Articles about Outsourcing

Big Blue's blues diffuse: IBM's sales drain now more like a sad trickle

IBM is touting growth in its cloud and cognitive business units as the enterprise giant wraps up a year of double-digit revenue declines. Big Blue said that for its fourth quarter of 2016, ended December 31, revenues were nearly flat over the same period last year and net income was up slightly. Revenues of $21.8bn were down …
Shaun Nichols, 20 Jan 2017
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Outage-hit Lloyds Bank in talks to outsource data centres to IBM

Exclusive In the week that Lloyds Banking Group suffered multiple outages, it has emerged the UK financial giant is negotiating to outsource management of its bit barns to IBM Global Business Services. Online services were interrupted on Wednesday and Thursday by unspecified technical glitches that prevented people from logging into …
Paul Kunert, 13 Jan 2017

Hey Brit Transport Police, your tech supplier has changed ownership

MTI Europe, a tech supplier to the British Transport Police, has swapped one private equity owner for another with Endless LLP slurping the Surrey-based business for an undisclosed fee. The seller of cloudy infrastructures, storage and security services is one of EMC's largest trade customers in the UK. It also has operations …
Paul Kunert, 10 Jan 2017
Unemployed men queued outside a depression soup kitchen opened in Chicago by Al Capone U.S. Information Agency. (08/01/1953 - 03/27/1978)

Routine jobs vanishing and it's all technology's fault? Hold it there, sport

Routine jobs are disappearing, pushing less educated workers toward either lower-paying non-routine jobs, unemployment, or non-participation in the labor market. The automation of routine work by technology is partially responsible, though its role is relatively small, according to a paper [paywalled] published last month …
Thomas Claburn, 04 Jan 2017

Capita is STILL the BIGGEST tech services supplier to UK.gov

Despite all the mini fires burning at beleaguered Capita, the much maligned outsourcing giant remained the UK's biggest public sector tech services supplier in 2016 as revenues swelled to £1.9bn. An annual report by analyst TechMarketView found the firm that everyone loves to hate increased top line sales 5 per cent year-on- …
Kat Hall, 22 Dec 2016
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Beeb flings millions more £s at Capita for telly tax collection

El Reg can confirm that two things Brits love will be paired together for another couple of years - the Beeb has again extended Capita's telly tax collection contract. The original deal was signed in 2002 for £500m, and renewed in 2012 for eight years at a cost of £560m. Today it emerged the agreement will now stretch until …
Kat Hall, 19 Dec 2016
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AWS' UK cloud hitched to British-based iron

Amazon has opened its long-awaited AWS jumping off point for UK cloud customers by renting racks in two separate third party-run British-based bit barns. Up to now, AWS customers in Britain were served by company-owned server farms in Dublin, Frankfurt and one on the east coast of the US, but the business acknowledged demand …

Disney sued in race row: Axed IT workers claim jobs went to H-1B hires

Thirty former IT staffers at Disney, who were replaced by foreign H-1B recruits, are now suing their ex-employer for alleged racial discrimination. Court papers, filed on Disney's home turf in Orlando, Florida, state that in October 2014, the Mickey Mouse operation told 250 or so technicians that they were being laid off and …
Iain Thomson, 14 Dec 2016
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Ugh! Is that your security budget? *Sucks teeth and shakes head*

Organisations spend an average of 5.6 per cent of their overall IT budget on IT security and risk management, according to analyst Gartner. IT security spending ranges from approximately 1 per cent to 13 per cent of the IT budget. Gartner warns that simply looking at the size of security spending - even in comparison to other …
John Leyden, 09 Dec 2016

US Congress seeks small claims track for copyright claims

The US Congress has published plans backed by both main US parties to reform the Copyright Office - and it wants your views. Amongst the proposals is a small claims track to make fighting The Man easier. Technology has allowed millions more people to share their craft, but most independent creators can ill afford lawyers. The …
Andrew Orlowski, 08 Dec 2016
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Capita: 2,250 jobs cut, more offshoring, more robots... Merry Xmas!

Troubled outsourcing giant Capita is reacting to a post-Brexit slowdown by confirming it will axe roughly 2,250 staff, which includes sending more jobs to India and using robots to automate certain parts of the operation. The company will also try to flog off parts of the sprawling empire, bits that are no longer deemed part …
Paul Kunert, 08 Dec 2016

Could this be you? Really Offensive Security Engineer sought by Facebook

Facebook is hiring an Offensive Security Engineer, and not the sort inclined to disparage the length of your keys or your choice of encryption algorithm. "Facebook's Security team is looking for an offensive security engineer that can deliver technical leadership for our offensive security team and execute tactical, offensive …
Thomas Claburn, 07 Dec 2016

HPE UK preps the redundancy ride as Chrimbo looms

Cost-cutting at Hewlett Packard Enterprise's CSC-bound services business looks set to continue right up to the point it is sold in the spring, leaked documents have indicated. In a note to his staff this week, Maurice Mattholie, HPE UK and Ireland veep for IT Outsourcing – which part of the outgoing Enterprise Services (ES) …
Paul Kunert, 02 Dec 2016
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Sysadmin figures out dating agency worker lied in his profile

On-Call Thank the Galactic Spirit it's Friday: your correspondent is beat! But not so beat I can't dip into the On-Call mailbag to dredge up another story in which your fellow Reg readers explain how they've rescued clients and colleagues from chronologically-inconvenient computational cock-ups. This week, meet “Hal”, who tells us …
Simon Sharwood, 02 Dec 2016
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NSW government innovates, with visa workers taking over IT roles

The New South Wales (NSW) Public Service Association has hit the ceiling about the Australian state's decision to hire IT staff from overseas for the outsourcing of its ServiceFirst shared service operation. Last year, ServiceFirst was contracted out to Unisys and Infosys. The PSA says 32 overseas staff had been deployed in …
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SwiftStack, Cohesity add public cloud on-ramps

+Comment On-premises IT storage suppliers are actively working to water down the importance of on-site hardware by building on-ramps to the public cloud. SwiftStack's Cloud Sync syncs on‑premises object-stored data with the AWS S3-accessed and Google Cloud Storage public clouds. Cohesity's Data Platform has had a Cloud Edition added …
Chris Mellor, 28 Nov 2016
Maurice Moss IT crowd

Barnet Council: Outsourcing deal with Capita has 'performance issues'

Barnet council's controversial £322m 10-year outsourcing deal is plagued by a number "performance issues" particularly within IT - but has also yielded "significant savings" since 2013, according to a report. The borough's chiefs have reviewed the Customer and Support Group (CSG) contract handed to Capita and concluded it has …
Kat Hall, 21 Nov 2016
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Hewlett Packard Enterprise to outsource global IT team to CSC borg

Exclusive The global IT team at Hewlett Packard Enterprise that company execs previously praised for managing the smooth break-up of the organization is finally being rewarded – the entire department is being, er, outsourced. The destination for these techies is the CSC and HPE Enterprise Services borg – the businesses are coming …
Paul Kunert, 16 Nov 2016

The only thing worse than working at CSC? An Xmas redundo programme at CSC

Trigger-happy CSC is aiming the redundancy gun at another batch of hapless employees just in time for Chrimbo – a fate perhaps only slightly worse than actually working at the integrator over the festive season. Hard-pressed staff were this week made aware of a third round of job cuts for 2016 – earlier rounds came in May and …
Paul Kunert, 16 Nov 2016
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IT outsourcing is soooo passé, says outsourcing giant Fujitsu

Traditional IT outsourcing has "had its heyday", chief technology officer Joseph Reger of traditional-IT-outsourcer-turned-wannabe-digital-upstart Fujitsu has said. Speaking to The Register at the Fujitsu Forum trade event in Munich, he said: "I don't think it's had its day completely yet, because that means it would not be a …
Kat Hall, 16 Nov 2016
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Recruitment giant PageGroup hacked, Capgemini dev server blamed for info leak

Exclusive Global recruitment giant PageGroup says a hacker infiltrated its network and accessed job applicants' personal information. The miscreant broke into a development system run by IT outsourcer Capgemini for PageGroup, and was able to look up job hunters' names, email addresses, hashed passwords and more. UK-headquartered …
Iain Thomson, 11 Nov 2016

Six weeks after first ever profit warning Capita does what Capita does

Those caring souls at Capita have inevitably taken the knife to the business, cutting out an entire layer of management and slicing and dicing the divisional structure, six weeks after its first ever profit warning. The blundering integrator and outsourcing giant said it will fold the current units into six; private and public …
Paul Kunert, 10 Nov 2016
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Trump's taxing problem: The end of 'affordable' iPhones

Comment It's tempting and all too easy to sneer at Silicon Valley for being out of touch with not just the world but the US as well. Huge salaries, a high concentration of a single industry and a self-referential culture oblivious to how its ideas could do anything but change mankind don't help either. The sight of tech's leaders …
Gavin Clarke, 09 Nov 2016
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CSC shows first growth in two years... after ploughing half a billion into takeovers

Sales at outsourcing and integrator basket case CSC are growing again – all it took was hundreds of millions of pounds worth of acquisitions. The New York Stock Exchange-listed outfit reported revenue of $1.87bn for the three months ending 30 September – its Q2 of fiscal 2017. This was up 7.16 per cent on a year ago and the …
Paul Kunert, 04 Nov 2016
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Power to the (outsourced) people – globalisation starts small

Radbot Pleading poverty, we don't have huge quantities of cash to throw at the necessary elements of a crowdfunding campaign such as the main video and its fleet of videolets for social meeja channels. Yes, we're cheap. Or "efficient": quick, find me a CFO to make it sound better! So one way to get this material made is to have …

50 tech jobs to go at AirServices Australia

AirServices Australia is set to axe around 50 jobs across its IT department as part of sweeping cuts that could see 900 positions cut. The cuts are part of the Accelerate program, the ABC reports, and have raised concerns of safety from pilots and AirServices air traffic controllers. AirServices was not immediately available …
Darren Pauli, 31 Oct 2016
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Marketing... or how I lost my soul to Lagos

Radbot Last time you said that a fair chunk of you have used crowdfunding to buy product. Allegedly, building a better mousetrap does not have the world beating a path to your door all by itself, maybe not even putting the design on Thingiverse. As our caped hero is finding out, you need to let your potential customers know that …
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Capita's head of tech solutions resigns

The head of Capita’s technology solutions division Simon Furber is the most recent capo to leave the biz. His departure comes as the outsourcing Goliath issued its first ever profit warning in which it blamed a drop-off in the reseller businesses in the IT Enterprise Services subsidiary for a £30m shortfall in sales. A Capita …
Kat Hall, 25 Oct 2016
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May blocked plans to bring in more Indian IT workers – Vince Cable

Former UK Business Secretary Vince Cable has said Theresa May blocked plans to bring in Indian immigrants in the area of IT, claiming the former Home Secretary was "obsessed with immigration". The comments come as Prime Minister May is set to visit India in November to lay the groundwork for a possible trade partnership after …
Kat Hall, 18 Oct 2016

Trustmarque CEO Haddow to staff: This week will be my last

Trustmarque boss Scott Haddow has told staff at the Capita-owned enterprise software and managed services-based reseller that this week will be his last at the company. Outsourcing behemoth Capita splashed £57m on the York-HQ’d firm in June, it was integrated into the IT Enterprise Services division run by Craig Rogerson, so …
Paul Kunert, 12 Oct 2016
IBM Headquarters, Armonk, NY

IBM punts devs to HCL

IBM has appointed HCL, the Indian tech outsourcing giant, to take over development of several middleware software brands, including Tivoli Workload Scheduler and a bunch of Rational products. The deal sees an unspecified number of IBM developers and support staff transferred to HCL (PDF). ® IBM Headquarters, Armonk, NY
Drew Cullen, 03 Oct 2016

'Faceless' Liberty Global has 'sucked the very soul' out of Virgin Media

Exclusive Virgin Media staff have voiced widespread discontent over its gobble by Liberty Global, with one describing their new corporate daddy as "faceless change drivers with no concern for the Virgin values," according to a Q&A with senior management this week seen by The Register. The questions, which were part of the company's …
Kat Hall, 23 Sep 2016
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Are you sure you want to outsource IT? Yes/No. Check this box to accept Ts&Cs

Migrating to an outsourced IT service including cloud is a great opportunity to outsource responsibility for IT and employees while simultaneously increasing efficiency and decreasing cost. At least, that’s the theory. The reality can be a lot more sobering. The SSP outage should serve as a reminder that while cloud can be …
Frank Jennings, 21 Sep 2016

Three outsources staff to Capita

Staff at Three are poised to receive a very early Christmas present - in the form of a Transfer of Undertakings Protection of Employment notice to everyone's favourite outsourcer Capita. Under the £70m deal over the next seven years, 450 employees in customer service, sales and operational management in Three’s Glasgow contact …
Kat Hall, 20 Sep 2016
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BA check-in system checks out: Staff flung back to cruel '90s world of paper

British Airways has blamed “computer" problems for its inability to check in passengers worldwide. The airline apologised after people took to Twitter to complain of delays and misery. One tweeter in San Francisco scanned a letter from BA staff blaming “computer system” problems and saying staff were falling back on manual …
Gavin Clarke, 06 Sep 2016
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Census fail to get Oz Senate probe; NDIS fix promised this year

Australia's Senate has voted to establish a committee to look into the Australian Bureau of Statistics' August Census IT collapse. The news comes as the government promises to fix another slow-motion train wreck by the end of 2016 – the online portal for the country's National Disability Insurance Scheme (NDIS). The Senate …

Apple is making life terrible in its factories – labor rights warriors

Pressure from Apple to lower costs is driving worsening conditions for workers at the company's manufacturing partners. This is according to watchdog group China Labor Watch, which says [PDF] that under CEO Tim Cook, the Cupertino giant has asked the companies that assemble its products to cut their own costs, and those …
Shaun Nichols, 26 Aug 2016

Sharp's new CEO warns of job losses amid 'optimization'

The new CEO of Sharp Electronics has warned that there will be job losses at the consumer electronics company amid a broader restructure. Tai Jeng-wu now heads the company following the takeover by Foxconn for $3.8bn, which saw the giant take a 66 per cent ownership stake. The job losses have long been rumored, and Foxconn …
Kieren McCarthy, 22 Aug 2016
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HPE sharpens knife for next salami-slicing staff redundo round

HPE is aiming its guns at 220 roles in the UK and Ireland in what appears to be becoming its quarterly firing exercise at the biz. In a memo sent to staff seen by The Register, Maurice Mattholie, HPE UK and MEMA veep of Infrastructure Technology Outsourcing (ITO), told employees the move was part of its Workforce Management …
Kat Hall, 22 Aug 2016

Two G4S call centre staff sacked over 999 answering scam

Two G4S staff who were investigated over a scheme to fraudulently meet quotas for responding to emergency calls within a reasonable time have been fired. Earlier this year five former Lincolnshire police employees were suspended from their jobs with G4S after allegedly calling 999 during quiet periods to improve their …
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£11bn later: Smart meters project delayed again for Crapita tests

There has been yet another delay in the ongoing saga of cash-burning that is the UK’s national smart meter initiative. While the communications infrastructure was due to be switched on today, the £11bn project’s turn-on has now been delayed again until September, the BBC has reported. The Data and Communications Company (DCC …
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IT security splurge surge

Worldwide spending on information security products and services will reach $81.6 billion in 2016, an increase of 7.9 per cent over 2015, according to research and advisory firm Gartner. Consulting and IT outsourcing are the largest categories of spending on information security, but this is poised to change. In the run-up to …
John Leyden, 09 Aug 2016
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Liberata in £43m buyout by Japanese firm OUTSOURCING Inc

OUTSOURCING Inc (OSI) – a Japanese player that does what it says on the tin – has acquired UK public sector BPO specialist Liberata for £43m. The buyer is has spread its tentacles via more than 70 subsidiaries into outsourcing across multiple industries including engineering, manufacturing, administrative and recruiting. …
Paul Kunert, 02 Aug 2016
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Capita was always going to axe staff under Project Vincent – sources

Capita was always going to axe staff working in the outsourced O2 call centre under an initiative code-named Project Vincent once the two-year TUPE agreement period was over. Or so claimed employees that headed into Capita’s office in Glasgow, Scotland, today knowing it will be their last – still at least they won’t have to …
Paul Kunert, 29 Jul 2016
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BT sees 35% sales gain as it digests hearty EE meal

Sales jumped by 35 per cent for BT's first quarter to £5.7bn, with profit before tax up 16 per cent to £802m - mainly due to its £12.5bn slurp of EE. The mobile operator contributed £1.2bn for the quarter and £84m in operating profit. Elsewhere other parts of the biz were lacklustre. Its Wholesale biz fell 10 per cent to £ …
Kat Hall, 28 Jul 2016
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Boo hoo. Brexit to hit Capita's bottom line

Outsourcing giant Capita has hinted that the UK's decision to leave the EU will have an impact on its bottom line, while recording a sales increase of 5 per cent to £2.4bn for its first half-year results. Profit before tax rose by 27 per cent to £186.1m, compared with the same period in 2015. Andy Parker, chief exec of Capita …
Kat Hall, 27 Jul 2016
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Getting comfortable with cloud-based security: Whom to trust to do what

There are some bits of computing that you just don’t want to trust other people with. They’re just too sensitive. But at the same time, there are some things that people can do as well or better than you, for a lower cost. Finding a balance between the two can be tricky, but useful. Take cybersecurity as an example. It’s …
Danny Bradbury, 27 Jul 2016
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Third time unlucky? HPE in redundancy talks with UK services staff

Hewlett Packard Enterprise has told UK and Ireland Enterprise Services (ES) staff they face the axe once again – in a third round of redundancies in less than a year. The company, which is offloading the division to CSC in the next financial year, is asking for volunteers this time unlike the previous compulsory job cuts. In …
Paul Kunert, 22 Jul 2016
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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
Ronan Dunne, CEO of O2

Ronan Dunne jumps O2 ship

Head of O2 Ronan Dunne - he of "sending staff to Capita is better than redundancy" fame - has stepped down from the biz after eight years. Dunne will be replaced by chief financial officer Mark Evans, who has been CFO since 2012. Dunne will step down from the board on 31 July, but will continue to "support the business with …
Kat Hall, 15 Jul 2016