Aerospace & Defense
In this section we cover...
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.
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.
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.
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.