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Articles about Outsourcing

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
channel_teaser_exit

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
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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
shutterstock_150125084_police_woman(2)

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
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Missed our Christmas crackers? Top stories from the break were...

Things might have slowed down for Christmas and New Year in your workplace but the news did not take a break. Whether you were away for the Christmas and New Year period or logged on but not exactly present, here are the biggest stories you may have missed from The Reg. The death of Debian GNU/Linux daddy Ian Murdock aged …
Gavin Clarke, 04 Jan 2016
Boy writes a letter to Santa. Pic via Shutterstock

Dear Santa: Can gov.UK please stop outsourcing?

Comment Here's a cheerful factoid that gets gleefully wheeled out by family lawyers each year: the first Monday after Christmas is the busiest day for divorces. Contributory factors seem to be post-Christmas financial strains, holiday season stresses and misjudged prezzies ("why the hell did/didn't this person buy me a wearable - it's …
Kat Hall, 24 Dec 2015
A cute cat in a jumper waves goodbye.... Pic via Shutterstock

No £160m for you: BT to receive termination notice from Cornwall before Christmas

The High Court has ruled in favour of Cornwall Council's decision to ditch its 10-year £160m outsourcing deal with BT, following moves by the telco provider to stop the authority canning the deal. Back in August, BT filed an injunction preventing the termination of the agreement after Cornwall sought to formally can the …
Kat Hall, 22 Dec 2015
Abbott and Costello dressed as policemen

North Wales Police outsourcing deal results in massive overspend

Attempts by North Wales Police (NWP) to rationalise IT spending have backfired after a project aimed at saving them money by moving towards a single supplier went seriously over-budget. The police force hoped to save £700,000 per year by outsourcing multiple functions to a single (unnamed) IT contractor but wound up spending £ …
John Leyden, 18 Dec 2015

CSC beats off Capita, snaps up Xchanging for £480m

Computer Sciences Corporation is to snap up business processing outfit Xchanging for £480m, having beaten off its rival suitor Capita. The move appears to be part of plans to split CSC into two publicly traded companies: one for commercial and government clients globally and one to serve public sector clients in the US. Mike …
Kat Hall, 09 Dec 2015

Serco slashes profit outlook thanks to call centre biz exit

Profits at outsourcing giant Serco are expected to plunge by almost 50 per cent next year to £50m next year, on revenue down 20 per cent to £2.8bn, according to a statement released today. The warning follows the loss of a number of key public sector deals which had previously contributed toward a sizeable chunk of its revenue …
Kat Hall, 07 Dec 2015
empty_pockets_648

HPE: If we don't give Deutsche Bank right contracted outcome, we'll lose money

Hewlett Packard Enterprise has a risk and reward element hard wired into the 10-year cloudy infrastructure deal with Deutsche Bank and will lose money if things don’t go as planned, an exec has confirmed. This is HPE putting its money where its mouth is in the multi-billion dollar deal it penned with the German financial …
Paul Kunert, 02 Dec 2015
hands waving dollar bills in the air

Capita holds out for Xchanging, extends offer for a second time

Outsourcing giant Capita has extended the window by two weeks for business processing outfit Xchanging's investors to accept its £412m offer for the outfit. The outsourcer had originally slapped 160 pence per share on the table to tempt investors by 30 November. However, two weeks ago rival CSC offered a 170-pence-per-share …
Kat Hall, 01 Dec 2015

Capita increases share of public sector revenue to measly £1.8bn

Capita slurped up £1.8bn in public sector spending last year, a 12 per cent increase on the previous year, according to research from analysts TechMarketView. Overall the top 20 suppliers of software and services to the public sector fared better than previous years, posting overall revenue of £10.7bn, an increase of three per …
Kat Hall, 26 Nov 2015

Opinion

Privacy image

Frank Jennings

Two working parties, ministers galore... but data transfer law remains in limbo
EMC_Unity_bezel

Chris Evans

It does simplify the hardware setup, whatever it is
A microscopic view of the biometric shark skin. Pic: James Weaver

Chris Mellor

Do something and stop faffing about in the bush league

Kat Hall

International system in general needs greater transparency

Features

Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world
hacker
Mostly it's financial crime. Here's what all the cool kids' terms mean in English
Apple logo. Pic: Blake Patterson
Plenty of bumps in the 40-year road for Mac makers