Industry news

  • 25 Jan 2018 12:00 AM | Anonymous

    The annual outsourcing industry pub quiz hosted by Aecus, a Hackett Group Company, took place earlier this week – raising well over £5,000 for charity.

    Some 20 teams representing organisations from right across the outsourcing arena – including the GSA - gathered at The Vintry in London to show off their knowledge (or, in some cases, remarkable lack thereof) of, amongst much else, current affairs, musical cover versions, personalities in the news and London-centric nursery rhymes.

    It was a big night for the outsourcing lawyers with eventual winners Bristows followed closely by Morrison & Foerster and Baker McKenzie in second and third respectively. The GSA team came a creditable sixth; meanwhile, bringing up the rear and seizing the coveted wooden spoon for 2018 was the team from ITC Infotech.

    The £5,400 raised on the night via table sales and donations will go to Medecins Sans Frontieres and Vision Rescue, a charity helping street children in India.

  • 23 Jan 2018 12:00 AM | Anonymous

    Enterprise-level AI deployments are already “becoming pervasive” and the technology is disrupting the majority of industries, according to research unveiled by Indian outsourcing and IT giant Infosys at the World Economic Forum in Davos this week. Some 90% of C-level executives “have already reported measurable benefits from deploying AI” while nearly half (45%) say that “the AI deployments in their organisation are greatly outpacing the accuracy and productivity of comparable human activity”, according to the global survey of over a thousand C-suite executives and decision-makers.

    The Infosys research shows that while AI for business is still considered to be at a very stage of maturity by many, in fact its adoption is already widespread and transformative, with 86% of organisations surveyed having either middle- or late-stage AI deployments. Meanwhile, most (77%) of those questioned were at least guardedly optimistic about the impact of the technology on their workforces, being “confident that employees in their organisation can be trained for the new job roles AI technologies will create”.

    Infosys President Mohit Joshi said: “While it’s fair to say that, like most promising new technologies, there has been a tremendous amount of hype around AI, it turns out that the vast majority of enterprises with AI deployments are realising clear and measureable results. AI, as the research shows, is becoming core to business strategy, and is compelling business leaders to alter the way they hire, train and inspire teams, and the way they compete and foster innovation. Industry disruption from AI is no longer imminent, it is here. The organisations that embrace AI with a clearly defined strategy and use AI to amplify their workforce rather than replace it, will take the lead, and those that don’t will fall behind or find themselves irrelevant.”

  • 23 Jan 2018 12:00 AM | Anonymous

    At a time when a depressing array of significant geopolitical and economic challenges are casting shadows over many parts of the world - and when growing isolationism appears to be the order of the day within some of the world's traditional heavy hitters - cooperation between countries and between like-minded business-facing groups has taken on an added importance. It was extremely encouraging, therefore, to find at the 2nd Polish-Ukrainian Outsourcing Forum (held in Rzeszow, Poland, towards the end of last year) signs of very healthy cooperation and alignment between two of the CEE region's most prominent IT and business services players - each of which is currently in its own way struggling with some of those aforementioned challenges.

    The one-day event (with a preliminary tour and dinner the previous day) attracted some 250 attendees - around half of whom represented Ukraine, ensuring that the show very much lived up to its title - and featured a well-considered selection of panel discussions and case studies examining the current status and future prospects of outsourcing in the two countries in question. While neither of the most prominent elephants in the room - the ongoing conflict in the eastern part of Ukraine, and Poland's current political uncertainty and apparent shift towards nationalism - were ignored by the panels, the tone was nevertheless one of pronounced optimism, with the successes to date of the outsourcing industry in both countries being both lauded and analysed, and prospects for future growth (and potential spanners in the works) placed under a variety of microscopes.

    The conference had received solid backing from both public and private players in Rzeszow (the largest city in south-east Poland, with just under 200,000 inhabitants, less than 100km from the Ukrainian border) who see the benefits that outsourcing and business services companies have already brought to the area and keenly desire to grow that tasty pie and the size of Rzeszow's particular slice. While not at this stage in the same league scale-wise as the likes of Kraków, it's clear that the Rzeszow authorities are targeting this space with gusto - the retention of this event being indicative of their desire not merely to market the city but to learn from the experiences of their neighbours - and it was illuminating to hear from the Deputy Mayor and others about the steps being taken to ensure the continued development of a competitive, attractive offering.

    Key to any such offering, of course, is talent, a topic which popped up time and again in both on-stage discussions and individual networking. Both Ukraine and Poland rose to outsourcing prominence thanks to the quality (and, of course, comparative affordability) of talent they have been able to supply, and the questions of how to grow, develop and, especially, retain that talent were eagerly addressed by attendees well aware that consistent success in this field is indispensable if a broader success (economic and social) is to be achieved. It was also reassuring to note that pretty much everyone questioned with regards to this topic appeared well aware of the importance of training new and existing talent not simply to meet the demands of today, but to be able to react to looming shifts in the nature of work in this space coming in the wake of, for example, process automation and AI-related technology. The generally optimistic air of the event was maintained as various speakers highlighted plans and structures within their respective organisations designed constantly to move employees up the value chain as technology claims the more repetitive, less stimulating tasks on the agenda.

    This type of tech, of course, provides significant opportunities for both Poland and Ukraine thanks to the existence in each country of robust technology industries: a good proportion of Ukrainian attendees in particular came from the more software-oriented end of the space, where great joy has been found in recent years (indeed, one question providing food for thought was whether the country might be focussing too tightly upon software development and ITO more generally at the expense of possible gains in other subsets of the BPO multiverse). The region has traditionally been very strong in what we would now call STEM fields, and a key challenge now is to ensure that built onto those strengths are suitably enhanced capabilities in areas like marketing, negotiation and HR, in order that homegrown companies can thrive and compete against (frequently much bigger) foreign players. The nexus of trends such as AI, IoT and others is being felt and observed no less excitedly in Poland and Ukraine than elsewhere in the world, and it felt at this event that there is a genuine determination in some quarters that at the break of that wave these countries must not become mere talent pools for foreign companies, but must instead - or, rather, also - build their own powerhouses. The opinion was widespread in Rzeszow that success here will require - among much else, of course - a good deal more thought leadership and networking events such as this conference and others, along with elements such as industry standards and codes of conduct, more coherent and smarter communication with the rest of the global outsourcing community, and deeper links with and access to potential customers in traditional and new markets (all areas in which, not coincidentally, the GSA is doing a good deal of work in both countries).

    In a world (business and more broadly) of finite resources and opportunities, two neighbouring countries striving for similar benefits from the same space are inevitably going to be, to a certain extent, competitors as well as potential collaborators, and the precise nature of any 'coopetition' (formal or otherwise) between Poland and Ukraine appears (at least as depicted at this event) still to be somewhat nebulous. One especially noteworthy issue is the currently more or less one-way traffic of talent from Ukraine into Poland: cities such as Rzeszow are clearly keen to attract good professionals from Ukraine, which is experiencing a steady outflow of talent (which one speaker in particular was very determined not to describe as a "brain drain") thanks in part to the country's eastern crisis, and despite the Ukrainian government's attractive tax incentives aimed at keeping said talent within its borders. A number of Ukrainian companies have reacted by setting up regional offices within Poland itself, to keep emigres at least partly within Ukraine's economic embrace if not its borders; how long the "if you can't beat 'em, join 'em" approach will last, and how successful it will prove, has yet to be determined, but in the absence of a prompt resolution to the country's current travails, making the best of a bad job with regards to this exodus seems the only sensible option for now.

    Walking around the historic centre of Rzeszow, and speaking to some of the attendees from the locality, the cultural connections between (especially western) Ukraine and this part of Poland were impossible to ignore: the region of Galicia has much shared heritage and at various times during the last millennium has been a single polity (usually under the control of other, larger powers) and though national allegiances hold sway it's clear that there's a degree of trans-national kinship felt here which is unusual, to say the least, across much of modern Europe. While each country is resolute upon its own path, the convergence of interests on display at the 2nd Polish-Ukrainian Outsourcing Forum - and, crucially, the determination of the attendees to capitalise on such synergies - suggests that sustained collaboration and strategic alignment could well pay off in spades for those driving the industry forward and for those new cohorts seeking to make their collective way up the career path. It will be very interesting to see if that determination, and the refreshing positivity which characterised the conference, will be maintained going forward.

  • 22 Jan 2018 12:00 AM | Anonymous

    When contracting on construction projects, it’s imperative to have appropriate written agreements and programmes in place. Often, contracts give both parties the right to terminate if one or either becomes insolvent. That means you can walk away from a project without incurring any further costs but what should you do about the money you are owed for the work you have already completed?

    That’s the shadow hanging over around 30,000 businesses collectively owed £1 billion following the collapse of Carillion which has left chains of first tier suppliers and subcontractors in limbo.

    The scale of this insolvency is extraordinary but the same common sense responses to a customer in insolvency still apply.

    Firstly, it’s worth getting a good sense of how exposed you are. Clearly, if your business depends for its survival on the next payment from Carillion, as is sadly the case for some, it will be your number one priority. However, if your exposure is far from critical, it would be a mistake to spend every working moment on the issue when you have other customers to look after and opportunities to pursue.

    Having said that, you still need to take some action urgently.

    You may have seen news about banks creating a fund for firms affected by the collapse and of a new government task force to address the issue but don’t take those as an excuse to do nothing and hope for the best. There are plenty of things you can do now to protect your business.

    Step one is to look at where you have outstanding contracts and whether these are affected directly or indirectly with Carillion. This is a list of the companies in liquidation: Carillion plc, Carillion Construction Ltd, Carillion Services Ltd, Planned Maintenance Engineering Ltd, Carillion integrated Services Ltd and Carillion Services 2006 Ltd.

    The liquidators, PwC, have set up a website for everyone affected. Go to https://www.pwc.co.uk/carillion and select ‘Suppliers’.

    Check your contracts in both directions, firstly to see if you’re entitled to suspend or terminate your contract with your customer and secondly to see what your options are with anyone that you are sub contracting to. If you decide to take action under your contracts, make sure you do this within the terms of the contract.

    Your contract with your customer may set out specifically what should happen if one of the parties in the supply chain becomes insolvent. Make sure you understand it and keep track of progress. If the contract doesn’t do this, take steps to retrieve the money owed to you, which may be through legal means or withholding future work on the project until you are paid.

    Take steps to protect any physical property or supplies that you have not been paid for, making sure to do so within the law, of course.

    am a strong advocate of effective programmes and record keeping to protect yourself in the event of disputes or situations that lead to potential non-payment such as your customer going into liquidation. If you don’t already have full written records of the work you have carried out on any projects affected by the liquidation of Carillion, prepare them now.

    There is much in the media about lessons to be learnt from Carillion. For contractors, the affair should encourage a review, firstly of how they enter into contracts and secondly their effectiveness at managing programmes and record keeping because when things go wrong, these can be the difference between being paid or losing everything.

    By Michael Gallucci, managing director, MPG.

  • 22 Jan 2018 12:00 AM | Anonymous

    While attending the Eurostar Testing Conference last year in Copenhagen and on a recent visit to Silicon Valley in the US, I came across a question several times about the future of software testers and software testing companies. There is a growing sentiment that in the world of DevOps and Continuous Delivery, software testing as a discipline will merge with Development and there will be no need for specialist software tester roles. Will the software testers become extinct then?

    The answer is NO! In fact they are the future of tomorrow...

    Software testing has become and will become even more important with the evolution of the software industry. Software testing has become an integrated part of the software development lifecycle and not an independent or separate activity as in the past.

    In the world of Continuous Delivery of software, Testing is proving to be the weakest link. This is an exciting time for the testing industry to evolve and adapt to the changes happening in the wider world. The role of software testers is changing and will continue to change in the future.

    Will software programmers perform testing going forward?

    Programmers take pride in the software they write and do not have a testing mindset to break it. Hence, professional testers will always be required to ensure high-quality software. A new breed of testers called SDETs - Software Development Engineers in Test - is coming to life. The SDET is part of the development team and participates in the complete development process from a testing standpoint.

    Role of SDETs in the production of software

    An SDET must be able to create high-quality, maintainable, and performant code. The code generally created by the SDET however is for automated test cases and the frameworks to execute and report them. An SDET's knowledge of software design is often focused on testability, robustness, and performance, and they usually play a contributory or reviewer role in the creation of designs for production software. An SDET’s skill set will often include more experience in software testing processes and how to test software.

    While the designers and developers of software architect the applications and write code to bring the software to life, the SDETs write code to automate testing of the software in parallel to ensure that the software is doing what it is supposed to do. Primarily there are three parts in a modern software application: the front end - often called GUI; the middleware which mainly consists of APIs and web services; and the back end. Some of the components in the software do not have a face and need deep technical knowledge and expertise to test them. In addition, SDETs enable continuous testing by bringing process lifecycle automation and creating CI/CD pipelines within a software project.

    Where lies the opportunity for software testers and software testing companies?

    I am an optimist by nature and see opportunity in any adversity. While the pessimists see the evolution of the software industry from traditional waterfall and agile to continuous delivery as demise of the Testing industry and testers, I see it as the greatest opportunity of all time. Every organisation in today’s competitive business world is looking to hit the market faster than their competitors to get the first mover advantage and continually improve their products/ service offerings within a shorter span. In order to make that possible, every organisation is aiming for continuous delivery of software which makes continuous testing and test automation an integral and important part of the software development lifecycle.

    At the Eurostar Testing Conference, there were multiple Test Automation Product companies demonstrating their products and the customers were pulled in all directions. These are world-class products but every customer has specific needs and one size cannot fit all, making the life of IT leaders even more difficult in deciding what is best for their organisation. Hence the need of Specialist Continuous Testing companies and professionals who have worked with diverse technology/ tool landscapes and domains will continue to increase. Only the specialists having experience of working on variety of automation tools in the market will be able to guide enterprises on their Automation Strategy, Tool selection and implementation of Continuous Testing.

    I see the industry standing at an inflection point, transitioning from the ‘old’ way of doing testing to the ‘new’ age of modern testing. The need for today’s testing companies and testers is to be ready for the future by re-skilling themselves and companies who make this move quicker than others will survive and thrive.

    About the Author

    Manish Gupta is a Serial Entrepreneur with year after year success achieving revenue, profit and business growth in various ventures globally over the last 23 years in International, Multi-cultural environments. He co-founded Damco Group in 1996 with the vision of enabling enterprises to leverage technology for business growth and success and started operations across US, UK, Europe and APAC with revenues in excess of $55M. Manish founded TestingXperts in 2014 with a vision to create the world's largest and most trusted QA and Software Testing organisation with a focus on quality, innovation and satisfied employees & clients.

  • 22 Jan 2018 12:00 AM | Anonymous

    The sourcing market in EMEA ended 2017 on a high note, “with double-digit growth in both traditional and as-a-service contracting values” according to the 4Q17 EMEA ISG Index published by Information Services Group (ISG). After a mid-year slump the market was up 27% sequentially in the final quarter, according to the Index (which tracks commercial outsourcing contracts with annual contract value (ACV) of over €4m), with the as-a-service sector growing by a record €1.1bn.

    The results show a continuation of the trends which have been dominating the sourcing landscape in recent times, with “traditional” sourcing in significant decline (ACV dropped for the fourth year in a row “despite a slight increase in the number of contracts) but with that slack being more than picked up by as-a-service spend (especially the infrastructure-as-a-service market which grew by 58% year-on-year to hit €3bn); this picture was mirrored elsewhere in the world, according to ISG, with as-a-service overtaking traditional models in both the Americas and APAC at the end of last year.

    Steven Hall, partner and president, ISG, said: “Despite a dip in the third quarter of 2017, the market recovered in the final quarter and demonstrated steady overall performance for the year. It is especially heartening to see the adoption of cloud-based services accelerate across the region, following a slow start in previous years. European businesses are seeing the potential of new technologies to help them on their digital transformation journeys, while reducing costs and improving agility. Macroeconomic uncertainty across Europe makes the business of predictions tricky. Nonetheless, the trend towards as-a-service is one we can expect to see accelerating over the next 12 months, with consistent growth of 20 percent or higher for the as-a-service market.”

  • 15 Jan 2018 12:00 AM | Anonymous

    LONDON, 15/1/18: Firstly, of course, it’s only right to express our dismay at these events and to extend our deepest sympathies to the thousands of Carillion employees currently facing an extremely uncertain and worrying future. We can only hope that as many as possible of these jobs will be safeguarded by any potential rescue action, or transferred to other service providers under TUPE legislation in the usual manner.

    The collapse of Carillion is, simply, tragic news: the list of major UK services companies is not a huge one and the apparent collapse of one of its number is deeply troubling for the market generally – and perhaps symptomatic of the intense pressures facing the industry today. Be that as it may, however, we have to ask: how did things get this bad for Carillion specifically? How did such a huge and hitherto successful company fail so spectacularly and at such apparent cost?

    While many details have yet to emerge it appears that Carillion’s fall has resulted largely from substantial cost overruns on merely three very large contracts. There are of course countless potential causes of failure in outsourcing – but correct relationship management, constant review and a decent level of transparency go a long way towards safeguarding against such breakdowns, and any autopsy into recent events should certainly examine whether the above factors were present to the requisite standard in the three contracts in question (and, indeed, in any others which contributed to Carillion’s woes.

    Properly managed, properly governed, properly scrutinised outsourcing arrangements simply should not go bad in this way – and if they do, remedial action should be taken as soon as possible, involving all stakeholders from the start. It’s easy to blame Carillion but those on all sides of these deals had a responsibility for their successful implementation and completion, and it remains to be seen to what extent the right governance was or was not lacking on the part of Carillion’s customers and partners.

    We do not yet know how this situation will unfold in terms of the measures to be taken to ensure the integrity of the many services provided by Carillion to the British public; calls have already come from many corners for the company, or individual contracts, to be nationalised, but considering the government’s track record can we possibly be confident that this would be the best – or least bad – outcome?

    On the other hand, allowing private sector organisations to cherry-pick still-profitable contracts whilst leaving the state to pick up the tab for bedevilled ones would surely be insurmountably unpalatable to the public and further add to the cloud hanging over the sector as a result of Carillion’s untimely demise.

    Finding a solution to this crisis which appeals to all parties involved may well be impossible – but whatever the final decision, the priority now must be safeguarding the provision of those public services for which Carillion has up to now been responsible, and protecting as many as possible of those jobs whose future is now in doubt. Anything less would be a failure more significant even than the collapse of one of the country’s most important and most prominent service providers.

    Kerry Hallard

    CEO, Global Sourcing Association (GSA) UK

  • 11 Jan 2018 12:00 AM | Anonymous

    The Canadian dollar and Mexican peso dropped yesterday, along with several key stocks across North America, after Canadian government sources revealed that Ottowa is “increasingly convinced” that President Donald Trump intends to pull the USA out of the North American Free Trade Agreement (NAFTA).

    One source – requesting anonymity “because of the sensitivity of the situation” – told Reuters that “the government is increasingly sure about this… It is now planning for Trump to announce the withdrawal.”

    Meanwhile, a Mexican government source told the aforementioned news agency that “we have always said that this is a possibility”, referring to a possible US exit from NAFTA.

    President Trump has consistently railed against NAFTA since before entering the political arena, and with treaty renewal negotiations ongoing has called for several significant and controversial changes, threatening repeatedly to yank the USA out of the Agreement should they not be forthcoming.

    Separately, in another sign of worsening relations between Canada and the USA – which enjoy the second-largest trading relationship in the world – the government in Ottowa on Monday filed a 32-page complaint against its southern neighbour with the World Trade Organisation, accusing the USA of repeatedly breaking trade rules over the last two decades.

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  • 11 Jan 2018 12:00 AM | Anonymous

    The United States Citizenship & Immigration Service (USCIS) announced on Tuesday that the Trump administration does not intend any changes to the controversial H-1B visa regime which would force visa holders to leave the USA, in a move which has been greeted with relief by India’s tech community.

    Fears had arisen following reports last week that President Trump was considering changes to the system which might result in the deportation of up to 750,000 Indian employees currently residing in the USA. However, the USCIS “is not considering a regulatory change that would force H-1B visa holders to leave the United States”, the organisation announced – with USCIS media relations head Jonathan Withington adding that “even if it were, such a change would not likely result in these H-1B visa holders having to leave the United States because employers could request extensions in one-year increments” under a different section of the visa code.

    India’s National Association of Software & Services Companies (NASSCOM) has repeatedly cautioned against any disruption to the H-1B program, saying that it would have detrimental effects on both the USA and India; nevertheless, it remains to be seen how President Trump’s ‘America First’ approach and current antipathy towards further immigration might eventually impact on overseas tech workers and their employers.

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  • 11 Jan 2018 12:00 AM | Anonymous

    There is optimism surrounding the Indian economy after the release of the nation’s GDP figures and a recent decision by Moody’s, the credit ratings agency, to upgrade the country’s rating for the first time in more than a decade. The rosy outlook stems from an expectation that Narendra Modi’s institutional and fiscal reforms will improve the long term economic outlook of the nation, which has been plagued with stagnating growth in recent years.

    The BPO industry should take courage from this outlook, which represents a maturing of the economy and the outsourcing industry in particular. Outsourcing firms are moving from a model that simply capitalises on labour arbitrage, where people are employed to carry out routine and repetitive tasks. The BPO industry is reaching its maturity to become a technology partner equipped with the latest innovations in machine learning, and staffed with the country’ brightest minds.

    Firstly, as a growing hub for technology excellence, observers of the Indian tech scene should take note of what is happening in regards to large firms setting up their own parallel operations in the country, beyond the simple support function. Goldman Sachs recently set up their Bangalore operation which not only supplied operational support services to European and US offices, but also provided ‘parallel services’ in the form of analytics and data modelling.

    The workforce that is manning this ‘new back office’ is increasingly representative of India’s emergence as a leader in STEM education. It is not uncommon to find a clutch of highly skilled and highly qualified scientists (up to PhD level in many cases) providing data services to clients in alternate geographies.

    These individuals are increasingly drawn to India as a result of the better opportunities for high-aptitude roles. Some have even pointed to the growing protectionism and isolationist visa-policies of some Western nations as contributing to the trend of young and dynamic Indian tech workers returning to their land of birth.

    The need for digital transformation services across many western businesses is accelerating the growth of India’s high-skill, high-aptitude workforce and the trend is set to increase as the demand from digital services on an agile software-as-a-service (SaaS) basis continues.

    Many larger firms are still lagging behind when it comes to embracing digital opportunities in the form of machine learning, AI tools and data analytics, especially in the established BFSI sector. When it comes to a large organisation that have been trading for perhaps over 100 years, the likelihood that it can immediately integrate these technologies greatly decreases as dated legacy systems hamper technology integration.

    This is felt particularly within the BPO sector. Outsourcing began as a way to cut IT costs, but has now become a key part of helping organisations to remain competitive in the digital age. Today the industry is increasingly at the forefront of innovative technologies such as artificial intelligence (AI) and automation.

    For instance, a common issue for large banks is that, despite flashy front-end digital services, mortgages and other loans take a lot of time to manually approve, opening them up to competition from more agile entrants. Indian expertise has driven automation solutions to satisfy these problems, reducing approval time from 11 days to 48 hours for one leading bank.

    The Indian economy has adapted and ‘leap-frogged’ more established economies in many ways, which do not have the same ability to provide cost-efficient and agile technology services across sectors. The latest reassessments from international ratings agencies such as Moody’s reflect a broader optimism that India’s fortunes as a provider of third-party technology services has never been stronger.

    Investments from large multinationals in enhanced back-office services from players such as Goldman Sachs go some way to supporting Moody’ assessment. With continued investment in the areas that the nation excels in, such as the STEM education areas, India will be able to compete on a global level with up-start hubs such as Manila.

    Last quarter’s GDP figures have reinforced the wave of optimism that is felt by many executives in the BPO space. From the client’s perspective, this can only be a positive result – continued excellence depends on sustained investment in the latest technologies and education for those innovators who operate them.

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