Archive for December, 2010

Toshiba overhauls chip ops with Samsung, Sony deals

December 27th, 2010

Toshiba Corp will overhaul its chip operations, outsourcing output of some system chips to Samsung and selling a production line to Sony Corp, as it reduces its non-memory chip exposure.

Toshiba, the world’s number three chipmaker behind Intel Corp and South Korea’s Samsung, is restructuring its chipmaking operations after the business logged an operating loss of ¥280 billion ($3.4 billion) in fiscal 2008 amid the global financial crisis.

For new orders for the next financial year beginning in April, Toshiba will design cutting-edge system chips but will outsource production to Samsung, and maybe other foundries, to avoid costly capital investment outlays.
The rare deal between rivals Toshiba and Samsung, which is expanding into microprocessors, frees up resources for other projects, which analysts see as positive.

“Thanks to this tie-up Toshiba will gain a stronger position,” Yumi Nishimura, a senior market analyst at Daiwa Securities Capital Markets, said after the Nikkei business daily reported the move earlier on Friday.

“In a situation when bigger capacity is required, the burden of capital investment can be too big for one company, so the accord is a positive factor for Toshiba.”

System chips, used in digital devices, have seen explosive demand growth this year, due to rising popularity of smartphones, tablet PCs and web-to-TV devices.

Toshiba said it would sell to Sony its system chip production line in Nagasaki prefecture, a deal which an industry source has estimated at ¥50 billion.

Source:-http://www.business-standard.com/india/news/toshiba-overhauls-chip-opssamsung-sony-deals/419670/

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BPO careers: many options & long term scope

December 27th, 2010

Welcome to the nineteenth column of the “ICT and BPO Catalyst – To Make Sri Lankan Economic Dreams a Reality!”. This is the place where we discuss about Information and Communications Technology (ICT) and Business Process Outsourcing (BPO) sectors. It’s a fact that the awareness on this critical aspect of our future economy is still fairly low and hence the effort to spread the message.

This is the last column for this year, and I am truly happy with the successful ICT/BPO awareness increasing efforts that we have taken this year. It’s a noteworthy year with many successes recorded for the year, most of which we discussed as and when they occurred.

BPO Careers

I thought of discussing about BPO careers today.

First of all let me tell you that BPO is such a wide-ranged sector, so career opportunities also are so wide. We have spoken about voice (call centre) and non-voice segments in detail. There are also financial & accounting as well as technical support outsourcing arrangements. Further, the ICT sector has a large outsourcing arena. Many high end outsourced work such as analysis and research would fall into Knowledge Process Outsourcing (KPO). So, the first point is BPO career options are wide and opportunities are immense.

The second point is that most predominant outsourcing form is with international companies. Hence the work is of international nature and companies are able to pay salaries that are way greater than that of local companies. This would be followed with many employee benefits such as transport and insurance schemes.

Thirdly, I want to tackle a myth about the BPO sector, especially in the voice segment. Many believe call centre jobs are not real career paths but just quick money earning short term jobs. I wouldn’t disagree that they are a good way of earning money quickly because of the high salary range they pay even for freshers, but I disagree that there isn’t a good career path. It is a good starting point so that young people can start to earn early and use that money for ongoing education, professional development and personal use. Dealing with customers is a learning that would help someone’s entire career. Good customer care is something that we need to excel in. I wrote a column on this series earlier explaining the importance of it, and I believe an early call centre job can put a strong foundation of good customer care skills. Huge improvements in communication skills by being a voice agent is something that would benefit in all most all jobs that he or she would take up in the future.

Source:-http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=14379

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Accenture eyes 25,000 jobs in 2011

December 26th, 2010

Outsourcing and IT firm Accenture Philippines is eyeing to hike its total headcount to 25,000 by August 2011 with its 13 facilities in Metro Manila and Cebu.

Accenture currently has more than 20,000 employees and banking on its newest facility in Cebu City to provide most of the job growth.

It has 2 facilities in Cebu — one in Pioneer House, which opened in 2007, and Robinson’s Cybergate Cebu, which opened in mid-December.

Both Cebu facilities currently employ over 500. Accenture initially set up operations in this central Visayas location in 2008.

Benedict Hernandez, Accenture BPO delivery lead for the Philippines, described the Cebuano workforce as “talented.” In turn, he said Accenture’s facilities will provide “career opportunities and a rewarding job experience.”

The second Cebu facility in Robinson’s Cybergate is part of the firm’s efforts to expand the “breadth of our IT and BPO services.”

“With the added facility, Accenture Cebu now provides application development and management, including testing, plus infrastructure and security services. In addition, non-voice services are being added to Cebu’s roster of BPO offerings, such as finance and accounting BPO and custom BPO services designed to address the unique needs of client organizations,” the statement said.

In November, Accenture Philippines celebrated its 25th anniversary and inaugurated its new facilities in McKinley Hill in Taguig City and the Eastwood site in Quezon City.

Accenture is a global management consulting, technology services and outsourcing company, with approximately 211,000 people serving clients in more than 120 countries

Source:-http://www.abs-cbnnews.com/business/12/25/10/accenture-eyes-25000-jobs-2011

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Toshiba outsourcing semiconductor production to rival Samsung

December 26th, 2010

Tis the season for manufacturing deals? Sure seems it. Merely hours after Sony announced its intentions to buy back Cell chip fabrication facilities from Toshiba, it looks as if Tosh is about to enter into yet another agreement. In this case, it’ll be outsourcing the unprofitable production of semiconductors to rival Samsung, which will be responsible for churning out the brains behind a number of smartphones, televisions and digital home appliances. Numerous sources have explained that Toshiba is interested in realigning its focus onto the blossoming memory chip business, and moreover, its hoping to evade costly facility upgrades that would be necessary to remain competitive in the system LSI business.

In other words, the company is dodging investment costs and placing a greater emphasis on a sector that’s already profitable (NAND flash production, for those curious), and after the Oita plant is handed off, it’ll be used to make image sensors in digital cameras. The Nagasaki plant, as we heard earlier, will be handed over to Sony. Toshiba’s stocks were sent northward after investors welcomed the news, but of course it remains to be seen what kind of consumer impact this will have. Whatever the case, we certainly hope Toshiba never runs into any trouble with Sammy — it’s not like its top brass can be touched, regardless of infraction.

Source:-http://www.engadget.com/2010/12/25/toshiba-outsourcing-semiconductor-production-to-rival-samsung/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+weblogsinc%2Fengadget+%28Engadget%29

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KPO business to touch $ 10 bn by 2012: Assocham

December 25th, 2010

India’s Knowledge Process Outsourcing (KPO) business could touch $10 billion by 2012, if the sector is opened for biotech and nano experts and steps are taken to build a strong chain of qualified professionals, a Assocham study said on Thursday.

Currently, the KPO market size is estimated to be around $5.5 billion and the sector is growing by about 15-17 per cent, dominated by professionals belonging to fields such as management, medical and engineering, the chamber said.

“Assocham has projected KPO industry’s size growing to $8 billion in 2011 and touching the 10 billion mark by 2012 with a growth rate between 25-27 per cent subject .

The high growth rate in 2012 can be achieved “if a strong chain of qualified professionals is built and the field is opened for bio and nano experts,” Assocham statement said.

The emerging KPO space constitutes a small part of the overall business process outsourcing (BPO) sector.

“There is a need to create a new pool of KPO workers from emerging domestic knowledge based industries such as biotech and nanotech as large number of talented young people have joined academic courses for career excellence in these two areas,” Assocham president Dilip Modi said.

A vast pool of highly educated professionals in engineering, medicines, management and professionals in the field of accountancy, company secretary, legal fraternity would be required to serve the industry, it said.

It said since the KPO sector deals with confidential data, including financial data, treasury and investment portfolio decisions, there is a need to address the issue of data security raised by international clients.

Small and Medium Enterprises (SMEs) are likely to be the major growth drivers for the KPO sector, it added.

Source:-http://www.thehindu.com/business/Industry/article972052.ece

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Toshiba outsourcing chip fabrication to Samsung?

December 25th, 2010

Toshiba has reportedly established an agreement with Samsung over its system chips, with fabrication said to be outsourced to the latter company, according to an unconfirmed report in the Japanese newspaper Nikkei. The strategy change is reportedly designed to allow Toshiba to concentrate its production efforts on flash memory.

A company executive recently confirmed plans to outsource production of its latest LSI chips, though the partner was not disclosed. The chips, which were borne of collaboration with IBM,

Although both companies are direct competitors in the flash memory market, Samsung was reportedly chosen for its existing production capabilities. Toshiba will effectively avoid costs associated with fabrication plants and equipment upgrades.

Aside from the LSI facilities, recent reports suggest Toshiba is in the process of selling one of its Nagasaki-based fabrication plants to Sony for approximately $599 million

Source:-http://www.electronista.com/articles/10/12/23/lsi.chips.developed.through.ibm.partnership/

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Israeli companies outsourcing to Palestinians

December 25th, 2010

Within the pastel walls of a modest suburban office, Israeli high-tech workers have accomplished a feat that still eludes their political leaders: They have created a partnership with the Palestinians.

Israeli-Palestinian peace talks may be stalled, but that hasn’t stopped a small but steady trickle of Israeli technology companies from seeking to work with people on the other side of the decades-old conflict.

Israeli CEOs say it’s their way of bringing a little bit of peace to their troubled corner of the world. But the real reason they’re hiring Palestinians, they acknowledge, is because it simply makes good business sense.

Israel’s high-tech industry is among the country’s crowning achievements. Israel has the most start-ups per capita in the world and has helped produce such game-changing innovations as instant messaging and Internet telephony. Many Israeli tech firms send work offshore to eastern Europe, India or China.

In the past three years, however, some have turned to Palestinian engineers and programmers. They are cheaper, ambitious, work in the same time zone, and – surprisingly to many Israelis – are remarkably similar to them.

“The cultural gap is much smaller than we would think,” said Gai Anbar, chief executive of Comply, an Israeli start-up in this central Israeli town that develops software for global pharmaceutical companies like Merck and Teva.

At a previous job, he worked with engineers in India and eastern Europe, but found communication difficult. So in 2007, when he was looking to outsource work at his new start-up, he turned to Palestinian engineers. He said they speak like Israelis do – they are direct and uninhibited. Today, Comply employs four Palestinians.

Palestinian engineers have also warmed up to the idea. “I doubt you would find a company who says, ‘I am closed for business’” to Israelis, said Ala Alaeddin, chairman of the Palestinian Information Technology Association.

If there is hesitation, it’s in marketing Israeli products under a Palestinian name to tap into larger Arab markets off-limits to them. “We’re looking for a partnership … not one side benefits from the other side,” Alaeddin said.

“We have a window of opportunity to demonstrate our skills,” said Murad Tahboub, CEO of Asal Technologies, a Palestinian outsourcing company that works with Comply and a handful of other Israeli-based companies. “The more people know about us … the more comfortable they will be in doing business with us.”

‘We are doing great work for our country’

This is easier said than done. Comply’s office in Hod Hasharon is only about 20 miles (30 kilometers) from Asal Technologies in the West Bank city of Ramallah – but they are worlds apart.

Israel’s military prevents most Palestinians and Israelis from visiting each others’ cities without special permits, citing security concerns.

A network of fences and concrete walls divides Israel from the West Bank, built by Israel earlier this decade amid a wave of Palestinian attacks. Travel restrictions make meetings between Israelis and Palestinians rare, and psychological barriers separate them as well.

Anbar says his company is proving skeptics wrong. One recent morning, Israeli project manager Gali Kahane chatted online in English with Palestinian programmer Mohammad Radad, sending him smiley emoticons while reviewing updates to the database software they are developing.

“At first it was a little bit strange” to work with Palestinians, but now it’s like working with any other Israeli developer, Kahane said. “We are very curious what they think about us,” but they never talk politics. “The only thing we talk about is when the bugs will be finished, and reaching our deadline together,” she said.

Anbar says working with Palestinians is “doing something good for the world we are living in,” but says the real reason he outsources to the West Bank is financial: He pays the outsourcing company about $4,000 a month per engineer, half the cost of outsourcing to an Israeli company.

While Indians or Chinese engineers cost even less, he said Palestinians are more loyal to his company than workers from distant countries – and have a dogged work ethic. Many gained experience working abroad, and stiff competition for coveted engineering jobs in the West Bank pushes those who have work to prove themselves, Tahboub said.

About 10 Israeli start-ups and international companies with centers in Israel have been outsourcing to the West Bank in the past three years, said Tova Scherr of Mercy Corps, an international aid group working to encourage these ventures. Scherr said visits by Israeli businessmen to Ramallah – with Israeli military permission – are becoming more common.

Networking giant Cisco says it was the first international corporation with research and development centers in Israel to begin outsourcing work to the West Bank. Israeli branches of Hewlett-Packard Co., Intel Corp. and Microsoft Corp. have followed Cisco’s example and begun to outsource to the Palestinian territories this year, according to Mercy Corps.

Arranging meetings is “sometimes like crossing the Red Sea,” said Cisco spokesman Gai Hetzroni.

Last year’s initial meeting of Palestinian and Israeli engineers was meant to take place in the West Bank city of Jericho, but an Israeli military closure forced the workers to drag their laptops into a nearby Bedouin tent they rented for the day. Hetzroni said it was an “extraordinary meeting” that convinced the firm to go forward with the partnership.

Word of the West Bank’s potential is spreading: Tahboub of Asal Technologies said he received about 20 inquiries this year from Israeli companies.

We are doing great work for our country,” Tahboub said, referring to the yet-to-be-born Palestinian state. “I believe the (technology) sector will become one of the pillars of the Palestinian economy.

Source:-http://www.ynetnews.com/articles/0,7340,L-4000797,00.html

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