Industry news

Traditional Western business models could be under threat by ‘ambitious internationalism’ emanating from the emerging BRIC economies, a new study has found.

The report conducted by Cambridge University’s Institute for Manufacturing (IfM) on behalf of Capgemini, investigates the role of emerging multinationals in global trade. The report highlights the threat to western business growth from a new breed of companies that are rapidly moving onto the global stage. These companies have ambitious internationalisation strategies, pursued increasingly through mergers and acquisitions, some of which have targeted well-known western companies

The report investigates the growth profiles of a cross-section of manufacturing organisations within the key emerging markets of Brazil, Russia, India and China (the BRIC nations) and reports some interesting trends:

• The process of globalisation within emerging economies is driving the growth of domestic companies into emerging multinationals (EMs), which are challenging the traditional model of western business.

• Expansion approaches for these companies include international investment in Green-field operations, Joint Ventures and Mergers and Acquisitions, with the latter an increasingly popular strategy.

• Companies from the BRIC nations can grow by entering markets with offerings in products and services which would be unattractive for western businesses because of low prices, but these may be a bridgehead to growth into more profitable segments.

The growth of these EMs was studied by the Cambridge’s researchers in the context of historical, political and economic factors with particular reference to outward foreign direct investment (FDI). The four countries studied have very diverse economic backgrounds and these factors have created similarly individual contexts for growth and development. Nonetheless, each is exhibiting strong growth and acceleration in outward FDI which reflects the internationalisation of its EMs.

Westminster Council has introduced ‘pay by phone’ parking across its borough that it hopes will save over £6million per annum. The Council has developed the system with Verrus technology and contact centre support from Converso who are jointly responsible for handling up to 80,000 transactions per week.

Alastair Gilchrist, Director of Parking at Westminster, commented on the system: “We were looking for a convenient method of payment for the general public that would not only eradicate the high level of crime and would also give us vital statistics on the usage of particular parking areas. The pay by phone service is a perfect example of how you can use a balanced mix of technology and human interaction to provide a convenient, fast, popular and extremely cost-effective method for high volume, small value payments. We felt that the whole process could not be completely automated because people still want the comfort and re-assurance of speaking to a live person for their first interaction. By using the blend of technology from Verrus with the customer service skills of Converso is the perfect solution to introducing a service that is being readily adopted by the general public.”

International IT services provider, Steria, has selected recruitment outsourcing specialist, Ochre House, to manage all permanent recruitment for its divisions and companies within the UK.

Under the three year contract, Ochre House will be responsible for sourcing around 300 roles per annum in a wide range of professional services areas from SAP consultants, project managers and practice heads to technical architects and analysts to legal and finance staff and new graduates. Ochre House will also provide consultancy services aimed at maximising the effectiveness of all Steria’s ‘talent management’ processes.

When Steria acquired the UK technology company, Xansa, in October 2007 the two established recruitment processes needed to be combined into one. “The new combined UK business at Steria had legacy suppliers which had been in place for some time” says Jean Hopkins HR Director for Steria in the UK. “It was a great opportunity to look carefully at what processes and strategies we needed to implement in order to attract and employ the best talent for our businesses.”

BT has extended its ITO agreement with Steria for another six years in a deal that could land the outsourcer an extra £75 million. Under the new contract, lasting until 2014, Steria will continue to support the key applications that underpin BT's UK operations for finance and accounting (F&A) transaction processing, ledger and payroll services.

Building on a 20 year relationship, the extension will provide continuing support for and transformation of the critical business applications that support BT's finance operations. This contract will also enable BT to optimise its use of Steria's integrated delivery model, moving towards the most cost-effective and efficient service possible.

Kevin Richards, Director of Enterprise Management Platform in BT Design, said: "Steria has worked with BT for many years and has evolved its services and approaches along with BT's changing business and IT requirements. Keeping the business process and IT service closely coupled provides us with a streamlined and efficient service that maintains effectiveness at critical business periods. We are therefore pleased to be extending our relationship with Steria for a further six years."

Bedford Borough Council has signed a contract with Agresso UK worth more than £400,000 which will see the company implement and provide support for the core financial system for the unitary authority.

Being awarded Unitary Authority status means that Bedford Borough Council, which already uses the Agresso Business World suite, will take over responsibility for services provided by the County Council, which currently uses SAP. Following an evaluation process, Agresso was chosen as the preferred financial management system for a unitary Bedford Borough as it was felt the system would deliver more value for money over time and better meet its financial management requirements.

Frank Branston, Mayor of Bedford, commented: Selecting Agresso means we have a fit for purpose system that the unitary authority will be able to rely on for accurate and up to date financial information. The Agresso system will be housed and operated by Bedford Borough Council so we have the ability to tailor it to meet the needs of the authority.”

Selecting which financial management systems will be taken forward represents a critical step on the way to creating the new authority. The Agresso system will provide the data for the new council’s statement of accounts as well as allow capital and revenue budget monitoring.

John Crooks, Agresso Managing Director, commented: “This is a great endorsement for Agresso. Our unique architecture eliminates the need to modify source code so that organisational change is typically reflected in the system by the business users rather than IT personnel or expensive consultants. The solution is unique among ERP systems and this ability to address change continuously after the initial implementation is complete, delivers cost savings for customers.”

Convergys Corporation, a global leader in relationship management, has acquired Intervoice, Inc., for US $335 million in cash at a value of $8.25 per share.

The combined entity will provide clients with a suite of solutions, from a single source, that enhances customer and employee interactions and simplifies operations. With Intervoice, Convergys hopes to extend its leadership position in relationship management adding additional strengths in the software-based interactive voice response, contact center, and mobile messaging technology and applications markets. This position is supported by combining the innovative technology and large, global client base of both companies.

Dave Dougherty, President and CEO of Convergys, commented: “This acquisition is about investing to address the current and future needs of our clients. Convergys is committed to delivering, and in fact enhancing, Intervoice’s product roadmap. Together, we will ensure that all Intervoice and Convergys clients and partners have access to industry-leading technology, professional services, and support solutions that enhance.

News that the Conservative party has commissioned a review of NHS IT policy is welcome. Like it or not, the Tories are increasingly seen as the Government in waiting while Gordon Brown and his Cabinet and ex-Cabinet colleagues conspire to shove prudence back into the cupboard of history.

With a festive period of internecine warfare in the offing on the ruling side of the House, David Cameron has set about seeking learned opinion about how to paint the three-legged, comatose white elephant he may inherit a tactful shade of blue.

This is no root and branch review of the National Programme for IT, however, but it does follow hot on the heels of the Public Accounts Committee's recommendation that NHS IT be thoroughly re-examined. That it is being done by the Opposition is surely an indication that Brown has no wish to generate any more bad news himself.

However, who has Cameron engaged to review how NHS IT will meet patients' needs over the next decade? None other than that venerable and – if I may be so bold – slightly quaint organisation, the British Computer Society, which is to world IT what the British Interplanetary Society is to conquering space (a good egg, a worthy cause, and a noble effort).

The BCS, founded in 1957, a registered charity, and incorporated by Royal Charter in 1984, is the qualifying body for chartered IT professionals.

Its aim to be the leading place for IT-related thinking did not extend to buying the bcs.com domain, however, which belongs to the British Cardiovascular Society. Nevertheless, it revels in its .org status.

Above reproach though the BCS may be, the news is depressing for one simple reason: the last organisation that ought to be reviewing what the NHS wants from its IT is a society of IT professionals. Ask the doctors and the NHS trusts and the admin staff and the nurses!

Engineers know how to build things from the ground up and take them apart again, and can tell you how and why everything works (or doesn't) but they don't have to know why they're doing it. Still, at least Cameron is not engaging a vastly expensive consultancy to do the work.

• Richard Granger has moved to Australia.

Oracle has acquired ClearApp, a supplier of application management solutions.

Leng Leng Tan, Oracle vice president, commented, “With the addition of ClearApp's technology our customers are expected to get continuous and uninterrupted top-down views of their business services and applications”.

The deal is expected to close in the second half of 2008. Until then each company will continue to operate independently.

The Office for National Statistics has selected Lockheed Martin UK to provide IT services for the 2011 Census for England, Wales and Northern Ireland.  The £150M contract was awarded after an extensive procurement process which required the Lockheed Martin UK-led team to demonstrate its ability to provide secure and accurate data capture and processing support services.

Working with the ONS and the Northern Ireland Statistics and Research Agency (NISRA) authorities, the team will design, install and support an innovative system using state-of-the-art character recognition and colour processing for paper census forms. The system will, for the first time, allow for census questionnaires to be completed via the Internet in England, Wales and Northern Ireland.

Ian Stopps, CEO of Lockheed Martin UK, commented: "We are proud to again support the Office for National Statistics in conducting its census. Together, with our industry team, we are committed to delivering a system that enables the government to efficiently and effectively perform the 2011 Census while ensuring that all information remains secure and confidential".Oracle Corporation UK, Polestar Group, Royal Mail, Steria Ltd, and UK Data Capture Ltd.

Lockheed Martin, who successfully provided the data capture elements of the 2001 UK Census, as well as previous censuses for Canada and the United States, has created a consortium of UK-based companies with proven experience. Team members are Broadcasting Support Services (bss), Cable & Wireless, Logica (UK) Ltd.

DGM-Sistemas Lda, an Angola-based IT company, has awarded a three-year contract to Unisys Corporation to help develop and roll out a new citizen ID card program for the Ministry of Justice of the Republic of Angola.

The deal, valued at approximately $22 million, will see Unisys companies develop the back-end systems and biometric ID cards for over 20 million Angolan citizens by 2015.

The aim of the card programme is to reduce fraud and modernise the Ministry’s Criminal Registry.

Unisys will create a centralized citizen registry capable of recording demographic details, digital photographs, digital signatures and fingerprint scans captured at fixed and mobile stations. Around three million records with existing biographic information will be migrated to the new application.