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Articles about Outsourcing

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
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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

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
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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
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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
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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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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
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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

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
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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
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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
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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
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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

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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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

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
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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

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

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
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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

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
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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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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
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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
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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
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
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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
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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

Company selling you out? You've been TUPE-ed

Everyone on your team is called into an obligatory meeting by the boss, and no one knows what it’s about. Just for once, there really is something worth hearing: your manager announces that you and everyone you work with are on your way out. But there’s nothing to worry about, because your jobs are being moved to a new employer …
SA Mathieson, 19 Nov 2013
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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

Office of Fair Trading: UK.gov IT deals lack effective competition

No 10 Downing Street’s G-Cloud strategy has been dinged by Britain’s competition regulator, the Office of Fair Trading, for lacking effective competitive on public-sector IT deals. An OFT report published on Tuesday identified what it called “key barriers” still standing in the way of new entrants challenging the big boys for a …
Gavin Clarke, 26 Mar 2014

IBM offloads customer services biz for half a BEELLION DOLLARS

IBM is planning to outsource its Business Process Outsourcing customer services after last night confirming plans to offload the unit to US tech distie and BPO player Synnex for $505m. Under the terms of the deal, Synnex will cough $430m in cash and $75m in stock to take on 45,000 soon-to-be-ex IBMers operating across a network …
Paul Kunert, 11 Sep 2013
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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. …

Serco throws US in the clink for wrecking cash targets

Outsourcing behemoth Serco missed its targets for the first half of this year as "challenging" US conditions weighed down revenue. The IT company, which runs prison services in Britain and air traffic centres around the world, was still hoping in May to achieve six per cent growth in sales year-on-year for the first half of 2012 …
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Crunch will fuel outsourcing

Local government expert Tony Travers has predicted that the recession will lead to much more outsourcing, in some cases involving all services provided by organisations. "There will be a major move to outsource services to save money," the director of the LSE London research centre told the Society of IT Management's national …
Kablenet, 24 Apr 2009
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Serco close to flogging UK defence nuke tech biz

IT outsourcing monster Serco is locked in talks with engineering consultancy and project management services outfit Amec to sell its Technical Consulting Services biz. The unit provides consulting and project services including IT to the UK civil and defence nuclear markets, turning over in the region of £70m last year. Cost- …
Paul Kunert, 23 May 2012
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What have we learned about managing outsourcing?

A few years ago, I was talking to a quite senior chap in a well known IT outsourcing firm. “Trouble we have,” he said, “is that we’ve got all the good people.” Seeing the flummoxed expression on my face, he went on to explain. “It meant there was nobody left inside the organization to work with, who had any clue what we were …
Jon Collins, 02 Dec 2008
Quantum Scalar i40 tape library

Quantum hands out 190 pink slips... quits making own tape library

Quantum has decided to quit the business of manufacturing its Scalar tape libraries, outsourcing the job, and laying off almost 200 people in its Colorado Springs facility, with more to follow overseas, according to a person who is close to the action. This move follows five loss-making quarters and six years of declining …
Chris Mellor, 04 Jul 2013

Opinion

frustration_anger_irritation_annoyance pain

Felipe Costa

Pressure to perform for stock market bearing down on disties
Columns of coins in the cloud

Michael Cote

Anything that simple to use has got to be complex to set up
Internet of Things

Gavin Clarke

This time, Larry's Oracle is going after the networking giants

Features

No email? No CRM? No Daily Mail iPad edition? You need a plan
Sinofsky's hybrid strategy looks dafter than ever
Failure to crack next-gen semiconductors threatens to set back humanity
SMEs get lip service - what they need is dinner at the Club