MCN Direct Newswire

Vol. 8 No. 16, 14 December 2009

This issue is sponsored by:

Freedom Communications and 2009 UK Consulting Industry Half-Year Report

This issue news

1. MCA slams 'perverse' government plans to halve consultancy spend
2. HCL wins $200m deal at Equitable Life
3. Deloitte names global head of climate change
4. Capita denies business slowdown
5. Accenture backs public sector innovation
6. Further information - feedback/pass on to a colleague/remove from mailing list

Sponsor

Freedom Communications

Arsenal FC - contact centre overhaul

Each of Arsenal FC’s products - match ticket sales, stadium tours, restaurant reservations, home shopping, soccer schools and many other options – have been given their own dedicated telephone number (15 in total) and specialist sales agent. The club identified inefficiencies, and an opportunity to enhance customer service and improve cross-sell opportunities. To read the case study of their overhaul, please click here.

1. MCA SLAMS 'PERVERSE' GOVERNMENT PLANS TO HALVE CONSULTANCY SPEND

The Management Consultancies Association (MCA) has branded as 'perverse' government plans to reduce consultancy spending by 50%, warning that arbitrary cuts in consultancy would rob government of essential expertise and could leave it unable to reduce public sector debt.

The MCA's attack follows publication of the Government's 'Putting the Frontline First: Smarter Government' document, which describes how it will improve public service outcomes while cutting costs. One action will be to streamline central government for sharper delivery, a process that will involve "releasing further resources for front-line services by reducing spend on consultancy by 50%".

In response, MCA chief executive Alan Leaman said: "Management consultancies will play a critical role over the next few years in helping the government to save money, improve front-line services and raise productivity.

"It is perverse to announce an arbitrary reduction in consultancy without any analysis or explanation. The Government could easily miss its other spending objectives if it robs itself of the ability to use consultancy when it is appropriate to do so."

As well as cutting consultancy spend, the Government plans to improve back-office and procurement processes "to the standard of the best", expand successful shared services centres, and explore best governance and ownership structures for every department.

2. HCL WINS $200m DEAL AT EQUITABLE LIFE

HCL Technologies, the Indian IT services firm which last year acquired Liberata Financial Services, has beaten competitors to a $200 million (£123 million) BPO contract with Equitable Life Assurance Society.

The deal is HCL's first and long-awaited major win in the life and pensions administration market since it acquired Liberata's financial services business.

Under the contract which starts in March 2011, HCL Insurance Business Services (IBS) – essentially Liberata's UK operations - will take over a BPO contract currently being delivered by Lloyds Banking Group, along with Lloyds staff working on the Equitable Life account and a small number of Equitable Life staff.

The transfer will place over 500,000 life and pensions policies under HCL IBS administration and is expected to save Equitable Life £8 million in the first full year.

HCL Technologies senior vice president Stuart Drew said: "Over the coming years, we plan to develop the scope of this work to encompass other financial services clients. Ultimately, we aim to transform the operation into a centre of excellence within our global service delivery capabilities."

Chris Wiscarson, chief executive of Equitable Life, said: "This is one of the most important decisions in the society's history. HCL has an impressive reputation and I am confident that it will provide great service and great value to policyholders."

Sponsor

2009 UK Consulting Industry Half-Year Report

The UK Consulting Industry Half-Year Report is the shorter sister publication to the UK Consulting Industry Report, produced annually by the Management Consultancies Association and published jointly with MCN Direct (owned by NCC).

The Half-Year Report January-July 2009 provides unique data and insight into the state of the UK consulting industry over the last half-year, which has been so critical for the UK and global economies. This 11-page report looks at industry performance across sectors and service lines; changing growth rates, fee rates and income; year-on-year comparisons; and the outlook and challenges for the second half of 2009 and beyond. It provides detailed statistics as well as hard-hitting analysis.

For more information and to order your copy, please click here. Alternatively contact the publishers, NCC. Tel: +44 (0)1494 732830. Fax: +44 (0)870 134 0931. Email: reports@ncc.co.uk.

3. DELOITTE NAMES GLOBAL HEAD OF CLIMATE CHANGE

Deloitte Touche Tohmatsu has selected senior partner Nick Main as its global managing partner for climate change and sustainability, in the same week that it reinforced its green capabilities by being chosen by Denmark's Ministry of Foreign Affairs to measure the carbon footprint of the UN climate change conference in Copenhagen.

Main will be based in London and will offer guidance to Deloitte member firms on laws and regulations regarding greenhouse gas emissions, as well as advice on sustainability issues. He was previously chairman and CEO of Deloitte New Zealand.

Commenting on Main's appointment, Deloitte global services managing partner Jerry Leaman said: "Deloitte firms recognise the urgency for many of their clients to address the potential impact of new and proposed greenhouse gas legislation on business strategy and operations. Nick Main's experience with climate change and sustainability issues will be critical to Deloitte member firm professionals."

At the UN climate change conference in Copenhagen, Deloitte Denmark helped develop a method for calculating the local carbon footprint of the conference, taking into account greenhouse gas emissions of elements such as accommodation, local transport of participants and conference centre activities.

4. CAPITA DENIES BUSINESS SLOWDOWN

Capita chief executive Paul Pindar has challenged analysts' suggestions that the group's sales growth is slowing - insisting that the days of double-digit organic growth are not over and that there are vast areas of government outsourcing work still to be tapped.

In an interview with the Financial Times, Pindar likened today's situation to the recession of the early 1990s, when top-line growth slowed for a couple of years and took off as the economy came out of recession. He said: "If you look at the underlying strength in the business at the moment, the margin growth is still looking encouraging, as is profit. The environment for acquisitions is extremely healthy."

As the UK's largest outsourcing group and a leading player in the public sector market, Capita has grown revenue at a compound annual rate of 26% over the past 10 years. But analysts say this could slip, pointing to a November trading statement that showed Capita had won £1 billion of new business this year, but £814 million was secured in the first half, meaning the win rate slowed in the second half of the year.

Despite this Pindar remained bullish on the prospects for outsourcing, though he highlighted government reluctance to set up major IT projects in the run-up to the general election and concerns about a potentially hung parliament with no clear decision making.

He remained adamant, however, that any new government will see outsourcing as a means of cutting IT spend and said Capita would not lower its prices to win public sector contracts.

5. ACCENTURE BACKS PUBLIC SECTOR INNOVATION

Accenture has joined with the Lisbon Council think tank and the College of Europe to set up a centre dedicated to developing innovative strategies and solutions for public sector organisations across Europe.

Called the 'Government of the Future' centre, the Brussels-based venture will initially focus on four areas seen as key to improving the social and economic conditions of European citizens: the provision of healthcare; boosting employment; connecting citizens and governments; and enhancing the sustainability of public sector organisations.

In 2010 the centre will also host a Government of the Future summit with government leaders, opinion formers and public sector organisations, publish a series of state transformation case studies; and convene public sector modernisation workshops.

Paul Hofheinz, president and co-founder of the Brussels-based Lisbon Council, which focuses on economic modernisation and social renewal, explained: "Society needs more innovation in the public sector - not just as an antidote to the recession, but as a platform for meeting citizens' demands in a fast-changing world."

Meanwhile, Accenture has also established an innovation centre for health in response to the growing challenges facing the global health industry. The centre, based in London and Chicago, will provide research and solutions aimed at delivering cost-effective care and services across the healthcare market.

* This is the last issue of MCN Direct before Christmas. We would like to take this opportunity to wish all our readers and sponsors a very happy Christmas and prosperous New Year.

6. FURTHER INFORMATION - FEEDBACK/PASS ON TO A COLLEAGUE/REMOVE

• For more information or if you have any feedback on MCN Direct, please email editor@ncc.co.uk
• If you wish to unsubscribe please reply/send an email stating 'Remove !*FIELD1*! from MCNDirect' to: mcndirect@ncc.co.uk.

Written by Sarah Underwood. Copyright 2012 The National Computing Centre Ltd.

Please click below to view NCC's other consultancy publications, which are fully searchable and represent thousands of pages of information relevant to the consultant community.

Publications include:
Management Consultants' News
NCC Research Free Reports

Free registration to Evaluation Centre
Are you looking to identify a new IT supplier? Do you want to evaluate what the marketplace is offering? The Evaluation Centre, from the publishers of the respected journal Conspectus, offers free unlimited access which will allow you to find the right business application – FAST.

Evaluation Centre is an interactive service guiding consultants and end users to the selection and use of business software, services and technology. At the Evaluation Centre, you can:

• Find the software, services and technology you need from the 11 different Evaluation Centre subject areas.
• Access a library of independently audited reports.
• Download expert guidance on the whole project lifecycle.
• Get further information and advice on your requirements.

Register for Free in 30 seconds >>