Nokia Is Next To Outsource Their Jobs
Finnish technology group Nokia has announced its plans to outsource the development
of its Symbian operating system, to third-party provider Accenture in time to come.
In a statement recently issued, Accenture confirmed that approximately 2,300 Nokia employees from the UK, US, China, Finland, and India are to be transferred as part of the arrangement, which will see Accenture provide Symbian-based software development and support services until 2016, although this could be further extended.
We are focused on growing our business in mobility and embedded software. The addition of these highly skilled technologists and engineers to Accenture will strengthen our capabilities in these areas, said Accenture chief executive Marty Cole. We look forward to supporting Nokia in the execution of its strategy.
Under the terms of the deal, Accenture will also become the preferred provider for Nokia as it makes the transition to a Windows Phone. Technology service firm Avanade, a subsidiary of Accenture, will supply additional services to Nokia.
The news came not long after security group G4S revealed it had outsourced IT services and infrastructure functions to Fujitsu, in a seven-year agreement estimated to be worth a total of 3.9m. G4S Cash Solutions UK IT Director, Declan Hunt, said: IT is a core enabler for our merger and acquisition activity across the group, so being able to scale our IT levels up and down to meet our changing requirements is essential.
By G4S outsourcing this workload, Fujitsu will provide support for three of G4S UK business units, with staff migrated to Windows 7 and Citrix desktop software, serving 3,500 computers and 10,500 e-mail clients. Its anticipated that the move will be completed by March next year, by which its expected well see many more companies follow suit.
Similarly, defence and security services provider Babcock has suggested that cutbacks in military spending could provide it with outsourcing opportunities, too.
Speaking to the Financial Times, Babcock chief executive Peter Rogers said the potential openings for the group could be significant. Currently, around two-thirds of Babcocks total revenue comes from Ministry of Defence contracts, and the group currently has contracts pending a total of around 12bn.
The Ministry of Defence is about to start outsourcing in a big way. Despite the fact that the RAF, the navy and the army will be a bit smaller, theres still around 13.5bn a year spent on support functions and we think we can cut that, he explained.
Babcock believes contracts worth 8bn could soon be up for grabs, and revealed it had been in talks with defence secretary Liam Fox. Arden Partners analyst added that the Ministry of Defence procurement structure is likely to be radically different, by building closer relationships with third-party providers in the private sector as a result.
by: Tim Bisley
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