Posts Tagged ‘Outsourcing’

Enterprise IT Swings Back to Insourcing

August 27th, 2014

Everything is cyclical. That is especially true in the information technology profession. For instance, companies are constantly shifting between centralizing and decentralizing technology, so it can be more responsive to the business.outsourcing21

The same can be said about outsourcing. Only a few years ago, the general thinking was that technology was a commodity, and that companies could outsource most, if not all, IT functions. But is that still true today?

According to David Wright, a former technology senior vice president at Capital One and the current CIO of McGraw-Hill Education, the shift to insource is stronger than ever. “Today, technology is seen as being so central to the business,” he told us. “There is now a move to centralize technology and insource it. Just a few years ago, IT was defined as a commodity, and there was a massive move to outsourcing.”

Although there are many things that companies need to do themselves, they still don’t need to run all technology, Wright said. “Most small and medium-sized companies don’t need to run their own data center,” including McGraw-Hill Education. “But there are certain things that we do need to control,” such as creating digital learning products, which are the future for traditional textbook publishers.

In his role as CIO at McGraw-Hill, his financial services experience will be helpful. “The banking industry is so technology dependent, and it has been that way forever.” Technology has only recently begun to play a central role in the education space, whose legacy is one of print textbook publishing. “Technology is now the foundation of McGraw-Hill and digital learning tools.”

Outsourcing model to improve service quality for Nigerian telcos

August 27th, 2014

outsourcing15As the Telecoms industry matures, competition has enforced the need for differentiation amongst Nigerian Mobile Network Operators (MNOs) and this, will ultimately lead to an improved value proposition and as a result; a dynamic shift from cost reduction efforts to efficiency enhancements.

There is an increasing trend in the adoption of several forms of outsourcing by Nigerian MNOs and the International Data Corporation (IDC) actually believes the evolution in business models employed by mobile operators in Nigeria is actually a step in the right direction.

“In the long term, we expect this trend to lead to a notable improvement in the quality of service (QoS) on the networks provided by these MNOs,” said Oluwole Babatope a telecommunications and networking research analyst with IDC West Africa.

Earlier this year, we saw MTN Nigeria and Ericsson sign a major five-year managed services agreement that had Ericsson assume full responsibility of the management, optimization and field maintenance of MTN’s network infrastructure in Lagos, Abuja, Enugu, Port Harcourt and Asaba.

Head of Managed Services at Ericsson, Jean-Claude Geha, said: “This agreement with MTN, Nigeria’s largest telecom operator, marks a milestone for Ericsson in Nigeria and in the region. In Managed Services, we bring our global expertise and experience to benefit our customers and ultimately their subscribers’ experience of the network.”

Competition amongst MNOs in Nigeria is no longer news. The exponential growth of the industry has led to the increased maturity and sophistication of individual MNOs and has also ushered in an intense level of competition amongst the industry players. Operators are now competing within an industry value chain that is significantly different from what it was just a few years ago. In other words competition is forcing down tariffs, legacy voice revenues are declining steadily and the average revenue per user is falling.

In an attempt to combat these dwindling profit margins, reduce operational cost as well as generate additional revenue streams, MNOs in the country have turned to boosting the provision of data services. Such efforts however, require additional capital and operational expenditure requirements and such costs are already impacting negatively on profit margins. As a result, MNOs have turned to various outsourcing models in collaboration with third-party infrastructure providers; a move that would increase focus on their core business which in turn improves QoS and eventually customer experience.

The CEO, of ETISALAT Nigeria, in a recent interview said selling 2,136 of its sites/towers to IHS Holding Ltd was actually part of a broader strategy to drive improvements in the quality of its network performance.

From just 400,000 lines in 2001, Nigeria’s mobile market has grown to over 120 million users today, with tele-density hitting over 92 percent today. But poor QoS remains the bane of the Nigerian telecommunications industry, with all four MNOs falling foul of the regulator at various times over the years.

On quality of service, Executive Vice Chairman of the Nigerian Communication Commission (NCC), Eugene Juwah, in an interview said “We would like to have done better but we’ve always been striving to do better”.

The quest to maintain profitability is not distinctive to Nigerian operators, but there are distinct forces at play within the Nigerian market that are making profitability ever more daunting for MNOs in the country. The likes of ETISALAT, AIRTEL and MTN have all in one form or the other signed some form of outsourcing contract with a telecom equipment vendor or telecom infrastructure provider; outsourcing non-core services to reduce operational costs.


Explore Global IT outsourcing market 2014 – 2018

August 26th, 2014

This report covers the present scenario and the growth prospects of the Global IT Outsourcing market for the period 2014-2018. The Global IT Outsourcing market can be segmented into two: Application Outsourcing and Infrastructure Outsourcing.outsourcing11

The emergence of cloud-based outsourcing is a rising trend in the market. Several clients adopt this technology to get instant access to applications they need without having to wait for installation. Some of the advantages offered by cloud-based outsourcing are cost reduction, reliability, scalability, and agility.

IT outsourcing is the process of subcontracting the IT functions of an organization to a third-party vendor that has expertise in the required domains. IT outsourcing can be used as an effective strategy to build a high-performance IT organization. It helps client firms to increase their operational efficiency, concentrate on their core competencies, reduce time-to-market, obtain access to fresh talent and experience along with the latest technologies, and build an economical cost structure in the long run.

According to the Global IT Outsourcing Market 2014-2018 report, a considerable reduction in operational costs and time is one of the main drivers in the market as clients do not need to invest in the acquisition of resources or worry about handling limited available resources.

The report recognizes the following companies as the key players in the Global IT Outsourcing Market: Accenture plc, Computer Sciences Corp. (CSC), Fujitsu Ltd. and Hewlett-Packard Co. (HP), IBM Corp.

Other Prominent Vendors in the market are: Acora, ACS, Aegis, Amdocs, Capgemini, CGI, Cognizant, HCL, iGate Patni, Infosys, ITC Infotech, Pitney Bowes, TCS, Teletech, Unisys, Wipro and Xerox.

The Global IT Outsourcing Market 2014-2018 has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the Americas, and the APAC and EMEA regions; it also covers the Global IT Outsourcing market landscape and its growth prospects in the coming years. The report includes a discussion of the key vendors operating in this market.

Key Market Driver
Cost Effective Operations
For a full, detailed list, view our report
Key Market Trend

Increased Cloud-based Outsourcing
For a full, detailed list, view our report
Further, the report states that the future of the Global IT Outsourcing market is predominantly curtailed by the rising attrition rates. Outsourcing jobs are taken up on a temporary, or part-time basis, and turnover rates are very high.

Key Questions Answered in this Report

What will the market size be in 2018 and what will the growth rate be?
What are the key market trends?
What is driving this market?
What are the challenges to market growth?
Who are the key vendors in this market space?
What are the market opportunities and threats faced by the key vendors?
What are the strengths and weaknesses of the key vendors?


Analyst Calls Cloud the Bright Spot for HP Services

August 25th, 2014

Even in the face of declining revenue, Hewlett-Packard (HPQ) Services has a bright spot, according to one Technology Business Research (TBR) analyst.outsourcing9

Cassandra Mooshian, a TBR analyst, noted HP Services’ revenue during the second quarter of 2014 showed continued “revenue contraction.” Total revenue was $7.7 billion for the quarter, down 5.4 percent year over year and 1.9 percent sequentially.

Technology services, IT outsourcing and applications and business services all were down sequentially and from the previous year’s same quarter. But the one shining star within HP Services has to do with its strategic Enterprise Services Business, which includes security, mobility, analytics and, of course, cloud. That business segment grew by double-digits year over year, and Mooshian also noted that its signings growth was positive for the first time in nine quarters.

“We expect HP Services’ margins to improve on year-to-year terms, while fluctuating sequentially, over the next six quarters as a result of improved processes around service delivery and better workforce utilization,” Mooshian wrote in her analysis of the quarter’s earnings.

Cloud is the bright spot within HP Services, for sure, but Mooshian that its greatest cloud strength lies in managed private cloud services.

“HP announced HP Helion Managed Virtual Private Cloud (VPC) Lean in August, a managed IaaS solution without the bells and whistles such that it can be offered at an attractive price point to smaller enterprises and SMBs that have small budgets but want to run their lighter workloads such as collaboration and application testing and development on a managed private cloud,” Mooshian wrote. “TBR believes HP’s tenure and expertise in the IT infrastructure, outsourcing and IT support services markets have driven HP’s strength in cloud to managed private cloud.”

Strategic alliances are the vendor’s best bet in expanding its portfolio and global revenue, Mooshian noted. For the channel, this is a positive, as “HP is utilizing its rooted channel and partner relationships to expand its portfolio and reach in emerging areas of the IT landscape, particularly around cloud, mobility and Big Data.”

“We believe that as HP restructures, it does not have the resources available, both monetary and personnel, to acquire as some of its peers do, leaving portfolio developments and furthering its global reach up to R&D investments and partnerships,” Mooshian wrote.


IT and outsourcing

August 25th, 2014

Outsourcing, whether it be technology, logistics or other business operations or processes, is becoming increasingly widespread as well as sophisticated. As such, outsourcing requires specialist legal advice.outsourcing8

Our services
At BWB, we can advise both suppliers and customers for IT and outsourcing services on the full range of outsourcing projects — from relatively straightforward contracts for services to complex international transactions.

We also have wide-ranging experience of technology projects of all kinds, including software development, managed services, cloud computing, web-based projects and systems integration.

The extensive experience of the team means we have in-depth sector knowledge and are able to advise you on every step of the outsourcing process, from invitations to tender, contract negotiation and implementation through to advising on the resolution of disputes.

Our team has expertise in a whole range of sectors with particular experience advising on outsourcing transactions in the financial services, retail, media and not-for-profit sectors.


80% Of Healthcare Providers Outsourcing Some IT Services

August 25th, 2014

Most healthcare providers leverage outsourcing for some level of IT function and redirect critical human and capital resources to primary business objective. This is according to a recent white paper by Allscripts, titled “Enabling Healthcare Providers to Focus on Outcomes.”outsourcing7

According to the white paper, “Health IT departments are being asked to meet the high demands of the industry and operate with limited resources, all while managing a tight budget and focusing on strategic goals. Technology Business Research, Inc. found that close to 80 percent of U.S. healthcare providers engage in selective outsourcing for at least some of their IT needs, and over one-fifth of providers have turned over all of their day-to-day IT operations to managed IT services partners.”

As the complexity of healthcare continues to expand through implementation of EHRs, HIEs, ICD-10, risk-based payment models, and a renewed focus on patient engagement, providers are being expected to fulfill all these new demands and still remain focused on their core mission of delivering healthcare services that result in improved outcomes for patients. At the same time, providers are grappling with a growing scarcity of talented healthcare IT professionals in an ever-competitive market.

Hardware and software innovations in healthcare have mirrored changes in IT in other industry sectors. The organization and operational benefits of rapid advances in technology are complicated in healthcare, however, by the increasing regulation of privacy and data governance within the healthcare industry. Healthcare providers must stay abreast of regulation changes or risk non-compliance and competitive disadvantages, exerting additional pressures on expensive labor resources that are already inadequate.

This is where managed IT services can help. Services like Allscripts can enable providers to meet these challenges and refocus on achieving their primary organizational missions by enhancing the predictability and flexibility of IT-related talent and capital expenses, empowering providers to improve workflows, to focus on patient engagements and to reallocate existing in-house IT staff to more strategically-oriented projects. By outsourcing IT services, healthcare providers can focus on what they do best: providing healthcare.

Many best-in-class healthcare organizations have leveraged Allscripts Managed IT Services to enhance the predictability and flexibility of their IT-related talent and capital expenses, and have realized improve workflows, a renewed focus on patient engagements and reallocation of existing in-house IT staff to more strategically-oriented projects.


UISCs to be made outsourcing centres

August 25th, 2014

All the 4,516 Union Information Service Centres (UISCs) will be turned into outsourcing centres to create opportunities for rural people to earn foreign currency, ICT secretary Md Nazrul Islam Khan said today (Saturday).Outsourcing6

“Rural people, particularly youths, can get outsourcing training from the UISCs to earn handsome amount of money sitting at their homes and contribute to boosting national economy,” he told a workshop on “Prospects and challenges of UISCs” in the conference room of ICT Division here.

The workshop was held under the Empowering Rural Communities-Reaching the Unreached: Union Information and Service Centre(UISC) Project.

SAARC Development Fund is implementing the UISC project at a cost of Tk 9.43 crore at 200 UISCs in remote areas of the country.

Director of Enabling Environment of a2i programme of the Prime Minister’s office Md Abdul Mannan, field level officials and IT professionals, among others, attended the workshop with UISC project director Susanta Kumar Saha in the chair.

The ICT secretary said a male and a female entrepreneur are jointly running a UISC, which is now providing outsourcing training under ICT Ministry’s Learning and Earning Project. The training recipients will be freelancers and then they will be given entrepreneurship training, he added.

He said the government would create one lakh freelancers across the country by this year through the ongoing Learning and Earning Programme aiming to provide employment opportunities for young people.

“We have already created 20,000 freelancers and the programme is going to create another 80,000 freelancers by this year,” he added.

The government is establishing hi-tech IT parks at all divisional levels to expand ICT across the country, Nazrul Islam Khan said adding, “We have a plan to set up hi-tech parks at district levels to reach benefit of ICT to rural people.

“We are working to create skilled workforce with IT knowledge to ensure better access to job markets at national and international levels, which will ultimately foster economic progress in the country,” he added.

The government is implementing “Learning and Earning Training Programme” to create opportunities for earning foreign currency through online outsourcing, Khan said, adding freelancing is an extremely prospective sector worldwide and now it is getting popularity in the country.


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