Posts Tagged ‘Outsource’

San Diego’s Plan To Outsource IT Support Services Jobs Moves Forward

March 11th, 2010

A plan to outsource San Diego’s information technology support services to a private company based in Los Angeles County was advanced today by a committee to the full City Council, but there was little support for the idea championed by Mayor Jerry Sanders as a way to save money.

The Rules, Open Government and Intergovernmental Relations Committee voted 3-1 to forward the proposed contract with Gardena-based En Pointe to take over computer help desk and desktop support services from the city-controlled San Diego Data Processing Corp.

The panel declined to endorse the contract, but agreed to move it on to the City Council so that it can be further vetted.

Council President Ben Hueso cast the dissenting vote, who argued against outsourcing city jobs. He said the work should go to Data Processing Corp. and the city should look for efficiencies within the nonprofit, quasi-city agency to save money.

“It’s just really sad we are here,” Hueso said. “I would have preferred we would have followed a different process to come to efficiencies. I don’t support doing this.”

Council members Todd Gloria and Donna Frye also had reservations.

Data Processing Corp. has managed San Diego’s information technology services for the past three decades. The agency employs more than 250 people, about 26 of whom would lose their jobs if the computer help desk contract goes to En Pointe.

En Pointe was selected by the mayor’s office over eight other companies, including Data Processing Corp., for the contract.

At a news conference last month, Sanders said the city would save money and get better service from En Pointe.

Under the terms of the proposed contract, the city would pay En Pointe about $1.2 million annually, compared to the $2.7 million the city will pay Data Processing Corp. for the same services this year.

Data Processing Corp. is charged with maintaining thousands of city desktop computers, laptops and telephones, providing technical support and operating San Diego’s Web and database needs. The agency’s overall budget is about $42 million.

Sanders has indicated that he plans to seek bids from private companies over the coming months to potentially take over all of the services provided by Data Processing Corp.

During today’s hearing, more than a dozen Data Processing Corp. staffers urged the City Council to reject the contract.

“All of these individuals and their families will be financially impacted one way or the other,” Linda Berns, a Data Processing Corp. employee, told the committee. “I urge you to really think about your vote today and the domino effect it will have on the people, the families and friends and San

Diego.”

The possible outsourcing of the Data Processing Corp. is seen as a bellwether for San Diego’s voter-approved managed competition program, which allows private companies to compete for work now performed by city employees.

Because Data Processing Corp. is a separate entity from the city, it is not technically covered under the managed competition program, but it is the first municipal entity in San Diego that the mayor’s office has sought to outsource.

Managed competition was approved by voters in 2006, but has not yet been realized due to disagreements between the mayor’s office and the city’s labor unions over how it should be implemented. A majority on the council are also viewed as union friendly and unlikely to support privatizing city services.

Source:http://www.kpbs.org/news/2010/mar/10/san-diegos-plan-outsource-it-support-services-jobs/

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Professional Web Design Services, Outsource Web Design Company India

March 10th, 2010

Website Programming Development is a leading effective web design company in India. We are offering creative, attractive and professional web design services at cost effective rates to global clients. As a dedicated web design solutions provider, we deliver superior quality and cost effective web design work to our clients by following customized processes to deliver on-time and quality outputs. Outsource web designing work to us NOW and save up to 40% to 60% of cost by outsourcing your web design projects!!!

Website Programming Development – A leading Web Design Company provides its customers an extensive range of offshore web designing services. We are specialized in design a website’s that work. Our web design company is a complete solution so you can focus on every day business. Guaranteed high quality with outstanding accuracy in website design services is our specialty. Our professional and expert web designer have years of experience in web designing field and give you the top quality solution for your website.

Source:http://www.skynewswire.com/modules/news/article.php?storyid=13507

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Software development company – Outsource software development Services

February 26th, 2010

Website Programming Development is a fast growing software development company catering clients in US, UK, CANADA and Australia. As a dedicated software development solutions provider, we deliver superior quality and cost effective software development work to our clients by following customized processes to deliver on-time and quality outputs. You can save up to 40% to 60% of software development cost by outsource your all software development work to us.

Website Programming Development is an India based software development outsourcing company that focuses on highly qualitative, timely delivered and cost-effective offshore software development services. We are in the business since last 17 successful years catering customers of diverse business verticals in all over world. We provide a wide range of software development services in India that suits your budget and needs. Guaranteed high quality with outstanding accuracy in software development services is our specialty.

Outsource Software Development Work Such as:

• JAVA Development
• VB.NET Development
• CRM Development
• DBMS Development
• Custom Software application development

Outsourcing software development is here to stay as an IT trend which has evolved, grown, matured and is living up to and outgrowing its potential. We have professional software developer and programmer team. Our highly qualified professionals and software developers understand your needs and give the professional outsourcing software development solution according to your specific requirements. Our committed professionals aim to provide our customers with software development solutions par excellence.

Source:http://www.bignews.biz/?id=845285&keys=software-development-services-outsource

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ITV out-sources IT back-end to accenture

February 23rd, 2010

Accenture has been awarded a five-year contact to provide ITV with core IT service management, infrastructure and application management services.

The consulting, technology and outsourcing company will help the broadcaster to change its business so that it is better focussed on the ‘digital home’.

Richard Cross, group technology director at ITV, said: “Working with Accenture will provide us with the flexibility we need as our business changes. Their deep experience in web TV, over-the-top services and the digital supply chain will help us as we look to transform our business.”

ITV plans to transition its desktop services, help desk, and data centre management to Accenture later this year.

Financial terms were not disclosed.

Analysts suggest that an outsourcing deal of this nature could save ITV at least 10% of its variable cost base.

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Boeing prepares to cut nearly 800 IT workers

February 22nd, 2010

He Boeing Co. late last week issued 1,000 layoff notices to employees, many of them working in IT.

The company sent 60-day layoff notices to the workers, who are at risk of being laid off on April 23. Of those notices, about 800 went to employees of Boeing’s Engineering, Operations & Technology unit; most of the people in that unit are in IT, according to Tim Healy, a company spokesman.

The company employs 158,500 people, including 18,000 in its engineering and technology group.

Healy said that between now and the layoff date, retirements and other forms of attrition could eliminate the need for some of the cuts, “although it’s impossible to predict how often that could happen or how many employees will actually leave the company,” he said.

This layoff plan is a continuation of efforts by Boeing to cut 10,000 jobs.

Boeing outsources some of its software development in India, but it was unclear whether that played a role in last week’s announcement. Boeing has outsourced work to a number of Indian IT vendors in recent years.

Last March, Boeing announced the opening of the Boeing Research & Technology-India Center in Bengaluru, India. The company said this is its third advanced research center outside the U.S.

Boeing late last month said that its revenue for 2009 hit a record $68.3 billion, up from $60.9 billion in 2008, on higher commercial deliveries and growth in defense, space and security areas.

Source:http://www.computerworld.com/s/article/9159798/Boeing_prepares_to_cut_nearly_800_IT_workers?taxonomyId=72

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Nasa to outsource space journeys

February 2nd, 2010

Getting to space is about to be outsourced.

The Obama administration on Monday will propose in its new budget spending billions of dollars to encourage private companies to build, launch and operate spacecraft for Nasa and others. Uncle Sam would buy its astronauts a ride into space just like hopping in a taxi.

Obama’s budget also ends work on the shuttle follow-on vehicle, known as Orion, as well as a pair of rockets developed to fly astronauts to the space station, the moon and other destinations in the solar system. The president wants to end Nasa’s moon program, officials said on Monday.

The idea of outsourcing space travel is that getting astronauts into orbit is getting to be so old hat that someone other than the government can do it. It’s no longer really the Right Stuff. Going private would free the space agency to do other things, such as explore beyond Earth’s orbit, do more research and study the Earth with better satellites. And it would spur a new generation of private companies — even some with internet roots — to innovate.

But there’s some concern about that — from former Nasa officials worried about safety and from congressional leaders worried about lost jobs. Some believe space is still a tough, dangerous enterprise not to be left to private companies out for a buck.

Proponents of private space, an idea that has been kicking around for nearly 20 years, point to the airline industry in its infancy. Initially the US army flew most planes. But private companies eventually started building and operating aircraft, especially when they got a guaranteed customer in the US government to deliver air mail.

That’s what Nasa would be: a guaranteed customer to ferry astronauts to the International Space Station through 2020. It would be similar to the few years that Nasa paid Russia to fly astronauts on its Soyuz after the Columbia accident in 2003.

“With a $6 billion program you can have multiple winners. You’ll literally have your Blackberry, your iPhone and your Android phone all competing for customers in the marketplace”, said John Gedmark, executive director of the Commercial Spaceflight Federation. The White House has said it will be adding $5.9 billion to the overall Nasa budget over five years; Gedmark believes most or all will go to commercial space.

Mike Gold, corporate counsel at Bigelow Aerospace, which is building the first commercial space station and is a potential spacecraft provider, believes the government should have privatized launchings decades ago. “It will force the aerospace world to become competitive again and restore us to our glory days”, he said.

Last year as part of the stimulus package, Nasa said it would give out $50 million in seed and planning money for the idea of a commercial spaceship. Several firms expressed interest and Nasa will soon pick a winner or winners.

But the Aerospace Safety Advisory Panel, created after Nasa’s first fatal accident, warned that the existing private rockets are not rated by the government as safe for people to fly on. That has to be addressed with testing before jumping into commercial space, the panel said.

Source:http://timesofindia.indiatimes.com/world/us/Obama-effect-Nasa-to-outsource-space-journeys/articleshow/5525666.cms

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UTStarcom Announces Plan to Outsource Manufacturing Operations

January 27th, 2010

UTStarcom, Inc. (Nasdaq: UTSI) today announced that it has selected San Jose-based Sanmina-SCI Corporation (Nasdaq: SANM) as its new outsourced electronics manufacturing service provider (EMS), a move that aligns with UTStarcom’s announced restructuring initiatives and expands the company’s cost savings efforts.

Under the terms of the agreement, Sanmina-SCI will provide full electronics manufacturing services for UTStarcom’s system products currently being built in UTStarcom’s Hangzhou facility. These services include new product introduction (NPI) support, material sourcing and procurement, printed circuit board assembly, system integration and testing, final pack-out and delivery. Increasing UTStarcom’s ability to manage demand swings, the flexible cost structure of this outsourcing agreement matches UTStarcom’s volume of orders and allows for a faster cash flow cycle and lower working capital usage.

“As we referenced in our June and November 2009 public conference calls, UTStarcom is taking steps to change its operational approach,” said Zheng Min, UTStarcom’s vice president of global supply chain. “This new relationship with Sanmina-SCI will allow UTStarcom to continue delivering quality products while taking advantage of improved manufacturing efficiencies.”
Outsourcing UTStarcom’s manufacturing capabilities not only improves the company’s asset utilization, but it broadens the supply chain for increased velocity and coverage.

“We are very pleased that UTStarcom has selected Sanmina-SCI as their electronics manufacturing services provider. We look forward to utilizing our vertically integrated suite of services including NPI, material procurement, manufacturing, system integration, and direct order fulfillment to bring value to our relationship. This strategic relationship allows us to grow in the networking market in the East China region,” said PK Chan, executive vice president of Sanmina-SCI Greater China Operations.

Source:http://www.prnewswire.com/news-releases/utstarcom-announces-plan-to-outsource-manufacturing-operations-82779802.html

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Texas radio search engine Radiotime to outsource software development to RP

January 27th, 2010

A Philippine investment in Texas-based radio search engine Radiotime, currently world’s leader in Internet-based radio search, is tapping Filipino software developers for its web application expansion.

Radiotime.com, an investee company of Philippine-based venture capital ICCP Ventures, is taking advantage of its partnership with ICCP through its outsourcing of software needs to Filipinos.

“We’ve built a lot of software. We’ve done some of these works in the Philippines, and we’re looking forward to do more software here,” said Radiotime Chief Executive Officer Bill Moore in an interview at an Ayala Foundation Innovation Forum.

An entirely entrepreneurial effort eight years ago, Radiotime has become 20 times much larger than its next competitor in the radio search engine business. Among its competitors are BBC and CBS radio. Its revenue comes from the sale of devices, software or hardware as part of the radio listenership service, and from advertising. It enables search of around 60,000 radio stations globally including those in the Philippines. Its market is mainly from North America, and then South America, followed by Asia.

ICCP which has investments in 40 companies put in $1 million into Radio Time for a 30 percent interest some four years ago, according to ICCP Group President William M. Valtos Jr.

“We saw very little technology risk in it. OEM (original equipment manufacturers) clients signified that Radiotime was ahead of its competition. Radiotime is in the best position to be the leader in radio media space,” said Valtos.

Radiotime has actually started acquisition talks with some big radio online businesses such as the US’ CBS. It has signed a contract with Nokia so that Nokia mobile phone users can listen to any radio station they like through Radiotime.

One does not have to be a subscriber to avail of Radiotime’s accelerated search service, but a regular listening service would require one to pay $50 per device. This device may be a software that an iPhone user can download or a physical device that one can plug in if he is using for instance a tabletop radio.

The company is growing at 10 percent per month, and its sales come from licensing agreements with certain companies. On the device, Radiotime has partnerships with companies like Philips or electronic parts manufacturers.

The site enables listeners to connect to radio through devices like TV, mobile phones, portable media players, PC and web-based applications. In order to ensure accurate station listings, it has partnerships with Sonos, Logitech Squeezebox, Cisco Home Audio, and Windows Media Center
ICCP has been able to invest in Radiotime as one of its board of directors has links with companies in Silicon Valley. It also has investments in Silicon Valley-based Marvell Technology which develops and markets integrated circuits, in Level Up!, Ionics Inc., Shopwise, and SiRT Technology which is led by its advisor, Dado Banatao, who is a co-founder of technology startups like S3 and Chips and Technologies.

Source:http://www.mb.com.ph/articles/240529/texas-radio-search-engine-radiotime-outsource-software-development-rp

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Bharti and BSNL to outsource fibre network management

January 27th, 2010

India’s Bharti Airtel has reportedly called on interested parties to submit bids for the outsourcing of the management of its fibre-optic cable network with a view to completing a deal before the end of March 2010, the Economic Times reports. The announcement follows similar indications in August 2009 that the telco was looking to outsource the management and maintenance of its fibre infrastructure, which as at January 2010 stretches for more than 100,000km. Commenting on the options for moving the process forward, Bharti’s CEO Manoj Kohli said: ‘We will form a joint venture and have a stake in the company to which we award this contract.’ The deal is estimated to be worth as much as USD1 billion over a five-year period. Having inked a deal with Alcatel-Lucent in April 2009 for the management of its landline and broadband business, the French-US vendor is the favourite to bag the contract, although Ericsson and Nokia Siemens Networks have also been mooted as possible winners.

Meanwhile, state-owned telco Bharat Sanchar Nigam Ltd (BSNL), which owns and operates India’s largest domestic fibre network, is also preparing to invite bids in February to outsource the management of its network; the telco expects to close a deal by the end of the second half of this fiscal year.

Source:http://www.telegeography.com/cu/article.php?article_id=31824&email=html

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White House Decides to Outsource NASA Work

January 25th, 2010

The White House has decided to begin funding private companies to carry NASA astronauts into space, but the proposal faces major political and budget hurdles, according to people familiar with the matter.

The controversial proposal, expected to be included in the Obama administration’s next budget, would open a new chapter in the U.S. space program. The goal is to set up a multiyear, multi-billion-dollar initiative allowing private firms, including some start-ups, to compete to build and operate spacecraft capable of ferrying U.S. astronauts into orbit—and eventually deeper into the solar system.

Congress is likely to challenge the concept’s safety and may balk at shifting dollars from existing National Aeronautics and Space Administration programs already hurting for funding to the new initiative. The White House’s ultimate commitment to the initiative is murky, according to these people, because the budget isn’t expected to outline a clear, long-term funding plan.

The White House’s NASA budget also envisions stepped-up support for climate-monitoring and environmental projects, along with enhanced international cooperation across both manned and unmanned programs.

Press officials for NASA and the White House have declined to comment. Industry and government officials have talked about the direction of the next NASA budget, but declined to be identified.

The idea of outsourcing a portion of NASA’s manned space program to the private sector gained momentum after recommendations from a presidential panel appointed last year. The panel, chaired by former Lockheed Martin Corp. Chairman Norman Augustine, argued that allowing companies to build and launch their own rockets and spacecraft to carry American astronauts into orbit would save money and also free up NASA to focus on more ambitious, longer-term goals.

However, many in NASA’s old guard oppose the plan. Charles Precourt, a former chief of NASA’s astronaut corps who is now a senior executive at aerospace and defense firm Alliant Techsystems Inc., said that farming out large portions of the manned space program to private firms would be a “really radical” and an “extremely high risk” path. Unless the overall budget goes up, he said, whatever new direction NASA pursues “isn’t going to be viable.”

Such arguments already are raging around NASA’s Ares I rocket, which could be replaced or scaled back if the commercial option gains traction. Some Ares I contract work could be shifted toward providing the basic elements of a future larger, more-powerful NASA family of rockets. Alliant and other Ares proponents have argued the program is several years behind schedule primarily because Congress and previous administrations failed to provide promised funding. According to some of these analyses, Congress in the past five years earmarked a total of about $4 billion less than initially projected for NASA’s manned exploration programs. The design of the Ares I also changed and became more complex since its inception.

Ares critics, on the other hand, counter that instead of costing about $4.3 billion as originally planned, the Ares booster is likely to cost more than three times that much. The program already has spent roughly $4 billion, and these critics say that exceeds original funding profiles for the Ares I by hundreds of millions of dollars. Moreover, they say that year-by-year expenditures actually exceeded the original timetable. NASA’s last budget projected spending another $9.5 billion through 2015.

Space Exploration Technologies Corp., founded by Internet entrepreneur Elon Musk, is one of the start-up commercial ventures likely to gain from the proposed policy shift. But other large incumbent NASA contractors such as Lockheed Martin and Boeing Co. also are likely to compete for some of the anticipated government seed money earmarked for new commercial ventures.

The White House’s budget is bound to spark a battle with Congress because NASA would have to kill off big chunks of its existing manned exploration program in order to finance some of these new initiatives in the coming years. The budget package, slated to be released in early February, is expected to stop short of proposing major cancellations. But it also isn’t likely to specify how all the different programs can be adequately funded in the future.

Under the White House proposal, the agency’s top-line budget is expected to stay close to the $18.7 billion in the current fiscal year. Only a small portion—roughly $200 million—is likely to be slated for the initial phase of opening up NASA’s manned space exploration program to private firms. However, that initiative is expected to cost a least $3.5 billion—and potentially much more—over the next five years.

Rep. Gabrielle Giffords, an Arizona Democrat who heads a key subcommittee, has blasted the notion of shifting money to outsource transporting astronauts to the international space station. Unless Congress makes the NASA budget a higher priority, Rep. Giffords said during a hearing last month, there won’t be enough money for robust manned exploration efforts of any kind and U.S. human space flight could be “on hold for the foreseeable future.”

Source:http://online.wsj.com/article/SB10001424052748704375604575023530543103488.html?mod=googlenews_wsj

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Bill Gates Should Outsource Some Services to Malumfashi

January 19th, 2010

Someone should invite Microsoft founder Bill Gates to Malumfashi, in Katsina State. Though he has tons and tons of money, I still think the Bill and Melinda Gates Foundation could do with some out-sourcing to cut costs, and the current executives of Malumfashi Local Government are just the right people to give them that.

By outsourcing some of its services, the Foundation would be helping some of Africa’s poor. The service I am referring to is male circumcision. In a nutshell, Gates’ Foundation is budgeting US 50,000,000 dollars to circumcise 650,000 Africans, and media reports indicate that Malumfashi LGA could do that for a pittance. Or, for much less than US$43,000!!

But first a brief background. Research findings show significant correlation between male circumcision and lower incidence of HIV in a population. Though disputed by some, most global health actors are convinced. Consequently, The World Health Organization (WHO), US Centres for Disease Control (CDC), among a host of others, recommended voluntary circumcision as part of HIV prevention programs, in addition to other prevention strategies, namely using condoms and becoming educated as to what causes HIV and how it is spread. In 2008, focusing on Kenya, the Gates’ Foundation donated US$18.5 million to establish the Male Circumcision Consortium (MCC), a partnership with the University of Illinois at Chicago (UIC) and EngenderHealth, an international NGO. The CDC’s National HIV Prevention Conference held last August in Atlanta even discussed whether to recommend routine circumcision for all baby boys to protect them from the disease. Some felt the evidence was not sufficiently compelling to justify such a drastic change in the USA, thus the meeting was split in its recommendations. Globally however, the groundswell of opinion supported some sort of universal circumcision policy.

Donor funding from USAID, WHO, the Gates’ Foundation and others, is now flowing into Africa, which helps to explain the Malumfashi circumcision drive. Last week, the Abuja-based People’s Daily, the Lagos Punch, and a host of other papers carried identical write-ups, obviously from the wire services, to the effect that 400,000 children are to be circumcised free of charge in Malumfashi Local Government Area. I was thoroughly confused and had to check again. Yes, the headline shouted 400,000 children. But wait a minute; the total population of that LGA is less than 185,000 people, both male and female. So what is happening? Reading the details, I noticed a more likely figure of 40,000 children. The two papers had identical figures, so the mistake could be from the original press release, copied and sent out by the news agency without anyone bothering to even read it. Yet even 40,000 seems ridiculous because the total male population is under 95,000, so, unless all the children born in the last 15 years (about 40,000) were never circumcised ( a very unlikely scenario for a predominantly Muslim population) I fail to see where they could round up such a large number. It is not at all surprising that the figures don’t make sense, when we think about it. Voodoo statistics abound in this country, and every director-general, permanent secretary or minister seems eager to throw fake data and statistics at us, without any explanation on how they come about it, so perhaps we should not blame Chairman Dan-Yari, or his Primary Health Care Coordinator.

All the foregoing is just an aside. My main point is that the Gates’ Foundation and other actors could outsource circumcision to Malumfashi, since they can do it cheaper. Since they are spending N400, 000 to cover 40,000 people, their cost is N10 per person, as against the Gates’ Foundation’s N11,770. So, if the target of 650,000 Africans is contracted to Malumfashi LGA, they can send out their experts and finish the job in 3-4 months at less than US$5 million at most, leaving them with an operating surplus of over US$45 million, or N6.885 billion. How about that for internally generated revenue drive?

On a more serious note, must external donor-agencies dictate our development agenda? Has Malumfashi abandoned circumcision that they need to resort to government funds to circumcise their boys? Maybe they have solved all other pressing health issues like child mortality, maternal mortality and malaria and now want to use free money pay to for this one. Was the project even properly scoped?

Kpakol’s back-of-the-envelop calculations

Yet even the Malumfashi case fades to insignificance after listening to our job creation expert. When Magnus Kpakol, Senior Special Adviser to the Nigerian President and Coordinator of the National Poverty Eradication Programme, said neither the illness of President Yar’adua, nor constant power outage, nor even the low performance of the economy, affect his war against poverty, and that poverty has declined in the country, I thought he was just plain confused. In his talk with Daily Trust about a week ago, he was adamant that “The poverty rate has dropped because for example if you look at the economy, and look at what happens in say agriculture, you will realise that there is growth in the sector last year and that growth in output means something happened there. If you look across board, you will see that the overall GDP growth rate in the economy grew by about 6.9%.All of that growth took place in the non-oil sector where you have people getting jobs.”

Is this guy failing to understand and refusing to even listen, cocooned in his comfortable fiction? Even the World Bank, the IMF and others not known to be usually worried about the fate of the poor before now, have pointed out time and time again, that Nigeria’s development model does not lead to growth of jobs or to a reduction in poverty, and are advising us to change our approach. Why is he adamant in his preferred fiction? Listen to him again:”If between 1999 and 2004, that is 5 years the poverty rate dropped 16 points, it is not unreasonable to think that in another 5 years, the poverty rate couldn’t have dropped more than 4 points. As an economist, doing the back of envelop calculations, I know at the back of my mind that unless we change the yardstick that we use in measurement, the poverty rate will be under 50%.” No, Kpakol, there is no reason under the sun for us to believe that just because poverty rate has declined over some past period, then it must continue this decline in future. In addition, non-governmental estimates put last year’s growth rate at 2.9% and not the 6.9% you prefer to cite.

Anyway, we shall await the National Bureau of Statistics’ report that Kpakol promises, which is expected to come up this year, and then we can examine his claims. Hope it is not another example of the usual voodoo stats, on a higher plane than the much simpler Malumfashi one.

Source:http://allafrica.com/stories/201001190018.html

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NASA Urged Not To Outsource

January 19th, 2010

A key federal aerospace panel warned that NASA could run into serious safety challenges if it relies on private companies to ferry astronauts into space in the near future.

The Obama administration has been devising a plan to outsource a chunk of its manned space program to private companies in order to speed up rocket development, save money and focus federal dollars on longer-term expeditions. But a report released last week by the Aerospace Safety Advisory Panel, an outside safety watchdog for the National Aeronautics and Space Administration, cautioned that the private space companies rely on “unsubstantiated claims” and need to overcome major technical hurdles before they can safely carry astronauts into orbit. It urged NASA to stick with its current government-run manned space ventures, and said that switching to private alternatives now would be “unwise and probably not cost-effective.”

The safety panel’s recommendation could force the Obama administration to rethink how far and how fast it wants to go in embracing commercial options. Earlier this year, a panel appointed by President Obama, and headed by former Lockheed Martin Corp. Chairman Norman Augustine, urged NASA to open up its manned space program to commercial- style arrangements with outside contractors. Under that plan, start-up companies such as Space Exploration Technologies Corp., and established, mid-size contractors such as Orbital Sciences Corp., could compete against the largest aerospace suppliers for contracts to ferry astronauts to the international space station. The Augustine panel’s findings have been embraced by White House aides and others as reasons to support more commercially-run space exploration options. The Augustine panel, however, didn’t make detailed recommendations.

But the findings released last week are likely to provide a boost to NASA officials who support keeping nearly all manned space programs in house. In addition, NASA’s largest and longstanding contractors, such as Boeing Corp. and Lockheed Martin Corp., are stepping up efforts to generate White House support against outsourcing more programs. As part of that campaign, they have challenged the safety of the start-up ventures, which are proposing to use rockets that haven’t been fully tested and in some cases, haven’t yet flown.

“It is the panel’s position.” according to the latest report, that none of the commercial ventures vying for NASA business are “currently qualified” to meet human safety standards, “despite some claims and beliefs to the contrary.”

The Obama administration’s upcoming budget proposals will reveal how much NASA Administrator Charles Bolden and senior White House officials were swayed by the safety advisory panel’s arguments. Additional funding to pursue some commercially-run manned space projects is considered highly likely, though the White House still faces tough decisions over how many dollars to allocate and whether to continue NASA’s current multi-billion dollar Ares I rocket program.

The Ares I and its anticipated follow-on rockets were designed years ago to transport astronauts into orbit, to the moon and eventually to other destinations in the solar system. Since then, funding shortfalls and development delays have combined to make Ares a prime target of NASA critics hoping to shift the agency toward more commercial-style ventures.

Mr. Bolden was an appointed member of the advisory group before taking over as head of the agency during the middle of last year. While he didn’t participate in the safety panel’s final deliberations or conclusions, he had expressed doubts about NASA’s overall safety culture

According to summaries of board deliberations included in the report, in February 2009, when Mr. Bolden was running his own consulting firm, he told other panel members that senior NASA managers weren’t taking enough responsibility to assess overall project safety risks or publicly explain “the significant risks associated with space exploration.”

The head of the advisory panel, retired Vice Admiral Joseph W. Dyer, and some of the other eight members are described in the meeting summaries as being concerned about what they called NASA’s “hands-off approach” in allowing development of private cargo spaceships. The admiral and others fear that NASA isn’t developing prompt, precise and unequivocal safety requirements to deal with the prospect that those same cargo vehicles are likely to become the core of proposed commercial space transportation systems for astronauts.

Source:http://online.wsj.com/article/SB10001424052748704541004575012112718455380.html?mod=googlenews_wsj

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Schools urged to outsource ICT

January 14th, 2010

Cash strapped heads should consider outsourcing ICT provision, new market research has claimed.

A survey published by technology solutions provider Stone Group revealed that the vast majority of IT decision makers (82 per cent) surveyed believed ICT budgets would either be frozen or cut in the next fiscal year.

The problem will be exacerbated, claims the research, by the lack of flexibility in schools ICT. The survey found that 51 per cent of schools do not use external providers for any services, while only 15 per cent outsource provision to a third party.

The paper argues this rigid approach will lead to a deterioration of services in the UK’s schools.

“Failure to take any step to change the way ICT is delivered will undoubtedly result in cost cutting that will affect both the quality of current ICT service deliver and any chance of undertaking continual improvement,” said the report.

“After years or relying exclusively on internal expertise… schools must begin to explore the potential financial benefits offered by external resources – from leasing equipment and opting for third party provision for security, to wholesale outsourcing of ICT delivery to minimise capital expenditure.”
The survey also revealed that, after budgetary constraints, security was the second biggest concern for school ICT professionals.

However, only 6 per cent said their organisation had a dedicated security budget and a mere 3 per cent sought external advice over security.

Source:http://www.educationinvestor.co.uk/(X(1)A(oBISnvnKygEkAAAAN2Y4NGRlNWItYmM1MC00MDM2LTk2MTYtOGZlZTQ5MjI0NDc0UPdCjo18f92HZyHWjbtusdDLjWo1)S(hxjjj145lkior4ql5dtss045))/ShowArticle.aspx?ID=1477

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Print Outsourcing Gives Boost to Xerox, H-P

December 22nd, 2009

With companies around the world outsourcing their printing services, the printer and copier industry seems to have found a rare bright spot.

Big companies are increasingly hiring Xerox Corp., Hewlett-Packard Co. and others to provide “managed print services,” a variety of outsourcing in which the vendor takes control of the customer’s production of office documents, typically owning the machines, advising on how to use them, and taking a per-page charge.

The office-machine makers promise to cut document costs by as much as 30% by reducing the numbers of printers and copiers installed on office floors and desktops, replacing them with multifunction printer-copier-scanner-fax machines.

World-wide managed print services will amount to $20.3 billion this year, up 47% from last year, according to Photizo Group, a Lexington, Ky., market researcher. The segment looks increasingly attractive to manufacturers in a year when shipments of printers, copiers and multifunction devices are down 7% to $49.8 billion.

Makers of copiers and printers are rapidly changing their strategies to boost their services business.

“It’s going crazy. We’re drinking from a fire hose. It is now the driving force in the overall market,” says James Joyce, Xerox’s head of managed printer services.

One of the biggest rollouts began a year ago when Procter & Gamble Co. hired Xerox to manage its print services around the world to monitor usage and reduce waste.

Xerox is replacing some 45,000 devices, mostly H-P desktop printers, with about 10,000 shared multifunction devices that are mostly made by Xerox.

Caroline Basyn, P&G’s manager for the project, says that by using the new machines, which print on both sides of a sheet, P&G has reduced use by three million sheets of paper, and it believes it has achieved “40% energy use reduction.”

Xerox and H-P are the leaders in the industry, and each sees managed print as a way to outflank rivals such as Canon Inc. and Ricoh Ltd. Bruce Dahlgren who heads H-P’s managed print services unit, which was unveiled earlier this fall as a new division in H-P’s printer group, says the company’s history of selling services for computer departments gives it expertise with the networked devices used in managed printing.

To expand its offerings in the multifunction arena, H-P recently signed an agreement to sell Canon’s devices in addition to its own. It is also developing a suite of software products designed to manage document flow within industries such as insurance and loan-processing.

Xerox’s Mr. Joyce says “this is a different playing field, and the contracts are huge.” The contracts also discourage customers from frequent competitive bidding. Xerox just signed a multi-million dollar managed-print services contract with Ingersoll-Rand Co. that lasts nine years.

Ken Weilerstein, who follows the market for Gartner Inc., says that “it’s not net new business. The customer is reducing what they’re spending, but the vendor is hoping to cannibalize someone else’s business.”

Xerox, among the first to spot the managed-print opportunity, is also adding to its services revenues through its pact to buy Affiliated Computer Services Inc. for $6.4 billion.

The purchase gives Xerox an opportunity to manage printing for ACS customers, who typically hire ACS for other tasks, such as managing information technology operations or processing invoices.

H-P has moved to take advantage of relationships in its huge computer-services organization, which manages many data centers for big enterprises.

Acquiring a big services organization was a key element in Canon’s agreement last month to buy Dutch printer maker Oce NV for $1.09 billion. Ricoh expanded its services operations last year when it bought Ikon Office Solutions Inc. for $1.62 billion.

Photizo says its data show that H-P surpassed Xerox last year to become the largest managed print services firm with a 35% share to Xerox’s 29%. Ricoh is third with a 14% share followed by Canon with 5% and Lexmark International Inc. with 4%. Gartner says that it hasn’t completed analyzing its data but it believes Xerox is still the leader in the field.

Source: http://online.wsj.com/article/SB10001424052748704193004574588292773099528.html?mg=com-wsj

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UK firms praise ITO performance

December 17th, 2009

The UK’s leading organisations report that their satisfaction with the performance of IT service providers has increased to record levels this year, as has their ability to manage their outsourcing contracts, according to Consultant News.

These findings are from this year’s ‘information technology outsourcing (ITO) service provider performance and satisfaction study’, undertaken by business advisory firm EquaTerra.

UK ITO buyer organisations ranked Capgemini (79%), Cognizant (79%) and Computacenter (78%) as the top three service providers for client satisfaction scores in this year’s study and the bottom three were HP/EDS (59%), Verizon Business (58%) and CSC (51%).

Source: http://www.itweb.co.za/index.php?option=com_content&view=article&id=28943:oz-police-it-projects-8220disastrous8221&catid=69:business&Itemid=58

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Outsourcer Aragon Buys Krugle

December 15th, 2009

Software outsourcing company Aragon Consulting Group has acquired Krugle, which has specialized in code search and analysis.

Aragon announced the acquisition on Tuesday. With the Krugle technology, Aragon plans to enhance its Next.0 Delivery Platform with real-time on-demand visibility into outsourced software development; defects reduction; developer productivity, and code-centric team collaboration.

“The advantage in terms of buying Krugle is that Krugle technology helps us be significantly more productive in delivering our software services,” said Mel Badgett, vice president of marketing at Aragon and a former Krugle official. Krugle technology offers visibility into existing source code, enabling more efficient changes to software, Badgett said.

Aragon will continue support of Krugle Enterprise products and the Krugle Open Source code search service. Development of Krugle technology also will continue with Aragon adding integration and customization options.

Source : http://www.cio.com/article/481231/Outsourcer_Aragon_Buys_Krugle?taxonomyId=3000

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Affinity Express Named Mediaspectrum Outsourcing Partner

December 10th, 2009

To support its recently launched cloud-computing platform, Mediaspectrum Inc. in Burlington, Mass., has named Affinity Express Inc., an offshore/onshore/onsite provider of high-volume advertising and marketing design solutions, as a preferred partner for outsourced creative services.

This arrangement extends the companies’ effort to streamline and transform ad production for publishers.

Mediaspectrumwork with Affinity Express began two years ago, involving a hosted version of Mediaspectrum’s AdWatch production workflow tools. After success at large newspaper chains, Mediaspectrum launched an effort to make AdWatch — along with its Ad Sales and ContentWatch applications — available as a widely hosted, on-demand solution. The result is Mediaspectrum’s cloud-computing platform, introduced in September.

Affinity Express relies on more than 800 designers with expertise in more than 30 software programs. Its services and Mediaspectrum’s platform enable production departments to quickly and effectively implement digital workflows, eliminating time, cost and complexity associated with interactive and rich-media ads while improving quality and business profitability, according to Mediaspectrum.

Chicago-based Affinity Express provides high-volume advertising and marketing design services using production centers in Pune, India and Manila, Philippines.

Source: http://www.editorandpublisher.com/eandp/departments/technology/article_display.jsp?vnu_content_id=1004052426

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Philips in pay as you go IT deal with T-Systems

December 8th, 2009

Deutsche Telekom’s service subsidiary T-Systems has added the Dutch electronics firm Philips to its Netherlands customer base.

T-Systems will provide global data centre and SAP support via a private cloud infrastructure running on a private secure network that links Philips data centres in the Netherlands, US, Europe, Asia and South America.

Some 185 Philips staff will join T-Systems. Financial details were not disclosed.

Philips CIO Maarten de Vries said Philips would in future operate its IT on a pay as you go basis. “This way we can draw on resources dynamically as necessary while paying only for the computer and storage resources we actually use. This will enhance our flexibility and lower our costs,” he said in a statement.

The Netherlands has been a hot market for T-Systems. It recently signed a €1bn outsourcing deal with Anglo-Dutch oil firm Shell, and with brewer Heineken, for an unspecified value.

It also took over some 90 European clients from SAP, making it the top supplier of IT to SAP users in Europe.

Source: http://www.computerweekly.com/Articles/2009/12/07/239612/philips-in-pay-as-you-go-it-deal-with-t-systems.htm

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Local IT companies eye MNCs’ captive back office units

December 6th, 2009

Indian IT exporters are snooping around for business opportunities in the captive back office units of multinational firms. Once labelled as competitors to third party IT services vendors, these captive units, located in large Indian cities are a potential source of new business, as they prune costs and outsource work.

IT services exporter Hexaware Technologies and legal process outsourcing (LPO) firm Integreon are among third party vendors eyeing this nascent opportunity.

“The decision to set up a captive unit, instead of going with a third party vendor, is always a battle between cost and control, where greater premium is placed on control. But now a number of captives are facing cost pressures, and we might be able to assist them there. We believe there is an opportunity here,” said RU Srinivas, CEO of Hexaware BPO arm Caliber Point. BPO is one of the businesses Hexaware plans to leverage to enter the domestic market.

According to Lokendra Tomar, chief operating officer (Asia-Pacific), Integreon, captives want to outsource certain niche functions that do not have scale within the organisation. This could be support functions such as market research or analytics, which may not constitute the bulk of work being done at the captive.

“Since captive units do work only for their parent they cannot scale up the process by adding more clients. On the other hand, a third party service provider having mulitple clients can bring in cost and process efficiencies. It is a win-win for both the captive and the vendor,” said Mr Tomar.

Integreon, which is backed by the Philippines-based Ayala Group, recently acquired Grail Research from the Monitor Group. The acquisition boosts its market research capability, adding to its existing analytics services and LPO offerings. “There is now a closer review of what work should be done by the third party suppliers and what work should be done by the captive. This is the overall trend we are seeing,” said Amneet Singh, V-P (global sourcing), Everest Group.

This trend is also evident in some of the recent captive divestures. Amex, which sold its travel business captive to BPO firm EXL Services, continues to maintain a large captive in India for the other work it does. Fidelity’s captive in India was also earlier exploring a part sale of its operations.

“When some of these captives were first set up 6-7 years ago, the thinking was they should do all the processes that were offshored. Now, the model has evolved and the captives are often involved in the decision-making process of whether they should do a particular process or outsource it to third party suppliers,” added Mr Singh.

ET had earlier reported that the mangement of many large captives was playing the role of advisor to the parent in outsourcing decisions, and also helping to broker contracts with Indian vendors.

“Any captive with upwards of 600 employees and 5-6 years old is ripe to do business. We are having conversations with some of them, but it is still in early stages,” said Mr Srinivas, about the contracts Hexaware’s BPO arm is exploring. The price, in many cases, are comparable with overseas billing rates, but the billing would be in the rupees and would not be eligible for export benefits, added Mr Tomar.

Source: http://economictimes.indiatimes.com/infotech/ites/Local-IT-exporters-eye-MNCs-captive-back-office-units/articleshow/5298079.cms

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BP outsources comms and supplier management to T-Systems

December 3rd, 2009

BP has outsourced its voice and data communications infrastructure toT-Systems in a deal that will also see the supplier manage the oil company’s voice and data suppliers.

The deal, which is worth millions of pounds over five years, is an attempt by BP to reduce the cost and complexity of its comms infrastructure.

T-Systems, which is part of Deutsche Telekom, will supply voice and data communications equipment and manage BP’s multi-sourcing strategy for comms services.

T-Systems will take charge of BP’s global telecoms, Lans, Wans and internet services.

Dana Deasy, CIO at BP Group, said, “This will give BP a significant opportunity to reduce complexity and lower our overall cost base.”

T-Systems is no stranger to working with large organisations. It already provides Shell and Centrica with datacentre and IT infrastructure services respectively.

The supplier also manages multi-sourcing contracts for Aldi, Bosch, Lufthansa and Heineken.

“As well as the technology integrator role, there is a drive for transforming the environment,” said T-Systems UK managing director Sam Kingston.

He added that T-Systems will reduce the number of suppliers that BP works with.

Robert Morgan, director at consultancy Hamilton Bailey, said having a main supplier managing multi-sourcing strategies is the way the market is moving.

“It makes a lot of sence as long as the service integrator knows what it is doing. T-Systems is part of Deutshce Telekom, so I think it fits the bill,” he said.

Source: http://www.computerweekly.com/Articles/2009/12/02/239544/BP-outsources-comms-and-supplier-management-to-T-Systems.htm

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Toronto Star to outsource copy editing; layoff 78

November 26th, 2009

Due to their restructuring earlier this month, the Toronto Star has cut 78 editing jobs, reports Bloomberg. The 117 year-old paper has just announced that it is outsourcing all of its copy editing to Pagemasters North America, a provider of editorial services owned by The Canadian Press. The switch will save the paper C$4 000 000 annually.

The 78 staff that are to lose their jobs constitute a fifth of the employees at the Star. The newspaper currently employs 390 on its editorial staff and a total of 1 300 employees. The layoffs will not affect reporters, columnists, or photographers.
The employees’ union representing the Star, the Southern Ontario Newspaper Guild, has been given 30 days to come up with a viable alternative to the outsourcing. If they fail to do so, the layoffs will begin as early as January.

Included in a memo to staff from editor in chief Michael Cooke, “at a time of unprecedented business nightmares facing the Star and our industry, and despite the many operational challenges associated with outsourcing, we believe there are sound business reasons for this proposal.”

The layoffs are economically motivated. Revenue for the Toronto Star’s parent company, Torstar, fell by 13 percent last quarter. This fall in profit has already forced the paper to resort to voluntary buyouts and early retirement packages, the outcome of which will determine whether there will be any additional future layoffs.

According to Cooke, “When we have seen the result of the VSP [voluntary separation plans], we will know and communicate any changes that brings to decisions about staffing levels.”

These layoffs at the Toronto Star, Canada’s largest newspaper, follow the announcement of layoffs at The New York TImes, The Washington Post, and The Guardian.

Source: http://www.editorsweblog.org/newspaper/2009/11/toronto_star_to_outsource_copy_editing_l.php

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SRP says it won’t outsource tech jobs

November 5th, 2009

Salt River Project officials said Tuesday they decided not to outsource about 50 technology jobs, which the utility has been considering for several months.

After requesting information from local and global outsourcing companies earlier this year, SRP asked for formal bids from an Irish and an Indian company.

SRP could save money by outsourcing the jobs, but the up-front costs are too much for the company to take on during the current recession, Assistant General Manager Barbara Hoffnagle said.

Outsourcing the jobs would cost money up front because the new contract workers would have to work side by side with SRP employees for about a year to learn their jobs, she said.

“I know there was initial euphoria among the employees,” she said of the decision. “But the heavy lifting has just begun.”

She said that after consulting with Accenture Ltd. of Ireland and Infosys Technologies Ltd. of India, she believes the information-technology department at SRP can make significant cuts to its $120 million annual budget.

The 40 to 50 jobs SRP was looking to outsource represent only a small fraction of that IT budget, Hoffnagle said.

“There were cost savings (with outsourcing), but not as high as anticipated,” she said of the bids from Accenture and Infosys. “They certainly could help us.”

Hoffnagle declined to answer how much money SRP could save after the first year by using one of the companies, or whether Accenture or Infosys presented a better offer.

She said outsourcing could be an option when the economy rebounds and the up-front costs are not such a critical issue.

“Never say never,” she said.

Like Arizona Public Service Co., the other Phoenix-area utility, SRP uses some workers from outsourcing companies for supplemental contract work in its IT department.

APS’ Chief Financial Officer James Hatfield got in a heated debate with a state regulator in September regarding his company’s outsourcing efforts.

APS asked all the companies bidding on contract labor for its IT department to provide rates for onshore and offshore labor, which Hatfield said was “the cheapest way to get the job done and keep the permanent payroll down.”

Source: http://www.azcentral.com/arizonarepublic/business/articles/2009/11/03/20091103biz-srp1104.html

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Outsource our jobs? Why firms are afraid of BPOs

October 28th, 2009

Even as Kenya’s business process outsourcing industry continues to grow, companies that are meant to be its customers are becoming its competitors as they shun outsourcing of non-core functions.

Most corporates are, indeed, setting up inhouse (or captive) call centres that handle various customer queries from within, thereby denying BPOs the much-needed business.

This is evident from the list of local firms that have set up their own call centres, among them Safaricom.

Last year, the mobile service provider established its 500-seat call centre.

Others are Co-operative Bank of Kenya, with a 34-seat contact centre and Kenya Commercial Bank, which recently opened a 49-seat contact centre at a cost of $807,692 at its Kencom House headquarters in Nairobi.

The centre will handle customer queries from all its regional operations.

Among the reasons advanced by corporates for not outsourcing are lack of capacity by local BPO operators, confidentiality of client information, trust and quality of service.

Jimmy Masinde, head of KCB’s contact centre, says many businesses believe that customer service should be handled inhouse, and that only tele-sales should be outsourced.

Mr Masinde says call centres can support non-main frame financial institutions like insurance firms but not banks, as information about clients’ accounts is very crucial.

“Outsourcing means no infrastructure, technology and human resource costs… but at what expense to the organisation?” asks Mr Masinde.

He adds that there would be no assurance on quality of service, efficiency and turnaround times.

“BPOs are a recent phenomenon. They are still sourcing most of their work from outside the country.

Many local firms are yet to trust BPOs with their customer service work,” says Mr Masinde, adding that “even developed markets took time to outsource to BPOs.”

“The risk involved in sharing data is the main reason many corporates are not outsourcing customer services. But the proposed credit reference bureau will rectify the situation,” he says.

Many people also prefer being employed by inhouse call centres to independent BPOs due to better terms of service, remuneration and job security.

“Compared to BPOs, the captive centres (inhouse) offer better packages due to their strong financial base,” says Gilda Odera, the chairperson of the Kenya BPO and Contact Centre Society.

A 2008 study on BPOs by the University of Nairobi and the call centre society found that Kenyan BPOs pay operators about $150 and professionals about $500 a month.

To mitigate against high staff turnover, Ms Odera, who is also the chief executive of SkyWeb Evans, a local BPO, says the society is working with the government “to develop a large pool of personnel through training using a $2 million World Bank capacity building allocation to Kenya.”

Statistics indicate that Kenya currently has 29 registered BPOs and call centres, employing about 8,000 people.

The figure covers both captive call centres and independent BPOs.

The country’s BPO seat capacity has moved from 300 seats in 2006 to the current figure, with the government’s goal being to create 30,000 jobs in the sector in the next three years.

The entry of various fibre optic cables in the region will help Kenya tap into the global BPO sub-sector, currently worth over $130 billion.

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India tops global outsourcing nations list

October 22nd, 2009

India continues to top the list of outsourcing nations, with six Indian cities in the top 8 outsourcing destinations, according to a global study.

The findings released Wednesday by CyberMedia’s Global Services and advisory firm, Tholons, pegged India’s IT-BPO (business process outsourcing) export services revenue at US$40 billion in 2008, and listed the six Indian cities as Bangalore, Delhi NCR (national capital region), Mumbai, Chennai, Hyderabad, Pune. The other two cities are the Philippines’ Manila NCR and Ireland’s Dublin City.

In the list of top outsourcing nations, India came out top, with the Philippines and China among the top 5.

The study found there were minimal shifts in rankings this year compared to last year, with the global recession slowing down the pace of outsourcing activity.

Despite decrease in global FDI (foreign direct investment) from US$1.9 trillion to US$1.7 trillion, India’s FDI inflow posted the largest increase globally at 46 percent in 2008, it added.

However, Ed Nair, Global Services editor, said emerging destinations are also vying for a share of the outsourcing pie. He added: “The dynamics between these destinations is ultimately determined by a host of factors, which forms the basis of this study. Also, in many ways, this study is a study in globalization at its most granular level.”

Avinash Vashistha, CEO of Tholons, said the search for an outsourcing destination is not just about lower cost: “[A CIO] must consider location, risk mitigation for business, cultural affinity and scalability of the skilled workforce.
“The service providers need to think through their offerings so as to differentiate as competitive advantage is rapidly vanishing, due to cut throat competition and market saturation.”

According to the report, the global outsourcing landscape has evolved significantly in the last five years. An increase in complexity and wide-scale expansion in both locations and outsourced processes has brought about differences between perceptions of offshore destination and actual location assessments, it said.

Source : http://www.zdnetasia.com/news/business/0,39044229,62058816,00.htm

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Call to outsource more state services

October 19th, 2009

Every service run by the state other than the most sensitive, such as military operations, would be opened up to some form of market-based competition in a radical vision of public sector reform set out by the CBI’s recently appointed outsourcing czar.

Private provision of public services forms a key plank of the employer group’s recommendations for the pre-Budget report – but Adrian Ringrose, who chairs the body behind the proposals, would like to see future governments go significantly further.

The chairman of the CBI’s public service strategy board says contractors and voluntary groups could be involved in areas of the public sector that have hitherto been regarded as politically unpalatable – possibly even frontline policing.

“In implementation, there’s very little, if anything – perhaps other than soldiering – that the state should have an exclusive right to,” Mr Ringrose says in an interview with the Financial Times.

But even though public spending budgets are under historic pressure, policymakers will take some convincing that further outsourcing is necessarily the solution to their woes.

As one of the most developed in the world, the UK’s public service industry already does a lot more than mere back office administration: FTSE 100 stalwarts such as Capita, Serco and G4S do key jobs for central and local government.

According to a study last year by economist DeAnne Julius, the market is worth £79bn (€86.64bn, $128.83bn), employs almost as many people as the NHS and accounts for 6 per cent of gross domestic product.

The industry manages prisons, provides airport security and guards Ministry of Defence sites.

For now, many of the CBI’s specific policy proposals simply involve greater independent involvement in relatively uncontroversial areas such as cleaning and IT. More contracting out of “non-core” public sector functions could save £30bn by 2015/16, the CBI says.

Mr Ringrose, who is chief executive of Interserve – the support services group whose contracts include maintaining mock-up Iraqi towns, where British soldiers do pre-operational training – says there is scope for a lot more.

“Some areas of public service have borders at the moment where the market provides up to there, but not beyond. The market could go beyond and start providing services that are currently reserved to government.”

“You don’t want private armies, no, but … if you look at the American model of military logistics support it is, you know, contractualised virtually up to the finger on the trigger.”

Is that desirable? “If it’s properly structured, yes,” he says.

The government’s role should be to set “what the rules of the game are, what the standards of acceptability are” – not necessarily to deliver.

In spite of the opportunities for support service companies presented by outsourcing, industry executives recognise that cuts to specific government programmes present a significant risk for those exposed to capital spending budgets.

Still, Mr Ringrose says the squeeze in public finances has at the same time made policymakers more receptive to his views. “I think that’s a very constructive environment for a radical redefinition of how public services should be delivered … It’s been driven more by necessity than by an aspirational philosophy.”

Conscious that he represents the interests of private companies that bid for outsourcing contracts, Mr Ringrose is keen to stress that the CBI wants to promote “marketised choice” and not private sector provision per se.

As for chances of success, he says: “You can certainly see instances where our message has stuck.”

Source: http://www.ft.com/cms/s/0/35e5c044-bc20-11de-9426-00144feab49a.html

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