Cloud, outsourcing and m2m driving european data center growth

July 18th, 2014 by Rahul Jain No comments »

As companies look for easier ways to process a growing volume of data, without the problems associated with in-house data centers, the uptake of data center services will continue to rise says a new survey.Outsourcing27

The market is expected to see a compound annual growth rate of 16 per cent up to 2018 despite several restraints. The United Kingdom, Germany, France and Benelux are predicted to be the largest markets in the region.

The cost advantage of outsourcing as well the growth in cloud, machine-to-machine connectivity and content-heavy applications is lending momentum to the European data center services market.

New analysis from Frost & Sullivan, European Data Centre Services Market, which covers the retail colocation and managed hosting segments, finds that retail colocation will witness lower growth rates than managed hosting due to its market maturity.

The retail colocation segment generated revenues of $2.83bn in 2013 and is estimated to reach $5.27bn in 2018; managed hosting revenues will increase from $2.01bn to $4.90bn over the same period.

“The pressing need to focus internal resources on innovative IT tasks and capitalise on economical IT management services compel enterprises to turn to managed hosting providers for data centre services,” says Frost & Sullivan Information and Communication Technologies Research Analyst Shuba Ramkumar. “The growth of cloud services will also drive the colocation services market in the short term.”

In the long term, however, increasing efficiency and security of the cloud will challenge the growth of the retail colocation market.

An additional problem is that organisations across Europe are bound by regional data laws that complicate outsourcing buying decisions. The location of data centers, therefore, becomes an important consideration for users when choosing a provider.

The regional nature of European organisations also means that many of them are wary of foreign companies and prefer local providers. These cultural and language barriers are especially strong in countries such as France, Spain, and Italy says Ramkumar.

“In order to widen their customer base across Europe, it is important for providers to offer services from a data center located within a region,” advises Ramkumar. “At the same time, they must provide efficient IT support as well as ensure data confidentiality and security to win the trust of potential customers.”

Due to the need to implement different infrastructure frameworks based on application type, enterprises will use traditional data center services alongside the adoption of cloud services. As a result, the European data center services market is focussing on more hybrid data centre services that combine colocation, managed hosting and cloud solutions.

Source:http://www.datacenterdynamics.com/focus/archive/2014/07/cloud-outsourcing-and-m2m-driving-european-data-center-growth

Tata revenue, profit grows amid strong outsourcing market

July 18th, 2014 by Rahul Jain No comments »

Tata Consultancy Services posted strong revenue and profit growth in the second quarter, taking advantage of an uptick in the outsourcing market.Outsourcing26,

Revenue growth in the quarter came from all the industries the company addresses, except the insurance segment, which saw muted growth, TCS CEO and Managing Director N Chandrasekaran told reporters Thursday.

TCS also had strong demand from key markets like North America, Europe and the Asia-Pacific region.

The company had revenue of close to $3.7 billion in the quarter, a year-over-year increase of 16.7%, according to IFRS (International Financial Accounting Standards). Net profit was $845 million, up by 20.5% from the same quarter last year.(

The company’s margins have stayed steady despite the appreciation of the rupee and a 10% wage hike, Chandrasekaran said. The company added 4,967 staff in the quarter, taking the total to 305,431 at the end of the quarter.

TCS, which is India’s largest outsourcer, is benefiting from a rebound in the outsourcing industry, reflected in the signing of many new contracts.

Market intelligence firm Information Services Group said earlier this week that the global outsourcing industry had experienced its highest ever second quarter.

The ISG Outsourcing Index, a measure of commercial outsourcing contracts with annual contract value of $5 million or higher, showed that a record 340 contracts were signed in the second quarter, with most growth coming from deals valued at under $40 million annually.

Competitor Infosys reported last week that its revenue for the quarter grew 7% year on year, to $2.13 billion, while net profit grew 15% to $482 million, on the back of some large deals.

Source:http://www.computerworld.com/s/article/9249802/Tata_revenue_profit_grows_amid_strong_outsourcing_market

Wipro bags $1.2 billion outsourcing contract of Canadian firm ATCO

July 18th, 2014 by Rahul Jain No comments »

Wipro has bagged a $1.2 billion 10-year deal to manage information technology outsourcing of Canadian energy and utilities firm ATCO, thereby giving a further fill-up to the Bangalore-based IT firm’s oil and gas vertical. Outsourcing25

Under the deal – announced on Friday – Wipro will buy ATCO I-Tek, the IT subsidiary of ATCO for $195 million, and take on board 500 employees. The company, post the closure of the deal in the current quarter, will later merge ATCO I-Tek with itself.

“We have traditionally had a strong position in the Utilities space in Europe and this engagement provides momentum to our business in Canada and Australia,” said Anand Padmanabhan, Chief Executive – Energy, Natural Resources and Utilities, Wipro.

Wipro’s oil and gas unit generates over a $1 billion of the company’s $7.3 billion in revenues and is also one of the fastest growing units even as rival InfosysBSE 0.18 % tries to garner a significant share of providing IT services in the oil and gas market.

“This is outsourcing deal with significant amount of transformational and is also one of the largest deals for Wipro,” Padmanabhan told ET.

This will be the second such acquisition made by the Energy and Utilities division of Wipro, after it bought US-based Scientific Applications International Corp for about $150 million in April 2011.

Padmanabhan said that the buyout of ATCO I-Tek will also help Wipro as the company services other clients in the resource-rich regions of Alberta in Canada and Perth in Australia, though he declined to share the number of clients ATCO I-Tek has for now.

Source:http://economictimes.indiatimes.com/tech/ites/wipro-bags-1-2-billion-outsourcing-contract-of-canadian-firm-atco/articleshow/38602266.cms

Is outsourcing killing us?

July 17th, 2014 by Rahul Jain No comments »

The U.S. is experiencing a different kind of “reshoring.” China, the world’s largest air polluter, is sending us via the jet stream a fair amount of their harmful emissions. And, according to a recent study published in the Proceedings of the National Academy of Sciences, much of it is our own fault.Outsourcing25

Researchers say a large part of the emissions are due to Chinese manufacturers making goods for foreign consumption. For years, American companies have been outsourcing production to China to take advantage of low labor rates. So all the cheap appliances, toys, and electronics we’re hooked on may be coming back to bite us, in an indirect way.

Making many of these products takes a lot of energy. Chinese industry relies on coal as its main source of power, and emissions controls on power plants are often limited or outdated. Further, the general level of manufacturing technology and energy-efficiency standards in particular aren’t as advanced as in the west, so it takes even more energy to make these goods in China.

The study says 36% of the sulfur dioxide, 27% of nitrogen oxides, 22% of CO, and 17% of soot emitted in China are due to production of goods for export. About a fifth of those pollutants were attributed to goods headed to the U.S.

Atmospheric models used by the researchers indicate that this accounted for a quarter of the sulfate pollution over the western U.S. in 2006, and increased surface sulfate concentrations by up to 10% and ozone by 1.5%.

According to the U.S. EPA, scientific evidence links short-term exposure to high levels of sulfur oxides with an array of adverse respiratory effects, including bronchoconstriction and increased asthma symptoms, particularly in children and the elderly. Longer term, it can cause or worsen respiratory diseases such as emphysema and bronchitis, and can aggravate heart disease.

A second NAS study claims computer models show that pollution from Asia, particularly fine aerosols, could be intensifying Pacific storms headed to the U.S. and altering weather patterns over North America.

Simulations showed that aerosols alter the distribution of moisture and heat in the Pacific storm track, a relatively narrow zone where cyclones form and travel and a major driver of weather in the Northern Hemisphere. These tiny particles suspended in the air can change weather patterns because they scatter or absorb solar radiation; and water vapor condenses around aerosols, a process that alters cloud formation and makes them denser and higher. The results, according to the model, are more precipitation, stronger cyclones, and more heat moving from the tropics toward the arctic.

Researchers didn’t predict how this affects U.S. weather, so we have to cross our fingers that it doesn’t exacerbate the Southwest drought or Midwest storms.

What is pretty clear is that air pollution in China isn’t a regional problem. Thanks partly to outsourcing, what we save in cheap goods we’re paying for in lower air quality and, possibly, worse weather.

Source:http://machinedesign.com/blog/outsourcing-killing-us

Qualcomm outsourcing manufacturing of new 14nm processors to Samsung

July 17th, 2014 by Rahul Jain No comments »

Despite the fact that it makes its own processors, Samsung has long depended on Qualcomm because its processors have historically been the only onesOutsourcing23 with LTE on the chip itself, a necessity for markets like the US. And while Samsung Exynos processors are nice, the lack of LTE is their downfall. However, Samsung’s relationship with Qualcomm will now go both ways.

Qualcomm has outsourced manufacturing of its newest 14nm chips to Samsung. The Snapdragon 805 is a 28nm chip, the chips being made with the 14nm FinFet process will be released sometime in 2015. Not only does this benefit Samsung, but it could also improve Exynos chips in some way.

Samsung’s next Exynos chips will have LTE modems included, so the companies dependance on Qualcomm may waver. But with the company manufacturing the newest Snapdragon chips, it might create a better business partnership. What do you think of this new partnership?

Source:http://androidandme.com/2014/07/news/qualcomm-outsourcing-manufacturing-of-new-14nm-processors-to-samsung/

IBM wins six-year outsourcing contract from Janalakshmi

July 15th, 2014 by Rahul Jain No comments »

International Business Machines Corp.’s (IBM) India business has signed a $100-million outsourcing contract with microfinance company Janalakshmi Financial Services Pvt. Ltd, which is promoted by social entrepreneur Ramesh Ramanathan, to manage back-office projects. This deal comes months after Bharti Airtel Ltd renewed its landmark outsourcing contract with IBM.Outsourcing22

Financial details of the contract were not disclosed. However, two people familiar with the developments, who requested anonymity, pegged the deal value at about $100 million.

As part of the six-year deal, IBM will manage back-office operations such as application development and maintenance and infrastructure management services. It will build a technology platform for Janalakshmi and provide mobile, cloud computing and analytics services as well. IBM will also be responsible for digitizing and automating operations and processes at Janalakshmi.

Janalakshmi has previously also handed out contracts to IBM rival Accenture Plc. Last year, it gave a five-year contract to Accenture as part of a cost-cutting drive amid expanding operations.

In 2013, Janalakshmi had applied for a banking licence. The Reserve Bank of India eventually handed out licences to IDFC Ltd and microfinance institution Bandhan Financial Services Pvt. Ltd.

Earlier this year, Bharti Airtel Ltd renewed its outsourcing contract with New York-based IBM. The renewed five-year deal is pegged at around $750-800 million.

Source:http://www.livemint.com/Companies/9DdPwbmG9NcenU9hwyW8GL/IBM-wins-sixyear-outsourcing-contract-from-Janalakshmi.html

Infosys denies allegation that it discriminated against Harley contract worker

July 15th, 2014 by Rahul Jain No comments »

Infosys Ltd., an IT staffing firm hired by Harley-Davidson Inc. to outsource its internal IT functions, is denying claims after being sued for discrimination in a class action lawsuit over its practices in staffing the Milwaukee motorcycle manufacturer’s project.Outsourcing22

Kelly Parker, a former contract worker, and Brenda Koehler, of Milwaukee, allege in the lawsuit that the outsourcing firm discriminated against American workers a year ago by replacing them with workers from South Asia. Infosys, which is based in India, has disputed the claims saying that the company faced a talent shortage in the U.S.

The case was filed in the U.S. Eastern District Court of Wisconsin in August 2013.

“Selection was based on skills and experience of the individuals. We reject any accusation that Infosys discriminates against applicants or employees based on their nationality or race,” according to a statement by Tara Kozak-Lindsay, a spokeswoman for Infosys. “When we use H-1B visas to bring people with specific skills for short term engagements to work on projects for our clients, their salaries meet or exceed US Department of Labor mandated minimum levels for respective job categories. In addition, we recruit US residents to support our growing business. Today we have over 440 active openings across 20 states in the US for local hires.”

At the time, Infosys had 17 locations and the center was expected to train 125 people, but Harley laid off 125 of its employees and of those, 83 were expected to have “preferential consideration” for Infosys jobs.

Infosys did not identify how many workers were hired onto the project, but Harley confirmed that some were hired.

“We told them that they had to create a data center in Milwaukee, which it did,” said Maripat Blankenheim, Harley’s director of external communications. “It had to look at the existing employees, but they were not required to take them. A lot of our employees got jobs here. It’s not that we wanted to shed those employees; we actually hired some back in newly created positions. So it was a net gain of Harley-Davidson employees to manage the work.”

But the federal lawsuit alleges that at least one of the Harley contract workers was discriminated against.

According to federal court documents, Parker worked for another third-party contractor, Enterforce Inc., that Harley had used to provide global information services to its internal customers before it hired Infosys Ltd.

Parker, who performed contract work at Harley’s Tomahawk location from February 2012 through May 2013, interviewed with Infosys for the position she was already performing twice, but it never hired her, according to the complaint. The complaint also alleges that Parker trained a man who was an Indian national who then took over her duties, and in August 2013 Parker was fired by Infosys because her desk area wasn’t tidy and she was late to work one day.

In November 2013, Infosys paid $35 million to settle claims made in another federal suit that it fraudulently used methods to get “cheap visitor visas for its personnel,” according to a story by CNBC. That case stemmed from the actions of former Infosys employee-turned whistleblower that helped lead to a backlash against the use of H-1B and other visa programs.

Infosys denied guilt in the case, but it paid the largest amount for an immigration case.

Source:http://www.bizjournals.com/milwaukee/news/2014/07/14/infosys-denies-allegation-that-it-discriminated.html?page=all

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