Posts Tagged ‘ICT’

How and why billion dollar businesses make IT investments

August 28th, 2015

Kable Global ICT Intelligence: Companies choose IT providers based on expertise and price to support revenue growth.Outsourcing33

Analysis from Kable unveiled enterprises with over $1 billion in revenues are or will be looking into outsourcing IT functions with nearly 60% (57.9%) of participants saying they are already outsourcing applications, service desk support and help desk or planning to do so in the next two years.

Only 36.8% admitted they are not outsourcing or planning to do so within these areas, while 5.3% answered ‘no’ but said they are considering outsourcing.

As for IT infrastructure, 52.5% of respondents said they already are or may be outsourcing solutions in this space in the next two years, with 36.8% not doing so and 10.5% considering this route.

Similarly to IT infrastructure, 10.5% of those surveyed said they currently do not outsource IT management but are considering it.

Kable has found that the most important criteria for businesses when choosing an IT provider are industry expertise, price and specific functionality expertise.

The research took into account respondents from businesses with over $1 billion in revenues.

Those surveyed rated the three mentioned criteria with a score of 3.3, with the rating scale going up to four points meaning ‘very important’.

Leading-edge technology was voted fourth with a score of 3.2, followed by financial stability, breadth of solution offerings and geographical reach with 3.1, 3.0 and 2.9 respectively.

At the bottom of the league, companies put financing options like payment terms (2.8) and contract flexibility (2.7).

Kable’s research also revealed that the importance of various IT objectives in influencing IT investment strategies do not have a big disparity between them.

Using the same measurement technique from one to four points, businesses said that using IT to support revenue growth, with an average rating of 2.7, is their main objective influencer when investing in IT strategies.

This is followed by aligning IT with overall business goals and better demonstrating the value of IT to the business, both with a rating of 2.6.

Organisations taking part in the report rated the objective to deliver new functionality to business users with 2.5, while meeting internal service level agreements scored the lowest with 2.4.

All figures come from Kable’s ICT Customer Insight survey, which polled 2685 respondents, from across the world in Q4 2014. The survey findings include data on criteria when choosing an IT provider, importance of IT objectives in influencing IT investment strategies and IT functions that are outsourced now, or which may be outsourced in the next two years.


Council’s IT outsourcing plan hit by delay

August 28th, 2015

The implementation of a new outsourced information and communications technology (ICT) service for Scottish Borders Council – in a shared arrangement with Edinburgh City Council – has been delayed.Outsourcing32

A report on the future of the 80-strong in-house department at Newtown was due to be presented to councillors in October.

But a meeting of SBC’s executive heard this would be delayed until December following the announcement last month that Canadian IT giant CGI has won a seven-year contract to replace BT as the provider of ICT services to the city council.

“Once we have access to the proposals that CGI have put forward, the suitability and cost of individual services can be further examined,” said Rob Dickson, SBC’s corporate transformation director.

“This analysis and engagement phase will now run through September and October.

“It is now planned to finalise the full proposal on December 17.”


Demand for BPO highest in Davao City

August 21st, 2015

DAVAO City’s business process outsourcing (BPO) industry continues to expand and improve as Jones Lang LaSalle Leechiu (JLL), one of the country’s largest real estate advisory and consulting firm, cited the city’s demand for industry workers and locators has remained to be the highest in the country.Outsourcing29

“The country’s top BPO locators told us during the BPO forum on Tuesday that Davao, among all the cities in the Philippines, has absorbed the biggest number of the BPO demand in the country last year,” Lawyer Samuel Matunog, president of the Information and Communication Technology (ICT)-Davao, said at the sidelines of the ICT Chief Executive Officers’ Conference during the Livelihood Exchange (Livex) Philippines 2015 at the SMX Convention Center Wednesday.

Matunog said, even David Lee Chiu, country head of JLL praised the performance of the city.

BPO locators are individuals working on the promotion of cities like Davao for the locators to come and invest in the city.

Based on the IT and Business Process Association of the Philippines (Ibpap) data, an estimation of 33,000 total volume of BPO full time equivalent employees is recorded in Davao by 2014.

Matunog said measures on expanding and developing BPO employees are suggested by JLL. BPO developers are also told to follow the market before building so as not to experience unoccupied BPO spaces.

“We should not go ahead to much from the market, market should be there first and the key predictor of the market is talent development, if wala, then the market cannot grow,” he said.

ICT-Davao Inc. is banking on the results of the innovative reform on the Philippine basic education system on IT skills development aside from the various skills development training and initiatives the ICT industry is providing.

Among the top 100 BPO destination in the world are the cities of Manila, Cebu, Bacolod, Iloilo, Baguio, and Santa Rosa according to Tholons 2015 Report List.

JLL is a professional services and investment management firm providing management and real estate outsourcing services for a property portfolio of 3.4 billion square feet, or 316 million square meters, and completed $118 billion in sales, acquisitions and finance transactions in 2014.

Among the top 100 BPO destination in the world are the cities of Manila, Cebu, Bacolod, Iloilo, Baguio, and Santa Rosa according to Tholons 2015 Report List.


Mass opposition to outsourcing of SBC IT jobs

March 20th, 2015

More than 60 Scottish Borders Council IT staff joined union officials at a mass meeting this week to voice fierce opposition to plans to outsource 80 jobs.Outsourcing7

Employees in the information and communications technology (ICT) service at the local authority were briefed last week on the findings of a comprehensive review, including a proposal for a joint arrangement with City of Edinburgh Council that would see 80 council IT staff outsourced to a support company provider in October.

But at a packed meeting with Unite union officials in a Galashiels hotel on Monday night, there was unanimous anger and opposition over the proposals.

So serious does Unite consider the situation that its deputy regional secretary, Mary Alexander, travelled to Galashiels to address the IT workers.

And Tony Trench, Unite’s regional industrial officer, says another meeting will be held next week and there will also be a petition launched.

“And it’s not just IT staff at the council who should be worried about their jobs, IT staff at places like NHS Borders should also be concerned,” said Mr Trench.

“We disagree totally with plans to outsource any jobs and want to see the figures that have been used to justify this.”

Monday night’s meeting was also attended – as observers – by SBC Conservative councillors Michelle Ballantyne and Gavin Logan.

Conservative opposition group leader Mrs Ballantyne said the briefing given to elected members this week had left a lot of unanswered questions.

“We will be seeking answers and further information before we can consider what is the right decision for the future of ICT in the council,” she said.

“We certainly won’t be pushed blindly into agreeing to outsource the service and will need to be convinced by substantial evidence that this is the best solution.”

And in an email to all 34 councillors last week from one disgruntled IT staff member at SBC, elected members were urged to join the fight against the outsourcing of jobs.

“IT staff can earn more in the city, but we stay because we love our jobs, the quality of life the Borders has to offer, and we want to stay in the area,” stated the email.


Sri Lanka’s ICT, BPO SECTOR targets $1 B revenue in 2015

January 13th, 2015

The Information and Communications Technology (ICT) and the Business Process Outsourcing (BPO) sector in Sri Lanka is eyeing revenue of $1 billion by 2015 and $5 billion by 2020, and poised to become the country’s largest foreign exchange earner, a report in the government website showed.Outsourcing43

Quoting figures from the Institute of Business Process Outsourcing (IBPO), the report also said the sector generated more than $400 million export income in 2014.

Set up by the Youth Affairs and Skills Development Ministry in collaboration with the National Youth Corps (NYC), IBPO is the country’s first training institute for Business Process Outsourcing, which aims to attract as many youth to join the industry in the next two years.

It offers skills training in back office operations, customer care, finance and technical support in industries such as hotels, travel, telecom, BPO, call centres and financial services.

According to the IBPO, the industry forecast for revenue growth can be realised only if his industry can increase its BPO talent-pool annually by at least 15,000-20,000  for the next two three years.

“Looking at the prospects in the BPO sector, the Sri Lankan government is all set to provide an environment that is conducive for the growth of BPO industry,” it said in its website.

Meanwhile, the Sri Lankan Association of Software and Service Companies (SLASSCOM) is also committed to supporting the growth of the industry.

Last November, Sri Lanka won the National Outsourcing Association (NOA) Offshoring Destination of the Year Award 2014 in London, which SLASSCOM said validates that the country as a destination for outsourcing of information technology and Business Process Management.

Jayantha De Silva, Chairman of SLASSCOM, said in a news release that  winning theaward for two years in a row has put Sri Lanka on the map, especially in niche markets of Product Engineering and FAO.


The dark side of outsourcing

November 13th, 2014

Anyone who’s seen the film The Social Network knows the dangers of bringing in outside help to build your world-changing business idea.
The film is largely based on the claim by the Winklevoss twins that Mark Zuckerberg stole their idea for Facebook after they brought him in to help with coding the social networking site.Outsourcing27

While the claim’s veracity has been debated, the reality is that the issue is becoming an increasing problem in the startup and small business community as entrepreneurs turn to online outsourcing to access quality services at affordable rates.

World Economic Forum ICT specialist Elena Kvochko predicts that over the next four years, online outsourcing will grow by more than five times, becoming a $5 billion industry by 2018.

Many businesses enabling this growth by allowing businesses to outsource everything from software coding to logo design. With the outcome of improved efficiencies and large cost savings, it is no wonder this is a popular route.

However, all too often little attention is given to the legal precautions necessary to insulate the business from intellectual property dramas. Without proper legal agreements in place, questions of ownership and misuse can arise. While these outsourcing sites protect IP to a certain level, we recommend taking additional steps to protect yourself.

Once you form an entity, the company doesn’t own the IP until it is assigned to the company. Without the proper assignment of IP, large risks begin to emerge.
Some outsourcing nightmares include:

1.    Claim for future profits

When outsourcing the design and development of a website app for example, it is efficient and effective to hire someone offshore. Often entering such agreements can lead to lucrative results with the product being valued at millions of dollars. However without the proper assignment of intellectual property, the developer might have a claim for future profits because they developed the code for the app. Not a very profitable outcome.

2.    Reducing your competitive advantage

The last thing you want to do when outsourcing is pay a developer to design your application and then find out the developer is re-using the application over and over again with other businesses, perhaps even your largest competitor. Without an assignment of IP, the developer has a right to do this, and consequently your own idea could potentially hurt your competitive advantage in the marketplace.

3.    Downstream risks – turning off potential investors

Finally, following the development of a brilliant idea and product, there comes a time when you will want to raise capital or investors will look to invest in the business. The first thing the investor will ask is if you own the intellectual property. An investor will not advance an idea that a business doesn’t have the legal right to.

So before joining forces with an outsourcer it is important to protect yourself from the potential legal rabbit hole. There are four easy steps to follow:

Step 1 – Check terms of service
You must always check the outsourcing terms of service or terms of use to check that the contractor is bound by confidentiality and assigns all intellectual property over to you or preferably your business, right from the moment you engage their services. A number of outsourcing platforms have default contractor agreements that offer more protection however sometimes it is not enough.

Step 2 – Assign intellectual property

The most important issue to address is assignment of IP. It is important that any work created or completed by the contractor is assigned to you. Under Australian law, Intellectual Property is only legally assigned by a written and signed document. Section 196(3) of the Copyright Act 1968 (Cth) requires there to be a signature on the written assignment document. Therefore, an email exchange or simple “standard form” contract wouldn’t be of any use unless the document is signed. It is often the case that transactions conducted through third party providers do not have a written and signed agreement to assign the IP.

Step 3 – Understand who is the creator of the work

Make sure the person assigning the intellectual property is the person that created it. Occasionally the party who is purporting to assign the copyright doesn’t actually own it in the first place. This can occur when clients use marketing agencies, which often sub-contract work to freelancers. If a freelance illustrator has been engaged by a marketing agency to develop designs for a new brand, then it may be that the illustrator owns the copyright in the designs and not the agency. A written assignment signed on behalf of the marketing agency will not be effective to transfer the copyright.

Step 4 – Keep in mind weak enforcement rules

Acknowledge that disputes over intellectual property are almost impossible to enforce when the contracted party is based overseas. There is a trade-off between cheaper outsourced labour and the legal protection afforded when you employ someone in the same legal jurisdiction. There are no legal agreements that will offer complete protection across two jurisdictions (countries) however you will be protected locally ensuring they can not start a competitive local clone.

While online platforms have streamlined the process of outsourcing and do protect IP to a certain degree, there are a few additional steps to make sure your business is properly protected. LawPath, an online legal business can provide simple forms that will protect your business form outsourcing nightmares.

As online job marketplaces grow, there is an opportunity to build more flexible and efficient businesses. Just make sure you’ve got solid legal protections in place so you don’t wind up with a billion-dollar missed opportunity like the Winklevoss twins.


700 Internet cafés to be utilized as BPO service centers

October 31st, 2014

The 700 internet cafés in the city are eyed to be utilized as service centers for job recruitment of business processing outsourcing (BPO) .Outsourcing57

So far, only 400 of them could be harnessed for this activity, said lawyer Samuel Matunog, president of the Information and Communications Technology – Davao Industry Development (ICT-DID), He said the 400 cafes are the ones still active.

“We are thinking that maybe we can qualify these internet cafés to farm out jobs for the unemployed especially those from rural and urban poor communities that we usually thought of them as not part of ICT community,” he said.

He said the internet cafés will be transformed as service delivery centers and as a work space for the workers.

“After the conversion of internet cafés into service centers there will be training for the owners of the cafés for them to be able to handle BPO services and also to train their clients after,” Matunog said.

He said he was glad that the city’s Information and Communications Technology Office (ICTO) spearheaded this project and already trained and developed service centers where unemployed sectors are tapped to be part of the ICT industry.

This will help maximize the operators of internet cafés to generate jobs for the communities near them, he said.

Part of the training that Matunog mentioned is content-handling for the government’s database.

Industry leaders are looking forward to jobs which could be done outside City Hall to the internet cafés or barangay halls.

“These are simple tasks but someone could earn with minimum wage,” he added.

There are problems expected to arise though, during the preliminary implementation of the impact-sourcing in the city. Matunog said that most of the workers are not familiar with the tasks that they are doing, “therefore there must be more trainings to be done.”

He admitted that the challenge is the training part.

“It will take longer time [for the training] given that the targets are from the unemployed and retired sectors from urban poor up including Indigenous People in the rural areas who are under-educated people in terms of knowledge in ICT.”

Matunog’s group is looking forward in generating 600 trained workers from unemployed sectors.

He said that the local government, through the city’s Information and Communications Technology Office (ICTO), is already giving its support by spearheading in the training provided for the target sector.

This project is part of the 6th SummIT which was held in the city last October 24 wherein part of the discussion is the utilization of impact-sourcing outside Metro Manila “as a tool for economic development of the least-developed communities and to connect them to the global economy”.

According to Monchito Ibrahim, deputy executive director on eBusiness of Department of Science and Techonology – Information and Communications Technology Office (DOST-ICTO), impact-sourcing could be defined into two models:

“First is people doing BPO jobs at home and second is partnership between the large BPO companies and small-local BPO companies for them to re-outsource some of the projects that the larger companies are doing,”.

“Instead of the big companies investing in the regions, the work will be given to the small business present in the region,” Monchito said.

He added that it would definitely have a “big impact in the region” especially that, according to him, “Davao is one of the biggest players in the information technology and business process management (IT-BPM) sector.”

The said conference was attended by about a hundred ICT experts from Association of Southeast Asian Nations (Asean), ICT practitioners, academe, and students under the ICT programs.


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