2e2 latest – is Phoenix such a good idea? – UPDATED x2
In our on-going coverage of the 2e2 corporate failure, we’ve had a number of readers suggest that taking up the rescue offer from the Phoenix IT Group (note: no relation to Phoenix Business Solutions) might not be such a good idea. Check out these links…
So who else should you turn to? Well there is IRIS Legal – see this story – and we also understand BT Tikit has offered assistance to a small number of firms who they knew were 2e2 customers. Otherwise caveat outsourcer must be the new mantra.
COMMENT: You can gain further insight into the precarious world of outsourcing and managed services by yesterday’s news that Capita has acquired Northgate Managed Services (aka NMS, part of the Kholberg Kravis Roberts-owned Northgate Information Services) for £65 million – only £22 million of the price was in cash. KKK had originally put the NMS on the market for £100 million last year however when KKK first acquired Northgate in 2007/2008, the NMS division was valued at about £253 million. Last year NMS posted profits of £2.6 million on a turnover of £141.6 million.
UPDATE: The Daisy Group has now taken over two of 2e2’s data centres, removing the need for exisiting customers to jump immediately however not before a range of customers, including Marks & Spencer, RBS, Vodafone, Kelloggs, the Sussex Partnership NHS Trust and the Atomic Weapons Establishment jumped ship.