Outsourcing Times

Centrica's HR outsourcing Deal with Hewitt Associates

British Gas Company Centrica has signed a seven-and-a-half year HR business process outsourcing contract that will cover its 30,000 strong staff in the UK. The deal has been signed with HR services firm Hewitt Associates. It includes workforce administration, payroll, reward management, performance management, succession planning, customer services and HR related information services. The value of the deal has not been disclosed yet. The HR transformation program at Centrica is well underway and the company's new partnership with Hewitt will accelerate and support the delivery of technology for Centrica's line managers.

BCW sells international outsourcing division, but continues to grow

UK's leading credit management group BCW is ready shed its 23-year old outsourcing division for £28 million. Founded by Paul Fraser, MD of BCW, the outsourcing arm had grown over the years through high value employment and investment. Now, it's the turn of its new owners, an MBO team backed by venture capital group Sovereign Capital, to reap the ultimate benefits.

However, the turnover at the remaining units of BCW is expected to touch £20 million this year. With some strategic alliances and acquisitions in the pipeline, BCW is well on its way to multiplying profits. Fraser spells out BCW's success formula:

We have invested hugely in technology - over seven figures per year - and it enables us to manage customer data far more efficiently than would otherwise be possible.

TCS to acquire outsourcing arm of UK's United Utilities PLC?

According to reports, India-based Tata Consultancy Services (TCS) might go ahead with an 800 million to 1 billion US dollar bid to buy Vertex, the outsourcing wing of United Utilities. If it works out, this deal will be an addition to the multi-year IT maintenance contract between the two parent companies. Forbes reports:

Vertex—which has interests in back office functions like customer services, human resources, procurement, finance and accounting—is perceived by the parent company as a non-core business, and hence the decision to sell.

Accenture lands one billion dollar contract with Unilever NV

Ending several months of speculation, Accenture has now confirmed that it has bagged a seven-year outsourcing deal from Unilever. This contract is in addition to the reaction already in place between the two parties through an outsourcing contract for application development, implementation, and maintenance services in Europe. 

As a result of the new HR contract, Unilever will benefit in its services such as recruitment, payroll administration, performance management, workforce reporting, and third-party provider management. The services will extend to 200,000 Unilever employees spread over its delivery centers in India, the Philippines, China, Romania, the Czech Republic, and Brazil. The deal will add to Unilever's aim of cutting costs to the tune of 700 million euros ($900 million) per annum.

Food and Business Review Online has more on the details.

Major Outsourcing Conference

The annual Pharmaceutical Outsourcing of Discovery Chemistry, Advanced Intermediates and API's conference will be held on July 17-18 at the Hyatt Regency Jersey City on the Hudson, New Jersey. At the 10th anniversary of the conference this year, greater focus will be given on pharma needs and fine chemicals in general. The emphasis is also being given in contract manufacturing as well as custom synthesis.

At the conference, the global pharmaceutical industry's suppliers for custom synthesis, fine chemicals, manufacturing and other related contract services will be covered. Top industry experts will participate in the conference and address the gathering. Areas such as globalization, outsourcing, emerging markets and virtual outsourcing will be prominently featured in the discussion.

More Information: Read Here

Exhibiting companies include InterChem, Cardinal Health, Enamine, Ricerca, Key Organics, Johnson Matthey, KNC Labs, Tyger Scientific, deCode Chemistry, PharmaCore, Helsinn, Carbogen, Amcis, PDMS, J-Star, and ChemDiv.

American Girl and API Outsourcing extend outsourcing deal

The outsourcing deal between American Girl Inc., a wholly owned subsidiary of Mattel, Inc., and leading Business Process Outsourcing provider API Outsourcing has received a new lease of life for an additional period of three years. API will provide services such as production of order confirmations, checks, letters, and company notices.

This agreement will lead the relationship between the outsourcing partners to a total time span of 6 years since the first deal was signed in 2003.

US Companies Benefit from Outsourcing

According to a recent study conducted by Capgemini, the US companies have greatly benefited from outsourcing. They are not only pleased with the benefits delivered by current outsourcing efforts, but also they plan do more outsourcing in future. The US companies believe that focusing attention on matters that are core to business will augur well for further growth. Improving process speeds and providing near-term cost savings are also part of outsourcing initiatives.

The US executives understand that the benefits of outsourcing go well beyond cost saving. Outsourcing is a shortcut to business success as companies use it to fuel growth and innovation. In today's competitive environment, executives are looking for ways to drive benefits and improve corporate performance. The US companies have realized that outsourcing is an efficient way to increase competitiveness, improve speed to market, and transform their businesses.

Meachers Group Holdings ties up with China Outsourcing

Meachers Group Holdings has entered into a partnership with China Outsourcing, a company dedicated to sourcing commodities and sub-contracted manufacturing in China. The purpose of this tie up is to enable UK companies to save upto 50 percent on product sourcing and manufacturing costs. This will involve companies having a single source of supply right from initial order placement to final delivery.

China Outsourcing will be the ideal partner to take advantage of this tie-up as it has a presence in both the UK and China. The offices are manned by a skilled work-force which can speak English and Chinese as per the demands of the situation. China Outsourcing conducts extensive tests to ensure that the quality standards are preserved as per the prescribed norms. The perfect blend of expertise and experience will ensure that the objectives of the partnership are met. Manufacturing Talk reports:

From the point of manufacture in China, Meachers Group Holdings utilises its freight forwarding division, Oast Agenices, to undertake shipment, customs clearance and entry into the UK. From arrival in the UK, Meachers offers a wide range of delivery options to suit specific requirements.

LogicaCMG strikes six-year outsourcing deal with ING

LogicaCMG has entered into an agreement with ING, the Dutch financial superhouse. The agreement will span over a period of six years and cover application development, maintenance, and system testing. The purpose of the outsourcing contract is to reorganize functions and save €190m annually by the year 2008. Ovum reports:

The deal relates mainly to ING's banking operations, and is worth an estimated €200m over six years. Some 350 Netherlands-based ING staff will transfer to LogicaCMG, and no employees are expected to lose their jobs as part of the deal.

Intelligroup strikes it rich with a seven-year outsourcing contract

Intelligroup has signed a $24 million outsourcing deal with Royal Greenland to manage its entire IT operations. Royal Greenland benefits from this contract as it receives a wide range of technical expertise and at the same time gains from the ability of Intelligroup to scale up operations as per the requirements of the company. EFYTimes reports:

Intelligroup will provide complete IT operations support, including infrastructure and server management and desktop support, for Royal Greenland's global locations. Intelligroup will use its 24x7 onsite and offshore delivery model to provide such services to Royal Greenland.