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Is the US spying on your company? Are you Outsourced?

Yes says Angela Merkel and the German Government, who have just cancelled their contract with Verizon. The German interior ministry cancelled saying “the relationship between foreign intelligence agencies and companies” was linked to their decision. The local rival Deutsche Telekom will take over the services. Several other agencies are interconnected to the network are also […]

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NEWS FLASH – NORDICS REGION

Burnt Oak will announce on Monday 30th June, its plans to extend the range of services offered in the Nordics along with major new appointments to the team. Robert Morgan said “this very exciting and will certainly shake up the market, we are extremely pleased”.

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£1Bn contract – No Thanks says IBM!!

IBM’s today announced that it will not seek to renew the London Congestion Charge contract worth in excess of £1Bn pounds due to be renewed in October 2014. With a 12 month’s notice clause now invoked, the management of TfL are astonished and embarrassed and now have a huge credibility problem in bringing this contract […]

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Scandal of HM Government rewarding for failure

It is not often that this column calls for government regulation and ultimately the establishment of an enforcement body. The continuing scandals that beset the outsourcing of UK Government projects beggar belief. Defence Secretary Philip Hammond, Tim Donohue of the Public Accounts committee and others need to grasp the nettle and “invest” in ensuring that […]

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Private Dell – foot soldier or Major General?

Although rumours first started on 11th January that Dell was seeking to go private, this column broke the news “officially” five days later, and it has taken until 5th February to be announced. Paying an unacceptable 25% premium on his own shares as at 11th January 2013, Michael Dell has succeeded in his ambition. Dell’s […]

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Taking Dell private – the beginning or the end?

Michael Dell made a brave but ill-advised decision to buy a second rate service provider called Perot Systems in 2009. At that time we speculated that if Dell understood the true value of the outsourcing services industry and its double figure margins then there would be an opportunity for Dell to become a giant and […]

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Outsourcing is broken and it is costing YOU, personally, money

The outsourcing industry is in the crapper. There are precious few outsourcing virgins out there, there are virtually no mega deals left in the market. The service providers have economic models still suited to the “early and good old days”, they still pay huge salaries and commissions to staff who cannot now sell economic large […]

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Outsourcing CEO resignation paves way for a sale of the company

Long suffering shareholders of Phoenix, providers of data hosting, disaster recovery and datacentre services, drew in a deep breath on Wednesday when news that CEO David Courtley had tendered his resignation filtered through. Forced or voluntary it lays open the very real possibility of a trade or private equity sale in the next few months. […]

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HP’s future – Part Two Can the Phoenix rise up from the ruins …

We left Part One of this series with HP CEO Meg Whitman referring to EDS by name and telling a meeting of HP partners that “EDS is going to be a great turnaround story” – having eliminated the name EDS, the CEO now seems intent on reviving it. With a projected 13% drop in revenues […]

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HP’s future – Part one Meg Whitman’s master-stroke

Meg Whitman, CEO of beleaguered HP, isn’t stupid but then she isn’t clever either. She has however learnt the art of political survival from her self-funded abortive attempt to become governor of California, which saw a $145m of election bill and a lesson in personal wealth destruction. $4bn was the overnight market cap loss as […]

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Outsourcing War – CSC in the frame for Rendition

Computer Weekly is reporting that Human Rights charity, Reprieve, has gathered documents that it says demonstrate CSC had been contracted to carry out multiple illegal CIA renditions. CSC has been linked in court documents to the rendition of the German citizen Khaled El-Masri, whose case against CIA collaborators in the Macedonian intelligence services is pending […]

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GM axes $2.5Bn HP outsourcing contract – inspired or suicide?

A week ago General Motors’ CIO Randy Mott signalled the end of 28 years of pioneering outsourcing deals by announcing that he was returning 90% of outsourced services back in-house. HP’s approximately $700m per annum (including hardware provisioning) outsourcing contract is now in full run down mode. Returning IT in-house is an alarming and growing […]

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Outsourcing CEO gets 17 years gaol

It is not often that you get an exclusive story and that in addition has all the elements of a melodrama – sustained and significant fraud, greed and envy, betrayal, menace, multiple fast cars, hired muscle, and … you guessed it – Outsourcing! What I hear you cry! – an outsourcer has been jailed for […]

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Logica and CGI Wedding Bells at last? Don’t bet on it!

The news that a mostly unknown Canadian service provider (CGI) has put a cash-only bid to purchase the archetypal old fashioned British jewel of Logica should come as no surprise to the markets. Valued, until the bid arrived, at half of what it was worth a year or so ago, still means that even after […]

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PFI/PPP the UK scandal worth investigating

The European Services Strategy Unit maintains a database of PFI projects and tracks changes. In June 2011 it stated that in excess of 90 PFI deals had been moved to the offshore tax havens of Jersey and Guernsey. Why is this bad? Well, HSBC Infrastructure sold 33 projects to HICL Infrastructure and so £38m of […]

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Mike Lynch is lynched by the HP board

Mike Lynch CEO of HP’s recently acquired Autonomy, is no more. He was ousted in unceremonial fashion just like so many before him, by a HP board which seems set on cannibalism as a trait. Shareholders need to ask two serious questions of Meg Whitman. Firstly, does the HP board really understand what Leo Apotheker, […]

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HP Services Massive Job Losses

McKinsey & Co appear to be spearheading the move to eliminate between 8% and 10% of Hewlett Packard’s workforce of 324,600. Eliminating 26,000 – 34,000 jobs could result in savings of about $1.2 billion and add 50 cents to annual earnings per-share. To blame the iPad and other tablets for the decline in HP’s pc […]

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Extracting value from Xerox-ACS

Xerox shares are trading down 25% on a year ago. Chairman and CEO Ursula Burns is still carrying the burden of her predecessor buying outsourcing company ACS for $8.5Bn in September 2009, an acquisition which, at the time, the markets reacted very badly to driving the share price down 20% (as of writing the shares […]

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Fujitsu’s public shame could become a trend

Outsourcing is evolving fast and a new breed of person is being employed to run the supply interface and recommending legal and other forms of confrontation. Frustrated clients are openly fighting back and attempting to hold the Outsourcer to their promises and to force restitution and for heavy financial compensation for any subsequent failures to […]

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TCS – Outsourcing Giant in Crisis

How is it that TCS have let themselves become the subject of a class action lawsuit for allegedly unfairly pocketing their employees US tax refunds? For a highly successful company with a couple of billion dollars in free cash reserves, Monday’s US court ruling allowing the action to take place destroys at one fell swoop […]

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IT’S OFFICIAL – “OUTSOURCING IS NO MORE”

The prestigious American dictionary publisher, Merriam-Webster, has announced that the terms Outsource and Outsourcing will be removed from their next edition. Mrs Ashley Webster, President and CEO, said that a recent survey by HfS Research had confirmed the confusion caused by the terms and that the new term “augmentation” will be used in future for […]

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Boom time in Outsourcing’s Fourth Dimension

The Outsourcing industry and related media is obsessed with reporting on the global Tier One players like IBM, CSC, HP and Accenture; the wannabes who are Tier Two’s, but who argue that they are global, all lack some critical element(s) to be a true Tier One’s – BTGS, CapGemini, Atos, Logica, HCL, TCS and the […]

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Misys’ Loss is CSC’s Gain? Mike Lawrie sings Outsourcing’s “Times are a-Changing”

2012 sees the premier league of leadership in USA, Russia and China under varying forms of re-election. Even tier two player Sarkozy may fall. In the parallel dimension of “Outsourcing world” there are new CEO’s for ALL tier one players – IBM, CSC (Mike Lawrie elected this very morning) and HP. And tier two players […]

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The Case for Breaking up HP. Part III

Twice, in September this year, we called for the orderly break up of HP. This was for the historic reasons of board delinquency, lack of strategy etc. HP is both a product company and a services company. With Meg Whitman’s appointment as the new CEO, we thought that she should at least be given the […]

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Logica the dejected bridesmaid

Only 42 days ago the broadsheet headlines were that Logica’s poor performance would lead to yet another takeover bid, well actually speculation about a speculative bid. Under our own headline of “Always the Bridesmaid never the Acquisition” we said that it would not happen. It has not. We refuted Logica’s statements of slowdown’s in the […]

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End this conflict of Interest. Break up KPMG et al

When Arthur Andersen failed in 2002, the Big Five audit practices become the Big Four – KPMG, PwC, Ernst & Young and Deloitte. But these audit practices also had consultancy offerings, in audit parlance, “professional services” arms. Strict rules apply to conflicts of interest, and for very sound reasons. As a consequence, during 2002 it […]

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