Archive for October, 2011

All Covered Acquires Managed IT Services Practice of ColdCypress

October 19th, 2011

All Covered, a division of Konica Minolta Business Solutions U.S.A. (Konica Minolta) focused on delivering high-performance Managed IT Services to small- and medium-sized businesses, is pleased to announce that ColdCypress, a Managed IT outsourcing company based in Pittsburgh, PA, has joined All Covered. With the addition of ColdCypress, All Covered expands its presence in the Northeast, with a broad and talented group of professionals along with a diverse list of clients.

“ColdCypress becomes the fourth regional Managed IT Services organization to join the All Covered family in the past eight weeks,” said Todd Croteau, President of All Covered. “ColdCypress, along with the recent additions of LAN Associates, PMV Technologies, and Vertical IT Solutions allows us to further deliver on our vision to provide comprehensive national coverage for Managed IT Services while still maintaining a strong local presence that customers can count on from All Covered.”

ColdCypress is an IT Consulting Services company specializing in Microsoft SharePoint consulting, VMware PC and server virtualization services. ColdCypress’ certified engineers help customers improve performance and profitability through customized software development, remote server monitoring and remediation. The company has been recognized by the Pittsburgh Business Times and INC. Magazine as one of the fastest growing IT companies in Western PA.

Dave Kerney, President of ColdCypress said, “It was clear from the beginning that All Covered would be a great partner that could offer our customers first-class services and support while giving our employees the broadest growth opportunities. We are very excited to join the broader Konica Minolta family and offer our customers more solution specific services.”

Source:http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/18/prweb8885016.DTL

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Garbage outsourcing ‘a failure’ in non-MCG areas

October 19th, 2011

Unlike the Municipal Corporation of Gurgaon( MCG) that is bound to provide the door-to-door garbage collection facility to residents in its area, HUDA and the private developers are not obliged to provide this service and therefore the residents of these areas engage sweepers to collect garbage from their homes at a nominal amount.

However, there is no guarantee that the garbage collected from the non-municipal area will reach the recycling plant at Bandhwari, where it should ideally go. More often than not, these sweepers dump the collected garbage in open spaces and vacant plots, more so because they do not have the resources to carry the waste all the way to Bandhwari, a distance of over 27km.

In order to deal with this problem, more and more residents’ welfare associations (RWAs) and a few councillors are initiating measures to manage the biodegradable waste generated so that it can be recycled and turned into compost.

However, finding a place to dig pits to dump the waste is the major roadblock they encounter. “Very often we see these garbage collectors whom we have hired to pick up the garbage in open places and the ragpickers then collect those things they find useful and leave the rest. Ideally, this garbage should be carried to the recycling plant in Bandhwari. In order to prevent the filth lying all over the place we have asked residents to collect biodegradable waste in a separate bag so that we can dump them in the pits we have dug and turn them into compost. We are also educating the ragpickers to dump the garbage in these pits,” said Ashok Chawla, a DLF Phase I resident. Ward 30 councillor Nisha Singh has initiated a project, ‘Kartavya’. “I feel it is the kartavya (duty) of each one of us to manage the waste generated by us. I am planning to implement this project in my ward wherein we will identify sites to dig pits so that kitchen and garden waste can be dumped here and turned into compost. However, finding a place for such pits is proving difficult,” she said.

Source:http://timesofindia.indiatimes.com/city/gurgaon/Garbage-outsourcing-a-failure-in-non-MCG-areas/articleshow/10409271.cms

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H-1B Visa Processing Delays Threaten IT Project Success

October 19th, 2011

IT departments that rely on foreign and offshore workers to staff projects could see their initiatives held up by staffing shortages caused by H-1B visa processing delays and increased scrutiny of guest worker visa programs, according to industry watchers.

It used to take the U.S. Citizenship and Immigration Service (USCIS) two to four weeks, on average, to process the H-1B visa applications that IT outsourcing companies use to bring skilled workers to the U.S. on a temporary basis.

Today, it takes at least twice that long. According the USCIS web site, the average processing time for H-1B applications at its four regional service centers is 60 days, whether it’s a new application, a change of status or an extension of stay.

“We’ve seen a slowdown to eight weeks in most cases,” confirms Elizabeth Espin Stern, managing partner in the Washington, D.C. office of law firm Baker & McKenzie. “It’s a significant concern for new hires, less so for renewals, provided the renewal is filed early and the labor condition application is valid throughout.” (Employers are required to complete a labor condition application as supporting evidence for an H-1B visa application to affirm, among other things, that it will pay the H-1B visa holder a prevailing wage and the position will not adversely affect the conditions of similarly employed American workers.)

While the USCIS Priority Processing Service, at a cost of $1,000 per petition, can speed up the process to fifteen calendar days from the day the application is received, companies sponsoring H-1B applicants are also experiencing additional delays in the form of requests for evidence (RFEs) by the USCIS.

The annual report that the USCIS Ombudsman’s Office issued earlier this year reported a rise in RFEs at its California service center: They grew from less than 10 percent of H-1B applications in 2006 to around 20 percent in 2010.

RFEs for the L-1B visawhich outsourcers also use to transfer employees with specialized knowledge from a foreign location to the U.S.skyrocketed from approximately 12 percent of all applications processed by the California service center to nearly 40 percent in 2010.

“Employers continue to express a high level of frustration with USCIS issuance of RFEs, and provide the Ombudsman’s Office with examples of inappropriate and unduly burdensome RFEs,” the report says. “Elevated RFE rates are impeding legitimate business operations.”

H-1B Delays Threaten Project Deadlines

For IT groups relying on foreign workers to complete projects, the perceived bureaucracy represents another hurdle in their effort to get their initiatives completed on time. “The issue is not just the length of the delay, but the fact that the delays risk derailing implementation schedules that have very little leeway built into them,” says Steven Hall, partner and managing director of CIO Services for outsourcing consultancy TPI. “If the change plan anticipates a two-week turnaround, but the visa delays make it a four-week turnaround, that means the entire project plan is off track.” Hall adds that IT outsourcing companies have told him about cases in which their workers travelling to the U.S. on H-1B or L-1 visas have been stopped by immigration officials and/or refused entry into the U.S.

Offshore IT service providersboth multinationals based in the U.S. and those with headquarters in India and elsewherecontinue to rely on the easy transfer of H-1B visa holders, particularly early on in their outsourcing deals. “The visa holders are critical resources, as they are needed to transition between onsite and offshore,” says TPI’s Hall.

The visa holder typically travels to the U.S. for two to four months for knowledge acquisition at the client site, then returns offshore to train the delivery teams. Such roles aren’t easily filled by onshore staff, says Hall. “It’s not just a matter of having the skills available onshore, but rather the ability to leverage the expertise and knowledge of visa holders in managing the offshore operation,” he says.

How IT Can Mitigate H-1B Risks
The lesson for IT departments that use offshore and H-1B resources is clear: Put in place contingency plans for visa processing delays. Expect that H-1B visa applications will take at least two months to process and that some will be denied outright, Hall advises.

Another piece of advice: Outsourcing customers should do what it takes to keep their own subject matter experts in-house longer. That may mean offering them bigger retention bonuses.

There may also be ways to use new collaboration and document sharing software to get the transition work going before the offshore resources arrive, says Hall, but it’s important to test those new tools and connections early.

Finally, there’s the option of completing more of the transition work offshore, sending stateside resources overseas instead of vice versa. It’s usually a costlier option, but it can provide the customer with better insight into how the offshore operations actually work, according to Hall.

Source:http://www.networkworld.com/news/2011/101811-h-1b-visa-processing-delays-threaten-252098.html?page=1

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Q&A: Vineet Nayar, HCL Technologies

October 19th, 2011

HCL Technologies says the IT services firm will see good growth by grabbing as many contracts up for renewal in the next quarter, even though the overall IT budget is expected to remain static. Company vice-chairman and CEO Vineet Nayar, talking to Piyali Mandal, shares his views on the current demand scenario, pricing environment and opportunities. Edited excerpts:

With the macro-economic environment continuing to be uncertain, do you see any impact in near term?
The IT budgets have been down for quite some time — it can either remain static or go down. But the real activity is now expected to be around vendor churn, as clients were looking to change their existing vendors. This throws up more opportunities for firms like us.

What kind of opportunity do you see out of the deal renewals?
A number of deals are expected to come up for renewal and restructuring in the October-December quarter. According to a TPI (Technology Partners International) report, the total size of deals on offer (for renewal) could be as large as $8 billion. The demand would be mostly driven by companies in continental Europe.

In an environment where the IT budgets are going to be static, what kind of pricing pressure do you foresee?
With the existing customers, pricing underwent a change in 2008-09. We do not see pricing re-negotiations happening right now. However, there could a pricing competitiveness in new deals.

Recently, some media reports alleged that you were involved in WSJ circulation scam.
We wanted to build a brand in the universities. That’s why we signed up with The Wall Street Journal leadership Institute. They were supposed to conduct 50-60 seminars on leadership. The first one was conducted in London on September 30. It was a big success. For that, we paid them 10,000 pounds. I don’t have a point of view on what they did with that money. We only paid them for the services they delivered to us.

How is the domestic market shaping up?
In domestic market, we have made a conscious effort on few verticals such as utilities and financial services. Our strategy is not very broad-based India strategy. How is the BPO business doing?
We will break even in the January-March quarter. BPO will be the centre-stage of our growth strategy, because we see integrated IT-BPO deals dominating the outsourcing space in the future.

Why have you given a conservative guidance for margins of 14%, while your competitors enjoy margin of 20-30%?
We are in a total IT outsourcing business which is a low margin business. Many other vendors don’t participate in this space as it is a low-margin business. We succeeded with this model from 2008 to 2011. We have guided the market and we will keep our margins on constant currency flat on year-on-year basis.

Source:http://business-standard.com/india/news/qa-vineet-nayar-hcl-technologies/453014/

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Indian outsourcers hit by global economic worry

October 19th, 2011

Shares in India’s biggest IT outsourcing firms sank on Tuesday on concerns that rising global economic uncertainty in key markets will hit future growth of the country’s flagship sector.

India’s largest software exporter Tata Consultancy Services closed down 7.71 percent to 1,033.50 rupees — the company’s sharpest single-day fall in a year a day after its latest quarterly growth data lagged estimates.

HCL Technologies slumped 8.5 percent to 401.15 rupees, despite a 50-percent jump in quarterly net profit reported on Tuesday. Its chief executive, Vineet Nayar, said macro-economic conditions were “troublesome”.

India’s IT and software services sector derives over 90 percent of its revenues from providing technology services to foreign customers, particularly in the United States and Europe.

Analysts forecast that IT spending budgets from large global companies will shrink in coming months, as the eurozone debt crisis and concerns over the US economy persist.

Indian majors Infosys, TCS and HCL have all shown growth in quarterly profits, helped by a depreciating Indian rupee against the US dollar.

But bosses at all three companies have each warned that the state of the global economy will be challenging in the months ahead.

Infosys chief executive S.D. Shibulal told reporters last week that “we remain very cautious on worries arising out of the prevailing situation in Europe and the US”.

Jagannadham Thunuguntla, head of research with SMC Global Securities in New Delhi, said initial excitement over a 9.7-percent increase in Infosys net profit last Wednesday had soon died down.

“Concerns that overseas clients may not be able to spend more is increasing,” he told AFP.

Shares in the group fell 1.61 percent on Tuesday.

The National Association of Software and Services Companies (NASSCOM) has forecast the sector will grow by 16 to 18 percent this year, but some private sector analysts see expansion of as little as 2.0-4.0 percent.

A downturn in Western economies is a double-edged sword for Indian outsourcers.

Some companies will look to cut costs by offshoring some services to emerging countries like India to save money. Others will look to spend less on IT, meaning less work is available for groups like Infosys.

Source:http://www.google.com/hostednews/afp/article/ALeqM5gVa6XiG0A3DES15tgnBeGs1PIbJw?docId=CNG.ea2d83b634da8ac0dda3193eefc51267.7f1

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The pendulum of IT outsourcing swinging back as companies hire their own

October 19th, 2011

For some time now companies have been enamored with outsourcing their IT staff needs to supposedly safe lots of money and improve their bottom lines, however, that seems to be changing according to an interesting post by Sean Gallagher at Ars Technica.

This swing back to in-house IT staff isn’t just happening with tech oriented companies either as healthcare companies and retail giants like Best Buy have taken a second look at the whole idea of outsourcing their IT needs. This swing back to in-house staff is being lead by the company’s newly hired CIO Jody Davis who said that the company is now hiring IT talent as Best Buy employees and take control of their own destiny.

Even high-tech recruiting firms are seeing a shift much as Scott Gordon, a partner at Vaco LLC, noted when he said that even among his clients there is a lot less discussion about outsourcing and more about focusing on internal staff only.

Additionally IT research company Spiceworks has said that 31% of SMBs are planning to add to their IT staff this year but for small companies finding local talent is hard, and expensive. It has, according to Gordon, led to foreign outsourcers sending his company candidates for full-time positions in the US.

This is definitely a huge shift in thinking as compared to even a few years ago when it was all about getting rid of as many local workers as possible and outsourcing as much as possible in order to lower costs.

Source:http://www.inquisitr.com/151654/the-pendulum-of-it-outsourcing-swinging-back-as-companies-hire-their-own/

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Don’t be complacent, IT Secretary tells industry

October 18th, 2011

The government today told the export-driven IT industry not to be complacent, given the “rigorous turmoil” in key markets of the US and Europe.

At Bangalore IT.biz, Karnataka’s annual flagship ICT event, Union IT Secretary R Chandrashekhar referred to recessionary trends and anti-outsourcing sentiment in the US, which accounts for 60 per cent of India’s IT exports.

Europe, which contributes another 30 per cent, is in the throes of a deep economic crisis with serious structural issues in many of the countries in that region.

“With 90 per cent of these markets going through such rigorous turmoil, surely we cannot afford to be complacent”, Chandrashekhar said.

He pointed out that with the STPI (Software Technology Parks of India) scheme (tax benefits) coming to an end for the IT sector in March, and SEZ scheme also facing some issues, registration of new companies has come down.

“Small and medium enterprises are certainly worried about their business prospects”, Chandrashekhar said.

Source:http://economictimes.indiatimes.com/tech/ites/dont-be-complacent-it-secretary-tells-industry/articleshow/10402750.cms

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