Archive for September, 2010

IT Consolidation with HP and VMware for the Midmarket

September 28th, 2010

HP and VMware can help you realize the full benefits of virtualization. HP offers true end-to-end virtualization solutions ranging from small, remote office deployments to mission-critical data centers. And HP can help you get started right and grow seamlessly—all under one brand, including VMware software. The industry leader in virtualization, VMware equips you with enterprise-class core building blocks that allow you to meet immediate needs and grow as your business changes.

Source:-http://whitepapers.techrepublic.com.com/abstract.aspx?docid=2144813&promo=100503

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IDC outlines keys to success in the outsourced customer care market

September 28th, 2010

IDC has released a new report providing a thorough vendor assessment of the highly competitive market for comprehensive customer care business process outsourcing (BPO), leveraging the IDC MarketScape model. IDC MarketScape reports utilize a rigorous scoring methodology that produces a definitive assessment of each vendor’s current market capabilities and strategies for competing in the future.
The new report, IDC MarketScape: Comprehensive Customer Care BPO, 2010 Vendor Analysis The Guns of August (IDC #224612), looks at a set of players at the leading edge of the customer care BPO services competitive landscape. Based on recent developments in the customer care services market at a time of great economic flux, IDC selected sixteen companies to be benchmarked and profiled in this study: Aegis, Accenture Customer Contact BPO, ACS, APAC, CGS, Convergys, HP Enterprise Services CRM, IBM CRM, NCO, Sitel, StarTek, Stream Global Services, Sykes, TeleTech, Teleperformance, and West.
The IDC MarketScape methodology placed Teleperformance in the “Leaders” category with a number of providers close behind as “Major Players.” The study makes the case that the most important competitive factors in this market are: leadership, size and global reach, strong financials, as well as solid sales, distribution, portfolio and growth strategies, and an eye toward technology’s role in the future of customer care.
“Providers of outsourced customer care face an array of difficulties in today’s economy,” said Stephen Loynd, global program manager, Contact Center Services at IDC. “A tough battle lies ahead, and if words like stalemate and slog best describe the challenging state of the comprehensive

Source:-http://www.echannelline.com/usa/brief.cfm?item=17739

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Virgin brand damaged By IT outsourcing failure

September 28th, 2010

HE risks of outsourcing have been dramatically illustrated with the Virgin Blue computer meltdown, the impact of which is still being felt three days after the reservation system collapsed for 21 hours. Some passengers due to depart on Sunday are still awaiting takeoff. Australian media is packed with images and stories of stranded passengers and stressed staff. It’s an awful look that will continue for at least another day.

The Virgin brand has suffered long-term damage, especially among the business travellers (relatively) new CEO John Borghetti is trying to woo. There’s now talk that Virgin will sack its IT supplier Navitaire, part of Accenture, which had undertaken to limit outages to just three hours, but that appears unlikely.

There are few if any alternatives. More probable is compensation but how do you estimate the cost of damage done? You just can’t put a figure on it. And whatever happens, Virgin Blue is the brand that will pay the price for making the decision to outsource.

Source:-http://www.traveltrends.biz/ttn553-virgin-brand-damaged-by-it-outsourcing-failure/

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IT firms in Gujarat eye new export markets

September 28th, 2010

While the US may continue to be a focus market for the IT industry in Gujarat, the firms are nevertheless widening their export destinations to new territories.

Countries like Japan, Denmark, Sweden and South Africa have caught the fancy of IT companies in Gujarat in the recent times. Apart from offering deals in euros, pounds and Australian dollars, these territories are also helping ease the pressure of dwindling orders from the western market.

“The US will continue to be a focus market for IT companies in Gujarat. Moreover, currency fluctuations have relatively stabilised. But the US and many European markets have been under economic pressures. Some of the new markets are emerging who are looking at outsourcing for the first time. This is helping, in a way, to reduce our dependence on the US market,” says Rajan Vasa, chairman and managing director of Contech BPO Services Private Limited.
According to Jaimin Shah, the newly elected president of Gujarat Electronics & Software Industries Association (Gesia) and founder director of Dev Information Technology Pvt. Ltd., countries like Japan, Australia, Denmark and South Africa are some new markets that Gesia member firms are exploring.

“These new territories deal in euros or pound where there is less currency fluctuation. Moreover, too much dependence on the US market can cost dearly since the market has been under pressure,” says Shah.

However, the shift in market share to Indian companies in these markets is around five per cent. “But even a five per cent change in market share is worth billions of dollars,” argues Vasa.

In the case of Vasa’s Contech BPO, a 100 per cent export oriented unit (EOU) which catered completely to the US market for last two years, the share has come down to 55 per cent to the US and 45 per cent to 12 other countries including Germany, Switzerland, Denmark, Sweden, Belgium and Australia. “Similarly, while the US used to contribute about 65 per cent to IT exports in Gujarat, it may have come down to 55-60 per cent, but even that is significant,” Vasa adds.

The other factor that is working in favour of the new markets is the growth. “Orders have been pretty much stable or even dwindling from the US as of now, though there is still lot of scope for India to grab quality orders from the country,” says Pranit Banthia, CEO, Hi-Tech Outsourcing.

Rather, according to Vasa, the new growth is coming from other countries. “It is also because some of them have just begun outsourcing so that they can focus on their core competencies,” he adds.

Source:http://www.business-standard.com/india/news/it-firms-in-gujarat-eye-new-export-markets/409328/

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Bangalore: the success story of ICT industry

September 28th, 2010

INDIA’S SILICON PLATEAU – Development of Information and Communication Technology in Bangalore: R.C. Mascarenhas; Orient Blackswan Pvt. Ltd., 3-6-752, Himayatnagar, Hyderabad-500029.

A lot has been said and written about Bangalore, and its iconic status as the “IT capital of India.” With its clear and chronological account — on both the ICT revolution and why it converged upon Bangalore — India’s Silicon Plateau gives a fresh ‘byte’ of perspective. Throughout his narrative, Mascarenhas maintains that Bangalore’s reputation of being a technopolis preceded the “IT outsourcing boom”, which, he says, rode on the back of a “scientific base” established by public sector research and educational institutes in the city.
Mascarenhas does not limit his study to Bangalore, or even the ICT industry success story. He attempts to chart its growth at the national level, offering a historical and political perspective to what triggered the upswing. Apart from marking the milestones in the ICT road map, he seeks to analyse and contextualise the various policy statements on the subject. He goes on to explain why and how India in general, and Bangalore in particular, was able to acquire a competitive edge in an industry, which, he says, is at the core of the technology-led “new economy.”
State’s role

Significantly, the author steers clear of a GDP-driven analysis of development, wherein all the successes on the economic and industrial fronts are attributed primarily to the liberation of the economy, a process that was set off in 1991. Instead, the emphasis is on the policies of successive governments, both at the Central and State levels. The book also traces the state’s role in building the pillars of what has come to be known as the “knowledge economy”. Mascarenhas looks at the computer hardware and software policies right from the 1970s, when the industry relied entirely on multi-national corporations, such as IBM and ICL, which supplied computers built overseas, and the subsequent measures to protect and promote an indigenous computer industry.

In the realm of ICT, India worked for self-reliance — the spirit that was behind the ‘Green’ and ‘White’ revolutions of the earlier decades — and this led to the exit of IBM in 1978, when the government insisted on the company adhering to the principle of local equity participation. This boosted the sagging fortunes of the ECIL and also gave the Indian programmers working for IBM an opportunity to be assigned to the CMC, set up to undertake maintenance of a wide range of imported computers. This “experience over different platforms and of diverse legacies proved invaluable in the business.”
IT hub

The book devotes a substantial section to deliberating on why Bangalore was able to score over other industrial centres in IT development. The availability of multi-level, ‘science-and-technology infrastructure in the public sector — national laboratories, research institutes and higher education institutes — is identified as a critical factor. The proximity of C-DOT’s hardware unit, the ISRO space centre, and C-DAC’s tech park (to name a few central research institutes) created an “exciting IT cluster”, says Mascarenhas.

While discussing the catalytic role the Indian Institute of Science and other research and defence institutions in creating a pool of highly talented and skilled personnel for the industry to draw from, he attempts to unravel the “social and technological diversity and heterogeneity” of the region that proved an attraction for the people all round. He reflects, albeit briefly, also on the “drastic consequences” of this phenomenal growth — the crumbling infrastructure, for instance.
Taking the narrative a little beyond the industrial perspective of ICT, the author speaks about e-governance, the Unique Identity Number project (which is expected to streamline the implementation of welfare schemes), the Electronic Voting Machine, and the ubiquitous digital divide — all of which go to make the larger ‘ICT and India’ story.

Source:-http://www.hindu.com/br/2010/09/28/stories/2010092851301700.htm

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UK councils announce plans to begin outsourcing, which could include their IT

September 28th, 2010

Two councils in the UK have announced this week that they are to begin outsourcing work to drive down costs, in a move that could include their IT departments.

Suffolk and Brighton councils are taking steps to form virtual authorities where instead of running everything directly in-house, they will give control over services to outside companies.

Though the majority of these services will not involve their IT departments, the councils could save money by having their business email hosted.

A spokesman for Brighton Council told the Guardian that the new services will share costs, as it looks to save £45 million by 2013-14.

“This new structure aims to deliver quality and innovation that squeezes out cost, duplication and looks for opportunities to collaborate with others both inside and outside the council and the city to share costs,” a council spokesman said.

Hosted Exchange 2007 is an example of a program the councils could use to save money.

Source:http://www.outsourcery.co.uk/news/?story=uk-councils-announce-plans-to-begin-outsourcing&id=1971

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Big IT firms seen consolidating

September 28th, 2010

THIS WEEK, HEWLETT-PACKARD will be hosting its Analyst Day and Jabil Circuit is scheduled to report its fourth-quarter fiscal 2010 results. H-P will meet with investors Tuesday and Jabil will release its fourth-quarter results Monday with a conference call Tuesday morning. These events will provide investors with an update on the tone of the tech world before the third-quarter releases in October.

During H-P’s (ticker: HPQ) Analyst Day, we believe investors will focus on both long-term strategic objectives and near-term demand trends. As a broad-based player in the IT hardware and services market, H-P can provide good perspective around spending trends in the PC, server, storage and printer markets. Also, management’s discussion around the networking market will be watched closely as H-P tries to make further inroads into the Ethernet switch market versus Cisco Systems (CSCO) through a combination of organic initiatives and the recent 3Com acquisition. Finally, Jabil’s (JBL) fourth- quarter results will be watched closely and the company is an important electronics-manufacturing-services (EMS) partner for H-P, along with Flextronics International (FLEX) and Celestica (CLS).

Over the next few years, we believe the IT environment will continue to consolidate and the largest companies becoming even bigger. In the end, we expect Cisco, H-P, IBM (IBM) and Oracle (ORCL) to compete like never before. As such, acquisitions will play an increasingly important role as has been demonstrated by the rising pace of tech deals this year. During H-P’s Analyst Day, we expect there will be plenty of discussion surrounding its acquisition strategy. Just last week, Oracle indicated that it was not interested in acquiring services companies but will focus on IP-based companies (e.g., software, silicon).

Our recent component-supply-chain checks are highlighting reduced forecasts in the enterprise market related to networking, servers and storage, while we are hearing more negative trends surrounding the base-station market. We believe enterprise hardware-related sales in our component world may not grow much quarter-over-quarter or at all during the third-quarter 2010. We are not surprised by softening enterprise trends as we highlighted our expectation for this to eventually occur during Computex in June and Cisco also flagged early signs of slowing IT trends during its earnings call in August.

At the same time, we have been highlighting excess inventory builds in the supply chain and book-to-bill ratios could turn negative before year’s end. Smartphones appear to be a stand out in third-quarter 2010, while seasonality in the industrial and aerospace/defense markets may prove less onerous than in the past and important for Amphenol (APH). The companies in our universe most exposed to the enterprise-hardware market include Cisco, Benchmark Electronics (BHE), Celestica and F5 Networks (FFIV).

Source:-http://online.barrons.com/article/SB50001424052970203418704575518060907111020.html?mod=BOL_hpp_oe

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