Monthly Archives: January 2012

IT outsourcing industry continues to grow

The number of global IT outsourcing deals agreed in the fourth quarter of 2011 grew by three per cent on same period the previous year.

According to the latest fourth quarter Global Sourcing Market Data and Insights report, some $95 billion (approx £60.95 billion) was spent on outsourcing IT operations making it the highest level since 2005. The 870 deals agreed also makes it the busiest period on record.

Outsourcing spend in the Europe, Middle East and Africa zone (EMEA) zone grew sharpest of all, accounting for $55.30 billion (£35.48 billion) of the entire world market and rising by 27 per cent compared to the same three month period in late 2010.

But the US market , standing at $31 billion (£19.1 billion), was down by 20 per cent.

“For the first time, significant outsourcing activity in EMEA was not limited to the established markets of the United Kingdom, Germany and Scandinavia, with momentum seen in France, Southern Europe and the Middle East,” the report stated.

Vineet Nayar, vice chairman of HCL Technologies, said that there are roughly $47 billion (£30 billion) worth of IT outsourcing contracts up for renewal.

"If 30 per cent of this goes for churn, the market opportunity is at least $15 billion,” he added.

Read More:

http://www.ihotdesk.com/article/801275005/IT-outsourcing-industry-continues-to-grow

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Global IT outsourcing up 3%, Europe jumps 27%

The impressive client wins by the top Indian IT (information technology) companies and their impressive revenue growth in the quarter ending December 2011 is perfectly in sync with the growth in the global outsourcing market.

According to the latest fourth quarter Global Sourcing Market Data and Insights disclosed in TPI Index, the total contract value (TCV) of IT outsourcing deals in 2011 at $95 billion was 3 per cent higher than 2010. TPI is a global IT sourcing advisory firm that tracks larger IT deals worldwide. 

At this level of annual TCV of $95 billion is also the highest since 2005 and the total number of deals at 870 is also an all-time record, TPI Index said. The TPI Index data also showed a healthy growth in the global outsourcing market during the fourth quarter (December quarter) amid record contracting activity for the full year.

The deals in the fourth quarter, according to TPI Index, which covers commercial outsourcing contracts valued at $25 million or more, found the total contract value of $26.4 billion, 7 per cent higher than the same period a year ago.

Interestingly, an analysis of TPI Index data shows that the intensified contracting activity is the result of a decade-long rise in the smallest awards. While the numbers of mega-deals and mid-range contracts awarded each year has remained relatively stable since 2002, those valued at $100 million or less have more than tripled. In fact, the TPI data shows that in the deal size between $25 and $99 million (smaller size contracts) the number of annual deals have risen from 212 in 2002 to 663 in 2011 accounting for 76 per cent of the total 870 deals in 2011.

Read More:

http://www.deccanherald.com/content/221591/global-outsourcing-up-3-europe.html

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Outsourcing growing strongly despite poor economic conditions

It is always said that IT outsourcing does well in both depressed as well as-vibrant economic conditions. Outsourcing service providers have been as bullish as ever despite customers cutting IT budgets.

This is because outsourcing is a way of cutting fixed costs and freeing up money to invest more strategically, or perhaps just keep the savings for a rainy day. Or pay it as a bonus to a senior executive if you are a bank, probably the one that decided to outsource.

The reason I am compelled to write about this post is the latest TPI index, which monitors BPO/IT outsourcing contracts worth over €20m. The research found 2011 to have the highest total value of contracts ever in Europe – or the Europe Middle East and Africa as the region is uncomfortable known. This was €44bn.

This was heavily influence by mega-deals, which accounted for 60% of the total value. These mega-deals are those worth over €800m. But there were also 15% more contracts in total in the final quarter of 2011 compared to the same period a year ago. So outsourcing is on the up whereas economic confidence is heading in the opposite direction.

Read More:

http://www.computerweekly.com/blogs/inside-outsourcing/2012/01/outsourcing-growing-strongly-despite-poor-economic-conditions.html

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5 tips to keep IT outsourcing on track as global providers cut

Are you prepared as global IT outsourcers shrink onshore staff? These tips will help you keep projects moving as offshore IT service provides cut back on the on-site staff that used to work as liaisons between customer and provider.

If you’ve been sending IT work offshore for a while, chances are you’ve noticed a trend — fewer and fewer on-site resources provided by the outsourcer to manage the work. While providers of offshore IT services — both Indian vendors and their U.S.-based counterparts — once frontloaded their IT services projects and relationships with onshore staff serving as liaisons between onshore client and offshore provider, most have been quietly shifting more of that work overseas.

Reducing the number of U.S.-based workers has been driven in large part by continuing pressure on IT service provider profit margins. But issues with skilled worker visas — many of the onshore roles are filled by outsourcing staff with H-1B or L-1 visas — are also being blamed, as offshore outsourcing providers point to increased fees, rejection rate, and processing delays accompanying these visa applications today.

Read More:

http://www.itworld.com/it-managementstrategy/241681/5-tips-keep-it-outsourcing-track-global-providers-cut

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Smaller Is Better for Outsourcing Market

Since the peak of the financial crisis, when companies put many projects on hold, they have apparently found smaller to be better. The past year was the busiest for outsourcing service providers, with 870 contracts awarded in 2011. Just over 75% of those contracts were between $25 million and $99 million, according to Information Services Group (ISG).

The outsourcing data and analysis firm included only deals worth at least $25 million in its latest tally, released on Wednesday. But its analysts have found that projects on an even smaller scale are getting more prevalent as well. “Small contracts worth less than $1 million have really taken off,” says John Keppel, president of research and managed services and chief marketing officer of ISG.

The trend toward smaller contracts will likely continue, particularly in the United States, where businesses have long been accustomed to using outside service providers. ISG believes the shift is a sign of a mature market, while other regions newer to outsourcing are still making larger deals. The smaller contracts have been high enough in volume to also keep the total worth of contracts relatively high. In 2011, total contract value (which covers the life of the contracts) of the overall outsourcing market was $95 billion, a 3% increase over 2010. ISG gave the industry an optimistic future, believing outsourcing activity will  increase by 5% to 7% this year.

Read More:

http://www3.cfo.com/article/2012/1/supply-chain_outsourcing-smaller-contracts-bpo

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Even Woz Thinks the Android Bests the iPhone

Apple CEO Steve Jobs hated the Android smartphone operating system so much that he vowed he would spend his last dying breath and every penny Apple had in the bank trying to destroy it. Android, created by Google, entered the market after Apple but soon gained greater market share. A lot of Apple fans dismiss Android as a ripoff of Apple’s ideas, and a crappy one at that.

But oddly enough, Steve Wozniak, who co-founded Apple with Jobs in 1976, says he’s a big fan of Android phones. Woz says he still thinks Apple’s iPhone is the best overall smartphone, but he says there are ways in which Android has leapt ahead of Apple.

“My primary phone is the iPhone,” Woz says. “I love the beauty of it. But I wish it did all the things my Android does, I really do.”

Woz says voice commands work better on Android. Android’s built-in navigation system, where the phone acts like a GPS system, is another advantage, he says.

Android phones aren’t as simple to use as the iPhone, but they’re not that much more complicated, and “if you’re willing to do the work to understand it a little bit, well I hate to say it, but there’s more available in some ways,” Woz says.

Read More:

http://www.thedailybeast.com/articles/2012/01/14/even-woz-thinks-the-android-bests-the-iphone.html

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Windows 8 Includes Tablet Hardware Requirements

Microsoft’s own batch of "Windows 8 Hardware Certification Requirements" documents, released last month, reveal that the company is providing minimum hardware requirements for x86, x64 and ARM-based tablets running the upcoming Windows 8 OS. Devices will need at least 10 GB of free space, a 1366 x 768 screen resolution, Bluetooth 4.0 + LTE, a 720p camera and more.

The requirements are part of a 293-page "Windows Hardware Certification Requirements" document for client and server systems, covering aspects ranging from pen- and touch-based digitizers to WiFi Direct to power management. Starting on page 72, Microsoft begins to set the foundation for tablets, defining bezel width, boot latency, required hardware buttons and required components.

According to the document, a Windows 8 tablet must feature a power button, a rotation lock, a Windows key button measuring at least 10.5-mm in diameter, volume up and volume down buttons. "The default orientation is in landscape mode and the Windows Key button must be on the front of the device facing the end user in the centre along the bottom bezel," Microsoft says. "If the system is a convertible, the buttons must be accessible in all configurations. For convertible systems, it is acceptable to have the button off centre along the bottom bezel when the convertible is in its tablet mode. "

Read More:

http://www.tomshardware.com/news/Windows-8-Microsoft-Tablet-x86-ARM,14504.html

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Microsoft Pitches Private Cloud To IT With System Center 2012

Microsoft’s System Center 2012 is available today as a Release Candidate, the last milestone before a final release. Along with Hyper-V and Windows Server, the upgraded System Center forms the key building blocks for Microsoft’s private cloud strategy, providing management tools for desktops, mobile devices, both physical and virtual servers, and a mix of resources across private data centers and public clouds such as Windows Azure.

While Release Candidates for some pieces of System Center 2012 were already out, as of today all eight components of the suite are free for anyone to download at this link, with final versions out in the first half of 2012. The exact release date has not been specified, but Microsoft Management & Security Division Vice President Brad Anderson tells Ars Microsoft is shooting for the early side of that time frame.

While the desktop management tools are Windows-only, Microsoft is providing cross-management tools for mobile devices, with security and configuration management covering iOS, Android, and Windows Phone. This, for example, lets IT specify how often smartphone users must change their passwords. In the data center, System Center supports both Linux and Windows servers, with Anderson telling Ars that nearly 20 percent of System Center customers use the software to manage at least some Linux servers.

System Center 2012 boosts the number of supported hypervisors. The current Virtual Machine Manager in System Center supports Hyper-V and VMware, despite VMware being Microsoft’s biggest rival in virtualization and management tools. System Center 2012 broadens the cross-platform hypervisor support by adding Citrix’s XenServer to the mix.

Read More:

http://www.wired.com/cloudline/2012/01/microsoft-pitches-private-cloud-to-it-with-system-center-2012/

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Can your IT outsourcing contract coexist with the cloud?

If your enterprise is committed to a long-term managed services or information technology outsourcing (ITO) contract, you might be looking longingly at the agility and efficiencies of cloud-based delivery models. If you’re like many enterprises that rely on managed services, you might be less than thrilled with the quality, responsiveness and flexibility you’re getting. Cloud seems like a better path, but you’re contractually obligated, potentially for several more years.

Source: http://gigaom.com/cloud/bils-it-outsourcing-contract-cloud/

Recommend Articles:

1. IT Outsourcing Companies in the USA

2. iOS Platform App Features

3. Android System Architecture

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The Rise and Fall of Programming Languages in 2011

Last year marked many changes in programming: Mobile devices emerged as a major programming platform and, at the other end of the spectrum, clouds became an established platforms for data and applications. In between, desktops and laptops gained substantially more RAM and somewhat more processor cores. Predictably, some of these changes trickled down to the choice of languages.

The well-known Tiobe Index (an index that culls frequency of mentions of languages and language products and translates it into a percentage of overall mentions) found the greatest language growth last year to be in Objective-C. I believe few readers would be surprised by this. Between the iPhone, iPod, and iPad (and to a lesser extent Macs), the demand for Objective-C skills has clearly grown.

The effect of mobile appears as well in Java, which over the last 10 years of Tiobe data has been in a steady decline. Two years ago, it began something of a comeback — I believe driven by Android development — and this year, Java stayed essentially even with last year. My belief is that Android is filling the gap caused by JVM languages, such as Scala, Groovy, and JRuby, which are drawing Java developers away from the language on desktop and server platforms.

As mobile programming takes off, it brings developers back to a lower level of programming that’s closer to the hardware. Typically, because applications on a mobile device tend to have small code bases and require specific languages to exploit every new hardware feature, scripting languages have gained little traction in this area. (Apple’s tight controls on languages and tools has also contributed to the phenomenon.) As a result, for the first time in years, possibly ever, all the primary scripting languages — Perl, Python, Ruby and PHP — declined this year. Of these, Python and Ruby’s are the most interesting.

Source: http://drdobbs.com/mobile/232400093

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