36 outsourcing Outsourcing - to the cloud?
Joanne Vengadesan of Penningtons Solicitors LLP anticipates that the number of UK businesses opting for cloud computing solutions will continue to grow
Organisations constantly look at increasing efficiency, enhancing products and reducing costs. Outsourcing can be key in achieving this. Utilising cloud computing technology is a current trend.
The government announced this October that its “G Cloud” service framework will be in place by Christmas. This is intended to facilitate government procurement of cloud computing services and is part of its strategy of supporting access to cloud services.
So what’s different about ‘cloud’ technology? In simple terms, cloud computing is the delivery of IT as a service, via the internet. At one level, this could be Software as a Service (SaaS). SaaS is now a fairly established model. Other cloud variants remove the need for a business to source its own hardware by delivering resources over the Internet. Cloud services are often standardised, though the market anticipates that CSPs will increasingly offer bespoke solutions.
With Infrastructure as a Service (IaaS), virtual servers, network equipment, memory and data centre facilities can be provided together with software, to deliver a solution. Cloud service providers (CSPs) host a business’ infrastructure from “server farms” allowing the business to access its data centre via the Internet. These resources
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Language company wins coveted contract that could translate to a £1m saving for the Government
Berkshire-based language company Prestige Network has won a coveted contract to provide British Sign Language (BSL) and spoken language services to the Department for Work and Pensions, potentially saving the Government up to £1 million over the course of four years.
The Thatcham company won the deal after a rigorous tendering process against two other companies, fighting off stiff competition to be awarded the contract.
The contract is for providing face-to- face interpreting services for spoken languages and BSL to departments such as JobCentres and Pensions, at low, fixed rates around the clock, 365 days a year. The contract covers 49 languages, with a possible 100 further languages.
It follows Prestige Network’s successful place on a framework
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agreement by Buying Solutions, the national procurement partner for UK public services.
The deal, which will save the Government £250,000 a year for each year of the two-year contract, plus a two-year extension option, means that the Government will save on its existing face-to-face interpreting bill, crucial news at a time when the public purse is under such scrutiny.
Simon Foggett, contract manager for the Department for Work and Pensions, said: “Prestige Network was chosen for a number of reasons. The company was technically competent in its tender submission and was also competitive in terms of cost. We felt that Prestige Network’s approach showed that their staff best understood our requirements – we are confident that they will be a safe pair of hands.
“The Department for Work and
Pensions is committed to high standards and value for money for everyone who uses our services. Appropriate communication and accessible information are an essential part of ensuring that people receive the same quality of services, without discrimination.”
Shawn Khorassani, strategy and business development director at Prestige Network, said: “This contract represents extremely good value for money for the DWP. It will save the Government £250,000 a year for each of two to four years – that’s potentially a massive £1m at a time when the public purse is under extreme scrutiny.
“This contract recognises that specialist language services such as ourselves work in a positive way to meet the requirements of today’s multicultural society – interpreting is a valuable tool in helping social
cohesion to take place. Appropriate communication and accessible information are an essential part of ensuring that people receive the same quality of services, without discrimination.
“The whole remit of this tendering exercise was that we are saving money for the Government. The tendering process was very strongly motivated by the economic need to drive down costs, whilst still providing a stable and reliable service for the next two to four years.
“The agreement means that all departments within the Department for Work and Pensions can benefit from low, fixed rates 24 hours a day 365 days a year. We feel privileged to be in a position to provide these interpreting services.”
Details: 01635-866888
www.prestigenetwork.com
THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2011
are often shared, with the CSP employing load balancing technologies.
Cloud technologies provide clear potential benefits of cost savings and efficiencies. For example, the University of Salford announced earlier this year that it was investing £5.7 million in cloud infrastructure, which it expects to enhance its services to students.
A move to the cloud is not without challenges, particularly as infrastructure and data are held by CSPs and their service providers in turn.
Customers should be thorough in due diligence to identify areas of risk. Contracts must deal with data protection issues and contain appropriate service levels. Customers should be aware of enhanced remedies that CSPs may seek, such as the ability to delete data for a customer breach of contract.
Any outsourcing deal may have an impact on an organisation’s employees. In a traditional IT outsourcing model, TUPE regulations are likely to apply to transfer employees of the customer or incumbent supplier to the newly appointed supplier. When appointing a CSP, the CSP may challenge such TUPE transfers, possibly on the basis that its service is sufficiently different that no activity can be deemed to transfer under TUPE.
This must be considered as part of the overall risk assessment.
Organisations are still cautious of adopting cloud solutions, but we expect this to change in the foreseeable future as the market matures.
Details: Joanne Vengadesan 01256-407100
joanne.vengadesan@
penningtons.co.uk www.penningtons.co.uk
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