Articles about Business Process Outsourcing

Profits down, image via Shutterstock

Logicalis: Top line shrinks as UK restructuring continues

Restructuring at Logicalis that weighed heavy on the integrator’s financials in recent times will be over and done with at some point before the, er, end of next February. Datatec, the London-listed parent of Logicalis and networking and comms distie Weston, today issued a heads up for first quarter trading ended June - sales …
Paul Kunert, 20 Jul 2016
Xerox split

Xerox lays out BPO breakup plan

Xerox has detailed the plans that will see the legendary compute company split itself into two different branches. The former photocopy king says that it has named Ashok Vemuri as the CEO of what will become the Xerox Business Process Outsourcing (BPO) company. "Ashok's deep industry experience and proven track record of …
Shaun Nichols, 14 Jun 2016

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
Whitehall road sign. Sgt Tom Robinson RLC/Crown copyright

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
 Can't See You... by https://www.flickr.com/photos/12023825@N04/  cc 2.0 attribution sharealike generic https://creativecommons.org/licenses/by-sa/2.0/

Serco CEO Soames brags about £250m sale of BPO private sector biz

Scandal-hit Serco has finally resold its private-sector business process outsourcing (BPO) division to the previous private equity owner Blackstone for £250m, equating to a loss of £165m. The division consists of middle and back-office skills across customer contact, transaction and financial processing, as well as related …
Paul Kunert, 16 Sep 2015
Walkie Talkie photo: Malcolm Chapman/Shutterstock.com

RSA chief uncans insurance giant's mega IT infrastructure review

Interview Zurich Insurance, Europe’s third-largest insurer with $70bn in revenue and 55,000 staff, hinted last week that it might buy RSA Group. Yet six major acts of M&A have saddled RSA with 15 data centres, managed and run differently and propping up a creaking architecture. Worth £4.5bn and with 19,000 staff and 20 million customers …
Gavin Clarke, 10 Aug 2015
management project

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
£10 notes. Pic: Howard Lake

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

French outsourcer Atos fattens revenues on UK public sector

French outsourcer Atos posted bumper profits int its first quarter, mainly buoyed by the UK public sector deals. Revenue rose 17.6 per cent to €2.4bn (£1.7bn), compared with the same quarter last year. The UK was the biggest market for the outsourcer, growing 15 per cent to €511m (£367m) compared with the same quarter last year …
Kat Hall, 22 Apr 2015

Good news! Your job's not going to the Philippines

Vietnam is now outsourcers' preferred host nation, but Bulgaria is making a tilt for the top spot, according to real estate outfit Cushman & Wakefield's annual “Business Process Outsourcing (BPO) and Shared Services Location Index”. The study (PDF) ranks nations by costs, risks and conditions, with a 50/20/30 weighting for each …
Simon Sharwood, 22 Apr 2015

UK public sector biz keeps French giant Atos buoyant

Sales at French outsourcing giant Atos rose 5.1 per cent to €9.1bn (£5.9bn) for its full-year 2014, buoyed by UK public sector spend. Net income was €283m (£183m), up a respectable nine per cent from the previous year. However, the firm said when currency exchange was taken into account, sales dropped 1.1 per cent on last year …
Kat Hall, 19 Feb 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
Red pen

Big Blue bleeds more red in Q4, promises better days to come

The fourth quarter of IBM's fiscal 2014 was a disappointing cap on a year that saw Big Blue's revenues and income both decline significantly since 2013. Total revenues for the quarter were $24.1bn, which was 12 per cent lower than the same period a year ago and missed analysts' expectations. Revenues for the full year didn't …
Neil McAllister, 20 Jan 2015

Trustmarque ready to rock n roll in tech channel again

Interview With the branding issue out of the way, an enlarged Trustmarque has cut costs, embedded the exec team and is hiring - a far cry from the less than certain outlook for the business last summer. The York-based organisation this week merged with sister company Trinity, forming a £170m turnover technology wing of business process …
Paul Kunert, 16 Jan 2015

BPO playa Liberata stitches together its resellers' hit squads

Liberata has lobbed together its Microsoft licensing arm Trustmarque and cloudy biz Trinity, with the latter’s brand name set to disappear from view. The business process outsourcing firm added to its technology portfolio last summer with the speedy buy of Trustmarque, which changed accounting practises and then found itself …
Paul Kunert, 13 Jan 2015
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It's a bad day to be Serco's CEO... or an investor, come to that

Scandal-hit integrator Serco today issued its fourth profit warning of this fiscal and calendar year, confirmed a £1.5bn write-down and provision to cover to loss-making contracts and effectively exited private sector business process outsourcing. The financial markets reacted negatively, sending the company’s share price …
Paul Kunert, 10 Nov 2014
india

Indian DEITY reveals Internet of Things policy

The marvellously-named Indian Department of Electronics and Information technology - DEITY - has created a policy that calls for the nation to create an Internet of Things (IoT) industry worth US$15 billion by 2020. The policy [PDF] looks to leverage other national efforts, including the effort to create 100 “smart” cities …
Simon Sharwood, 29 Oct 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

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
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

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

Indian DEITY hands down new manufacturing subsidy plan

India's Department of Electronics and Information Technology – which cheerfully uses the domain name deity.gov.in – is making a play to bring more electronics manufacturing work to the sub-continent. India and the Department established a Modified Special Incentive Package Scheme (MSIPS) in 2012, offering to rebate up to 25 per …
Simon Sharwood, 18 Jun 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
india

Tamil Nadu's XP migration plan: Go Linux like a BOSS

The Indian State of Tamil Nadu will solve its Windows XP problem by adopting Linux. Tamil Nadu is home to over 70 million people and its capital city is Chennai, a hub for India's business process outsourcing industry second only to Bangalore. The decision to move to Linux is outlined in this letter (PDF) from the State's …
Simon Sharwood, 04 Apr 2014

UK.gov provider frees Microsoft partner TES from administration

Business process outsourcing firm Liberata IT Solutions, which is responsible for several large government contracts, has devoured Microsoft Gold partner Trinity Expert Systems (TES) in a pre-pack administration. This came after TES succumbed to pressing cash-flow issues. Coventry-based TES called in the receivers Deloitte …
Paul Kunert, 11 Oct 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

India’s outsourcers battle for customers in a cloudy universe

Analysis The rumblings started in the late 1990s. Indian services companies were getting into outsourcing. Almost before the news broke, deals followed. Before long, India was a destination for all manner of serious jobs and a byword for getting things done well and at a price western nations struggled to match. Fast forward a decade or …
Phil Muncaster, 27 Mar 2013

Unisys watches ClearPath mainframe sales climb

The latest line of ClearPath mainframes from Unisys, launched in October and based on Intel's latest Xeon E5 processors, sold a bit better than expected in the final quarter of last year. A mainframe selling better than expected is news by definition, and good news for Unisys in particular since the company's top brass has …
North Korea map on Google Maps

North Korea releases first computer game

Vid Just popped a Wii U under the tree? You poor, poor fool: this Christmas your kids won't clamour for Nintendo's latest, the thumb candy they really want is "Pyongyang Racer", the very first North Korean Computer game! We make that assertion because the in-browser Pyongyang Racer is, at the time of writing, down. Servers at …
Simon Sharwood, 21 Dec 2012

Dell storage boss Topgun Thomas leaves 'to pursue a new opportunity'

Darren Thomas, head of Dell's Storage Group, is leaving the company, following several quarters of declining revenue and an influx of new executive blood into Dell. Dell spokesperson Gladtys Elia said: "Darren Thomas has decided to pursue a new opportunity outside of Dell. … Alan Atkinson, vice president and general manager of …
Chris Mellor, 07 Dec 2012
Dell Latitude 10

Notebook price war slams Dell's revenues, slashes profits

A price war at the low-end of the notebook PC market where Dell has chosen not to participate plus a slump in PC sales where it is fighting to win buyers is wreaking havoc on Dell's financials. In the company's third quarter of fiscal 2013 ended on November 2, consumer mobile PC revenues were down a staggering 30 per cent. The …

Unisys tastes red ink in mouth after pension chop-slap

Mainframe and services provider Unisys has spent years cleaning up its finances, getting its debt reduced and costs in line with sales so it can show Wall Street some profits. And in the third quarter, weaker demand for short-term services engagements and continuing softness in business with the US federal government held down …
sea_hp_sink

HP's Whitman: 'I will turn this company around – by 2016'

During a meeting with financial analysts on Wednesday, HP CEO Meg Whitman said her plan to turn around the ailing company was on track, but the restructuring won't be complete until 2016 and investors should expect HP's earnings to shrink even further before the work is done. In August, HP reported a loss of $8.9bn, with …
Neil McAllister, 04 Oct 2012

'£100m For Sale' sign plonked outside Northgate MS - sources

Northgate Managed Services (NMS) is up for sale and investment banking biz Jefferies International is doing the hawking, claim sources close to the company. "Northgate Managed Services is up for sale, the reality is that the business has been offered to a number of firms," said a person familiar with the matter. It is …
Paul Kunert, 12 Sep 2012

Capita Group snaps up travel agent for biz types Expotel

Business process outsourcing group Capita, daddy to Capita IT Services, has slurped business travel booking agent Expotel Group for £16m. Capita grabbed Expotel, which handles UK hotel, business travel and conference booking, to snap onto its existing business travel operations and provide events management as well. Expotel …

Philippines tech industries survive floods

To the west of the Philippines' capital, Manila, lies Laguna De Bay, a colossal freshwater lake that has just become the site of what can loosely be called maritime services startups. The new businesses sprung up weeks ago after the annual monsoon hit the Philippines harder than usual. The lake filled, then spilled into …
Simon Sharwood, 30 Aug 2012
sea_hp_sink

HP writes down a whopping $8bn from EDS gobble

Hewlett-Packard has taken a fine-toothed comb to its Enterprise Services business and said it needs to write down $8bn in goodwill assets - presumably most of which come from its $13.9bn acquisition of services giant Electronic Data Systems back in May 2008. HP, which is restructuring, also announced that John Visentin, who …
Unisys

Unisys swings to profit on ClearPath mainframe spike

Mainframe maker and services provider Unisys raked in more dough than it might have expected in its second quarter, thanks to a jump in sales of its ClearPath mainframes – and it used the occasion and the cash to prepay some if its debts to get its balance sheet in order. Knocking the balance sheet into shape and stabilizing …
Caution tape

Global IT spending wrapped in caution tape

What's black and yellow and stings? Nope, not a bee: the global IT spending budget, tightly wrapped in crime-scene caution tape – that's the continuing prognosis from the economists and IT market watchers at Gartner. "While the challenges facing global economic growth persist – the eurozone crisis, weaker US recovery, a …
The Register breaking news

Serco ate our IT supplier: Now what? – London boroughs

IT services relationships at the London tri-borough group of Westminster, Hammersmith and Fulham and Kensington and Chelsea are likely to become more complex following the acquisition of Westminster's IT supplier Vertex by Serco. Serco said the acquisition last week, for £55m, brings it additional skills and capabilities to …
Unisys sets LinuxWorld alight

Unisys grows in Q1, swings to profit

Mainframe and services seller Unisys saw some growth in the first quarter, with sales up 1.9 per cent to $928.4m thanks to a bump in services bookings and despite a slight downtick in hardware sales. The company swung from a $39.4m loss in the year-ago quarter to a $13.4m profit this time around. In the quarter, technology …
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Unisys wallet emptied in rebadged server, storage cash crash

Mainframe maker and services provider Unisys managed to almost hold profits steady in the final quarter of 2011 despite taking a dip in revenues. In the quarter ended in December, Unisys saw its technology sales swoon 18.9 per cent to $150m primarily due to declining sales of third-party equipment including rebranded Dell and …
channel

HP's server, PC, and printer businesses stumble

New HP CEO Meg Whitman sure does have her work cut out for her, but she managed to notch up a quarter that was slightly better than Wall Street expected on the revenue and profit fronts. But don't call victory quite yet. HP took some significant hits in its core PC, server, and printer businesses in the past three months. In …
The Register breaking news

Mainframes pump up profits at Unisys

Mainframe maker and services provider Unisys continues to improve its financial situation despite the loss of a major contract with the US Transportation Security Agency last fall. The currency exchange rate of the US dollar against other currencies in countries where Unisys does business didn't hurt matters, either. In the …
For Sale sign detail

Public-sector software and services looking limp

Resellers punting software and IT services (SITS) to the public sector have been warned to prepare for meagre times ahead with only business process outsourcing providing major pockets of growth. This is according to research veterans at TechMarketView (TMV), who claim that compound annual growth rates (CAGR) across the …
Paul Kunert, 09 Sep 2011
channel

Apotheker prescribes transformation elixir for HP

As everyone knows by now, Hewlett-Packard is trying to buy the British software company Autonomy as it shuts down its webOS hardware business and hopes to spin off its Personal Systems Group. But here's a question for you: In HP's third fiscal quarter, which of its units actually showed year-on-year as well as sequential …
The Register breaking news

UK software and services market wedged in U-bend

The UK software and IT services (SITS) industry will limp along for at least the rest of this year and the next before staging a very gradual recovery. This is according to bean-counters at TechMarketView, whose stats show the sector has been in annual decline since the recession that started in 2008 – and shows no signs of …
Paul Kunert, 03 Aug 2011
cloud

Fed budget cuts, lower mainframe sales hit Unisys

Lower overall spending by Uncle Sam and a slowdown in ClearPath mainframe purchases combined to push Unisys to a loss in the second quarter. Sales were off 9.6 per cent in Q2 to $937.2m, and the company posted a net loss of $11.6m compared to a gain of $120.2m in the year-ago period. For the first six months of 2011, revenues …
channel

HP's Q2 beats targets, but Q3 and Q4 look tight

It is a tough day for new CEO Leo Apotheker, who had to move up Hewlett-Packard's reporting of its financial results for the second quarter of fiscal 2011 by 32 hours because someone leaked a memo about belt-tightening and looming layoffs that Apotheker sent to his top brass two weeks ago. HP has revised its revenue guidance …
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Stingy Uncle Sam dumps a Q1 loss on Unisys

Uncle Sam slapped Unisys around during the server and service provider's first fiscal quarter of 2011. The delay by Congress and President Obama in delivering a Federal budget and a lost contract with the Transportation Security Agency combined to subtract around $50m from the company's books, yielding a loss of $39.4m – …