Archive for February, 2010

New survey shows IT managers focus bulk of their tome on the wrong tasks

February 16th, 2010

With IT budgets under scrutiny at companies of all sizes, you might think IT management would look to dump low-level, time-intensive tasks to focus on more profitable, strategic tasks. But a new survey by Pegasus Research Group to gain insight about the allocation of time and ranking of importance regarding a variety of maintenance, deployment and strategic IT tasks performed by IT departments has uncovered some surprising results. The survey, sponsored by Logicalis, a leading provider of high-performance technology solutions, discovered that maintenance tasks, ranked as lower in importance, are taking up more than twice the time of strategic tasks that were ranked higher in importance.

The survey, conducted last quarter, polled respondents across multiple revenue sizes, regions and industries, with titles ranging from IT director to C-level executives.

The top ranked IT tasks reflect a concern for enterprise infrastructure and the need to better align technology initiatives with business results. Among the top ranked IT tasks were:
- Backup
- Security
- Compliance
- IT/Business Alignment

The bottom ranked IT tasks reflect items that may be best outsourced to reduce costs and enable IT staffs to focus on more strategic items. Among the lowest ranked IT Tasks were:
- Patch Management
- Firmware Updates
- Performance Management
- Help Desk
- Resource Scheduling
- Vendor Management
- Installation
- Test/Burn In
- Resource Planning
- Policy Procedure Updates
- File Restore
- Attend Training

Technologists at Logicalis recommend that IT managers consider alternative IT maintenance options, such as managed services, which provides the ability to control costs and reduce capital expenditures. A copy of the survey is available for complimentary download at: http://www.us.logicalis.com/docs/Pegasus-Research-Report-IT-Task-Management.pdf.

“Not only does managed services lower IT spending, it gets the maintenance tasks done at a new level of quality based on ITIL v3 standards.” said Wayne Kiphart, Logicalis’ vice president of managed services. “We encourage IT management to consider the impact that would have on strategic business tasks than can help their business.”

Source:http://pr-canada.net/index.php?option=com_content&task=view&id=166630&Itemid=58

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MphasiS aims for buys in sub-$100 m range

February 16th, 2010

Bangalore-based IT services and business process outsourcing (BPO) firm MphasiS is looking at a string of acquisitions in the sub-$100 million range to strengthen capabilities in areas of business support, package implementation, BPO and remote infrastructure management (RIM).

The erstwhile parent of MphasiS, EDS was acquired by American technology giant HP in 2008. MphasiS currently gets around 70% of its revenues from HP and the acquisitions are aimed at increasing revenues from direct clients other than HP, which currently contribute 30% to its topline.

Ganesh Ayyar, CEO, MphasiS told FE that the company was scouting for firms to strength the company’s existing portfolio and verticals such as banking, financial services, healthcare, life sciences and pharma. “We plan to fund these acquisitions from cash in hand. Our cash position had increased to $200 million at the end of 2009 from about $10 million at the end of 2008,” said Ayyar.

He added that the jump in the company’s cash position was largely on the back of increased focus on RIM and application-led services other than BPO, cost optimisation and reducing days of sale outstanding from 83 days in October 2008 to 72 days in October 2009. In August last year, MphasiS acquired the captive unit of AIG (AIG Systems Solutions) which provides IT services and solutions to AIG companies worldwide for an undisclosed amount. However, he refused to divulge details on the revenue contribution from the acquisition since then.

Ayyar added that the company was looking at increasing revenue flow from direct customers. “We have been working with a set of clients for a long time and want to grow our footprint with existing clients. At the same time there are markets that HP may not be addressing and we would want to capture those,” he added. MphasiS, which gets 12% of its revenues from HP as a direct client and 58% as a partner, is also simultaneously looking at increasing the share of joint-go-to market-led revenues with HP, and tap into new revenue streams in HP such as implementation services for its software products.

A significant portion of the company’s future investments will also go into expanding its geographical presence.

“We are looking at accelerating our efforts in India, Australia and Europe,” he said. In the offing are more offshore and near shore centres by the company in these emerging geographies.

The company, which is yet to announce its financials…

Source:http://www.financialexpress.com/news/MphasiS-aims-for-buys-in-sub–100-m-range/580101/

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Govt to fight cyber scams

February 16th, 2010

A new government campaign will attempt to tackle cyber crime from fraudsters and rogue traders, IT outsourcing holders have been told.

Figures from the Office of Fair Trading (OFT) reveal that 73 per cent of UK residents have received a scam email in the last year, with cyber fraud costs consumers around £3.5 billion each year.

The Department for Business, Innovation and Skills revealed a specialist cyber enforcement team will be formed to deal with crimes which use the internet to con businesses and consumers.

Consumer minister Kevin Brennan commented: “Our investment will help the OFT and Trading Standards to put in place the new specialist teams, training and technology required to take the fight to these criminals.”

A recent study from research consultancy IDC predicted that IT security industry will perform well during the coming 12 months, as firms are expected to increase their spending on protection by 19 per cent.

Source:http://www.ihotdesk.com/article/19616568/Govt-to-fight-cyber-scams

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Asian companies to increase IT outsourcing

February 16th, 2010

Asian companies are becoming just as likely to outsource their IT as U.S. or European companies. As a result, spending on IT outsourcing in China is expected to explode over the next several years, with India being the main beneficiary.

In fact, Dell (News – Alert) Services predicts that spending on IT outsourcing will grow faster among Asian companies than their western counterparts in 2010, reports FT.com in India.

This is a reversal of the trend of recent years that has seen more western companies outsourcing services from India and China.

According to the FT.com report, some analysts are predicting that Asia will account for 26.3 percent of the global consumption of IT and business-process outsourcing services in the next decade, up from nearly 20 percent currently.

As a result of this trend reversal, industry group Nasscom is predicting that the BPO industry in India will grow to $56 billion by March of next year

Source:http://call-center-services.tmcnet.com/topics/call-center-services/articles/75546-report-asian-companies-increase-it-outsourcing.htm

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Custom web development and software company Acceptic to Take Part in CeBIT 2010

February 16th, 2010

Acceptic Ltd, a Ukrainian software and Web application development company, is to take part in the world leading ICT forum CeBIT 2010 (Hannover, Germany, 2-6 March 2010).

Dmitriy Kharchenko, CEO of Acceptic Ltd: “CeBIT is recognized as a prime place for introducing new IT solutions for home and business. Our company is planning to present our latest experience in building high-performance software and Web-based applications.”

In particular, Acceptic will demonstrate its capabilities in custom Web development on the basis of PHP/AJAX technologies, social networking websites and Facebook applications programming, software for iPhone and Blackberry, cross-platform and low-level systems development (network solutions, data processing, audio-video streaming, firmware).

Acceptic Ltd belongs to a new generation of East European IT outsourcing companies. It is characterized by strong emphasis on the best IT practices, staff educated in reputed Western and local universities, deep understanding of the US and EU customers.

Dmitriy Kharchenko continues: “We are especially pleased that the European program for small companies from new democracy countries has appreciated our striving to provide best-of-breed software development services and kindly supported our presence at CeBIT 2010.”

CeBIT is a platform where business meets business for mutual benefits. A preliminary schedule of Acceptic meetings includes talks with a number of leading European technological companies and software houses. Dmitriy Kharchenko: “We build relations with our partners and customers on the principles of Reliability, Responsibility, and Flexibility. It is CeBIT expo that definitely shows how fast ICT technologies change. But the value of strong business relations is unchangeable.”

Source:http://www.bignews.biz/?id=842302&keys=Webdevelopment-Facebook-programming-php

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Rural sourcing: Why ‘IT inbreeding’ is unhealthy

February 16th, 2010

Last week, I mentioned that the agenda of this week’s 2010 Outsourcing World Summit in Orlando includes a presentation by the CEO of Rural Sourcing Inc., a company that promotes rural sourcing in the United States as an alternative to offshore outsourcing. I’m all for it, as long as the value of offshore operations continues to be understood and appreciated.

Whether we like it or not, companies are going to do whatever they can to keep their labor costs as low as possible, so the idea of working with outfits like RSI to tap U.S. labor markets where the cost of living is relatively inexpensive makes perfect sense. Providing employment opportunities in these markets is clearly an important, welcome strategy for U.S. companies to take. My only qualifier is that we need to implement the strategy in a way that doesn’t degenerate into what I call “IT inbreeding.”

When I’ve written on this topic in the past, I’ve explained that relying too much on ideas borne of people with closely related experiences and ways of thinking can be unhealthy. On one occasion in particular, I wrote about Optimal Solutions Integration, a Texas company that had outsourced IT work to an RSI facility in Arkansas. What struck me in that case was a quote by Gary Hart, vice president of global outsourcing at Optimal Solutions:

There’s not much difference between my Texas accent and the one you get in Arkansas. On every level, it makes sense.
I took issue with that statement, and explained why:

It might make sense on some levels, but certainly not all of them — at least not in the sort of world most of us want to live in. No matter how you look at it, Hart’s accent comment is indicative of an attitude that values sameness over diversity. It bespeaks an insularity that’s uncomfortable for anyone who has recognized the benefits of forces like multiculturalism and globalization.

Inbreeding as a practice is just plain unhealthy, and that goes for IT inbreeding as well. Turning inward isn’t the answer. We shouldn’t avoid different accents or different cultural norms or different approaches to business. Rather, that diversity needs to be sown, cultivated and allowed to flourish.

So when RSI CEO Monty Hamilton speaks at the Outsourcing World Summit this week, my hope is that the rural sourcing option is presented and received in a way that recognizes that, as with every option, there will be tradeoffs. Rural sourcing is a great approach that should be used whenever it makes sense. But we can’t allow ourselves to overlook the fact that losing an outward focus that values diverse strengths and perspectives would be senseless. And just plain unhealthy.

Source:http://www.itbusinessedge.com/cm/blogs/tennant/rural-sourcing-why-it-inbreeding-is-unhealthy/?cs=39430

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IT sales jobs to grow with Indian outsourcing reversal

February 16th, 2010

IT sales jobs are set to increase over the coming year with more Asian companies outsourcing services to the west.

Dell Services and KMPG predicted last week in a conference in India that the growing markets in the emerging economies would be demanding more services, in a reversal of the trend that saw Indian companies take on contracts from the west.

The report by KPMG and the Asian-Oceanian Computing Industry Organisation predicted that Asia’s consumption of IT and business-process outsourcing services would increase from 20 per cent to 26.3 per cent.

Sales and marketing are key sectors likely to be outsourced over the coming years, with other sectors including accounting, HR management, IT and product development also likely to grow, according to the report.

The estimated growth across the ‘corporate value chain’ was attributed to companies being more relaxed about the security of data and identity protection measures.

Source:http://www.bms-uk.com/BMS-UK/Sales/Latest-News/325242/

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