Aerospace

Aerospace & Defense

BUSINESS PROCESSING

We offer A&D enterprises the opportunity to remove complexity across a full range of business processes. By unburdening themselves of back office functions which support their operation but are essentially peripheral to their vision and mission, we give these customers time and efficiency to focus on what they do best. The result is more flexibility and greater efficiency in the face of formidable challenges. Customers in this sector already trust us with their payroll, learning and development, recruitment, and HR administration. When required, we are also positioned to offer A&D customers cross-sector expertise in offshoring services which can deliver advantages including speed to market, back office transformation, on-demand business, improved customer service and cost optimization.

TECHNOLOGY

We offer extensive technology capabilities across a variety of industry sectors. In A&D specifically, our Enterprise Solutions team is already helping customers maximize their administrative and operational effectiveness and manage product lifecycles. On the wider stage, our infrastructure team supports customers’ growth with cost effective, scalable and rapidly-deployed solutions. We also design, build and run the software that supports a range of business processing solutions. We embed our intellectual property (IP) to create a solution faster and more cost-effectively than our customers can themselves. Where security is a concern, for example, we can identify potential security risk, manage anti-virus updates, monitor virus controls, intrusion protection and detection, and provide management and support of penetration testing. We can also provide customers with Total IT Outsourcing (ITO) solutions; a single point of supply for an end-to-end managed service.

PROCUREMENT

We are experts in supporting procurement professionals with services including sourcing, spend management, procure to pay (P2P), system management and software solutions. We actively engage with the procurement community across industry sectors and look to provide thought leadership and develop strategies for creating added value procurement.


INDUSTRY OVERVIEW

In July 2012, cuts were announced that will reduce the UK army to about half its size during the Cold War era.

17 major units totaling 20,000 regular soldiers are planned to go by 2020, with a further two rounds of redundancy scheduled for the remainder of 2012.1

With government being the major defense customer in most developed economies, the scale of these cuts in UK forces is symptomatic of the continuing challenges the defense sector faces in a down economy.

As Deloitte reports, based on mid-year 2012 financial results, defense companies in the top 20 global aerospace and defense (A&D) companies, experienced a decline in their global revenues of $1.3 billion, or a 1 per cent decrease, after a 3.3 per cent decline in 2011. Even the United States – traditionally the world’s largest defense market – has remained flat as the Department of Defense (DOD) reins in spending and the Secretary of Defense proposes another $78 billion in weapons systems and force structure cuts.2

For a contrasting scene, we must look east.

Led by China, military spending in Asian countries continues to rise and, as the International Institute for Strategic Studies reports, is likely to outstrip Europe this year for the first time in history. Asian countries as a whole increased their defense budget by more than 3% in real terms last year whilst China increased its share of total military expenditure on weapons in the region to more than 30%. Official Chinese military spending totaled nearly $90bn last year, more than two-and-a-half times the 2001 level.3

Amongst other Asian countries, regional rivalries over trade routes, fishing stocks and mineral deposits are driving a significant expansion of maritime forces and other military assets.

Japan has announced its intention to acquire F-35s, whilst India has tested a long-range missile capable of striking China. India bought a Russian-built nuclear submarine at the start of 2012 and has two locally built aircraft carriers scheduled to enter service in 2013 and 2014. South Korea last year began construction on a $970-million naval base for 20 warships, including submarines.4

With developments like these, the A&D sector provides a barometer for a world in which shifting political landscapes and an age of austerity are changing many of the old certainties.

Business Issues

Today, the international aerospace and defense industry faces uneven terrain.

In the United States, the world’s largest defense market, A&D enterprises can expect overall spending to remain high as the country continues with commitments in Iraq, Afghanistan and the global war on terror. Of course, this does not mean that individual programs will not be trimmed or cut. Many have been, some quite deeply as the Obama administration navigates health and welfare reforms and an historic budget deficit. But the fact remains that defense expenditure in the US is still projected to account for 16% of the federal budget in 2012; approximately $1 trillion.1

In Europe, the vista is less nuanced. Recession and cuts have hit hard.

In the UK the Spending Review 2010 mandated an 8% reduction in the defense budget by 2014-15.2 France has reportedly cut €3.5 billion from defense spending. Germany is retiring large numbers of aged planes, helicopters and ships whilst simultaneously cutting back on new buys. Italy cut €255 million in 2011 with a further €304.8 million projected for 2012. And Spain has slashed spending by 9%.

By way of contrast, look to the Asia-Pacific region and there is more than the hint of an arms race. China is equipping itself with the capability to project military power through an incipient carrier fleet. Perhaps following suit, countries including India, Pakistan, Japan, South Korea, Thailand and Indonesia are all seeing increases in defense spending too.

It is a complex and unsettled scene, and it isn’t purely driven by budgets or the lack of them.

Government and military authorities alike must work out how to keep pace with technological opportunities and threats, including cyber warfare, and explore the potential for deploying their forces using renewable energy sources, given that much of the world’s energy is currently buried within politically unstable regions.

Now more than ever, A&D enterprises need efficiency and flexibility as part of their armory, to secure commercial objectives, and to defend themselves against economic assault.

Case studies

Global Personal Technology Company - Perfect Product Testing
Technology Services
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Global Personal Technology Company - Perfect Product Testing

Technology Services

CHALLENGE

To help a renowned manufacturer of laptop PCs optimise its product testing resource

SOLUTION

01 Offer immediate and attractive cost savings from our testing laboratory in Singapore

02 Demonstrate world-class credentials in Product Assurance (PA)

03 Provide the required resources for qualifying new systems, sub-systems and applications for the customer

RESULTS

1 The customer can now rely on support from over 40 technically certified professionals spread between Japan, Singapore, Malaysia and India

2 We have consistently achieved customer satisfaction levels of more than 90% in PA services

Customer satisfaction levels of more than
90%

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