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Articles about Outsourcing

Vendors suspend tech orders as Brexit slaps Brit pound

BREXIT If there is one thing the IT industry despises it is uncertainty and there was lashing of the stuff poured across the UK following the Brexit vote. Most major vendors already came out in favour of the Remain camp - including Microsoft, IBM, HPE, SAP, EMC, Cisco and many others - the result was so unexpected for the community …
Paul Kunert, 24 Jun 2016
Pennies in a jar. Photo via Shutterstock

Technology shares slide with Brexit vote, except ARM

BREXIT Shares in British technology companies are mostly sliding after citizens of the United Kingdom voted for the nation to leave the European Union. The FTSE 100 fell more than 8 per cent at opening this morning, slicing over £100bn off of the market capitalisation of the UK's most highly rated bluechips, although this has since …

From Watson Jr to Watson AI: IBM's changed, and Papa Watson wouldn't approve

Completed in 1983, IBM's prestigious South Bank office in London, on the banks of the River Thames, owes a lot to the Brutalist style of architecture, popular in the 1960s and 1970s. It makes heavy use of concrete: a solid building for a solid company. The IBM logo has been outside that building for more than 30 years, an …
Billy MacInnes, 23 Jun 2016
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Trustmarque has been sold yet again – this time to Capita for £57m

Capita has acquired Microsoft licensing house and managed services biz Trustmarque for £57m in cash – the fourth time the company has changed hands in three years Trustmarque, part of the Liberata Group, was rolled onto the market in February by parent Ardbid Ltd, appointing investment bank William Blair to find a buyer, as we …
Paul Kunert, 21 Jun 2016
Girl and computer, photo via Shutterstock

UK's education system blamed for IT jobs going to non-Brits

Immigration is an issue swaying electorates around the world, including Britons, who will next week decide whether to leave the European Union and Americans, who will soon decide whether to vote for Donald Trump as president in November. While this is generally assumed to affect low-pay, low-skilled jobs, it can affect those in …
SA Mathieson, 17 Jun 2016
Xerox split

Xerox lays out BPO breakup plan

Xerox has detailed the plans that will see the legendary compute company split itself into two different branches. The former photocopy king says that it has named Ashok Vemuri as the CEO of what will become the Xerox Business Process Outsourcing (BPO) company. "Ashok's deep industry experience and proven track record of …
Shaun Nichols, 14 Jun 2016

Microsoft's biggest UK reseller flashes fuller figures for '15

Microsoft licensing mountain Trustmarque won’t have done its chances of snaring a new private equity backer any harm by pushing out a decent set of trading figures for calendar year 2015. The York-based reseller, which merged with sister biz TES at the start of last year, reported turnover of £191.9m, up eight per cent on a …
Paul Kunert, 06 Jun 2016
Bare knuckle fight, photo via Shutterstock

Salesforce's data centre team 'fought' AWS cloud outsourcing

Analysis Salesforce’s cloud server staff, those behind its flagship SaaS cloud, fought tooth and nail against their employer’s embrace of Amazon’s cloud. Marc Benioff, Salesforce’s chief executive puffed last week he had a “great meeting of minds” with Amazon’s Jeff Bezos on embracing AWS. Salesforce has chosen AWS to power its core …
Matt Asay, 03 Jun 2016
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

HPE is still swinging the layoffs axe: 500 more services folk get chop

Another quarter and another round of people are being crammed into Hewlett Packard Enterprise Services’ employment cannon – 500 poor souls in the UK and Ireland have been told to stand in line. As revealed by El Reg some months ago, HPE’s Enterprise Services (ES) division – the one being merged with CSC – put nearly 1,100 …
Paul Kunert, 02 Jun 2016
HP CEO Meg Whitman

Whitman deletes another chapter in HP history as CSC and ES borg

Hewlett Packard Enterprise CEO Meg Whitman is dismantling another legacy bequeathed to her by a predecessor as she waves goodbye to Enterprise Services. The first lady of Palo Alto has already closed the chapter opened by one-time CEO Carly Fiorina who had signed off the buy of Compaq, only for HP's PC business to be ejected …
Paul Kunert, 26 May 2016
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Hardware sizzles for HPE – and brings home the bacon

Software and IT services might make the world go round – at least in the heads of Wall Street moneymen – but it was hardware that once again brought home the bacon for Hewlett Packard Enterprise. For the three months ended 30 April (second quarter fiscal year 2016 – summary, tables [PDFs]), HPE's turnover edged up one per cent …
Paul Kunert, 25 May 2016
A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

Ding ding: IBM rings bell for round two of job cuts at GTS

IBM has told foot soldiers in the Global Technology Services operation to brace themselves for a second round of redundancies in the UK. Chris Wilson, director of the Technical Support Services division within GTS, told staff in a memo on Friday that it is “forming” an Employee Consultation Committee. This body will “ …
Paul Kunert, 23 May 2016
A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

Hewlett Packard Enterprise hiring temps to cover for redundancies - sources

Hewlett Packard Enterprise is hiring temps to cover gaps caused by the exit of hundreds of techies it recently axed, some of whom provided services to clients including the Department for Work and Pensions. This is according to multiple insiders, who told us the picture might have been worse had HPE not halted some of the job …
Paul Kunert, 17 May 2016

Roll up, roll up: Dot Net Solutions has a 'war chest'

Microsoft minnow Dot Net Solutions is to stage a roll-up of the fragmented small biz managed services space in Europe. Dot Net, a seller of Azure public clouds on which it provides app dev, messaging & collaboration, back-up and DR, has bagged unspecified funding from US MSP New Signature, which itself got $35m from Columbia …
Paul Kunert, 03 May 2016
Trillian chats to a depressed Marvin the Robot in the 2005 film version of Hitchhiker's Guide to Galaxy. C Walt Disney Pictures

Food for Deep Thought: 42 is IBM's answer to Life, the Universe and Everything...

Analysis Deep Thought calculated the number 42 to be the Answer to the Ultimate Question of Life, the Universe and Everything. Over at IBM it was the frequency the word "transform" was used to explain another dire quarter. The supercomputer in The Hitchhiker's Guide to the Galaxy took 7.5 million years to determine the importance of …
Paul Kunert, 29 Apr 2016

Hewlett Packard Enterprise: Wanna walk the plank voluntarily? You got it

Exclusive Hewlett Packard Enterprise is to initiate a voluntary redundancy (VR) option nearly two months after putting 1,092 UK staff in Enterprise Services (ES) on the chopping block. Techies at HPE were told they were in scope for compulsory job cuts in March including 780 in IT Outsourcing and 173 from the Application Business …
Paul Kunert, 27 Apr 2016
£10 notes. Pic: Howard Lake

Ah, so that's why Adapt wasn't put in the shop window in 2015

The reason why Lyceum-backed Adapt remains Lyceum-backed is contained in their latest set of annual profit and loss accounts - company growth stalled and so a sales process was halted. The London-based outfit was expected to come onto the market last last year and tasked M&A and corporate finance advisor ARMA Partners with …
Paul Kunert, 18 Apr 2016
European flag with sad face

Brexit would pinch UK tech spend but the EU wouldn't care – survey

If the United Kingdom chooses to leave the European Union – a so-called “Brexit” - Europe's information technology industries would not bat an eyelid and IT spending in the sceptred isles would only experience a “mildly negative” dip. That's the consensus opinion to which analyst outfit IDC is putting its name after polling …
Simon Sharwood, 18 Apr 2016

Met cops shop for £150m IT system. Must have: Data centre ops

London's Met Police is seeking a supplier for a 10-year contract for an integrated IT system worth up to £150m in its latest attempt to update its clunky technology. That system is intended to be a commercial off-the-shelf solution that will boost coppers' operational policing via a system that manages all their end-to-end …
Kat Hall, 11 Apr 2016
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Capita not sitting on Hands: IT Enterprise Services boss splits

Capita IT Enterprise Services (ITES) overlord Peter Hands has strapped on his walking boots and strolled right out of the business for pastures news, the company has confirmed. Insiders claimed Hands had been under some pressure from the group’s joint COO Dawn Marriott-Sims, who was critical of the whole of ITES, “especially …
Paul Kunert, 11 Apr 2016

Rackspace invites itself into your data centre

Rackspace will bring its cloud to you: the company has revealed a new offering whereby it will pour OpenStack into a box and run it from its own data centres, a third party's bit barn or your own premises. On-premises clouds are all the rage at present: Microsoft's AzureStack is in preview and is winning support from the likes …
Simon Sharwood, 10 Apr 2016
Doctor Who – The Zygon Invasion. Pic credit: BBC

The BBC flashes £560m ICT deal at hungry tech suppliers

The BBC has once again opened its wallet and is enticing suppliers to bid for a £560m ICT and hosting contract – part of its plans to replace its mega £2bn Atos contract. Over the next eight years it expects to splash between £400m and £560m on the deal, via a "single contracting entity" for end user compute services, hosting …
Kat Hall, 05 Apr 2016
HMRC photo, Gov.uk

HMRC dangles £10bn in outsourcing meat before hungry SME hounds

HMRC is poised to take on new suppliers next month to replace its mega £10bn Aspire IT contract with Capgemini and Fujitsu – the system underpinning £500bn of annual tax revenues. In a statement, the department said it "expects that the contracts will be of interest to smaller and medium-sized companies, as well as the larger …
Kat Hall, 30 Mar 2016
Dispatchers are vital to co-ordinating on the ground activities

Ello ello ello: Bungling Met cops blew £100m on failing tech wheezes

Exclusive The Met Police has admitted to having spent more than £100m on 37 technology projects that have been either stopped or need to be "corrected" as part of its "project cull" strategy. Of 147 live technology projects at the Met, 20 projects worth £24m have been stopped and 17 more, worth £83m, have been identified as needing " …
Kat Hall, 24 Mar 2016
European commission photo via Shutterstock

British IT outsourcers back Remain in the EU referendum campaign

A trade group representing companies that ship UK tech jobs overseas says we should vote to stay in the European Union. “Outsourcing is a significant growth industry for the UK - currently the UK’s second largest employer - and one where we have every chance of taking a global leadership position. Exiting the EU would quickly …
Andrew Orlowski, 14 Mar 2016
Pennies in a jar. Photo via Shutterstock

Staff 'fury' as penny pinching IBM offers legal minimum redundo payoffs

IBMers at risk of losing their jobs have reacted with “fury” to Big Blue’s confirmation it can only afford to pay the bare statutory minimum in their redundancy packages. Staff at IBM's Global Technology Services (GTS), Global Business Services (GBS) and UK Labs entered into a 45-day consultation period recently. Around 400 …
Paul Kunert, 14 Mar 2016

Staffers in charge of HPE's UK IT outsourcing face redundo in April

Around a quarter of Hewlett Packard Enterprise’s current IT Outsourcing staff are expected to be made redundant at end of next month, according to company insiders. As we exclusively revealed on Friday, 780 ITO workers are among 1,000 heads in the UK Enterprise Services division that were told their jobs are at risk. Sources …
Paul Kunert, 10 Mar 2016

Security market to exceed $170 billion by 2020, analysts say

The information security market will hit US$170 billion (£120 billion, AU$227 billion) by 2020, a growth projection of some US$100 billion (£70 billion, A$134 billion) from current figures according to analyst firms. India-based firm MarketsandMarkets says the 2020 total includes security technologies like data leak prevention …
Darren Pauli, 10 Mar 2016
Police officers in bodu armour mill around in field

Accenture leans back, receives £86m Met Police contract

The Metropolitan Police has inked a £86m deal with Accenture to manage its applications, the latest contract award in the force's plan to shave £200m from its IT budget over the next three years by carving up its existing Capgemini contract. The deal will last for five years, with the option of a three year extension. The …
Kat Hall, 08 Mar 2016

HP Enterprise Services readies deeper cuts in UK: Now 1,000 techies face axe

Exclusive HPE is planning to axe roughly 1,000 Enterprise Services techies in the UK, The Register has learned today. The bulk of the cuts will hit the Infrastructure Technology Outsourcing (ITO) wing: as many as 780 people in that division are now at risk of losing their jobs. Staff in the UK were sent an "internal use only" memo on …
Chris Williams, 04 Mar 2016
data centre racks

Hardware – yes, hardware – is driving Hewlett Packard Enterprise's top line

Hewlett Packard Enterprise spends much of its time talking about hybrid IT taking over the world, but it was good old fashioned hardware - boosted by a $3.5bn buy - that made Q1 of fiscal year 2016 better than it might have been. In the period ended 31 January, the first full quarter of since HPE split with the PC and printing …
Paul Kunert, 04 Mar 2016
IBM Headquarters, Armonk, NY

IBM slices heavy axe through staff in the US

IBM axed a wedge of workers today across the US as part of an "aggressive" shakeup of its business. Big Blue was due to lay off some staff at its Global Technology Services (GTS) wing in America back in January. That headcount chop was postponed, with the cuts being pushed back to this week and with more than GTS workers …
Chris Williams, 02 Mar 2016
Dispatchers are vital to co-ordinating on the ground activities

Met Police hands £250m to CSC in IT outsourcing carve-up

The Met Police has handed £250m in contracts to CSC, part of its potentially risky plan to carve up large chunks of its IT in the hope that outsourcers can do a better job. The contracts are for a £155m end user computing deal to provide managed desktop services, storage over the next five years; and a £95m hosting deal to …
Kat Hall, 24 Feb 2016

IBM UK puts 1,352 Global Tech Services heads 'at risk'

IBM is to cut 185 jobs in its Global Technology Services division in the UK – the latest swing of its corporate axe over the last 24 months. The company started the 45-day redundancy notice period with GTS staff on 15 February after forming a Employee Consultation Committee earlier this month, as we revealed. According to the …
Kat Hall, 22 Feb 2016

Trade union threatens work-to-rule action over HPE Lancashire job cuts

The Public and Commercial Services trade union has - as expected - opened a ballot calling for work-to-rule action over HPE's plans to axe 166 jobs in Lancashire. Staff at HPE’s infrastructure outsourcing unit in Lytham who work on public sector contracts, including business for the Department of Work and Pensions, were put at …
Kat Hall, 18 Feb 2016

Volvo offloads IT biz to HCL, then outsources own IT to.... HCL

Swedish battering ram truck maker Volvo has offloaded its external IT business to HCL Technologies for around SEK 900m and signed a deal with the Indian outsourcing monster to overhaul its apps and plumbing. The deal, first outlined in a letter of intent written by the companies in October, will see roughly 2,500 techies …
Paul Kunert, 16 Feb 2016
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

IBM Global Tech Services staff at risk of redundo in Blighty

IBM has entered into a 45-day consultation with UK staff in the Global Technology Services division, El Reg can reveal. In a note sent to full-time staffers on 3 February, Martin Blackburn, GM of the local GTS operation, confirmed Big Blue is forming an Employee Consultation Committee (ECC). This is to “represent the …
Paul Kunert, 05 Feb 2016

PCS: We'll ballot Hewlett Packard Enterprise members over job cuts

The Public and Commercial Services union is gearing up to test the appetite for industrial action among services staff at Hewlett Packard Enterprises over the latest round of planned job cuts. Some 166 staff in HPE’s infrastructure outsourcing unit in Lytham that work on public sector contracts including the Department of Work …
Paul Kunert, 03 Feb 2016
management cio2

UK govt right to outsource everything 15 years ago – civil service boss

The chief executive of the civil service, John Manzoni, has defended the government's decision to outsource everything 15 years ago, telling MPs it was "what everyone did at the time". Speaking at a Public Accounts Committee hearing yesterday, Manzoni said there was nothing wrong with outsourcing, but the government must now …
Kat Hall, 02 Feb 2016
1950s style illustration - Smiling woman talks into rotary phone

BT airs out new business structure as it digests EE

BT is to create a Frankenstein business unit on April Fools' Day worth £5bn out of old parts of BT Global Services focused on the UK, BT Business and EE's newly acquired business unit, it announced during "record" third quarter financial results. The major restructure plans come days after the outfit completed its £12.5bn …
Kat Hall, 01 Feb 2016
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Hewlett Packard Enterprise axing services techies again

Hewlett Packard Enterprise is ditching techies at its Lytham site who provide infrastructure services for public sector clients, including the Department for Work & Pensions. According to the Public & Commercial Services (PCS) union, HPE has put 166 employees in the infrastructure technology outsourcing business at risk of …
Paul Kunert, 28 Jan 2016
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Met Police: Yes, outsourcing IT to Steria has 'risks'

The deputy commissioner of the Met Police, Craig Mackey, has acknowledged that the force's IT strategy, which includes slashing jobs in a mega outsourcing deal with Steria, is not without risk. Last year the Metropolitan Police announced it was cutting hundreds of jobs in a 10-year £216m mega deal with Sopra Steria, a cross- …
Kat Hall, 27 Jan 2016
Confused computer keyboard

Capita hiring temps to cover for call centre redundancies – staff sources

Capita is hiring a bunch of temps to deal with customer requests being directed at its O2 call centre, just months after initiating a redundancy scheme due to perceived lower levels of work. This is according to the outsourcer’s staff based north of the border in Glasgow, who agreed voluntary redundancy terms last summer but …
Paul Kunert, 25 Jan 2016
£10 notes. Pic: Howard Lake

Kent Council cheerily flings about £100m at managed services bods

Kent County Council and two other local authorities are on a mission to splash between £50m and £100m on a mega outsourcing gig with managed services providers. The four-year contract is to be awarded to five suppliers for "the outsourcing of day-to-day management responsibilities and functions" and is part of council plans to …
Kat Hall, 22 Jan 2016
Parliament in the clouds

Government in-sourcing: It was never going to be that easy

Comment Having thrown out the baby with the bathwater in its "outsource everything" drive beginning nearly two decades ago, Whitehall is now keen to bring tech staff back in-house. But how much roadmap does it have for breaking its soon-to-expire mega deals and for "transforming" IT? The chief exec of the civil service, John Manzoni, …
Kat Hall, 22 Jan 2016

Cisco: Businesses are losing the ground war against hackers

Only half (54 per cent) of businesses are confident in their ability to verify and defend against an attack, according to a study by networking giant Cisco. Cisco's latest Annual Security Report concluded that this lack of confidence is mostly down to hackers becoming more nimble, resilient and persistent while businesses are …
John Leyden, 19 Jan 2016
Champagne Not Included

Outsourcing spend declining for 2016, says research

IT outsourcing spend in Europe will continue its downward spiral this year, as cloud infrastructure purveyors gain a stronger foothold in the market and further push down mega deals, according to research. During 2015, European IT outsourcing spend fell by eight per cent to £5.3bn, as the number of large infrastructure awards …
Kat Hall, 19 Jan 2016

HPE veteran looks at watch, realises time and quits

Hewlett Packard Enterprise veteran Martin Hess will pin the green rectangle badge to his lapel for last time at the end of this month - the UK, Middle East, Africa and Israel veep for enterprise services is off. In a memo sent to staff - seen by us - HPE revealed that after 14 years the exec has chosen to call it quits at the …
Paul Kunert, 14 Jan 2016

MoJ extends yet another IT contract in transition to 'tower model'

The Ministry of Justice has extended yet another chunk of its mega National Offender Management IT contracts, in a further sign the department is struggling to break away from its decade-long big IT agreements. The Offender Management National Infrastructure consists of 43 data centres around the UK, and was a 10-year deal …
Kat Hall, 12 Jan 2016

CIO spending will stand proud this year, no really, honest

Tech spending is set to rebound this year and next following across-the-board declines in the last 12 months. And it is all the fault of software – specifically, sustained demand for analytics and cloud stuff. Of course this becoming reality is predicated on the good folk at Forrester Research stroking their collective crystal …
Paul Kunert, 06 Jan 2016

Opinion

Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world