2011 was an eventful year as far as the global outsourcing sector is concerned. There is so much to learn from both in terms of best practices and challenges.
The following are the top five interesting incidents in the outsourcing space that occurred in 2011:
Cancellation of Fujitsu contract by the department of Work and Pensions worth British Pound 300 million
BP improves performance with reduced service providers
Specifics behind International Personal Finance’s shift to the cloud
Amazon Web Services Cloud to help Haven Power scale up
UK government goes for increased outsourcing
The contract worth BP 300 million, which was intended to provide maintenance and support service to 140,000 computers across the United Kingdom, was cancelled on 11 March. Fujitsu had missed the dates, which it had promised to start its operations. The outgoing service provider HP was asked to carry on with its operations.
In the year 2008 BP had outsourced its IT needs to about 3000 service providers and had spend about 65 per cent of its USD 3 billion annual IT budget. Thus they were able to reduce the spending on IT outsourcing to USD 800 million.
Now they have seven service providers where BP works with in a collaborative fashion. This has helped to make the most out of outsourcing partnerships. The present suppliers include IBM, TCS, Infosys, Accenture, Wipro, HP and T-Systems.
The main driving force behind the move is cost reduction which will amount to millions of dollars. IPF entered into a deal worth BP 10 million with Fujitsu for a period of three years. According to the deal Fujitsu will provide cloud services to IPF on a pay per use model. The sources from IPF said that the move will bring in an immediate cost saving of 20 to 25 per cent on service charge.
Haven Power, an electric power supplier is making use of Amazon Web Service, which provides cost effective solutions as the firm scale up its operations. The firm actually used cloud services as a disaster recovery mechanism, but soon began to enjoy other benefits of pay as you go basis.
Sources from the company say that they were able to arrive at solutions with reduced time as a result of using cloud services. Thus they were able to save time, money and other resources.
The recent figures published by TPI shows that the UK government has increased their outsourcing activities. The number of outsourcing contracts signed by the public sector in the country has increased by about 70 per cent when compared to the same period last year.
This is a consequence of restructuring of the existing outsourcing contracts in the United Kingdom. Industry sources say that standardization of Information Technology services will help government to improve governance.