Archive for September, 2011

Cloud and outsourcing – the impact on CIOs and sourcing ‎

September 22nd, 2011

The border land between Cloud Computing and outsourcing has always been fairly porous, but now the Cloud is actively redefining IT sourcing services.

According to a new research study by K2 Advisory, Sourcing IT services ‘for the journey’: The impact of Cloud on Outsourcing, CIOs are now looking for outcome-based Cloud contracts from vendors, horizontal business process platforms to outsource their non-differentiated systems.

In turn, this demands a beefing up of in-house integration skills within internal IT Departments to transform them into what K2 refers to as “Business Service Brokers for Cloud-delivered services”. The flexibility of the Cloud is changing the dynamics of outsourcing arrangements.

Because of the speed at which services can be provisioned, CIOs need to consider to what extent their internal IT department is acting as a service broker. This means that understanding how the Cloud ecosystem for IT suppliers and outsourcing providers develops will be fundamental to IT strategies.

A third of organisations are already forging ahead to build their own in-house integration skills for Cloud-delivered services, although 43% of the market do not expect to address integration issues for another one to two years. Over the next two years, the number of CIOs seeking help to integrate SaaS with legacy systems, and/or SaaS, will grow as Cloud strategies develop and usage increases.

K2 Advisory research shows that a third of organisations believe that the real challenge for them could kick-in by 2013, while a further 12% expect 2012 to be the year they require assistance. Either way, the data suggests that 2012 will be a pivotal year for many organisations as they look to conduct a sizeable shift towards Cloud services, or as they start to tackle the integration challenges that are emerging following investments made this year and into 2012.

More than half of CIOs surveyed expect their internal IT capability to provide a service integration platform and skills to provide business agility around the use of Cloud services, as this is not something they wish to outsource.

Nearly two-thirds of CIOs interviewed said they would use a business service platform either because it would deliver the most cost-effective solutions in selected non-differentiating areas – such as HR, Payroll, Finance and Procurement – or because it was used by their fellow industry players.

K2 also detects a clear preference of broad horizontal business services, rather than sector-specific capabilities. CIOs are keen to embrace the IT cost reduction in these areas without constraining organisational development. Highly differentiated systems designed to deliver high added value, are seen as less of a good fit for standard Cloud delivery.

Source:http://www.businesscloud9.com/content/cloud-and-outsourcing-impact-cios-and-sourcing/6446

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Costa Mesa City Council OKs First Proposals for Outsourcing

September 22nd, 2011

It’s been just over six months since a new Republican majority aiming to outsource most city services swept into power in Costa Mesa.

Yet despite more than 200 layoff notices last March, a worker suicide, national headlines, lawsuits and months of ensuing protests at council meetings that drag on well into night, not one job has been outsourced.

On Tuesday night, it took a 4-1 council majority well past 10 p.m. to issue their first requests for proposals (RFPs), which call for outsourcing jail services, video production and building inspection.

Just before the vote, Mayor Pro Tem Jim Righeimer, the tactical and parliamentary leader of the council majority, rebuked labor officials and citizen activists who have opposed the outsourcing.

“We’re finally getting to the point of getting RFPs,” said Righeimer, who was obviously irritated. “Your process has worked very well.”

Righeimer reacted to the usual barrage of criticism from the speakers podium by expressing his own frustrations with activists and labor officials, accusing the latter of negating November’s election results by extending their labor contracts just before he took office and tilted the council majority toward outsourcing.

In dealing with the city’s budget woes, “All we have the ability to do is layoff or outsource,” Righeimer said. “It’s not a gun to your head; it’s just the process we have left.”

He also lashed out against public criticism of the city’s mounting legal bills, saying lawsuits that labor groups had won in court are the cause. “Just stop the suing,” Righeimer said.

He even criticized city staff for what he saw as biased reports on outsourcing prospects. A staff review is required by the city’s own policies and resulted in another legal challenge by local labor officials to rescind prior RFPs.

On Tuesday, Righeimer accused staffers of skewing their recommendations in a jail outsourcing report.

“It’s the most biased report I’ve ever seen in my life,” Righeimer said. “It’s embarrassing … 18 pros and only one con [regarding current jail services]. It’s just ridiculous.”

In what has now become common during council meetings, Councilwoman Wendy Leece took issue with Righeimer.

“I don’t want to do this just to get rid of employees,” Leece said.

At one point, Leece battled Righeimer, who said he did not want the minutes of the meeting to indicate what his motivation for the outsourcing was.

“I want nothing read into the record here that speaks of motivation,” Righeimer said.

Leece then grilled CEO Tom Hatch on how RFPs would be evaluated at the staff level, asking him, “How will you determine whether we will have a lesser level of service?”

Hatch cited cost as one of many factors and added that level of service is important. He didn’t, however, give a clear explanation on how the process would work.

Source:http://voiceofoc.org/oc_coast/article_3c903606-e458-11e0-9d22-001cc4c002e0.html

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Cloud computing ‘changing the face of outsourcing’

September 22nd, 2011

The flexible benefits of cloud computing mean that it is completely changing the dynamics of IT outsourcing, it has been claimed.

According to a study by K2 Advisory, chief information officers across the globe are increasingly looking for flexible sourcing options.

“In particular [they] favour outcome-based contracts from firms supplying cloud services,” Dr Katy Ring, director of K2 Advisory, said.

“Whilst the theory is good, large scale uptake of these types of contracts is unlikely in the short term due to levels of vendor risk and lack of experience from both procurement and sourcing advisors.”

The study also emphasised that internal IT departments will play a key role in the shift towards cloud services as they will be tasked with making sure that the technology fits in with their organisation.

Nicola Mortimer, head of ICT and business development at O2, recently said that the cloud is changing business dynamics with a greater emphasis on flexibility and mobility.

Source:http://www.qas.co.nz/company/data-quality-news/cloud_computing_changing_the_face_of_outsourcing__7913.htm

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Northern Trust Announces Unique Outsourcing Agreement With RCM

September 22nd, 2011

Northern Trust today, Sept. 21 2011, announced its investment operations outsourcing agreement with global asset manager RCM, a subsidiary of Allianz Global Investors.

The agreement, approved in July this year, will see Northern Trust providing middle office services for RCM investment teams in three regions – Asia Pacific, Europe and North America – on Northern Trust’s global operations platform. It is an unusual agreement for the investment services provider in that it will service the client from its single, global operating model, supporting RCM operations in San Francisco, Hong Kong and London on one global platform.

The agreement will also see members of RCM’s operations staff in Hong Kong joining Northern Trust, where they will continue to support RCM as well as other clients that have recently selected Northern Trust to provide investment operations outsourcing services

“This innovative agreement supports RCM’s strategy as a truly global asset management firm, operating on multiple continents across six time zones to offer a range of investment solutions,” said Peter Cherecwich, head of Global Fund Services at Northern Trust. “We worked closely with RCM to understand their business priorities, and demonstrated our capability to deliver middle office services efficiently and consistently by leveraging our global technology architecture and operations expertise in markets around the world.”

Under the agreement, Northern Trust will provide post-trade execution support, trade processing and settlement, data management, reconciliations, portfolio accounting, client valuations and administration services for RCM’s teams based in Hong Kong, London and San Francisco. Northern Trust’s outsourcing services will also support RCM sales and relationship teams in Singapore, Taiwan, Tokyo and Frankfurt.

“We selected Northern Trust to leverage the strength of its global operating model, which provides RCM with a platform for strategic growth while we continue to focus on investment excellence,” said Michael Hooper, Executive Chairman UK, chairman of RCM Global Operations Group. “We believe this agreement will strengthen our regional trading while providing a true ‘pass the book’ capability to support our global operations.”

Source:http://australia.globalcustodian.com/news/Global-Custody/Northern-Trust-Announces-Unique-Outsourcing-Agreement-With-RCM/40894

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Shinetech Software Inc. Announces Significant Revenue and Earnings Growth

September 22nd, 2011

Shinetech Software Inc. , a leading agile application development outsourcing provider, is pleased to announce revenue growth of over 30% for the first half of 2011. This continued momentum has been driven by strong customer demand and is a testimony to Shinetech’s high quality delivery and customer service.

“Our teams continue to do a great job servicing our global customers and developing new business to sustain this aggressive growth,” said John Vanderpool, Vice President of Global Operations for Shinetech. “We are also very grateful to our customers for their continued support and trust in our value driven services.”

New Shinetech customers for 2011 include Top 30 members of the Fortune Global 500 as well as many other leading organizations in the US, Canada, and Europe. Shinetech will continue to grow the company’s market share worldwide and looks forward to continued strong earnings performance and a very successful 2011.

About Shinetech

Shinetech Software Inc. is a global leader in providing application development outsourcing, testing, systems integration, and solution delivery services from cost competitive, high-skilled operations centers in China. Over the past 10 years, Shinetech has accumulated extensive experience in the financial, manufacturing, healthcare, telecommunications, software, government, energy, education, e-commerce, and online gaming sectors. Our experience with various technologies and industries enables us to successfully adapt to our client’s diverse needs ensuring successful project execution. Shinetech is also recognized as a leader in Agile development, leveraging Scrum and XP expertise. Shinetech combines the highest quality talent and project-management capabilities with the convenience and customer service expected from a global service provider. Headquartered in Beijing, the company has offices in New York, London, Shanghai, and Suzhou.

Source:http://www.sacbee.com/2011/09/21/3926625/shinetech-software-inc-announces.html

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TAKE Solutions received ‘leader’ rating in IDC Health Insights’ MarketScape

September 22nd, 2011

TAKE Solutions Ltd. a leader in the Supply Chain Management and Life Sciences domains, today announced it has received a ‘leader’ rating in IDC Health Insights’ MarketScape: Worldwide Life Sciences R&D IT Outsourcing Report 2011 Vendor Assessment. The “leader” category is the report’s highest ranking.

Alan S. Louie, PhD, research director, IDC Health Insights’ Clinical Development, Strategy and Technology research service comments in the report: “The life science R&D IT outsourcing market is growing rapidly as Companies seek to improve operational efficiencies and more tightly define those activities that are considered core competencies. As a result, leading service providers in this space are experiencing double-digit annual growth, with significant near- and long-term opportunities arising from the increasing number and variety of tasks being outsourced.”

The IDC Health Insights study assesses industry-specific offerings and experience, deployment flexibility, strength and responsiveness to project challenges, and long-term vendor growth strategies. Evaluation is based on a comprehensive framework and set of parameters expected to be conducive to a success in life sciences R&D IT outsourcing services and emerging growth in both the short-term and long-term. According to IDC:
“TAKE has built a strong list of clients, based on its deep domain knowledge, willingness to engage customers as partners, IP-based solutions, and thought leadership in clinical, regulatory, drug safety, and other life science areas.

“TAKE’s diverse customer base, broad services portfolio, strong commitment to life science industry-specific growth, domain-centric expertise, and strong customer relationships make TAKE a fierce competitor in winning projects that the Company competes for.”
“TAKE has been providing expert advice, solutions and services to life sciences customers for over 10 years. We are very pleased to be recognized for our strategy, focus & capabilities,” said Kishore Rachapudi, President & COO, TAKE Solutions. “IDC’s research confirms that our commitment to enable customer successes by delivering life sciences industry expertise and business technology skills is strengthening our competitive edge.”

In 2010, TAKE was also recognized for its highest scores for customer service, and tied for first place in both life science industry expertise and overall customer satisfaction in IDC’s Vendor Assessment: Life Science Buyer’s Guide to Sales and Marketing IT Outsourcing.

Source:http://www.indiainfoline.com/Markets/News/TAKE-Solutions-received-leader-rating-in-IDC-Health-Insights-MarketScape/5248129579

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Costa Mesa kicks off outsourcing process

September 22nd, 2011

The City Council released three requests for bids Tuesday night, marking the beginning of its exploration of outsourcing city services.

The requests for proposals (RFPs) pertain to jail, video production, and building inspection services, the first of 19 scheduled to go through the council chamber over the next several months.

The cost-cutting measures, if passed, could result in large-scale layoffs nearing half the city’s workforce. The city is asking for “innovative and/or creative” approaches to providing city services more efficiently or at a lower cost.

Much of the discussion Tuesday night centered on the city’s ability to make an “apples to apples” comparisons of current versus proposed service levels. With an emphasis on price, the concern was that service levels may decline.

City CEO Tom Hatch said price is only one factor in grading each bid. It will be the staff’s job to “fairly and objectively” evaluate the bids based on price, service level, and creativity,” he said.

Some argued that eight months after the city began talks of outsourcing, it has still not done the necessary preliminary research into the viability of such an action. But councilman Jim Righeimer said the process of collecting bids will allow the city to compare its options to the status quo.

“All we’re looking for is to get a price,” Righeimer said at the meeting. “Nobody is irreplaceable.”

Councilwoman Wendy Leece, who voted against all three RFPs, said the goal to her seems to be to cut pension costs by laying off city employees.

“I think the motivation is wrong,” Leece said. “My motivation is … to save money … (but) we cannot do it at the expense of our employees.”
The council approved the three RFPs, each with a 4-1 vote with Leece opposing.

Jennifer Muir, spokeswoman for the Orange County Employees Association, said after the meeting that most cities complete a comprehensive analysis of how other areas provide city services before considering outsourcing.

“I think this is just another example of how the council will do anything and say anything to continue jamming through their political agenda,” Muir said. “(The council) should rescind notices and get back to business of providing quality services to Costa Mesa.”

An injunction currently prevents the city from outsourcing any work to a private entity until the court hears a lawsuit from the Costa Mesa Employees Association, but the order does not prevent the city from taking bids

Source:http://www.ocregister.com/news/city-318213-council-services.html

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