Archive for April, 2011

Independent customer satisfaction survey ranks CIBER second among Global IT Outsourcers

April 13th, 2011

CIBER, Inc. (NYSE: CBR) is ranked No. 2 among the top IT outsourcing vendors worldwide, according to The Black Book of Outsourcing, the leading independent benchmark for customer satisfaction in the outsourcing industry. CIBER has ranked in the top 10 for overall global outsourcers for the past three years.

The ranking is based on an annual survey, conducted by the Datamonitor Group, that captures ratings and information from executives and others involved in outsourcing decision-making about their experience and satisfaction with outsourcing providers. More than 31,000 service experiences were collected, and customer feedback responses were audited and validated.

“CIBER’s ranking as one of the top 10 global outsourcers for the third year puts it above many assumed industry leaders,” said Eamonn Kennedy, Global R&A Director, Services & Sourcing at Datamonitor. “CIBER has built on its core business of providing application solutions and services, expanding its services to include infrastructure services. CIBER ranking higher than much larger companies clearly indicates that customer focus, strategic solutions and an innovative approach matter more than size of the organization.” For more specific information about the survey, a video featuring Kennedy is available at www.ciber.com.

“To be consistently ranked among the top global IT and overall outsourcing providers is a true honor for CIBER,” said David Peterschmidt, CIBER Chief Executive Officer, “and a tribute to the sales professionals, solutions architects and consultants, who make it their priority to deliver clients practical, innovative and effective solutions, and exceptional service. The Black Book of Outsourcing stands out as significant for our business and industry because it is based directly on feedback and rankings from users of outsourced services across the globe.”

Source:http://www.prnewswire.com/news-releases/independent-customer-satisfaction-survey-ranks-ciber-second-among-global-it-outsourcers-119682434.html

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Software developer VanceInfo buys Chinese business outsourcing firm

April 13th, 2011

Software developer VanceInfo Technologies Inc. said Tuesday it has purchased LW International Holdings Ltd., a Chinese business outsourcing services company.

China’s VanceInfo will pay $5.6 million in cash and stock for the company, with further payments based on LW International’s performance during the next three years.

LW, also known as Lifewood, was started in 2004 and serves clients in the U.S., Europe and Asia Pacific regions, mainly in the health care, publishing and financial services sectors.

VanceInfo said there are increasing synergies with between the business outsourcing and information technology businesses.

Lifewood reported about $4.5 million in net revenue last year.

Source:http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D9MI4G400

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Business & Knowledge Process Outsourcing Deal Directory

April 13th, 2011

The Business & Knowledge Process Outsourcing database provides access to all the Mergers and Acquisitions (M&A), Private Equity and Venture Capital Deals since 2004.

The database is categorized into various sub-sectors including Healthcare Services Outsourcing, Payroll Services Outsourcing, BFSI Services Outsourcing, Back Office & Support Services, IT Services Outsourcing, Legal Services Outsourcing and others providing an easy tool for filtering within the sector.

The database includes Target Financials (Revenue, EBITDA and Net Income) and Deal Multiples (EV/Revenue, EV/ EBITDA, EV/Net Income) wherever possible, providing a benchmarking tool for valuation using industry mean and median multiple.

The Directory include all the precedent transactions in India or with an India perspective along with nature of the deal such as Domestic, Inbound and Outbound Acquisition, Merger, Private Equity, Venture Capital Fund Raising, IPO, Buyback, Block Trade, etc.

Source:http://www.prsafe.com/new_press_releases/view/1939

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Indian BPO market to grow 23 %: Gartner

April 13th, 2011

The Indian domestic business process outsourcing (BPO) market could reach $1.4 billion in 2011, up 23.2 per cent from 2010, according to Gartner estimates. It says it will grow into a $1.69-billion market by 2012 and further to $2.47 billion by 2014.

The BPO market in India totalled $1.139 billion in 2010, a 28.6 percent increase from 2009 revenue of $885.6 million. The market’s growth was driven primarily by increasing volumes in existing BPO engagements, clients expanding the scope of existing BPO relationships, and a number of new BPO deals in 2010 were from pent-up demand from 2009.

The BPO services market in Asia-Pacific and Japan is made up of a good mix of multinationals, regional and local pure-play BPO service providers; IT service providers with BPO assets and capabilities; and telecom vendors. Though the BPO market is dominated by global and India-based service providers, there are also a number of fast-growing regional and niche BPO service providers.

“Changing demographics, increasing affluence and economic growth in Asia-Pacific continues to drive shared services and BPO adoption, especially in Australia, India, Southeast Asia and China,” said T. J. Singh, research director at Gartner.

“There is growing demand for multi-country shared services and BPO services within Asia-Pacific. Buyers continue to invest in services that deliver scalable, high quality and consistent services across their geographical presence. There was significant consolidation in the global and regional BPO market in 2009 and 2010 with some large merger and acquisition (M&A) deals impacting the regional BPO service provider landscape.”

The BPO services market in Asia-Pacific (excluding Japan) reached $8.6 billion in 2010, a 21.5 per cent increase from 2009 revenue of $7 billion.

The largest BPO country market in the region is Australia, which is more than three times larger than India, the second-largest consumer of BPO services. By verticals, banking and financial services, communications, government (local and federal), technology and travel and transportation were the largest consumers of BPO services in the region.

India is one of the fastest-growing BPO market in Asia-Pacific. This segment was earlier dominated by small service providers with some local companies, such as Magus Customer Dialogue, Infovision and Andromeda. Over the past three years, many established India-based BPO service providers and U.S and Europe-based multinational BPO service providers have started focussing on the Indian domestic market. These include Omnia, Kenkei, Androemeda, Genpact, Magus, MphasiS, Intelenet Global Services, Tech Mahindra, Aegis, Spanco and HTMT.

“This phenomenon has been accentuated by the advent of the global slowdown in the U.S. and Western Europe, in which service providers who were focussing solely on the international market realised that there is merit in the Indian BPO market, given the fact that it grew rapidly even during the global economic crisis. The large and midsize players have now stepped up their activities,” said Mr. Singh.

Source:http://www.thehindu.com/business/Industry/article1691251.ece

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IT contractors see increased demand from overseas clients

April 12th, 2011

IT contractors in the UK are experiencing increased demand for their skills from overseas clients, according to a new report.

According to recruitment firm PeoplePerHour.com, there has been a rise in the number of foreign firms hiring digital freelancers from the UK.

Figures from the organisation’s latest research have revealed that the first three months of 2011 were the busiest quarter on record of overseas firms posting jobs specifically for UK-based digital contractors.

Xenios Thrasyvoulou, founder and chief executive officer of PeoplePerHour.com, claimed the figures are in keeping with the growing trend of “reverse offshoring”.

“There was a time when hiring freelancers to deliver digital work online was universally perceived as western businesses outsourcing to inexpensive offshore labour – particularly from the subcontinent or Eastern Europe.

“However, we’re seeing the reverse happening more frequently than ever before. It’s partly due to the economic strength and growing confidence of the BRIC nations, but it’s also influenced by the positive reputation of British digital skills internationally.”

Source:http://www.brookson.co.uk/news-and-press/DirectNews/2011/April/IT-contractors-see-increased-demand-from-overseas-clients/

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Outsourced IT benefits ‘appealing to firms of all sizes’

April 12th, 2011

The benefits of outsourced IT services are becoming increasingly widely accepted by businesses of all sizes, according to a report.

Software firm Webcom states that over the last few years, managed services have ceased to be the exclusive domain of larger firms, noting that small and medium-sized enterprises are also benefiting.

It observed that for many companies which do not operate a primarily IT-focused business, the process of in-house corporate computing management can be time-consuming, complex and wasteful of limited resources.

By outsourcing, companies can delegate these tasks to full-time specialists, allowing them to free up time for their own staff while remaining in control of their ICT environment.

Webcom said firms that invest in outsourced IT do so expecting “an increase in the quality of services and a decrease in the costs connected to those services”.

Earlier this month, Staffan Akesson of telecommunications firm Ericsson stated that managed services are becoming more widely used as companies seek ways to cope with increasingly challenging business conditions.

Source:http://www.codestone.net/news/story/outsourced-it-benefits-appealing-to-firms-of-all-sizes/800496074/

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Top IT cos to post strong results

April 12th, 2011

India’s top three technology firms are likely to post strong quarterly profit and indicate robust revenue growth for the year ending March 2012 as overseas clients boost technology spending in an improving global economy.

However, salary increases and currency volatility could put pressure on margins for the country’s top software service exporters, Tata Consultancy Services Ltd, Infosys Technologies Ltd and Wipro Ltd.

“On the whole, this year will be better than last year. There may be some improvement in pricing and the business outlook will be slightly better than last year as the US market is improving,” said K. K. Mital, head of portfolio management services at Globe Capital in New Delhi.

“Wage inflation and the rupee’s appreciation will limit profit improvement.”

Companies could raise salaries by 10 per cent to 15 per cent on average this fiscal year, analysts said. However, some of them expect higher billing rates to offset the effect of salary increases on margins.

In April, research firm Forrester forecast the US technology market to expand 8 per cent in 2011, up from 7.4 per cent projected previously, with software, IT consulting services and technology outsourcing growing faster than last year.

The United States is the largest market for the Indian technology firms, contributing more than 50 per cent of their revenue.

Investors will await management comments on the pipeline for deals, hiring targets and salary rises as Indian firms battle for contracts and employees with larger global rivals such as IBM, Accenture and Hewlett-Packard.

“We will have to see how these companies manage their margins this year,” said Srividhya Rajesh, vice president-equity at Sundaram Mutual. “We have to see if Infosys is willing to give up margin expansion for growth.”

The country’s top three technology firms, who manage computer networks and maintain IT operations for several Fortune 500 companies, are expected to see profit growth of 14 per cent to 22 per cent for the fourth-quarter ending March, according to a Reuters poll of analysts.

Revenue is seen rising 18 per cent to 31 per cent this fiscal.

Growth outlook
Infosys, which sets the tone for the near-$60 billion outsourcing sector, opens the earnings parade on Friday and analysts expect India’s No. 2 software services exporter to forecast dollar revenue growth of 19 per cent to 20 per cent for fiscal 2011/12.

“The demand environment seems to be pretty good with the trend for offshoring continuing,” said Srividhya. “We are looking at pretty strong growth this year. It will be volume driven. We do expect to see some price increases this year.”

Source:http://timesofindia.indiatimes.com/tech/news/software-services/Top-IT-cos-to-post-strong-results/articleshow/7962016.cms

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