Archive for July, 2010

UK Government hints at offshoring IT to India

July 30th, 2010

UK Prime Minister David Cameron has hinted that his Government might be prepared to hand important public sector computing contracts to Indian suppliers.

The comments were made yesterday during a visit to Indian outsourcing firm Infosys Technologies, as part of a coalition government trade delegation to the subcontinent.

According to a report on IT news site Public Technology, Cameron told his hosts:

“We are reviewing contracts, we are looking at what we pay for the services we have received. It is like any other business. In terms of being open to outsourcing… you will find Britain one of the most open and progressive countries.”

Perhaps the comments were another example of the PM’s trademark Etonian ‘charm’ – but if they do signal a serious move towards wider offshoring of government IT, it will put the coalition on a direct collision course with public sector unions over UK jobs.

Speaking in February on the establishment of a parliamentary committee to investigate offshoring, Peter Skyte of the trade union Unite told IT mag Computing: “Government procurement needs to take the situation we are in into account. Many UK-based, skilled IT workers have already lost their jobs and we expect there is more to come.

“It is important that there are safeguards for UK workers and that jobs are created onshore, not offshore.”

Putting public sector data processing in the hands of foreign suppliers has also sparked concerns over data security. In April this year, Britain’s previous Labour government came under fire after a Sunday Times investigation revealed that patient records from seven London NHS trusts had been sent for processing in India – in direct contradiction of an earlier government promise not to do so.

In January 2007, former health minister Caroline Flint told parliament that a government plan to digitise patient records would “expressly preclude the transfer of patient information outside the United Kingdom”

Source:http://www.thinq.co.uk/2010/7/29/uk-gov-hints-offshoring-it-india/

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

UK-based BPO player Diligenta opts for TCS’s Cloud-based BaNCS Insurance Platform

July 30th, 2010

UK-based Business Process Outsourcing (BPO) service provider, Diligenta awarded a Cloud-based IT outsourcing contract to India’s Tata Consultancy Services (TCS).

Under the contract, TCS will deploy its BaNCS Insurance platform for the BPO player enabling it to consolidate its two million customer policies from multiple legacy systems onto a single integrated system.

The solution will allow Diligenta to adopt a utility model ensuring that whenever the firm writes a new contract, it can consolidate the policy portfolio of new customers onto the same TCS BaNCS Insurance platform. It will effectively result in the firm achieving better economies of scale. Customers can receive instant quotes for maturities, surrenders and transfers over the phone.

Phiroz Vandrevala, Chairman, Diligenta and Executive Director, TCS said, “The success of this transformation programme reinforces Diligenta’s strong position in the UK Life and Pensions outsourcing market and signifies a step change for the industry, in response to both regulatory reform and changing customer needs. We are well-placed to support customers’ needs in this rapidly-evolving environment, and this project once again demonstrates our ability to deliver real business benefits through our specialised industry expertise.”

Suresh Menon, Chief Executive Officer, Diligenta said, “Diligenta’s state of the art platform and extensive expertise in the UK Life & Pensions industry has ideally positioned us to partner with Phoenix Group to deliver this significant milestone. The transformation process has been successful and we look forward to future opportunities to deliver similar, state of the art projects within the insurance sector.”

Source:http://www.telecomtiger.com/fullstory.aspx?passfrom=enterprisestory&storyid=9693

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Ethical IT Outsourcing is a New Wave !!!

July 30th, 2010

As budgetary constraints often play a major part in IT resourcing decisions, the advantages of IT outsourcing become more attractive for business. However what many organisations fail to realise is that wholesale IT outsourcing can have far reaching implications, not just in HR scenarios, but also the sudden and immediate loss of business knowledge and the company system idiosyncrasies that are all too often taken for granted; which once gone, take time to rebuild and re-learn.

The new form of IT Outsourcing Services that not only prepare and prevent loss of business knowledge, but assist in retaining staff either on or off site. This new approach is called as ETHICAL OUTSOURCING.

Ethical IT Outsourcing Services Business – It’s ethical because, the resources are maintained in the country you operate. In this model, instead of blindly following a high to low cost model that moves your operations to an offshore location, this model work on greater efficiencies with the staff that you have. Companies can genuinely maintain services at a lower cost, if they release their workforce in to a more flexible and focused environment.

It provides the required flexibility to take into account holiday, sickness and ad hoc project work. It’s a win/win scenario. You save costs, with no loss of business knowledge. The company and its shareholders can rest easily at night as there is no off-shoring to tarnish the company image or concern the workforce; and the employees in post get to retain their positions, doing the work they love.

IT Co-sourcing Services

This model is also called as IT Co-sourcing where utilising this model will help you to manage the peaks and troughs that all businesses experience throughout the year. Using some of the methodologies described in ethical outsourcing, allows the tactical and day-to-day activities to be managed holistically, giving organizations the time to concentrate on strategic areas.

This model will deliver an cost effective, tailored IT Outsourcing services, which complement and enhance their own IT resource. The approach is about to assisting organizations with their challenges and to take a consultative approach from the outset. This model will understand organizations challenges; and ultimately takes a flexible approach to provide a bespoke solution that is both cost effective and right for business.

Whatever the business challenges are, from one off IT Project Management through to complete Managed IT Resourcing and IT outsourcing services, this model can deliver IT solutions efficiently and cost effectively.

This will be a very intriguing concept indeed and focus will be on Ethical Outsourcing. The future is Ethical Outsourcing and we will see a rise in the number of contract workers, in-shore or off-shore. Now outsourcing is not only about getting the lowest cost, but also getting value for money. Laws will definitely catch up and companies will go for ethical outsourcing to ensure fair business practice and value for money.

The Ethical Outsourcing model will also provide the intersection of Corporate Social Responsibility (CSR) and global IT outsourcing. Offshore outsourcing of IT and IT enabled services is well established as a business practice towards reducing costs and improving performance. This model will be well recognized as a business strategy to define and defend an organization’s position in the marketplace.

Source:http://www.zdnet.co.uk/blogs/ethical-it-outsourcing-services-10018122/ethical-it-outsourcing-is-a-new-wave-10018123/

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Cameron rules out outsourcing curbs, but wants India to create jobs in UK

July 30th, 2010

On his first visit to India as the British prime minister, Conservative leader David Cameron allayed fears of any curbs on the IT outsourcing by the country’s government departments, even as he asked Indian companies to create more jobs in the UK.

Mr Cameron, who will meet Prime Minister Manmohan Singh in Delhi on Thursday, started his India trip by addressing executives and government officials at Infosys Technologies’ sprawling Bangalore campus on Wednesday. The gathering included Wipro’s billionaire chairman Azim Premji and Infosys founder NR Narayana Murthy.

“You will find Britain one of the most open and progressive countries in terms of being open to outsourcing,” said Mr Cameron when asked about whether his government would curb offshoring contracts with Indian IT companies such as Tata Consultancy Services (TCS).

Mr Cameron, who leads UK’s Conservative-Liberal Democrat coalition government, which has imposed £100-million cap on all government IT contracts, said his government is still reviewing the contracts. He, however, added that Britain will review the outsourcing contracts as part of normal exercise.

“We are reviewing contracts, we are looking at what we pay for the services we have received. It is like any other business,” Mr Cameron said.

For Cameron, who plans to cut nearly $10 billion in government expenditure this year, outsourcing of non-core functions is a tough option, especially given the rising unemployment in the UK.

“I think Mr Cameron would like British skills to contribute to the outsourcing deals that the major Indian outsourcers do in the UK,” said Bob McDowall, senior research director at TowerGroup in the UK.

“He does not want unemployment in the UK to increase as a result of off-shoring deals. Mr Cameron should be able to advise major Indian outsourcers how much of the broadly 25% cut in UK government spending will be delivered through outsourcing both on-shore and off-shore,” Mr McDowall added.

Earlier this year, TCS had won around $800 million contract to manage UK’s state pensions scheme from the Personal Accounts Delivery Authority (PADA). The Conservative party had voted against the auto enrolment legislation, which was part of the contract signed close to the elections.

The new political leadership with Conservative David Cameron at the helm has to deal with high unemployment rate of around 8% by creating more local jobs and, at the same time, cut the government spending by almost $10 billion this year.

“It is a trade mission but I prefer to see it as my jobs mission,” Mr Cameron said.

At a time when UK’s top enterprises such as Vodafone, BT and Barclays are looking to increase their revenues from fast-growing lucrative markets such as India, improving bilateral trade is top on agenda for Mr Cameron.

“The EU-India trade is worth £50 billion a year already, but the possibility is there for dramatic expansion. So let’s seize it,” he said.

Mr Cameron added that his government wants to improve the current annual trade worth $18 billion between the UK and India over next few years.

Source:http://economictimes.indiatimes.com/news/news-by-company/corporate-trends/Cameron-rules-out-outsourcing-curbs-but-wants-India-to-create-jobs-in-UK/articleshow/6230385.cms

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Small towns to generate 3.8 mn IT jobs by 2020: Nasscom

July 29th, 2010

The National Association of Software and Service Companies (Nasscom) Wednesday predicted that the IT sector will directly employ around 10 million people by 2020 with 3.8 million incremental jobs to be created in smaller cities.

And the strength of female workforce in the IT-BPO sector is expected to be around five million by the same year.

“The IT and business process outsourcing (BPO) sectors are expected to employ around 2.5 million by the end of next fiscal up from the current 2.3 million. Looking forward the sector is expected to employ 10 million people by 2020,” Nasscom President Som Mittal told.

According to him, 4.1 million incremental direct jobs are expected to be generated in tier I (bigger) cities while 3.8 million such jobs will be from tier 2/3 locations.

“While the past decade saw the workforce largely from India, the next decade will see nearly 20 percent of the work force are non-Indians. The next decade will see Indian companies migrating to domain specific services from the current delivery centric activities,” Mittal said.

With Indian IT-BPO companies getting integrated with global markets they will focus on the international policies and processes that would impact their operations from the present focus of domestic policies.

Citing Nasscom’s eight best hiring practices, he urged the industry players to adopt the same.

According to Nasscom, some of the best practices are while hiring companies should insist on relieving letter, hire from the campus only in the eighth semester, check on non-compete agreements from customer contracts, employees to serve notice period, discourage frequent job hoppers.

To the query that many leading IT companies insist on bonds making the IT employees a “bonded labour” and do not issue relieving letters even after an employee serves the notice period, Mittal said: “Nasscom does not support such practices. Companies may be resorting to such practices to reduce the attrition.”

“Best practices will also help the employees. Hiring in the industry has touched the pre-2007 levels,” added R.Chandrasekaran, president and managing director, Cognizant Technology Solutions.

Source:http://economictimes.indiatimes.com/news/news-by-industry/jobs/Small-towns-to-generate-38-mn-IT-jobs-by-2020-Nasscom/articleshow/6228936.cms

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

UK outsourcer sets up BPO in Indian town

July 29th, 2010

British outsourcer Xchanging is setting up a business process outsourcing (BPO) center in a town in India, hoping to tap into the low-cost, skilled staff available outside the country’s cities.

The company has already hired about 400 staff locally at Shimoga, northwest of Bangalore, with employment letters issued to another 200 staff, said David Andrews, CEO of Xchanging, in a telephone interview on Wednesday.

The company plans to have 1,000 staff at the center in about 18 months, with an option to scale to a 2,000 seat center.
“We have tested complex processing at Shimoga, and we can get the same standards of delivery there as we can elsewhere,” Andrews said.

India’s outsourcing industry has grown primarily in large urban locations, leading to a large-scale migration of people from towns and rural areas into the cities. About 60 percent of the staff working in the BPO industry comes from Indian towns and villages, according to the National Association of Software and Service Companies (Nasscom).

The rural BPO model has so far been tried mainly by NGOs (nongovernmental organizations). However, as demand for BPO services is booming, including from the domestic market, there is greater interest from outsourcers in setting up centers in small towns and rural areas.

Having a low-cost BPO in Shimoga will help Xchanging better compete for domestic Indian business, Andrews said. As costs in Indian cities increase, and getting quality staff becomes difficult, the company is exploring a model that combines delivery centers in big cities with centers in smaller towns.

The new center in Shimoga will be Xchanging’s fourth major processing center in India. The company employs over 3,400 people in the country, and has three of its top 10 global processing hubs in Bangalore, Gurgaon and Chennai, the company said. It employs over 8,000 staff worldwide.

Xchanging offers business processing services and technology services to support business services, Andrews said. The new center at Shimoga will have IT and BPO staff to reflect the mixed services profile of the company, he said. It will service customers both in India and abroad.

Source:http://www.networkworld.com/news/2010/072810-uk-outsourcer-sets-up-bpo.html?hpg1=bn

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

SoftServe inc. became general sponsor of the “CEE IT Outsourcing review 2009″ research

July 29th, 2010

SoftServe, a leading global provider of proven high quality software development, testing and consulting, announced that the company became the General Sponsor of the “CEE IT Outsourcing Review 2009″ research. The “Central and Eastern European IT Outsourcing Review” is a project of the Central and Eastern European Outsourcing Association (CEEOA).

The main goal of the research is to provide a complete overview of the IT outsourcing services market in Central and Eastern European countries, and to promote the CEE region as a cluster of provision of nearshore IT outsourcing services for the EU countries and offshore outsourcing services for the USA.

The “Central and Eastern Europe IT Outsourcing Review” research was first conducted in early 2008 for the year 2007. The 2007 research report of “Central and Eastern Europe IT Outsourcing Review 2007″ indicated that there was a great interest to the CEE as a prospective region for IT outsourcing services. The report was accessed by an estimated 10,000 people and many research companies used it as a resource for their commercial reports. Thus, in 2008, KPMG referenced the report in their own research ‘Exploring Global Frontiers’.

The data for the research is gathered by interviewing national IT and outsourcing associations; experts; as well as a large number of companies operating in IT outsourcing industry in the CEE region. Currently, the report is the most complete and demanded analytical source about the IT outsourcing market development in the CEE region.

SoftServe Inc., a general sponsor of the research, is one of the major players in the software development outsourcing industry in Central and Eastern Europe with its professional excellence recognized worldwide. The company partners with such industry giants as Microsoft, Oracle, Dell, Adobe, Cisco, and HP.

As a Microsoft Gold Certified Partner since 2004, SoftServe was chosen as a Finalist of the global Microsoft Partner of the Year Award Program in 2006 and 2007. The company was also awarded by Microsoft, Partner of the Year in Central and Eastern Europe in 2008 (Mobility Solutions) and Information Worker (2009). Other key mentions include:

• Inclusion in the 2008 Black Book of Outsourcing, in the Top Ten Outsourcing Providers in Central and Eastern Europe.
• Ranked in the Top 10 to Watch in Emerging European Markets category by GlobalServices 100 of 2008 and 2009, a study recognizing excellence among global IT and BPO service providers.
• Recognized by the International Association of Outsourcing Professionals® (IAOP®) and named to the best outsourcing service provider list of the 2010 Global Outsourcing100®.

SoftServe’s President, Taras Kytsmey noted, “SoftServe takes an active part in the promotion of the CEE region and specifically Ukraine as an outsourcing destination. Therefore, we support the outstanding initiative of the Central and Eastern European Outsourcing Association purposed to provide a full picture of the growing industry landscape in the region”.

To attract more respondents for the research “CEE IT Outsourcing Review 2009”, CEEOA launched the online survey http://research.ceeoa.org. All companies that completed the survey received free company profiles in the online catalogue of IT outsourcing companies from the CEE region – ITOlist.eu (http://itolist.eu). The catalogue ITOlist.eu will be officially launched with the Report issue at the beginning of September.

Source:http://www.webwire.com/ViewPressRel.asp?aId=120611

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks
Get Adobe Flash playerPlugin by wpburn.com wordpress themes