Archive for April, 2010

CDI IT solutions selected as prime vendor by Citrix Systems, Inc.

April 20th, 2010

CDI IT Solutions (CDI), a technology services delivery leader and a division of CDI Corp. (NYSE: CDI), today announced it has been selected as a prime vendor by Citrix Systems, Inc. (Citrix) to provide IT staffing and direct hire services.

Under the agreement, CDI will provide IT services to Citrix Systems including supplying critical staff on a temporary basis as well as fulfilling permanent positions for key IT projects.

“This partnership seems natural given our long and successful history of working with high technology clients,” said Andy Cvitanov, President of CDI IT Solutions. “Our vast industry knowledge, along with our highly skilled IT managers, will allow us to become a valuable contributor to Citrix’s success and we look forward to building a long-standing relationship.”

“We are pleased to be working with a fiscally responsible company with seasoned management such as CDI. They have a reputation of providing the right skilled resources at a reasonable price and have a track record of delivering hard-to-find niche technologies nationwide,” said Michael McKiernan, Managing Director, WorldWide Procurement, Citrix Systems. “We chose CDI as a prime vendor based upon their willingness to commit to the success of Citrix, strong ROI model and national footprint.”

Source:http://www.prnewswire.com/news-releases/cdi-it-solutions-selected-as-prime-vendor-by-citrix-systems-inc-91593994.html

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IT outsourcing and the “Unemployable” US tech professional

April 20th, 2010

American dominance of technology continues unabated, as giants like Microsoft, Google and IBM shape the landscape with big ideas and big dollars. Yet one species in this thriving landscape is clearly beleaguered: the American IT worker.

His challenges are numerous. A brutal recession makes hollowed-out companies hesitant to hire. Wages are stagnant. Well-educated H1B visa holders are happy to work for less. A multi-year trend toward IT outsourcing means emerging market talent is just an email away.

Worst of all, word on the street is that US IT workers aren’t keeping up with the global competition. The stereotypes, regardless of truth, have gained a degree of cultural credence.

The US tech professional is (according to lore) educated in a dysfunctional school system and distracted by an indulgent American lifestyle (March Madness betting pool, anyone?). In contrast, his Third World counterpart (probably Indian) lives to work and focuses like a laserbeam on his training – which never stops.

A remark by Vineet Nayar, CEO of Indian outsourcer HCL Technologies, encapsulated this attitude. Speaking in New York City in 2009, he opined that the majority of US college grads are “unemployable.” They’re focused only on getting rich, and have less patience than their global counterparts on learning critical IT processes.
His attitude is echoed from within the US. Robert Dewar, a professor emeritus in Computer Science at New York University, told me in 2008 that college CS programs have been dumbed down to the point that graduates are essentially incompetent. Bjarne Stroustrup, designer of the C++ language and a professor at Texas A&M University, said to me that he’s heard of employers – from Microsoft to Apple to IBM – bemoaning the poor quality of CS grads.

If you were the worrying type, you might think these negative perceptions and the IT outsourcing trend places American tech professionals on eroding ground. But tech outsourcing is an emotionally charged issue, touching upon combustibles like national identity and job stability. What’s perception and what’s reality?

IT Outsourcing (And Differences of Opinion)

Robin Borough, EVP of Omnikron Systems, an IT consultancy for Fortune 500 companies, is often involved with hiring decisions, typically for applicants with 5+ years experience. Yet she has frequent contact with college grads and strongly disagrees with the assessment that they’re lacking.
‘These guys were so sharp, and so eager and well mannered – they were phenomenal,” she says, of the tech students she knows from Penn State, CalTech and other top schools. “I’m not finding an attitude of entitlement.” She sees these new grads as socially conscious. “They have no desire to make money – they all want to save the world.” Many are learning foreign languages to enable international careers.

Her positive experience, however, is not universally shared. “I have a very good friend and a longstanding client [an IT employer] who is continually frustrated,” says Bob Lewis, president of IT Catalysts, a consultancy that deals with hiring and other IT issues.

“Most of the people he interviews don’t seem to want to work very hard and seem to be far too open about their career aspirations compared to what they can do for him.”

These candidates’ problem may less a matter of actual ability and more a case of projecting a less-than-stellar attitude. And this lackluster spirit may reflect an undeniable reality: Today’s grads are all too aware of the job market’s limitations.

“When those of us in senior management were growing up, the standard model was: One employer for your career, the employer showed loyalty to employees, which was reciprocated.” Those days are forever gone. Mergers and acquisitions, reorganizations, downsizing – today’s IT professional navigates an exhausting churn.

Lewis once even heard a CEO baldly state, “All of our employees need to understand that from here on in, they’re fungible commodities.” So much for employer loyalty.

For a young IT job candidate to muster an attitude of humility and gratitude in this atmosphere can be hard.

“I think a lot of the hiring managers resent that because, frankly, they’re less realistic than the people they’re hiring.” These managers are unwilling to admit that even today’s “permanent” jobs may be short or mid-term engagements.

“Members of this generation have a far more accurate picture of the nature of the work place, that no one is going to look out for their interests other than them,” he says. “What they haven’t learned is how to disguise that so that they can have an effective interview.” He’s even heard horror stories of young job applicants demanding, “Here’s what I want you to do for me.”

However, what some perceive as a weakness in young applicants may actually be a strength, says Nick Corcodilos, a longtime IT headhunter and owner of Ask The Headhunter.

“Maybe a lot of our new grads tend to be entrepreneurs, and so interested in creating something new that they’re not going to want to fool around with the nitty gritty,” he says.

“But I think a lot of overseas students are so focused on the nitty-gritty, and they grow up in cultures that are not so entrepreneurial, they’re a lot more willing to do the grunt work. But does that say that our grads aren’t employable?”

Source:http://itmanagement.earthweb.com/career/article.php/3877471/IT-Outsourcing-and-the-Unemployable-US-Tech-Professional.htm

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IBM falls despite solid results

April 20th, 2010

International Business Machines Corp.  reported first-quarter 2010 earnings after the bell that surpassed the Zacks Consensus Estimates. The company also lifted its earnings forecast for fiscal 2010, the third time in a row.

The market seemed quite positive ahead of IBM earnings as shares rose 1.22% and closed at $132.23 yesterday. Despite upbeat results, IBM shares fell 2.31% to $129.17 after hours. Investors hoped for much better results and a stronger recovery. Thus IBM’s earnings beat wasn’t enough to impress Wall Street after hours.

IBM’s results signify that corporate IT spending is picking up and the company is a major beneficiary of the improving economy. Moreover, Gartner Inc.  has indicated IT spending increase of more than 5% in 2010, after falling 1% in 2009. The better-than-expected results from Intel Corp., Advance Micro Devices Inc.  and Oracle Corp.  is further proof of the rebound in IT spending.

Further, IBM stands to benefit from its increased focus on software and services. We believe IBM’s high-margin recurring revenue business and its increase in profitability will be the main drivers of growth in 2010.

The company provides a broad array of services and software, which has helped it expand its global footprint. IBM has also benefited from new initiatives such as Smarter Planet, Business Analytics and Optimization and Cloud Computing.

The current quarter profitability was fueled by a 5% sequential revenue improvement. Although costs increased in the quarter and margins were slightly below expectations, we remain positive on the company’s increased signings in software and consulting. However, first-quarter new service-contract signings were below expectations.

Operating Performance

IBM’s quarterly earnings exceeded the Zacks Consensus Estimate of $1.94 per share by 3 cents. Net profit improved 13.3% year over year to $2.60 billion, while earnings per share rose 15.9% to $1.97. This compares to a profit of $2.30 billion or $1.70 per share in the year-ago period. Net margin increased 80 basis points year over year to 11.4%.

Gross profit margin improved to 43.6% from 43.4% in the year-ago quarter, led by improved margins in all but the Services, Software and Financing segment. This was partially offset by lower gross margin in the Systems and Technology group. IBM has benefited from the growing focus on high-margin segments, such as Services and Software.

The company benefited from lower interest expenses, which fell 39.6% from the year-ago period and higher Other income, which rose 79.6% year over year. IBM also benefited from a lower effective tax rate of 26% in the quarter.

Operating expenses increased 6.6% year over year in the first quarter due to higher SG&A expense , which increased 7.8% to $5.68 billion and RD&E expense  increased 2.0% to $1.51 billion from the year-ago period.

As a result, the operating margin fell slightly to 12.2% in the quarter from 12.4% in the year-ago period.

Revenue

Total revenue for the quarter was in line with the Zacks Consensus Estimate of $22.8 billion. Revenue came in at the low end of management’s guidance range of $22.8 – $23 billion. Revenue of $22.9 billion was up by 5.3% (flat when adjusted for currency) to compared to the year-ago quarter. Overall, sales were down in one of its five segments. Services, Software and Systems and Technology revenues were higher, while Financing fell from the year-ago period.

Total Global Services revenue increased 4.3%  year over year, driven by an increase of 6.3% in Global Technology Services revenue and a 0.3% increase in Global Business Services revenue.

However, IBM reported a decrease in signed services contracts, which declined to $12.3 billion, down 2% (down 7%, adjusting for currency) from the year-ago period, primarily due to a decrease of 23%, or approximately $700 million in Application Management signings.

The company signed 13 contracts, which were greater than $100 million. Signings in Transactional services (Consulting, Integrated Technology Services and Application Management Systems Integration) decreased 1% (6%, adjusting for currency), however Consulting services signings increased 18% in the quarter with 25% of signings related to Smarter Planet and Business Analytics.

The company’s total outsourcing signings (Strategic Outsourcing and Application Management Outsourcing) decreased 3% (8%, adjusting for currency) to $6.8 billion. The estimated services backlog on March 31 was $134 billion, an increase of $8 billion year over year.

IBM reported improved revenue from its branded key middleware products that include WebSphere, Information Management, Tivoli, Rational products and Lotus products, which increased 13% (8%, adjusting for currency) year over year to $2.8 billion. As a result, the company’s Software segment increased 10.6% (up 5%, adjusting for currency) from the comparable quarter a year ago.

Systems and Technology revenue increased 4.9% (2%, adjusting for currency) year over year to $3.4 billion. Systems revenue increased 4% due to an increase in System x revenue, which increased 36%. This was offset by a decrease of 17% in revenue from POWER Systems. Revenues from System z mainframe server products decreased 17%. The hardware revenues that include servers and high-end mainframe computers grew 5% in the quarter.

From a geographic perspective, revenue was up 2% (flat, adjusting for currency) in the Americas and grew 10% (up 1%, adjusting for currency) in the Asia-Pacific region. EMEA grew 5% (down 2%, adjusting for currency) in the quarter. Revenue from OEM customers increased 18% and revenues from the growth markets increased 20% and represented 19% of total geographic revenues.

Balance Sheet

IBM ended with $14.0 billion in total cash and marketable securities, flat compared to the previous quarter. The company reported cash flow from operations (excluding Global Financing receivables) of $2.3 billion. For the quarter, IBM generated free cash flow of $1.4 billion, up approximately $400 million from the year-ago period. The company returned $4.7 billion to shareholders through $0.7 billion in dividends and $4.0 billion in share repurchases.

Guidance Raised

Historically, IBM’s earnings have consistently surpassed the Zacks Consensus, and IBM has raised its guidance for almost every quarter over the last two years. For fiscal year 2010, the company raised its earnings forecast to at least $11.20 per share from the previously expected $11 per share.

The company also said it expects constant-currency revenue growth for its total services, software and hardware businesses in the second quarter.

We remain positive on IBM’s long-term growth and therefore reiterate our Neutral rating on the stock.

Source:http://www.dailymarkets.com/stocks/2010/04/20/ibm-falls-despite-solid-results/

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Harvey Nash – first recruitment company in the world to launch iPad app

April 20th, 2010

Harvey Nash Group, the executive recruitment and IT outsourcing service provider, announces the launch of its Online Appointments Magazine (OAM) for Apple’s ground breaking mobile device, the iPad.

One of a small number of applications that Apple pre-approved for the iPad’s launch, this is the latest development in the Group’s strategy of becoming the leading digital innovator in the recruitment industry.
Harvey Nash Group CEO, Albert Ellis, commented:

“Harvey Nash has long recognised the importance of developing relationships with our candidates and clients online, and increasingly we are seeing this is happening beyond traditional websites. Our mantra is “to be where our candidates and clients are” and whether that is on websites, mobile devices, social networks or beyond, our digital strategy is proving key to how we deliver our knowledge and expertise to our stakeholders.”

Harvey Nash, a global professional recruitment consultancy and IT outsourcing service provider, is committed to delivering the very best talent and IT solutions to a broad base of international clients. The Group is a trusted advisor to some of the world’s leading business, governments and institutions. Operating from 35 offices covering the USA, Europe and Asia, its talented professionals pursue the highest levels of integrity and quality in providing a unique portfolio of services: executive search, interim management, IT and finance recruitment and IT outsourcing.

Source:http://www.prnewswire.com/news-releases/harvey-nash—first-recruitment-company-in-the-world-to-launch-ipad-app-91587974.html

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Malicious activity in emerging regions a threat to all business, says Symantec

April 20th, 2010

Businesses need to take note of the increase in malicious cyber activity in emerging countries, particularly those offshore and outsourced operations, says Symantec.

Although this trend has been noted before, it became more pronounced in 2009, according to Symantec’s latest Global Internet Security Threat Report.

This is having a significant impact on organisations outside those regions, said Kevin Hogan, senior manager security response for the EMEA region at Symantec.

Many organisations have offshore IT operations in countries such as India either directly or indirectly through outsourcing suppliers, he told Computer Weekly.

In malicious activity rankings, India moved up from 11th position in 2008 to fifth in 2009, while Brazil moved up from fifth position to third, according to the Symantec report.

“Security threats that have come and gone in other parts of the world often linger in emerging countries where they can be passed on to US and European companies through offshore operations,” he said.

Organisations need to recognise their dependency on the security of their own offshore operations and those of their outsourcing suppliers, said Hogan.

“Some organisations that were affected by the December cyber attacks first reported by Google the following month were not directly targeted,” he said.

An outsourcing organisation passed on the Hydraq Trojan infection of one of its targeted clients to other clients, providing evidence that this type of security risk is real, said Hogan.

Security risk assessments should, therefore, include an inspection of all offshore and outsourcing operations, he said.

Most of the other trends highlighted by the report remain largely the same as they have been for the past two to three years, said Hogan.

Targeted cyber attacks, for example, continue to be a problem, but awareness of this kind of attack has been heightened since Google announced publicly that it had been hit along with at least 20 others big US companies.

Although awareness of this type of attack is good, Hogan said it was important not to place too much emphasis on targeted attacks to the detriment of other types of threat.

The report also highlighted continuing trends of attack tookits making cybercrime easier than ever and the unabated growth of web-based attacks.

A toolkit called Zeus (Zbot) can be purchased for as little as $700 online to automate the process of creating customised malware for stealing personal information the report said.

Researchers also found that 2009 saw a dramatic growth in the number of Web-based attacks targeted at PDF viewers, which accounted for 49% of Web-based attacks, compared with 11% in 2008.

Source:http://www.computerweekly.com/Articles/2010/04/20/240967/malicious-activity-in-emerging-regions-a-threat-to-all-business-says.htm

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Outsourcing makes good business sense

April 20th, 2010

UAE. The boom times may be over, but companies in the automation and ELV industry can still thrive by outsourcing select functions with important downtime: Design, Schematic, programming, or commissioning for instance, said Fayssal Daoud, Chairman of Circuit Holding, an extra low voltage (ELV) automation systems consultancy.

Daoud, speaking on the opening day of PALME 2010, the region’s only trade event dedicated to professional lighting, audio, music, entertainment, audio visual and systems integration industry, explained how companies can maximise profit margins by employing specialist contractors when undertaking projects.

“What you pay can be minimised as you only pay for what you use. If you count, for example, the cost of one outsourced working hour, you will find it comes very low compared to a permanently hired project manager’s.

Because during a slow economy, when you don’t have a lot of business, certain functions –depending on industry and nature of work- have a lot of down time, sitting there not working a full day.

Therefore, it makes financial, as well as common, sense to outsource select jobs” said Daoud during his presentation entitled Crisis-proof business models for system integrators.

Although the concept of outsourcing has been around for many years, Daoud, says it was never thought of in and around the automation industry. This concept started to be applied few years back to the IT industry, but never found its was to the ELV market.

“We have been trying to push the concept of outsourcing since the downturn took hold because it’s a very attractive business model, both in the current situation and will be for years to come. It has been very successful in the IT world and I see many parallels in the automation and AV system integration industry.”

“During the boom times, there were lots of projects to sustain the number of companies in the market but as the recession hit there were less to go round, therefore we recommend companies to specialise in one area and own that rather than trying to pitch for work across the board,” he added.

Daoud, who launched Circuit Gulf, the UAE arm of Circuit Holding at this week’s exhibition, also believes system integrators need to look to the healthcare and education sectors for future growth.

“Some $2 Trillion worth of projects is under way in the six GGC countries but the heyday for high-end luxury apartments and hospitality sectors are gone. As a result, we will see more investment in education and healthcare.

There is a lot of room in the GCC for these sectors due to the fact spending in the MENA region is just 2-4 per cent of the GDP compared to 8-14 per cent in Europe and North America,” said Daoud.

He also believes video conferencing, classroom broadcasting and archiving technologies can be effective in both sectors to enhance learning, while specifically eyeing healthcare diagnostics and classrooms as key areas of focus.

“We need to be pushing things like the importance of having multi-media classrooms, and innovative, tech savvy techniques to share and spread knowledge in our region.

We should deeply consider the effect of our decisions today on the coming generations and enable them in all possible way to gain, benefit from, and spread back knowledge.

Source:http://www.bi-me.com/main.php?id=46110&t=1&c=33&cg=4&mset=

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Virtual Servers Become More Effective Tool for Expanding Business Processes

April 20th, 2010

Virtual technologies are becoming an increasingly required and more convenient solution for different companies helping to dispread the business processes around the world, observes European data center operator DEAC.

RIGA, Latvia, April 20 /PRNewswire/ — Virtual technologies are becoming an increasingly required and more convenient solution for different companies helping to dispread the business processes around the world, observes European data center operator DEAC.

That is an especially essential matter in economic conditions, when an issue of cost reduction arises very intensely. At the same time, IT experts warn entrepreneurs more and more about the risks of virtual servers and call for data storage in data centers where virtualization is maintained and monitored by the advanced software and highly skilled IT professionals.

Since its emergence in 2003, virtualization has made very fast progress and been identified as one of TOP10 strategic technologies. CDW released the results of its Server Virtualization Life Cycle Report that shows that 90% of organizations with 100 employees or more reported implementation of server virtualization at some level.

DEAC CEO Andris Gailitis describes the situation: “Our goal is to keep pace with the modern technologies. That is why from the early 2000s we offer to our customer, for safer and more effective business spread, the virtualization solutions. Now we are able to say that the amount of requests for DEAC virtual servers is very progressive – in [the] year 2009 [the] number of virtual server demands has increased 100% from a year ago, despite the crisis. The data of [the] first quarter of 2010 shows that also in this year the gain will be about 100%.”

Virtualization is used as consolidation tool that can lower costs both directly, through an immediate reduction in power and cooling costs, and indirectly, through a reduction in IT administrative costs associated with server hardware and the layers of infrastructure software management. That results in warranty of business continuity. IDC analysis of the potential of lower IT costs finds that adopting a simple virtualized infrastructure can result in a reduction of up to 35% of total annual server costs per user compared with an unvirtualized server configuration. Advanced virtualization infrastructure can deliver a total reduction of up to 52% per user per year.

“We are lively, expanding our activities in Russia’s market, and have noticed that also demands on virtualization there are increasing,” says Gailitis, adding that even more conservative and cautious costumers start to appreciate virtualization as a safe tool for reducing expanses.
Analytics warn entrepreneurs about the risks of using virtual infrastructure and call them to pay additional attention to this matter. According to a report from Gartner, through 2012, 60% of virtualized servers will be less secure than the physical servers they replace, revealed the findings.

“Virtualization is a safe and repeatedly proved technology, but it should be treated just as carefully as physical systems. Mainly risks involve [the] wrong choice of solutions and unprofessional technical support. One should take into consideration that the new – virtual – environment is being established that significantly differs from the physical. That is why DEAC offers customers to use virtual server test regime for one month free of charge,” Gailitis says.

DEAC has worked out safe and effective solutions for small and medium business needs. For example, a virtual server solution, offered by DEAC, is based on several powerful physical servers, DELL PowerEdge 2950, which are equipped with 2 Quad Core processors, 32-64 GB RAM, and high-speed SAS hard drives with 15000 rpm starting from EUR29/month. For big corporative companies we suggest they elaborate with an individual virtualization solution that is maximally adjusted to business demands.

Source:http://www.prnewswire.com/news-releases/virtual-servers-become-more-effective-tool-for-expanding-business-processes-91580234.html

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