Archive for January, 2011

Sony unveils personal 3-D product prototypes

January 6th, 2011

LAS VEGAS (MarketWatch) After two years of heavy restructuring and cost cutting, Sony Corp. is seeking to demonstrate its product-making prowess with an array of new electronics products focused on 3-D and Internet-connected devices to tap into its movies, music and videogames.

Sony Chief Executive Howard Stringer embarked on an overhaul that has seen the company close or sell factories and increase outsourcing. The moves are designed to make the sprawling conglomerate more nimble, so it can adjust quickly to the breakneck pace of the consumer electronics industry.

While those restructuring measures have paid off with an improved bottom line, the company has yet to launch a product that puts a stamp on the turnaround.

At the Consumer Electronics Show in Las Vegas on Wednesday, Sony unveiled intriguing 3-D product prototypes. One, a futuristic-looking gadget called “Headman,” wraps around a person’s eyes with a small screen for each eye that creates the illusion of depth.

The Japanese electronics conglomerate said it was going to make 3-D “personal” with compact 3-D camcorders, a 3-D digital camera and a Vaio PC laptop capable of viewing 3-D images. Meanwhile it showed off how it aims to position its online video and music delivery platform, Qriocity, to be Sony’s answer to Apple Inc.’s(AAPL 334.00, +2.71, +0.82%) iTunes for a wide range of devices.

More than any other “connected” product, Sony touted the potential benefits of marrying the television with the Internet. It’s a theme echoed by nearly every TV maker at the show, but Sony has aggressively pursued the market since becoming the first manufacturer to launch an Internet TV running Google Inc.’s (GOOG 609.07, +6.95, +1.15%) television platform.

“TVs are no longer passive devices, but gateways to an enormous dynamic world of content delivered whenever and wherever the consumers want it,” Stringer said during the media event.

Sony also said it had a partnership with Time Warner Cable Inc.(TWC 67.35, -0.03, -0.04%) through which the cable operator would deliver content over the Internet to Sony’s Web-connected televisions. The partnership comes as online video delivery threatens the grip of traditional cable and satellite TV operators.

Meanwhile, Sony still pushed heavily on 3-D technology, a major theme of last year’s show. However, the technology has not taken off as fast as the industry had expected but Sony said 3-D is the future of content.

As a “glimpse into the future,” Hiroshi Yoshioka, the head of Sony’s consumer products and devices group, said Sony has developed an all-in-one 3-D Blu-Ray player with a 10-inch, glasses-free screen, as well as prototypes of a 56-inch, 46-inch and 24.5 inch glasses-free 3-D model.

The 24.5-inch glasses-free 3-D television uses an organic light-emitting diode display, considered a next-generation screen technology because it is thinner, brighter and uses less energy than today’s LCDs. Yoshioka did not give a launch timetable for those products.

Sony’s mobile phone joint-venture, Sony Ericsson, also said it would launch a new Android-based Xperia Arc smartphone, which comes with a 4.2-inch display and is slightly curved in the back, in the first quarter of 2011.

Source:http://www.marketwatch.com/story/sony-unveils-personal-3-d-product-prototypes-2011-01-06

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Norton Rose Saves £5 Million With Flex Scheme and Outsourcing

January 6th, 2011

Norton Rose reduced its salary costs by £5 million during the last financial year through its high-profile Flex programme and the outsourcing of around 60 London support staff.

The firm’s 2009-10 accounts, recently filed at Companies House, show that total staff salaries and wages decreased from £131 million to £126 million over the year.

The firm said that its flexible working program — which was used during the recession and saw a large number of lawyers and staff placed on a four-day week — accounted for about £3 million of the savings. Norton Rose has previously estimated that implementing the measures saved around 100 jobs at the firm.

The outsourcing of support staff to service company Mace Macro in February 2009 also contributed to the savings, although the firm now pays for the services as part of its general operating costs.

Staff numbers at the firm decreased slightly from 2,059 to 2,012 during 2009-10, with total fee earners falling from 992 to 982 and business services staff headcount decreasing from 1,067 to 1,030.

Norton Rose also increased its total borrowings by £22 million over the year to pay the tax bill on its pre-recession profits.

The firm’s total borrowings increased from just £2.3 million at the end of the 2008-09 financial year to £24.7 million. The firm said the increase came in response to tax debts on boom-era profits, paid for in January 2010, and a higher level of debtors than usual due to the recession, counting for £191 million compared to £164 million the previous year.

Total turnover decreased from £322 million to £314 million, while fee income was down from £314 million to £307 million, and total operating profit fell from £81 million to £78 million.

The highest-paid partner at the firm was paid £888,780 during 2009-10, compared to £739,416 the previous year.

Source:http://www.law.com/jsp/article.jsp?id=1202477245637&Norton_Rose_Saves__Million_With_Flex_Scheme_and_Outsourcing

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Outsourcing Resolutions Vendors Should Make in 2011

January 6th, 2011

Way back in December 2010, CIO.com presented eleven resolutions for the IT services customer striving to set their outsourcing relationships right in the new year.

But it takes two to tangle up a perfectly good deal. So as we kick off 2011, we offer these additional outsourcing resolutions for the party on the other side of table-the IT service provider.

Resolution #1: I will get help my partner get into shape. Outsourcers were all over opportunities to cut their own costs in 2010. Now it’s time they’e shared what they’ve learned. “Find ways to shed excess costs and bring these forward to your client,” says Adam Strichman, founder of outsourcing consultancy Sanda Partners. Don’t just sell your customer a new service that promises save them money someday; uncovers ways to shed costs now. “This should not be something which was requested by your client, but something you know needs to be done,” Strichman says. Once finished, surprise your client with an unexpected price reduction.

“Providers have very smart people that know the client’s business and these people have good ideas for reducing cost,” says Mark Ruckman, an independent sourcing consultant that works with Sanda Partners. “Rarely do these ideas make it to the client, because they don’t provide increased value or margin for the providers.” Forego that little bit of profit for the greater good. The savings don’t have to be huge to have a significant positive impact on your relationship.

Resolution #2: I will seek-and offer-clarity. There’s not a CIO in the world who isn’t trying to figure out where, when, why and how to implement cloud-based services this year. Yet most outsourcing providers remain reluctant to clarify their own vision of “the cloud.” “Tier 1 outsourcing providers need to demystify-or better yet, come clean-on their cloud offerings by providing tangible economic and performance data to their customers,” says Steve Martin, partner in outsourcing consultancy Pace Harmon. Start with some apples-to-apples comparisons of your legacy IT outsourcing offerings and the equivalent cloud-based service.

“Legacy service providers must resolve to co-opt cloud computing before it co-opts them,” says Stan Lepeak, managing director of global research for outsourcing consultancy EquaTerra. Collaborate with key industry players to continue to develop standards for security and interoperability, advises Eric Simonson, managing partner with outsourcing consultancy Everest.

Resolution #3: I will say what I mean. This suggestion rings as true for outsourcing suppliers as it did for outsourcing customers. There’s nothing more powerful than exactitude and candor in establishing a new relationship or fixing a troubled one. “Get off the PowerPoint and corporate B.S., and start talking in direct, understandable language with [your] clients,” says Phil Fersht, CEO of outsourcing analyst firm HfS Research. Try being forthright, whether you’re talking about cloud computing, offshoring, or layoffs.

Source:-http://www.computerworld.com/s/article/9203138/Outsourcing_Resolutions_Vendors_Should_Make_in_2011?taxonomyId=72

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Top IT companies’ growth likely to ease off a little in December quarter

January 6th, 2011

The top-tier IT companies are expected to report a marginally slower growth in the December 2010 quarter compared with the previous quarter. Fewer working days and the pending IT budgetary decisions by clients could reduce the pace of volume growth during the quarter.

But the long-term demand for outsourcing is expected to remain buoyant.

According to the average estimates of five brokerages and ETIG forecast, the aggregate revenue of the top-four IT companies is expected to grow sequentially by 5% during the December 2010 quarter against the 7.6% QoQ growth in the previous quarter. The sample includes Tata Consultancy Services , Infosys, Wipro , and HCL Technologies .

After a flat September quarter, Wipro’s revenue is expected to grow fastest, at 7.6%, among the top players. HCL Tech, with an expected jump of 7%, will grow faster than the 3-4% growth likely for TCS and Infosys.

The December quarter is traditionally a lean period due to fewer billing days. This may have a marginal impact on the revenues but global economic recovery and stable pricing environment is expected to offset this to a certain extent. The extent of client budget improvement will be a major point of focus during the current results season.

According to the IT preview report of Religare Securities, with continued improvement in corporate profits and large cash balances, IT budgets for 2011 are likely to be either flat or marginally higher with possibly greater allocation towards software services.

The rush to increase the headcount by IT majors also raises optimism about future demand growth. Companies are expected to step up their hiring guidance yet again during their results commentary.

Though the rupee appreciated further in the December quarter, its impact on margins is likely to be muted due to expectation of sustained realisations and cost efficiencies. Operating margin at the aggregate level may expand sequentially by 180 basis points (bps) to 28% over and above the 50 bps improvement in the previous quarter.

Operating margin of Infosys is likely to improve by 270 bps to 33% on a sequential basis, better than the rest. HCL is expected to witness a margin erosion of 70 bps at 16% on account of a higher impact of the unfavourable currency movement.

In the past three months, the BSE IT index has gained 12%, more than the benchmark Sensex. This captures the near-term growth prospects of the top IT companies.

Source:http://economictimes.indiatimes.com/news/news-by-company/earnings/earnings-analysis-/top-it-companies-growth-likely-to-ease-off-a-little-in-december-quarter/articleshow/7225786.cms

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Sri Lanka among top 9 in Asia Pacific for outsourcing

January 6th, 2011

Gartner, Inc. one of the leading tech research and advisory firms in the world has identified Sri Lanka as being among the top 9 countries in the Asia-Pacific Region for the first time, for globally sourced activities in 2010-2011.

The other countries in the Asia Pacific Region that made the list were Bangladesh, China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam.

Sri Lanka is also among the top 30 locations in the world for offshore services in 2010/2011 being ranked by this firm, and this time all 30 destinations that have been ranked were from emerging economies.

Seven developed countries have moved out of the Top 30 this year – Australia, Canada, Ireland, Israel, New Zealand, Singapore and Spain while there were 8 new entries to the list, Sri Lanka being one of them.

The other seven countries that have entered the list were Bangladesh, Bulgaria, Colombia, Mauritius and Peru along with two re-entrants – Panama and Turkey.

The Country Business Manager for Intel, Mr. Indika De Zoysa said as a country this is something to be proud of and this shows the potential the country has to take great strides in the near future. “We have to expand and popularize the broadband services in the country. We also need to train more teachers and expand the remarkable projects that have been initiated by ICTAD and invest more on infrastructure. A lot of money has been allocated from the budget for such basic projects. We have come a long way and we have achieved a lot and are heading in the right direction”, he said.

Sri Lanka currently exports US$ 390 million worth of BPO and other outsourcing services per annum. It is the expectation of the government to develop this industry to earn US$ 1 billion by 2015.

Source:-http://print.dailymirror.lk/business/127-local/31820.html

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IT support in London: More SMEs set to turn to outsourcing in 2011

January 5th, 2011

Many small and medium-sized enterprises (SME) will choose to outsource functions to a third party in 2011, it has been suggested.

Rebecca Burn-Callander, deputy editor of the SME advice website, claimed that hiring additional staff can be a major burden for such enterprises.

Excessive red tape proves dissuasive when SME bosses look to hire, meaning many of them look for alternative options as they expand their operations.

Ms Burn-Callander suggested that SMEs can use outsourcing to continue expanding while keeping control of costs.

“Businesses cannot function without a certain amount of manpower but it is likely that in 2011 SMEs will choose to outsource functions and use independent contractors,” she stated.

Writing for the Accenture blog this week, Gerardo Canta and Rob Rich claimed that IT outsourcing is an increasingly smart choice for UK companies.

Source:http://www.ihotdesk.com/article/800323877/IT-support-in-London:-More-SMEs-set-to-turn-to-outsourcing-in-2011

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How far can European IT services consolidation go?

January 5th, 2011

A late rush of merger and acquisition activity in the European IT services sector in 2010 could be an indication of things to come.

In December French IT services firm Atos Origin took over the IT services arm of German supplier Seimens (SIS) for €850m. Also, fellow French supplier Capgemini, which is Europe’s biggest, took over German service provider CS Consulting.

More of the same could be on the cards as European players attempt to fight off competition from the US and India while US and Indian suppliers try to grow their European businesses.

In September Rheinhard Clemens, CEO of IT services company T-Systems, told Computer Weekly that mergers and acquisitions were vital if European service providers are to compete with US giants.

IBM and HP have a huge chunk of European business and as IT services continue to commoditise their scale will put them in a stronger position.

Indian competition

There is also an argument that European players have to grow to hold off the increasing competition coming from India.

According to Gartner in the year 2008 to 2009 Indian players made the biggest gains in the European customer base. For example, Cognizant grew 41.7% and HCL 27.2%. This compares to Capgemini, which reported a fall in revenues of 4% and Atos Origin’s 3.6% revenue drop.

European businesses are increasingly likely to use Indian suppliers. According to the latest research from sourcing consultancy Equaterra three Indian suppliers received the best ratings from UK customers.

Wipro, Mahindra Satyam and Cognizant were named the best suppliers to European customers in terms of general customer satisfaction after 220 UK businesses were questioned.

More M&As

Sam Kingston, UK head at T-Systems, says Atos Origin and SIS now have a platform to take on bigger competitors. He believes other companies will use M&A activity to compete in Europe. “I think we will see more of this in 2011.”

Robert Morgan, director at outsourcing broker Burnt-Oak Partners agrees. He says Europe’s biggest service provider, Capgemini, could be a target.

“We could see Capgemini either split up into managed services and applications/consulting or an outright sale.”

He says the applications and consulting business could go to a company like Accenture and managed services might be attractive to one of the big Indian companies.

Any outright sale could be a target of a big US player, he says.

Mark Lewis, head of outsourcing at law firm Berwin Leighton Paisner expects “significant consolidation in the IT and BPO sector in Europe.”

He says the next couple of years will be tough for European service providers and as a result their valuations might reduce and they will become acquisition targets. “I think there will be acquisitions made in continental Europe by Indian players.”

The combination of the low valuations of European suppliers and the European growth strategies of the Indian suppliers could create the perfect storm for consolidation. “The Indian companies will look for bargains and acquisitions that fit with their strategies,” says Lewis.

Wave of partnerships

But it might not be acquisitions that change the supplier landscape, but a burst of partnerships could arrive on the scene, according to Lee Ayling, managing director at Equaterra.

“Sometimes it is not about acquisitions and I think we will start to see interesting partnerships signed.”

He describes a recent deal between Indian supplier Patni and UK service provider 2e2 as an example of things to come. 2e2 customers will now have an offshore option under a five-year £20m contract with Patni. 2e2’s internal users and some customers will receive services including application support and internal IT helpdesk services from Patni.

Ayling also believes some of the big mobile telcos will partner with local service providers.

A combination of factors moulded by the recession look set to shake up the IT services sector in Europe. Consolidation is inevitable, but the form that it will take is less certain.

Source:http://www.computerweekly.com/Articles/2011/01/05/244707/How-far-can-European-IT-services-consolidation-go.htm

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