Articles about Outsourcing

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
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

IT JOB OUTSOURCING: Will it ever END?

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

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

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 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

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
channel_teaser_exit

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
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
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
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
ROGUE TRADER SIDE TEASER EWAN MCGREGOR IN film rogue trader still...

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

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
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

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
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
cloud

IBM inks another billion-dollar deal... with The Other Advertising Giant

IBM has announced another big outsourcing contract, nabbing a new deal with WPP, the world’s top advertising firm, for $1.25bn. Big Blue has worked with the ad giant before, but this is a new services contract to run its global tech platform in the cloud over the next seven years. The contract comes hot on the heels of another …

Satyam Computing Services founder jailed over $1.4 BILLION fraud

The founder of former Indian outsourcing biz Satyam Computer Services has been jailed for six months for cooking the company's books to the tune of $1.4bn. The case has been rumbling on since Ramalinga Raju intially admitted the fraud in 2009 – a scandal that has been described as "India's biggest corporate fraud case", …
Kat Hall, 10 Dec 2014
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
Lufthansa plane

Lufthansa tosses IT biz to Big Blue, inks outsource deal with IBM

Lufthansa has announced that it’s about to sell off its IT infrastructure division to IBM and rent IT services from Big Blue in an outsourcing partnership. The German airline has been restructuring itself in an effort to cut costs and said earlier this year that it was looking for a buyer for its IT biz so it could better …
School of Rock

Hello, Mr Chips(et): Capita grabs bigger slice of UK IT education market

Capita gobbled up a larger piece of the UK's £800m education IT spending market in 2013, with sales up 9 per cent to £234m. According to analyst firm TechMarketView, the top 10 suppliers dominated the education IT market with combined revenues of £741m. Capita’s sales were bolstered by the acquisition of Northgate Managed …
Kat Hall, 19 Nov 2014
Old Bailey Lady Justice

More Home Office and MoJ jobs could move abroad, union warns

Jobs at the Ministry of Justice and the Home Office could be next in line to be offshored to India, the PCS union has warned, with both departments joining a £1bn shared services venture with outsourcing giant Steria. The Shared Services Connected (SSCL) joint venture, in which Steria owns a 75 per cent stake and the Cabinet …
Kat Hall, 31 Oct 2014
The Register breaking news

North Tyneside: Mega-outsourcing deal will SAVE jobs

North Tyneside council is to outsource all its ICT services, along with finance, procurement, revenues and benefits, customer services and human resources to mega-services provider Balfour Beatty. The company has been named preferred bidder for a contract which is intended to help the north east council to cut its costs. North …
The Register breaking news

End in sight for IT jobs outsourcing massacre

The offshoring of IT work to developing countries has been very popular with accountants looking to cut costs, but the limits are being reached of what jobs can conceivably be sent overseas. Research by The Hackett Group estimates that of the 8.2 million business service jobs available in the US and Europe in 2002, only around 4 …
Iain Thomson, 23 Mar 2012

Fujitsu and Capgemini's giga-quid HMRC lashup given drubbing by govt auditors

In yet another example of a sprawling government contract gone monumentally wrong – the second of the day – HMRC has splashed £7.9bn on an IT outsourcing deal that is looking very tough to justify. Capgemini and Fujitsu won the ten-year Aspire deal – a merged Inland Revenue and Customs & Excise contract – way back in 2004, and …
Paul Kunert, 22 Jul 2014
The young 'uns try a few more pierogi

Attention, CIOs: Stop outsourcing or YOU will never retire

Walk down the hall. Look into the IT room. How old are the people in there? How are they getting on? Or are they just getting on? Would you trust them to keep the server lights on in a couple of years? Is there anybody actually in there at all? If there isn’t, your company may be part of the problem that’s keeping John Harris …
Joe Fay, 14 Mar 2013
Dunce

Read IBM's note to staff announcing mandatory training and 10% pay cut

IBM has instituted a new, mandatory training program for some US employees whom management claims don't measure up in the skills department – and participants will be required to give up 10 per cent of their salaries for the privilege. The program was announced in a memo issued to the affected staffers, all of whom work in the …
Neil McAllister, 17 Sep 2014
india

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
channel

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
Confused computer keyboard

Steria, the MoJ and a £56 MILLION Shared Services write-off

A botched ERP project at the heart of the Ministry of Justice's Shared Services Programme has led to the outsourcing of the back-office functions to Steria – the very company given the original contract to set up the "in-house" systems. Departmental accounts for the MoJ's fiscal '14 ended 31 March reveal the cost of the failure …
Paul Kunert, 27 Jun 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
frustration_anger_irritation_annoyance pain

British Gas 'in talks' to outsource tech services desk, whispers insider

British Gas has dropped a bombshell among its techies after informing them of plans to outsource some or all of its service desk. The erstwhile methane monopoly gathered the IT squad in Staines yesterday to deliver the good news that they could be looking for a job elsewhere. "In a hastily announced IT staff meeting," said one …
Paul Kunert, 02 May 2014
The Register breaking news

Bury council considers mass outsourcing

Bury council is considering a transformation programme that would involve transferring the delivery of most services to private or third sector organisations. It has published a consultation document on it future that includes a number of commitments within the programme. These begin with the key point that it "will start with …

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
Great Wall of China

India's outsourcers look east with eyes on Asian tigers

Indian IT services group Nasscom is turning its attention eastwards with a focus on China, Japan and other previously untapped markets in an attempt to maintain the industry’s double-digit growth. The country’s outsourcers have historically focused their efforts on customers in the UK and US, but president R Chandrasekhar said …
Phil Muncaster, 21 Mar 2014
Love

Huawei and Accenture pucker up for enterprise love-in

Huawei looks to be side-stepping glacier-paced reseller recruitment by getting chummy with consultancy Accenture to work on carrier biz support services and private cloudy enterprise stuff. The ink is still drying on the pact but will see the pair “develop joint initiatives” in China, southeast Asia, other emerging markets and …
Paul Kunert, 16 Oct 2014
Artist's rendering of the concave Vdara hotel

Feeling safe in your executive hotel suite, Mr CEO? Well, DON'T

Corporate bosses are coming under attack from a shadowy new group that spreads malware by hijacking the networks of luxury hotels. Kaspersky Labs' Global Research & Analysis Team has issued a warning about an advanced persistent threat designed by a crew called Darkhotel, who target top execs as they relax in plush hotel rooms …
Jasper Hamill, 10 Nov 2014

Serco issues shares to plug finance gap after profit warning

Serco is looking to plug the gap in its finances from weaker-than-expected results via a share placement estimated to haul in £100m worth of filthy lucre. This follows yesterday's latest profit warning and confirmation that long-standing CFO Andrew Jenner is to quit after 17 years of counting beans, once a successor is found …
Paul Kunert, 01 May 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
balaclava_thief_burglar

Crims at vendors could crock kit says ENISA

Before you sign on the dotted line to acquire some kit or sign up a service provider, ask the vendor you're considering if any of their staff have criminal records. That's just one of many, many, suggestions made by the European Union Agency for Network and Information Security (ENISA), in a new guide to Secure ICT Procurement …
Simon Sharwood, 11 Dec 2014
channel

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

Your data: Stolen through PIXELS

Kiwicon Data loss prevention has been dealt a coup de grace with the development of a client-less system that can suck corporate data through monitors. The research, to be detailed in a proof of concept at the Kiwicon hackerfest in Wellington on Friday December 12, bypasses all detection methods, its developer says. The attack requires …
Darren Pauli, 11 Dec 2014
The Register breaking news

O2 scoffs at call-centre outsource fears, forgets to rule it out completely

Rumours that O2 UK plans to outsource all its telephone support work have been dismissed as speculation by the mobile network operator. The cynical among us will note that's not the same as completely ruling it out. The whisperings were enough to prompt an emergency motion from the Communication Workers Union, stating that more …
Bill Ray, 25 Apr 2013

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

Tata says USA rejecting HALF of Indians' work visa requests

Indian IT services giant Tata Consulting Services (TCS) has said as many as half of its visa applications to the US are now being rejected as Washington continues to clamp down on immigration ahead of a new bill passing through Congress. TCS global head of human resources, Ajoyendra Mukherjee, told news site Livemint that the 50 …
Phil Muncaster, 18 Feb 2014