Posts Tagged ‘2012’

Controversial predictions for IT and outsourcing in 2012

January 5th, 2012

I blogged earlier this week asking readers for their predictions for the year ahead in IT outsourcing. I have had some interesting predictions so I will publish some over the next few days.

Today are 8 predictions of outsourcing lawyer Mark Lewis, who works for Berwin Leighton Painsner. They make interesting reading.

1. The year that standard public cloud offerings are taken up by big companies, but only after the major cloud providers facilitate data protection compliance and some acceptable levels of data integrity and security.

2. Central and local government and NHS IT/BPO outsourcing opens up, but will run trouble with the unions over pensions.

3. Government mutualisation models flop through lack of interest by most of the big providers.

4. Massive focus on cybersecurity in the UK and information leaks of major cyber-attacks in the UK and elsewhere by sovereign states.

5. Payment processing (mobile and Internet) grows exponentially, leading to even more M&A activity.

6. Logica “merges” – but with whom?

7. Online retail wipes out the high street, whatever Mary Portas advises.

8. The corporate Blackberry overtaken by workers using their own devices.

What you think will happen this year?

Source:http://www.computerweekly.com/blogs/inside-outsourcing/2012/01/some-predictions-for-it-and-outsourcing-in-2012.html

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What’s in store for IT outsourcing in 2012?

January 4th, 2012

The global economy is creating an atmosphere of uncertainty in the IT outsourcing sector, but what should we expect in 2012?

This time last year there was a little more confidence about growth in the economy following the carnage left by the credit crunch. But hope has quickly changed into despair and the Euro crisis could push parts of the world back into recession.

Even the Chinese economy is growing at a much slower rate as European customers of its manufactured products tighten the belt.

So it is now time for your predictions.

Do you think there will be an increase as businesses outsource to cut costs?

Could more innovative outsourcing plans be put on hold until the economic outlook becomes clearer?

Will 2012 be the year that cloud computing finds its place in the outsourcing sector?

Source:http://www.computerweekly.com/blogs/inside-outsourcing/2012/01/whats-in-store-for-it-outsourcing-in-2012.html

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Cebu will be ‘fairly stable’

January 3rd, 2012

CEBU’s economy will be “fairly stable” this year despite uncertainties in the global market, business leaders said.

“The growth in the local economy in 2012 will be fueled by Cebu’s booming industries like business process outsourcing (BPO) and tourism. The continued investments from the private sector would also help Cebu weather the lingering effects of the US’ and European Union’s economic problems,” said Cebu Business Club president Dondi Joseph.

Plan your Sinulog week ahead and find out what’s in store for Sinulog 2012.

Economists had projected 2011 as a “recovery year” for the 2008 global financial crisis but full recovery was delayed as the EU debt problem and economic instability in the US continued to hound the global market, affecting export-driven economies like the Philippines, particularly Cebu.

Volatile

“It will be a volatile market this year,” said Cebu Chamber of Commerce and Industry president Samuel Chioson, referring to the potential impact of the economic problems of the world’s two biggest economies.

The Monetary Board of the Bangko Sentral ng Pilipinas earlier reported that “there is a need to continue to monitor the strength of external demand, especially amid signs of increasing downside risks to the global economy.”

“Economic conditions in Europe could weaken further in the period ahead, posing risks to external demand as well as to financial markets through risk aversion. While European policymakers made progress in their response to the sovereign debt and banking problems over the past month, confidence remains fragile as leaders have yet to decide on the implementation mechanics of the plan. As a result, the risks to the global economy still appear to lie predominantly on the downside,” the report stated.

Joseph said that while external problems will continue to affect the export industry, Cebu can capitalize on its other booming industries such as tourism, BPO and real estate to compensate for losses in export revenues.

Although there are no major public-private partnership (PPP) projects for Cebu this year, Joseph said the PPP programs have the potential to pump-prime economic activities.

He said that if PPP programs will be supported by correct economic policies, this will also help the country’s economy sustain its growth.

BPO services

Economists have predicted the country’s growth to be at 4 to 4.5 percent this year.

Chioson described last year’s growth to be more “privately-led.” He said local and foreign businessmen have poured in so much investments in Cebu as seen in the various property developments such as BPO and condo buildings.

According to Cebu Holdings Inc. president Francis Monera, demand for BPO services is expected to surge as more companies abroad seek to cut operation costs and improve efficiency.

The company expects a 20 percent increase in workforce for Cebu Park District, which currently has 35,000 employees.

Mandaue Chamber of Commerce and Industry (MCCI) president Eric Mendoza, on the other hand, expects the economy to grow moderately this year. He identified the low-interest environment, government spending and big infrastructure projects to be major drivers of the economy.

Philam Life president and chief executive officer Rex Mendoza, in his recent visit to Cebu, said 2012 will also be a year of preparations for the 2013 elections. Increased spending is expected to begin this year.

Despite market challenges, Rizal Commercial Banking Corp. first senior vice president and RBG deputy group head for VisMin sales Prudencio Gesta said local businesses will improve this year because of the country’s sound macro-economic fundamentals.

“We expect positive growth in the economy this year. More small and medium enterprises (SMEs) will continue to pour in investments this year,” said Filipino-Cebuano Business Club Inc. president Rey Calooy. He said SMEs have strong confidence on the Aquino administration.

Citing figures from the BSP, Calooy also reported that in terms of regional growth, Central Visayas grew by 11.2 percent this year, faster than the National Capital Region at 9.6 percent. He said this is an important economic indicator that Cebuanos should bank on.

Source:http://www.sunstar.com.ph/cebu/business/2012/01/02/cebu-will-be-fairly-stable-198494

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How to: Outsource Your Social Media in 2012

December 30th, 2011

One search of “Social Media Budgets 2012” brings up a host of articles related to marketers increasing their social media budgets for the coming year. While the numbers will tell you that more money is heading into this area of engagement, they won’t tell you exactly how marketers will go about accomplishing their goals.

According to the 2011 Social Media Marketing Report, 28% of marketers outsourced social media duties, a figure that doubled from 2010. If this trend is on par, or even slightly less, that would mean about half of all marketers will outsource some or all aspects of their social media activity in 2012.

But doesn’t the person in charge of your company’s social media have to reside in-house? Isn’t the point of social media to engage your audience with relevant and useful company related items? How do you put your company’s message in the hands of someone who may or may not know a thing about your brand?

The answer lies in establishing a clear plan of action, a lot of trust, and a little bit of luck.

All hands on deck

So far, you’ve created a number of social profiles, and generally add an item or two a day (or week). Some items have been rock stars, others have fallen flat. You’ve put some work into these projects, but haven’t been able to fully commit, thus the reason you’re outsourcing in the first place.

Just because you’re bringing a new party on board doesn’t mean that it’s hands off for you. When shifting responsibilities, it’s vitally important that marketers be deeply involved in the transition. Your new social media manager is experienced in their area, but they still need to know a lot more about your company before they can start generating the results you want.

Speaking of results driven campaigns, the more specific you can be with your new hired gun, the more targeted results you’ll achieve. Start with macro goals and drill down into the micro details. Don’t be afraid – talk ROI with your social media manager. Talk about YoY growth. If they don’t know what you’re talking about – it’s time to start looking for another candidate.

In addition to the existing accounts and networks you’re active in, this is the time to discuss with your social media manager what additional opportunities might be available. Remember, these professionals make their bread and butter from knowing about every social aspect under the sun. If you’re paying for it…put it to use.

Phrasing and Tone

Perhaps one of the most often overlooked elements to any social media campaign is the phrasing and tone. Think of your social media manager as the head writer of your favorite television show. This writer directly influences the overall feeling of the entire show. Sure, it might be difficult to transform a drama into a comedy, but I’m pretty sure Grey’s Anatomy has pulled this off. Oh wait, it’s still a drama? Every organization has it’s own specific way of presenting things. No two people can have the exact same phrasing and tone styles, but any writer worth their salt can quickly emulate another’s style and fold it into their own.

If you have existing social media material, point your new hire to this and see what their thoughts are on both the message, and how it’s presented. If you don’t have any existing social media material, now’s the time to drag out those marketing collaterals and have your social media manager read through every last word of it.

With that said, also be open to new ideas. Your existing material might be bang on for those B2B trade shows you’ll be hitting later this year, but with the immediacy and interactivity of social media, is there a way to retain the phrasing and tone, but still present the organization in a human to human light?

Need the info

As with any outsourced project, your social media manager is going to need a whole lotta info. Are you planning on a new product release in Q2? Let your social media person know about it ASAP. Got a roadshow planned for this summer? Now’s the time to let your social media person know. Basically, if you, the marketing person, knows about it, your social media person should know about it.

Likewise, your social media manager should have the opportunity to get to know key staff members and have a broader view into your company. They’re very likely to ask managers to tell them a bit more about their employees, as you’ve probably got a great number of “Our employees are what make us awesome!” content pieces waiting to happen. Think Tom’s amazing burger recipe – perfect for a 4th of July blog article. Or better yet, “Think you can beat Tom’s burger? Create a video and show us how”, etc.

If your social media manager is within suitable travelling distance, you might want to have them stop by the office at least once a week for the first few months. This will give you an opportunity to provide ongoing feedback (see below), and the new hire a chance to see the day-to-day operations, people, products, etc. Hint: If they don’t show up with a camera and snap at least a dozen “in action” shots, you might have the wrong social media manager.

If your outsourced social media manager is on the other side of the country/planet, try to schedule a weekly Skype call that will give both you and your hired gun a decent chance to talk more about the company.

Approved

When you bring a new employee aboard in-house, there’s always that obligatory period of checking in with them to see how they’re getting on, and how the work that they were hired to do is progressing. The very same is true for an outsourced social media manager.

Before signing on the dotted line, create an approval process for your new manager. This will allow you to still have power over what messages are broadcast and which you’d rather refine (see above).

Naturally, as your relationship with your social media manager develops and both of you become familiar and comfortable with an established message, the approval process can be relaxed or done away with altogether.

This is also a great time to see if you’ve made the right hire or not, specifically if you’re in a trial period. By reviewing and approving all of the new work, you’ll have a pretty good indicator if your social media manager is capable of adapting their phrasing and tone to match your message, as well as see what creative ideas they come up with right out of the gate.

Feed it back

This is the most crucial element to any project, outsourced or not. If your new hire is opening eyes, turning heads, and generally getting the “Holy cow!” reaction from your colleagues, let them know about it. Conversely, if the, “Umm? Really?” mill is starting to churn, nip it in the bud and talk to your social media manager about it immediately.

If the feedback is negative, be sure to include specific sentences, phrases, even words that weren’t quite meeting the mark. A good social media manager will have an ongoing list of dead-items that shouldn’t be approached again, or at least in a radically different way. Likewise, if the feedback is good, include specific examples of what you liked and how it was presented. Both positive and negative feedback for your social media manager will only help to point them towards what you’re after.

Outsourcing any project can be a risky venture. There are a number of variables involved that have to be calculated, and any risk mitigated. But by establishing and maintaining an open and honest feedback loop, creating real and obtainable goals, and setting guidelines from the very beginning, outsourcing your social media activities can be a great way to free up a bit more time on your plate, as well as bring in a creative, outside opinion.

Source:http://thenextweb.com/socialmedia/2011/12/29/outsourcing-your-social-media-in-2012/

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Outsourced IT ‘to become a greater feature of health market in 2012’

December 30th, 2011

Outsourced IT has a number of advantages that businesses in the UK may be getting used to enjoying when sending work out to specialist providers.

Increased efficiency, lower costs and faster completion of tasks could be just three of the reasons for turning to outsourcing.

IDC Health Insights has now suggested the process is to become increasingly popular among those in the health sector, reported InformationWeek.

Until now, the relationship between pharmaceutical companies and outsourced IT providers has typically been short and professional, it noted.

However, it is anticipated that the reliance on outsourcing could grow and “broader and deeper partnering relationships across entire functional areas” are expected to be formed within 2012.

This was highlighted as one of the body’s top ten predictions for the next year.

Lincolnshire Police Authority recently revealed it is to turn to outsourcing in greater volume over the years to come in a bid to reduce its total expenditure.

Source:http://www.codestone.net/news/story/outsourced-it-to-become-a-greater-feature-of-health-market-in-2012/801250356/

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10 Ways Cloud Computing Will Disrupt our Businesses in 2012

December 15th, 2011

If anything, 2011 should be remembered as the “Year of the Cloud.” The past year was an energizing one in terms of the advancement of cloud computing. The cloud approach was adopted by many organizations, and most vendors have now gotten into the game as well. What will 2012 bring? A possible motto for the upcoming year may be “Cloud First; But Show Me the Money.” Cloud will become simply be the accepted way of acquiring IT services and new applications. However, companies are tight with their IT budgets and want to see the value — and the pass that cloud has received because it has been so new and different is wearing off.

As we wrap up the year, it’s time to take a look ahead at what 2012 will bring:

1) “Cloud” will begin to fade as a differentiating term — because it will just be the way we do things We’re now getting to the point where cloud is being simply accepted as the delivery platform for applications and services. Cloud will keep on coming on stronger than ever before, but, ironically, it may also soon begin to seem more ho-hum and routine than a grand paradigm shift. Expect to see vendors this year begin to recognize this ho-hum factor and move on to new buzzwords.

2) Many businesses will follow the federal government’s example of a “cloud-first” policy. Last year, as part of its effort to streamline its $80-billion-a-year-plus IT budget, the government decreed that all agencies consider “cloud-first” options where feasible. Recognizing the wisdom of such an effort, and seeing it succeed on such a massive scale, companies will adopt their own cloud-first approaches when considering new systems purchases.

3) Pressure will grow to demonstrate cloud ROI. Companies may increasingly opt for cloud-first options, but that won’t take away the relentless pressure to demonstrate quick returns on investment. The traditional IT world has been feeling this heat for more than a decade now, and to date, cloud approaches, because they’re so new and game-changing, have gotten a pass. As cloud becomes a normal, accepted part of operations, it will come under greater scrutiny. Part of the calculation will need to include business continuity provisions — the Amazon Web Services outage last spring showed that too much reliance may have its price. The bottom line is that cloud needs to be implemented for business value, not just for the sake of having a cloud. and in many cases, cloud may not even be the most effective approach.

4) Private clouds will proliferate faster than public clouds. Many companies — especially those with significant IT infrastructures or sensitive data assets — are finding it worthwhile to adopt the cloud model to deliver their own internal applications as a service. As virtualization increases across enterprises, opportunities for private cloud creation will grow as well. Internal applications will be delivered via cloud services exclusive to the business.

5) Private cloud will elevate IT’s role in the business. Organizations not only rely on information technology to operate on a day-to-day basis, but also see it as their key strategy for growth in a hyper-competitive global economy. While they may be spending less time managing their own IT infrastructure, IT executives and managers are being called upon to advise and guide their organizations into this new realm. Part of the new IT value proposition may be to oversee the business’s growth as a cloud provider itself — even though it may have been a non-IT type of business before.

6) IT departments will both act as facilitators and competitors to public cloud providers. Organizations now have choices as to where to purchase IT services — either from their own IT departments, or from outside providers. While many IT executives will assume roles as objective advisers on such decisions, their own departments will need to provide good business cases as to why their services are more cost-effective and provide greater value than that of an outside service provider. Many companies will use a mix of outside and internal IT services, and IT departments will need to compete for that business. It’s not too far-fetched, however, to see some IT departments offering services outside their business.

7) Lines between service providers and consumers will blur – on many cases, companies will be both. Related to the rise of private clouds will be the fact that many companies — and individuals as well — will be building and offering their own services to the world. We’re already seeing a lot of this happening with the app store model, in which software publishers can draw sizable revenues by publishing apps in the cloud.

8 ) Public clouds will increasingly be seen as more secure than on-premises systems. While data security has been seen as the major challenge to external cloud engagements, there’s a good case now to be made that data may be more secure with an outside provider. A few months back, I spoke with a CIO who admitted that he felt his data is probably in better hands with a well-trained, SAS-70 compliant cloud provider than trying to keep his own systems and staff up to date with security procedures and protocols.

9) Economic growth will accelerate as more businesses are formed in the cloud. Let’s face it, there’s no point in investing $50,000 or more in servers and software when everything you need is right in the cloud. The availability of cheap — and sometimes even free — cloud computing resources may be laying the groundwork for a startup boom, the likes we have never seen before. Designing new products, without the need to go through corporate finance and IT approvals definitely is a great way to instill entrepreneurial spirit.

10) Cloud will disrupt the outsourcing model. As more enterprises adopt service-oriented architecture principals and practices, outsourcing may become an easier, more manageable option. At the same time, there will be fewer multi-million-dollar deals in which entire IT operations are handed over to outsourcers. A more modularized form of outsourcing will take root because the growing standardization and “hot-swappability” of cloud services and components makes it easier to outsource pieces of the IT infrastructure. This may make outsourcing less of the onerous either/or business decision it has been, as chunks of applications or services can be outsourced or brought in house as the situation fits, with minimal disruption to IT operations and priorities. As a result, we’ll see more “micro-outsourcing” and less big-ticket-turn-the-whole-operation-over types of deals. Plus, cloud is lowering the barrier of entry for outsourcing providers, which will in turn multiply their numbers, heightening competition and lowering prices. If anything, this will energize the outsourcing market.

Source:http://www.forbes.com/sites/joemckendrick/2011/12/14/10-ways-cloud-computing-will-disrupt-our-businesses-in-2012/

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Infosys sees budget cuts in 2012

November 15th, 2011

Infosys Ltd, India’s second-largest software exporter, said growth may slow next year because of a possible reduction in technology spending by clients.

Infosys is seeing “volatility” in customers’ decision-making, co-chairman S Gopalakrishnan said in an interview in Mumbai yesterday. Sales growth at the Bangalore-based company fell in each of the past four quarters as a global economic slowdown prompted companies to reduce their outsourcing contracts.

“Probably there will be some budget cuts for next year,” said Gopalakrishnan, 56. “In the short term, you will take a hit. You can’t restructure your business, look at new areas fast enough to replace everything that is lost.”

The comments are the first the code writer made since it slashed the dollar-based sales forecast for the year ending in March last month while increasing the rupee estimates because of a weaker currency. Infosys, which has the biggest cash pile in India’s computer-services industry, aims to expand by spending $700 million on acquisitions in areas where the company has “very small” exposure, the former chief executive said.

“Budgets in Europe will come down quite substantially,” said Ankur Rudra, an analyst at Ambit Capital Pvt in Mumbai, who has a “sell” rating for Infosys shares. Budget reductions in Europe will be bigger than among the US companies, he said.

Rupee, forecast Last month, Infosys decreased its forecast for sales in dollar terms in the year ending March 2012 to a range of $7.08 billion to $7.2 billion, from a range of $7.13 billion to $7.25 billion it estimated in July.

Infosys raised the guidance in rupee terms to between 335 billion rupees and 340.9 billion rupees, from an earlier forecast for 317.8 billion rupees to 323.1 billion rupees.

Last week, the rupee fell to the lowest since April 2009, which helps inflate the repatriated value of overseas sales at Infosys and other Indian software companies.

Gopalakrishnan said some of the budget cuts may be offset by customers allocating a greater portion of their spending to offshore software-service providers.

Infosys is looking to acquire companies that specialize in providing technology services to health-care companies and utilities, companies that build software platforms, or those based in non-English speaking countries, including Germany, France and Japan, Gopalakrishnan said. Infosys is looking at three to four targets at a time, he said.

Acquisition targets “We are seeing volatility in all sectors except some, like utilities and health care, which are countercyclical,” he said. “But our exposure to these sectors is very small. We want sectors that are countercyclical to become a larger part of our portfolio.”

Customers in the health-care industry contributed 1.8 percent of Infosys’s revenue in the quarter ended September 30, compared with 35.1 percent contributed by customers in the insurance, banking and financial services industry, according to the company.

Global IT spending Infosys had 185 billion rupees ($3.7 billion) of cash, near-cash items and short-term investments at the end of September, according to Bloomberg data.

Tata Consultancy may spend as much as $500 million on an acquisition in Germany or Japan, Chief Executive Officer N Chandrasekaran said in February.

Growth in worldwide spending on IT goods and services by businesses and governments, which includes computer equipment and outsourcing, will slow to 5.5 percent in 2012 for a total of $2.15 trillion, from estimated growth of 11 percent this year, according to a Sept. 16 Forrester Research Inc. report.

The outlook for IT demand in 2012 is “not bright,” as weak economic growth in the US and Europe will make business and governments more cautious about investing in technology, according to the report from the Cambridge, Massachusetts-based researcher.

Source:http://timesofindia.indiatimes.com/tech/news/software-services/Infosys-sees-budget-cuts-in-2012/articleshow/10739136.cms

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