Top 10 outsourcing stories of 2011

The outsourcing sector has offered up some great stories this year. They provide lessons about best practices in outsourcing and highlight some of the challenges.

The outsourcing sector has offered up some great stories this year. They provide lessons about best practices in outsourcing and highlight some of the challenges.

The emergence of cloud computing outsourcing deals has meant more case studies giving us examples of businesses and their cloud journeys.


1 - Department for Work and Pensions cancels £300m Fujitsu contract

The Department for Work and Pensions (DWP) has cancelled its desktop support contract with Fujitsu before it passed to the supplier from incumbent HP.

HP lost the £300,000 contract to Fujitsu Services last year as part of an IT overhaul at the department.


2 - How BP made its supplier ecosystem work

Oil and gas giant BP spent 65% of its $3bn annual IT budget with 3,000 suppliers in 2008, but now it outsources to only seven and has reduced its annual IT budget by $800m as a result.

Vital to the success of the new multi-supplier ecosystem was retaining supplier performance levels and getting them to work together in the light of reduced competition.


3 - Why and how International Personal Finance moved into the cloud?

Home credit provider International Personal Finance (IPF) has embarked on a 12-month project to move its IT infrastructure into a private cloud which will cut costs by millions of pounds and make its planned expansion easier. 

The credit provider is moving from using an infrastructure hosted by service provider Fujitsu to a cloud-based infrastructure from the same supplier.


4 - Energy firm scales IT through Amazon Web Services cloud

Electricity supplier Haven Power is using the Amazon Web Services (AWS) cloud to provide cost-effective access to more computing power, than it will ever need, as it grows rapidly.

The company originally moved to a cloud-based model for its disaster recovery but soon began reaping other benefits of a service offering on-demand computing resources that are charged on a pay-as-you-go basis


5 - UK government is rewriting the outsourcing rule book

Changes in the way the government buys IT services were reflected in the latest figures from TPI, which revealed that the number of outsourcing contracts signed by the UK public sector in the first half of this year was 70% higher than the same period last year, whereas the total value of these contracts was 47% less.

Similarly, the number of public sector outsourcing contracts awarded in continental Europe increased by 70%. However, in contrast to the UK, the total value of contracts also grew by 40% on last year


6 - Fujitsu loses £500m 10 year IT services deal with Thomson Reuters after less than four years.

It has not been a good couple of weeks for Fujitsu and the bad news could be set to continue with the DWP ending its desktop services contract before it started..

Now it turns out it has lost a £500m 10 year outsourcing deal signed with Reuters which it signed back in 2007 to provide IT services globally. Reuters is now of course part of Thomson Reuters. Like the DWP deal it looks like problems in the transition of services could be to blame.


7 - Everything Everywhere: Moving mobile legacy systems to the cloud

Fotis Karonis, vice-president IT at Everything Everywhere, talks to Computer Weekly about the challenges of consolidating Orange and T-Mobile's IT infrastructure and embracing the cloud.

The joint venture between Orange and T-Mobile, known as Everything Everywhere, has an opportunity to differentiate itself in a highly competitive market, with IT the driving force.


8 - KPMG bags Equaterra in latest consultancy consolidation

Business consultancy KPMG has acquired sourcing advisory Equaterra after months of negotiations. Computer Weekly blog Inside Outsourcing first revealed the negotiations in August last year.


9 - Backlash leads Birmingham City Council to reconsider plan to offshore IT jobs

Birmingham City Council's joint venture with Capita is re-evaluating its plan to offshore IT jobs after a public backlash to news of the plan.

Birmingham City Council's decision to hire 55 Indian IT workers to work on the Service Birmingham Capita joint-venture contract has been abandoned after political pressure.


10 - Ten developments that will transform IT outsourcing

The IT outsourcing sector will be transformed over the next few years, with 10 developments changing the way IT is delivered and used.

Speaking at Gartner's annual outsourcing summit in London, Gartner analyst Helen Huntley stated 10 things that would shake up IT and outsourcing. Weak global economies, a new generation of workers, globalisation and cloud computing are a few of the trends that will have a lasting effect on IT and outsourcing.

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