Industry news

  • 16 Oct 2007 12:00 AM | Anonymous

    Sutherland will architect a custom solution, maintain a detailed and centralised database, generate MIS reports and perform data analytics to help ensure Deutsche Bank meets certain NASD and NYSE regulatory requirements.

    According to Deutsche Bank, Sutherland Global Services was selected due to its global service delivery capabilities and marquee Fortune 100 client list, which demonstrated success in supporting business processes in global corporations.

    Sutherland Global Services CEO Dilip Vellodi added, “Deutsche Bank is one of the most renowned financial institutions in the world. We are pleased to have the opportunity to leverage our proprietary application platform and domain expertise to develop a customised solution for their specific needs.”

  • 11 Oct 2007 12:00 AM | Anonymous

    North-shoring is a possible geographical shift in the outsourcing market to the North West of the UK.

    Liberata, a private equity-backed firm which specialises in public sector services, will create 300 new jobs in Pendle, a former industrial centre in Lancashire, through its new business and payment processing centre to supply a contract with Pendle Council. The centre is expected to open towards the end of the month.

    In July, the firm also announced a six-year £75m deal with the Learning and Skills Council (LSC) to assist delivery of the Learner Support Programme and made a commitment to create 300 jobs in Barrow-in-Furness through its Shared Services Centre, which opened in March 2006.

  • 10 Oct 2007 12:00 AM | Anonymous

    Accenture will help WorldSpace implement application development strategies and maintenance services designed to help the company get its products and services to market quickly, increase operational efficiency, reduce operating costs and enhance revenue opportunities.

    “We selected Accenture for their process-compliance, Oracle® Billing and SAP® application capabilities,” said Mike Berkley, WorldSpace CIO. “In my experience, no one in the application development area understands or delivers better business results around emerging technologies than Accenture. Outsourcing our billing and financial applications to Accenture helps us deliver better results more quickly and at lower cost than if we were to resource those functions with only internal staff.”

    “Satellite radio companies and emerging providers alike continue to face a rapidly changing, dynamic marketplace and often need functional capabilities to execute their strategy effectively,” said Dan Lauderback, managing director of Accenture’s North America Communications industry practice. “Our experience with satellite radio companies and emerging providers should allow us to deliver immediate business value and enable WorldSpace to improve its business performance by focusing on its core business of delivering quality radio programming to emerging marketplaces.”

  • 8 Oct 2007 12:00 AM | Anonymous
    Outsourcing has moved beyond simply being a cost-effective approach to IT to become a strategic tool in the corporate armoury, according to a definitive new study of the UK's top 100 companies.

    A survey compiled by outsourcing consultancy Morgan Chambers and CW360, today argues that outsourcing has moved from a cost saving to a more strategic function as corporate budgets tighten.

  • 5 Oct 2007 12:00 AM | Anonymous
    PA Consulting Group, a leading global management systems and technology consulting firm, has agreed to outsource parts of its finance function to Outsource Partners International, a leading provider of finance, accounting and tax outsourcing services.

    Daniel Walker, Global Financial Controller of PA Consulting Group stated “PA Consulting Group is pleased to be working with OPI. They bring a wealth of accounting process knowledge to PA and we were particularly impressed with the experience and qualifications of their staff. We welcome the opportunity to use their near shore and offshore facilities.” Bruce Thew, European President of OPI, stated, “OPI is delighted to be supplying a thought leading firm like PA Consulting Group with our services. PA represents the type and size of organization where we can add value to their Finance and Accounts processes whilst improving their costs significantly.”

  • 1 Oct 2007 12:00 AM | Anonymous
    BT Business, the SME communications division of BT Retail, has acquired Lynx Technology, one of the UK's leading suppliers of IT services.

    Lynx Technology specialises in consulting, technology and outsourcing and has more than 500 employees, including 200 field engineers, 50 consultants and 100 service, support and logistics staff.

  • 27 Sep 2007 12:00 AM | Anonymous
    hiSoft Technology International, China's IT outsourcing industry leader, officially opened its hiSoft-Intel Lab today. hiSoft is committed to further serving its long-term partner, Intel, at a more strategic level. The lab was established as an innovative software testing platform to effectively develop and promote Intel solutions by facilitating product evaluation, experimentation and development. Both companies hope to leverage the facility for more cost-effective research and development innovations.

    Successfully delivered numerous projects for Intel, hiSoft-Intel Lab will continue to focus on platform and cutting-edge technology, delivering localization, software development, quality assurance and engineering services to provide Intel with more value-added solutions. hiSoft will also work with Intel and local government to build a continuous academy institute to mentor and train more engineers to learn Intel technology and leverage it as a scalable channel to supply top talent for the lab. The new lab is based in Shanghai's Zizhu Science Park, also known as one of Intel’s major Asia-Pacific research and development centers. As the world’s largest chip maker, Intel is committed to working with the local industry to help bring Chinese innovation to the rest of the world. hiSoft is a premier global software testing service provider. Its high quality, multilingual, cost efficient offshore testing services offer an ideal solution to maximize the return on IT investments. Except for R&D services, hiSoft will embrace more of its technical service group to serve Intel by promoting its solutions and platforms to local and global markets. “Being one of the key investors as well as one of the strategic partners of hiSoft, Intel can expect best-in-class services from hiSoft. The establishment of the hiSoft-Intel lab is a part of hiSoft's ongoing commitment to enhance Intel’s local R&D capabilities with customized platforms and solutions. The Intel and hiSoft partnership has gone further into many key areas such as software development, software testing, software localization, and IT support. We are looking forward to enabling the lab for future innovations.” says Yong-ji Sun, the Senior Vice President of hiSoft, at the hiSoft-Intel Lab Opening Ceremony. “The hiSoft-Intel Lab is a major milestone for both companies’ partnership. We stand by hiSoft not only in the role of an investor, but also a long-term partner. The new lab will definitely lead us to further success.” says Minerva Yeung, the General Manager of Intel SSG.

  • 26 Sep 2007 12:00 AM | Anonymous

    It is now commonly accepted business practice to adopt outsourcing as a means of refocusing organisations on core matters, reducing non core operational risk, improving quality and staff morale and reducing cost. Although legal firms have been relatively slow on the uptake to date, the legal sector can take advantage of outsourcing and offshoring. Clifford Chance has led the field by moving back-office and secretarial support to its own office in India in order to carry out much of the company’s administrative work. The outsourcing programme is expected to yield over £9.5m in annual savings. Similarly, Pinsent Masons announced a deal to offshore its bulk typing and transcription services as part of a move to change the role of its secretaries.

    Lawyers and their support teams exist to serve their client’s requirements. Client’s requirements are always satisfied directly by lawyers in a personal relationship. The success of any law partnership is dependant on the successful delivery of services to clients by all the lawyers in the firm. However, at the moment a series of challenges have surfaced which has made this more difficult: escalating costs; lack of office space; backlogs in letter production and documentation due to staff shortages; the necessity of using temporary staff to alleviate short term staff shortages; changes to the Legal Services Bill and a lack of qualified staff. Legal process outsourcing is undoubtedly an option that can help legal firms address key challenges, but only if done correctly. So how can a firm best go about using legal process outsourcing to their advantage?

    Minimise set up and management time: If getting an outsourcing arrangement right requires too much effort or time from fee earners, the direct cost savings will be lost, and it will lead to much in-house frustration and a lack of buy-in from key people. For example, per minute / per line dictation is hugely time consuming (in terms of set up and constant management) for the law firm. Fee earners should be spending their time on their core activities, servicing clients and billing for these services and not on the firm’s outsourcing contracts. It should not be expended on systems changes and personnel issues. When an outsourcing relationship is set up, this potential pitfall must be avoided.

    Implementation needs to be evolutionary: The implementation of an outsourcing strategy need not be the cataclysmic, big-bang scenario that some might suggest, but an evolutionary process leading to business transformation. This needs to be characterised by a lack of redundancy for permanent back office staff, the implementation of progressive systems and the contracting of a UK company to manage the offshore relationship. By developing an outsourcing relationship that maximises the benefits of an offshoring strategy whilst minimising day-to-day disruption, the impact on the firm can be managed effectively.

    Changes should be implemented gradually, rather than wholesale changes in one go. This will win over sceptical internal audiences who would not respond well to sudden large scale disruption. In addition, focusing on areas where firms may already have high attrition, use temporary resources or have unacceptable documentation backlogs is potentially the best place to start an offshoring strategy in order to increase service delivery with no reduction in UK headcount.

    Choose the correct processes to outsource: It is crucial to choose the correct processes to outsource, as well as the correct location to send these processes to. The multishoring model means that different types of process can be sent to different locations. An example of a process not to outsource is customer contact – this is something that is core to all legal firms’ business. Secretarial work is a particularly good process to outsource as it allows in-house secretaries to focus on becoming paralegals – performing value-add tasks rather than the audio and copy typing that can be performed offshore. The offshoring of some basic secretarial services allows in-house secretaries to focus on higher-value, client-facing roles, and provides them with an opportunity to fulfil their potential. This drives staff satisfaction and ensures quality staff are retained in-house, and attrition is lowered.

    It is vital to look beyond the cost savings: Focusing purely on cost savings would be a mistake. Service quality and convenience must be high on all lawyer’s agendas. A common phrase amongst lawyers seems to be ‘I do not care what it takes, just do it now and get it right first time’. This may be applicable to a lawyer’s demands of their back office and equally of a client’s demands from a lawyer. Outsourcing provides a means whereby a firm’s support staff ‘raise their game’. By outsourcing the mundane day-to-day work to an environment where service delivery can be instilled via a contractual relationship (including weekend working or 24/7 working), in-house support staff will do more interesting and higher value task and therefore staff retention will increase.

    Planning and implementation must be done correctly from the outset, in order to maintain UK headcount and increase margins: Focusing on the back-office, mundane, client business support functions, and the commoditised, non-client-facing repetitive legal processes (e.g. bulk conveyancing and initial contract drafting) can realise significant tangible and intangible benefits for UK law firms (including significant cost savings).

    In terms of cost savings, a London law firm employing four secretaries will incur a cost to company of around £150,000 a year (including all ancillary benefits, bonuses, sickness and NI, etc.). Typically, but dependent upon the individual department, around half of this work will be copy and audio transcription. If the copy and audio typing is performed offshore, a firm can expect to save £50,000 per year. Additionally, financial savings are accrued from a variable costing model whereby offshore support staff are not directly employed by the UK law firm and therefore the UK firm only pays for work completed. The overhead savings goes beyond the salary differential. By moving workload to another location a firm can realise additional benefits in terms of office accommodation, either by closing offices (or downsizing), or by fitting more fee earners into office-space previously occupied by secretaries.

    Communication is key:

    In order to achieve success within an outsourcing arrangement it is vital that everyone involved understands the rationale behind the deal, the benefits, the approach and the timetable. In conjunction with this, open and honest communications with the firm at large, will leave everyone well-informed of the intentions of the Firm. Offshoring is a realistic and cost-effective opportunity but only if it is the right process is outsourced, to the right partner, in the right location, in the right way.

  • 13 Sep 2007 12:00 AM | Anonymous

    Convergys Corporation, the global leader in relationship management, announced today it has signed a $4.2 million contract to provide customer intelligence solutions to a global financial services firm, a Fortune Top 50 company.

    Under the terms of the eighteen-month contract, Convergys will perform a suite of marketing research services including the Convergys Point-Of-Service-Evaluation approach to surveying customers. Convergys also will perform brand and image tracking research, competitive marketplace research, customer retention research, decision sciences, analytics and reporting, and executive dashboard and results portal development.

    Convergys helps organizations leverage each stage of the customer lifecycle. From customer satisfaction research to complex churn modeling, Convergys maximizes each customer encounter using its expertise in customer satisfaction, loyalty, and equity. We also provide an in-house staff of research and database professionals including doctoral-level, accredited Decision Scientists and Six Sigma Black Belts, global marketing research facilities, and complete analytical infrastructure.

  • 13 Sep 2007 12:00 AM | Anonymous

    Accenture is providing Microsoft with a range of finance and accounting (F&A) and procurement services under a seven-year, $185 million business process outsourcing (BPO) agreement. The agreement outsources some of Microsoft’s transactional finance activities and consolidates services currently provided by other vendors.

    The finance and accounting services Accenture provides cover accounts payable, travel and expense and record-to-report functions, including fixed assets, general ledger, treasury and statutory reporting. The procurement service Accenture provides is requisition-to-purchase-order processing.

    Accenture will ultimately provide these services to Microsoft in 92 countries and 36 languages outside the United States, leveraging Accenture’s Global Delivery Network, which includes delivery centers across five continents.

    “I am pleased with the progress and speed of the transition to Accenture,” said Frank Brod, Microsoft chief accounting officer. “After a few months into the program, we are live with approximately 30 percent of the geographies and are on track for the remainder of the effort.”

    “At Microsoft we’re constantly evaluating our internal processes and determining how we can improve operations. This effort will help streamline Microsoft global finance operations, reduce costs, standardize processes and reduce the time spent on transactional tasks, giving Microsoft global finance employees more of an opportunity to make a bigger impact on our business every day,” said Microsoft CFO Chris Liddell.

    “High-performing businesses like Microsoft are increasingly recognizing the economy and synergy of outsourcing multiple business functions to a single provider,” said Kevin Campbell, Accenture’s group chief executive – Outsourcing. “By doing so, they can substantially improve business outcomes and achieve significant cost efficiencies.”

    Select services are being built on the Microsoft Dynamics AX platform, a multi-language, multi-currency enterprise resource planning (ERP) solution that automates and streamlines core business functions to show a comprehensive view of a company’s business processes. The application’s adaptability is enabling Accenture to tailor its F&A services to Microsoft’s specific business needs.

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