Stefanini IT Solutions , a global provider of IT consulting, integration and development, and outsourcing services, has posted the next installment of their Outsourcing Podcast Series – Nearshore Outsourcing – How to Reduce Costs and Increase Productivity.

Renato Mendonça, service delivery manager for Stefanini IT Solutions, discusses the difference between nearshore outsourcing and offshore outsourcing and how nearshore outsourcing can benefit companies by reducing costs and increasing productivity. Additionally, Renato takes a look at and discusses reports on the benefits and viability of nearshore outsourcing.

Source:http://www.prlog.org/10524310-stefanini-it-solutions-podcast-discusses-nearshore-outsourcing.html

Financial-services giant TIAA-CREF said it plans to relocate some processing functions overseas in a move that could affect some positions at its Denver offices, where it employs about 1,400.

The firm is “entering a partnership with a company in India that specializes in a wide range of IT services and outsourcing,” said a company statement Friday. “Our goal over the next few years is to transition certain non-client-facing processing activities offshore.”

The company’s goal “is to effect this transition through normal attrition,” the statement added.

KUSA-Channel 9 reported Saturday that the move could affect about 70 Denver jobs.

Spokeswoman Jennifer Compton said Friday that TIAA-CREF has a “strong” commitment to its Denver office, one of its largest, and that no layoffs are currently planned here.

New York-based TIAA-CREF (Teachers Insurance and Annuity Association – College Retirement Equities Fund) was founded in 1918. Today it mostly serves employees in higher education and nonprofits. It has $400 billion in assets.

Source:http://denver.bizjournals.com/denver/stories/2010/01/25/daily87.html

Over the past five years, the IT outsourcing and offshoring industry has grown significantly and it is expected to grow even further in the coming years.

As a result, the landscape of the outsourcing and offshoring industry has changed, rapidly expanding from IT to other sectors including banking, human resources and even pharmaceuticals.

It has grown geographically – once heavily connected with India, outsourcing has now become a global phenomenon with countries in Africa, the Middle East and Latin America all emerging as outsourcing hot-spots.

With so much change happening, ITIDA brought together thought-leaders from some of the world’s biggest organisations including McKinsey, NASSCOM, Credit Suisse and IBM, at a workshop on Global ICT Services Sourcing Post-Crisis in Sharm el-Sheikh.

Topics discussed included current trends and the prospects that lie ahead in the international sourcing of ICT services. We also talked about how industry stakeholders have reacted to the economic crisis and how the industry is being re-shaped.

Cost-competitiveness remains a big attraction for western companies looking to outsource and this was evident from the presentations given by some of the industry’s leading bodies, but increasingly, talent is becoming a key factor in investors’ decision-making process.

We firmly believe that for emerging markets looking to establish themselves as a global destination, talent must be nurtured through training, education and government support.

It is the human capital element that is increasingly being recognised by both investors and service-providers alike as being the back-bone of successful outsourcing.

A recent report by India’s NASSCOM highlighted that between 2004 and 2008, the global IT sourcing market grew to $US93 billion, and the addressable market is likely to increase from US$500 billion in 2008 to a staggering US$1.5 trillion by 2020.

This is no surprise, as investors and service providers are increasingly recognising the benefits associated with outsourcing.

Low operational costs, good infrastructure and skilled workforces are some of the factors attracting investors to the O&O industry.

Alongside the booming growth of the industry, the overall landscape is being shaped by the needs of investors.

Three significant trends that emerged from our workshop as affecting the landscape are multi-servicing, multi-shoring and competency-sourcing:

• Multi-servicing: No longer is the O&O industry being dominated by IT services – it is expanding vertically, tapping into other sectors such as healthcare, business, finance and travel. Also different countries are increasing their services offering, thereby influencing an investor’s decision of where to locate.

• Multi-shoring: The number of countries emerging as O&O destinations is growing, providing an expanding range of services. This is especially true for developing countries, which are recognizing the positive attributes associated with outsourcing and what it can do for their overall economic, social and educational development.

• Competency-sourcing: This is perhaps the biggest change to the O&O landscape. Investors are recognizing the diversity of skills and competencies across the globe and there is a move towards capturing the benefits of such localised talent.

Similar to multi-servicing, different countries are becoming synonymous with certain skills which are proving increasingly attractive for investors. Examples of such localized skills include administration, research and analytics, financial planning and IT support.

With the O&O industry growing, investors are naturally looking more closely at the skills base being offered by locations and what other benefits they have available. Talent is wielding a significant influence on investors’ decisions along with government support, cost-competitiveness and infrastructure.

In order for any country to succeed, particularly in the area of talent, it must have strong government support. A good education system, supported by government training initiatives, is one of the main ways countries are nurturing talent.

It is through providing dedicated training programs, encouraging further education in the IT and outsourcing industry and encouraging local and multinational companies to invest in skills that countries can truly become global players in the O&O market.

However, government support should not end there. Gaining support at one level in the O&O industry often means that other areas will be included. Indeed, the role of the government is proving vital in supporting the development of the O&O industry. Benefits of such backing include the development of software technology parks, tax exemptions and venture capital support. Government support does not stop at tangible benefits – it is becoming widely regarded that a nationally branded outsourcing operation goes a long way in attracting investors.

Here in Egypt, we receive great support from the government to develop and expand our ICT sector. Investment in training, education and the overall industry means we are able to grow our industry extensively.

Several recent industry reports have declared the Middle East and North Africa region as an emerging area of excellence in the O&O industry, with Egypt firmly leading the way. It offers a large, multi-skilled, multi-lingual talent pool, strongly supported by the government through the Ministry of Communications and Information Technology (MCIT) and, of course, the Information Technology Industry Development Agency (ITIDA).

Egypt’s talent pool is becoming widely recognised within the O&O industry for its diversity, language capability and readiness.

Egypt delivers a large number of graduates annually, with a strong command of foreign languages and high employability skills, making them highly sought after by investors. Such talent is fostered by government support which drives innovation, research and development, human capital development and IT specific talent programs, not to mention direct university curriculum interventions.

ITIDA’s support also infiltrates into the wider IT O&O industry, promoting investments, supporting research and development and helping increase exports. Such government support has resulted in excellent IT infrastructure, including the development of Smart Village and wide cable connectivity.

What makes Egypt stand out even more in the O&O industry is the fact that not only does it possess a great talent pool and benefit from exceptional governmental support, but it also offers low operational costs, great accessibility and a convenient time zone with key trading markets.

It is these factors, that I believe, positions Egypt as a prime site of investment in the IT O&O industry and one which will receive much interest over the coming years.

The landscape of the O&O industry is changing, as investors seek to optimize the different skills and competencies on offer across the globe.

The combination of talent and government support is proving to be most important within this and is likely to dictate the decisions of investors. Egypt’s embodiment of this powerful combination, together with other attractive features, positions it as a leader in the O&O industry, and is certainly one to watch.

Source:http://www.bi-me.com/main.php?id=43762&t=1&c=35&cg=4&mset=1011

Digital Imaging LAhas launched an online version of its Photoshop Clipping Path & Masking service. The service is specifically aimed at small to medium photographers, imaging professionals and advertising agencies who want to remove backgrounds from their photos for an advert they have due, a retail catalogue or even for online retailers. Previously, services like this were only available to large corporations & publishers however, you can now access the same service at the same competitive prices without the requirement of large volumes. Wouldn””t you think twice if you had the chance to swap 12hrs of processing clipping paths to receive 200 images within 4hrs for as little as $0.56 per image? You could, in fact, focus on improving your business or the rest of the creative work in your office with the time you and your staff will save.

Digital Imaging LAplans to launch more exciting services in the very near future. Visit Digital Imaging LA to view its Photoshop Clipping Path Service, and its flat rate Photoshop Masking Service.

Some of the features that stand out from other service providers:
• A flat rate per image
• No waiting for quotes as you rate the complexity
• Live tracking for all your jobs
• Complete simple online solution with no waiting
• A friendly 24hr chat and client support

Clients do have to set up an account to start using the service. Once logged in, Users can tell the difference between Digital Imaging LA and other service providers. There is a ””Live Tracking”” facility to update users on the status of their jobs in real time, so they never lose control of their images. Also Digital Imaging LA works on credits, similar to most stock image sites, where beginners can opt for starter bundles and high volume customers can purchase the value packs. Bundles start at $15 and there is a bundle for everyone”’’s requirement.

Users only need a computer connected to the internet and they are 2 minutes away from working smarter and efficiently, utilising Digital Imaging LAas their image processing partner. Overall, the application is unbelievably easy and quick, but for first time users, it might help to play around with the system for a few minutes. The best part of Digital Imaging LAis their customer service, users can click on ””Live Chat”” anytime to talk to a customer service representative or even pick up the phone and call them if they need a job processed right away.

Source:http://www.njbiz.com/view_release.asp?aID=12071

Industry watchers predict an increase in offshore IT outsourcing in the new year. But 2010 is hardly expected to be a banner year for offshoring-better than 2009 but far from historic growth levels.

The headlines in offshore outsourcing in 2010 may focus less on the quantity of work organizations are sending overseas and more on where they’re sending it. Leading companies will begin developing networks of offshore locations for outsourcing: They’ll supplement contracts with vendors in more developed locales like India and the Philippines with new relationships in emerging markets in Latin America, Asia and Africa. Of course, “risk averse buyers will not venture too far afield in 2010,” says Stan Lepeak, managing director of global research for EquaTerra.

Here are six offshore locations liable to loom large in IT services in 2010.

[ Offshore Outsourcing: Pay Attention to Foreign Exchange Rates or Pay the Price ]

China. Analysts and industry watchers have nattered for years about the nascent but promising IT services industry in the world’s most populous nation. But issues including lack of English language skills, business immaturity, IP protection concerns, and lack of managerial talent has prevented China from moving ahead as a destination for offshoring in a major way. In 2010, China is likely to garner attention mostly as a near-shore outsourcing center. “Where China can demonstrate its language advantage, it will be the destination of choice for organizations in Japan and other Asian countries,” says EquaTerra’s Shanghai-based consultant Vibhash Ranjan.

[ 14 Emerging Offshore Outsourcing Markets You Can't Afford to Miss ]

“One of the key factors that will determine whether the growth can continue into the future is if the government encourages structural change in state-owned enterprises (SOEs),” says Melany Williams, partner and managing director of IT service provider consultancy TPI Momentum. “A tipping point will be when the Chinese government encourages the outsourcing of selected functions of the SOEs to local and foreign service providers.” That, says Williams, will be a key indicator that China is entering a new level of outsourcing maturity.

India.India’s dominance as an offshore outsourcing destination will continue, notes EquaTerra’s LePeak. But that may present disadvantages for the Indian providers and their customers. Outsourcing consultancy Everest predicts the country’s IT services providers will experience a growth revival that, late next year, could lead to spikes in wage inflation and attrition. To balance those trends, Everest says that vendors will continue to move work to tier two cities, such as Pune and Chennai.

[ The 25 Most Dangerous Cities for Offshore Outsourcing ]

In 2009, several Indian vendors went on shopping sprees and will now attempt to sell existing IT services to clients of the companies they’ve acquired. But that will require fundamental changes in their business models-most notably the need to do more local or onshore hiring, which could impact their bottom lines, notes Everest in recent research.

Source : http://www.computerworld.com/s/article/9142606/Six_Offshore_Outsourcing_Hot_Spots_for_2010

The shortage of information and communications technology skills in developed countries could become a serious issue once the worldwide economic crisis starts easing.

This will be exacerbated by the falling number of masters and PhD holders in science and engineering, restrictions on cross-border movement of IT professionals and the US H-1B visa programme.

However, this vicious circle could be mitigated by the Indian service firms increasingly recruiting internationally, according to a new OECD report on employment trends in the ICT sector.

The report notes that Indian tech firms like TCS [ Get Quote ], Wipro [ Get Quote ] and Infosys [ Get Quote ] have seen slower recruitment since the first quarter of 2008. However, the pent-up demand in the European economies and the US will ensure that good workers are available for the taking when these companies are looking to further expand their international operations.

“Concerns have been raised whether increased offshore activities could lead to a shortage of ICT skills in the OECD countries in the long term,” the report said, adding that such a shortage could reinforce the need for further offshoring as ICT skills shortage is known to be a driver for offshore outsourcing.

The report said that while no additional largescale layoffs have been announced by the top 10 IT services firms, employment levels will stay at almost the present levels until 2009-end.

IT services firms like IBM and Cap Gemini have announced slower hiring for 2009. So have Indian IT giants like Tata Consultancy Services and Infosys, which despite the crisis, still expect to grow in single digits in the third quarter of 2009-10.

The economic crisis has put IT service costs under pressure, but this may benefit outsourcing due to the increased internal cost-cutting and perceived benefits from more flexible external sourcing of IT and business process services.

The recent quarterly data on the outsourcing markets indicate that despite the number of outsourcing transactions still on the rise, revenue growth through IT and BPO will probably decline in 2009, due to the falling total contract values, the OECD report said.

However, the Asia-Pacific region has been performing well with TCV in the first half of 2009 increasing over 150 per cent over the first half of 2008.

The report suggested that higher TCVs in the APAC region could explain the optimism of the Indian tech service firms who have been changing their product-product mix to adapt to the changing market demands.

“Recruitments have already started to slow in the beginning of 2008 when new hiring by leading Indian service providers dropped 22 per cent in the first quarter of 2008 and by almost 50 per cent in the second quarter compared to the same period one year earlier.

These lower recruitment rates are also reflected in the decreasing number of new offshore centres opened by IT services firms,” the report added.

Source:http://business.rediff.com/report/2009/nov/30/tech-firms-can-mitigate-it-skills-shortage.htm

IT services in India mainly focus on software development, Information Technology Consultancy, Web design and development, Offshore Outsourcing, Business process outsourcing, Knowledge process outsourcing, Enterprise Resource Planning Development and Implementation, Multimedia and custom software applications.

Expansion in global business has lead to a volume increase in the services requirement. Marketing challenges of the export houses need effective inventory management with quality. Software development companies in India possess expertise in the development of inventory based application and ERP solutions to implement the same for cost reduction, quality increase and profitability.

Retail Industry today needs support in retaining customers and also in ensuring customers to repeat their business by staying competitive. Indian Software development companies have proven expertise and experience in development of transaction based web application and e-commerce sites and client server applications.
Source:http://www.pr-presse.de/news/custom-product-development-company-web-application-development/34751