Archive for July, 2012

Luxoft Ranked 47th on the List of IAOP’s 100 Global Outsourcing Service Providers

July 31st, 2012

Luxoft, a member of the IBS Group and a global provider of advanced application and product development services, today announced that it has been included in the “Leaders” category of the 100 Global Outsourcing Providers list, compiled by International Association of Outsourcing Professionals® (IAOP®). Additionally, the company has been included in the following sub-lists: Best 5 leaders – Automotive, Best 20 Leaders – Telecommunications, Best 20 Leaders – R&D Services, Best 10 Companies in Eastern Europe, Best 10 Companies with Employees in Eastern Europe, and Top Climbers from Year to Year.

The 2012 Global Outsourcing 100 and The World’s Best Outsourcing Advisors recognizes the world’s best outsourcing service providers and advisors. These rankings are based on applications received and evaluated by an independent judging panel organized by IAOP. The Global Outsourcing 100 and its sub-lists are essential references for companies seeking new and expanded relationships with the best companies in the industry.

“In today’s economy, it is more important than ever for outsourcing end users to be able to easily identify and select the right company for their outsourcing needs,” said IAOP Chairman, Michael Corbett. “The Global Outsourcing 100 is essential for companies who are looking for proven leaders and rising stars in the outsourcing industry.”

“Luxoft prides itself on its deep domain expertise and successful track record of delivering innovative software engineering services. This is the highest ranking that our company has gotten in the past five years and we are honored that Luxoft’s competencies were recognized by the IAOP judges in so many categories. We will continue delivering the award-winning level of work to our clients in 2012 and in upcoming years,” said Dmitry Loschinin, CEO & President of Luxoft.


Everest Group Study Finds Healthcare ITO Market Growing Amidst Economic Instability

July 31st, 2012

The US$20 billion healthcare IT outsourcing (ITO) market nearly doubled its cumulative contract value in 2011 compared to 2009. Additionally, the number of transactions grew by more than 35 percent annually in the last three years. IT Application Outsourcing (AO) in the Healthcare Payer Industry – Annual Report 2012, published by Everest Group, an advisory and research firm on global services, examines the factors driving the increased outsourcing activity in the healthcare vertical, including significant trends in the AO market.

“Outsourcing in the healthcare vertical has witnessed remarkable growth much of which is attributed to regulatory reform, increased customer centricity and focus on efficiency,” said Jimit Arora, Vice President, Everest Group. “To respond to growing market demand, service providers are investing in delivery capabilities, particularly for domain-centric IT application outsourcing.”
The annual report reveals the following key trends:

AO is included in the scope of more than 60 percent of all healthcare ITO transactions; the payer segment has the highest proportion of pure-AO transactions
Payer AO transaction activity peaked in 2010-2011, coinciding with the passage of the Patient Protection and Affordability Care Act in the United States
Large transactions (total contract value greater than US$25 million) account for more than half of the payer AO activity during the last five years
North America is the dominant market for large payer AO transactions; smaller-sized payer firms (less than US$10 billion in revenue) dominate transaction activity
Application development and maintenance, testing services, and software package implementation form the primary components in more than 80 percent of AO contracts
Offshore penetration in the payer services market is currently low and presents an opportunity for future expansion. India is the preferred delivery location for AO in the payer segment; China, the Philippines and Latin America are emerging as newer low-cost locations
Over US$3 billion worth of payer AO contracts are due for renewal between 2013 and 2018
Five key themes are fuelling IT services demand in the U.S. healthcare payer market:

Compliance with regulatory reform
Claims transformation
Convergence of information across healthcare entities
Consolidation and M&A
“Healthcare payers need to develop a technology strategy to realign IT with the evolving healthcare ecosystem, identify strategic partners to assist in that journey, and leverage optimal delivery locations,” said Arora. “Service providers need to invest in domain expertise across people, processes and technology if they want to grow and stay ahead of competition.”

The annual report is part of Everest Group’s new Healthcare Outsourcing research program launched in response to the market need for fact-based insights specific to sub-segments of healthcare – payers, providers and life sciences. A companion piece, IT Applications Outsourcing (AO) in the Healthcare Payer Industry – Service Provider Landscape, provides a comprehensive assessment and maps service providers on the Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix.

The Service Provider Landscape analyzes more than 15 AO service providers, eight of which are mapped on the PEAK Matrix. The Leaders include Accenture, Cognizant and IBM; Major Contenders include CGI, Dell Services, Infosys and TCS; and Emerging Players include Mphasis. Other aspiring service providers in the payer AO space include Fujitsu, HCL, Hexaware and Mahindra Satyam. These service providers currently have limited experience with large-sized payer AO contracts but are gradually building their strength in this field.


Savvis to Purchase Ciber Global ITO Business

July 31st, 2012

Savvis, a CenturyLink company CTL +0.10% and global leader in cloud infrastructure and hosted IT solutions for enterprises, and Ciber CBR -0.26% , a global information technology consulting and managed services company, have entered into an agreement under which Savvis will purchase certain assets of Ciber’s global IT Outsourcing (ITO) business for $7 million in cash at the time of closing, plus additional future consideration in the form of a cash earn-out payment based on results through December 2013.

The assets include client and vendor relationships, infrastructure, technology and facilities spanning several countries. In addition, Savvis expects to hire the approximately 750 people who currently support Ciber’s global ITO business.

Savvis plans to provide ITO clients with continued IT outsourcing support in addition to offering its enhanced capabilities, including cloud services. It is expected that clients will benefit from the direct relationship with Savvis, as well as the enhanced communications services provided through CenturyLink’s robust global network.

Ciber will continue to provide clients full lifecycle application development and outsourcing solutions, including system design, implementation and managed services, partnering with Savvis to leverage its expertise and resources in the physical infrastructure.

Completion of the transaction is subject to the delivery of certain third-party consents and other customary closing conditions. The transaction is expected to close in the fourth quarter of 2012.

The agreement builds on the partnership the two companies formed in July 2011 that enabled Ciber to leverage Savvis’ worldwide data centers and network capacity to serve the growing needs of Ciber’s clients. With more than 50 data centers throughout North America, Europe and Asia, Savvis is an industry leader in global infrastructure hosting and enterprise cloud computing environments.

“The acquisition of Ciber’s global ITO business will complement Savvis’ existing ITO assets by expanding the organization’s capabilities for application management services and help desk support,” said Jim Ousley, chief executive officer of Savvis and president of CenturyLink’s Enterprise Markets Group. “Ciber’s ITO customers will also benefit by gaining access to Savvis’ global footprint, services and account teams.”

“This action aligns with Ciber’s strategies to continue to narrow our focus on core offerings and market segments, and to drive growth through strategic partnerships with businesses that have scale and are leaders in the industry,” said Ciber Chief Executive Officer Dave Peterschmidt. “Our shareholders should see increased value as we concentrate on our core offerings. We will continue to provide global hosting and cloud solutions in partnership with Savvis where it benefits our clients.”

Forward-Looking Statements

This press release includes certain forward-looking statements that are based on current expectations only (including the estimated timeframe for closing of the transaction and expectations regarding future effects and benefits of the transaction), and are subject to a number of risks, uncertainties and assumptions, many of which are beyond the control of Savvis and Ciber. Actual events and results may differ materially from those anticipated, if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. There can be no assurance that the transaction will be consummated on the terms described above or at all. You are further cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Neither Savvis nor Ciber undertakes any obligation to update any of its forward-looking statements for any reason.

About Savvis Savvis, a CenturyLink company is a global leader in cloud infrastructure and hosted IT solutions for enterprises. Nearly 2,500 unique clients, including more than 30 of the top 100 companies in the Fortune 500, use Savvis to reduce capital expense, improve service levels and harness the latest advances in cloud computing.

About CenturyLink CenturyLink is the third largest telecommunications company in the United States. The company provides broadband, voice, wireless and managed services to consumers and businesses across the country. It also offers advanced entertainment services under the CenturyLink(TM) Prism(TM) TV and DIRECTV brands. In addition, the company provides data, voice and managed services to enterprise, government and wholesale customers in local, national and select international markets through its high-quality advanced fiber optic network and multiple data centers. CenturyLink is recognized as a leader in the network services market by key technology industry analyst firms, and is a global leader in cloud infrastructure and hosted IT solutions for enterprises through Savvis, a CenturyLink company. CenturyLink’s customers range from Fortune 500 companies in some of the country’s largest cities to families living in rural America. Headquartered in Monroe, La., CenturyLink is an S&P 500 company and is included among the Fortune 500 list of America’s largest corporations.


Philippines welcomes US junking of anti-BPO bill

July 31st, 2012

The Department of Labor and Employment (Dole) welcomed Tuesday the United States Senate’s junking of the anti-outsourcing bill.

Labor Secretary Rosalinda Baldoz said she agrees with the Business Processing Association of the Philippines (BPAP) on the clear benefits of having the business process outsourcing (BPO) sector in the country.

“It is very much welcome news,” said Baldoz in a phone interview.
“(This only proves that) Outsourcing is now a recognized legitimate business worldwide.”

Via a vote of 56-42, the US Senate recently junked a bill in the US Congress that would have discouraged outsourcing, which is an $11 billion business in the Philippines.

Because of this development, Baldoz said they are expecting the BPO sector to be more robust in the coming years.

“The more the BPO-ICT sector can expand its business in the Philippines the more it can generate the much needed employment for our workers,” said the labor chief.

From its current population of 640,000 BPO workers, Baldoz said the labor department expects the number to rise to 1.3 million or more than double.


PM sets up panel to review taxation of development centres, IT

July 31st, 2012

Prime Minister Manmohan Singh has established a committee to review taxation policies that have a direct impact on software exporters, business process outsourcing (BPO) companies and technology development centres of multinationals in the country.

The committee, led by N. Rangachary, former chairman of the Central Board of Direct Taxes, will look into issues of levying taxes on development centres, tax treatment of so-called onsite services of domestic software firms, and also finalise the safe harbour provisions announced in Budget 2010.

Safe harbour provisions are a proposed set of rules under which the income tax (I-T) department will accept the transfer price of international transactions declared by the company without a detailed scrutiny. Transfer price is the price at which one unit of a firm sells goods or services to another unit of the same company.

Development centres and BPO firms have been grappling with transfer pricing issues for several years, with companies claiming a significant proportion of their profits are stuck with the I-T department because of this.

Over 750 multinationals have such centres at over 1,100 locations in India.

Also, companies such as Infosys Ltd have been in the past slapped a tax demand of over Rs. 450 crore for claiming tax exemption on onshore services by declaring them as software exports. A few other companies have also received notices from the I-T department because of different interpretation of onshore activities. The industry has sought clarifications in this regard.

Singh had earlier set up an expert committee under Parthasarathi Shome, director and chief executive of think tank Indian Council for Research and International Economic Relations, to finalize guidelines for the contentious general anti-avoidance rules, whose proposed introduction with retrospective effect in this year’s budget evoked protests from foreign investors.


India giving a wake-up call to China’s IT outsourcing industry

July 31st, 2012

China’s expanding software outsourcing industry is rebooting to face competition on the domestic front from countries in Europe and India. In spite of facing the twin challenges of increasing labour cost and stiff rivalry from foreign companies, industry insiders have said
the industry is likely to grow hinging on robust domestic demand. But even in the domestic market, Chinese companies expect competition from India.

“Although Chinese-made software holds advantages in terms of price compared with overseas competitors such as Europe and India, local outsourcing providers are in urgent need of upgrading their services to protect the domestic market from incursion by overseas companies,” state-run China Daily said on Monday. It said India’s IT (information technology) outsourcing sector expanded as the number of talented “software writers boomed.”

“We should move fast to keep the business in the country because global players, such as India, are ready to compete against their Chinese counterparts in the Chinese market,” the newspaper quoted Guo Xin, former president of IDC Greater China.

Entrepreneurs across the industry have to find out ways to improve the added value of their products in a bid to survive as overseas outsourcing providers start to enter the Chinese market, said Guo.

Japan was the largest importer of China’s software products over the past four years, followed by the United States.

China’s capacity to digest overseas contracts remains weak compared with global players.

“Indian companies are able to absorb a transaction value 10 times larger than their Chinese counterparts, Shenzhen-based consulting firm Group reported,” the newspaper said.

Quoting data from the International Associated of Outsourcing Professionals, it said as many as 12 Indian companies were on the list of the top 100 outsourcing companies in the world this year and three Indian firms have found a place in the top 10; China’s top-ranked company, Neusoft Corp, barely made it into the top 30.

In fact, India’s Tata Consultancy Services’ China subsidiary was listed among the “2012 Top 10 Global Service Provider in China” in June. The award was presented by the China Council for International Investment Promotion.

On the positive side, the sector is expanding rapidly: In 2011, the output value of China’s software and information services hit a record high of more than 383 billion Yuan ($60 billion), up by nearly 40 percent year-on-year, according to an annual report issued by the electronic technology information research institute under the Ministry of Industry and Information Technology.

Chinese demand for software outsourcing hit 335 billion Yuan last year, taking more than 87 percent of the market share.

“Domestic demand will become the major driver for the industry. The turnover of the domestic market is on a trillion-Yuan scale,” Li from the Dalian Software Industry Association, said, adding: “The Chinese market will be one of the largest.” But it’s very likely that foreign companies, especially those from India, will be keeping a close track of that.


Cemex Signs $1 Billion Outsourcing Deal with IBM

July 31st, 2012

Cement maker Cemex says a $1 billion outsourcing deal with IBM will shift a number of IT functions to the Web, allowing the company to cut certain costs in half, adapt more quickly to volatile market conditions, and focus more closely on its core business.

The decade-long deal will enable Cemex, a Mexican building materials company still recovering from the housing bust in 2008, to outsource back office functions and creation of business applications to IBM. The agreement will save the company $1 billion over 10 years, Roberto Chaverri, vice president of vendor management, said in a conference call with reporters. The use of IBM’s cloud resources would help the company react more quickly should a global recession hit.

“We now have greater flexibility to serve our customers despite economic changes–we pay for what we use instead of having a fixed capacity,” Chaverri said.

The deal would save one of the world’s largest cement maker at least $100 million dollars per year by 2014, Chaverri said. The deal also will help the company concentrate its resources more productively, according to Chaverri. “[IBM] will help us to focus on our core business” he said. ”Not IT services.”

Cemex is seeing a turnaround in its U.S. business, after a long decline following the global slowdown in 2008.

It generated positive operating earnings in the U.S. before interest, taxes, depreciation and amortization, or Ebitda, last quarter for the first time in several years.

Chief Financial Officer Fernando Gonzalez told Reuters the outsourcing would affect 1,500 to 2,000 jobs at Cemex. Chaverri would not confirm those numbers, saying the details had not yet been worked out, adding only that some jobs would be absorbed by IBM but that other employees would be let go. In 2011 the company cut 6% of its workforce.


Protected by تهنئة
Get Adobe Flash player