Archive for April, 2010

Outsourcing On The Rise -but trouble may lie ahead.

April 23rd, 2010

Appetite for outsourcing up 20% from last year, but focus has yet again shifted to cost reduction The U turn from strategic to tactical outsourcing has the potential to push outsourcing back a decade, according to research report released by Op2i.

With outsourcing becoming a necessary evil for business sector recovery and public sector spending reform post recession, appetite for outsourcing has increased by 20% from last year, but not necessarily offshoring, to the dismay of offshore supplier
organisations, according to Op2is Outsourcing 2010 survey report released today.

Whilst interest in outsourcing has increased, focus has yet again shifted to cost reduction, with suppliers pressured to deliver more for less the U turn from strategic to tactical outsourcing has the potential to push outsourcing back a decade, if the industry does not heed the warnings.

Theres been a shift in the perception of the main driver for outsourcing, away from productivity and efficiency (from 40% to 34%) towards cost cutting (from 46% to 58%).

Both improved performance and quality appear to have dropped from 20% and 13% to 13% and 5% respectively. With a race to deliver services at the lowest cost, performance and quality appear to have been sacrificed. This may well have a detrimental effect in the longer run, as the market picks up and customers seek to differentiate based on quality and performance.

Whereas organisations were happy to invest upfront in transition and transformation activities with payback within 3 to 5 years, customers now expect payback within 18 months, and ideally dont want to invest / spend any money upfront. The public sector seems hell bent on following a similar course.

With the success rate of outsourcing somewhere in the range 40-60%, (failing programmes being the result of poor decision or programme governance) we are likely to see the failure rate rise as more organisations extend this cost focus to decision and programme governance.

The best approach to reducing the risks from outsourcing remains the development of a partnership relationship between customer and supplier (at 72%). Strong contracts (at 11%) follow, but significantly dwarfed by the partnership approach.

There appears to be little change, albeit a slight increase in those considering good governance as being the best means of achieving a low risk outsourcing project implementation, from 46% last year to 52%. Governance (whether this is monitoring SLAs, escalation procedures or dispute resolution procedures) is ranked highly both within the business and academic world as a determinate of success.

Whereas last year governance mediated by an experienced specialist was ranked highest, this year a governance model negotiated with the vendor features on top.

Op2i research suggests the key to successful cost focused outsourcing programmes is a rigorous approach to decision and programme governance across the organisation. Successful outsourcing is dependent on having an inclusive decision process that involves all stakeholders in both the decision and ongoing governance, and one which documents and links contractual and performance obligations to the original drivers for outsourcing. Op2i sees this as a critical measure for successful public sector expenditure reform through outsourcing.

Dr Bharat Vagadia, CEO Op2i commented:There have been significant cost pressures on outsourcing deals, many renegotiating existing deals and new comers seeing cost cutting as the only real driver. Business transformation is dead for now, but may well reappear as organisations realise that a pure focus on cost will lead to adversarial relationships, and may well lead to lower quality.

The outsourcing decision making process must be done rigorously, otherwise you end up fighting a lost cause, trying to stop a runaway juggernaut. The decision making process must be all encompassing, assessing all options; for outsourcing is not always the answer.

Source:http://www.prfire.co.uk/press-release/outsourcing-on-the-rise-but-trouble-may-lie-ahead….-11523.html

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Unisys names new president for global outsourcing business

April 22nd, 2010

Unisys Corporation announced that Ron Frankenfield has been named president of the Unisys Global Outsourcing and Infrastructure Services (GOIS) business.

As president of GOIS, Frankenfield will have overall management responsibility for the GOIS business, which provides outsourcing and infrastructure services to clients worldwide. He replaces Tony Doye, who is leaving the company to pursue an opportunity with another company.

Frankenfield has held a variety of senior leadership roles at Unisys, including serving as general manager of the company’s Australia/New Zealand and overall Asia-Pacific businesses. He has also led sales and services for the company’s technology business and most recently served as vice president of worldwide sales for GOIS

Frankenfield left the company for a brief period of time to serve as senior vice president of financial services at SAP and as general manager for the Americas group at Egenera. He rejoined Unisys in 2007.

Source:http://www.consultant-news.com/article_display.aspx?p=adp&id=6816

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Newmarket technology, inc.’s RKM IT solutions renews outsourcing services contract with bigott cigars

April 22nd, 2010

NewMarket Technology, Inc.’s  subsidiary RKM IT Solutions recently renewed its annual services agreement with Bigott Cigars of South America to outsource their entire helpdesk services for the fourth consecutive year. NewMarket has a focus on growing its outsourcing services offering to improve the Company’s percentage of revenue resulting from recurring contracts. NewMarket provides systems integration services, to include technology reseller, customization, integration, outsourcing and support services, in Southeast Asia, Latin America and North America, as well as China, and is actively expanding its business services into the growing markets of East Africa.

Bigott Cigars  is a more than 80-year-old, high-quality tobacco producer headquartered in Venezuela. Bigott controls 87% of the market share in Venezuela and markets their products to the public under the brands Belmont, Consul, Lucky Strike, Kent and Viceroy. Additionally, Bigott is the first private company in Venezuela to contribute to the state treasury and a member of the British American Tobacco Group. The British American Tobacco Group, more than 100 years old, has 81 factories in 64 countries and controls 14.6% of the world market.

RKM is a subsidiary of NewMarket Technology and an established systems integration firm based in Venezuela servicing northern Latin America. RKM is one of the largest Microsoft Large Account Resellers in Venezuela and received the prestigious Associate of the Year in Advanced Infrastructure Solutions award at FOCUS 2009.

Source:http://www.marketwatch.com/story/newmarket-technology-incs-rkm-it-solutions-renews-outsourcing-services-contract-with-bigott-cigars-2010-04-22?reflink=MW_news_stmp

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Smiling BPOs and catholic workers

April 22nd, 2010

‘A smile through a phone,” that is the basic competitive advantage of the Philippines as a business-process outsourcing (BPO) location over other locations like India, so underscored Mohan Kulkarni, president of IP Contact Center Outsourcing Inc., during the panel discussion on Philippine Services Export Prospects in the Asian Institute of Management Business Leaders Forum yesterday.

My friends from the BPO and media sector who were there sent me this text message: “Then, Rajat Nag, Asian Development Bank’s managing director-general said in his keynote: ‘As a friend, I will not hold back my punches: What is the vision of this country? The Philippines has a tremendous ability not to think in times of crisis, and not to soar in the best of times…. The remittances have a tremendous ability to cushion shocks, but they also take away any incentives for any fundamental changes…. What is keeping [Filipinos in the BPO sector] from being analytical and logical [the competitive edge of India as BPO destination], and still able to communicate that smile through that call?’

Rajat Nag was effectively gently “nagging” the business and academic elite in that forum to think and act seriously on our nation’s niche: “I see the challenge for the new administration to strengthen the country’s fiscal position and to improve investment plans…. As a low-middle-income country, [the BPO sector may be a ] trap, if the country doesn’t seriously start thinking about its niche—of aspiring to move from call centers to knowledge-process outsourcing, from legal transcription to legal documentation: What are you going to be known for?”

Certainly no smile came across with my friends’ text messages. That globalization of “smile through a phone” at what cost? What price—social price—to raise the bar for BPO? To go rapidly from a start-up industry to infrastructure- and incentive-driven sector to value-adding/value-creating niche? One texted: “Didn’t I tell you, Father, that the No. 1 product selling in convenience stores in our BPO buildings were condoms, not energy drinks or chocolates? So now we have this mess of people thinking BPO workers are ‘unclean’ [HIV-AIDS prone] and the Church and the Department of Social Welfare and Development are at loggerheads over the condoms distribution with flowers on Valentine’s Day.”

Dorothy Day, founder of The Catholic Worker, came to mind. How would she handle this challenge? She, who reflected on her young years in her autobiographical novel, The Eleventh Virgin, as years of a “bohemian lifestyle…dissolute, wasted, full of sensation and sensuality.” Later, in The Long Loneliness, my favorite of her works, she recounts how, as she stood on a curb on the streets of Washington, D.C., watching the hunger march that the communist Americans organized to push for social legislation to combat unemployment, establish pensions, and provide relief for mothers and children in the hot summer of 1932, she felt joy at the courage of the marchers and bitterness at her new conversion to Catholicism: “I could write, I could protest, to arouse the conscience, but where was the Catholic leadership in gathering bands of men and women, for the actual works of mercy that the comrades had always made part of their technique in reaching the workers?”

BPOs are redefining what a “worker” means today, creating its own long loneliness. Contracted services. Pay-for-service. Deconstructed value chain. Bonus now, not tenure later. The millennial generation knows this new definition of worker more than we do. Yet something remains of exploitation of a work force, be it of the Great Depression or this Great Global Economic Crisis. I could almost hear Dorothy Day echo Peter Maurin, as she wrote further, “[We need to build] a society in which it is easier for people to be good…knowing that when people are good, they are happy.” In April 1933, Day and Maurin, in the depths of the Great Depression, came out with the first issue of The Catholic Worker, sold for a penny a copy on Labor Day. Dorothy Day underscored: “We called the paper The ‘Catholic’ Worker because at the time many Catholics were poor…who were criticized for a lack of social and political morality…those who worked with hand or brain, those who did physical, mental or spiritual work. But we thought primarily of the poor, the dispossessed, the exploited.” In April 1968, she wrote of “the faith that man is capable of change, of growth, of growing in love.”

Can we reconcile growing in love with developing a competitive need for rapid growth in a postcrisis Philippine economy with least social cost? Pope Benedict XVI in Caritas in Veritate has a concrete advise: “The strengthening of different types of businesses, especially those capable of viewing profit as a means for achieving the goal of a more humane market and society, must also be pursued in those countries that are excluded or marginalized from the influential circles of the global economy. In these countries it is very important to move ahead with projects, based on subsidiarity, suitably planned and managed, aimed at affirming rights yet also providing for the assumption of corresponding responsibilities. In development programs, the principle of the centrality of the human person, as the subject primarily responsible for development, must be preserved. The principal concern must be to improve the actual living conditions of the people in a given region, thus enabling them to carry out those duties which their poverty does not presently allow them to fulfill. Social concern must never be an abstract attitude. Development programs, if they are to be adapted to individual situations, need to be flexible; and the people who benefit from them ought to be directly involved in their planning and implementation…. Solutions need to be carefully designed to correspond to people’s concrete lives, based on a prudential evaluation of each situation. Alongside macro-projects, there is a place for micro-projects, and above all there is need for the active mobilization of all the subjects of civil society.” May the next, new administration heed this advice.

Source:http://businessmirror.com.ph/index.php?option=com_content&view=article&id=24449:smiling-bpos-and-catholic-workers&catid=28:opinion&Itemid=64

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Appirio offers $1 million cloud computing guarantee

April 22nd, 2010

While cloud computing may be all the rage, some businesses remain reluctant to commit their IT operations to the cloud. For those companies, solution provider Appirio is making an offer that’s hard to refuse.

Appirio said Thursday that it will guarantee businesses that outsource their entire IT infrastructure to Appirio’s cloud services will save at least $1 million a year or the solution provider will make up the difference.

The offer is designed “to really encourage people to think big about the cloud,” said Ryan Nichols, head of cloud strategy and sourcing at Appirio, in an interview. “It’s something we’re very confident in offering. This is about [us] putting some skin in the game to help customers make that move to the cloud.”

Appirio’s cloud offerings include applications from vendors such as Salesforce.com and Google , as well as professional and outsourcing services. The solution provider is widely seen as a rising star in the cloud computing services industry.

To qualify for the offer, a company must have a minimum of 500 employees and annual IT spending of $5 million, Nichols said.

But Nichols acknowledges the cloud isn’t for everyone. Some businesses may have complex, custom applications that can’t be transferred to the cloud, for example, while others may face regulatory restrictions. “This offer is really targeted toward companies that are already thinking about adopting the cloud,” Nichols said.

Businesses interested in taking Appirio up on its $1-million challenge will undergo an evaluation and work with the solution provider to develop a business case and road map for migrating to a cloud IT environment. Nichols said businesses generally take two or three years to make the transition and begin realizing the full savings cloud computing offers.

Source:http://www.crn.com/software/224600075;jsessionid=BBYI3CU4E4WT3QE1GHPCKHWATMY32JVN

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HCL Technologies: catch-up quarter

April 22nd, 2010

HCL Technologies reported a revenue growth of 21.4 per cent year-on-year (y-o-y) to $685.2 million (in constant currency terms) during the March quarter, up 5.1 per cent as compared to the previous quarter. Segment-wise, consolidated revenues from the information technology (IT) services grew nearly 25 per cent y-o-y and 6.6 per cent quarter-on-quarter (q-o-q).

Business Process Outsourcing (BPO) revenues continued to drag down numbers, dipping 10 per cent below the previous quarter and 8 per cent y-o-y. But, they are expected to stabilise after restructuring in a couple of quarters, management suggests.

Rupee revenues felt the brunt of the currency movements, rising 7.5 per cent y-o-y and 1.4 per cent q-o-q to Rs 3,706 crore. While infrastructure service revenues grew 11 per cent sequentially and 58 per cent y-o-y, core software service revenues were almost flat sequentially.

Earnings before interest, tax, depreciation and amortisation margins contracted 160 basis points y-o-y to 19.7 per cent in the recently-concluded quarter. Lower depreciation and amortisation charges, coupled with lower forex losses (down 50 per cent q-o-q), boosted net profit 58 per cent y-o-y and 16 per cent sequentially to Rs 344 crore.

Moreover, with financial sector revenues (common currency) growing 5 per cent q-o-q, the revenue growth was distinctly more broad-based this quarter. Manufacturing sector revenues grew 10.5 per cent, revenues from media, publishing and entertainment were up 16 per cent and life sciences revenue growth was 10 per cent sequentially.

The company has nearly doubled its hires this quarter, adding 3,152 employees including nearly 5,000 gross lateral hires. Attrition has crept up to nearly 14 per cent. Given the offshore utilisation at almost 80 per cent, the cost pressures from salary hikes will continue to be a key worry. This, with rupee appreciation, dampen the outlook for the company.

The revenue bounce-back sent the stock soaring 10 per cent since results were announced. The stock closed at Rs 380.80 on Wednesday and trades at a P/E valuation of 15x consensus analyst FY11 (June-end) estimates.

Source:http://www.business-standard.com/india/news/hcl-technologies-catch-up-quarter/392769/

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Effective Document Conversion Services for Outsourcing Business

April 22nd, 2010

Effective Document Conversion services are a very important component in a successful affiliate marketing business. You should focus on improving conversions at all levels of the business. Converting documents is a simple process requires reliable and effective conversion software. Documents are created using a variety of applications.

Document Conversion service unites of years experience in typesetting, legacy conversion and management of documentation with expert knowledge at the harsh frame of present electronic publishing. Some of the most popular are Microsoft Word, PowerPoint, and Publisher, plus many other kinds of applications. Distribution and publishing those documents becomes hard when not everyone uses the same software. Excellent PDF Conversion support. Convert PDF to DOC (MS Word), PDF to RTF, PDF to TXT, PDF to HTML, DOC to PDF, RTF to PDF, HTML to PDF

‘Convert Doc’ can be especially useful if you require difficult file conversion jobs done on a regular basis. By saving and recalling a conversion job file, ‘Convert Doc’ quickly remembers all the file conversion tasks and their details. Sometimes it becomes really very difficult to manage such a large amount of data, especially for firms with large amounts of information, multiple formats, and complex system requirements.

Documents are recovered at your desktop in a matter of seconds. Thousands of associations around the world use document imaging now instead of paper filing systems. The advantages of document conversion include: Prevent lost records. Save storage space. Manage records easily. Find documents quickly. Make images centrally available. Eliminate the need for file cabinets and reclaim valuable floor space.

Conversion Services has a very efficient fast connection via the Internet for outsourcing requirements. It provides expediency and security to organization in managing, updating and retrieving data. There is particular software which makes conversion more secure and reliable. Conversion services not only saves data but also time and money of any company.

Conversion Service offers suppleness, dependability and skill to cater to any new process. If you have a data conversion requirement or want to convert bulk documents than take advantage of conversion services. Many software are available online that allows you to convert PDF documents to Word and vice versa. While buying one for your document conversion needs make sure the software is reliable and converts accurately with speed. It should be able to do high quality conversions cost-effectively. Check out the features of Doc Smarts document conversion software.

Our professionals can customize a solution just for you. we can help you manage your documents and data more professionally and cost profitably. Many software’s are available online that allows you to convert PDF documents to Word and vice versa. While buying one for your document conversion needs make sure the software is reliable and converts accurately with speed. It should be able to do high quality conversions cost-effectively.

Source:http://www.documentname.com/effective-document-conversion-services-for-outsourcing-business/

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