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Indian IT recover from the crisis

admin — Fri, 30 Oct 2009 11:48:01 +0000

The financial results of the country’s top three software exporters had already provided signs of recovery earlier this month. India’s software exports industry derives more than half of its revenues from the US.

“The IT industry has seen a better Q2 and given positive guidance for rest of the fiscal. The GDP data reinforces the optimism,” said S Gopalakrishnan, CEO of Infosys Technologies.

Meanwhile, Indian companies seeking to grow their revenues from European markets in order to offset the US slump may find the going tougher. “Europe is the second biggest market for Indian IT companies, and the UK-the biggest European market-is coming out of recession in a very sluggish manner,” said Mr Bartels.

IBM, IT outsourcing agreement with Innovation Auto Risk

admin — Tue, 14 Jul 2009 10:53:56 +0000

Yesterday, IBM signed a 10-year information technology (IT) outsourcing agreement with Innovation Auto Risk, an established leader in
the Indian market providing claims management services and other related solutions to insurers & fleet management companies.

As part of the agreement, IBM will deploy server, storage, networking and security IT infrastructure to be hosted at a data center in Delhi. IBM will provide 24×7 onsite infrastructure monitoring services from an onsite command centre.

Advantages of Outsourcing Software Development

admin — Fri, 05 Jun 2009 11:39:06 +0000

Outsourcing Software Development involves shifting of software development activities by a company to third party service vendors or software firms that may be located in offshore destinations

Advantages by Outsourcing your Software Development:
• Access to specialized labor at low rates
• Cutting human resource costs
• Cutting operational costs
• Reducing software project expenditure
• Ensuring proper project management
• Software research at lower rates
• Reducing training costs

Kearney’s 2009 Global Services Location Index

admin — Fri, 05 Jun 2009 11:33:33 +0000

India and China continue as top offshoring destinations; but Central/Eastern Europe falls while Southeast Asia and Middle East countries rise

While India, China and Malaysia retain the top three spots they’ve occupied since the inaugural GSLI in 2004, a fundamental shift in the index has taken place as once strong Central European countries have yielded ground to countries in Asia, the Middle East and North Africa.
The GSLI analyzes and ranks the top 50 countries worldwide for locating outsourcing activities, including IT services and support, contact centers and back-office support.There are 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.

Established Central European countries including Poland, the Czech Republic, Hungary and Slovakia, once among the premier offshoring destinations for Western Europe companies, have fallen significantly due to a rapid increase in costs driven by both wage inflation and currency appreciation against the dollar. Meanwhile, low-cost countries in Southeast Asia and the Middle East made significant gains this year as the quality and availability of their labor forces improved. Egypt, Jordan and Vietnam ranked in the GSLI’s top 10 for the first time ever.

Read the Highlights from this year’s GSLI and the Global Services Location Index 2009 here

Data center outsourcing increases

admin — Fri, 29 May 2009 08:27:21 +0000

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

New Challenges for India’s Outsourcing Industry

admin — Mon, 25 May 2009 11:38:27 +0000

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

Egypt, emerging offshore outsourcing center

admin — Mon, 25 May 2009 10:49:29 +0000

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 plan on Indian Outsourcing

admin — Fri, 22 May 2009 11:56:37 +0000

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

Onshoring growing trend

admin — Tue, 19 May 2009 11:35:32 +0000

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.

Offshore Software Testing Services Saves 75% Development Costs

admin — Fri, 15 May 2009 10:27:37 +0000

A study conducted by AMR Research, Boston, MA, revealed that outsourcing software testing services to offshore development centers saves companies to up to 75% in in-house costs.
“It has been observed in various software companies in this downturn that the first axe mostly felled on the IT budget affects testing systems, thus making it difficult for many IT organizations to test an application internally,” says Nandita Nityanandam, Business Development Manager, Indusa Technical Corp.
Software testing process is a vital part of SDLC (Software Development Lifecycle). A Gartner report once stated that most of the software defects found in production cost four times more compared to when fixing those defects during system testing, and and about 200 times more if the defects were identified during the definition of requirements.

About Indusa Technical Corp.
Indusa Technical Corp. (www.indusa.com) is a CMM Level 4 certified software solutions and consulting company, focused on providing cutting edge technology solutions to clients worldwide. It has extensive experience in developing and managing large IT applications in real time to enterprises worldwide. Founded in 1989, Indusa is headquartered in Illinois, US, with operations in Texas, UK and India (Ahmedabad) and has a client base that includes Fortune 500 companies, mid-size companies as well as start-ups.