Archive for May, 2011

Vatican studies long term effects of industrial outsourcing

May 27th, 2011

The young people are out on the streets in countries like Spain, Greece and even Italy because they are living with the human effects of big industries outsourcing their production to countries like Bangladesh, Haiti or Dhaka where they can pay workers a percentage of what they would have to pay in Milan”, says Fr Michael Czerny S.J. The official from the Pontifical Council for Justice and Peace was speaking on the sidelines of a special one day workshop sponsored by the Council and drawing together Italian Union representatives to discuss the impact of the “Industry and Outsourcing”.

Chaired by Council President Card. Peter Turkson, the encounter includes interventions by UGL secretary general Giovanni Centrella and Luigi Sbarra of Cisl, on the impact of the current economic crisis, as well as analysis and proposals to prevent the flight of key employers to developing countries.

“The short term effects for industry may be larger profit margins”, noted Fr. Czerny, “but the long term effects on national economies, society and families may not be worth it”. “It has all the effects that human life gets reduced to sub minimal standards, so for example the very normal and healthy desire to settle down and have a family becomes impossible as you have no steady guarantee of income. So outsourcing, while it might reduce some costs quickly, in the long run is generating social upheaval and leading to a deterioration of human life. Outsourcing means short term decisions that are leading to the destruction of man”

Source:http://www.oecumene.radiovaticana.org/en1/Articolo.asp?c=490465

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Outsourcing Recreation Services to Begin July 15

May 27th, 2011

Though Half Moon Bay will oversee its own recreation programs this summer, San Carlos will begin a contract to provide services on July 15, according to Katie Crowder, Assistant to the City Manager of Half Moon Bay.

The contract is expected to save Half Moon Bay $222,441 each year, a city staff report details.

By Sept. 1, two Recreation Department employees—Supervisor Dirk Alvarado and Administrative Assistant Caroline Weigandt—will be laid off and the department will be completely transitioned to San Carlos, according to Crowder.

San Carlos Recreation Director Doug Long spoke to the Half Moon Bay City Council at a special meeting on Tuesday night where details of the two-year contract (with options to renew for one year each) between the two cities were discussed.

Crowder and Half Moon Bay City Councilmember Marina Fraser both said that they expect the contract to come before the council for approval on June 7.

On July 15, San Carlos will start to provide 15 customer service hours per week at the Ted Adcock Senior/Community Center.

“The exact days and hours would be determined by need and peak usage times,” said Crowder.

Over the summer, there will be some crossover and transition time with San Carlos and Alvarado and Weigandt.

Preserving the acccess of the nonprofit Senior Coastsiders as a location for its programming—including classes and lunch—to the Ted Adcock Senior/Community Center was a concern to some before the city voted to outsource its recreation services on April 2. San Carlos will take over facility management of the Senior/Community Center, the Train Depot and Smith Field.

“I am very happy that the Parks and Recreation team we’re working with will be collaborating with Senior Coastsiders to make sure they have access to facilities,” said Half Moon Bay city councilman Rick Kowalczyk Wednesday night.

On Tuesday night, council members discussed the continued publication of a recreation guide three times a year with mailings to Half Moon Bay, Montara, Moss Beach and El Granada. The city will contribute $19,000 towards the guides’ publication each year. Online registration for recreation classes will be available through the City of Half Moon Bay’s website.

Earlier this week on Monday, Half Moon Bay hosted an information session to all of its recreation vendors to inform them about the transition.

Source:http://halfmoonbay.patch.com/articles/outsourcing-recreation-services-to-begin-july-15

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KLAS Finds Partial IT Outsourcing On The Rise

May 27th, 2011

Sixty percent of healthcare organizations that have engaged a firm for discrete IT services reported seeing more value for their IT dollars since outsourcing, according to a new KLAS report,

Not surprisingly, partial IT outsourcing is on the rise, according to Mike Smith, services research general manager at KLAS and author of the report. What’s interesting to note, however, is that some of that growth has come at the expense of full IT outsourcing arrangements. Smith says as many as 50 hospitals have either reduced or eliminated such arrangements.

“The reality is there are certain key areas that are very, very strategic–such as maintaining applications that are critical to achieving meaningful use–where, if they have the talent or can leverage their own resources to handle it, in certain instances, we are seeing those pieces brought back in-house,” he said.

To free up that in-house talent, some hospitals are outsourcing functions such as help desk and legacy application management. “Since meaningful use and ICD-10 are pulling resources, time, and focus, hospitals are looking to outsource certain pieces that are not strategic,” Smith said.

CTGHS topped all other firms for partial IT outsourcing. CareTech came in first in the ranking for extensive IT outsourcing and second for partial ITO. Findings for Accenture, Allscripts (now Eclipsys), Anthelio, ACS, Cerner, CSC, McKesson, and Phoenix Health Systems were also included in the report. CareTech, Dell, and Siemens ranked in both the partial and extensive ITO categories.

Although there has been some movement from full to partial ITO, and even to no ITO (as some providers have taken all IT services in-house), the firms’ overall performance trends in almost all cases have improved since 2008, according to KLAS.

Smith said a key to outsourcing success is for both parties to strike a fair arrangement, put as much as possible in the contract, then approach the challenges that will inevitably arise during a multiyear relationship–especially those that fall outside the purview of the contract–in good faith and with good will.
He added that, especially when it comes to larger deals, customers expect the vendor’s executives to be available and responsive, while the vendor itself should share best practices gleaned from working with its overall client base.

“Clients expect service providers to offer good, thoughtful feedback to them and strategic advice,” Smith said. “Some are good tactically at keeping a box up and running, but not as good at strategy. If you can do both, while sharing with them what you seeing from other clients–things they should be doing for ICD-10 and meaningful use–satisfaction will he higher.”

Source:http://www.informationweek.com/news/healthcare/admin-systems/229700048

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Eversheds confirms 75 job cuts as it completes outsourcing

May 26th, 2011

Eversheds has cut 75 jobs across its Birmingham, Cardiff and Leeds offices as a result of a back-office outsourcing agreement with Accenture it announced in August last year.

The outsourcing, which has seen more than 350 of Eversheds’ financial support processes taken on by Accenture in Bangalore since the deal was agreed, is due to be completed by September, with the firm predicting no further redundancies.

The bulk of the job losses were in Birmingham, where 10 were made redundant in human resources (HR) as well as 20 in financial services, while Cardiff saw 20 redundancies in its financial services team and Leeds 15 in financial services support. Overall, the back-office team has shrunk by 88 roles, with 13 departures attributed to 
natural attrition.

The final tally is lower than initially expected as the consultation looked at 100 jobs in finance and HR across the three offices as a result of the Accenture deal, which covers matters such as general accounting, billing and collections, and business processes involved from procurement to payments.

Eversheds managing partner Lee Ranson commented: “It has been a staggered process, where we haven’t proceeded until certain quality thresholds were reached. As we’ve gone through the process we have tried to add and retain people wherever necessary.”

The final phase of the transfer will see more of the HR processes moving to Bangalore.

Eversheds’ UK financial support department now has 75 full-time staff with a further 60 staff in its HR team.

Source:http://www.legalweek.com/legal-week/news/2073581/eversheds-confirms-75-job-cuts-completes-outsourcing

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UCL outsourcing plan may break law, union says

May 26th, 2011

UCL wants to transfer 94 estates and facilities staff to private firms, with an additional 14 made redundant and 20 new posts created. It is now considering feedback from a consultation on the move.

The plans would outsource the remaining 30 per cent of cleaning and waste services and 50 per cent of security currently provided in-house. The rest is already private.

UCL Unison says in its response that “many of UCL’s lowest-paid staff will effectively have had their pay cut through the loss of their pensions”. It also argues that the university has not conducted a proper equality impact assessment.

Of the 65 cleaning staff who would be transferred to private employ, 93 per cent are from black and minority-ethnic backgrounds.

The Unison response, from branch secretary Bill Lehm, says that outsourcing “in the way that is proposed is potentially illegal”.

A UCL spokesman described the current mix of in-house and outsourced provision as “inefficient”.

“In-house staff terms and conditions will be protected in accordance with Transfer of Undertakings (Protection of Employment) regulations,” he said. “UCL is also committed to implementing the London Living Wage for all staff, whether in-house or outsourced, and is working to deliver this.”

Source:http://www.timeshighereducation.co.uk/story.asp?sectioncode=26&storycode=416288&c=1

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Roy Reynolds: Outsourcing is good business

May 26th, 2011

Recent polling by my firm for the Costa Mesa Taxpayers Association found that 472 registered-voter households, 59 percent of those surveyed, believed the city “should look at all its options to solve the budget crisis, including outsourcing some of its services.” Of 803 responses to this question, out of over 27,000 automated calls made only to Costa Mesans, 27 percent answered “No” to the question, and 14 percent were Undecided.

The City Council’s strategy to take bids from private companies for work like vehicle upkeep, street repair and park maintenance is favorable to better than double the households we polled. The city will determine by a fair and competitive process whether it will be less expensive to use profit-motivated companies or unionized city employees to perform maintenance and support activities. We’d expect that contracts will be let to private firms only when it’s clear that the city will save money.

If outsourcing succeeds, and it will, union domination of municipal personnel will disappear as the city tries to shrink a multimillion-dollar budget deficit and mitigate $131 million of unfunded pension obligations.

Costa Mesa is only the first among our local governments that will need to rationalize their operating costs and pension liabilities. Municipalities, counties and states can no longer afford the generous salaries, benefits and unsustainable pensions of captive employees. This City Council will find that outsourcing government functions is simply good business.

When Costa Mesa succeeds in its outsourcing strategy, Orange County government should follow the example and expand on outsourcing appropriate operations.

In a December 2004 column on these pages, Yorba Linda resident Tom Cagley wrote: “Any public department or function … competing with private industry should be eliminated and turned over to private industry. … [I]f there is a private company in the Yellow Pages that can and will do the job, the government has no business in the business.”

Responding this week to a scathing audit of the county Human Resources Department, Supervisor John Moorlach was quoted as saying “he wants to consider the outsourcing of the entire … department.”

Recent controversies at the county’s Public Administrator/Guardian offices suggests an excellent opportunity to outsource these departments, whose functions are duplicated by any commercial bank’s trust department. Those functions include discretion, auditability, honest dealing and financial acumen. The Public Administrator/Guardian has no monopoly on these responsibilities. Bank of America, Citigroup, Chase and other institutions have trust operations in Orange County and should eagerly respond to an opportunity to examine the Public Administrator/Guardian’s organizational chart, budget and business plan.

Orange County government outsources other functions, like information technology and certain health care activities. Its public works projects are bid to private firms, so the concept is hardly untried. Low bidders, after proper vetting and reference checks, are going to save money via the competitive nature of the bidding process. Governments by definition are monopolies, and injecting market competition from the private sector has to drive down costs.

It’s high time government was more competitive and acted more like a business, with shareholders and customers to satisfy. Let’s strongly consider Supervisor Moorlach’s idea and start with outsourcing the well-studied Public Administrator/Guardian, save some money and remove its operations from the political influences that have caused it to become a public spectacle.

Source:http://www.ocregister.com/opinion/-301985–.html

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Mahindra Satyam on track with rising outsourcing demand

May 26th, 2011

The stocks of Mahindra Satyam, erstwhile Satyam Computer Services, dropped 6% to Rs 72.3 on Monday after the company reported a net loss of Rs 327 crore for the March 2011 quarter.

However, the company’s clarification that the huge loss was on account of a one-time expense on the settlement of US shareholder lawsuit came as a relief.

The clarification helped the scrip to recoup its Monday’s loss by gaining almost 4% to Rs 76 during the first half of Tuesday.

Subsequently, the company’s announcement related to its involvement in the IT revolution in Qatar lifted market sentiments further.

The scrip ended the day with a 11% gain at Rs 82, a six-month high. With the legal settlement in the US, most of the litigations are over, with only one major Aberdeen suit liability pending.

These legal suits were the key risk factor in the company’s valuation.

Source:http://articles.economictimes.indiatimes.com/2011-05-25/news/29581804_1_mahindra-satyam-outsourcing-demand-profit-margin

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