Archive for April, 2010

TechM, Wipro vie for $1 bn deal from NZ’s top telco

April 27th, 2010

ndia’s top outsourcing vendors Tech Mahindra and Wipro, apart from multinational rivals IBM and HP, are currently in discussions with Telecom Corp, New Zealand’s biggest phone firm, for a contract potentially worth up to $1 billion.

The telco plans to cut costs and improve profits by outsourcing non-core IT work, people familiar with the company’s decision making told ET last week.

Telecom Corp had signed a $1.5-billion IT infrastructure management contract in 1999 with EDS (now owned by HP), which is due to expire this year.

“This is among some of the top outsourcing renewals being chased by almost everybody. Incumbents are under pressure to compete with new bidders ready to do more with less,” said a person familiar with the discussions. He requested anonymity because he is not authorised by his company to speak with media about the transaction.

According to outsourcing advisory firm TPI, deals worth between $10 billion and $12 billion in annual contract value due to expire in 2010 will be renegotiated.

There is no formal tender issued yet, but several vendors, including IBM, HP and Tech Mahindra, are among those in discussions with the phone firm, the person added.

When contacted by ET on Monday, a Telecom New Zealand spokeperson confirmed the discussions but declined to elaborate further.

“We are in early stages of reviewing our partnership arrangements and as such have asked several vendors to present us with options to review,” said Ian Bonnar, a spokesperson of the phone firm. “We have not revealed the names of the vendors involved in the process as it is commercially sensitive,” Mr Bonnar added.

An outsourcing expert tracking the sector told ET on conditions of anonymity that Indian vendors stand good chance to win the application development and maintenance portion of the contract worth around $400 million.

“HP-EDS and IBM are primarily competing for the infrastructure management contract, but also trying to pitch a bundled deal in order to keep Indian vendors at bay,” the outsourcing expert added.

Dominion Post, New Zealand’s leading newspaper had reported earlier this year in February that the phone firm plans to shift at least 400 jobs overseas in a bid to cut costs.

However, it’s still not clear if Telecom New Zealand plans to offshore all the IT jobs or retain a significant chunk within the country. “It’s too early to say if this review will involve any further outsourcing or offshoring. We are unlikely to make any major decisions on this in the near future,” Mr Bonnar of Telecom New Zealand added.

Source:http://economictimes.indiatimes.com/infotech/ites/TechM-Wipro-vie-for-1-bn-deal-from-NZs-top-telco/articleshow/5861516.cms

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How to find a google AdWords qualified company

April 27th, 2010

Google commands a 92 per cent share of the search market in the UK . Invariably, this has helped to make their paid search platform, Google AdWords, the most competitive and lucrative for advertisers.

With greater volumes of search traffic passing through the pages of Google each day, their SERPs are the place to get seen. Whilst Yahoo, Bing and the other search engines offer their own platforms, it is AdWords that most go to by default. This has created greater competition; helping to push up bid prices, Google profits and the expertise required to effectively manage a profitable campaign.

The balance that we all need to find is expense versus return. ROI is vital to a website and is at the forefront of most website owners and Pay Per Click Management agencies thoughts. Therefore it is vital that you are able to manage spend and ensure that your PPC campaigns are targeting the phrases that will return the highest yields.

Why Choose a Google AdWords Qualified Company?

If you are unable to manage your PPC advertising yourself, this will mean outsourcing it to a professional company. This requires a great deal of faith and trust. You have to be sure that the expense of hiring an outside agency will ultimately provide more benefit than it does cost. So what exactly should you be looking for when tracking down a company to manage your Google AdWords?

First and foremost, the PPC agency should be Google AdWords qualified Company. This means that their staff have passed the examinations provided by Google and are therefore knowledgeable about the platform and the best practices for optimising Pay Per Click advertising campaigns on it.

Google will only officially supply this accreditation to companies that meet their requirements; therefore you can be sure that PPC agencies showing the Google AdWords Qualified badge have worked hard to develop their skills in accordance with official guidelines [see: The Importance of Using a Google AdWords Qualified Company]. Or at least that’s how it should be.

How to Avoid Companies with False Accreditations

There are some unscrupulous types who have cottoned on to this accreditation being a sign of professionalism and trustworthiness, choosing to dishonestly claim that they are an AdWords Qualified Company despite never having taken the exams. This, unfortunately, comes as part and parcel with an industry that has a huge revenue turnover and massive potential for returns, just as with SEO in fact[see: 5 Questions You Should Be Asking Before Outsourcing SEO].

The first thing you should do is click on the Google AdWords Qualified Company symbol that they are, presumably, displaying. Any officially certified Google AdWords Company will have an embedded link within the image, leading to its own Google Certification Program page (see below for example). This is hosted by Google and therefore provides the most conclusive evidence to support their claim of being a certified business.

If there isn’t an embedded link, this should raise a little suspicion; although there is one final test you can do just to make sure. Google have now created an easy way for business to find AdWords Qualified Companies.

Using Google Partner Search

Google Partner Search is a new innovation from the search giant. It helps you to track down Google Qualified companies in your area and budget range. This will allow you to filter out all of the pretenders and get straight to those who obtained the qualifications that will better benefit your PPC campaigns on Google. Partner Search refines the whole process and allows you to bi-pass the potential pitfalls of a general online search .

Unfortunately this hasn’t yet been enabled for UK searchers, although full search capabilities should be in operation within the next fortnight. For now though, if you are in the UK and want to check on company’s AdWords status, there is a simple Search by Partner Name function beneath the main search. This will return any qualified businesses with the name you’ve entered. So if yours doesn’t come up, they aren’t qualified.

In terms of quality assurance for the AdWords environment, official Google Certification is the highest available standard. It isn’t an absolute guarantee, but it is the best the industry is able to offer when it comes to measuring quality in services. You should still do background checks to see how they have performed for others clients; so make sure you look out for case studies, testimonials and any personal recommendations you can obtain.

So if you’re looking for PPC management services and don’t want to get stung by a fraud, make sure they are fully qualified to manage your account.
You might be interested in the following related posts:

The Importance of Using a Google AdWords Qualified Company

Professional Photography Software Company Select Impact Media

So, Why Would You Use Google AdWords Services?

Hampshire PPC Specialists Selected by Document Scanning Company

Google AdWords Search Partner Statistics Uncovered!

Source:http://www.impactmedia.co.uk/blog/pay-per-click-ppc/google-adwords/how-to-find-a-google-adwords-qualified-company-2903/

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Fontline IT stocks are safe: Deven Choksey

April 27th, 2010

What’s your call really on IT right now? Ones the numbers are pretty much out of the way, do you think people would give the sector a miss or is there a sense that perhaps there should be a revaluation of the prospects thereby a revaluations of the stocks?

First look at the business scenario for IT and then probably look at the valuation in the trading opportunity in the market. As far as the business scenario is concerned probably I think they are once again back into better times because I think US has once again gone into a complete outsourcing model I think which is very aggressive kind of a stance that they have taken given the kind of healthcare related expenditure that those companies incurring they are now minimising their cost in their own shore by outsourcing as much as possible so it in a way counterproductive to US but I think we will not talk on that subject for the time being but Indian IT companies definitely I think stands benefited more because of amount of business which is growing into them and they are back into 15% plus kind of a growth and dollar terms in this financial year.

As far as valuation goes in this particular financial year 2010-2011 I believe that the valuations are not going to scale up very significantly because the rupee against the dollar in different different parts of the year is going to play a spoilsport and that is where I think you are going to see a range bound completely tight range bound movement happening into most of the IT stocks.

In my view point, one can safely trade most of the frontline stocks between 18 to 24 or 25 PE range in which I think one can buy and sell closer to the lower end of the PE band and sell at the higher end of the PE band and probably clear it out. So if you translate to the price then Infosys could be I think between 2400 to 3000 and I think one company within the rank which looks little bit more interesting on valuation which is HCL Technology the result that they have come out with and the kind of growth that we are seeing in this company on a valuations parameter it appears to be I think a better face for earning higher appreciation.

Source:http://economictimes.indiatimes.com/markets/stocks/views/recommendations/Fontline-IT-stocks-are-safe-Deven-Choksey/articleshow/5859891.cms

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Siemens/talecris win best partnership in the outsourcing excellence awards

April 27th, 2010

Siemens IT Solutions and Services, Inc. and Talecris Biotherapeutics received the prestigious “Best Partnership” award in technology outsourcing during the 2010 Outsource Excellence Awards. The award recognizes excellence in IT collaboration and partnering to achieve business goals and is bestowed by the Outsourcing Center, an online community specializing in thought leadership, best practices and innovation in outsourcing. The annual competition is also supported by the Everest Group consulting firm and Forbes Magazine. The Awards will be presented in Dallas at the “Oscars of Outsourcing” on June 8, 2010.

When Talecris and Siemens entered their partnership, Talecris faced substantial IT challenges, including a highly complex carve-out of existing infrastructure and systems from its previous owner. These areas included data center management, network management, service desk, end-user computing, and application development and maintenance as well as developing systems for new business functions and supporting the acquisition and build-out of its new plasma collection business.

“We were looking for an IT partner to help us through an extremely dynamic period in our history,” said Jim Engle, Chief Information Officer of Talecris. “We were simultaneously being carved out from our previous company and rapidly expanding our business. We needed a company with innovation experience and outstanding customer service. After going through a rigorous review process, we selected Siemens. They have served as a critical partner in helping Talecris achieve business results,” Engle said.

Receiving this prestigious award affirms the effectiveness of the Talecris and Siemens partnership – and the relationship continues to deliver ongoing results, according to Jim Takes, Senior Vice President of Siemens. “Talecris continues to be an excellent partner,” Takes said. “They have joined with us for a full suite of robust IT services and have integrated our people seamlessly into their own organization. We are included in their strategic and tactical meetings and encouraged to offer ideas for improvements and innovation. Their cooperation in our robust governance processes ensures a highly coordinated management approach. We simply could not ask for a more enlightened or cooperative partner than Talecris.”

Source:http://www.prnewswire.com/news-releases/siemenstalecris-win-best-partnership-in-the-outsourcing-excellence-awards-92089144.html

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MTS inks outsourcing deal with Nokia Siemens

April 27th, 2010

Russian mobile operator Mobile TeleSystems has outsourced the daily operation and maintenance of its entire mobile network across central Russia to Nokia Siemens Network as part of a five-year managed services deal. Under the terms of the contract, MTS will transfer around 250 employees to Nokia Siemens Networks. With this managed services agreement, MTS will be able to simplify its overall network operations model, particularly needed for roll-out of 3G services in Russia’s central region.

Source:http://it.tmcnet.com/news/2010/04/26/4749360.htm

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You vs. cloud computing

April 27th, 2010

Unless you’ve been living under a rock, you’ve heard the blare of that hypemonster known as cloud computing. The cloud is revolutionizing the way we do IT, cutting costs, increasing efficiency, and making perfect toast every time! Such cheerleading about a field that barely exists is enough to make anyone tune out.

But don’t change the channel quite yet. This is important: The cloud is growing up and it wants you, your infrastructure, and quite possibly your job. Your organization’s management is reading some of the same trade magazines you’re starting to ignore — and the cloud’s promise of better, faster, cheaper IT sounds good to them.

Fortunately, you have an edge: You know it’s coming. Unlike the legions of well-paid software developers who promptly found themselves out of a job after they were outsourced early in the last decade, we in IT at least have had an ample chance to see what’s coming and adapt before it arrives in full force. In reality, the growing prospect of the wholesale outsourcing of much of our infrastructure is an excellent opportunity to up our game and do what we do better.

Why cloud computing is inevitable

Simply put, the cloud will be able to do what your infrastructure does, but cheaper. There is really no way to fight that. Economies of scale dictate that no matter how big you are, someone who is 10 or 100 times bigger will be able to deliver the same infrastructure resources as you but at a lower price point than you can on your own. Whether you’re talking about software licensing, storage, or compute resources, it’s all cheaper when you buy more and build bigger. If you need an example, just look at what Wal-Mart has done to mom-and-pop retail.

Of course, we all know that outsourcing isn’t always the best option. Pretty much everyone has at least heard about major development projects that were outsourced to cheap programming resources only to run many times over the cost of in-house development. In many cases, the failure of outsourced software projects was due to a simple fact often overlooked: Outsourcing is a hell of a lot of work.

If you want an outside company to do anything complicated for you — whether that’s writing a new module for your line of business application or shoveling your entire server, desktop, and storage environment into the cloud — a massive amount of footwork awaits if the level of service is going to resemble what you’d have if you performed it in-house. You can’t expect an outside party to sail in and understand all of your organization’s specific needs without a major effort on your part.

Failure to realize that fact is what caused so many development projects to be outsourced — only to fall flat on their faces and be brought back in house. Nonetheless, that didn’t save a bunch of dedicated software developers from losing their jobs. I think the same cycle of impulsive adoption, corrective action, and eventual permanent replacement will play itself out with the cloud if we’re not careful.

Adapt or die

As the saying goes, the best defense is a good offense. The best thing we in IT can do to head off the specter of rampant over-outsourcing is to reimagine ourselves and our infrastructures as service providers, with our organizations as the only customer. This forces you to take two important steps: sell your value to the organization as if you’re trying to win their business and put a renewed focus on customer service.

In most organizations, IT is viewed as an enormous cost center rather than a value generator. If you allow this perception to fester and grow, the services you provide will be replaced with an (apparently) less expensive cloudsourced version. The only thing you really have to differentiate yourself from the cloud is the unique knowledge you have of your organization and what makes it tick. No amount of outsourcing — to the cloud or otherwise — can replace that. But if you want your organization to understand that, you have to sell it and follow through with providing it on a regular basis.

Customer service is always a touchy subject in IT. Our nearly universal disdain for “users,” while fun to joke about, has caused a deep rift between IT and the rest of the organization. I know of many companies where the prospect of calling the IT help desk is akin to anticipating a trip to the DMV. The DMV can get away with providing poor customer service — it’s part of the government, and short of armed revolution, it can’t be replaced. Neither could IT — until now. Today, the technology really does exist to do everything you do somewhere else. We can no longer afford to be viewed as a necessary evil.

Put yourself in the driver’s seat

Another important thing we can’t ignore is that, as with generalized outsourcing, cloud services will in some cases be the best choice for your organization. Digging in your heels and flatly insisting that IT can always do things better in-house will erode your credibility and make you look defensive — much as the mainframe guys of yesteryear were overtaken the PC. If you proactively beat your management to the punch and start suggesting areas that make business sense to move into the cloud, you’ll put yourself in the driver’s seat and avoid having the cloud jammed down your throat.

No matter what happens with the cloud and IT as a service, I’m thoroughly convinced that if IT is going escape a massively uncomfortable outsourcing purge, we’re going to need to change the way we do business. Start thinking about that now before it’s too late.

Source:http://www.infoworld.com/d/data-explosion/you-vs-cloud-computing-702?page=0,1

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The other risks in offshoring

April 27th, 2010

The big worry in outsourcing and offshoring has always been data theft. There are armed guards situated outside the doors of many outsourcing companies and heavy security even on the inside.

But the bigger threat may have less to do breaking into the building and stealing intellectual property than the plume of smoke emerging from a volcano in Iceland or a terrorist attack in India. Natural disasters, geopolitical unrest and infrastructure breakdowns can wreak havoc on outsourcing or offshoring operations. And even worse, they almost always surprise the companies doing business there.

“If there’s a city outage for the outsourcing operation, very few companies have ever planned for that,” says Sudin Apte, principal analyst in Forrester Research’s ( FORR – news – people ) IT services sourcing and vendor management research group. “When they talk about business continuity and disaster recovery, they focus on infrastructure and applications and how those can be moved from one city to another. Process knowledge and people are seldom included in the plan.”

Apte, who is based in India, is witnessing these problems firsthand. He says the annual flooding in Mumbai is a much, much bigger risk than theft of corporate secrets. But while companies routinely plan their data center recovery, they don’t have the same kind of follow-through when it comes to their outsourcing operations.

So what should they think about to mitigate the risk of problems with outsourcing or offshoring? Here are some of Forrester’s suggestions:

–Fully understand the people, resources and the process involved in an operation. Most companies look at the cost savings or amount of expertise they can gain by contracting out an operation such as application development or management–or by locating it somewhere else under their own management–but they don’t understand what’s involved in actually running that operation. It requires people and a deep understanding of the process necessary to make it work smoothly, and that’s something you can’t just easily shift from one location to the next if you don’t plan for it up front.
–Hedge your bets the same way you’d hedge the risk in a financial portfolio. Push a service provider to add other locations so that if something happens in one, work can continue with a minimum of disruption in another. The best strategy is to add operations in other countries, which is a lesson manufacturing companies learned during the 2003 SARS (severe acute respiratory syndrome) outbreak in China, which basically shut down all commerce for several months. Unfortunately that isn’t always possible in IT, because the skilled labor pool in India is significantly larger than it is in other locations. If other countries are not an option, then look in other parts of the same country.

–Understand the costs of downtime and build that into the financial model. Many companies focus on the infrastructure of an outsourcer. They need to look deeper into the infrastructure of the city where the outsourcer is located and any potential problems that might occur there.

This isn’t something companies would even raise an eyebrow about on their home turf. It’s part of good business management practices. Yet it’s surprising how it gets swept under the carpet when it moves beyond the direct oversight of a corporation.

“If you pull out all the wires from the walls in any company, they won’t survive more than eight or nine minutes, no matter where they are,” says Apte. “But only 10% to 15% of all the companies doing offshoring understand all the risks. Those are the mature offshore buyers. They’ve gone through this for the past 10 or 15 years. Others understand the risk only partly.”

Source:http://www.forbes.com/2010/04/24/natural-disasters-outsourcing-technology-cio-network-offshoring.html?boxes=Homepagechannels

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