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Articles about Outsourcing

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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
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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
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Met at 'huge risk' of botching its Sopra Steria outsourcing contract

Plans by the Metropolitan Police to outsource its IT and shunt 445 staff out of the capital via a 10-year £216m mega deal with Sopra Steria present "huge risks", a report by London's spending watchdog has warned. Last month the force announced that from October 2016 its tech services will move over to the Shared Services …
Kat Hall, 30 Sep 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
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Outsourcing to 'play a part' in reducing £1bn police IT bill

More outsourcing will "play a part" in reducing the eye-wateringly expensive £1bn-a-year police IT bill, according to the new chief exec of the just-established Police ICT Company, Martin Wyke. Wyke became head of the Police ICT company in June, after the body was established four years after it was first proposed. Previously …
Kat Hall, 09 Sep 2015
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Tech Mahindra posts profit warning: The end for Indian outsourcing?

Indian outsourcer Tech Mahindra, which bought disgraced rival Satyam in 2012, has issued a profit warning — the first sign of trouble in the buoyant market for some time. In a regulatory filing to the Bombay Stock Exchange, it blamed a "seasonally weak" mobility business for dragging down first-quarter revenue, with shares …
Kat Hall, 29 Jun 2015
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Met signs up Atos as second outsourcing 'service integrator'

The Metropolitan Police has signed up Atos as its service integration manager to oversee an overhaul of the force's creaking ICT infrastructure. The deal is part of the Met's Total Technology Programme, to sign up multi-suppliers to provide infrastructure services. Under the contract – the value of which was not disclosed – …
Kat Hall, 05 Nov 2015
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Value of European outsourcing deals plummets

The number of mega outsourcing deals shrank by 25 per cent in Europe for the first quarter of 2015, with just 128 contracts, valued at €1.9 billion (£1.4 billion), according to outsourcing analysts Information Services Group (ISG). David Howie, a partner at ISG, said the figures reflect a trend toward smaller deals, although " …
Kat Hall, 24 Apr 2015
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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

Bad news, IT bods: UK's tech outsourcing up 15% last year

IT outsourcing contracts agreed in 2014 totalled £3.44bn in value, with nearly a third of that value accounted for by deals struck in the energy and utilities sector. Those deals were worth £1.05bn and accounted for most of the 187 per cent year-on-year rise in the sector on £373 million spent on all outsourcing deals in the …
OUT-LAW.COM, 16 Feb 2015
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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
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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

Outsourcing tanker CSC sales growth torpedoed

Leaky outsourcing tanker CSC saw sales growth drift off on the horizon for yet another quarter – the first of its fiscal 2016 – but the services slinger is back in the black, without the help of tax benefits. The fact CSC slashed costs and expenses by nearly half a billion dollars had nothing to do with bottom line beefiness, …
Paul Kunert, 12 Aug 2015
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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
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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

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

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
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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

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

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

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
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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
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Court battle date set for £300m BT Cornwall termination dispute

A legal showdown between BT and county of Cornwall, over the local council's plans to prematurely exit its £300m outsourcing contract with the telco giant, is to be heard in the High Court in December. The adversaries are to fight out their dispute over the termination of the BT Cornwall contract this year, due to BT …
Kat Hall, 08 Sep 2015
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Atos buys up Xerox ITO, splashing almost $1 billion in process

Atos has completed its acquisition of Xerox's outsourcing biz as the French firm gears up for an American invasion. The company snapped up Xerox ITO (Information Technology Outsourcing) for $966m (£618m), slightly less than the initial $1.05bn (£670m) agreement announced back in December. Thierry Breton, Atos chief exec, said …
Kat Hall, 02 Jul 2015
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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
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Buyout-happy Accenture hits $30bn in sales – as profits slide 10 per cent

Acquisition-ravenous US outsourcer Accenture posted an increase in sales of five per cent to $30bn (£20bn) for financial year 2015, compared with the previous year. Meanwhile, net income dipped 10 per cent to $3.2bn (£2.1bn), following its spending spree over the last year. John O'Brien, an analyst at TechMarketView, …
Kat Hall, 25 Sep 2015

Accenture still a little peckish as it snaps up digi biz Chaotic Moon

Outsourcing giant Accenture has snapped up digital biz Chaotic Moon for an undisclosed pile of cash. The Austin-based, 200-strong team apparently has digital design, prototyping, and development nous. The move is just the latest of a series of acquisitions designed to move the outsourcer out of the traditional managed …
Kat Hall, 23 Jul 2015
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City of Edinburgh Council in £186m outsourcer swap

City of Edinburgh Council has walked away from a 15-year outsourcing relationship with BT to jump into bed with CGI in a £186m long-term IT outsourcing agreement. It seems Edinburgh can't kick its mega deal habit, with the seven-year CGI contract containing a five-year extension, and further extension options after that. The …
Kat Hall, 24 Aug 2015
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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
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
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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
British Transport Police cop. Pic: Gordon Joly

Cops' IT too complex for quick and dirty revamp – Police ICT boss

Coppers' IT is so complex and varied across the 43 different forces, a complete "big bang" overhaul of systems to force consolidation is not practical - the head of the Police ICT company Martin Wyke has said. Speaking to The Register, Wyke said that due to the varying IT arrangements and outsourcing contracts across the …
Kat Hall, 05 Nov 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

Europe drags, as Accenture posts steady growth

Outsourcing giant Accenture posted a yearly sales increase of five per cent to $7.5bn (£5bn) for its second quarter results, highlighting its "digital" investments as a reason for the consistent growth. However, its European revenue dropped by two per cent to $2.66bn (£1.8bn). The company singled out France, Germany, Spain and …
Kat Hall, 27 Mar 2015

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
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
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BIS shuns Steria HR and payroll shared services centre

Exclusive The department for Business, Innovation and Skills has shunned a major outsourcing deal with Steria and the Cabinet Office, embarrassingly citing the costs and risks of the project as "no longer viable". BIS had a contract in place to outsource its finance HR and payroll services to the Steria-run Shared Services Connected Ltd …
Kat Hall, 02 Sep 2015
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Capita hoovers up 1 in every 5 pounds of outsourced UK.gov IT spending

Capita has increased its share of the public sector IT market by one quarter since 2012, despite overall government IT outsourcing spending remaining flat over that period. In 2014, Capita hoovered up £905m in public sector IT spending, up from £671m in 2012. At the same time, overall spend over the last three years across …
Kat Hall, 07 Sep 2015
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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
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Capita cracks open the bubbly after 10 per cent sales jump

This year's huge Capita spending spree boosted the company's sales by 10 per cent to £2.28bn, according to the outsourcing giant's first-half results for 2015. During that period, the outsourcer splashed a total of £279m on 11 businesses, most recently snapping up Scottish business intel outfit Barrachd. Profits before tax …
Kat Hall, 29 Jul 2015
The Shining - blood cascade

'Blood on the carpet' ahead for outsourcers, says analyst research

Spare a thought for those poor multinational outsourcers, who continued to work a lot harder just to maintain the same level of business seen in the last quarter, due to the worldwide trend away from mega deals. According to analyst house ISG, for the third quarter this year, global IT outsourcing spend remained flat at $5.6bn …
Kat Hall, 19 Oct 2015

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

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
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
IBM Headquarters, Armonk, NY

Soz, HP. IBM has out-mega-dealed you – tech analyst

Having hoovered up a number of megadeals last year, IBM has left rival HP eating its dust in the infrastructure space, according to an analyst report. In December IBM announced a $1bn (£644m) deal with German airline Lufthansa, a win with global comms company WPP for $1.25bn (£800m), and said it had scored undisclosed deals …
Kat Hall, 26 Feb 2015

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
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Logicalis takes wrapping off shiny Brit-based SMC practice

Troubled Logicalis is, as expected, replicating a pure tech sales consultancy in Blighty to dish out professional services for customers that are looking to overhaul their IT estate. The service management consultancy practice was established in the Netherlands several years back when the integrator acquired some European …
Paul Kunert, 25 Jun 2015
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DfID becomes second ministry to SPURN Cabinet Office IT scheme

Exclusive The Department for International Development is the second Whitehall ministry to shun the Cabinet Office's major back office outsourcing deals, The Register can reveal. The news raises serious questions around the viability of the privately-run shared services centres, both operated by business process outsourcing biz "arvato …
Kat Hall, 28 Sep 2015

Opinion

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Chris Mellor

A VC with startup agenda slams established suppliers. Surprised? Neither were we
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Kat Hall

Cornwall's win over BT should be a cautionary relationship tale

Features

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The Azure Portal: Microsoft is betting on cloud for its future business
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Cool Texas dude is just your average billionaire