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A recent study from research and advisory firm Computer Economics Inc. shows that more companies plan to increase rather than decrease their data center outsourcing and most are pleased by the results.

The percentage of companies that entrust some part of their data center operations to third-party providers has hovered around 33% in recent years, according to Computer Economics survey data. The most aggressive outsourcers are small organizations, with more than half relying on third parties for at least 50% of their data center operations. Large organizations are nearly as eager (45%) to let third parties do half of their processing.

In addition, the heaviest users of data center outsourcing also have the most complex and heterogeneous computing environments. Outsourcing may be their strategy for bringing data center costs in line with industry norms. Outsourcing the data center at a lower cost than managing it oneself may free up IT budget dollars that go to keeping the lights on (70% is the norm) for more strategic projects.

Read more about this study in searchcio-midmarket.techtarget.com

India still controls as much as 65 percent of the industry and derives an estimated US$52 billion in annual revenues from it, employing more than 2 million people in finance, human resources and customer services. However, this industry is continuing to change dramatically, growing progressively.

BPO industry is growing at a scorching 35 percent annually. India has lately been losing some of its sheen as the world’s favorite back office. Growth has tapered off to 10 per cent this year and most Indian companies are finding their market share eroded by countries like China, Philippines, Russia and Eastern Europe.

Such like Philippines, althouth is a poor country beset with political strife and corruption, its government is doing everything it can to get more American companies to outsource to it. And companies from a few East-European countries too, are cutting their prices to lure western companies.

Read this news in asiasentinel.com

Wipro is currently one of the Indian software exporter who has significant presence in Egypt. Wipro counts Bharti Airtel, Unitech Wireless and Dena Bank among its top customers. Egypt counts 10-15 % lower costs than India, and has availability of required technical skills across different programming languages including Windows and Unix.

For businesses, lower corporate tax rates along with other incentives make Egypt a very compelling destination
to invest.“Egypt has already reduced taxes from 40% to 20% and ITIDA does help multinationals with incentives like subsidising the training of professionals,” said Hazem Abdulazim, chief executive of the Information Technology Industry Development Agency (ITIDA), Egypt.

However, Egypt does not pose any threat to India’s dominance in the global outsourcing industry. “When it comes to the IT/ITeS sectors, Egypt and India complement each other utilising their strengths to open new markets, forge closer ties between Egyptian and Indian companies and make the best use of their abilities,”

Read this news in economictimes.indiatimes.com

Top Australian banks Westpac and Commonwealth Bank plan to curb offshoring of back office and IT projects to India

Westpac, is Australia’s biggest bank by market value, is evaluating outsourcing vendors for a contract estimated to be anywhere between $200 & 300 million. Actually Westpac is being advised by Booze Allen Hamilton and McKinsey on restructuring of operational and IT systems, and outsourcing of activities such as backoffice work, application maintenance and development is a part of the exercise.

Read this news in businessweek.com

Saturn Systems Software Engineering has reported record results for 2008 with its Rural Outsourcing business model. Financial results for 2008 show a 25% increase in revenue which is consistent with Saturn’s growth pattern over the past three years. Equally strong first quarter results for 2009 indicate another record year is in the making.

Rural outsourcing, also known as onshoring or domestic outsourcing, is a growing trend in the Information Technology industry. Tools and infrastructure for working over distance have improved dramatically in recent years, making the location of IT workers less relevant. Lower costs, better communications and ease of management have made rural outsourcing an attractive alternative over metro and offshore services.

Read more news in prweb.com