It is starting to look like Aecom’s $2.3 billion outsourcing deal with IBM is coming unstuck as the relationship sours.
According to Computing which has been following the train wreck the deal has already cost the scalp of CIO Tom Peck but has resulted in a service which was much worse than when Aecom did the computing internally.
Its deep throats claim: “Lots of people have complained about the service they’re getting from IT. It now takes weeks to clear new accounts. It’s just not working, and it’s gone so badly that some departments are asking to charge IT for their employees’ time because people are sitting there not being able to work.”
Peck opposed the outsourcing plan, and now it is starting to look like he was right. A source close to the deal claims that the Aecom board are beginning to realise the deal was a mistake, and that employees are being treated “like crap”.
Since January, rumours have been that IBM was going to be axed within a few years and the senior level at Aecom which cheered the outsourcing deal has changed its mind.
Nothing official though.
According to research outfit Information Services Group (ISG), the public sector outsourcing market in the UK has taken a massive hit in the first half of the year. The ISG Outsourcing Index for EMEA found just €2 billion of outsourcing activity in the UK for the first half of the year. Last year the market was worth €4.6 billion.
However, Britain still leads the way when it comes to public sector outsourcing in Europe. The whole EMEA market for the first six months of was just €2.3 billion compared to €3.1 billion last year. In other words, the UK accounted for five sixths of all public sector outsourcing in EMEA this year.
The ISG figures track all outsourcing contracts with an annual value of €4 million or more. They include IT contracts, business process outsourcing, back office processes, but IT dominates with more than two thirds of all contracts. Public sector outsourcing now accounts for 41 percent of all outsourcing activity in EMEA, with Britain in a clear lead.
The top 15 companies winning these lucrative contracts are Accenture, AECOM, Arqiva, Arvato, BT, Capgemini, Capita, CSC, Grupo Ferrovial, HP, Interserve, QinetiQ, Serco, Thales and Tieto.