BPO firm puts up IT park in Bataan

December 17th, 2014 by Rahul Jain No comments »

Business process outsourcing firm Grand Innovasia Concept Corp. (GICC) is setting up the first IT Techno Park at the Freeport Area of Bataan, which will serve as the company’s operations hub in the country.Outsourcing26

GICC’s planned complex will serve as the company’s main operation center for BPO online and interactive gaming activities in the country. It will also house other locators with provision for business and commercial spaces, the Authority of Freeport Area of Bataan (Afab) said in a statement.

GICC held a groundbreaking ceremony Monday for the facility which would be built on a three hectare land inside the Freeport.

GICC is a currently engaged in recreation, leisure resort, games and amusement center, particularly online and interactive gaming, computer games and other related recreational activities. It is also recognized as a master licensor and regulator of interactive gaming for international market.

The project of GICC is one of those that were approved this year by the Afab, which recently authorized the company to regulate and issue licenses to international gaming operators to operate their gaming businesses.

As of the end of October this year, investment pledges approved by Afab surged to P84 billion, from P2.2 billion a year ago.

The investment commitments came from 17 new business projects, including a business process outsourcing (BPO) facility and information technology related firms; a footwear manufacturing company; a distillery business, and a bulk terminal operation.

Source: http://business.inquirer.net/183616/bpo-firm-puts-up-it-park-in-bataan

5 Major IT Outsourcing Trends for 2015

December 17th, 2014 by Rahul Jain No comments »

As 2014 draws to an end, businesses all over the world are guaranteed to be enthusiastic over the new opportunities that 2015 has to offer, particularly in the Information Technology (IT) segment. Next year, IT services and products are expected to fuel productivity, streamline organizational growth, drive innovation, develop capabilities, and enhance customer relationships.Outsourcing25

A post at WhaTech.com lists down five of the major developments in the IT segment that companies should prepare for:

Innovative mobile apps and solutions
Businesses will integrate mobility and upgrade their already advanced capacity in various ways, and with that comes countless challenges which include security and flexibility. Regardless, firms will continue to empower their capacities with new applications that will help them properly engage with their customers.

Latest in cloud technology
Cloud technology is one of the strongest movers in today’s business industry. It enables companies to reduce the cost of operations and overhead expenses by paving the way for accessible data storage and information. As IaaS and PaaS continue to gain traction, development and testing of new applications are widely reinforced by this IT feature. The cloud has evolved from being merely a tool for disaster recovery and testing. The cloud is expected to assist in mobile functions and big data application development.

In-depth coverage on data and analytics
More applications will be created next year that are geared towards data and analytics. Businesses are seen taking advantage of all the data they collect from all activities, and are using it to improve competencies and strategies. Some of the trends in big data next year consist of linking Systems of Record (SOR) for various types and sources of content such as data, audio, video, and images.

New features in interface design and usability
Next year, the top trends for design will still be focused on In-web design – those that are used in code-free platforms, responsive design for mobile and smart gadgets, and flat design. For coding languages, the latest ones such as Hack, Go, and Swift will find their place amongst C, C++, Objective-C, HTML5, Python, Ruby, PHP, Java, C#, Javascript, Ruby, CSS, and SQL.

Covering protocols, domains, and applications
Forrester Research said the Internet of Things (IoT) will move to software from hardware next year. Cloud services will be utilized to connect all the rules or requests across all domains and platforms. Analytics and data will also increase as IoT continues to drive businesses including small to medium-sized ones to digitized processes.

By considering these trends next year, organizations can ensure that core strategies are not derailed and they will maintain their uniqueness in the aggressive and competitive world of business. – See more at: http://www.microsourcing.com/blog/5-major-it-outsourcing-trends-for-2015.asp#sthash.y9DGyI2Y.dpuf

Striking the Balance: Is your IT strategy helping you reach your goals?

December 17th, 2014 by Rahul Jain No comments »

Success is all about the ying and yang of things- weighing every opportunity and challenge and striking the right balance. And in the increasingly complex data center environment, this balance has never been more important. Faced with rising costs and an increasingly complex IT environment to manage, companies are exploring alternative ways to manage and expand their infrastructures. And many have found the answer in IT managed services. Outsourcing24Organizations today fully realize that some level of IT outsourcing is in their future but it needs to provide real-time resource allocations for both their IT staffing resources and the ability to leverage different platforms (colocation, cloud, managed, and network) to optimize workload efficiencies and reach corporate goals. 

This webinar will discuss how to begin down a Hybrid IT path that adds on to your current on-premise IT infrastructure. What workloads make the most sense to move off-premise? What do you need to think about before beginning the move, and how do you best manage the migration?

Miami County to outsource all IT work

December 17th, 2014 by Rahul Jain No comments »

Miami County is doing away with its information technology department and outsourcing all the work to a private company after three server crashes this year severely interrupted county business.Outsourcing23

Miami County commissioners Monday approved a three-year contract with Indiana-based Intrasect Technologies, which will take over control of all the county’s technology work next year and begin installing new infrastructure to fix the server problems.

Steve Forrester, president of Intrasect, said the company will provide regular IT work for the county from 7 a.m. to 5 p.m. during the work week. Any services provided beyond that time will cost extra.

Commission Chairman Josh Francis said the contract will cost on average $189,000 a year. He said that’s about the same amount the county paid last year for three on-staff IT workers.

The decision to hire a technology firm comes after server crashes at the courthouse in February, April and July disrupted government services for around four weeks in total this year.

During the crashes, child-support payments couldn’t be sent, traffic tickets and other fines couldn’t be paid, workers couldn’t use the county’s email and court and jail systems were interrupted.

Forrester said the new IT contract does not include the cost of engineering and installing the new server infrastructure, which could come with a more than $100,000 price tag.

However, the contract does include any work created if the current servers crash again before the new server technology is installed, he said.

“We still have a certain amount of risk with the existing infrastructure,” Forrester said. “Until some of the new infrastructure is put in place, there’s still a chance that some of the problems we’ve seen will occur. We’re committed to dedicating the resources to get through those problems.”

Miami County Auditor Jane Lilley said the potentially steep cost of fixing the technology problems could create budget problems in the county, which trimmed $1.5 million from its 2015 budget in October and eliminated 10 full-time employees.

“Finding the money could be difficult, but we don’t have many options,” she said. “In order to operate, we have to have a working system.”

Commissioner Larry West said the severity of the crashes and the complexity of the current system warranted outsourcing the work.

“We have to make a change,” he said. “It’s not a reflection on our IT department, but this gives us some resources that we haven’t had in the past.”

The county currently employs two on-staff IT workers, who will be let go at the end of the year. Intrasect has offered to hire both employees, who could start working at the company next year.


How to assess your tech needs according to Intel Services

December 17th, 2014 by Rahul Jain No comments »

In this guest blog Joel Reid, new business sales leader at Intel Services, explains what brands and retailers need to know when specifying technology in an ever evolving world.Outsourcing22

“In the latest Gartner CMO Spend Survey Report 2015, customer experience is predicted to be the top technology investment for the year ahead among the biggest hitting companies.

According to research by Martec, a third of CIOs at the UK’s top 150 retailers say that other departments, such as ecommerce and marketing, invest in technology outside of the IT department’s control, in a bid to keep pace with digitally-savvy shoppers.  As marketing has become more digital and data-led, the focus on customer engagement has blurred the organisational lines between the CIO and CMO.

Increasingly technology-driven consumer behaviour is creating new demands on CMOs to connect with its customers in every channel.  In turn, these demands have seen CMO buying power burgeon in the last few years, with Forbes suggesting this could be as high as controlling 40% of IT spend.

But, while ecommerce and marketing managers have that all important touch point with the consumer, if the decision making on IT spend becomes siloed, brands and retailers run the risk of losing the business value and efficiencies associated with integrated solutions.  It could also lead to overlapping Software as a Service (SaaS) bought in by different departments or used by affiliates, which otherwise could have been consolidated to create cost savings.

This is placing greater pressure than ever on CIOs to regain and retain control of enterprise technology, at the same time as adding value to other departments that the business demands.  Their challenge is to connect their information and intelligence in order to create a tighter and more profitable engagement.

To create the seamlessly integrated customer journey that today’s ‘always on’ omnichannel shopper necessitates, retailers should adopt a similarly joined up approach; effectively managing and unifying their activities in all channels.  This can be both directly and through a network of partners, affiliates, agencies, developers and media.

CIOs will need to align all these functions under a holistic strategy, identifying where solutions can most influence customer engagement, whilst delivering against business objectives.  This will build trust amongst the marketing department that IT can deliver value.  And, in turn, make CMOs less likely to bypass IT when outsourcing to vendors, a decision which, if made in isolation, may be made in haste or without the architectural insight CIOs can provide.  This means IT architecture needs to be multifunctional, with the flexibility to be implemented by multiple users, as well as being able to respond quickly to changes in customer behaviours and demands.

Application Programming Interfaces (APIs) are one example of technology that can help CIOs achieve this level of integration, acting as the bond between disparate applications and devices, and enabling all the players to meet rapidly changing consumer preferences.

By working together CMOs and CIOs can harness the right technologies and solutions to generate greater benefits for long term business gains.”


Wipro spending $200 million on building next generation platforms

December 16th, 2014 by Rahul Jain No comments »

Wipro is spending more than $200 million annually on building next generation platforms that focus on disruptive technologies including cognitive technologies, automation and machine-to-machine learning as the country’s third-largest software firm seeks to edge out competition in winning large deals. Outsourcing10

Over the past two years, the company has ploughed $400 million in developing about ten intelligent solutions, some of which it has started using internally and a few it is using for customers, said a senior executive. “Wipro has significantly stepped up its funding of the R&D projects in the last couple of years,” said chief technology officer RK Sanjiv.

“This is to not just ensure that we become the next generation services firm of future, but also to be future-ready for our customers,” said Sanjiv, declining to put a number. But he said the company invests more than the industry average in these initiatives.

This focus on building intelligent platforms coincides with the stint of Rishad Premji, son of chairman Azim Premji, as head of strategy, making some believe the younger Premji could be potentially driving this change at the Bengaluru based company.

Incidentally, it was Azim Premji who brought Tata Consultancy Services veteran Satishchandra Doreswamy, now chief business operations officer at Wipro, in 2011 to help transform the company by putting together a team of engineers to focus on these technological platforms. Wipro’s thrust on building internal intellectual property-led platforms comes at a time when cross-town rival Infosys, under new chief executive Vishal Sikka, too is aggressively talking about building platforms.

Homegrown technology companies invest on an average 2-3% of revenue on building platforms. Wipro’s revenue for the fiscal through March 2014 was $6.7 billion, and if it invests more than the industry average, it is putting in $200 million every year in new solutions.

Wipro is now a team of “hundreds of engineers and research scien tists”, according to Sanjiv. His mandate is to focus on three key themes: cognitive technology, machine-to-machine learning and in building smart devices.

According to some experts, information technology companies are investing internally in building these solutions because of the desire to win large outsourcing deals as every customer is looking to its IT vendor to bring in more valuegeneration business rather than merely maintaining the back-end technology infrastructure.

Doreswamy last month told ET that Wipro’s energy and utilities vertical managed to bag its $1.2 billion, 10-year outsourcing deal with Canadian utilities firm ATCO on account of the “transformational benefits” it could help offer.

“(Two other) examples of Wipro’s solutions are Base and Fixomatic suite of tools,” said Tom Reuner of London-based IT research firm Ovum. “The direction of this journey is to protect margins by automating low-level tasks while hiring and retaining talent for value-creating activities.”

Reuner and other experts said the focus of software exporters on intelligent solutions is also driven by their desire to increase revenue without increasing headcount.

In September, ET reported about Wipro’s plans to start with its most ambitious reorganization exercise, under which it aims to become a leaner 1,00,000-strong company from the current levels of 1,52,000 in three years.

The company plans to do this without resorting to mass layoffs but by “selectively filling” in roles of executives who leave.

As Wipro seeks to embrace automation and artificial intelligence, the company can do away with engineers who are currently doing basic-level repetitive work. Already, Wipro has started using, internally, a cognitive platform for its help desk system, thereby simplifying work process for employees. One other intelligent technology platform which the company has started work on for its retail clients is “Wipro Sight.”


Shares In India’s TCS Fall After Indicating ‘Weakness’ In Financial Services, North American Businesses

December 16th, 2014 by Rahul Jain No comments »

Shares of Tata Consultancy Services Ltd., India’s largest software services company by revenue, took a beating Monday after warning of slackening demand among financial services clients, the company’s biggest business segment. Shares fell 90 rupees at close of trading in Mumbai, or nearly 3.7 percent, to 2,365 rupees from 2,455 rupees at Friday’s close.Outsourcing20

Demand in North America and Britain — the Indian IT outsourcing provider’s largest markets — will also be affected by “seasonal weakness” as well as because of cuts in spending by clients in the insurance sector, TCS had said in a statement on Friday, after market hours. The seasonality refers to fewer working days in the holiday season and furloughs that are seen as reducing the number of billable days of work during the October-December quarter.

“Q3 is a seasonal quarter, and our revenue is going to reflect, unfortunately, the negativity of this seasonality, Rajesh Gopinathan, TCS’s chief financial officer, told analysts Friday.

Manik Taneja, an analyst at Mumbai brokerage Emkay Global Financial Services, said in a note, after the briefing: “TCS’s slight cautiousness on demand (indicating that ‘demand momentum has seen some slackening in recent months’) coupled with weak revenue performance in Dec’14 quarter will drive revenue downgrades for TCS as well as the sector as a whole.”

While the underlying macro-level reasons for growth in Indian IT companies’ outsourcing business remain strong, TCS’s commentary suggests that prospects for strong acceleration in demand seem increasingly remote. Heading into its last quarter of the current fiscal year, which ends March 31, the $118 billion outsourcing industry is not likely to grow faster than last year, Taneja said.

Referring to the analyst briefing, Taneja wrote in the note: “TCS’s indication of ‘relative mutedness’ in constant currency revenue growth is a tad disappointing.” While the company didn’t give any detailed outlook for the calendar year 2015 or the fiscal year 2016 that ends Mar. 31, 2016, TCS indicated some “demand slackening in recent months,” the analyst wrote.

“This in our view poses downside risks to growth estimates not only for TCS but for the sector as a whole,” he said in the note.

Sales to financial clients, accounting for over 40 percent of the company’s revenue, “continues to be impacted by weakness in insurance and products,” TCS said, in a statement to the Bombay Stock Exchange. North America accounts for more than half of the company’s revenues. Demand for its services to retail, manufacturing and technology clients could also be affected, the company added in its statement.

TCS will report its December-quarter earnings on Jan. 15, according to its website.


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