Archive for October, 2009

Global recession hits India’s baby business

October 21st, 2009

The global economic downturn has hit businesses around the world, from big banks to local shops, leaving millions in fear of losing their livelihoods and desperate to cut down on spending.

But among the recession’s more unlikely victims have been infertile Western couples wanting children and prepared to travel abroad to use Indian surrogate mothers as a cheaper alternative to fertility clinics back home.

“There are so many couples who back out, who have enquired, who would say that we would like to come, but then say, ‘Doctor, we are worried about our jobs right now’,” said Nayna Patel, who runs a clinic in western Gujarat state.

“They say, ‘Without a job, what good are we going to do to the child that is going to come with us?’,” she told AFP TV.

The situation is a turnaround for Patel, who has seen business boom at her Akanksha clinic in the town of Anand in recent years.

Despite the recession, some wealthy foreigners still travel thousands of miles for the chance of a baby, finding no shortage of poor, local women prepared to allow them to use their wombs.

Upstairs from the clinic’s examination rooms, pregnant Indian women in colourful saris lie on dozens of beds, holding their swollen bellies as they chat or watch television under whirring ceiling fans.

One woman explained that she had no option, as her husband died and she had no money to feed her own children. Another said she miscarried recently but was hopeful of carrying another surrogacy full term.

Opina, 26, opened a box to reveal a gold locket with two tiny photos of her newborn twins. Soon, the trinket, a gift from the parents, will be the only reminder of the babies she is about to give away.

“I feel very happy because now one couple has their own children, and I gave them their children,” she said. But with watery eyes, she added: “On the other hand, I also feel very sad, because I was the one who delivered them.”

Surrogacy is not illegal in India, but there are moves to tighten laws to define the responsibilities and duties of a surrogate mother and those seeking her services, as well as tighter regulation of medical facilities.

The baby business, one of the most controversial areas of India’s “outsourcing” and medical tourism boom, still carries a stigma in the deeply conservative, family-orientated society.

Opina’s husband supported her but she faced opposition from her grandparents and has not told her friends.

Living on just $50 a month, these women can boost their earnings dramatically to $7,500 for a single pregnancy, more than 10 years’ earnings.

For now, Opina rocks one of the twins back to sleep, and, like any mother concerned over a newborn, she anxiously watches his every move, patting away hiccups.

But the twins were conceived using eggs and sperm from a Canadian couple and their biological mother sits close by, ready to take them home when they are about a month old.

Christine, in her mid-30s, and her husband, who did not want their surnames used, turned to surrogacy and India after several failed attempts at expensive in-vitro fertilisation (IVF) in Canada.

Bouncing one of her new children on a knee as Opina looks on, Christine said that surrogacy needs to be considered more as an option “instead of continual repeat visits and an encouragement for IVF cycles to continue”.

Another Canadian couple with newborn twins have different reasons for choosing surrogacy. Shyamani already has a seven-year-old daughter but her husband is from a family of 11 and they want more children.

“We always wanted to have a lot of children in our family. We weren’t satisfied with just one child and we wanted our daughter to have siblings,” she said. Surrogacy can work well for both sides, she added.

“They have lots of difficulties, they have lots of needs and they’ll be able to fulfill their dreams and needs in the same way we do ours. So, it’s kind of a win-win situation,” she explained.

Patel acknowledged that the motivation for most Indian women is financial and is confident that demand will pick up again, as the first seeds of recovery are seen in Western economies.

Opina said: “It is good work because she (Christine) had no child. I had no money and now she has child and I have money. “My husband feels it’s good because it is like a type of gift from God. It is the first time I have done surrogacy. I did it so we can buy our own home but I would do it again, so we can have money for our own child and give him a bright future.”

Source : http://www.thenews.com.pk/daily_detail.asp?id=204249

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Outsourcing to server specialists ‘has green benefits’

October 21st, 2009

Firms can help reduce their environmental impacts by outsourcing their IT support functions to a server specialist, it has been suggested.

According to Kateri Callahan, president of the Alliance to Save Energy, data centre energy consumption is at an all-time high, meaning it is only logical to think about how to best use IT resources.

She claimed that an unnecessary amount of data servers are plugged in 24/7 in an age when power-saving tools are available to businesses.

With the political agenda encouraging the widespread use of clean technologies, she suggested that the IT sector may soon be under greater scrutiny for its power consumption.

“We’ll want to stay ahead of the curve and make smart, energy-efficient changes where we can,” Ms Callahan added.

Last week, advertising advice site Marketing Donut claimed that choosing a reliable shared hosting or web hosting provider is crucial to the success of any online business.

Source : http://www.globalgold.co.uk/web-hosting-news/managed-hosting-news/outsourcing-to-server-specialists-has-green-benefits-19417357.html

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“Outsourcing” IT to End Users: Is There an App for That?

October 21st, 2009

Forget the economic downturn—Apple Computer is hotter than hot.

In its fourth-quarter earnings report released this week, Apple, with its Mac computers and iPhones, reported fourth-quarter sales of almost $10 billion, up almost 25% from the year ago quarter. For the fiscal year, the company reported earnings of more than $36 billion, up 12% from last year.

What does this mean to enterprises? Right now, on the surface, not much. But the long-term implications may be enormous.

Unlike most other large vendors in the IT space, Apple’s success is not built on enterprise IT adoption, but on individual sales. Apple is very much a consumer device and computer provider. However, the runaway success of such mobile devices mean companies need to start making choices in terms of what direction they want to take IT.

There’s been growing talk, in fact, of IT departments getting out of the business of end-user computing and leaving end users to make their own decisions, even to the point of bringing their own hardware into the workplace. Gartner analysts David Mitchell Smith and Tom Austin said as much at the recent IT Symposium, said it’s high time IT was outsourced—to the users.

IT has been expending time and energy trying to hold off the tsunami for years—attempting to lock down systems and regulate the types of devices that are used to get their organizations’ work done.

You can see the productivity benefits IT would see as a result of this shift of responsibilities. IT can focus on back-end integration work, service-oriented architecture and even cloud computing.

But there are organizational benefits as well. I like the way Bob Lewis put it in a post last year: Leave it up to the end users to supply their own computers on the job, and their productivity would flourish. Users need to be unleashed to get their jobs done with the tools they see fit.

So why not let employees do their thing with their own PCs and smartphones? As Lewis put it, “no corporate-owned PCs at all. Let employees buy their own — whatever they think they need to do their jobs … Only central IT remains. Employees take over ownership of the periphery, including responsibility for their own PC support.”

IT is more productive, and employees are more productive; what’s not to like? We already know the self-service ethic is a winning approach for many companies. Insurers have seen tremendous gains thanks to self-service portals for agents and consumers. Self-service portals for employees are also gaining traction in the industry. Why not self-service IT?

We already see plenty of instances of employees using their own mobile devices for work-related connectivity. And, countless users log in from their homes to check into the intranet or for updated communications. Gartner even suggests that it would be far cheaper to simply provide employees a stipend to buy their own machines rather than attempt corporate-level purchases.

Of course, there are data security issues that need to be worked through—there will need to be more thorough date encryption strategies, for example. Lewis suggests that virtualization—having end users accessing virtual environments versus actual production environments—may be the way to secure back-end systems a little better. This is especially an acute issue for insurance carriers. But at the same time, there is a great opportunity for mobile workers, such as field claims adjusters.

Source : http://www.insurancenetworking.com/blogs/insurance_technology_outsourcing_IT_end_users_Apple-23422-1.html

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Catalent Receives Outsourcing Award

October 21st, 2009

Catalent Pharma Solutions, a leading provider of outsourced clinical and commercial packaging services to the global pharmaceutical and biotechnology industry, has won for the second year in a row “The Best Contract Manufacturing Project” award at this year`s European Outsourcing Awards ceremony. Catalent was recognized for supporting GlaxoSmithKline`s efforts to meet global demand for a key antiviral drug recommended to treat H1N1 influenza.

“As part of GlaxoSmithKline’s response to the global pandemic, it was necessary to rapidly expand manufacture and supply of Relenza, a major antiviral product,” said Jim Brown, Director, External Supply Pharmaceuticals Europe for GSK. “While it was possible to rapidly increase manufacturing capacity internally within GSK sites, there was insufficient capacity for packaging to meet worldwide demand. Catalent was able to respond rapidly to this requirement, freeing up equipment, increasing shift patterns and providing a very effective packaging operation to secure early availability of this critical medicine.”

“We were very pleased to partner with GlaxoSmithKline in helping them meet increasing demand for their product, and we look forward to working with them in the future,” said Steve Facer, Site General Manager of Catalent`s Packaging
Services facility in Corby, England. “We are also delighted to once again win this prestigious award.”

Launched in 2005, the European Outsourcing Awards recognize significant developments in contract services and rewards successful companies for their outstanding contributions and achievements throughout the year. The awards were created to celebrate and recognize excellence in R&D, marketing, business and technology across the pharmaceutical industry.

About Catalent

Headquartered in Somerset, New Jersey, Catalent Pharma Solutions is a leading provider of advanced dose form and packaging technologies, and development, manufacturing and packaging services for pharmaceutical, biotechnology and consumer healthcare companies in nearly 100 countries. Catalent applies its local market expertise and technical creativity to advance treatments, change
markets and enhance patient outcomes. Catalent employs approximately 9,500 people at 30 facilities worldwide and in fiscal 2009 generated more than $1.6 billion in annual revenue. For more information, visit www.catalent.com.

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HP, Sony Ericsson Ink Five Year Technology Outsourcing Services Agreement

October 21st, 2009

HP Enterprise Services has announced that Sony Ericsson Mobile Communications has signed a five-year technology outsourcing services agreement designed to reduce costs and further increase flexibility with a standardized technology environment.

HP Enterprise Services is a recently announced brand name for Electronic Data Systems. The agreement calls on HP to provide infrastructure management services that include Sony Ericsson’s (News – Alert) global server and storage environments. In addition, HP will also continue to provide global service desk for employee technology and application support.

According to a press release, HP is also expected to continue to host and operate Sony Ericsson’s (News – Alert) SAP enterprise landscape and databases. HP said that it’ll deliver these services from a combination of Sony Ericsson locations and HP global delivery centers.

This latest contract builds upon HP’s long-term relationship with Sony Ericsson. The company also provides hardware, software and business process outsourcing services to Sony Ericsson under separate agreements.

Sony Ericsson is a joint venture established on Oct. 1, 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones.

“Our long relationship with Sony Ericsson, deep communications industry expertise and broad scale serve as a foundation to deliver solutions that help Sony Ericsson achieve faster time to market for new products and services and support its global growth,” said Bill Thomas, senior vice president and general manager for Europe, Middle East and Africa region at HP Enterprise Services, in the release.

Earlier this month, HP signed a seven-year technology and services contract with Vale. The company said the contract will help the mining company headquartered in Brazil to transform its technology infrastructure and achieve its strategic growth and cost-containment objectives.

Source : http://communication-solutions.tmcnet.com/topics/business-continuity/articles/67029-hp-sony-ericsson-ink-five-year-technology-outsourcing.htm

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Telco-to-Telco Deals Fuel Record Third Quarter for Outsourcing

October 21st, 2009

TPI, the largest sourcing data and advisory firm in the world and a unit of Information Services Group, Inc. (ISG) (Nasdaq: III, IIIIU, IIIIW), an industry-leading information-based services company, announced today that the global outsourcing market experienced its strongest third quarter on record but that results would have been substantially more muted without a handful of large contracts between
telecommunications companies.

The 3Q09 Global TPI Index, which tracks commercial contracts valued at $25 million or more, recorded 139 transactions during the just-completed quarter with a total contract value (TCV) of $24.7 billion. It was the highest
quarterly TCV since the fourth quarter of 2008 and represented an increase of 21 percent over second quarter 2009 and 40 percent over third quarter 2008.

However, excluding five transactions in which telecommunications carriers outsourced network operations to telecommunications service providers, TCV reached only $17.2 billion, roughly in line with the slower pace of the past
four quarters. The market’s year-to-date TCV of $62.6 billion remains 10 percent below the same point last year with the Telco-to-Telco contracts and 23 percent lower when they are excluded.

A brighter picture could be seen in mega-deals, those contracts worth $1 billion or more. Mega-deal TCV reached $13.7 billion in the third quarter, the highest total since the fourth quarter of 2002. Excluding Telco-to-Telco contracts, four mega-deals were signed, the same amount in the last three quarters combined. The 11 mega-deals signed year-to-date falls within range of recent years, but their more than $19 billion of TCV is the highest total since 2005.

“The outsourcing market’s record third quarter wouldn’t have been possible without a small number of significant Telco-to-Telco contracts,” said Mark Mayo, Partner and President, TPI Global Resource Management. “Nonetheless,
even without those deals, the TPI Index showed solid sequential improvement in TCV, steady demand for IT outsourcing, considerable growth in Asia Pacific and
the best showing for mega-deals in more than a year.”

The Global TPI Index provides a quarterly snapshot of the sourcing industry for clients, service providers, analysts and the media. Now in its 28th consecutive quarter, it is the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry
adoption, geographic prevalence and service provider metrics.

OVERVIEW
Until recently, Network Operations Outsourcing, a unique scope of work performed by a small sub-set of the industry, has proven more popular outside the U.S., particularly in Western Europe and Asia Pacific. But in the third quarter of 2009, it accounted for $7.5 billion of TCV — more than 30 percent of the broader market’s value.

The impact of that activity was isolated in the IT outsourcing (ITO) segment. The TCV of the 94 ITO contracts awarded in the quarter reached $20.1 billion,
a 14 percent jump from the prior quarter and the highest total since the fourth quarter of 2003. Year-to-date, ITO TCV is up 4.5 percent from the same point a year ago. When Telco-to-Telco contracts are excluded, however, TCV was flat with the second quarter and is down 12.6 percent year-to-date.

Demand for business process outsourcing (BPO) remained lackluster in the third quarter as companies found it easier to pursue ITO contracts in the current economic climate than pursue large transformations of their Finance &
Accounting or Human Resources functions or the Facilities Management and Financial Services Outsourcing deals that were popular last year. Year-to-date, BPO TCV is down 45 percent compared to the same point in 2008 and the number of contracts is off 25 percent.

REGIONS AND INDUSTRIES
The 3Q09 Global TPI Index showed significant differences in outsourcing market performance by region of the world. Asia Pacific, which is solidifying its position in the global market, awarded 24 contracts valued at $6.4 billion, a second consecutive strong quarter for TCV in the region and the third out of the last four in which it topped $5 billion. Year-to-date, the number of contracts in Asia Pacific has increased about 12 percent while TCV has grown 120 percent, 64 percent without Telco-to-Telco contracts.

In the Americas, 47 contracts valued at almost $12 billion were awarded in the third quarter, up sequentially more than 100 percent on the strength of Telco-to-Telco activity. The Americas has not seen as strong a quarter for TCV since the fourth quarter of 2008. So far this year, $23.8 billion in TCV has been awarded in the region, the best since 2006, but without the Telco-to-Telco deals, it is down 8.5 percent.

In Europe, the Middle East and Africa (EMEA), 68 contracts valued at $6.5 billion were signed in the third quarter, up modestly by number but down about 4 percent from the same quarter a year ago. Year-to-date, TCV in the region is
down more than 40 percent from 2008, with or without Telco-to-Telco contracts.

The 3Q09 Global TPI Index also found substantial differences in the adoption of outsourcing by certain industry categories. Verticals demonstrating increased momentum so far in 2009 include Telecommunications, Diversified Financials, Transportation and Utilities. Outsourcing activity in the Healthcare Equipment and Services has also quickened as recessionary pressure
as well as the current political focus on Healthcare reform in the U.S. has driven a 27 percent rise in contract awards year-to-date.

OUTLOOK
“The third quarter showed an unprecedented surge in Telco-to-Telco contracts and continued stabilization in the rest of the market, and this occurred in a quarter that is seldom the best quarter of any given year,” Mayo said. “Our
day-to-day observations suggest that pent-up demand underlies a market that has been deferring decisions in an economic recession. Based on this, we think the market will begin to turn upward over the next six to nine months.”

To learn more and view presentation slides from the 3Q09 Global TPI Index conference call, please visit http://www.tpi.net/knowledgecenter/tpiindex/.

About TPI
TPI, a unit of Information Services Group, Inc. (ISG) (Nasdaq: III, IIIIU, IIIIW), is the founder and innovator of the sourcing advisory industry, and the largest sourcing data and advisory firm in the world. We are expert at a
broad range of business support functions and related research methodologies. Utilizing deep functional domain expertise and extensive practical experience, our accomplished industry experts collaborate with organizations to help them advance their business operations through the best combination of business
process improvement, shared services, outsourcing and offshoring. In addition, TPI Momentum, a business unit of TPI, provides information and insights to outsourcing and offshoring service providers to help them provide enhanced
services to their sourcing clients. In 2009, TPI is celebrating its 20th anniversary. For additional information, visit www.tpi.net.

About Information Services Group, Inc.
Information Services Group, Inc. (ISG) (Nasdaq: III, IIIIU, IIIIW) was founded in 2006 to build an industry-leading, high-growth, information-based services company by acquiring and growing businesses in advisory, data, business and media information services. In November 2007, the company acquired TPI, the largest independent sourcing advisory firm in the world. Based in Stamford, Conn., ISG has a proven leadership team with global experience in
information-based services and a track record of creating significant value for shareowners, clients and employees. For more, visit www.informationsg.com.

Source : http://www.reuters.com/article/pressRelease/idUS177048+20-Oct-2009+PRN20091020

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6 Indian cities among 8 top global destinations for outsourcing

October 21st, 2009

Bangalore, Delhi NCR, Mumbai, Chennai, Hyderabad, Pune – are among the eight top global destinations for outsourcing of services, according to a new survey released Tuesday.

The other two are the Philippines’ Manila NCR and Ireland’s Dublin city, according to the 4th Global Services-Tholons Top 50 emerging outsourcing destinations survey, jointly done by Global Services from CyberMedia and Tholons, a services globalisation advisory firm.

The Next 10 Outsourcing Destinations considered to be ‘Top 10 Aspirants’ from a total of 68 destinations is dominated by China’s Shanghai, Beijing and Shenzhen, Vietnam’s Ho Chi Minh City and Hanoi, Poland’s Krakow, Argentina’s Buenos Aires, Egypt’s Cairo and Brazil’s Sao Paulo.

Avinash Vashistha, CEO of Tholons says: “For a CIO today, finding a Centre of Excellence is more than just lower cost. It must consider location, risk mitigation for business, cultural affinity and scalability of the skilled workforce.”

“The service providers need to think through their offerings so as to differentiate as the competitive advantage is rapidly vanishing due to cut throat competition and market saturation,” adds Vashishtha.

India continues to top the list with revenues of $40 billion in IT-BPO export services in 2008. Indian IT-BPO export services posted 35 percent year on year growth rates in the last five years.

nterestingly India’s FDI inflows posted the largest increase globally at 46 percent in 2008 — from $25 billion to $46 billion even as global FDI flows decreased from $1.9 trillion to $1.7 trillion and several developing economies struggled to acquire investments from client nations.

Compared to the previous year’s rankings, this year’s study reveals minimal shifts in rankings because of the overall slowdown in the pace of outsourcing activity in the face of global recession.

Seven Chinese cities – Shanghai, Beijing, Shenzhen, Dalian, Guangzhou, Chengdu and Tianjin – and six Indian cities – Chandigarh, Kolkata, Coimbatore, Jaipur, Bhubaneswar, Thiruvananthapuram – make it to the list of next 60 outsourcing destinations.

The study lists India, Philippines, Ireland, China and Brazil among Top 5 Offshore Nations “with a high degree of maturity and record of successful delivery capabilities.”

Canada, Russia, Mexico, Vietnam, Poland are listed as Top 5 Emerging Nations. The difference between the Top 5 and the Next 5 offshore nations is most pronounced in the service level maturity, the study said.

Source : http://economictimes.indiatimes.com/infotech/ites/6-Indian-cities-among-8-top-global-destinations-for-outsourcing/articleshow/5142714.cms

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