Archive for July, 2011

Cloud to replace outsourcing, says Forrester

July 21st, 2011

New cloud computing solutions are changing the nature of IT outsourcing in London and across the globe, an industry expert has argued.

According to Ellen Daley, vice-president at Forrester Research, traditional outsourcing is in its death throes and will be replaced by innovative new cloud-based technologies, Live Mint reports.

The IT specialist suggested that standard outsourcing projects are not achieving the cost advantages they used to, while hosted services are offering new efficiencies.

A recent study by Forrester found that the majority of its US and European clients are not saving the amount they expected through IT outsourcing.

Some also expressed frustration about the quality of work.

According to Live Mint, Ms Daley also observed that more and more large corporations will turn to IT outsourcing in London to improve operations and cut everyday costs.

However, Jagdish Dalal, managing director at the Association of Outsourcing Professionals, recently argued that outsourcing is still a strong business decision that can be used to cut costs.

Breaking news from ihotdesk, delivering IT Support and IT Outsourcing in London

Source:http://www.ihotdesk.com/article/800627518/Cloud-to-replace-outsourcing,-says-Forrester

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Manchester Board Discusses Outsourcing of Human Resource Services

July 20th, 2011

The Manchester Board of Aldermen may outsource human resource services in the 2012 budget year.

Kevin Durham, a representative of Paychex, gave a presentation on a plan to the board at Tuesday’s meeting. The company, a payroll and human resources outsourcing firm, already handles the city’s payroll system. The proposal would allow the city to streamline all areas of human resources by providing it with a “Human Resource Generalist” (HRG).

“The key to the HRG is she will be your employee,” Durham said. “She works for the City of Manchester, but she doesn’t require an office, she doesn’t require a salary, and she doesn’t require benefits.”

Under Paychex’s proposal, the city would pay approximately $35,000 for the yearly services, such as managerial training, creation of employee handbooks and updated information on Department of Labor laws and minimum wage. The agreement would require no contract, allowing the city to stop Paychex’s services at any time should the board not be satisfied with the product.

City Administrator Ed Blattner, who is one of the people in charge of human resources, said company’s services would be an upgrade to the city’s current handling of human resources.

“There is just so much stuff here we are not doing,” Blattner said. “We don’t do a good job at this type of thing. We just don’t do a good job of human resource services for our employees, in my opinion.”

City Attorney Patrick Gunn, however, disagreed with Blattner’s assessment.

“I wasn’t going to comment, but I wanted to make sure the public understands, and the board of aldermen understands, that myself and the staff have not been sitting around with our feet up on the desk eating bonbons on human resource matters,” Gunn said. “We have never had a complaint of any kind filed. There is no suggestion that there is anything that is improper. I just wanted to make sure this was clear.”

The board did not need to take action on the Paychex presentation.

“This was just meant to be an informational presentation,” Blattner said. “We can discuss this on the budget for 2012.”

The board also approved two requests by the Parkway School District—one to hold its homecoming parade on Sept. 30, and another for permission to have a fireworks display at its spirit night on Aug. 18.

Source:http://townandcountry-manchester.patch.com/articles/manchester-board-discusses-outsourcing-of-human-resource-services

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Health service considers laundry outsourcing

July 20th, 2011

The Loddon Linen Service is facing an uncertain future, with its current home likely to be demolished to make way for the new Bendigo Hospital.

It was also revealed this week in a letter from Bendigo Health that the service is struggling financially and that its longer term prospects are not much brighter.

Bendigo Health says no decision have been made yet and staff will be consulted.

Source:http://www.abc.net.au/news/2011-07-20/health-service-considers-laundry-outsourcing/2802486

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City could save $25 M with streamlined services

July 20th, 2011

Toronto could save $25 million if it streamlines some of its operations, including its new 311 call centre, according to the latest report by KPMG consultants.

The consultants’ cost-saving cuts in the budgets overseen by the government management committee include outsourcing some of 311’s activities, seeking legislative changes to allow higher fees to recover the costs of the city’s court operations, outsourcing of some of the city’s custodial and security activities and considering online payment options for property tax and utility bills.

The call centre provides information on city government services.

Government management chairman Councillor Paul Ainslie welcomed the suggestions, saying they could give taxpayers “better service” that is “more efficient.”

Ainslie said Tuesday he hopes the changes, if approved, could cut down on some duplication of services.

While he said the changes may result in eliminating jobs, that may be an “unfortunate” reality.

“We’re running a government, I don’t want to employ people just to count widgets,” he said.

Ainslie said reducing the city’s back room staff could lead to “better funding for (frontline) services.

“That’s important to people,” he said.

As for 311, Ainslie said it could be better.

“I’m not very happy with how 311 is running,” he said.

Source:http://www.torontosun.com/2011/07/19/city-could-save-25-m-with-streamlined-services

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Forrester predicts death of traditional outsourcing

July 20th, 2011

Cloud-based technologies that allow clients to access services, applications and other resources over the Internet are gradually disrupting the traditional information technology (IT) outsourcing business, especially as the cost advantage this model offered was shrinking, according to Forrester Research.

IT outsourcing as traditionally understood is on its deathbed, Ellen Daley, vice-president and practice leader at Forrester Research said at a press briefing in Bangalore on Tuesday. She attributed the shift to innovation and the rise of better technologies available to consumers.

A study by Forrester covering 568 companies, mostly in the US and some in France, Germany and the UK, shows clients are increasingly finding that cost-savings, a key factor in outsourcing, was lower than expected.

In addition, client frustration over the quality of the work was increasing, the study revealed.

Core enterprise resource planning applications, long the mainstay of corporate IT, “will sink in emphasis,” she said.

The study also revealed client spending on enterprise resource planning, long the mainstay of corporate IT budgets, and human capital management software was significantly declining over the years. While budgets for customer relationship management were holding steady, spending on areas like business intelligence, comprising advanced predictive analytics, was rapidly increasing, Daley said.

She added that large enterprises too are showing interest in adopting cloud-based technologies.

Source:http://www.livemint.com/2011/07/19201456/Forrester-predicts-death-of-tr.html

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DiNapoli: Port Authority Needs Better Oversight In Outsourcing

July 20th, 2011

The Port Authority prides itself on keeping labor costs low. But the agency outsources work to hundreds of private contractors every year.

A new report from State Comptroller Tom DiNapoli charges that the process for handing out and reviewing these contracts needs serious reform.

“This audit really is, I think a wake-up call to Port Authority leadership, take a look at your processes, take a look at your procedures,” DiNapoli said.

The comptroller’s office examined 75 contracts related to a wide array of operations, including engineering and security. Investigators say Port Authority employees could not provide proper documentation to justify outsourcing on at least 57 contracts worth nearly $1.2 billion.

In a down economy, outsourcing has been promoted as a way to keep from hiring costly public employees. But because many of the contracts are based on outdated estimates it may cost taxpayers more to pay for private employees than to simply hire regular workers.

“It’s almost like a parallel, you know, workforce. And again it’s not accounted for in the same way it’s not as transparent, it doesn’t make the costs as clear, we need to shine some more light on how the Port Authority is spending its money in this area,” DiNapoli said.

The contracts range from projects like the rebuilding at the World Trade Center site to general maintenance at the 42nd Street Bus Terminal.

Officials at the Port Authority are taking the comptroller’s recommendations under consideration, saying, “Our focus is to balance overtime and contracted services to most cost-effectively meet our customers’ needs in an environment where the agency has already cut staff positions to the lowest level in 40 years.”

DiNapoli is not charging any specific wrongdoing.

Source:http://www.ny1.com/content/news_beats/politics/143213/dinapoli–port-authority-needs-better-oversight-in-outsourcing

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Wipro has won a multi-year engagement with a top 10 universal bank for modernizing their core banking platform

July 20th, 2011

Wipro Business Highlights
The IT Services segment had 126,490 employees as of June 30, 2011, an increase of 4,105 people this quarter. the company added 49 new customers for the quarter.
Wipro has won a multi-year engagement with a top 10 universal bank for modernizing their core banking platform. This will involve replacement of their legacy platform by a new one with more contemporary technology. This transformational program will enable the bank to launch new products quickly and go to market faster with new functionality to its customers. Besides this program, the bank has also chosen
Wipro as their strategic partner for application development and maintenance work for their retail banking business.
As macroeconomic environment continues to be unpredictable, enterprises are simplifying and variablizing their IT. Some of the deals won in the market support this growing trend.
Wipro has entered into a multi-year outsourcing engagement with one of the world’s leading mail stream management companies for data center consolidation and provisioning of infrastructure on cloud based models.
As IT budgets come under pressure, businesses are demanding more accountability and value from investments in IT. Wipro has introduced the IT 360TM framework that helps customers define, measure and maximize value from IT investments. The framework which helps customers measure the Return on their IT Investments evaluates the benefits and value of each individual component in the IT landscape, to
maximize the value that IT delivers to business. Wipro has used this framework for a leading provider of commercial cleaning and hygiene solutions to demonstrate IT Cost Transparency.
For one of UK’s largest Water and Sewerage Services organization, Wipro will provide end-to-end delivery of Applications & Infrastructure Managed Services and undertake a series of technology and process transformation initiatives to better align IT services to the customer’s business dynamics.
Analytics continues to be one of the fastest growing services and Wipro has been able to capitalize on this market opportunity. Customers are increasingly looking to analytics to help them win in the world of constraints. Wipro partnered with a hi-tech manufacturing company to establish a quality analytics program.By integrating available data on products and components, the program can provide early visibility into product quality issues.
Wipro has won a Price Optimization consulting engagement with a leading drug retailer in US. Through a partnership with Revionics, a leading provider of life cycle price optimization solutions, Wipro will bring its capabilities in Everyday Pricing and Markdown Optimization and deep expertise in retail domain to this engagement.
Wipro has been chosen by one of largest food manufacturers in UK as a strategic IT partner. As part of the five year strategic relationship, Wipro will be responsible for supporting the SAP landscape for the customer. This partnership will achieve the strategic objective of standardizing systems and processes while reducing operating costs, achieving business productivity efficiencies and improving customer
experience.
The India and Middle East regions demonstrated strong wins across multiple segments. Wipro won a contract from the Jammu & Kashmir government under the Restructured Accelerated Power Development Reforms Program (R-APDRP) and also won a contract from Oriental Bank of Commerce, as the Enrolment Agency for the UID (Unique Identification Number) project enrolments for residents of Delhi & NCR, Punjab, Haryana and UP States.

Source:http://www.indiainfoline.com/Markets/News/Wipro-Business-Highlights/5200899858

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