Archive for July, 2010

Capgemini acquires Swedish ITO/BPO provider

July 30th, 2010

Global consulting, technology and outsourcing services firm Capgemini has acquired Swedish IT and Business Process Outsourcing (BPO) service provider Skvader Systems AB (Skvader), specialising in the provision of smart meter deployment services and smart meter managed business services. .

As a part of the deal Capgemini will acquire a software solution developed by Skvader to support its managed business services contracts.

The software is sold to other utilities and utility service providers through SaaS contracts to support 1 million smart meter deployments. This software will enhance the solutions that Capgemini currently deploys in support of Smart Energy Services contracts in Europe and North America

Skvader is one of the delivery partners of Landis+Gyr, a leading provider of integrated energy management solutions, in Landis+Gyr’s contract for the installation and management of 400,000 meters in Sweden at power and gas company E.ON.

This will now be a part of Capgemini’s Smart Energy Services business, further extending the company’s share of both the Swedish and European smart energy market.

Capgemini estimates that over €300m of smart energy service contracts will come to the Nordics over the next three years, underlining the strategic significance of this acquisition.

Source:http://www.sourcingfocus.com/index.php/site/newsitem/2470/

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Tatvasoft, leading IT outsourcing company offers seamless software application migration services

July 30th, 2010

Tatvasoft, an IT outsourcing company offers its global clientele, highly customized software application migration services. As an IT outsourcing company, It has the expertise to deliver software migration or software re-engineering services, which shift the clients’ applications from the existing platforms to the latest ones so that they can effortlessly embrace the latest software and web technologies, flawlessly.

The skills of its professionals, enables Tatvasoft to preserve the legacy and integrity of the transferred data. The company follows the proven migration practices to ensure system’s stability and quality. Tatvasoft is well versed in developing and implementing software migration/application porting projects. The experts at company replace the legacy system and move the data from the legacy application to the new application without disturbing the integrity of the data. They also integrate the legacy system and new Internet driven technologies so that clients are able to integrate the latest software and web technological offerings in their daily business or workplace practices. The clients gain from company’s technical finesse to deliver their applications and business logic to new architectures, languages and web-based environments.

TatvaSoft as an experienced IT outsourcing company understands the software migration problems of its clientele. It works towards providing better migration solutions so that its outsourcing partners can successfully migrate and integrate data, which has many concurrent users. Tatvasoft, web-enables the legacy OLTP applications. It replaces middleware by Windows compliant application server and redesigns the user interface with OO (.Net Apps) and in process makes the application, worthy for use at an enterprise level, especially in e-commerce.

Source:http://www.i-newswire.com/tatvasoft-leading-it-outsourcing/51440

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Infrastructure limiting speeds for online IT services

July 30th, 2010

IT outsourcing in London users have been told that the UK’s existing internet infrastructure is placing limits on their ability to achieve faster and faster speeds.

Richard Patterson, spokesperson for broadband-expert.co.uk, has highlighted the fact that there is pressure on ISPs to deliver this despite the fact that they are restricted by the physical networks currently in place.

Companies should be able to determine the speeds that they are likely to receive by inquiring with their provider and this should allow them to optimise the speed at which they can access applications through software-as-a-service, as well as the more general speed of internet access.

Mr Patterson explained: “If some of the measures suggested by Ofcom under the voluntary code are adopted, this would go a long way to resolving the issue.”

His comments follow a report by Ofcom that found that many internet users are not achieving the speed that the connection was advertised with.

Source:http://www.ihotdesk.com/article/800009333/Infrastructure-limiting-speeds-for-online-IT-services

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Indian BPO facing huge churn of employees

July 30th, 2010

Human Resources (HR) department heads, particularly of the Business Process Outsourcing (BPO) firms are facing the toughest time due to the sudden jump in the attrition rates.

Even the large BPO firms are hit. During the April-June quarter of the financial year 2010-11, attrition rate in TCS BPO was around 20 per cent, and the same in Wipro was around 16 per cent respectively.

According to HR consulting firm Talentar Managing Director Abhishek Udayai, “The job market is opening up and this has become a worry for many BPO firms. BPO is the highest job provider in the IT industry and the attrition rate is also very high in this segment.”

However, headhunters feel that BPO sector which was considered as a stepping stone to an IT or corporate career is slowly transforming and the industry has gone up the value chain.

The industry has matured significantly and is one of the fastest growing sectors of India, employing 7,68,000 professionals which also pose a challenge of getting right talent. “The workforce is the backbone of the BPO industry and the attrition rates have becoming alarmingly high for the industry.

Most of the companies are promoting within to ensure that talent remains,” said Kelly Services India Managing Director Kamal Karanth. HR firms and companies feel that the high rate of attrition is due to a sudden spurt in the market after dormancy for more than four quarters.

As software companies started hiring engineers, employees in the BPO companies are changing their field to software development. This is also a reason for worry.

CBaySystems VP – HR Sanjay Shanmugaum believes that, “the average attrition rate in the BPO sector is higher than the normal IT industry average. The key challenge faced by employers is the need to retain talented employees.

Attrition is seen high among junior level people.” Many HR heads of the top IT and ITeS companies have come out with new methods to curb attrition. Companies are giving salary hikes and promotions to retain talent to address the problem. They are even signing non-poaching agreements— first time in the history of the Indian IT industry.

According to Patini Computers Senior Vice President and Global Head – BPO Sanjiv Kapur, “Salary hike is not only reason for employees leaving the organisation.

Corporates should provide ample growth opportunities and a well-defined career track for growth.”

Experts believe that the attrition rate will be stabilised after one or two quarters.

Source:http://www.deccanherald.com/content/84978/indian-bpo-facing-huge-churn.html

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IT companies ‘back’ government

July 30th, 2010

The IT industry supports the government’s approach to cutting costs, a report has suggested.

Industry believes that the government ICT strategy is long overview, according to a report from TechMarketView. This conclusion is based on conversations with 19 key ICT companies about the new ICT strategy published in the Cabinet Office Structural Reform Plan.

100 per cent of companies questioned are said to support reform of government IT procurement, outsourcing of back off functions and reduced spending on consultancy.

“The new government has placed huge emphasis on IT in its quest to reduce spending and pay back the UK’s national debt,” said Georgina O’Toole, author of the report. “However, with recent news of the £1m cap on IT project spend, ICT suppliers are increasingly trying to demonstrate that their services are not ‘just another cost to be cut’ but that ICT should play a central role in supporting government-wide reform.”

“Whilst the results of this survey demonstrate that the ICT industry is largely in agreement with the new government’s policies on IT reform and spending, some policy areas are seen as contradictory or unclear,” she said.

O’Toole added that the government further clarify their position, especially on topics such as contract size limit and open source software.

Source:http://www.publicservice.co.uk/news_story.asp?id=13665

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IT buyers turning to SaaS from packaged software

July 30th, 2010

Businesses are continuing to outsource their IT to third-party specialists, according to a new IDC report.

Research conducted by the firm indicates that the global Software-as-a-Service (SaaS) market is set to be worth £30 billion by 2014, compared to just £8.4 billion today.

The study found that fewer companies are choosing to buy traditional packaged software, instead preferring to pay for the IT tools they need on a subscription basis.

IDC predicts that 34 per cent of all new business software purchases will be consumed via SaaS by 2014 – potentially good news for the London IT outsourcing industry.

Emphasising the emerging trend, some 85 per cent of new businesses entering the IT software market are set to be SaaS-focused by 2012, the company found.

Robert Mahowald, vice-president for SaaS and cloud services research at IDC, noted that the SaaS model has quickly become mainstream and is helping businesses to reduce costs.

Earlier this month, Robert Whiteley, chief information officer of Forrester Research, told Networkworld.com that businesses may be able to cope with reduced budgets by outsourcing their IT.

Source:http://www.ihotdesk.com/article/800007898/IT-buyers-turning-to-SaaS-from-packaged-software

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Of expectations and legal battles in outsourcing

July 30th, 2010

In recent weeks, IBM has been in the news the other side of the Atlantic as it tries to respond to two legal cases brought against it.
It is interesting to note how, despite the maturity of the outsourcing sector – particularly in the US – it seems as though the issue of managing relationships and expectations is a skill that has not yet been perfected by the industry.

Although legal action is always considered a ‘last resort’ option, the public sector is under pressure to deliver savings and efficiencies. When multi-million contracts have ‘gone wrong’ or are ‘significantly delayed’ somebody – usually, it seems, the vendor – has to be responsible.

But it’s much more complicated than that. More often than not, vendors and suppliers deliver what they were asked to deliver. Where they seem to fail is to meet the untold or unclarified expectations that buyers and end-users have in mind for the venture.

A recent example is IBM, who has been facing two recent legal disputes in the US.
The first of these relates to the state of Texas and a seven-page letter the Texas Department of Information Resources sent detailing what it calls “chronic failures” of agreed service levels.

In the letter Texas expresses to IBM it remains discontented with services provided, indicating that IBM is in breach of its contract.

This is not a new problem. Indeed, it has been ongoing since 2008, when the state first suspended the $863m, seven-year outsourcing contract.
IBM obviously contests the claims. Meanwhile, Texas IT officials are hoping for the best and preparing for the worst after giving IBM 30 days to fix alleged problems with the state’s $863 million data centre outsourcing contract.

The second incident involves the state of Indiana and sees both parties suing each other since May. The heart of the problem: Indiana’s 10-year, $1.6bn outsourcing contract with IBM to streamline welfare eligibility in the state, which the state governor cancelled in October last year.

According to reports, the Indiana Family and Social Services Administration (FSSA) is trying to recover $437.6m it paid IBM until 31 January. The lawsuit also includes costs incurred for any third-party lawsuits, federal penalties and employee overtime, plus triple damages worth more than $1.3bn.
As for IBM, it has counter-sued Indiana for $52.8m reportedly for hardware, software and automated processes Indiana IBM left there and is still using.

In both cases, each side disputes the other’s claims. We’ll just have to stay tuned to see how the saga unfolds; only then will we get sight of what the possible repercussions for the outsourcing industry will be.

Source:http://www.sourcingfocus.com/index.php/site/newsanalysisitem/2471/

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