Archive for December, 2011

How Well Do You Know Your Outsourcing Service Providers?

December 20th, 2011

A new mobile app for iPhone and iPad called ‘GlobalSourcer’ breaks barriers by offering information about outsourcing service providers in ITO and BPO sectors to the public.

A new mobile app called “GlobalSourcer” has hit the Apple Stores. The App facilitates knowledge sharing about outsourcing service providers and acts as a direct link between the buyers and providers within the global sourcing ecosystem. The App thus breaks the monopoly of the leading analyst and sourcing advisory firms and brings down the cost of advice.

Typically, a customer looking towards India for service providers approach outsourcing advisory firms for advice on selecting the most suitable provider that best fits their organizational needs. The advisory firms provide them with insights on the service providers for a premium based on the data they hold, which is normally inaccessible to the buyer. Buyers also tend to be billed heavily for running the provider selection process and the deal itself. So, it is an over kill for the buyers.

The app, aptly named ‘GlobalSourcer’ for its focus on global sourcing industry, breaks this hold by making information about service providers in sectors like ITO, BPO, etc open to the buyers and the public. With an intuitive interface, insightful infographics and up-to-date information it is priced modestly at $19.99. This is also one of the first true enterprise apps sold on the App Store.

The app is being hailed as a revolution in the global sourcing space as typically global sourcing knowledge is not normally transparent or well understood. The sensitive information, decisive in nature, which the advisory and analyst firms hold onto, is being opened up to the decision makers through this simple app.

The app was designed by [x]cubeLabs for Headstream Advisory based in Hyderabad.

Commenting on the announcement, Managing Director and founder Sashikant Kakara, stated, “In the current highly volatile economy, the key traps for any outsourcing buyer is a lack of in-depth analysis of service provider domain expertise and a clear methodology to distinguish service providers. This app fills the gap and reshapes the way customers perceive the providers. On the other hand, for service providers, the app is a new channel and platform to optimize their brand presence and gain traction in new geographies and verticals. Clearly, it is a win-win situation for the Indian Service Providers and the outsourcing customers.”

Source:http://www.marketwatch.com/story/how-well-do-you-know-your-outsourcing-service-providers-2011-12-19

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Eton to launch nine projects next year

December 19th, 2011

“We are aiming for nine projects for 2012: four business process outsourcing [office spaces], one retail project, three high-rise residentials, and one township,” Danilo E. Ignacio, Eton Properties president and chief operating officer, told BusinessWorld in a telephone interview last week.

This comes as demand for affordable housing is seen to remain robust next year.

“The affordable and mid-income residential market is growing, and this is where we will tap our growth,” Mr. Ignacio said.

Currently, Eton Properties’ wholly owned subsidiary, Belton Communities, Inc., offers middle-income real estate projects in North Belton Communities in Novaliches, Quezon City, as well as in Eton City in Sta. Rosa, Laguna.

Three high-rise condominiums are also in the pipeline, as well as plans for a new township project, Mr. Ignacio said, declining to elaborate.

Two office buildings will meanwhile rise within Eton Centris, Quezon City, one of Eton Properties’ existing township projects, Mr. Ignacio said, while the retail development will be built within Eton City.

Other factors that will help Eton Properties build its projects for next year include growth in BPO, government eagerness to advance the tourism industry, and good lending conditions and exchange rates, Mr. Ignacio added.

“Overall, it will be a good year for the company,” he said.

Public float

The firm also expects to raise its public float level to the 10% level required by the local bourse by next year,despite global uncertainties hounding the economy.

Eton Properties’ free float level currently stands at 5.6%.

“We’re working on it, and eventually we will attain the requirement,” Mr. Ignacio said.

Eton Properties was incorporated in 1971 under the name Balabac Oil Exploration & Drilling Co., Inc. to engage in oil exploration and mineral development projects in the Philippines. It eventually changed its primary purpose to a holding company, with real estate development and oil exploration as among its secondary purposes.

It currently operates three brands: high-end Eton, middle-income Belton, and affordable First Homes. The firm has launched 43 projects since it entered real estate development in 2007.

Source:http://www.bworldonline.com/content.php?section=Corporate&title=Eton-to-launch-nine-projects-next-year&id=43501

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Slough signs outsourcing deal with Arvato

December 19th, 2011

Slough borough council has signed a deal with outsourcing company Arvato to take on a range of its services, taking in revenues and benefits, payroll, finance, HR and logistics.

The company said that under the deal it will invest £3.8m into transforming the services, and that Slough is expected to achieve savings of £26.5m over the next 10 years.

It involves transferring staff from the four service areas to a new shared service hub, the Thames Valley Transactional Service Centre, to be based in the town. It will offer services to other public and private sector organisations in the area.

The company has also guaranteed the creation of 100 apprentice positions.

Councillor Rob Anderson, leader of Slough borough council, said: “Our collaboration represents an innovative approach that will safeguard local jobs, maintain high service levels, and secure new investment into the local economy, as well as providing our staff with a fantastic opportunity to develop their careers.”

Rainer Majcen, managing director, public sector, Arvato UK and Ireland said: “Slough is a strategic location for our business, and we believe the joint development of the shared service with the council is an important move forward in how public sector organisations can start to take the lead in delivering service excellence.”

The partnership between the two is scheduled to go live on 2 April 2012.

Source:http://www.guardian.co.uk/government-computing-network/2011/dec/16/slough-council-arvato-outsourcing-contract?newsfeed=true

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Latisys Secures $155 Million Credit Facility

December 19th, 2011

Latisys, a leading national provider of IT outsourcing solutions from data center colocation to cloud, announced today a new $155 million credit facility which comes on the heels of Forbes recognizing Latisys as #23 on the Top 100 list of America’s Most Promising Companies. The new credit facility was oversubscribed with commitments from several leading sector lenders – reflecting continued strong support for the company’s operational execution, growth prospects and platform of high density data centers and cloud services.

Heading into 2012, Latisys continues to experience rapid growth. The availability of new capital will be utilized in part to expand Latisys’ current data center colocation footprint, construct its 2nd Tier III datacenter campus in the Denver, Colorado market, and drive expansion of managed and cloud services nationally. In 2011, Latisys added a new 93,000 square foot facility in Irvine, California and opened a 48,000 square foot data center in Chicago—both engineered to support high density customer deployments. Latisys also deployed its next generation managed hosting and cloud services platform.
“We continue to execute our strategic growth plan by investing in new and expanded facilities, leading cloud services platforms and highly skilled people,” said Doug Butler, Chief Financial Officer for Latisys. “Along with the capital support of our investors, the new credit facility supports our ability to aggressively pursue the tremendous business opportunities we see across all key markets today, and secures our foundation as we expand our suite of IaaS services to support evolving customer needs.”

The oversubscribed $155,000,000 credit facility is funded by a consortium of eight leading financial institutions, including: RBC Capital Markets, TD Securities, SunTrust Robinson Humphrey, Bank of America, CapitalSource, GE Capital, CoBank and Caterpillar Financial Services Corp.

About Latisys

Latisys is a leading national provider of colocation, managed hosting, managed services, disaster recovery and private cloud solutions to medium-sized businesses, enterprise customers and government agencies. With a heritage serving business customers since 1994, and multiple high-density, SAS70 Type II compliant data centers across the United States, Latisys offers scalable outsourced IT infrastructure management solutions that provide customers what they need, when they need it. The firm’s recently completed, state-of-the-art Tier III data center campus in Ashburn, Virginia complements existing facility operations in Chicago, Denver and Irvine, California. As a data center-centric company, Latisys is quickly becoming the hosting, colocation and cloud services company of choice for companies that demand more from their IT infrastructure partner.

Source:http://www.prweb.com/releases/2011/12/prweb9048155.htm

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App internet and mobile devices to drive massive technology demands in 2012

December 19th, 2011

The rise of the “app internet” – in which users’ PCs, smartphones and tablets run the business applications – will drive completely different demands from technology next year.

That is the verdict of technology industry experts, who predicted fast-shifting pressures on technology from the rise in mobile application development, cloud computing and new security threats.

According to Forrester analysts, having said that the web, as the dominant software architecture of the Internet, was dead, a new internet is evolving – dominated by applications and now placing a strain on the technology supporting it.

“The app internet ushers in the next generation of computing,” Forrester said. The high “momentum” of personal devices growth was vastly changing mobile platform strategies.

In order to cope with the change, it said, “elastic application platforms” would emerge “to handle variable scale and portfolio balancing”. Businesses would also increasingly push for private clouds, aided by “improved virtualisation”, it said.

It added that “always on, always available” was “the new expectation” from business leaders, and networks needed to evolve to meet this.

Gartner said that “low cost cloud services” would begin a fast growth, forming “up to 15 per cent of top outsourcing players’ revenue” within three years. These industrialised services would “alter the common perceptions of pricing and value of IT”, it said.

Cloud services will top $36 billion (£23 billion) in 2012, IDC said, “growing at four times the industry rate”.

“Eighty percent of new apps will target the cloud,” it said, with Amazon “joining the $1 billion vendor club” and duelling with Google, IBM, Microsoft, Oracle, Salesforce.com and VMware.

In spite of frequent gloomy predictions by financial analysts for the world economy, IDC said there would be a 6.9 percent growth in IT spending in 2012, “turbo-charged” by mobile devices. But analysts warned of the Thailand floods’ continued severe impact on the PC supply chain, and they said some production could shift to the Americas.

The battle to lead the IT marketplace will “start to be won and lost” next year, with Amazon’s Kindle Fire taking 20 percent of media tablets, and growing Android momentum taking on the mobile OS field.

It would be a “make or break” year for Microsoft, RIM and HP in mobile devices, with the vendors respectively depending upon the success of Windows 8, BBX and tablets, IDC said.

Analyst firm CCS Insight predicted that RIM would restructure its business “into two divisions: a services unit and a hardware unit”. The aim of this would be “to provide sharper focus on the two most important elements of RIM’s business”, it said.

Industry-specific technology will also be on the rise next year, analysts said. While smart cities would drive $40 billion worth of IT investment in energy, government and healthcare sectors, retailers will use a raft of specific mobile apps, IDC predicted. Financial businesses will ramp up the use of social media, well beyond marketing.

Nevertheless, social software is being branded by some as a “bubble”, with Gartner predicting that the investment bubble for enterprise social software companies will expand next year, before a dramatic burst in 2014. There was too much “overlap” in the market, it said.

As the volume of data consumed by enterprises grows, and the demand for analytics heightens, IDC said it will be a “busy year” for Big Data-driven vendor mergers and acquisitions, around “visual discovery, predictive analytics, and Hadoop analytics”.

Tech vendor LG said there will also be a growth in network attached storage, as businesses deliver more content to smartphones and develop a need “to both back this content up and be able to access it remotely”.

Testing company SQS Group said the changes in IT were driving a demand for rapid improvements in software analysis and readiness checking.

But the changes also offered a chance for a fresh approach, it said. “There will also be a rise in Testing as a Service – as the IT industry looks to control costs and gain advantages of scale.”

Any weaknesses in the underpinnings of cloud technology “will be countered by third party vendors who will begin to offer products mimicking features similar to locally hosted solutions”, it said. “This is particularly true in areas such as database backup and recovery.”

As more businesses consider using open source software, at least for some parts of their business, they would also consider open source-based testing automation tools, SQS said.

“To offset the up-front cost of implementing test automation, open source products with no licence fees can be utilised to keep the initial investment in test automation low, thus maximising the return on investment,” it said.

The increased complexity of business technology was raising tough demands on security technology, experts said.

“Cloud computing will take mobile device (in)security to a whole new level,” said vendor Qualys. “And cybercriminals have already demonstrated that the proliferation of mobile devices is a pretty easy way to access the corporate network”

However, it said many cloud services were gradually becoming increasingly mature and secure, and added that 2012 will see “cloud-based security take the heavy lifting and complexity burden off businesses” struggling to cope. It also moves the problem “to an infinitely scalable platform”, it said.

The rising maturity of the cloud means business executives – beyond IT – will be aware of potential risks and will demand evidence of strong security. Gartner said. “By 2016, 40 percent of businesses will make proof of independent security testing a precondition for using any type of cloud service,” it explained.

Security supplier Trend Micro said the “new social networking generation”, which is entering the workplace, will “redefine privacy”. It added: “In a few years, privacy-conscious people will become the minorityan ideal prospect for attackers.”

Additionally, it said, people using their own devices for accessing corporate data would create serious security technology challenges. It explained: “Smartphone and tablet platforms, especially Android, will suffer from more cybercriminal attacks.”

“Following a flurry of developments in mobile payments, NFC and mobile banking in 2011, already 2012 is heading to be the year of the mobile attack,” said vendor Validsoft.

“Trojans such as Zitmo and Spitmo – version of Zeus and SpyEye which attack mobile devices – are already well known, and other terms such as ‘Pseudo Device Theft’, ‘SIM swapping’, ‘mobile malware’ and ‘AppPhishing’ are all starting to make their way into the tech dictionary.”

Source:http://www.mis-asia.com/tech/mobile-and-wireless/app-internet-and-mobile-devices-to-drive-massive-technology-demands-in-2012/?page=1

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‘The only way for HCL to grow is by eating somebody else’s lunch’

December 19th, 2011

As the macro-economic situation continues to be grim across Europe and companies are paring down IT budgets, Vineet Nayar, vice chairman and CEO of HCL Technologies told HT that he sees growth prospects in bagging existing deals that come up for renewal. Excerpts: How would you
compare the current situation with 2008?
I feel a twister (storm) is in the making. The December shutdown – number of companies shutting down business in December under the garb of holiday, health, snow etc – is back and it is larger than 2008. A large number of companies anticipate de-growth in IT budgets.

The bigger issue is, we were depending on a rational reaction to this storm, but if it is not logical then a twister does get formed.

But similar things happened after Lehman Brothers collapsed in 2008 as well…
This time is different. From October 2007 till July 2008, there was investment of millions of dollars in new IT licences. And this brought growth for the last two years.

Now, in absence of new software licences one could see from 2010 onwards a slowdown in enterprise applications and in new roll outs. The point often missed is that by September 2008 there already were software licences purchased. But not this time. I feel the next 24 months are going to be bad for new projects.

So where does HCL Tech stand in all this?
We are clear about two things: one, there will be de-growth in IT budgets; two, transformation budgets are going to be frozen for some time. The only way for HCL to grow is by eating somebody else’s lunch.

So we have to participate aggressively in total IT outsourcing deals that are coming up for renewal and win a significant part of that.

Will you be more aggressive in acquisitions?
We have the suitors, we have targets but we are not convinced about the timing. I plan to acquire for capability and it has to Europe dominated. So I need to ask what is going to happen to Europe and what will be the demand for that capability. I feel we are still a few months away in answering those questions. We are still in active talks but not willing to go further. This may not be the right time to acquire.

Tell us about your overseas hiring plans?
We will create 10,000 new jobs by 2015 in US and Europe. At HCL it will be our endeavour to continue creating jobs for the locals in the market we operate.

Source:http://www.hindustantimes.com/business-news/InterviewsBusiness/The-only-way-for-HCL-to-grow-is-by-eating-somebody-else-s-lunch/Article1-784095.aspx

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Artezio Expands to Nordic IT Market and Partners with BBB-Software

December 19th, 2011

The strategic partnership between Artezio and BBB-Software should attract attention to the Finnish and Scandinavian software market that has recently demonstrated high growth indicators. For Artezio, in its turn, the partnership represents a good possibility to expand its nearshore services in Nordic countries and have a permanent partner to represent the company in the region.

According to the annual survey the Finnish software industry generated about 3 billion euros in revenue last year. Approximately a quarter of those sales were by subsidiaries of foreign corporations, showing that international firms are significant players in the Finnish market. These statistics don’t include foreign branches operating in Finland, so the international presence is probably significantly underestimated. For Artezio it’s a good possibility to enhance its customer base and increase the visibility of its nearshore services.

“Due to the absence of the vivid cultural differences and convenient geographical location, Finland and Scandinavia are strategically very important regions for Russian software outsourcing companies. We have been searching for a suitable partner in the region for a long time that is why we hope that our partnership with BBB-Software will bring positive results in the nearest future,” comments Pavel Adylin, Artezio CEO.

BBB-Software and Artezio are going to target mainly large regional financial institutions and local vendors supporting public companies. That’s why Artezio’s experience in desktop and mobile software development, system integration and other IT outsourcing services for such companies as the Royal Bank of Scotland, Raiffeizen Bank, Sberbank of Russia, Russian Ministry of Economic Development, etc. will be very helpful.

“Offering software development services in Finland and Scandinavia we should assure that the quality of services provided by our partners stays on the highest level as well. Flexibility and low personnel turnover rate prove Artezio as a reliable partner while quality certification and high qualified specialists with long-term experience in nearshoring guarantee high competiveness of Artezio services. We hope that this partnership will help increase our presence in the regional IT market as well as attract additional attention to Russian-Finnish interaction in the field of software development and nearshore outsourcing,” adds Ari Kitinoja, sales director of BBB-Software.

Source:http://www.pr.com/press-release/377598

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