Posts Tagged ‘Computer’

Why Security Is Becoming a Big Piece of the IT Outsourcing Market

August 24th, 2015

Businesses know they need to stick with the things they’re really good at, which may be why security is one of the rising areas of IT outsourcing.Outsourcing30

The latest report from market research firm Computer Economics showed that nearly 8 percent of technology budgets in large enterprises are being directed to IT outsourcing firms. While a lot of the work providers are doing involves managing cloud and software-as-a-service (SaaS) products, security was singled out among the competencies where corporations believe working with a third-party vendor will benefit their ability to serve customers.

This may be just good common sense. Obviously, there is more time and talent that can be devoted to supporting products and services when in-house staff aren’t busy trying to identify and fend off the latest cyberattack.

SC Magazine noted that other drivers for IT outsourcing include a desire to be more flexible as an organization, to do new things or to reduce spending in certain areas. Of course, most organizations cannot afford not to invest in security, but the report suggested they are constantly evaluating their options as business and market conditions — which includes security risks — change.

In fact, The Data Center Journal pointed out that 92 percent of companies find the costs of handing over things like disaster recovery are often the same as doing the same work themselves. The objective, however, is to make sure business isn’t disrupted and customers aren’t negatively impacted in the event of a distributed denial-of-service (DDoS) attack, network outage or other security breach. The Computer Economics research suggested that companies are showing more confidence in this area of IT outsourcing because the providers of such services have established a strong track record over the last few years.

Beyond pure IT outsourcing, managed security services are also expected to grow considerably over the next five years. IFSEC Global reported that cloud-based security services in particular would eventually account for a larger share of the overall market than those who provide the same services on a customer’s own premises. Either way, it looks as though the increasing challenge of keeping up with security threats and mitigating the worst risks is leading more organizations to conclude they just can’t do it alone.


Tax benefits for IT sector likely to be extended

May 26th, 2015

The government is likely to extend the tax exemption benefits for software development and information technology-enabled services (ITES) by another five years to encourage investment, said a senior official of the finance ministry.Outsourcing3

The tax waiver on income from software and ITES may be extended to 2024 from June 30, 2019 now — in line with the government’s Digital Bangladesh vision.

The proposal is likely to be made when Finance Minister AMA Muhith places the budget for fiscal 2015-16 in parliament, officials said.

The move comes after three IT related organisations — Bangladesh Association of Software and Information Services, Bangladesh Computer Council, and Internet Service Providers Association of Bangladesh — jointly demanded extension of the tax break benefits till 2024 for the sake of the sector’s growth.

The organisations said it is imperative to increase the tax exemption period for software and ITES to ensure continued expansion and development of the IT sector and to help the government achieve the Digital Bangladesh vision by 2021.

The incentive will attract investment from foreign investors, according to the joint proposal from the three organisations to the National Board of Revenue.

ITES, also called web-enabled services or remote services, covers the entire gamut of operations which exploit IT for improving efficiency of an organisation.

The services encompass call centres, medical transcription, medical billing and coding, back office operations, revenue claims processing, legal databases, content development, payrolls, logistics management, GIS (Geographical Information System), and human resources and web services, among others.

The IT services industry, which employs more than 20,000 people, holds great potential. The sector serves both domestic and international clients from Europe, North America and East Asia.

The freelancing community has further supplemented IT exports, raking in close to $7 million in 2010, for instance.

Bangladesh appears consistently in top freelance work locations on sites like oDesk, eLance and the likes, said a study by KPMG in 2012. It said Bangladesh’s IT sector holds growth prospects owing to the international companies’ hunt for low-cost outsourcing destinations.

The country offers a vast pool of young, trained and English speaking resources — available at costs almost 40 percent lower than in established destinations like India and the Philippines.

The study said, with wages and operating costs rising in traditional outsourcing destinations like India and the Philippines, Bangladesh’s prospects are rising.

The country offers attractive business opportunities for multinationals interested in outsourcing or offshoring, the KPMG study added.


Steady Rise in IT Operational Spending Expected for 2015

November 20th, 2014

In 2015, most IT shops across industries can expect a boost for their IT operational budgets, and those gains will be made in additional staff, cloud computing, and enterprise apps including business intelligence, according to a new study released by Computer Economics, a research and advisory organization that provides metrics for IT management.Outsourcing6

The 2015 IT outlook is mostly positive, according to Computer Economics, which based the study, “IT Spending and Staffing Outlook for 2015,” on a survey of 128 IT organizations worldwide, including 68 IT organizations in North America. The annual study assesses IT spending plans, priorities for IT spending and investment, and plans for hiring, outsourcing, and use of contractors and part-time workers as well as pay raises for IT workers.

While the expected increase in IT operational spending may seem lackluster compared to historical trends, it is steadily rising, and should increase 3 percent at the median in the United States and Canada. This compares to a 2.7 percent in 2014.

“Our annual outlook survey indicates organizations are willing to invest in transformational technologies and are more concerned about improving service levels than reducing costs,” John Longwell, VP of research for Computer Economics, said in a prepared statement.

According to the study, organizations expect to increase their IT staff headcount—a trend that carries over from last year. In last year’s study, Computer Economics reported that nearly half of all IT organizations in North America planned to increase the size of the IT workforce, with 49 percent of IT organizations anticipated getting the green light to augment staff headcount in 2014.

This year, in the 2015 study, Computer Economics found that more than half of IT organizations will increase IT staff headcount. In addition, a growing number of survey respondents indicated that they will transition from the use of contractors to hiring more full-time, regular employees. Also, the typical IT worker will receive a 3 percent pay raise, the 2015 study found.

Despite the gains in IT staff, and continuing investments in cloud computing, mobility, enterprise applications, security, and business intelligence—from which organizations will be able to derive transformational value, according to Computer Economics—not everything was upbeat. The study found that IT capital budgets will remain flat, and that capital spending on data center and network infrastructure will remain weak. IT executives will need to grapple with finding resources to maintain existing infrastructure, and that will be an ongoing challenge for many years ahead, according to the firm.

More specific findings on the insurance industry are available in Computer Economics’ comprehensive study, “IT Spending and Staffing Benchmarks – 2014/2015,” a more in-depth study that provides composite statistics of IT spending and staffing data, a segmentation of the same statistics by organization size, and benchmarks for 23 sectors and subsectors. According to this report, insurance organizations are information-intensive businesses that use IT technology for nearly every aspect of their business. Most of the employees use computers in their daily work, and insurance companies spend more per user on IT than any other subsector in the study, according to Computer Economics.


IT Operational Spending to Grow Modestly

November 18th, 2014

IT operational spending in the U.S. and Canada will increase 3% at the median next year amid “improving and sustainable — if not stellar” economic growth, but capital budgets will remain flat, according to a survey by Computer Economics.Outsourcing41

1024px-BalticServers_data_centerThe IT research firm said in its IT Spending and Staff Outlook for 2015 that the growth rate in operational spending, while somewhat modest by historical standards, continues the gradual, steady improvement since 2011, and it will primarily benefit cloud computing providers and job seekers.

The study found that more than half of IT organizations will increase staff next year, with a shift from the use of contractors to the hiring of more full-time, regular employees.

“The outlook for 2015 is mostly positive,” the study concludes. “There are innovations in mobility, business intelligence, and cloud computing that are enabling businesses to derive transformational value from their IT investments.”

However, “at the same time, IT spending faces real constraints in the slow-growth environment, and IT executives will need to grapple with finding resources to maintain existing infrastructure while investing in transformational technology,” it added. “That will be an ongoing challenge for many years ahead.”

Computer Economics polled 68 organizations in North America about their spending plans for 2015; priorities for IT spending and investment; and plans for hiring, outsourcing and use of contractors and part-time workers.

As far as IT capital budgets, the survey predicts little or no growth at the median as organizations continue to invest in enterprise applications, security and business intelligence, but spending on data centers and network infrastructure remains weak.

The IT outlook is “not entirely bullish,” Computer Economics said, but the survey results suggest that business leaders recognize the value in IT. “Organizations are willing to invest in transformational technologies and are more concerned about improving service levels than reducing costs,” John Longwell, the firm’s vice president of research, said in a news release.


IT outsourcing frees up valuable resources, expert says

October 2nd, 2010

Businesses should be embracing IT outsourcing to free up resources, not merely to reduce costs, it has been claimed.

Writing for, Adam Hartung commented that the overall objective when delegating functions to an external support provider is to make the business perform better.

“What most of them need is more room to experiment, try new technologies, try new applications, try new solutions, seek out new customer market opportunities and find ways to grow the business,” he suggested.

Mr Hartung said outsourcers can help achieve these goals, also noting that they can help complete end-of-life projects cheaply and quickly.

Firms should also be wary about spending on legacy systems as they plan to outsource IT, he noted.

Anthony Hayes, head of IT supplier management at the Royal Mail, recently told Computer Weekly that it is inevitable more businesses will choose to embrace IT outsourcing in future.


Increased IT outsourcing ‘is inevitable’

September 23rd, 2010

An increase in IT outsourcing is inevitable over the next few years, it has been suggested.

In an article for Computer Weekly, Kathleen Hall noted many leading IT decision-makers believe businesses will continue to move computing functions over to support and managed services providers.

The journalist observed Anthony Hayes, head of IT supplier management at Royal Mail, thinks departments should keep their IT strategy in-house, while outsourcing their day-to-day operations.

Mr Hayes said both parties need to maintain accountability and explained the practice demands a different mindset and style of working.

He added: “The biggest difference is now we have a bunch of people assuring the delivery of the service, as opposed to delivering everything themselves.”

Chief information officer at Severn Trent Myron Hryck acknowledged there is currently a significant amount of IT outsourcing taking place in the computing world.

Ben Birmingham, managing consultant at Quantum Plus, recently claimed support and managed services is becoming increasingly popular among small and medium-sized enterprises.


Hacking is getting increasingly sophisticated, says Norton

September 23rd, 2010

Hackers have moved on from simple scams to sophisticated espionage campaigns, it has been claimed.

According to IT security software provider Norton, some of the world’s largest corporations and government entities are now targets.

Con Mallon, security expert at Norton, said that in order to protect their IT systems, businesses must ensure that all employees are knowledgeable of the risks that surround them online.

He said: “Cybercriminals have increasingly turned their attention towards enterprises due to the potential for monetary gain from compromised corporate information.”

“Attackers have been leveraging the abundance of personal information, openly available on social networking sites, to synthesise socially engineered attacks on key individuals within targeted companies.”

The comments may encourage more companies to seek external PC support services through an IT outsourcing provider.

But all companies, irrespective of their IT setup, have been urged to take as many defensive precautions as possible.

“Ensuring all passwords are strong and difficult to break, avoiding the sharing of key information and clicking on unknown links, are key principles that must be engrained into employees,


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