Archive for September, 2010

US sitcom about Indian outsourcing is racist

September 30th, 2010

A new US sit-com set in Mumbai and being shown on primetime US television has kicked up a dust-storm of controversy amid claims that it is insensitive and even racist about Indians.

The show, Outsourced, which tackles the politically sensitive topic of outsourcing jobs from the US, follows the fortunes of a business manager, Ted, from a firm in the American Midwest who is dispatched to India’s financial capital to oversee a call centre staffed by local employees.

In the first episode Ted can be seen making jokes about Indian food causing diarrhoea, the turbans worn by Sikhs and the fact that cows are considered sacred. “The traffic here is like Frogger [an arcade game], but with real people,” he also declares. Already the show, based on a 2006 film, has triggered heated criticism from bloggers and US television reviewers, many of whom found the pilot episode inappropriate, insensitive and a throwback to less enlightened times.

Mikey O’Connell, writing at the popular television news website Zap2It, said: “As you might expect, the results are pretty offensive, but not even for their obvious racial and cultural ignorance. It’s the laziness with which every element of this show was assembled that makes it such an annoying blister of a television series.” He added: “It’s nothing that people with senile, racist grandparents haven’t already been rolling their eyes at for years.”

Another reviewer, Piya Sinha-Roy, said of the show: “The premiere of Outsourced managed singlehandedly to piss off every Indian who made the mistake of thinking that in the 21st century, television may slowly be phasing out the stereotypes.”

Not everyone agrees. The New York Times reviewer found nothing to complain about, while the cast of the show dismissed the claims of insensitivity. Ben Rappaport, who plays the main role, told reporters: “There’s nothing about our show that’s mean-spirited. Our show comes at this world with so much compassion and love… It’s just about two cultures that don’t know that much about each other and they’re trying to know each other better.”

Whether or not the series is insensitive or racist, the producers have certainly chosen a controversial topic. The issue of outsourcing back-office jobs from the West to destinations in the developing world remains hugely sensitive, both in the US, where politicians are under pressure to save jobs, and in India, which is worried about outsourcing drying up. President Obama has advocated cutting tax incentives to American firms that outsource jobs.

Earlier this month, Ohio declared it illegal to outsource jobs from the state, a move that was immediately condemned by the Indian authorities as “ill advised”. India’s industry minister Anand Sharma recently met senior US officials in Washington and “registered India’s viewpoint”.

Udyan Khanna, vice-president of India Forum Inc, a non-profit organisation based in Baltimore, said he watched the first episode of Outsourced and didn’t have any problems with the show. “I would say that there were some inaccuracies. But this is not a documentary,” he said. “I thought it was a pretty funny show.

Source:-http://www.independent.co.uk/news/media/tv-radio/us-sitcom-about-indian-outsourcing-is-racist-say-critics-2092548.html

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Anti-outsourcing bill blocked in US Senate

September 30th, 2010

This Round goes to India, courtesy the Republican party. A bill moved in the Senate by the Democrats to bring jobs back to America by granting payroll tax breaks to participating companies was defeated on Tuesday by 53 to 45 votes. A US squeeze on outsourcing had become a major worry for India as
it was feared the state of Ohio, which banned outsourcing in August of government funded projects, might trigger a chain reaction.
What was even more worrying for India was the stand taken by President Barack Obama and his Democratic party on the issue: he said he was completely opposed to shipping job abroad.

The measure — A bill to amend the Internal Revenue Code of 1986 to create American jobs and to prevent the offshoring of such jobs overseas — was put to vote on Tuesday and defeated in a a vote predictably along party lines.

The Business Roundtable, a pressure group comprising the US’s top CEOs, who account for $ 6 trillion in revenues and employ 12 million people, wrote a letter to the senate arguing for the move to be dropped.

Indian minister and officials has opposed ban on outsourcing for entirely different reasons — restrictive trade practice (in theory), but actually hurting many Indian businesses with huge stakes in the outsourcing market.

Commerce minister Anand Sharma forcefully argued for it in his talks here with the US trade representative, and foreign secretary Nirupama Rao raised it with her interlocutors while discussing the coming presidential visit.

Source:-http://www.hindustantimes.com/Anti-outsourcing-bill-blocked-in-US-Senate/Article1-606247.aspx

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IT firms seek buys to boost growth

September 29th, 2010

India’s showpiece IT services companies are scouting for acquisitions in overseas markets as they focus on expanding geographical presence as well as client base to boost growth.

Small- and mid-cap Indian IT companies are grappling with tepid demand, high attrition rates and a rise in expenses, resulting in strain on margins.

Companies such as Hexaware Technologies, MindTree and Mastek have also seen a slump in their net profit.

Indian outsourcing firms, which count Fortune 500 companies as their clients, have shied away from making big-ticket buys despite sitting on huge cash piles due to integration worries, lagging behind global peers such as IBM and Hewlett-Packard Co.

Leaders in the $60-billion Indian outsourcing sector such as Tata Consultancy Services and Infosys Technologies, which has cash reserves of $3 billion, focus mostly on smaller buys to fill a services gap or tap a new market.

“Conceptually, what we would like to add would be in the area of remote infrastructure management,” said Rostow Ravanan, chief financial officer of MindTree.

Remote infrastructure management refers to maintenance of a company’s information technology network from offshore locations. Clients in the developed markets outsource their network management to save costs.

“It’s one of our fastest growing practices. If I can find a sensible deal, that area would be a higher priority for us to do an acquisition,” Ravanan said.

FASTTRACKING INNOVATION

Companies like MindTree are also moving up the value chain to focus on higher-margin technology services and products, as intense competition in the traditional outsourcing space puts pressure on prices and erodes profit margins.

MindTree will join a select group of Indian IT products makers when it launches its 3G smartphone based on Google Inc’s Android platform in the United States in the second half of this fiscal year.

Ravanan said MindTree was in talks with at least one major U.S carrier for the launch of its smartphone announced in April.

“The hottest prospects for the phone are in the United States, followed by Latin America, Europe and Canada

Source:http://hken.ibtimes.com/articles/66793/20100929/india-it-services-companies-outsourcers-tech-mahindra-fortune-500-companies-tata-consultancy-service.htm

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redIT does IT outsourcing at Hugelshofer

September 29th, 2010

For a company whose expertise lies not in the IT, it is difficult and high costs associated with, areas of expertise to develop technology in all. Therefore decided to outsource its IT Hugelshofer. The entire server environment Hugelshofer the group is now at the advanced, redundant data center built in the redIT train. Without investments group benefits the Hugelshofer today by the always current infrastructure, from the profound expertise of specialists and redIT of a comprehensive data security and a highly professional, always available support.

Individually for a fixed monthly price
Ideal solution to this is that they can develop together with Hugelshofer: more storage space is immediately available and licenses are billed on a monthly basis, so that can be accommodated flexibly to fluctuating demand. The whole infrastructure – can be individually tailored to the requirements of the Hugelshofer group and rented at a monthly fixed price.

redIT Managed Services
As a result of innovative technologies and shorter project cycles, the requirements of the company’s ITKnow-how and more complex. A trend that will continue to increase. Thus redIT customers future fully in IT leave, your also offers redIT with standardized and scalable Rednet Manged services cost options for project, operational support and simplify complex IT environments. Thanks to the high level of expertise and years of experience of redIT specialist, redIT capable of in terms of IT technologies and operating competently advise their customers and support them

Source:http://moneycab.presscab.com/de/templates/?a=85988&z=79

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UK IT services market in fragile state with growth to slow in 2011

September 29th, 2010

Forecasts by independent technology analyst Ovum reveal that growth will slow to just 2% in 2011, down from 2.4% in 2010. Once inflation is taken into account then the market will actually shrink.

Jessica Hawkins, Ovum analyst, said: “The IT services market was severely affected by the global financial crisis with growth dropping to just 1.6% in 2009, but the sector’s woes are far from over. The slow recovery and drastic public sector cuts have crushed any hopes of a return to better days and 2011 will be extremely tough for the industry.”

Public sector IT spend has already been affected by the moratorium on £1 million+ IT projects and earlier this month the National Programme for IT was effectively scrapped. Hawkins said: “A reduction in IT spend will be accelerated further following the spending review on 20 October, which is expected to deliver cuts of anywhere between 25% and 40%. The public sector faces its toughest year for a decade and will only grow by 2% in 2011. Suppliers should only expect single digit growth for the next few years.”

Although in general the picture for IT services companies looks bleak in 2011, according to Hawkins, providers of business process outsourcing (BPO) stand to benefit significantly from the new age of austerity. She said: “We expect BPO to be largely resilient to this tough environment as public sector departments try to deal with the cuts. It will therefore remain the fastest-growing sector of the UK IT services market through to 2015, growing at a compound annual growth rate (CAGR) of 6.5 per cent.”

Source:http://www.sourcingfocus.com/index.php/site/newsitem/2708/

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Tata Consultancy Services (TCS) and British Airways Launch Integrated Solution for the MRO Industry

September 29th, 2010

In an industry which does not have a ‘one size fits all’ solution for its Maintenance, Repair and Overhaul (MRO) functions, Tata Consultancy Services (TCS) (BSE: TCS.BO, NSE: TCS.NS), a leading IT services, business solutions and outsourcing organisation, has joined with British Airways to launch the industry’s most cutting edge integrated IT solution, branded as “SWIFT MRO.”

This partnership brings to the market a tried and tested solution that addresses key MRO industry requirements, including compliance control, inventory management and maintenance operations. The solution, based on the latest SAP platform, leverages British Airways’ best practices with a focus on increasing productivity by minimising manual intervention and increasing process automation – all through a simplified Graphical User Interface. The solution focuses on eliminating non-value added activities and waste throughout MRO operations.

Garry Copeland, British Airways’ director of Engineering, said, “Having successfully implemented an engineering-wide system based on SAP, we have identified a number of opportunities to enhance the solution and make it significantly easier to implement and use. Working with TCS, we have created a team that combines MRO industry experience with technology expertise to continually improve the effectiveness of our system, and believe we can offer this outstanding product to the market.”

TCS and British Airways are bringing this to the MRO industry so that other organisations can benefit from an end-to-end solution, which is scalable to support both the current and future needs of the industry. The pre-configured solution also provides significant implementation costs savings compared to competing solutions, owing to the use of TCS’ propriety solution accelerators.

Source:http://www.prnewswire.com/news-releases/tata-consultancy-services-tcs-and-british-airways-launch-integrated-solution-for-the-mro-industry-104000773.html

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US sings conciliatory tone on outsourcing row

September 29th, 2010

A day after Senate Republicans blocked passage of an anti-outsourcing bill, Democrat-led US made a conciliatory tone, stating the issue, which was an “irritant” in with India, can be “managed”.

“… In any mature relationship, there will be irritants. There will be conflicts. But the key is not to focus on any specific conflict or irritant but how we manage those and how we take advantage of that opportunity,” US Under Secretary of Commerce for International Trade Francisco Sanchez said on the sidelines of an AMCHAM meeting here.

In a move that augured well for India, Senate Republicans blocked the passage of an that denied tax breaks to the US companies which move jobs overseas, dealing a blow for President .

Sanchez said the US wants increased commercial engagement with India. “Quite frankly, we want to see more Indian companies invest in the US and we know that foreign direct investment is also like trade, a two-way street,” he said.

Sanchez would conclude his three-day India visit today. He said protectionism is not good for any country which, “President Obama knows better than anyone in our country”. Sanchez said the US market is “most open market in the world”.

“But the key is not to focus on any specific conflict or irritant but how we manage those and how we take advantage of that opportunity,” Sanchez said.

Of India’s $50 bn IT and ITES exports, the US accounts for about 60 per cent. Besides, the bilateral merchandise trade was $36.5 bn in 2009-10.

As part of President Obama’s National Export Initiative — with the goal of doubling exports in the next five years — US Department of Commerce’s International Trade Administration has targeted India as one of the most promising global markets.

Source:http://economictimes.indiatimes.com/news/news-by-industry/services/travel/visa-power/US-sings-conciliatory-tone-on-outsourcing-row/articleshow/6652427.cms

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