Posts Tagged ‘IT’

Wipro wins Rs 900 crore Irish contract

January 26th, 2015

Wipro has won a $150-million (Rs 900-crore) IT outsourcing deal from the Allied Irish Banks (AIB), one of the big four commercial banks in Ireland. India’s third largest IT services company will provide infrastructure management services (IMS), data centre and hosting services to AIB over five years.Outsourcing55

“We will bring our expertise to build agile and adaptive infrastructure while improving the predictability and cost effectiveness of services,” said Rajan Kohli, senior vice-president and global head (banking and financial services) in Wipro.

The deal is Wipro’s biggest win in Ireland and provides a gateway to participate in other IT deals including the Bank of Ireland contract that’s coming up for renewal later this year.


IT Outsourcing Company in Dubai Announced Promotional Rates

January 26th, 2015

IT-Serve, a Dubai based leading managed IT services and support provider in the United Arab Emirates (UAE) offer a range of managed IT services including Annual IT Support Contacts and IT Outsourcing Services. The services are already some of the most competitively priced in the market, but now enjoy a 50% discount until the end of March 2015.Outsourcing55

Ali Liaquat, Marketing Manager, said, “We are seeing a shift in the market away from the traditional in-house IT support model to IT outsourcing model. Businesses realize that the mantra of zero downtime is only possible with enterprise class IT services including quality hardware support and technical management. IT-Serve’s IT outsourcing services are designed from the ground up for SMEs and Enterprises, and therefore have significant advantages over other One-size-fits-all IT outsourcing services.”

“If you don’t have a dedicated IT person, IT outsourcing service is the perfect substitute. Rather than paying the salary and benefits for another employee, you could pay a reduced amount for IT outsourcing services. A technology professional with five years of experience may be worth AED 80,000+ a year. That AED 80,000 salary only gets you one person, not a team of professionals with expertise and knowledge. When you hire your own IT staff, there are also challenges scheduling around vacation, training, and illness. Using IT outsourcing services provides full time IT coverage and vacations, illness, and other absences don’t affect your support,” said, Nikhar Juneja, Head of SME Engineering.


Wage settlement for private outsourcing firm employees

January 23rd, 2015

Labour department officials held talks with the employees of C Cubed Solutions, a company that provides call centre, BPO, healthcare billing and IT outsourcing services, and the management representatives here on Thursday and arrived at an agreement on payment to the employees as the company was stopping operations here.Outsourcing53

An employee who did not want to be identified said that C Cubed was present in India for the last 15 years and started Coimbatore operations four years ago. It employed 283 people and most of them were engineers. On January 19, employees who reported to work at 6 p.m. were told that the Coimbatore operations were being stopped, the employee claimed.

On Tuesday, a couple of representatives of the company told the employees that the pending salary payment would be made in two terms. The employees met the District Revenue Officer on Wednesday and labour department officials on Thursday here.

According to Joint Labour Commissioner P. Marimuthu the employees would get 25 per cent of the pending salary on Thursday and a post dated cheque for the remaining on January 27. The company would also give experience certificates to the employees.

At another IT firm located at Singanallur here, there were reports that the company was downsizing the employee strength. However, an official of the company said that it was “downsizing to a minimal level”. The total strength of about 350 plus will come down by hardly ten per cent and “We have followed the due process of retrenchment.” The company started operations here seven years ago.

An industry source told The Hindu that with technology development, the dynamics were changing for service companies. The companies here should be able to live up to the expectations of customers. If some of the overseas customers shut shop, companies here would bring down the employee strength. Downsizing is neither a trend nor a problem in the industry. About 7,000 new jobs would be created by the IT and IT Enabled Services sector here in the next one year. “We are on the growth path.”

Mr. Marimuthu said such instances are a new dimension of industrial disputes here. These are new to Coimbatore as the management teams of these firms are not headquartered here.


IT outsourcing: When it’s necessary and when it’s not

January 23rd, 2015

With Britain still managing a weaker economy than its traditionally used to outsourcing has become a necessity to keep businesses afloat and to stay competitive. Often outsourcing teams or projects proves to be an effective method to get high-quality work done without the need to go through the hassle of finding permanent staff, but is outsourcing always effective? I spoke to Rick Simmonds, managing partner of Aecus, all about outsourcing; when you should and when you shouldn’t, questions to ask ensure your business is right for outsourcing, and why outsourcing has become a trend in IT.Outsourcing52

Why do you think the IT sector in particular was seen an increase in outsourcing? What is the reason for the trend, would you say it’s due to new technologies, a change in working philosophy or a combination of both?

There are a number of reasons why ITO (IT outsourcing) continues to grow, some to do with the market and some to do with technology.

The first is the market. ITO is now a mature field, with many second and third generation deals and a wide range of large, sophisticated suppliers keen to grow their businesses. This means that there is something of a ratchet effect – relatively few deals are terminated and brought back in-house, most are renewed with the incumbent or re-let to another supplier.

Although deal scopes flex, with some functions moving in or out, on the whole this means that there is a solid platform of existing deals, with new first generation deals and expanded scope on existing deals providing constant growth. The rate of renewals also indicates that most clients are at least reasonably satisfied with outsourcing as a delivery model – although some might argue that deals are renewed because clients no longer have the skills and experience internally to take work back in-house.

The second is access to skills. For example, most ITO deals have a substantial offshore component. It is hard for most client organisations to compete with specialist outsourcers in building sustainable, scaleable, high-quality offshore operations. Only the very largest organisations are likely to be able to invest enough and have the scale to offer attractive careers to IT professionals, compared to the major outsourcers. So as the amount of work delivered from offshore increases, so does outsourcing.

The third and final reason is technology and access to skills – the rate of technology change continues to increase. It is arguably easier to access new technologies like digitalisation and robotics through leveraging the investment of outsourcers. And, of course, the cloud and the trend to “as a Service” is a big driver of using outsourced resources which are delivered in a cost-effective way not available in-house.

In terms of “working philosophy”, the big change over the last 10 years is that outsourcing has become an accepted norm. It used to be a more controversial and esoteric business model, whereas now it is firmly mainstream and part of the popular lexicon.

Obviously you have a great belief in outsourcing, could you run us through some of the “sticking points” or aversions businesses have toward outsourcing and explain why businesses tend to have said “sticking points”?

Actually at Aecus we’re absolutely agnostic about outsourcing! It is a commercial model for delivering results, and in some circumstances it is the right model, in some circumstances it isn’t. But to answer the question, these are some of the key concerns that businesses have.

An important consideration is the loss of control of the service. Businesses fear that if employees no longer deliver the service, they won’t be able to get what they want, when they want it. In other cases, businesses fear that the decision will be irreversible, that they will no longer have the skills or capability to take back the service at the end of the contract.

Cost is also an issue. Many businesses worry that once they are in a commercial relationship with a sophisticated outsourcer they will be “out-gunned” and end up over-paying.

Some businesses are concerned about being disloyal and unfair to their staff and want to protect them and their jobs. Similarly, a key sticking point can be the fear of bad publicity. This is typically linked to job losses or moving work offshore as a result of outsourcing.

The first three concerns (loss of control, fear that it’s irreversible and cost) can typically be addressed by contracting in the right way. Regarding the people and PR issues, these can be managed in various ways – many deals include staff transfers or re-training provisions.

On that same tack: Is an outsourced IT department a good option for any business? For example businesses that already have highly skilled staff, or that have a strong company culture that may be affected by part of the team being outsourced?

The question of whether to outsource is always very particular to the specific business and circumstances. The question to answer is ‘what is the business case?’ (in a broad sense, including capability, sustainability, risk and financials) for outsourcing versus retaining an in-house option. Outsourcers have no “secret sauce” – it is generally at least theoretically possible for an in-house function to deliver anything that an outsourcer can. The question is always “will they deliver in practice and which option is more likely to succeed?”

Highly skilled staff and a strong company culture may well be reasons why it would be hard to make a business case in favour of outsourcing. Each case should be assessed on its merits.

A study from Leiberman found that in 62 per cent of cases outsourcing cost more than originally planned, what are three strategies that businesses can implement to avoid this? And for what reasons does this happen?

Cost overruns will happen for a number of common reasons. For example, poor initial planning and analysis often means that initial costs were underestimated and drivers of future costs insufficiently understood. Similarly, poor or (often) over-complex charging mechanisms in the contract can mean it is difficult for a client to understand and control charges. Another factor can be a lack of active client management of the arrangement, which leads to loss of control.

The strategies to avoid this include spending sufficient time upfront producing a detailed cost model of current and future services, and modelling in-house and outsourced scenarios. This will help businesses know how they will compare in different circumstances.

Businesses should also negotiate a clear, robust contract with strong change control and clear charging mechanisms, and model scenarios so that they know how charges will change in different circumstances.

It also helps to assign a dedicated contract manager or management team, with the skills, experience and remit to manage the supplier. If businesses leave this all to the supplier, they are asking for trouble!

Lastly, what are there any situations when businesses should definitely outsource a team?

There are NO examples where you should definitely outsource a team! However, examples where businesses should seriously consider whether outsourcing might be the best option for them would include where in-house teams have continuously failed to deliver what the business expects, and remediation efforts have failed.

Outsourcing might also be used in functions where businesses are struggling to attract and retain and motivate high quality staff, for example, the maintenance of old technologies. It is also appropriate when the outsourcing market has specific, leverage-able assets or capabilities which provide cost or efficiency advantages which the business cannot replicate in-house, such as cloud-based services or offshore resources.

Equally, outsourcing can be beneficial when a major investment is needed in order to make a change. That investment can be funded by the outsourcer and/or shared with other clients. Finally, in some organisations, there is simply a philosophy to focus only on their core functions and to outsource everything else.


Predictions for Top IT Trends in 2015

January 22nd, 2015

Cloud is in the mainstream – there will be lesser debate on things like “on premise vs cloud” & “cloud security” but more on industry specific applications to solve specific needs & user friendly experience using advanced cloud orchestration.Outsourcing51

Anywhere Anytime Workplaces (A2W) – Mobile applications & systems for anytime anywhere secure accessibility will no longer be a delighter but a must be.
Personation & Customization using more data – Organizations will continue to use the power of data engineering with various Big Data sources & using Data Science tools for better business decisions & insights.

Consolidation & Optimization of the Physical & Digital World – Outsourcing will gain momentum as companies start looking at consumption models which give them more flexibility and scalability to ramp up or optimize based on the actual business needs. Total outsourcing of Document based Processes especially for large enterprises will gain momentum. “Software defined Systems” will the key to the success of this integration of Physical & Digital world.

Internet of things (IoT) – The need to build an integrated and safer planet will give a lot of boost to the development of systems which can talk to each other. The sectors which will benefit the most from this would Infrastructure management including Safe City projects, Near Combat Defense Systems, Manufacturing Process Control, Energy, Medical & Healthcare systems, Transport etc.

Faster & Secure Networks – Customers will expect IT companies to design business processes, IT systems & Consumption Models which can provide industry specific solutions which can be used 24/7. Networks have to become burstable & instantaneous, highly available and secure to take the cloud to the next level.

Next wave of Government to Citizen Programs – With Financial inclusion & Direct Benefit Transfer initiatives catching up, Aadhaar based processes will get a big boost by using the power of Information technology. Government may also open up to flexible and scalable consumption models like Cloud apart from continuing its focus on PPP & other transaction based business models for harnessing the power of IT for citizen welfare.

Government to improve network connectivity – Government is expected to support the role out of special projects for taking automation & welfare schemes to the rural masses by building the super highways right up to the panchayat level.

Make in India – Will get a big boost with a lot of MNC’s setting plants in India.

– By Manoj Kumar, Executive Vice President and CEO, Ricoh India Ltd.


Indian Public Cloud Services Market To Be $838 Mn In 2015: Gartner

January 21st, 2015

Public cloud services revenue in India will reach $838 million by the end of 2015, an increase of almost 33 percent over 2014, information technology research and advisory firm Gartner said here Monday.Outsourcing50

“Public cloud services revenue in India will reach $838 million by the end of 2015, an increase of almost 33 percent, or $206 million over 2014 revenue of $632 million,” the statement said.

In 2015, public cloud services revenue is driven by high rates of growth in key market segments, cloud infrastructure as a service (IaaS), cloud management and security services and cloud application infrastructure platform as a service (PaaS), it added.

Spending on IaaS will total $104.8 million in 2015, an increase of 38 percent over last year. Spending on cloud management/security and PaaS will both grow 35.4 percent to $56.7 and $84.6 million respectively during the same period.

Gartner predicts high rates of spending on cloud services in India to continue through 2018 when the market is expected to reach $1.9 billion.

“Organizations in India seeking IT outsourcing services are increasingly turning to public cloud services as an alternative to traditional ITO offerings,” said Ed Anderson, research vice president at Gartner.

According to Gartner’s latest cloud adoption survey, 53 percent of organizations in India indicate they are using cloud services now, with another 43 percent indicating plans to begin using cloud services in the next 12 months.


Tax break compromise may hurt BPO industry’s provincial push

January 20th, 2015

The country’s business process outsourcing (BPO) association said a proposed change in tax incentives will make it tougher for the industry to expand outside Metro Manila and major urban areas.Outsourcing49

The finance and trade departments this month said they broke a more than 15-year impasse on income tax holidays, an exemption from income tax for up to eight years meant to attract investors.

The departments, which are concerned with tax collection and with attracting investment respectively, said they will propose to Congress that the incentive be scrapped from the Board of Investments’ list of perks in exchange for a 15 percent income tax — lower than the regular rate of 30 percent — for 15 years.

They also said the Philippine Economic Zone Authority, where most BPOs get their incentives, can continue to give income tax holidays but only up to 4 years. The PEZA currently gives up to 6 years for BPOs in less developed areas. This has helped the fast-growing industry expand even after tapping out potential recruits in more developed areas.

“The change will make us less competitive,” Jomari Mercado, president of the IT and Business Processing Association of the Philippines (IBPAP), said in a phone interview. “When you have a country like Malaysia getting more and more aggressive, and with ASEAN integration, that adds to the risk. Our incentive program will pale in comparison.”

Mercado said 30 percent of BPO operations are now in less developed areas. But he says there’s a benefit to ending the debate.

“In the worst-case scenario, I would rather the rules are clear,” he said.

Mercado said IBPAP will press a partnership with the Commission on Higher Education (CHED) and state colleges and universities to make up in human resources what the industry will lose in tax breaks.

He said the first 600 participants in a CHED program tailored for BPOs are now in the 4-month internships that end the 2-year program.

He said under the program, college students sign up for an additional 21 units, including a 6-unit, 600-hour internship, meant to improve communication, critical thinking and other skills.

Mercado said the program now has 3,000 students in 12 colleges and universities, and the target is 20,000 students in 17 institutions.


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