Trust in the cloud is growing - but what is holding us back?
Mega-deal outsourcing deals - those contracts with a value of $1 billion or more - picked up in the second quarter of 2012, according to the quarterly Global TPI Index.
Five mega-deals were signed during the quarter compared with just one each in the second quarter of 2011 and the first quarter of 2012. All five were awarded outside of the mature U.S. and Western European markets-three of them in India and Brazil.
Mega-deal activity is always fairly uneven quarter to quarter, said John Keppel, partner and president of research and managed services for outsourcing consultancy ISG, which produces the index. But the location of the awards is worth noting.
"In the future we expect most new scope growth to come from emerging markets," said Keppel, "while the U.S. and Western Europe will generate the bulk of restructuring activity."
The mega-deals awarded by companies in the telecom, banking and consumer goods industries with a combined value of $6.3 billion, accounted for nearly 30% of global contract value signed during the second quarter. Four of them were entirely new deals, while one was a restructuring.
Additionally, 11 mega-relationships-those with an annual contract value of $100 million or more--were initiated in the quarter, the most since 2009 and an increase of four signed the year prior and seven in the previous quarter.
Keppel doesn't expect the mega-deal activity to return to decade-ago levels of robustness. "Some mega deals in the past year, especially those that are restructuring-related, are being broken up and returning to the market in the form of multiple smaller contracts with shorter durations," said Keppel. And the bellwether for large outsourcing deal affairs is likely to be the mega-relationship category of deals as contract durations continue to get shorter. The average deal length so far this year is 4.85 years, compared to 6.48 back in 2000.
"We expect mega-deals and mega-relationships will continue to make up an important part of the market," said Keppel. "We also expect more mega-deals to be awarded in less mature regions but mega-relationships to continue in mature and less mature regions."
Taking into account all outsourcing contracts worth $25 million or more, $13.1 billion in IT outsourcing business took place in the second quarter, up six percent year over year but down five percent over last quarter due to light contracting activity.
TPI is predicting a softer outsourcing market in the third quarter. "Historically, third quarters have been softer than other quarters, and current industry pipelines suggest this will hold true in 2012," Keppel said. "The fourth quarter will likely pick up, with some help from larger deals in the pipeline ready to go to award."
Meanwhile global outsourcing vendors continue to battle it out for business. American multi-national service providers have held 53% of total market share since 2010, down 10% from the 2007 to 2009 period.
European, Middle Eastern and Asian (non-Indian) vendors held 25% of the market since 2010, up three percent from the 2007-2009 period. While the Indian-heritage firms gained seven percent in market share, from 15% in the 2007 to 2009 period to 22% today.
Source: IT World
- BPO company Serco in talks with Agon for outsourcing deal (timesofindia.indiatimes.com)
- HCL inks $200 million deal with Disney (timesofindia.indiatimes.com)
- HCL bags Citibank BPO deal, to hire 800 (timesofindia.indiatimes.com)
- Indian IT services industry is at a crossroads: HCL Tech CEO (timesofindia.indiatimes.com)
- IT Outsourcing Predictions in 2012 (satpute.wordpress.com)
Yechte Consulting finalises a design proposal for an online Event Management Platform.
BIM overlay added to architects’ management document.
The RIBA Plan of Work is set to be overhauled for the first time in 50 years to include bim processes. The RIBA’s new Plan of Work, which organises the process of managing and designing buildings, is due to be issued in early 2013 and will also include a green overlay, as well as changes in procurement. “It’s a different way of doing things,” said Richard Brindley, executive director for membership and professional support at the RIBA. “The actual processes are still there, but how they fit together is very different.” Though still in its infancy, it is known that the new Plan of Work will identify stages by numbers rather than letters. “The bim overlay is just highlighting key aspects through the different stages that we should be looking for,” said John Orrell, member of the core review group, which is led by Dale Sinclair. So far the group has produced a draft bim-overlay document and will meet this week to finalise the changes, which will eventually feed into the new Plan of Work.
- CPD 2012 Module 3: Introduction to BIM (yechteconsulting.com)
- real BIM projects...yes they exist (archicadsa.wordpress.com)
- Architectural Technologist - BIM report for NewZealand (konstrukshon.com)
BIM enables the design team to work together to model every detail of a building.
Up until the 1980s, the main purpose of architectural models was as a presentational material, to show clients and stakeholders how a concept would look as a finished building. They were often made to a very high standard, but could be expensive, fragile and cumbersome. Drawing and modelling were also often laborious processes.
If major amendments were needed after technical information and costs had been fed into the detailed specification and tender package, you would literally have to “go back to the drawing board” and start again.
Advances in technology have allowed designers to cut the time they spend on models and drawings, and have also enabled greater accuracy of design. The introduction of more advanced computing into mainstream business during the 1980s saw computer aided design take off across a number of industries. CAD is used extensively to design everything from shampoo bottles to cars, trains and buildings. This has automated much of the redrawing and remodelling process.
Using bim allows all interfaces between the specified flooring and other parts of the building to be reconciled before installation. Here Karndean Design-flooring was installed in London’s Push Studios.
The introduction of 3D CAD, which was developed in the 1980s but became more mainstream in the 1990s and 2000s, further increased the quality of design. With 3D CAD there is no need for the designer to imagine how 2D objects fit together, therefore reducing errors.
Advantages of BIM
BIM offers benefits for everyone involved in construction projects, including clients, designers, contractors, suppliers and facilities managers.
The government has recognised this, and adopted a strategy that all projects worth more than £5 million will be managed using BIM by 2016. This is another good reason for companies to adopt BIM.
Early design clarity
Late design changes can result in extra cost and delays to a project. With BIM, architectural models, structural models and MEP models can be brought together to carry out virtual testing and highlight conflicting design decisions.
These errors can then be rectified very early in the process. For example, if an architect specifies a window and a structural engineer specifies a beam that conflict, this will be picked up immediately.
Likewise, if a specification does change, BIM can be used to ensure that no new clashes are introduced. To give an example, if a 20mm hardwood floor covering is specified and the client demands a re-specification to 3mm LVT Designflooring, the BIM software will alert the specifier to the conflict with door frame heights and door sizes.
BIM allows the creation of a building virtually before it is built, so virtual testing can be done early on in the design process to ensure that standards are met.
Aspects of the design that can be tested include:
- Consumption of energy
- Carbon emission rates
By visualising daylighting, for example, the project team can ensure that skylights are installed at the correct angle and the right size to let in sufficient light. This avoids the need to replace a non-conforming skylight at the end of a build, saving money and time.
Architectural models have come a long way since the pre-CAD era of wood, cardboard and glue.
By using 3D studio maps, details can be highlighted and highly detailed planning undertaken, not just by the project team but by the client and end user. BIM visualisations can be used in a number of ways:
- Simulating pedestrian use
Pedestrian simulations can be included to view the density of use and identify bottlenecks, flow rates, queue sizes, journey times and so on. Such information has been used to alter timetables for schools and determine optimum numbers of students.
- Close design analysis
3D parametric models can be used to identify the specifics of products used, for example, in walls and floors, as BIM objects can include a variety of details.
- Fit-out design
Room loading can also be completed early on to ensure accessibility standards are met with the introduction of furniture, for example under the Disability Discrimination Act.
- Managing time & budget
Time and cost are often referred to as the fourth and fifth dimensions of BIM.
By incorporating all of the elements of a construction project, including the time scale, BIM can establish sequencing early on in a project and flag up whether there are any potential clashes in the programme. This can avert delays and, by consequence, save additional costs. For example, when time is added to the model, detailed visualisations of the following can take place:
- What is being done at any given moment
- Activities on a certain date
- What plant is needed
- What hoardings are needed
- Impact on the local area
At present, the major software packages do not automate this process and major revisions still need reworking, but it is a good start.
Cost information can then be added to form the 5D model, including:
Rates can then be added, to better understand the cost of the build at a micro scale.
BIM Academy case study
The BIM Academy cites a real-life example from the US.
The use of BIM on a recent project highlighted a structural beam conflict with a sprinkler pipe, enabling it to be immediately rectified.
If it had not been dealt with at an early stage, the conflict would have become apparent during construction, after all the structural supports had been set. In other words, it would have cost $4,664 per clash, which, as there would have been 10 instances per storey, would have risen to $46,640. And as it was a 15-storey building, the total cost would have been $699,600.
It would have incurred the following costs per clash:
- $3,800 for replacing materials
- $205 for removing the beam with a crane
- $195 for installing the new beam with a crane
- $464 for cutting the hole for the pipe in the beam
What is BIM?
BIM is the next stage in developing architectural models and integrating them with the whole construction process. It is not a single piece of software, but an integrated digital process providing coordinated, reliable information about any given project. In effect, it gives meaning to what are, within CAD, just shapes.
Source: © 2011 Tekla Corporation
A whole model view of a project using BIMsight software by Tekla.
Though the most visible face may be the geometric model, BIM is essentially a database of information from many different compatible sources, including 3D CAD, which can be drawn on by all those involved in the construction, maintenance and eventual demolition of a building. This information may come from many sources, including:
- Revit AutoCAD
- National Building Specification’s (NBS) free online National Bim Library, which includes generic bim objects for systems and products such as walls, windows, doors, founda-tions, cladding and roofs. This will be launched at Ecobuild. BIM objects can include installation instructions and guidance on maintenance.
- Plug-ins for factors such as environmental conditions, people flow, project management and life-cycle assessment.
- The BIM Academy, a partnership between Ryder Architecture and Northum-bria University, describes the process as the “digital representation of physical and functional characteristics of a facility, creating a shared knowledge resource for information about it, [and] forming a reliable basis for decisions during its life cycle”.
- How to Implement BIM into the Practice of Architecture is New Training Program on LearnVirtual (seattlepi.com)
- Open BIM Program (archicadsa.wordpress.com)
- A More or Less Optimistic Update on BIM: older article featured on Isicad.net (bausk.wordpress.com)
- Building Information Modeling (newdayunderwriting.wordpress.com)
- Landscape architects: is Building Information Modelling (BIM) improving your business? (ewtrial.wordpress.com)
- Welcome toThe BIM Advocate! (thebimadvocate.wordpress.com)
The ability to centralize capital project information in a cloud-based management system can be a huge benefit in the form of cost and time savings. Such technology platforms can provide a crucial advantage by allowing project teams to devote more time, energy, and focus to the task at hand.
ADAMS Management Services, www.adamspmc.com, Rome, Ga., is a program-management firm with expertise in facility planning, design, and construction for health-related facilities. The company was looking for a comprehensive software solution that incorporated not only the construction aspect, but project initiation and organization, process management and optimization, budget development and control, cash-flow analysis, and project documentation, among others.
e-Builder’s flagship offering, e-Builder Enterprise, can help owners improve execution on capital projects through cost, document, report, and schedule modules, among others, which combine to provide a centralized solution for managing information.
A key consideration in ADAMS’ technology implementation and adoption, according to Jeff Christmann, COO, ADAMS, was to find a centralized solution providing “one hub to access information.” Christmann says, “(e-Builder’s) Executive Reporting features allow us to pull project status information for complete oversight of our projects and make it easier for us to tailor information to fit our clients’ needs.”
Additionally, cloud-based solutions generally equate to reduced costs and faster deployment time. When it comes to managing project data in an efficient way, Web-based technology solutions can be the answer to increasing project visibility and ultimately, ensuring the end product is a success.
This week, ADAMS announced it has adopted e-Builder, www.e-builder.net, Fort Lauderdale, Fla., a provider of capital project and program-management software, to enhance its consulting services. According to the companies, e-Builder will help ADAMS provide “more efficient project oversight” of its clients’ programs.
- Cloud Computing and Project and Portfolio Management (clean-clouds.com)
- Project Management in the Cloud (stanyanakiev.com)
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- OpenStack Adds Private Cloud-Building Features (informationweek.com)
The benefits gained from Building Information Modelling (BIM) correspond to the quality and depth of information in the model. Dr Stephen Hamil explains how BIM is not just 3D CAD and how master specification systems make a huge contribution to the 'I' in BIM.
A CAD example
When analysing the benefits of Building Information Modelling it is often worth taking a step back and looking at a very simple example:
Consider an external wall (as illustrated in Figures 1 and 2). Within the latest CAD systems, walls are now three dimensional objects. The wall object is then broken down into the key products that make up its structure. For example, render, external brick leaf, cavity insulation, internal block leaf and plasterboard dry lining. Each of these is an object itself; this allows the creation of automatic schedules and quantity take-off. For example, within a click of a button, the number of bricks or the sheets of plasterboard within the building can be calculated.
Figure 1 – An 'out of the box' wall in 3D CAD
Figure 2 – Products that make up this wall's structure in 3D CAD
In addition to automatically generated quantities, 3D CAD models from different disciplines can be combined for clash detection. Users can add quite complex constraints so that the objects interact as expected. And, of course, spectacular visualisations can be created. However, can the full benefits of BIM be realised in these present 3D CAD models?
Consider the same external wall in a master specification system, for example, NBS Domestic Specification, our product for domestic new build, refurbishment and alteration work. Figure 3 displays the template description of the wall as a system in NBS Domestic Specification.
Figure 3 – External wall description in NBS Domestic Specification
Additional key products
Immediately, it is apparent that in addition to the key materials such as bricks, blocks and insulation, there are a number of other products that are not described as objects in the 3D CAD model. The external wall in NBS describes wall ties, cavity trays, weep holes, and lintels, and it's also evident that key products vary above and below the damp proof course.
Below this system description of the external wall, each of the products that make up the wall may be defined in greater detail, as for blocks in Figure 4.
Figure 4 – Specification clause for one of the many products that make up the wall
In the vast majority of cases this detailed information would not be in your 3D CAD model. For example, what standard a particular product must comply to or what its compressive strength and thermal conductivity is.
The question arises: "Will this information one day be in CAD?"'. If so, the follow-up question is: "Who will maintain its currency?".
A true BIM must contain all of the information required to build and maintain the building. The expected standards for workmanship are a crucial part of this. Figure 5 displays a sample of the level of detail required to specify workmanship for our external wall.
Figure 5 – Specification clause to ensure high quality workmanship
Performance requirements and their verification
The final component of a true BIM that this article considers is performance requirements - crucial in many designs. In modern procurement the designers quite often produce outline schemes and describe the included systems in terms of their performance requirements.
For instance, our external wall will not be specified in terms of the materials it is made from, but in terms of its structural, acoustic, thermal or aesthetic performance. However, listing performance requirements is only half of the picture, how these requirements are to be verified once the wall is complete is also essential. Master specification systems world-wide are increasingly providing and maintaining this content. This information must now be linked to the corresponding objects in 3D CAD systems.
It is clear that the use of 3D object-based CAD packages provide huge benefits over traditional 2D CAD. However, to really appreciate the true benefits of BIM, the information in 3D CAD models must be coordinated with information in master specification systems.
Figure 6 is an illustration from the very first edition of NBS in 1973. It shows the information on the drawing coordinated with the specification, quantities, standards, regulations and manufacturer information.
Figure 6 – Co-ordinated project information
Technology is now allowing us to accurately and more efficiently coordinate this information. This process has adopted the buzz word 'BIM'. The 3D CAD example that has been considered in this article is a simple wall, but multiply this across all of the systems and products that make up a building and its surrounding landscape and it is clear that integrating CAD and specification information is a vital step to truly adopting BIM.
When you say you have adopted BIM, pause for a moment. Ask yourself have you really adopted BIM or are you currently just using 3D CAD?
Source: Dr. Stephen Hamil - NBS
Yechte Consulting finalises its bespoke CRM for enterprises.
Building information modelling could be applied to save time and money on every government project within five years. But few people are using it and many don’t even know it exists. Here are seven key ways BIM will affect you and your work.
Last week, chief construction adviser Paul Morrell said that in five years time, practically every single government construction project will be built using 3D building information modelling (BIM). We already knew that it was likely to become mandatory for projects over £50m, but Morrell wants it extended down to much smaller jobs. BIM will therefore ripple through the supply chain right down to SME minnows. But what is BIM? Rather than imagining a software package, it’s better to think of it as a new way to use existing software to build up a detailed 3D model of a project with common sets of data that everyone working on it can see. If used correctly, it should save time and money by preventing clashes between different sets of designs. It should also give facilities managers more information about how to maintain the building once complete. Yet many in the industry are understandably concerned about the costs and what, in practice, the roll out wil mean for them.
How much will BIM cost?
As BIM is a new way of working rather than a software package, the bulk of the costs are likely to come from training. Chris Gilmore, design and marketing director at BAM Construct, says that “to implement one seat with BIM - hardware, software and training - is around £10,000”. But he adds that there will need to be someone to coordinate the transition to BIM. “On top is the cost of a staff member - say [a] BIM co-ordinator - which will allow the model to be built by the contractor,” he says. Overall BAM is spending £700,000 this year preparing for BIM, training 70 employees, and they will have to continue to invest millions more up to 2015.
It’s almost impossible to estimate how many people will need training and to what extent, says Richard Brinley, group director of membership and professional groups at RIBA, but it will be everyone involved in the design, development, and the later operation of the building. New architecture and engineering graduates are trained to use BIM from day one, but others are in “varying stages of training,” says Brinley. “It’s fair to say that there’s very few people using BIM fully”. A survey by RIBA of 400 people from across the industry last September and October found that only 13% were using BIM, and 43% were unaware of the method.
How much could BIM save?
The system’s advocates think that the industry will notice a difference in months, not years. Rachel Done, deputy director at the UK Contractor’s Group, thinks that within weeks users will see “earlier establishment of more accurate costs for projects” and “better exchange of higher quality information between all parties”. A trial project run in 2006 on Costain’s £30m PalaceXchange mixed-used development in Enfield, north London, showed good returns but not double digit percentage savings. The project spent £10,000 on a consultant to implement BIM plus 24 weeks of training and £6,000 on educating subcontractors. Capita Symonds estimates that £500,000 was saved, under 2% of construction costs, as a result of not having to do remedial works, and it claims about “man months” of work were saved largely because of time saved preparing information for issue.
Could it affect how buildings operate?
Because BIM effectively collates all the different information the supply chain has about a building, this should make it much easier for the facilities manager to service it after it is built. “You can treat a building in the same way as a car or aeroplane [by running regular MOTs when needed] rather than just wandering around waiting for things to fail,” says Joe Martin, a member of the RICS BIM group. A complete model of the building before work has even started allows full performance analysis of how it will operate even before construction starts, says David Philp, director of technical services at Balfour Beatty.
What does it mean for QSs?
BIM could mean less work for QSs in the most traditional sense, because it can automate some tasks, such as taking quantities and schedules off drawings. But consultants will still be essential to check these sums, argues Martin. “If you want your measurements to come out of it [BIM] you’re going to need someone intelligent to interpret these numbers to make sure they make sense,” he says. However, preliminary results from a RICS survey into BIM show that “most [QSs] don’t really know what [BIM] is.”
What does it mean for contractors?
Philp says that BIM helps prevent the design brief constantly changing, meaning that “there’s better understanding throughout the supply chain”. It may disproportionately benefit bigger contractors, like Balfour Beatty, as Philp says: “The big savings are when it’s a PFI building”. However, contractors have so far had one of the lowest rates of BIM uptake in the sector: a McGraw Hill report published last year found that just 11% were frequent users, compared with 60% of the rest of the supply chain. Done says this is to do with the differing roles within the supply chain: “Consultants have the option of choosing which software systems carry out their primary design, [whereas] contractors are not frequently in charge of which design system is used.”
Does it work for refurbishment?
The jury’s out. David Mathieson, head of public sector at Turner & Townsend, argues that with some refit work the costs of surveying the building would be too high to justify using the system. “On a fit-out or refit job, the cost of getting it on the system might be very high,” he said, adding that this lighter work was typical of most government accommodation projects. “I don’t think a blanket mandate would be appropriate.” However, Philp disagrees. “There are really no jobs that you wouldn’t do it on,” he says, adding that it is even cost effective to build a BIM model of a building using laser scanning, which can then be used to improve energy efficiency and carbon output - even if no actual building work takes place. Morrell has said BIM won’t apply to projects where it won’t save money, but when asked what these might be, he said he was “struggling to think of obvious examples”.
What does it mean for architects?
The impact on how architects work will be “dramatic”, according to Brinley. “It will completely change the way you start off the design process. There will be much more up front work to be done building the model and testing it works.” This will save money and time in the long run because the actual process of construction will then be far easier. Architects will have to work much more closely with the entire design team, including facilities managers, to create the BIM model before construction. Brinley hopes that this won’t stifle imaginative design - in fact, it could do the opposite: “Because you can test things early on, clients and contractors will take risks because you prove it will work beforehand,” he argues.
Construction chief Paul Morrell dismissed other ’unambitious’ plans at the London KBB conference.
The use of Building Information Modelling will be made mandatory on virtually all government projects within five years, according to Paul Morrell, the government’s chief construction adviser.
A report by the Innovation and Growth Team last year, which recommended BIM being used on projects over £50m, was dismissed by Morrell as “unambitious”.
He said the only exceptions would be when using BIM made the project more expensive. He said: “Within five years, all government procurement will be within 3D collaborative BIM, with specific exceptions where the cost might exceed the benefit, although I have to say I’m struggling to think of obvious examples of that.”
BIM requires firms to conform to a set of standard processes and 3D modelling of projects. A formal announcement on the five-year roll-out of BIM will be made by the government in June.
The move to widen the net below £50m projects to catch all firms working for the government marks a radical departure from previous government thinking.
At the KBB conference in London on Tuesday, run by Building’s parent company UBM, Morrell said: “There’s no lower limit.”
He said: “It will lead to integration, which is our biggest problem. I’m talking to the private sector and asking: ’If this works for us, will this work for you?’”
He said he envisaged introducing BIM progressively, with the bar raised at yearly intervals, so a certain standard will be required at year one, a higher standard the following year, and so on - until, within five years, all government procurement will be within 3D collaborative BIM.
Gary Rawlings, a partner at architecture practice Make, said that the firm’s experience with BIM had generally been “positive” and that there was little cost to adopting it.
“There’s a reasonably shallow learning curve and the cost of it isn’t particularly burdensome, and we’re running it on exactly the machines that we always use,” he said.
But David Mathieson, head of public sector at Turner & Townsend, argued that applying BIM to all public sector work would not be appropriate because on some refit work the costs of surveying the building would be too high to justify using the system.
“On a fit-out or refit job, the cost of getting it on the system might be very high,” and added that this lighter work was typical of most government accommodation projects.