MCN Direct Newswire

Vol. 5 No. 18, 12 June 2006

This issue is sponsored by:

Systems Union and The UK Consulting Industry Report 2005/6

This issue news

1. Doctors attack NHS cash for consultants
2. IBM plans $6bn investment in India
3. PA buys healthcare consultancy
4. Deloitte selects seven new consulting partners
5. Accenture does the double at Unilever
6. Further information - feedback/pass on to a colleague/remove from mailing list

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1. DOCTORS ATTACK NHS CASH FOR CONSULTANTS

The British Medical Association (BMA) has criticised NHS spending on management consultants saying that £1 billion is spent every year "without any clear benefit".

Responding to the Government's revelation that NHS deficits reached £512 million for 2005/6 - twice the level of the previous year - the BMA has accused the Government of wasting money on involving management consultants and private sector firms in the health service.

Paul Miller, chairman of the BMA's consultants committee, said cash was being wasted not only on management consultants and private treatment centres - leaving NHS hospital facilities underused - but also on PFI deals using private money to build NHS hospitals.

He concluded: "Yes, bad management is a problem in some places, but the biggest cause is the interference from government. Something is going badly wrong and it is demoralising for staff."

Health minister Andy Burnham defended the Government's strategy. He said Miller's "skewed analysis" was flatly contradicted by the NHS chief executive's annual report, which shows patients are receiving better quality care faster and the vast majority of trusts are transforming care and staying in balance.

Burnham added: "It is the Government's reforms that have delivered these improvements for patients and I find it staggering that Dr Miller seems unaware of these facts."

Acting NHS chief executive Sir Ian Carruthers warned against hysteria over NHS finances and job cuts, but this is not the end of the saga with a joint National Audit Office and Audit Commission report due to explore the causes of the deficits.

2. IBM PLANS $6bn INVESTMENT IN INDIA

IBM is tripling its spending in India over the next three years to $6 billion (£3.2 billion), in an effort to develop the local market and integrate its global service delivery network.

India is IBM's largest country organisation outside the US with more than 43,000 staff across 14 cities. The company has invested $2 billion in India over the past three years and is now planning to base a new breed of service delivery centre, an innovation, development and executive briefing centre, and a telecoms research and innovation facility in the country.

Speaking to a large gathering of staff in Bangalore, IBM CEO and chairman Sam Palmisano said: "India and other emerging economies are an increasingly important part of IBM's global success. If you are not here in India, making the right investments and finding and developing the best employees and business partners, then you won't be able to combine the skills and expertise here with skills and expertise from around the world in ways that can help clients be successful."

IBM's centre in Bangalore will be the first to pilot a method of IT service delivery that will use a 'virtual' delivery platform, unifying the company's global network of delivery centres. IBM says standard processes and increased automation will distribute work among its centres, giving clients more flexibility and better worldwide access to skills, services and continuous availability, at lower cost. The technologies being piloted in India will then be rolled out to IBM centres worldwide.

Sponsor

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3. PA BUYS HEALTHCARE CONSULTANCY

PA Consulting is extending its UK health business overseas with the acquisition of London International Healthcare (LIH).

LIH has a 10-year track record of working with governments, aid agencies and private sector clients in over 20 countries across Europe, the Middle East, Africa and Asia. It will be a significant gain for PA which has so far worked predominantly in the UK health sector. Details of the deal were not disclosed.

LIH managing director Howard Lyons joins PA's infrastructure and development services practice and will lead the firm's international healthcare management business. He has been in the business for over 30 years and has worked in more than 60 countries on projects funded by organisations such as the World Bank, United Nations and European Union.

Commenting on its extended reach in healthcare, PA's head of infrastructure and development services, Ken Rubin, said: "PA's healthcare capability already spans technology development and delivery, and consulting services for life science companies, through to supporting the health sector on healthcare delivery and reform. With LIH's track record and Howard Lyons' experience, PA can also offer international healthcare management, both to the OECD and to developing countries."

• PA is to sell and lease back its London HQ at 123 Buckingham Palace Road. It is seeking offers of over £175 million for the property and plans to invest the proceeds in developing business in new markets.

4. DELOITTE SELECTS SEVEN NEW CONSULTING PARTNERS

Deloitte has named seven of its management consultants as partners, as part of a wider promotion of 38 professionals to the partner role.

The new consulting partners, who joined Deloitte's elite on 1 June, are Sam Baker, Richard Hurley, David Jones, Stephen Marshall, Stephen Mercer, Simon Wakefield and Malcolm Wilkinson. Deloitte's UK consulting practice now has 111 partners - out of a global total of 624 - reporting to lead consulting partner David Owen.

John Connolly, who was recently re-elected as senior partner and chief executive of Deloitte for a third term, said: "We are extremely pleased to see the promotion of so many high-calibre and talented people across all our business areas - audit, tax, consulting and corporate finance. Our strategy is to ensure that we recognise and retain home-grown talent, while also recruiting direct entry level partners to provide the broadest and deepest range of expertise to our clients."

Expanding on the firm's strategy, Connolly said Deloitte has "ambitious plans" to hire over 100 additional partners and 2,000 staff over the next two years.

5. ACCENTURE DOES THE DOUBLE AT UNILEVER

Accenture has secured its largest HR business process outsourcing deal to date, signing a seven-year contract with Unilever that covers 200,000 employees in 100 countries.

The companies have been working together for 10 years. The HR contract follows an earlier win in April, when Accenture signed a seven-year agreement to provide application outsourcing to Unilever (MCND 5-10). The financial terms of the two deals have not been disclosed.

The HR contract will begin in July and is expected to see the transfer of around half of Unilever's global HR staff of 3,300 to Accenture. Accenture will provide not only HR functions - including recruitment, payroll administration, reward administration, performance management and core HR administration - but also learning services such as programme planning and delivery, learning system hosting, and management and administrative services.

Unilever chief HR officer Sandy Ogg said: "This global outsourcing deal represents a major strategic choice for Unilever. We believe that it is best for our business if we concentrate on our core competencies and transfer what is our back office and make it into someone else's front office."

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Written by Sarah Underwood. Copyright 2012 PMP (UK) Ltd.