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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 £ …

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

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
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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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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

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
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
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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
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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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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

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

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

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

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
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
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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
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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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
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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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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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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

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

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

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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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
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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

IBM to offload System x this week: Our sources spill the beans

Smart bets are being placed on IBM offloading its System x division this week, amid suggestions that staffers are braced for a grandiose announcement on Wednesday. Word of buy talks reached the desk of El Chan late last week and over the weekend the Wall Street Journal speculated that Big Blue execs may have re-opened talks with …
Paul Kunert, 20 Jan 2014
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

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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Who's Edward Snowden? Capita bungs its email into Microsoft's cloud

Capita will shunt thousands of employees' email into Microsoft's Office 365 cloud - except those handling sensitive government and financial work. Some 20,000 staff will migrate from on-premises systems to servers provided by the American giant "by the end of this year", Capita told The Channel. A spokeswoman for outsourcing …
Paul Kunert, 15 Aug 2013
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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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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. …
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About to outsource your IT? Read this first

Whenever a major service provider runs into financial difficulties it is undoubtedly an extremely unsettling period, not least for the workforce, customers and management. Tough decisions need to be made in very tight timeframes which often don't allow much time for strategic planning. Financial distress is one of the ever- …

Crown Representative: SME biz is huge... but I don't have exact figures

The Crown Representative for SMEs is talking big about working with small tech suppliers, but even he can't detail in a transparent way the exact financial benefits of doing so. SME flag-waver Stephen Allott blogged that at the end of October, 20 months since launch, 56 per cent of the £63.46m transacted on CloudStore, a web …
Paul Kunert, 09 Dec 2013
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TfL tosses another $33m at CSC

Transport for London (TfL) has extended its outsourcing agreement with CSC. The extension, worth $33m, adds 27 months to the length of the original contract. Under the agreement, CSC will continue to provide TfL with IT services such as service desk, desktop support and delivery of real-time customer information at a number of …
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Can Oz compete in the outsourcing market?

Could Australia become one of the next outsourcing hotspots? The country certainly has part of what people are looking for: a well-educated English-speaking (well, up to a point) workforce, technologically adept and almost certainly with more knowledge of other English-speaking cultures than any of the others have of that in Oz …
Tim Worstall, 14 Feb 2011
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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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Rigby dynasty to retain control at SCC - 'no IPO for us'

SCC CEO James Rigby plans to pass the privately owned biz to the next generation of the clan rather than co-crafting a retirement plan with his brother based on a flotation or trade sale. The Rigby dynasty's Midlands empire, which includes service-based reseller SCC at its heart, sold distie wing SDG to Tech Data in 2012 for $ …
Paul Kunert, 18 Feb 2014
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Logica's UK order book crashes by 80 per cent

Logica's UK outsourcing ordering book took a hammering in Q1, falling 80 per cent year-on-year – albeit against a strong 2011. At group level the integrator turned over £971m in sales during calendar Q1, down 1 per cent year-on-year. The pipeline slid by nearly a quarter to £1.05bn and the outsourcing backlog was down 4 per cent …
Paul Kunert, 11 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

Government IT contracts to be scrutinised by UK competition watchdog

Britain's competition regulator plans to investigate whether too few suppliers command an unhealthy share of the government IT market. The Office of Fair Trading is seeking views from technology providers and purchasers working in the public sector to find out if it's tough for small businesses to bid for government contracts. …
Kelly Fiveash, 03 Jul 2013
2e2

NHS IT bods 'walk out' in pay row with crashed UK tech giant 2e2

A number of contractors from collapsed UK tech giant 2e2 refused to turn up for work in NHS IT today after their January pay was withheld, it is claimed. Debt-crippled 2e2 Group went into administration this week and put staff wages under "review", but its new handlers assured health service bosses that hospitals are a top …
Paul Kunert, 31 Jan 2013
management consumerisation

Capita's top brass bags 20% rise - as IT bods shiver in wage freeze

Capita's top bosses' annual compensation packages rose by a fifth last year - at the same time the UK outsourcing giant's IT Services (ITS) workers had their wages frozen and bonuses scrapped. Hard-pressed ITS staffers, who are thrashing out a pay deal for 2013, were furious when they learned of the windfall enjoyed by execs at …
Paul Kunert, 10 Apr 2013
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Distie: Build the cloud and resellers will come... so WHERE ARE THEY?

Disties have built cloudy aggregation platforms for channel types under the assumption they would come… but they are still waiting for mass adoption. It would seem that reseller solutions provider reseller demand for brokerage services, such as the one that Arrow ECS launched 18 months ago has been a little underwhelming. Some …
Paul Kunert, 04 Dec 2013

HP and Deutsche Post seal outsourcing deal

Deutsche Post World Net AG has inked a letter of intent to enter into an outsourcing agreement with HP Services. Under the deal, Deutsche Post plans to outsource part of its global IT activities to HP. The Germany-based firm forecast IT cost savings of at least €1bn over the next seven years. If the agreement is finalised – …
Kelly Fiveash, 25 Jan 2008

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Drives nails forged with Red Hat iron into VCE's coffin
Sleep Cycle iOS app screenshot

Trevor Pott

Forget big-spending globo biz: it's about the consumer... and he's desperate for a nap
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Chris Mellor

Enormo security firm needs to get serious about acquisitions

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