Archive for December, 2009

IT firms embrace safety measures for staff

December 26th, 2009

With the political crisis over the Centre’s announcement of creating a separate Telangana state casting its effect on the state capital, two business process outsourcing (BPO) companies have moved their employees to nearby hotels, even as other information technology (IT) companies have beefed security.

The companies have adopted such measures for the safety of their employees and also to ensure business continuity of their international clients.

For instance, ADP Private Ltd, a provider of software development services which has its operations in the heart of the city, had moved its staff to an expensive hotel on December 23, the same day when Home Minister P Chidamabarm made his second statement, calling for wider consultations on Telangana.

The company has over 3,000 employees on its rolls across its Hyderabad and Pune centres. The staff stayed at the hotel and reported to the office the next day (December 24), which saw a violent outburst in the city. The hotel stay was necessitated after the office withdrew its employee transportation services in view of the 48-hour bandh call given by the Telangana Rashtra Samithi (TRS) protesting the home minister’s statement.

When contacted, ADP Private Ltd Managing Director Shakti Sagar said: “We moved them to the hotel to ensure security of employees first and for business continuity. Anyway, it is voluntary for the employees to stay at the hotel or not.”

Initially, the company planned to keep the employees in the hotel for two days. However, with the TRS relaxing the bandh in view of Christmas, the employees were back to their homes.

The shift for those doing the backend work for UK companies begins at 1 pm and for those serving the US clients start at 7.30 pm. Customer service, phone banking and other similar operations need 24X7 operations.

“With pro-Telangana protestors indulging in violence, lot of our work is getting affected. In fact, many of our international clients, including IBM, have imposed business travel restrictions on Hyderabad. However, to ensure business continuity of our international clients, we are beefing up security at our development centre and even pulling the shutters down once all the employees are in,” said C K Shastri, managing director of Hyderabad-based enterprise agility software products company, Intense Technologies Ltd.

“My sister called and told us they would need to stay at the hotel for two days,” said Anand (name changed). According to him, such arrangements are not uncommon during emergencies.

“There was trouble on Thursday, as the agitators tried barging into our 700-seater technology development and delivery centre in Hyderabad. So, we called the police and they gave us protection for two to three hours. In fact, we had arranged a fleet of 20 cars to ferry our staff, especially the female employees, as auto-rickshaws and buses are off the roads,” said G V Kumar, chief executive officer and managing director of Chennai-based Megasoft Ltd, a provider of convergent service delivery infrastructure solutions to wireless and wireline operators.

Source : http://www.business-standard.com/india/news/it-firms-embrace-safety-measures-for-staff/380794/

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IBM Hires for Outsourcing

December 25th, 2009

In an effort to expand its local call-center outsourcing business, the IT giant, International Business Machines Corp. IBM plans to hire 500 customer-service employees and train them at its campus in Boulder over the next several years (probably by 2014).

IBM’s Boulder campus in New York is a global services hub that handles IT support, data storage and disaster recovery services for other businesses. IBM already has about 2,800 employees at the site.

The company is expanding its customer-service related jobs. IBM also qualified for a tax rebates from Boulder for the new call center. The tax rebate is offered to all companies that qualify, based on social, community and environmental criteria. The Colorado state government has also permitted IBM’s expansion and worker training for incentives.

IBM has been focused on expanding its outsourcing business and thus continues to hire employees.

To this end, IBM is also grabbing various deals. The company announced that it will provide IT services to Discover Financial Services through 2015 as a result of an extended outsourcing agreement between the two companies. Financial terms of the deal were not disclosed.

Under the agreement, IBM will offer management and support for some of Discover’s most critical IT operations. IBM will make investments in software, processing and storage technologies that will result in improved operations, efficiency, reporting and compliance.

We are impressed by IBM’s continued focus on getting various outsourcing deals and it will open up new revenue opportunities for the company. We expect IBM’s initiatives to grow its outsourcing business will drive long term growth, moving forward.

Source:http://www.zacks.com/stock/news/28675/IBM+Hires+for+Outsourcing

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Retail companies turning to IT outsourcing to install new innovations

December 25th, 2009

Retail companies are going to increasingly invest in their technologies, which could lead them to turn to providers of IT outsourcing in London.

Research by IDC Retail Insights predicts that mobile technology will be increasingly incorporated within the self-service model.

Among the projects that firms could turn to IT outsourcing in London providers to work on are methods of ordering out-of-stock products through mobiles and mobile self service.

Ivano Ortis, research director at IDC Retail Insights, emphasises the importance of companies using ICT to connect with their customers.

He says: “Retailers should consider the adoption model of immersive shopping technologies as a path from traditional retailing to omnichannel shopping.”

Among the technologies IDC explores are self-scanning systems, wireless technologies and radio frequency identification for consumer-facing applications.

The growing importance of smartphones was recently highlighted by PC Advisor associate editor Rosemary Hattersley, who stated that IT outsourcing in London users have benefited from these advances.

Source : http://www.ihotdesk.com/article/19530497/Retail-companies-turning-to-IT-outsourcing-to-install-new-innovations

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China Mobile’s global IT support center starts official operation on Dec. 24

December 24th, 2009

The centralized support system of China Mobile’s (00941.HK; CHL.NYSE) southern base started operation formally on December 24, representing the telecom operator’s capacity of centralized IT support and management have been upgraded.

The system supports not only China Mobile’s domestic operation, but also offers IT support to its subsidiary in Hong Kong and Pakistan.

The IT support system offers high-quality services via centralized construction, operation and maintenance of network and support system, centralized procurement of equipment and materials, and centralized management of finance, which greatly reduced costs of the carrier. Therefore, the open of China Mobile southern base’s global IT support system is of great importance for it to reinforce the business operation.

China Mobile’s network operation, maintenance and management capacity will be transferred into a competitive service product, and the southern base will offer service outsourcing to overseas telecom operators.

Industrial experts held that the oversea remote monitoring model and the development idea of outward exploitation of China Mobile’s southern base made significant contribution to China Mobile’s development on oversea market and the improvement of the system management experience of the foreign subsidiaries.

Source : http://www.istockanalyst.com/article/viewiStockNews/articleid/3737530

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Six Offshore Outsourcing Hot Spots for 2010

December 24th, 2009

Industry watchers predict an increase in offshore IT outsourcing in the new year. But 2010 is hardly expected to be a banner year for offshoring-better than 2009 but far from historic growth levels.

The headlines in offshore outsourcing in 2010 may focus less on the quantity of work organizations are sending overseas and more on where they’re sending it. Leading companies will begin developing networks of offshore locations for outsourcing: They’ll supplement contracts with vendors in more developed locales like India and the Philippines with new relationships in emerging markets in Latin America, Asia and Africa. Of course, “risk averse buyers will not venture too far afield in 2010,” says Stan Lepeak, managing director of global research for EquaTerra.

Here are six offshore locations liable to loom large in IT services in 2010.

[ Offshore Outsourcing: Pay Attention to Foreign Exchange Rates or Pay the Price ]

China. Analysts and industry watchers have nattered for years about the nascent but promising IT services industry in the world’s most populous nation. But issues including lack of English language skills, business immaturity, IP protection concerns, and lack of managerial talent has prevented China from moving ahead as a destination for offshoring in a major way. In 2010, China is likely to garner attention mostly as a near-shore outsourcing center. “Where China can demonstrate its language advantage, it will be the destination of choice for organizations in Japan and other Asian countries,” says EquaTerra’s Shanghai-based consultant Vibhash Ranjan.

[ 14 Emerging Offshore Outsourcing Markets You Can't Afford to Miss ]

“One of the key factors that will determine whether the growth can continue into the future is if the government encourages structural change in state-owned enterprises (SOEs),” says Melany Williams, partner and managing director of IT service provider consultancy TPI Momentum. “A tipping point will be when the Chinese government encourages the outsourcing of selected functions of the SOEs to local and foreign service providers.” That, says Williams, will be a key indicator that China is entering a new level of outsourcing maturity.

India.India’s dominance as an offshore outsourcing destination will continue, notes EquaTerra’s LePeak. But that may present disadvantages for the Indian providers and their customers. Outsourcing consultancy Everest predicts the country’s IT services providers will experience a growth revival that, late next year, could lead to spikes in wage inflation and attrition. To balance those trends, Everest says that vendors will continue to move work to tier two cities, such as Pune and Chennai.

[ The 25 Most Dangerous Cities for Offshore Outsourcing ]

In 2009, several Indian vendors went on shopping sprees and will now attempt to sell existing IT services to clients of the companies they’ve acquired. But that will require fundamental changes in their business models-most notably the need to do more local or onshore hiring, which could impact their bottom lines, notes Everest in recent research.

Source : http://www.computerworld.com/s/article/9142606/Six_Offshore_Outsourcing_Hot_Spots_for_2010

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India’s IT services market to double by ‘13

December 24th, 2009

The domestic IT services market in India is estimated to grow from US$5.7 billion in 2008 to US$12.8 billion in 2013, representing a compounded annual growth rate (CAGR) of 18.6 per cent from 2008 to 2013, according to the latest research from Springboard Research, an innovator in the IT Market Research industry.

The report predicts the Indian IT services market to be heavily dominated by infrastructure services, which are expected to reach US$7.2 billion in 2013 reflecting a steady 53 per cent market share, and a CAGR of 18.1 per cent from 2008 to 2013.

However, applications services with a CAGR of 19.6 per cent is to remain the fastest growing market segment, while IT Consulting Services remains the smallest with the expected market share of 5 per cent and CAGR of 16.4 per cent.

“The Indian domestic IT Services market is at par with international levels in terms of average gross margin and provides immense opportunity to the vendors,” said Sudip Saha, Senior Research Analyst for Services at Springboard Research.

“However, to meet high consumer expectations, vendors need to strategize around services delivery by implementing efficient processes, reusable tools and templates and replicable models,” Saha added.

The report reveals that infrastructure hosting services showed the highest growth over the period among the Infrastructure Services category with a CAGR of 23.4 per cent, closely followed by enterprise IT outsourcing, network integration and network management. Also, application hosting enjoys the highest growth momentum in the application service market followed by application management and infrastructure application integration.

In terms of vertical industries, banking, financial services and insurance (BFSI) leads the Indian IT services market with 21.5 per cent market share, followed by the public sector (including education) and telecom industry. However energy and utilities, followed by healthcare remain the fastest growing vertical industries.

“With industries such as public sector, healthcare, energy and utilities, and transportation and logistics stepping up their IT spending, the appeal for the Indian domestic market has increased tremendously and is drawing the attention of domestic and MNC IT service providers,” said Phil Hassey, vice president of services research at springboard research

Source:http://www.ciol.com/News/News-Reports/Indias-IT-services-market-to-double-by-13/241209129329/0/

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Software & info service outsourcing summit held in Guangzhou

December 24th, 2009

The 2009 China Software & Information Service Outsourcing Summit was held in Guangzhou yesterday.

Representatives of demonstration Chinese cities, software parks and well-known IT outsourcing companies attended the summit and discussed about better development patterns amid the economic recovery.

Lou Qinjian, deputy minister of Industry and Information Technology, said in the opening speech that Guangzhou as well as the whole Guangdong Province are pilot bases for software outsourcing and information service industry, and are expected to play a more important role in the industry recovering process.

In the first three quarters of this year, China’s software and information service outsourcing sectors posted combined revenue of RMB 146.36 billion, up 24.5% from the same period of last year. It is estimated that the revenue for the whole year will hit approximately RMB 200 billion.

Source : http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&NewsID=29953

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