This requires planning when and where, specific human talent and resources are to be deployed to guarantee efficient and effective commercial management.

Although there is a perception, with redundancies hitting the National Press on a daily basis, that it is currently an employer’s market. Actually, there is a stronger need than before to retain key personnel. A company can use lock in bonus schemes to mitigate the risk of losing key personnel. They can also maintain their competitive edge by offering training initiatives, not only to enhance their own skill pool, but also to make them an employer of choice. However, even with the most competitive and innovative schemes in place, there will always be some natural and welcome attrition and a need to source new leadership talent. Usual methods of advertising and recruitment data-base searches are less likely to bear fruit in recessionary times and often do not entice the best in class, as many good candidates go to ground during periods of uncertainty and instability. A pro-active methodology is best applied to map the market and approach a targeted and gifted pool and then manage the process through to successful hire.

The credit crunch is also likely to hasten organizations seeking to cut the amount paid to vendors by negotiating lower rates with suppliers and creating additional competitive advantage. This will also increase the dependency on offshore suppliers.

In a downturn, Mergers & Acquisitions are sometimes more of a necessity than part of a longer term strategy. As a result the press has been alive with M & A news in recent weeks, not least the Lloyds TSB and HBOS merger. The transitional stage following a merger is always a critical time for companies and this is amplified even more during more unstable economic times. Aligning systems after a merger is always challenging – often organizations are left with a legacy of systems that are incompatible (and in a worst case scenario the internal politics can impinge the best outcome being achieved). This creates an increased demand for technology professionals specializing in IT architecture. In particular we are seeing a demand for skills around migrating applications, communication systems and data and process integration.

An efficient Project and Programme Management Office responsive to a leaner business delivery model is an essential requirement in challenging times. Many companies are seeing significant savings by operating a centralized robust project management office. There has been, and will continue to be, an exceptional demand for good programme and project managers with excellent business engagement and stakeholder management skills, particularly where technology is being used to drive fundamental business change within complex organizations.

A recession forces all businesses to re-examine their strategic vision. Beyond the immediate agenda, for business to thrive during a period of global instability, this should be quickly followed by a bold and aggressively delivered strategy. Without doubt this will mean there will be a continued demand for professionals with a strong track record of driving business innovation and technology change with cost reductions - cheaper, faster, smarter.

Wipro is looking for acquisition opportunities in Europe, according to French daily Les Echos. Azim Premji said in the interview that he was eyeing "a few acquisition opportunities, notably in Europe in software or services companies with a revenue of at least $100 million".

Wipro, which wanted to generate 40 percent of its revenue in Europe within three years, planned to beef up its positions in France and Germany, he said.

The Federal Bureau of Investigation (FBI) has awarded CSC task order to continue supporting the FBI National Instant Criminal Background Check System (NICS) call centre. The order has a one-year base period and four one-year options with an estimated total five-year contract value to US $59 million.

The original contract was awarded to Datatrac Information Systems Inc. in 2003. Datatrac was acquired by CSC in 2006. This new contract was awarded to CSC during the company's third quarter fiscal year 2009.

Under the task order, CSC will provide the FBI with call centre and help desk services to support the NICS call centre. Federal firearms licensees use the call centre's toll-free telephone number to request background checks on individuals purchasing a firearm.

"Since 2003, CSC has supported the FBI in preventing the transfer of firearms to any person prohibited under federal law," said Aaron Fuller, president of CSC's North American Public Sector Enforcement, Security and Intelligence division. "CSC will provide the FBI with quality customer service and help desk support through its Contact Center Solutions Center of Excellence, which has multiple locations in the U.S."

Satyam, the embattled ITO provider has appointed A.S. Murthy as chief executive officer. Murthy, a 15-year veteran of the organization, begins immediately.

“Extensive board discussions over the past few weeks made it clear that the new CEO should come from within,” said Satyam Board Member Deepak Parekh. “ASM, an extraordinary executive with widespread support among all stakeholders—internal and external—will do an exceptional job leading Satyam at this critical juncture.

“ASM has a deep understanding of the organization and proven management expertise; he has led a business unit, overseen global delivery, nurtured customer relationships and spearheaded the entire human resources function. Moreover, he is extremely well respected for his ability to integrate teams and foster collective decision making—critical skills as Satyam continues to revive.”

The board also appointed Homi Khusrokhan, the former Managing Director of Tata Chemicals, and Partho Datta, the former Finance Director of the Murugappa Group, as special advisors. These experienced executives will lend their expertise to Satyam’s Management and Finance areas, respectively. The special advisors, along with Boston Consulting Group, will work pro bono and help Murty and the board define and executive key strategies.

In another significant development, the board confirmed that it has secured approximately US $130 million in financing, which will be directed toward working capital requirements. The loan, along with healthy collections, will help the company manage several short-term financial challenges.

Volvo Treasury has chosen TradeTech Consulting to manage and support Volvo Treasury’s Wallstreet solution.

Fredrik Ringström, IT manager of Volvo Treasury, said, “By turning over system operations and support to TradeTech, we expect to get even more out of our treasury solution.”

The contract will began on the 4th February.

The Bavarian State Ministry of Justice and Consumer Protection has extended its ITO contract with Unisys Corporation. The three-year outsourcing services agreement includes options for two additional yearly extensions.

Under the terms of the new contract, Unisys will replace existing PCs and printers with more powerful models and will provide services to improve the organization’s server and overall network efficiency.

Walther Bredl, director of information and communication at the ministry, said, “Demands on the judiciary are growing every day – for example, having to provide electronic-justice communications or finding new ways to improve services for our citizens. We understand that continuous, managed enhancement of our IT infrastructure is key to delivering these services.”

CSC has launched a company-wide cloud computing and software services initiative in order to help clients manage data more easily, lower operational costs and make collaboration across public and private networks easier and more effective.

Brian Boruff, who joins the company as a vice president, will lead the initiative. He will report to Russ Owen, president of Americas Commercial Group.

"I am pleased to welcome Brian to our executive leadership team," said Owen. "His broad experience with software and services will benefit new and existing CSC clients. I look forward to working with him as we continue to position CSC for future growth and profitability."

Atkins, a multinational engineering and design consultancy has signed a five-year IT outsourcing deal with Capgemini UK. The contract, worth £13.7 million runs from 2009 to 2014 and covers support for both IT infrastructure and core corporate applications including finance, human resources and payroll.

The contract, won against competitive bidding, renews and extends IT outsourcing arrangements dating from 2001 and covering a period in which Atkins developed its international focus so that it is now the largest multidisciplinary consultancy in Europe and the world's eighth largest global design firm. Earlier this month Atkins was appointed the official engineering design services provider for the London 2012 Olympic Games.

Linda Barker, IS Head of Finance and HR Systems at Atkins, said: “Capgemini won the bidding on the quality of their work for us since 2001 and the excellent relationship they maintain with Atkins. We especially value their commitment to total collaboration with our business, and to ongoing proactive innovation. We are delighted to be working with them for a further five years.”

Working together, Atkins and Capgemini have already successfully managed a transition from locally based IT facilities to integrated systems, based on JD Edwards and Oracle software, tailored to the needs of Atkins international business. Challenges for the next five years include harnessing technology to further streamline business processes and generate continuous improvement in cost-efficiency and customer service.

Services to Atkins under the new contract will continue to be based at Capgemini service centres in London and Woking, with a dedicated team of IT professionals and development consultants working on-site at Atkins key locations.

Rodale, an international media company, has chosen Convergys to develop and implement its customer care and relationship management solutions.

Howard Weill, SVP of finance and operations at Rodale, said, “In a highly competitive marketplace, providing our customers with choices for how they can communicate with us is another way we can continue to provide added-value. With Convergys’ relationship management solutions, Rodale now has an end-to-end customer care solution that consolidates and streamlines operations and reduces costs while simultaneously raising its level of customer satisfaction.”

No financial details were released.

Aspen Valley Hospital has today announced that it has signed a five-year extension with CSC, who will continue to provide BPO services for the hospital.

Under the new agreement, CSC will continue to provide business office support, including billing, accounts receivable and third-party claims reconciliation.

Terry Collins, chief financial officer of Aspen Valley Hospital, said, "Our experience in outsourcing our business office functions to CSC has created a massive turnaround that outstrips anything I've seen in my 25 years in hospital administration."