Monthly Archives: October 2011

Outsourcing software development involves repositioning of software

Outsourcing software development involves repositioning of software development activities by a organization to third party service vendors or software program firms that may be located in offshore destinations. Outsourcing exactly the same could give the companies a opportunity to develop software program at a lower rate, employ specialized labor at a more companies decide to outsource their software development actions to offshore destinations.

The traditional method to outsourcing development projects typically follows a single strategy. The outsourcing service then works to your specifications to create the system. Here are advantages of outsourcing software program development:

1. Getting access to specialized labor at low rates

2. Cutting human resource costs

3. Cutting operational expenses

4. Reducing software project expenditure

5. Ensuring proper project management

6. Software program analysis at lower rates

7. Reducing training fees

Source: http://scottwallace2010.com/outsourcing-software-development-involves-repositioning-of-software/

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Philippines’ software development industry posts 27.60% growth

By the end of 2010, Philippines’ software development industry had posted a 27.6% growth in both export revenue and employment. The Philippine software services industry export revenues hit $725 million at the end of 2010 compared to $568 million in 2009 according to a report by Tholons, a services and investment advisory group.

Empoyment rate also went up by 27.6% in 2010 as the number of FTEs hit 44,962, up from just 35,3000 in 2008 and 2009 where remained flat. Moreover, the top in the list is still banking, financial institutions and insurance, which accounted for 17.61% of all revenues of the industry for 2010, as for the trype of foreign industries that the local software industry is servicing.

Source: http://www.philstar.com/Article.aspx?articleId=741506&publicationSubCategoryId=200

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Free delivery software to cut outsourcing costs

A recent research indicates that companies, who manage deliveries themselves in order to save money, run up millions of pounds in extra costs annually. Global Freight Solutions (GFS), parcel and carrier manager, feels that these companies’ actions are unnecessarily wasteful. Moreover, GFS claims that cost concerns have led many businesses to work with different carriers in-house.

Managing Director of GFS, Neil Cotty, said that reducing pressure on companies of all sizes is the new intiative. Subcribers are also to receive free support to set up the system from the firm. During heavy snowfall last year, well-know retailers including Tesco, Sainsbury’s and Boots were forced to suspend deliveries in Scotland for a time.

Source: http://www.retailgazette.co.uk/articles/10212-free-delivery-software-to-cut-outsourcing-costs

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HR outsourcing becomes the key trends and perspectives

As we know, efficiency, motivation and creativity of the personnel are the key competitive advantages that contribute to the success of an enterprise value enhancement strategy. Today HR management evidences that HR issues are part of the general organizational management system.

However, HR specialists are facing an issue: which problems they can resolve using their own resources and which can be outsourced. The current HR outsourcing trends are as follows:

1. Recruitment

Specialized recruiters extensively carry out labor market research. A careful analysis of society’s demographic development is required to more efficiently use human resources of older age and define the bottleneck for the younger generation.

2. Development of Personnel

The goal of development is to ensure the match of employees’ capabilities and requirements to his/her performance. Specialized providers of personnel assessment services help HR specialists reveal employees’ talents and correlate development of emplouees and a company as a whole.

3. HR Record Management and Payrool Processing

The current Russian labor legislation requires managing HR records and processing a large number of documents that record employer-employee relationships. Outsourcing of these functions has a considerable economic effect and provides extra time for HR specialists to develop a general organizational management system.

Source: http://www.themoscowtimes.com/business/business_for_business/article/hr-outsourcing-key-trends-and-perspectives/446290.html

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Points to notice while doing IT outsourcing

Today IT outsourcing has become an attractive option for modern business. However, outsourcing isn’t just a matter of signing a contract and flipping a switch. IT outsourcing providers are critical strategic vendors for a business; cultivating, assessing and refining outsourcing relationship can make the difference between outsourcing success or failure. Here are some points we have to notice:

1. How do you like your IT outsourcing deal?

Realitily, many businesses are unhappy with at least some elements or attributes of their existing outsourcing deal. After all, deals can be expensive, and business benefits of that service may not be what you’d expected. In the end, achieving satisfaction in IT outsourcing requires that both parties – the business and the provider – work together and benefit productively from their mutual relationship.

2. Aligning IT outsourcing and business needs

Nothing is more detrimental to business than an ill-conceived plan, and outsourcing initiatives are often ill-conceived. When you’re not satisfied with an IT outsourcing deal, don’t simply cancel the contract, assuming that the provider is falling short or failing to deliver on their service-level agreement. Also take the time to consider risk in your strategy.

3. IT outsourcing cost and service levels

It’s important to achieve the required level of service for the lowest possible price, as services delivered through IT outsourcing can potentially cost more than providing the same IT services in-house. An assessment of the provider’s service levels will depend on your outsourcing strategy as well as some objective metrics of the services delivered.

4. IT outsourcing contracts and relationships

There are the mechanical and human aspects of the IT outsourcing relationship. The mechanical element is the contract itself – the binding legal agreement that ties a business and provider together. There is also a very human aspect to business relationships, especially when dealing with mission-critical business allies.

5. Satisfaction with IT outsourcing providers

Successfully managing your outsourcing providers is a bit like gardening – it requires regular attention and cultivation, so it’s not a one-time effort.

Source: http://searchdatacenter.techtarget.com/tip/Getting-the-most-from-IT-outsourcing-providers

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Yantai to concentrate on animation and software outsourcing

Yantai, the city which is located on the northren coast of the Shandong province, has made great progress in its animation and software outsourcing. Moreover, today Yantai has more than 200 businesses in the software industry. And about 60% of them provide outsourcing services in digital information technologies, cartoons and video games.

Recently, Yantai plans to spend at least 30 billion yuan on a 1,110-hectare outsourcing park in order to pull in 80 thousand skilled workers from animation and software sectors. What’s more, it has spent 1 billion yuan on industrial parks. The Yantai Animation Park, as one of these parks, is considered a national animation base by the General Administration of Press and Publication.

Source: http://outsourcingworld.biz/2011/10/yantai-to-focus-on-animation-and-software-outsourcing/

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Global economic crises affect Indian outsource

India is the biggest IT outsourcing market in the world. However, the rising global economic uncertainty in key markets will hit future growth of the country’s flagship sector.

India’s largest software exporter, Tata Consultancy Services, closed down 7.71% to 1,033.50 eupees. Meanwhile, HCL Technologies slumped 8.5% to 401.15 rupees. Moreover, India’s IT and software services sector derives over 90% of its revenues from providing technology services to foreign customers, particularly in the United States and Europe. What’s more, in coming months, IT spending budgets from large global companies will shrink, forecasted by analysts.

With a depreciating Indian rupee against the US dollar, Indian majors Infosys, TCS and HCL have all shown growth in quarterly profits. But their bosses all warned that the state of the global economy will be challenging in the months ahead.

Source: http://investmoneyinindia.com/3548/indian-outsource-hit-by-global-economic-crises

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Outsourcing IT needs – key decision to maximise your business potential

Today with the development of outsourcing, outsourcing IT needs could be the key decision in helping your business maximise its potential. In the past, business owners were often under the impression that IT was so complex that they would need to employ a fulltime member of staff to look after it, however, it’s no longer a case today. A tryical small-to-mediumsized business would historically have employed a dedicated IT person, who would be responsible for looking after complex server set-ups, software updates and general day-to-day issues.

While it comes to IT providers, they should provide you with service level agreements and guaranteed response times, which means you will have the peace of mind that somebody is always available to look after you in the event that something goes wrong at any time. A wide variety of companies can outsource their IT ranging from small single sites to larger businesses. Technology is about business benefits and should be away of leveraging more business for your company, hence, make sure that your business maximises its potential.

Source: http://satellite.tmcnet.com/news/2011/10/19/5869478.htm

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Advantages that IT Outsourcing Firms bring

Today with the introduction of outsourcing, IT outsourcing firms have gained more advantages and are now operating better. Meanwhile, foreign IT companies have the opportunity to tap into the vast pool of talented workforce all for a lower price. The flexibility and productivity of outsourcing enables companies regardless of size and industries to work with different IT providers from different parts of the globe.

The three kinds of outsourcing models that companies can choose from are Fixed Cost Model, Time and Maerial Model, and Offshore Development Model. Moreover, IT outsourcing firms can bring companies many advantages:

1. By outsourcing IT services, companies gain more time to be used in improving core competencies of the business and focus on revenue generating activities.

2. Outsourcing providers from developing countries that offer IT services provide their technical expertise at lower rates as compared to domestic costs, in which way, companies can cut the expenditures on overhead and operations while increasing their return on investments or ROI.

3. Subcontracting IT services to competent IT outsourcing companies reduces development threats.

4. IT outsourcing gives companies the flexibility in the hiring process.

5. Companies can get assistance and backups anytime they need through outsourcing IT services.

Source: http://www.articles-digest.com/important-things-to-know-about-it-outsourcing-firms/

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IBM renews its strategic IT outsourcing agreement with Westpac

As one of the few information technology companies with a continuous history dating back to the 19th century, IBM is a multinational computer, technology and IT consulting corporation headquartered in Armonk, North Castle, New York, United States, which manufactures and sells computer hardware and software and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology.

Nowadays IBM has renewed its strategic information technology IT outsourcing agreement with full service bank Westpac New Zealand for a further five years. Under the five-year agreement, IBM will deply new technologies to improve customer service and sustainability, and upgrade existing systems of Westpac. Moreover, the new IBM technology enables enhanced security, data center network technology which ensures a secure and resilient network and the IBM technology supports the low risk transformation to new data centre facilities.

Source: http://itservices.cbronline.com/news/ibm-renews-its-strategic-it-outsourcing-agreement-with-westpac-171011

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