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Articles about Outsourcing

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Gov.UK doubles IT outsourcing to £20bn

Public sector IT outsourcing has doubled over the last six years to be worth £20.7bn in active contracts, The Register can reveal. Since 2008, the average contract size of public sector IT outsourcing deals has remained roughly the same, David Howie, partner at ISG Outsourcing told El Reg. This is despite the government's …
Kat Hall, 03 Nov 2014
IBM PC 5150

IBM bags multi-billion dollar outsourcing deal with ABN AMRO

IBM has bagged a multi-billion dollar 10-year deal with Dutch bank ABN AMRO, the second major European outsourcing win for the company in the last month. The deal is likely to bring cheer to Big Blue, following its recent "disappointing" third-quarter results. The deal includes a private IBM cloud, mobile computing, managed …
Kat Hall, 01 Dec 2014
Un Frog

Merlot and hot dogs: Atos snaps up Xerox's outsourcing biz for $1.05bn

French IT services giant Atos has snapped up Xerox's outsourcing biz for $1.05bn (£670m), as it tries to extend its garlic and lemon-infused tentacles across the American market. The deal for the company's Information Technology Outsourcing unit will add $1.5bn (£960m) of revenue to Atos's €8.6bn (£5.5bn) turnover. Of Xerox's 9, …
Kat Hall, 19 Dec 2014
Old Bailey Lady Justice

MoJ hands £125m to outsourcing giant Atos

The Ministry of Justice (MoJ) has handed a £125m five-year contract for End User Computing (EUC) services to outsourcer Atos. The deal includes PCs, fondleslabs and related software, peripherals, storage, services, training and management across 2,300 MoJ sites. It forms one of the last components of the department's Future IT …
Kat Hall, 05 Nov 2014

Trustmarque sold to biz process outsourcing specialist Liberata

Business Process Outsourcing biz Liberata has swallowed troubled Microsoft enterprise partner Trustmarque for an undisclosed sum. The solvent sale was concluded late last night, avoiding the need for the York-headquartered reseller to call in the administrators, something that seemed liked a possibility 10 days ago when issues …
Paul Kunert, 11 Sep 2014

Outsourcing giant Capita gets share boost from confident outlook

The London stock market was pleased by Capita's 14 per cent rise in annual profits (before tax) today, sending shares up almost six per cent in the first half of the day. Not only had the British outsourcing group pulled in more profits for fiscal 2013, it also said it was feeling pretty chipper about this year, after winning £ …

Ministry of Justice IT bods to strike over outsourcing fears

Nearly half of the unionised techies at the UK's Ministry of Justice have voted to strike over proposals that could shift IT service work into the private sector. At the heart of the matter is the Cabinet Office's excitingly titled Next Generation Shared Services Strategy, which was published in March 2013: the strategy's …
Paul Kunert, 20 Jun 2014

Official: MoJ IT workers on STRIKE over outsourcing job fears

Back office admin staff working at the MoJ's two Shared Service centres are to down tools next week over fears of job cuts. This follows the department's decision to outsource the work to a business owned by French integrator Steria. Staff at the centres in Newport and Bootle run payroll, personnel and finance for the 90k people …
Paul Kunert, 25 Jun 2014

O2 and Capita finally ink £1.2bn outsourcing deal

O2 has signed the expected deal outsourcing its telephone support to Capita, transferring 2,700 staff in a 10-year deal worth £1.2bn. The deal was only announced in May, though that followed months of discussion and a fair bit of rumour. The Communication Workers Union reckons this to be the UK's biggest ever outsourcing deal, …
Bill Ray, 03 Jul 2013
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CEO of bloated outsourcing firm Capita quits after 26 years

Fat cat chief exec Paul Pinder is to quit after 26 years at outsourcing giant Capita to head up small, private equity-backed businesses. The man who, along with other top brass, pocketed a 20 per cent pay hike last year as IT Services staff had their wages frozen and bonuses shelved, is to be replaced by Capita deputy chief exec …
Paul Kunert, 18 Nov 2013
Houses of Parliament at night-time

NAO: £4bn of gov work doled out to just 4 outsourcing giants

In spite of the Cabinet Office's tough talk about binning hefty suppliers whose performance is crappy, four outsourcing giants caught up in contractual issues have amassed £4bn of government business. The fabulous four include Capita, Serco, G4S and Atos, which collectively banked £1.05bn in profits globally in 2012. Between …
Paul Kunert, 12 Nov 2013
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UK.gov to drive stake through heart of big IT outsourcing deals

A wave of huge government IT outsourcing contracts finishing this year won’t be renewed as No.10 snatches back control of Whitehall technology from tech firms. Civil servants will now be expected to take greater responsibility for their departments’ systems and policy, and only engage with suppliers through G-Cloud. Ahead of …
Gavin Clarke, 08 Jul 2013
Euro notes

RBS's Ulster Bank whacked with enormous IT cock-up fine

RBS-owned Ulster Bank has been whacked with a €3.5m (£2.75m) fine for the IT outsourcing cock-up that affected RBS customers in 2012. The incident resulted in around 600,000 customers being deprived of basic banking services over a 28 day-period during June and July 2012, said the Central Bank of Ireland (CBI). The fine is the …
Kat Hall, 12 Nov 2014

IDC: Outsourcing sector needs rescue fund for cloudy customers

The outsourcing industry should develop a voluntary crisis fund to give protection to customers should their services provider hit the wall. This was proposed by IDC in light of 2e2's recent high profile collapse that left some customers scrambling for alternative suppliers, and highlighted the pitfalls of outsourcing. One …
Paul Kunert, 15 Feb 2013
cloud

IBM inks another billion-dollar deal... with The Other Advertising Giant

IBM has announced another big outsourcing contract, nabbing a new deal with WPP, the world’s top advertising firm, for $1.25bn. Big Blue has worked with the ad giant before, but this is a new services contract to run its global tech platform in the cloud over the next seven years. The contract comes hot on the heels of another …

Satyam Computing Services founder jailed over $1.4 BILLION fraud

The founder of former Indian outsourcing biz Satyam Computer Services has been jailed for six months for cooking the company's books to the tune of $1.4bn. The case has been rumbling on since Ramalinga Raju intially admitted the fraud in 2009 – a scandal that has been described as "India's biggest corporate fraud case", …
Kat Hall, 10 Dec 2014
School of Rock

Hello, Mr Chips(et): Capita grabs bigger slice of UK IT education market

Capita gobbled up a larger piece of the UK's £800m education IT spending market in 2013, with sales up 9 per cent to £234m. According to analyst firm TechMarketView, the top 10 suppliers dominated the education IT market with combined revenues of £741m. Capita’s sales were bolstered by the acquisition of Northgate Managed …
Kat Hall, 19 Nov 2014
Old Bailey Lady Justice

More Home Office and MoJ jobs could move abroad, union warns

Jobs at the Ministry of Justice and the Home Office could be next in line to be offshored to India, the PCS union has warned, with both departments joining a £1bn shared services venture with outsourcing giant Steria. The Shared Services Connected (SSCL) joint venture, in which Steria owns a 75 per cent stake and the Cabinet …
Kat Hall, 31 Oct 2014

Fujitsu and Capgemini's giga-quid HMRC lashup given drubbing by govt auditors

In yet another example of a sprawling government contract gone monumentally wrong – the second of the day – HMRC has splashed £7.9bn on an IT outsourcing deal that is looking very tough to justify. Capgemini and Fujitsu won the ten-year Aspire deal – a merged Inland Revenue and Customs & Excise contract – way back in 2004, and …
Paul Kunert, 22 Jul 2014
Dunce

Read IBM's note to staff announcing mandatory training and 10% pay cut

IBM has instituted a new, mandatory training program for some US employees whom management claims don't measure up in the skills department – and participants will be required to give up 10 per cent of their salaries for the privilege. The program was announced in a memo issued to the affected staffers, all of whom work in the …
Neil McAllister, 17 Sep 2014
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India's grip on offshoring eases ever so slightly

India's dominance of the offshoring industry has eased ever so slightly, with Mumbai losing its position as the world's second-best place to outsource to Filipino capital Manila, according to the new Tholons 2014 Top 100 Outsourcing Destinations rankings report. The news isn't all bad for India: it's still home to six of the …
Simon Sharwood, 21 Jan 2014
channel

HP inks $1.4bn outsourcing deal with energy firm E.ON

Hewlett-Packard and European energy mammoth E.ON IT announced they have signed a five-year, $1.4bn infrastructure tech-outsourcing services contract. Under the deal, HP is to provide data centre operations and workplace services. The agreement is expected to "strengthen E.ON’s competitiveness and create a more flexible …
Lewis Page, 15 Dec 2010
Confused computer keyboard

Steria, the MoJ and a £56 MILLION Shared Services write-off

A botched ERP project at the heart of the Ministry of Justice's Shared Services Programme has led to the outsourcing of the back-office functions to Steria – the very company given the original contract to set up the "in-house" systems. Departmental accounts for the MoJ's fiscal '14 ended 31 March reveal the cost of the failure …
Paul Kunert, 27 Jun 2014
Confused computer keyboard

Capita: We've spent £150m on acquisitions... SHOW US the MONEY

Serial acquirer Capita IT Services reported a low-single digit revenue jump for the first half of calendar 2014, but given the numerous acquisitions made this looks to be something of a commercial damp squib. The techie arm bulked up sales by just 2.7 per cent year-on-year to £235m in the period, not including the £60m worth of …
Paul Kunert, 23 Jul 2014
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British Gas 'in talks' to outsource tech services desk, whispers insider

British Gas has dropped a bombshell among its techies after informing them of plans to outsource some or all of its service desk. The erstwhile methane monopoly gathered the IT squad in Staines yesterday to deliver the good news that they could be looking for a job elsewhere. "In a hastily announced IT staff meeting," said one …
Paul Kunert, 02 May 2014

Goodbye, Mr Dong: Samsung Galaxy S5 boss disappears through trapdoor

Samsung has parted ways with Chang Dong-hoon, the head of its mobile design team. The doomed exec offered to step down last week and will be replaced by Lee Min-hyouk, Reuters reports. The move follows criticism that the company's flagship Galaxy S5 is not sufficiently innovative to stir the mobile market. Less-than-stellar S5 …
Simon Sharwood, 08 May 2014
Love

Huawei and Accenture pucker up for enterprise love-in

Huawei looks to be side-stepping glacier-paced reseller recruitment by getting chummy with consultancy Accenture to work on carrier biz support services and private cloudy enterprise stuff. The ink is still drying on the pact but will see the pair “develop joint initiatives” in China, southeast Asia, other emerging markets and …
Paul Kunert, 16 Oct 2014

Serco issues shares to plug finance gap after profit warning

Serco is looking to plug the gap in its finances from weaker-than-expected results via a share placement estimated to haul in £100m worth of filthy lucre. This follows yesterday's latest profit warning and confirmation that long-standing CFO Andrew Jenner is to quit after 17 years of counting beans, once a successor is found …
Paul Kunert, 01 May 2014
balaclava_thief_burglar

Crims at vendors could crock kit says ENISA

Before you sign on the dotted line to acquire some kit or sign up a service provider, ask the vendor you're considering if any of their staff have criminal records. That's just one of many, many, suggestions made by the European Union Agency for Network and Information Security (ENISA), in a new guide to Secure ICT Procurement …
Simon Sharwood, 11 Dec 2014
channel

Outsourcing goes inside

An Indian outsourcing firm is working with prison authorities to set up a 200 man unit to handle back office and data entry functions for businesses worldwide. Charlapally Central Jail near Hyderabad was chosen because 40 per cent of prisoners are well-educated. Lags will get the chance to learn some skills that might actually …
John Oates, 12 May 2010

SEC asks Affiliated Computer Services to step aside, snaps on rubber glove

The Securities and Exchange Commission is probing bean counting methods used by Xerox tentacle Affiliated Computer Services. In a filing, the copier monster confirmed the SEC has been "conducting an investigation of certain accounting practices" at ACS, an outsourcing and data centre management player that Xerox forked out $6. …
Paul Kunert, 08 Oct 2013
workman in high vis jacket bent over, super-imposed on cloud background

Go on, inhale our G-Cloud via 'Digital Marketplace' – UK.gov

Public sector organisations in the UK will be able to buy cloud-based IT products and services from suppliers from a new online platform from the end of the month. The Government Digital Service, which is part of the Cabinet Office, said all "G-Cloud" purchases are likely to be made via the "Digital Marketplace" before the end …
OUT-LAW.COM, 21 Aug 2014
management strategy3

HP turns to Meg Whitman's ex-chief of staff for tough UK job

Meg Whitman’s former veep chief of staff, Jacqui Ferguson, has returned to her UK roots with HP, taking control of the troubled Enterprise Services division with a remit to get things firing again. This will be no walk in the park: ES is already undergoing corrective surgery to trim costs by tightening policies covering overtime …
Paul Kunert, 10 Oct 2014
management strategy2

Phoenix boss grabs industry vet to run Partner Services biz

Phoenix IT Group boss Steve Vaughan has tapped up a former colleague Alistair Blaxill to run the Partner Business, the tech services’ firm’s largest and some would say most troubled division. Blaxill replaces Bill Simpson, who has left the business to “pursue other opportunities”, the London-listed company confirmed, though it …
Paul Kunert, 05 Sep 2014
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Capita closing in on public WAN player Updata

Top brass at Surrey-based broadband network services player Updata Infrastructure UK are understood to be mulling over a leading offer from Capita, sources have told us. As The Channel revealed last November, public sector player Updata confirmed it was locked in "active" discussions with a bunch of interested parties. People …
Paul Kunert, 14 Feb 2014
Parliament in the clouds

Dragon's Outsourcery flaunts UK.gov cloud bazaar credentials

Outsourcery is crowing about the O-Cloud platform receiving pan government accreditation - IL2 in old money - that will allow it to unleash IaaS and hosted Microsoft apps on tech buyers in the Digital Marketplace. This does not give the loss-making purveyor of cloudy stuff the keys to a particularly exclusive club; 17 other …
Paul Kunert, 29 Oct 2014
Prison window

Euro chief of scandal-smacked Serco leaves as cop probe continues

It is a case of out with the old and in with the er...old after Jeremy Stafford, the European boss at outsourcing giant Serco, got on his bike, leaving current UK COO Andrew White as his replacement. These are tough times for Serco, which is the subject of a probe by the Ministry of Justice and subsequently the Met into fraud …
Paul Kunert, 22 Nov 2013

Trustmarque: £2m profits evaporated after accounting change

A change in revenue recognition wiped £2m off Trustmarque’s profits according to the firm’s strategic and financial report, which also provides more details on its near-collapse and subsequent sale to Liberata. As revealed, the York-based enterprise software licensing biz ran into cash flow difficulties last month after changing …
Paul Kunert, 09 Oct 2014

Corporate crashes in UK IT channel drop back to pre-recession levels

Channel fatalities are down for the fifth consecutive quarter as the local ICT sector growth and the wider UK economy becomes the envy of European neighbours. The numbers of tech suppliers that went pop during Q3 was down by almost a quarter to 56 compared to the war stats from credit reference agency Graydon UK for the same …
Paul Kunert, 09 Oct 2014

Hewlett-Packard paid £1.7bn by UK.gov in 2 years – report

Hewlett-Packard is the single largest supplier of services to the British government, according to a new report. Meg Whitman’s PC and server company made in excess of £1.7bn off HMG in 2012 and 2013, the Institute for Government says. The group, however, warns that “some” of its figures are not accurate. According to the …
Gavin Clarke, 27 Jun 2014

You WON'T spend as much on IT in 2014 as we thought - Gartner

Global spending on IT is not growing as much as anticipated, according to Gartner. Price pressure thanks to increased competition, a growing lack of product differentiation, and the availability of viable alternatives are all dampening spend for 2014. Worldwide IT spending this year will therefore grow by just 2.1 per cent from …
Gavin Clarke, 30 Jun 2014
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Outsourcing suddenly less popular

Demand for outsourcing has fallen as global economic troubles hit the outsourcing industry, according to research produced by an outsourcing consultancy. Its advisors expect demand to increase early this year, the company said. Outsourcing consultancy EquaTerra asked its advisors whether demand was increasing for outsourcing …
OUT-LAW.COM, 30 Jan 2009
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Top Brit biz giants love to outsource IT so much, they're gonna do it more

Most UK businesses involved in outsourcing IT are planning to either increase or maintain the current levels to which they outsource, according to a new survey. A survey of more than 230 of highest spending UK businesses on IT by Whitelane Research revealed that more than a third of those businesses are planning to increase the …
OUT-LAW.COM, 07 Aug 2013
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Outsourcer Atos outsources hardware, data centre refresh

Outsourcing monster Atos has thrown out the overhaul of its own tech infrastructure to Kelway in a five-year deal valued at £150m in total. The London-based reseller giant will refresh the desktop and data centre hardware estates at Atos' managed services biz in the UK and Ireland, and provide associated services. The contract …
Paul Kunert, 17 Mar 2014

Blighty will be BIGGER and BETTER than Germany, confirm beancounters

Britain's teamsters may not be setting the sporting stage alight this summer but the local tech economy is heating up as it sprints to Euro glory. Figures from Chancellor George Osborne late last week showed that overall UK economic output is some two per cent larger than pre-financial crisis levels in 2008, after rising 0.8 per …
Paul Kunert, 28 Jul 2014

Fujitsu boss: UK's 2015 elections won't make any difference to us

Interview The UK government is unlikely to make any drastic changes to its IT acquisition strategy no matter who scrambles into Number 10 next May, the European boss of public sector IT giant Fujitsu predicts. Yet the Japanese-owned firm is still striving to ramp up its private sector business as part of its worldwide restructure put in …
Joe Fay, 10 Dec 2014

Serco CEO walks the plank as firm fights off Ministry of Justice probe

The CEO at scandal-hit outsourcing monster Serco has quit as the company lifts the covers off its 'corporate renewal programme' designed to persuade the UK government that it's fit to manage public sector contracts. Back in August, Serco confirmed British cops are probing allegations over fraud related to its Prisoner Escort and …
Paul Kunert, 28 Oct 2013
big droplets falling from rain cloud

IBM: Get yer cloud services! Analytics, mobile, ten a penny

With all bets placed behind software and services, IBM needs to quickly re-tune its route to customers to get the right suppliers on board and the revenue dial moving in the right direction again. The grand lady of tech is challenged on multiple fronts; the System x volume hardware business is transferring to Lenovo along with …
Paul Kunert, 16 Dec 2014
channel

Outsourcing prices on the wane, says Gartner

If IT vendors think that their services businesses are going to save their cookies this year, they may have another thing coming. According to a report just released by the analysts at Gartner, prices on infrastructure outsourcing services are expected to drop this year and next by anywhere from 5 to 20 per cent on new deals. …
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Financial firms face tax bill on outsourcing arrangements

Banks, insurance companies and other financial services providers who outsource administrative functions abroad could be hit by changes to the VAT rules coming into force on 1st January 2010. Under current rules, where services are provided by one business to another, the place of supply for VAT purposes is generally deemed to …
OUT-LAW.COM, 15 Oct 2009

Opinion

Neil McAllister

Claims that cloud will drive Oracle's future growth ring hollow
Pure Storage array

Neil McAllister

How the cloud taught Redmond to play by a new set of rules

Features

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