Posts Tagged ‘Services’

Our Services Give Our Clients the Competitive Edge

December 6th, 2011

How do you think ICT trends like cloud technologies, amongst others, can affect small to medium sized enterprises in the Nigerian market?

According to a recent survey carried out by Forrester research in Nigeria, cloud technologies are more likely to be seen within SMEs where there has been an adoption rate of 22 percent, compared with 15 percent of larger organisations. I suppose this can be traced to the fact that SMEs are smaller and often more flexible than larger corporations and this means that they are able to react with more flexibility to changes taking place in the market place. Cloud computing is particularly interesting at this time because of the many particular benefits it offers small to medium sized businesses some of which include the very low capital expenditure to acquire IT equipment like servers, etc, the ability to scale usage in a pay-as-you-go like manner and the flexibility it offers the business. All these make this a very attractive alternative for SMEs. As a company, we believe very much in the opportunities that cloud technologies present for every forward thinking business and this is shown in our acquisition of OpSource, a California-based enterprise cloud company with extensive experience in that space. We feel that Dimension Data is particularly well qualified to offer our clients a truly end-to-end solution that covers every aspect of our clients’ ICT needs from infrastructure through to connectivity.

Looking at the market now, how do you see the Nigerian ICT market developing over the next few years?

The Nigerian ICT market has numerous opportunities for us as a company and there are many favourable factors that are enabling the economy. For example there is a shift in the Nigerian market from product to services and solutions and we are seeing the explosion of service industries like retail and banking. There is also a general shift away from capital expenditure towards operational expenditure and this means that businesses are looking for strategic partners that will work with them to grow their revenue, reduce their risk and reduce their costs. With our worldwide network, Dimension Data is truly able to couple our global experience with our local knowledge to help our clients achieve these goals. With drivers like, mobility, cloud computing, collaboration, hosting and co-location services and IT outsourcing, the industry is set for even growth. Leveraging our expertise and network, Dimension Data is ready to offer innovative solutions and services designed to offer improved customer services and give our clients competitive advantage by increasing business revenues and reducing both operational cost and risk.

Having recently taken on the top job at Dimension Data, what are your plans for the future?

To start with, it has been a thrill for me to come back here after having lived here in 2007 and 2008. It is great to be in Nigeria and particularly to be with Dimension Data. The company has been operational in the Nigerian market for over 16 years and in that time we have established ourselves as leaders within our industry. Looking back, Dimension Data has a rich history in Nigeria and the West African region. We are the number one global partner for Cisco, IBM and Microsoft. We were the first in Nigeria and Ghana to deploy IP/MPLS, build a Tier-3 data centre – the only one of its kind in Nigeria – and deploy Cisco Deep Packet Inspection (DPI) technology. We were also the first to successfully deploy and manage Radio Access Network Optimisation in West Africa. So when you combine our rich history in Nigeria with our global footprint and experience, you have a Dimension Data team that intends to break more records and stands ready to partner with our clients and reach for new heights.

You said that Dimension Data is positioned to be a services-led organisation, how does that translate in the market place?

At Dimension Data, we believe in the power of technology to transform an organisation, we believe that IT makes it work better and takes it to the next level, creating greater satisfaction for you and your customers. But this cannot be achieved through ad-hoc interventions, so what we provide is a lifecycle IT services approach thorough planning, seamless integration and the requisite level of support and management. Working closely with our clients, we are able to provide them with a toolset to create a stable yet agile technology estate – one that sets you up to embrace business changes confidently and securely. When you look at a space like support and managed services where we play very heavily in, and when you consider the shift towards a service economy, what we are offering our partners and clients is an opportunity to gain a competitive edge which will eventually result in greater revenue and reduced costs.

What attracted you to taking a job in Nigeria?

I enjoyed very much my earlier tenure in Nigeria. When the opportunity to join a fantastic company like Dimension Data in Nigeria came along, it was irresistible.

Is Dimension Data using Nigeria as a hub for the West Africa Region and do you think the sub-region has a market?

Nigeria is the base for the entire West African region and we do have projects across the region where we support and manage our installations. Additionally, we have an extensive support structure within the group and we are able to leverage our global network. We currently operate in 49 countries across five continents with offices in 13 countries across emerging Africa and the Middle East, I am not sure any other partner in our space can stake that claim. There’s absolutely no doubt that the sub-region has a market. Africa is not the next big thing; it is the big thing right now. Sectors like services and manufacturing are exploding with interest from African and foreign investors and a company like Dimension Data which has years of experience and knowledge of working within the African terrain are best placed to partner and collaborate with clients that are either already operating in the region or who are thinking of coming into the region.

What are the qualities or achievements that separate Dimension Data from competitors in the West African region?

At Dimension Data, we put the client at the heart of everything we do – they are the reason we come to work every day that is what spurs us to be innovative and partner with our clients to ensure they generate value, reduce cost and risk from their ICT investments. We are also the number one global partner for Cisco, IBM and Microsoft and we are the only company in the Nigerian space which is truly able to offer end-to-end ICT solutions that covers every aspect of a client’s infrastructure, from design to building to support and connectivity. We can boast of extensive experience in network integration and converged communications, data centre solutions, advanced infrastructure, Microsoft solutions and managed services, including operation and optimisation. When you look at the whole picture, I feel strongly that this is one thing that separates us from the crowd – everything we do is centred on the client – meeting their needs and helping them achieve their goals. Earlier this year we had a brand refresh that allowed us not only to refresh our corporate image and branding, but also to reposition ourselves in response to our external environment to be a more services-led organisation as well as reinstating the importance of our clients to our business.

Source:http://allafrica.com/stories/201112051477.html

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Software Development, Project Competence and Worldwide Services – Pentalog Becomes Microsoft Gold Partner

November 24th, 2011

Eschborn. A gold medal represents the pinnacle of an athlete”s career. The Microsoft Gold Partnership for IT companies is of comparable significance. It denotes a high level of technical competency, strategic thinking and practical skills. The Pentalog group, an enterprise that specializes in IT outsourcing, offshoring and nearshoring, has now joined the ranks of these top players. “We are very proud of this partnership”, says Mircea Popa, Chief Executive Manager of Pentalog Deutschland GmbH, “as it proves that we are one of the leading providers of software development in Europe. The premium support by Microsoft associated with this award will enable us to offer our customers even more quality and reliability, particularly in the field of interfaces to the classical office products.

Membership in the Gold Partner Program offers a company both a better image and superior knowledge. Microsoft Gold partners at the top of their game with regard to tool access and the necessary support from the Microsoft company. They have received intensive training and are informed of changes, updates and product innovations earlier than others. This advantage in knowhow can in turn be passed on to the client. “There is an increasing demand for software solutions in the areas of cloud computing and globally linked IT processes”, Popa explains. In this field, Microsoft”s products SharePoint and the Exchange Server offer significant benefits which are becoming extremely significant to companies. Integration between native software solutions and Microsoft products is also becoming tighter.

The exchange between the Pentalog group as a new Gold Partner is particularly valuable with regard to SharePoint. This relatively new product from Microsoft is partly internet-based and partly based on the individual computers of users. Respective interfaces to the Cloud business allow the sharing of data with single units, different compartments as well as entire companies. This way, SharePoint can be used to coordinate appointments, edit documents or develop shared strategies. SharePoint allows users to share almost every Microsoft business application with others – no matter where the involved parties are currently located.

“SharePoint is not as user-friendly a program as Windows, however”, states Popa, Pentalog”s CEO and Rumania born IT expert. SharePoint must be adapted to the individual requirements of a company by experts to achieve optimal success and ultimate process security. “SharePoint developers are currently in high demand”, acknowledges Popa. “In Bucharest, we are developing a SharePoint Competence Center to meet this enormous demand.” As the economy becomes increasingly global, this increases the demand for technologies that allow us to jointly work on projects from a shared physical presence in one location. This situation requires cost-efficient yet high quality solutions with appropriate interfaces.

The French Pentalog group currently employs more than 600 employees – mostly software developers and engineers – in France, Rumania, Moldova, and Vietnam. These employees develop individual software solutions for companies of all sizes. Outstanding IT skills in these countries and the constantly growing demand for custom-made software that is also compatible with current Microsoft products makes our Gold Partnership a strategically valuable element”, says Popa. On this basis, Pentalog will continue to enhance its position in the field of qualified IT outsourcing, IT offshoring and IT nearshoring.

For more information on the IT services of the Pentalog group and its Microsoft Gold Partnership, visit www.pentalog.biz.
Pentalog Deutschland GmbH is located in Eschborn, Germany, and is the German branch office of the international Pentalog group, one of the leading suppliers of high-end offshore software development solutions in Europe. With branch offices in France, Germany, Rumania, Moldova, and Vietnam, the Pentalog group offers an ideal mix of nearshore and offshore services by employing local workforce in Western Europe. A smooth quality assurance system, professional project management and many years of outsourcing experience guarantee the highest possible efficiency and reliability for outsourced software development.

Source:http://your-story.org/software-development-project-competence-and-worldwide-services-pentalog-becomes-microsoft-gold-partner-287603/

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Everest Group: China’s Global Services Market Projected to Grow 20-25 Percent CAGR by 2015

November 18th, 2011

Global services exports revenue in China is projected to increase to US$9.5-10 billion by 2015 at a CAGR of 20-25 percent from US$3.5 billion in 2010, according to Everest Group, an advisory and research firm on global services.

Global services exports from China increased from about US$1.2 billion in 2007 to US$3.5 billion in 2010, according to Everest Group’s study, Global Locations Compass: China. The study reports IT Outsourcing (ITO) services contribute about 65 percent towards China’s total export revenue, largely driven by the in-country presence of several top-tier global IT providers. Business Process Outsourcing (BPO) work comprises the remaining 35 percent.

“China offers a compelling regional language advantage and cost arbitrage and is thus best leveraged to serve the Asia region, which accounts for about 60 percent of China’s global sourcing revenues,” said Amneet Singh, vice president — Global Sourcing. “While lack of clear cost and English language skills translate to a limited competitive advantage over India and the Philippines for work exported to North America and Europe, these regions still account for about 40 percent of China’s global sourcing exports. China can serve as a risk diversification alternative to serve North America and Europe.”

Last year’s market growth in China prompted its reclassification as a mature offshore destination on Everest Group’s Market Vista Locations Maturity Heatmap. According to Everest Group’s Offshore Locations Survey of buyers earlier this year, China has emerged as a leading destination after India and the Philippines.

Other findings:

– More than 15 delivery centers were established or expanded across Tier-1 and Tier-2 cities during the last 12 months.

– Market growth also has been propelled by several government initiatives, development/promotion organizations and government-backed incentives.

– China offers more than 20 cities for global services delivery, some of which are Tier-2 cities that are emerging as credible alternatives to Tier-1 options.

– Cost arbitrage is expected to remain sustainable over the next 13-14 years.

“Players defining their ‘China Delivery Strategy’ should assess China’s role in their global services delivery models and understand the costs and talent pool available in context of the envisaged role for China. Cities in China offer varying levels of attractiveness across global, regional and local delivery from China,” said H Karthik, vice president — Global Sourcing. “Companies planning to enter or expand in China also need to invest in talent engagement and development, monitor progress of recent data protection guidelines and examine Tier-2 cities to lower delivery costs.”

The report provides an in-depth analysis of China’s global services landscape across captives and third-party service providers for ITO and BPO services to include market characteristics, education system and future outlook. The study also provides detailed data and perspectives on seven key cities — Shanghai, Beijing, Dalian, Guangzhou, Chengdu, Hangzhou, and Suzhou — spanning across labor pool, cost, market activity and risk analysis.

For more information about the report, Global Locations Compass: China, other Global Sourcing and Location Optimization research reports or other research services, please visit research.everestgrp.com, email info@everestgrp.com or call +1-214-451-3110.

About Everest Group

Everest Group is an advisor to business leaders on the next generation of global services with a worldwide reputation for helping Global 1000 firms dramatically improve their performance by optimizing their back- and middle-office business services. With a fact-based approach driving outcomes, Everest Group counsels organizations with complex challenges related to the use and delivery of global services in their pursuits to balance short-term needs with long-term goals. Through its practical consulting, original research and industry resource services, Everest Group helps clients maximize value from delivery strategies, talent and sourcing models, technologies and management approaches. Established in 1991, Everest Group serves users of global services, providers of services, country organizations and private equity firms, in six continents across all industry categories. For more information, please visit www.everestgrp.com and research.everestgrp.com.

Source:http://www.marketwatch.com/story/everest-group-chinas-global-services-market-projected-to-grow-20-25-percent-cagr-by-2015-2011-11-17

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Commercial Services Sector: Top Buy And Sell Ideas Based On Last Week’s Big Movers

August 23rd, 2011

The commercial services sector was down strongly last week in sympathy with the market fall, and based on fears of a global recession and its impact on corporate spending, and on the margins and profits of companies that provide various kinds of IT, outsourcing and other commercial services to corporations. This article covers our analysis of the big news and price moves in the commercial services sector last week, evaluating them for buy and sell ideas.
Infosys Ltd (INFY), Cognizant Tech (CTSH) and Wipro Ltd (WIT): All three Indian providers of outsourcing services to global corporations, based mainly in North America and Europe, fell strongly last week on fears that a global recession would severely hurt demand for their services. CTSH, a provider of custom IT consulting, technology and outsourcing services, fell the hardest, and was down 14.9% last week after Goldman Sachs removed it from their buy list on Monday morning before the market opened, falling even more sharply during the market downturn on Thursday and Friday. Peer INFY, a provider of software re-engineering, systems integration, infrastructure management and other IT services, fell 11.6%; and another peer WIT, a provider of consulting, IT, outsourced R&D, and infrastructure and BPO outsourcing services, fell 10.1% during the week.
All three generally move in tandem, and have turned down since peaking in late 2010 to early 2011. Of the three, CTSH is down the least, falling 34% since peaking in April, and it is also the one with the strongest growth, with revenue and earnings up 34% and 22% respectively in the June quarter, and projected revenue growth of 23% going forward for FY 2012 over 2011. Comparable growth rates for WIT are at 23% revenue and 0% earnings growth for the June quarter, and forward growth of 15%. INFY grew revenue and earnings at 26% and 21% in the June quarter, and projects forward revenue growth of 18%. All three, however, trade at a comparable forward P/E of 16 for CTSH and WIT, and 14 for INFY. Thus, from a valuation standpoint, CTSH is the most attractive of the three as it trades at the lowest P/E adjusted for growth. Furthermore, based on our review of the holdings of over 60 high alpha hedge and mutual funds (from managers such as Soros, Icahn, and Mario Gabelli), we determined that of these three, guru funds are most bullish about CTSH, holding $593 million after adding a net $38 million in the June quarter, whereas they hold only $1 million of INFY and none of WIT.
International Business Machines (IBM), Accenture Plc (ACN), and Computer Sciences Corp. (CSC): All three are among the largest providers of consulting, IT and BPO services to businesses and government agencies, and they fell strongly last week on no company-specific news, but mimicking the broad sell-off in the markets and due to the possible impact of a deeper recession on consulting and outsourcing revenues. Of the three, ACN dropped the hardest last week, down 13.1%, CSC fell 7.9%, and IBM fell 6.3%. CSC trades the cheapest at a forward 5-6 P/E while revenue growth is in the low single digits at 2%-3% and earnings have been flat to down. IBM in contrast trades at forward 10-11 P/E while earnings growth is in the mid to high teens, and ACN trades at a forward 12-13 P/E while long-term earnings growth has averaged in the low teens.
Thus, from a valuation perspective, IBM is the most attractive based on its low P/E and high relative and consistent growth, and CSC is also somewhat attractive from a deep value standpoint in terms of its extremely low 5-6 P/E even though operating fundamentals are rather poor. Furthermore, of the 60 plus high alpha or guru funds that we track, as a group they are most bullish on IBM, adding a net $278 million during the June quarter to their $709 million prior quarter position in the company. Furthermore, guru funds are bullish on CSC, adding a net $46 million to their $56 million prior quarter position, and they are bearish on ACN, cutting a net $69 million from their $355 million prior quarter position.
Buy Hewlett-Packard Co. (HPQ): HPQ is currently a provider of IT and outsourcing services, PCs and peripherals, printers and scanners, and servers and storage devices. However, with the announcement late last week of the $10 billion acquisition of European data analytics company Autonomy, and the intent to spin-off its PC division and shut-down its tablet and smartphone business, it is fast morphing into an IBM-kind of software and services model. The street initially rewarded the company with the stock up almost 8% in morning trading Thursday, but panic took over as the market collapsed late Thursday, and the stock ended down almost 8%. Friday, the stock collapsed down over 20% for the day after reporting disappointing forward guidance of $32.1-$32.5 billion in revenue and $1.12-$1.16 in earnings for the October 2011 quarter versus consensus estimates of $33.9 billion and $1.31.
At Friday’s close of $23.60, HPQ looks like a deep value buy, trading at a very reasonable forward 4.4 P/E as earnings are still projected to increase in the mid to high-single digits going forward. However, it is most likely that these forward earnings estimates will be pulled down in the coming weeks as analysts factor in the exit from the PC business into their forward earnings estimates. Even then, we believe that the stock has overreacted to the downside, probably precipitated by weakness in the markets and economy, as well as panic selling by investors who may have been severely disappointed over HP’s plans to exit its core PC business. Furthermore, the stock is approaching a major technical support area in the $21-$23 range that should hold. Looking forward, with HPQ’s transition into an IBM model, it is making a similar transition to what IBM did six years ago in 2005, and a look at IBM’s long-term chart reveals that its stock has more than doubled since it made that transition in 2005. It is conceivable that HPQ may pull together a similar transition, and current shareholders in that case would be handsomely rewarded. Either way, we would be buyers here in the low-$20s as the downside is currently limited based on its attractive valuation, whereas the long-term upside could be huge if the transition is executed well.
Please note that the cumulative price change referred to in the last column of the Table above is used here as a measure of volatility to determine big movers in the group. It equals the sum of the absolute value of the change in daily prices. So, for example, if a security had price moves of 2%, -3%, 4%, -6% and 1% during the five days of the week, the cumulative price change during the week would be the sum of the absolute values of the daily price changes, which in this case would be 16%.
Credit: Historical fundamentals including operating metrics and stock ownership information were derived using SEC filings data, I-Metrix® by Edgar Online®, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.

Source:http://seekingalpha.com/article/288841-commercial-services-sector-top-buy-and-sell-ideas-based-on-last-week-s-big-movers

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Accenture to Deliver Information Technology and Finance and Accounting Services to Intertek under Outsourcing Contract

August 2nd, 2011

Accenture /quotes/zigman/565535/quotes/nls/acn ACN -0.30% has entered into an agreement with Intertek, a leading global provider of quality and safety solutions, to provide Intertek with global IT and finance and accounting (F&A) services on an outsourced basis. The agreement includes the provision of technology infrastructure, application management and back-office accounting services. Financial details were not disclosed.

Under the global agreement, Accenture will provide F&A business process outsourcing (BPO) services to Intertek through an Accenture global delivery centre in Delhi, India. The agreement includes services currently delivered by Intertek across ten English speaking countries and the programme will be implemented over the next two years.

Accenture will also provide global technology infrastructure and manage Intertek’s bespoke technology applications; supporting the group’s strong global growth programme and enabling efficient integration of acquisitions.

Following a sustained period of significant growth, including a number of acquisitions, Intertek is seeking to integrate and standardize its finance and technology functions across a number of geographic locations.

“As part of our Intertek as One programme, our collaboration with Accenture will support Intertek’s growing IT and accounting requirements across ten countries. This change will provide an efficient, scalable platform to support Intertek’s growth program and generate near term cost savings.” said Lloyd Pitchford, Chief Financial Officer of Intertek Group.

“The Intertek and Accenture agreement aims to create a high performing outsourced shared services environment for Intertek’s finance and IT support functions,” said Paul Dillon, senior executive in Accenture’s Industrial Equipment Group. “We are focused on helping Intertek simplify its back office processes in these areas and delivering cost synergies across the Group”

Accenture will deliver the services both from client sites and through its Global Delivery Network using one of its delivery centers in Delhi, India.

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Outsource services or cloud services?

June 16th, 2011

It’s a classic scenario in today’s times, where the outsourcing services have grown phenomenally well over the past three decades and the cloud computing concept or cloud-based services are evolving in recent years.

The outsourcing phenomenon, during all these years have lead to the so-called business process outsourcing (BPO) or information technology enabled services (ITeS) industry. And now, the cloud computing concept is also following the path of outsourcing phenomenon with growing number of cloud-based services providers world over.

Was it some kind of disruptive technology behind the outsourcing services growth that added a new dimension to a country like India in the field of IT? And is there the same kind of disruptive technology that is also pushing cloud services?

“Yes, there’s technology but not disruptive technology. It’s the economics of business that has determined, and will determine, the use of cloud services or outsourcing services in future,” says Michael Barnes, Forrester’s vice president and principal analyst.

According to Barnes, outsourcing or cloud-based services are interconnected in some way or the other, as consumers (organizations) are interested in quality services with assured guarantee.

“Fundamentally, there’s a change in services not in technology. For example, the BPO offers services irrespective of location, and the same way through cloud computing, you can access services from anywhere,” Barnes points out.

Interestingly, “It’s a mistaken belief that BPO is good or cloud is good, because in both scenario, organizations want to make sure they get higher business efficiency or productivity, lower down-time, meet the workload demand and reduce the overall cost; getting efficient services is the key for organizations,” he says.

However, Barnes adds, organizations are not going to outsource everything or move everything on to the cloud platform. “But outsourcing service providers will need to match-up the efficiency or transparency of cloud providers, otherwise they will feel the margin pressures.”

Cloud computing is reshaping the business expectations through software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS) with web-based user access, along with models of pay per use, shareable resources, dynamic resource allocations and scalability.

According to Barnes, about 70-85 per cent organizations in Asia, including India, are largely focusing on private cloud compared to public cloud, which was happening two years back. Though the cloud adoption is growing, he views that there’s a need of education and awareness about cloud computing in India.

“Besides security and data privacy concerns, India needs to have a good affordable broadband for providing cloud services. Without good connectivity, the cloud-based services will not be provided effectively and efficiently to consumers and it won’t benefit them,” Barnes observes.

He concludes, “Earlier, we used to think of technology but today it is only about accessing services. And that’s the priority for most organizations today.”

Source:http://www.ciol.com/News/BPO/News-Reports/Outsource-services-or-cloud-services/151217/0/

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Shared Services and Outsourcing in HR

June 15th, 2011

The Shared Services and Outsourcing Network has recruited some of the top HR Shared Services Professionals from around Europe to deliver a highly focused and topical event. Following months of industry research, the HR Directors Summit event will be running in London on the 11th and 12th of October this year.

The event will explore key objectives and challenges specific to utilising shared services to address pressing issues including Attrition and Retention, Change Management, Effective HR Governance Models and Talent Management Strategies.

Innovative case studies and interactive discussions aim to highlight strategic transformation gaps in strategies that can be addressed using the latest technological advances.

Companies including Rolls-Royce, Sainsburys, Electrolux, GSK, DHL and UBS are among those looking at a range of issues affecting organisations at different stages of their Shared Services journey. These companies are meeting to discuss what will in the coming months keep them at the cutting edge of Shared Services, helping them retain their competitive advantage.

Source:http://www.sacbee.com/2011/06/15/3701747/shared-services-and-outsourcing.html

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