The Channel logo

Articles about Outsourcing

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
channel_teaser_exit

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
g_cloud_uk_gov

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

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

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
india

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
frustration_anger_irritation_annoyance pain

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
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

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
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
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
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
channel_partners_deal_handshake

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

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
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

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
axe_channel_teaser

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
Handshake

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
channel

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

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

Infosys set for $35m fine over US visa naughtiness

Indian IT services giant Infosys is bracing itself for a $35 million (£22m) fine from the US government for visa irregularities, in what will be the largest financial penalty ever handed out for an immigration infraction. The fine, expected to be announced later today, comes after a Department of Homeland Security and State …
Phil Muncaster, 30 Oct 2013
chart

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
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. …

FORCE gov.uk suppliers to stick to 'open data principles' – MPs

UK government suppliers should be required to adhere to the same "open data principles" as government departments, a committee of MPs has proposed. The House of Commons' Public Administration Select Committee backed calls from UK Information Commissioner Christopher Graham, among others, for greater transparency in the …
OUT-LAW.COM, 20 Mar 2014
arrow pointing up

Outsourcing kingpin hands $2bn to Indian education charity

The boss of Indian offshorer Wipro Ltd, Azim Premji, is handing about $2bn to his own charitable foundation. The exact amount depends on share prices; Premji is transferring 213 million equity shares in Wipro Ltd to the Azim Premji Foundation over the next few days. The move will be completed by 7 December. The charity, which …
John Oates, 03 Dec 2010

Sony battery recall as VAIO goes out with a bang, not a whimper

If you're one of the few people who bought a Sony VAIO Fit 11A laptop/tablet convertible unit in the last few months, you need to unplug it immediately and step away from the system, Sony has warned. "It has come to our attention that some of the internal, non-removable battery packs provided to us by a third party supplier and …
Iain Thomson, 11 Apr 2014
channel

Shell waves goodbye to 3,000 IT staffers in $4bn outsourcing gig

Royal Dutch Shell today inked three outsourcing deals – worth $4.2bn over five years – to spin out IT and telecoms operations. In January, a leaked memo to staff revealed the oil company was in outsourcing talks with EDS, AT&T and T-Systems. Today, Shell sealed separate agreements with those companies and said most of its 3,200 …
Kelly Fiveash, 31 Mar 2008
Prison window

UK.gov back-office battle may see British Justice offshored

The Ministry of Justice is reviewing the current way back office functions are deployed, citing further cost savings as the reason for doing so – and not, as our sources state, because of departmental in-fighting. Under the Next Generation Shared Service Strategy (NGSSS) rolled out by the Cabinet Office last March, the plan was …
Paul Kunert, 03 Mar 2014
Quantum CEO Jon Gacek

Quantum expects to see Q3 revenue hike, sheds 60 extra bodies

Quantum expects to report a seasonal third quarter revenue hike in its third 2014 fiscal quarter ended 31 December, with lower costs helped by manufacturing outsourcing and several additional redundancies. El Reg storage desk has received several emails about the latter and they were also confirmed by the company. Revenues for …
Chris Mellor, 16 Jan 2014

HP wants HUNDREDS of hapless staffers OUT by April - trade union

Hundreds of British HP workers are being lined up for the chop this quarter with almost a half expected to come from Enterprise Services. Ian Tonks, national officer for IT and comms with trade union Unite, met with HP last week - as did the UK Works Council - to thrash out the latest tranche of local job cuts. He told us: "784 …
Paul Kunert, 11 Feb 2014
channel

BT plots massive Openreach outsourcing deal

BT is secretly considering outsourcing the operation of its heavily regulated and unionised network access division Openreach, sources have told The Register. Major outsourcers are currently preparing bids for what would be a multi-billion pound contract. It's understood that EDS and Alcatel-Lucent are among the contenders. …
management mobile6

Sources: Azzurri coughs £1m to end O2 call centre spat

Azzurri has settled a seven-figure dispute with O2 after a financial spat erupted over a Glasgow call centre it runs on behalf of the telco, well-placed sources have told The Channel. Under the multi-year outsourcing agreement, Azzurri - an O2 Centre of Excellence partner - was paid a fee to run a support desk for O2's small biz …
Paul Kunert, 05 Nov 2013
5_pounds_sterling_money_cash_moolah

CGI Group beds Logica in £1.7bn cash deal

Anglo-Dutch tech group Logica is being scooped up by Canada's CGI Group in a £1.7bn cash deal. The acquisition, expected to complete in September this year, was agreed by the European wing of IT outsourcing company CGI. Shares in Reading-headquartered Logica rocketed more than 60 per cent following the news, with an opening …
Kelly Fiveash, 31 May 2012
g_cloud_uk_gov

Watchdog puts UK gov IT on RED alert. Yes, that's a bad thing

The UK government's "G-Cloud" project is one of more than 20 IT-related government-run projects that have been given a "red" or "amber/red" status by the Major Projects Authority (MPA), a watchdog that oversees government projects. "It is important to note that a red or amber/red rating does not mean a project will be or should …
OUT-LAW.COM, 29 May 2014

Opinion

Microsoft Surface bomb
Killer whale

Chris Mellor

Firm cites 'low demand' plus 'abusers'

Tim Worstall

Or why the reversal of globalisation ain't gonna 'appen

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that