Reuters signs £1.7bn outsourcing contract with BT -- and other news briefs

Short takes on this week's news

Short takes on this week's news

Reuters in £1.7bn services deal with BT

News agency Reuters has signed a £1.7bn outsourcing contract with BT - the supplier's biggest ever global outsourcing deal. BT will also acquire loss-making financial services extranet provider Radianz from Reuters for £97m. BT will supply network services to Reuters for eight-and-a-half years.

Renault signs £436m of outsourcing contracts

Car maker Renault has awarded outsourcing contracts to Atos Origin, HP Services and CSC France. Atos Origin will integrate, develop and manage applications worldwide (£209m over five years). HP will provide desktop services to 87,000 users in 26 countries (£105m over five years). CSC will provide server management services in France and Spain (£122m over five years).

Most UK firms choose to keep security in-house

About 80% of UK firms manage IT security in-house rather than outsourcing, research by Unisys has revealed. Of 300 enterprise security managers surveyed, 88% said loss of control was the main barrier to outsourcing. Despite this, 34% of IT managers said shortages of skills constrained security initiatives. Network security is the priority for 74%, followed by data security (69%).

Regulations reprieve is a business opportunity

UK companies have been urged not to relax following a decision by the US Securities and Exchange Commission to grant an extra 12 months for overseas firms to comply with Sarbanes-Oxley rules. Laurie Stephens, head of UK compliance practice at Capgemini, said the reprieve would allow time to refine compliance programmes and convert them from an overhead into a business advantage. "By embedding business practices in systems and processes, firms can offset the incremental cost of compliance and strengthen their controls," he said.

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MFI acts to fix troubled supply chain system

MFI has set up a 60-day plan to turn around its troubled IT supply chain system. The furniture retailer said its SAP system was now stable and had held up during the winter sales. The system cost £50m to implement last March, with additional costs of £37m. MFI said problems with the system contributed to losses of £46m last year. The 60-day plan will focus on stability, reliability and improved service recovery, data integrity and user compliance.

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