Posts Tagged ‘Business’

New sourcing norms key to IT turnaround

July 21st, 2014

The government needs to rework procurement norms for IT services to reboot the sector.Outsourcing30

Besides the slow pace of decision making, mounting dues from government agencies have slackened the growth in domestic IT business.

Nasscom has projected a flat growth of about 10-12 per cent for the market in the current fiscal, almost at the same levels as the previous year.

Government agencies account for 50 per cent of IT services in the country. ‘

According to the apex body for IT and business process outsourcing in India, an efficient timeline for project execution can restore confidence and fuel a turnaround for the local industry.

While the allocations in this year’s Union budget will give a significant push, the impact, if any, will only be felt next year.

The IT market grew 10 per cent to $32 billion in 2013-14. The 10 per cent growth was in rupee terms even as it was zero in dollar terms.

“The domestic market has been a big disappointment. There are many factors for this. One is the general slowdown in the economy and reduced investments by companies in the private sector. Investments have been delayed over uncertainties in government decision making because of the elections and other economic factors. Companies have huge dues from the government, even for executed projects,” R. Chandrashekhar, president of Nasscom, told The Telegraph.

The current outstanding is around Rs 4,000-5,000 crore from the government, both at the central and state levels, accumulated over the last three years. This has made companies reluctant to respond to government needs.

“In this year, we do not see any significant change in the growth rate of the domestic market. It will be 10-12 per cent.

“In exports, we are projecting a 13-15 per cent growth. But the domestic market will trail… there are huge issues with the whole system of procurement and payment. There are artificial barriers preventing growth from taking place. But the demand is very high,” he said.

Smart cities

The IT industry is betting big on the setting up of 100 smart cities announced in the budget. Such projects will require strong infrastructure such as broadband and adequate use of information and communication technology to manage utilities, power and online government services.

The turnover of the IT industry is slated to reach $300 billion by 2020 from about $118 billion now.

About 80 per cent of the industry’s current turnover of $118 billion come from 150 large companies, while the remaining 20 per cent are from start-ups and product firms.

Source:http://www.telegraphindia.com/1140721/jsp/business/story_18636260.jsp#.U8y7peOSzPM

Simplifying IT Pays Off With Big Savings, Better Business Success

July 9th, 2014

Companies can improve their business outcomes and their technology efficiency – and reap big cost savings — by reducing their IT complexity, according to a new report by IDC.Outsourcing6

Many CIOs are watching their worlds collide. Consumer technologies such as smartphones, tablets and social networking tools as well as new cloud services are coexisting with legacy applications, server rooms and aging network infrastructure. This creates a complexity that IT hasn’t seen before.

IT organizations that support demanding business requirements often find they need to support greater levels of complexity.

The business side wants better accessibility for users and easier access into customer data. Ironically, as technology gets simpler for end-users its gets more complicated behind the scenes. Complexity is a fact of life for IT professionals, but according to a new IDC study, corralling that complexity can save enterprises big-time and improve business outcomes.

The report, which was sponsored by Oracle, is based on a study of nine companies (all Oracle customers) in various industries including government, financial services, retail, medical and others. The average number of users at the companies IDC interviewed is 23,000 and the average annual benefit of reducing complexity is $83 million, which equates to $3,610 per user, according to IDC.

In addition to cost savings, the study participants benefitted from faster time to market, better customer service and the capability to reallocate IT staff to more strategic projects after they reduced complexity, according to IDC.

Complexity can cost both the business and IT side of the company, according to the report. Challenges on the tech side include increased operational costs, IT staff burden and reduced capability to provide high levels of service to the business. As IT becomes more strategic to the enterprise business applications, complexity can leave the business at a competitive disadvantage, according the study.

The IDC report cites the following factors as causes of IT complexity, based on interviews with the companies in the study:

Corporate mergers and acquisitions.
Business decentralization.
Greater needs to support business demands.
Continued use and importance of legacy systems.
Disparate systems and standards.
Supporting fast pace of change.
Mobile /BYOD support.

IDC is quick to point out that complexity doesn’t equate to things done incorrectly, which could have been avoided with more efficient planning. “Our research found the reality is much more nuanced. In fact, complexity is often a necessary price of entry. IT organizations that support demanding business requirements often find they need to support greater levels of complexity,” IDC writes in the report.

How to Keep It Simple

Another key factor contributing to greater IT complexity is user expectations, according the study. Users expect a consumer-like experience while tapping social networking tools and accessing enterprise apps via mobile devices.

“Public social networks, modern Web sites, mobile applications and popular Android and iOS smartphones and tablets have created the expectation of simplicity in all user experiences while moving complexity ‘behind the scenes’ and out of the way of the consumer experience,” according to IDC.

With all the challenges IT leaders face, how can CIOs reduce complexity? IDC reports that organizations are taking multiple approaches, including the following:

Consolidation and rationalization of applications, systems and data centers.
Application modernization (replacing legacy applications).
Unifying operating systems to a single environment.
Outsourcing to third-parties and cloud computing providers.
Deploying better automation and integration tools and technologies.
Breaking Down the Benefits

Below IDC breaks down the per-user savings in six categories. The amounts are based on the nine companies in the study and IDC cautions that actual benefits will vary by organization and industry.

Knowing you should simplify IT is one thing. Knowing where to begin is another. To help move in the right direction, IDC has developed what it calls a Simplification Road Map, which it says will help companies reduce complexity in their IT infrastructure. Key components of the road map include these four processes:

Start at the top: Secure strong executive support because successful simplification projects require deep-seated change, not only in the IT organization but also often among users and lines of the top, according to IDC.

Embrace an entrepreneurial spirit: IDC reports that companies it interviewed for the study found it best to use an entrepreneurial approach consisting of replacing outdated infrastructure or building out new IT infrastructure to support new business opportunities. IDC writes. “You can’t simplify infrastructure by adding new layers of integration, UIs, or applications.”

Head to the cloud: IDC says that sourcing services from third-party service providers and/or the cloud service providers with the necessary scope, scale and expertise not only can free up valuable resources to focus on core operations but also can improve the quality of services for end users

Be agile: Agile development, IDC says, enables organizations and keeps pace with more rapid change. Key success factors include getting down to the user level and documenting specific processes and pain, collaborating with customers and end users, and adapting quickly to changing circumstances.

Source:http://www.cio.com/article/2451671/it-strategy/simplifying-it-pays-off-with-big-savings-better-business-success.html

Wipro to increase headcount, expand business in Ireland

May 28th, 2014

Wipro is increasing its workforce in Ireland as part of its expanding business in the region. Over the next 12 months, the company will increase the headcount in the centre by up to 50 per cent, the company said.Outsourcing4

The company’s Shannon Development Centre in Ireland, started about a year-and-a-half ago, employs over 200 professionals, and is focussed on delivering services to banks and financial services companies across Ireland and the U.K. Wipro said that it had been seeing a ‘rising demand for services’, which has prompted the expansion.

Rajan Kohli, senior vice-president and head of banking and financial services, Wipro, said that Ireland offered a great talent pool and excellent infrastructure support. “We are seeing a lot of interest from banks in the region for services around business resilience, risk and compliance, simplification, digital, mobility and analytics. Our experience in working on similar engagements with various banks in the UK and other countries is helping us offer Irish banks the right strategy and execution capabilities in these areas,” he said.

Industry trend
Several Indian IT majors have in recent months spoken about a steady increase in business from continental Europe. For instance, Infosys also said, during its annual earnings, that businesses in continental Europe were now, post the downturn in the economy there, opening up to outsourcing to Indian companies.

An industry analyst confirmed that this trend had been getting stronger over the past two years, when several European companies across sectors had been opening up to the idea of outsourcing to Indian companies. “This is driven by the opportunity at hand to tighten budgets, given many of these economies are facing a downturn or recession. The outsourcing is happening across sectors, including non-financial sectors such as power and energy or engineering,” the analyst said.

Source:http://www.thehindu.com/business/Industry/wipro-to-increase-headcount-expand-business-in-ireland/article6054003.ece

10 handy tips on outsourcing apps for your business

January 30th, 2014

Whether you’re subscribing to web-based applications, on-demand services, or utility computing infrastructures, there are countless variations on the outsourcing theme – renting software instead of buying it. All offer ways of letting companies balance their internal and external IT investments to meet their business requirements – and software vendors are certainly pushing harder on the rental model (just look at Microsoft with Office 365, or Adobe and Creative Cloud).

As a technology or business manager, how can you cut through the hype to tell whether and where application outsourcing might be right for your organisation? And what caveats should you bear in mind? We’ve got some advice for you in the form of 10 handy tips.

1. Define your expectations

Outsourcing applications has real benefits if you map out your objectives clearly. View outsourcing as a business solution to augment your current operations and create efficiencies, not as a rip-and-replace technology. Translate your expectations into financial terms, then calculate the savings in reduced cost and complexity or better time to market.

2. Be realistic

Web-based apps may not have interfaces which are as smooth or customisation options as plentiful as those of desktop applications. Can you live with the level of support provided? Figure out your workflow requirements and move forward when you find an app that addresses them all.

3. Assess yourself

Quantify your baseline bandwidth, storage, and reliability requirements and usage. A hosted service can offset the costs of underutilised resources. Establishing that you’re rarely hitting peak usage levels will go a long way in determining whether you’ll achieve benefits from flexible hosted services.

4. Identify your strengths and weaknesses

Can you isolate the highest impact but lowest risk projects in your operation? This will help you determine which noncore lines of business are best suited for outsourcing.

5. Follow the money

Make sure that a subscription fee is cheaper than traditional software. Get your finance gurus to come up with valuation metrics and fiscal models that will quantify your current payment model compared to that of a hosted service. Also take into account your current infrastructure, maintenance, administration, and upgrade costs, and compare them against the cost of migration and subscription fees.

6. Do your due diligence

Just because you go the hosted route doesn’t necessarily mean that all vendors will have identical service delivery formats and infrastructure requirements. Consider a third-party audit, which should include security of transactions and data. Evaluate the vendor’s experience, technical expertise, and scalability options.

7. Plan migration paths

Have a path for data migration and integration with other systems from the start and a plan for termination. This will help avoid locking you into a single vendor.

8. Involve your legal team

Make sure a lawyer is on board to review the licensing issues and intellectual property rights. Legal representation will also be of value during contract negotiations.

9. Control your services

Assign yearly budgets and resources. Establish ongoing ROI and performance metrics to determine whether the service achieves efficiencies. Apply the same disciplines of management to your other internal resources as you do for your hosted services.

10. Maintain open communication

Keep everyone apprised of goals and listen to their concerns. This way, you will build trust and ease the cultural migration to hosted services. Bear in mind that your provider and its reps are now an integral part of your business, so treat them as members of your team.

Source:http://www.itproportal.com/2014/01/29/10-handy-tips-on-outsourcing-apps-for-your-business/

Nigeria: Etisalat Partners Huawei On Business Outsourcing to Boost Services

January 3rd, 2014

Etisalat has announced a strategic partnership with Huawei Technologies, a global Information and Communications Technology (ICT) solutions provider, for the provision of Information Technology (IT) services for its growing customers.

The partnership is designed to continually improve the Etisalat network for the purpose of providing the highest possible service quality to its subscribers.

Under the arrangement, Huawei will be responsible for the operational management of Etisalat Nigeria’s IT services across Technical Infrastructure, Application Management and User Support. However, the Business Planning, Architecture and Governance shall still be retained by Etisalat Nigeria.

Announcing the outsourcing partnership, Acting Chief Executive Officer of Etisalat Nigeria, Mr. Matthew Willsher, said the decision to outsource aspects of the company’s IT function followed the adoption of a new model which was effectively aligned with the corporate vision of creating more value for customers by improving quality, reducing costs, embedding innovation, and increasing the speed of delivery.

“At Etisalat, we are dedicated to providing innovative and best quality telecommunications services to our customers Outsourcing our IT services to Huawei is part of the fulfillment of our promise to continuously deliver excellent communication experiences to our customers at all times. The outsourcing arrangement will in no way lead to the lay-off of IT staff as is often feared under such circumstances,” Willsher said.

He added; “Our overall aim is to improve efficiencies, leverage capabilities and improve training and development for our employees. About 75 per cent of the current IT staff will be transferred to Huawei with comparable terms of employment and compensation, so that no one will be worse off,” Willsher explained.

Source:http://allafrica.com/stories/201401020562.html

Etisalat Partners Huawei on Business Outsourcing to Boost Services

January 2nd, 2014

Etisalat has announced a strategic partnership with Huawei Technologies, a global Information and Communications Technology (ICT) solutions provider, for the provision of Information Technology (IT) services for its growing customers.

The partnership is designed to continually improve the Etisalat network for the purpose of providing the highest possible service quality to its subscribers.

Under the arrangement, Huawei will be responsible for the operational management of Etisalat Nigeria’s IT services across Technical Infrastructure, Application Management and User Support. However, the Business Planning, Architecture and Governance shall still be retained by Etisalat Nigeria.

Announcing the outsourcing partnership, Acting Chief Executive Officer of Etisalat Nigeria, Mr. Matthew Willsher, said the decision to outsource aspects of the company’s IT function followed the adoption of a new model  which was effectively aligned with the corporate vision of creating more value for customers by improving quality, reducing costs, embedding innovation, and increasing the speed of delivery.

“At Etisalat, we are dedicated to providing innovative and best quality telecommunications services to our customers  Outsourcing our IT services to Huawei is  part of the fulfillment of our promise to continuously deliver excellent communication experiences to our customers at all times. The outsourcing arrangement will in no way lead to the lay-off of IT staff as is often feared under such circumstances,” Willsher said.

He added;  “Our overall aim is to improve efficiencies, leverage capabilities and improve training and development for our employees. About 75 per cent of the current IT staff will be transferred to Huawei with comparable terms of employment and compensation, so that no one will be worse off,” Willsher explained.

Source:http://www.thisdaylive.com/articles/etisalat-partners-huawei-on-business-outsourcing-to-boost-services/167788/

IT model steps up business change

September 3rd, 2013

The advent of the enterprise information technology architecture called “SMAC” – or social, mobility, analytics and cloud – is raising the stakes for the global business process management (BPM) industry; opening up insights, new revenue streams and greater service impact through innovation, according to a group.

“SMAC is unleashing innovation at a rapid pace. It is transcending the digital space and revolutionizing the IT-BPM value chain,” says Jose Mari Mercado, president and chief executive of the Information Technology and Business Process Association of the Philippines (IBPAP). “Access to credible, rich and compelling data and channels allows companies to compete better as well as manage risk. In many cases, it liberates organizations from incorrect assumptions that define their strategies or goals.”

Dubbed as a “stack”, SMAC components must operate as an integrated system of processing information to deliver innovation and value, the group added. It said that while social and mobility solutions are seen as effective drivers of productivity and engagement, business analytics and cloud-based applications are enabling decision-making at optimal costs.

“Demands are outpacing traditional capabilities across all industries. The pressure to adapt to rapid changes is very intense, and many are being left behind,” said Mercado. “By transforming the role of technologies from a basic support function to the core of business model, adopters are disrupting how services are envisioned and brought to market.”

Examining SMAC in multi-process human resources outsourcing (MPHRO), global advisory and research firm Everest Group reports that “buyers and service providers see SMAC as a way to extract new value from MPHRO engagements.”

In consumer health care, SMAC is fostering a higher level of engagement among patients and consumers, with models evolving from physical care in clinics or hospitals to virtual care, according to IBPAP. It said that as people learn more about their health and risk factors, they are being empowered to work toward desired health behaviors.

Global industry leaders will focus on SMAC during the 5th Annual International Outsourcing Summit, which will take place on October 6 to 8, 2013 in Makati City. The summit will also feature keynote presentations by industry and domain experts, panel discussions with industry executives, and business matching sessions, among others.

“SMAC is bridging the vast landscape that is IT-BPM. This is central to the theme of our summit, ‘Unlocking Possibilities, Creating New Vistas’,” Mercado said. “We hold fast to the view that our industry has played a crucial role in helping many adapt to the new business model that defines what it means to be truly global.”

Source:http://manilastandardtoday.com/2013/09/02/it-model-steps-up-business-change/

Protected by تهنئة
Get Adobe Flash player