Articles about Outsourcing

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Met at 'huge risk' of botching its 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 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 Connected …
Kat Hall, 30 Sep 2015
All UK police forces use Tetra

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
Poor people in India queue for a political party-sponsored medical check. Pic: Welfare Party of India

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
£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

Met Police to slash hundreds of IT jobs, hands £216m outsourcing gig to Steria

Hundreds of back office IT jobs at the Metropolitan Police Service are to be made redundant under a ten-year £216m outsourcing deal with Steria, which will see service delivery moved out of the capital. The contract was approved this week by the Mayor’s Office for Policing and Crime, with the force estimating savings of £100m …
Kat Hall, 28 Aug 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
Downing Street road sign

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
IBM PC 5150

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
Lufthansa plane

Europe rubber-stamps IBM Lufthansa outsourcing gig

The European Commission has given IBM the green light to splash $1.25bn on Lufthansa's tech infrastructure wing. As part of the deal, which includes an outsourcing agreement, the airline will split its subsidiary, Lufthansa Systems, into three companies, offloading the infrastructure division to Big Blue. "The Commission …
Kat Hall, 18 Dec 2014
Un Frog

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
Old Bailey Lady Justice

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

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

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 £ …


Worstall on Wednesday HL Mencken once told us that in a democracy the electorate should get what they voted for – and good and hard too. So, on that basis, I present to you a piece on outsourcing, as requested by one Gordon 10. The commenter in question wrote: What would be really nice is [an article] on the race to the bottom on labour outsourcing …
Tim Worstall, 29 Oct 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

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

O2 averts strike action over mass Capita outsourcing deal

The Communication Workers' Union has called off its strike ballot, scheduled to close today, following a last-minute deal with O2 and outsourcing giant Capita, the details of which haven't been released. The union called the ballot last week, following O2's announcement that call centre staff would be transferred to outsourcing …
Bill Ray, 18 Jun 2013
Herdwick sheep walk towards the camera

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

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

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

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
management cio2

O2 brushed off outsourcing 'rumour' - but it's happening ... to THOUSANDS

More than 3,000 helpdesk staff at mobile network O2 will be transferred to outsourcing giant Capita and around 600 made redundant by August, according to the Communications Workers Union. The trade union described the move as "a betrayal". O2 owner Telefonica, meanwhile, told the Telegraph that only 2,000 positions would be …
Bill Ray, 21 May 2013

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

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
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

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
Crapita logo

Capita hoovers up 1 in every 5 pounds of outsourced 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
The Register breaking news

London council £1bn outsourcing plan survives vote

An eleventh-hour attempt to kill London Barnet Council's billion-pound outsourcing plan has failed. The "One Barnet" plan to commission government services from private companies - potentially including BT and Capita - will roll on after the Conservative Council leader of the London borough survived a no-confidence vote last …
Anna Leach, 08 Nov 2012
Champagne Not Included

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

Outsourcing fingered as UBS cops £30m fine

The perils of outsourcing have again come under the spotlight after regulators investigating the $US2.3bn loss at Swiss bank UBS pointed to key risk management failings at a third party provider based in India. The FSA and Swiss regulator FINMA launched a joint investigation into UBS in September 2011 after it came to light that …
Phil Muncaster, 27 Nov 2012
g_cloud_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
Columns of coins in the cloud

Deutsche Bank pens cloudy infrastructure deal with HP

Fat outsourcing contracts are relatively few and far between these days, so HP’s 10-year, multi-billion dollar global win with Deutsche Bank is a welcome shot in the arm for its declining Enterprise Services division. The deal was signed before Chrimbo – we asked HP for comment at the time but it refused to talk – but it went …
Paul Kunert, 24 Feb 2015
The Register breaking news

Outsourcing your own job much more common than first thought

RSA 2013 Computer programmers outsourcing their own jobs and pocketing the profit from salary differentials overseas is much more common than first thought. Last month, Verizon reported that an investigation into a client had revealed that the unnamed company's star programmer, a chap dubbed Bob, had outsourced his job to a Chinese firm …
Iain Thomson, 27 Feb 2013
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
German shepherd guard dog standing in flood water

45% of UK data centres have suffered a natural disaster. Really?

Earlier this year I managed to sleep - somehow - through the Kent Earthquake. And in 2011 and 2012 about 30 centimetres of snow blocked my village for one or two days at a time. I also know someone who got flooded last year - she lives next to an estuary just a few kilometres away. Five weather systems can collide over the …
Drew Cullen, 18 Jun 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
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

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
HP Logo splitting in two

HP going public on more job cuts, say expectant analysts

HP CEO Meg Whitman is to brief financial analysts Stateside later today on the commercial forecasts post split, with Wall Street types also expecting detailed news of more jobs cuts on the Enterprise Services side. The company breaks apart legally from the 1 November, forming HP Inc (PC/printers) and HP Enterprise (the rest of …
Paul Kunert, 15 Sep 2015

Light-fingered Satyam founder Ramalinga Raju jailed for seven years

The former chairman of Indian outsourcing firm Satyam Computer Services has been jailed for seven years for his part in a $1.4bn (£953m) accountancy fraud scandal. The Special Central Bureau of Investigations Court in Hyderabad sentenced B. Ramalinga Raju and eight others - including auditors Subramani Gopalakrishnan and Talluri …
Kat Hall, 10 Apr 2015
Euro notes

RBS's Ulster Bank whacked with enormous IT cock-up fine

RBS-owned Ulster Bank has been whacked with a €3.5m (£2.75m) fine for the IT outsourcing cock-up that affected RBS customers in 2012. The incident resulted in around 600,000 customers being deprived of basic banking services over a 28 day-period during June and July 2012, said the Central Bank of Ireland (CBI). The fine is the …
Kat Hall, 12 Nov 2014

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

Accenture extends tentacles with €25m Dublin R&D centre

Accenture is the latest company to expand its base into low-tax Ireland, opening a €25m (£16.5m) R&D centre in Dublin and hiring 200 new bodies. The move by the consultancy and outsourcing biz will apparently focused on cognitive computing, the "internet of things", advanced analytics, security and digital marketing, according …
Kat Hall, 01 Oct 2015
Crop of doctor with pen and clipboard

Capita lands spot on mega £5bn NHS commissioning deal

Outsourcing giant Capita is one of three major companies to be awarded a place on the £5bn Lead Provider Framework for Commissioning Support Services. Clinical Commissioning Groups (CCGs) will be required to re-procure many of their support services by April 2016 in order to comply with EU procurement law, which NHS England …
Kat Hall, 09 Feb 2015

From the frying pan, into the fire: HP Services veteran Craig Wilson is off

Former HP Enterprise Services UK chief Craig Wilson is to take control at London-listed software and BPO provider Xchanging from the start of next year. For the past 11 or so months, Wilson – who was replaced at HP ES by Jacqui Ferguson, one-time chief of staff for CEO Meg Whitman – was veep of corporate restructuring to …
Paul Kunert, 16 Sep 2015
The Register breaking news

China raked in £184bn from IT outsourcing in 2011

China’s software and IT outsourcing industry is booming, rising by a third in 2011 to reach a whopping 1.84 trillion yuan (£184.33bn), according to new government figures released by the Ministry of Industry and Information Technology. The stats, seen by state-run news agency Xinhua, represent around a 4 per cent increase on the …
Phil Muncaster, 28 Feb 2012