Archive for February, 2012

IT Outsourcing will Create New Revenue Streams for Service Providers

Tuesday, February 28th, 2012

Outsourcing is recognised as an effective way to curb costs. Rather than expend time, energy and money on getting your own IT infrastructure set up, why not get someone else to do it? This is already being experienced in the ICT industry, through the use of hosting, cloud and managed services. Egypt, South Africa, Kenya, Nigeria, Morocco, Senegal, and Mauritius, are considered to be primary outsourcing destinations in Africa, and have attracted foreign direct investments from countries like India, UK and the Netherlands. South Africa is leading the outsourcing market across areas such as customer support, financial services, legal administration and other back-office services.

If tying your own shoe laces disrupts your life, there is someone out there that will do it on your behalf – at a price. In the enterprise IT outsourcing market, technology vendors, network operators and system integrators are major service providers in South Africa. Business and knowledge process outsourcing services provide a new means of IT outsourcing, by leveraging emerging technologies such as cloud computing, data centres, and Software as a Service (SaaS). Outsourcing, will not only facilitate the improvement of customer services, through deploying cost-effective IT platforms, such as Infrastructure as a Service (IaaS) and SaaS, but also reduce Capital Expenditure (CAPEX) and Operational Expenditure (OPEX), particularly for service providers with international footprints.

IT and customer support services are fast becoming the most outsourced services by enterprises. These two service categories require outsourcers to procure necessary hardware and software to support the provision of IT systems and contact centres. IT and customer support outsourcing services provide an opportunity for leading telecommunication equipment vendors, such as Ericsson, Nokia-Siemens Networks, Alcatel-lucent, Huawei Technologies, ZTE Corporation, and network operators such as Vodacom, MTN, Airtel and Orange, to provide network infrastructure, hardware, software and devices required in the outsourced enterprise IT systems. These companies have one thing in common – they specialise in infrastructure development and enterprise communication networking services, such as cloud computing and managed services.

Tying shoe laces may seem like an easy task, but what if you needed the knot to look like a butterfly, with one wing slightly larger than the other? Firms that require specialised services have a higher propensity to outsource. IT outsourcing is becoming popular as new emerging trends such as unified communications, managed services, cloud computing (i.e. hosted data centres) and enterprise mobile applications arise as new solutions to assist enterprises in reducing OPEX. Nevertheless, the deployment of such solutions requires significant investments in network infrastructure in order to build new systems and/or integrate them into existing IT architecture of enterprises. IT outsourcing (i.e. managed/hosted IT services) is, therefore, a unique and innovative area to generate new revenue streams for channel partners, including internet service providers (ISPs), system integrators and network operators.

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Offshore Outsourcing Can Boost Agility

Tuesday, February 28th, 2012

Most corporate leaders decide to offshore IT services to cut costs — that’s as true today as it was at the dawn of the offshoring era. But labor arbitrage fades, according to an ongoing offshore outsourcing study researchers are conducting at Duke University. In fact, it disappears after three years.

And when it comes to other oft-cited drivers for shipping IT functions overseas, the benefits may be diminishing as well, researchers at the Center for International Business Education (CIBER) and the International Offshoring Research Network’s (ORN) Project at Duke’s Fuqua School of Business have found.

While 53 percent of corporate leaders surveyed by ORN in 2010 reported that offshoring provided them with better access to qualified personnel, just 40 percent said the same in 2011. And the 46 percent of executives who said offshoring resulted in improved service quality in 2010 decreased to 41 percent last year.

Read More:

http://www.cio.com/article/700906/Offshore_Outsourcing_Can_

Boost_Agility

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Has IT outsourcing created the UK skills shortfall?

Tuesday, February 28th, 2012

A colleague interviewed John Harris, chairman of IT user group The Corporate IT Forum and chief architect and vice president of global IT strategy at GlaxoSmithKline, recently and got his views of the UK skills shortage.

He, like many others, is of the opinion that years of outsourcing commodity IT skills is contributing to a lack of grass-roots IT talent today, because the talent pipeline is not being fed at the bottom end.
"While outsourcing did bring value, people moved jobs that should not have been moved. We outsourced our skills pipeline," he said. Young people were not being given a chance to come into the industry.

"Yes, it may be more economical to outsource to India, but such a job may be the type of work that gives an apprentice a real grounding [in IT]," he said.

There has been loads in the press lately about the IT skills gap and genuine attempts to address the shortage of IT students that are capable of breaking into the corporate IT sector.

Outsourcing service providers themselves are getting involved in a Ministry of Justice and Business in the Community backed the project which aims to help students further their careers in IT. Nine of the biggest UK IT service providers have agreed to a charter for employing IT apprentices. These are Accenture, Atos, Capgemini, CSC, Fujitsu, HP, Logica, Siemens and Steria have all signed up to the charter.

Azim Premji, chairman at Indian IT outsourcing firm, has even offered to take UK students to India for 12 months to be trained up in software, IT and engineering.

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Apple: Why Won’t They Pay Dividends?

Tuesday, February 28th, 2012

Apple Inc. (NASDAQ: AAPL), the iconic technological behemoth and wildly successful iPad and iPhone maker, again refrained from announcing that the company will start paying dividends, despite a huge amount of cash on its balance sheet and clamor from some stockholders.

International Business Times spoke with three experts about Apple’s recalcitrance to pay out dividends.

Michael Yoshikami is chief executive and chairman of Destination Wealth Management in Walnut Creek, Calif.

Michael McGervey is president of McGervey Wealth Management in North Canton, Ohio.

Anna N. Danielova, Ph. D., is assistant professor of finance at the DeGroote School of Business in Hamilton, Ont.

IB TIMES: Is it unusual that Apple pays no dividends?

DANIELOVA: No, about 70 percent of firms or more do not pay dividends.
Among those are high-growth companies which choose not to pay dividends for the following reasons: they need to finance their growth and internally-generated earnings are cheaper, so all generated earnings are reinvested back; and their shares are presumably mostly held by investors who prefer capital gains over dividends.

Source: http://www.ibtimes.com/articles/305157/20120227/apple-dividends-tim-cook-china-google-microsoft.htm

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Apple Shares Rise Despite Proview’s iPad Trademark Suit

Monday, February 27th, 2012

Shares of Apple rose more than $6 Friday to $522.41 despite a lawsuit by a Chinese company alleging it had used "false statements" to obtain rights to the name iPad.

Shares of the Cupertino, Calif. company were only slightly below their record of $526.29 set Feb. 15.

Reports emerged Apple was sued last week by Proview International Holdings of Shenzen in a bid to enjoin it from using iPad on its products. Proview agreed in 2009 to sell the name to Apple for the equivalent of $55,000, the filing in Superior Court in Santa Clara County said.

Proview asserted statements by Apple were "untrue." As a result, the Chinese company demanded unspecified compensation.

Apple had no comment. The company sold 15.4 million iPads in the last quarter alone, bringing the cumulative total to 55 million.

This week, a Shenzen court threw out a Proview suit to enjoin iPad sales in China. The company won a suit in Guangdong that stopped Apple from transferring the Chinese trademark to itself, the Financial Times reported.

The Hong Kong Stock Exchange lists Proview as "an investment holding company" with subsidiaries involved in liquid crystal displays, thin-film transistors, cathode-ray tube monitors and computer monitors.

Proview didn’t buy a booth or participate officially in the International Consumer Electronics Show in Las Vegas last month, unlike scores of companies from Taiwan and China, including Hong Kong.

Technically, Proview asserted it sold its trademark to an Apple subsidiary dubbed IP Application Development Ltd.

Source: http://www.ibtimes.com/articles/304315/20120224/apple-ipad-proview-sue-court-trademark-intellectual.htm

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Google Do Not Track Privacy Feature Arriving on Chrome

Friday, February 24th, 2012

Google plans to introduce ‘Do Not Track’ feature in its Chrome web browser by the end of this year. With the Do Not Track facility, users can avoid getting under scrutiny of advertisers, going online through Google’s Chrome.

Chrome manages to preserve user anonymity by modifying communication between browsers and servers. This facility has been demonstrated previously in many web browsing programs.

Do Not Track is a user selective feature. Browser requires demand from users to activate the facility. Mozilla had already integrated this feature into its web browser, FireFox. Microsoft and Apple featured Do Not Track in their browsers, which are Internet Explorer and Safari 5.1 respectively.

Google is now tracking the footprints of its predecessors in this field. In a statement Google’s representative said, “We plan to implement Do Not Track across our browser and advertising systems by the end of the year.”

But we are wondering, what might have delayed Google to track it down onto its browser? It might be because Do Not Track wasn’t a mature idea, as far as Google is concerned.

Of course it’s interesting, but seems to be too vague for Google. Moreover, it needs consent from websites to provide this feature. Google, Microsoft, Yahoo, AOL, and other Internet giants are in for Do Not Track, which underlines its importance.

Source: http://www.gizmocrave.com/11090-google-do-not-track-privacy-feature-arriving-on-chrome/

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Moving apps to the cloud: Why, when and how

Thursday, February 23rd, 2012

You’ve known this was coming. It started with that small voice in the back of your mind that said “maybe it’s time to start putting some apps in the cloud.” Now it’s an actual question from the CTO: “why aren’t we using the cloud yet?” So, it’s time.

But before you make your move, make sure you’ve really thought through all of the key considerations: What’s in it for your business? Which apps should you migrate first? How can you maximize the advantages and minimize the risks and costs? How will your development teams be affected? How can you make this easier on them? In short, how can you transform this initiative from a source of heartburn into a source of new business advantages? Here is some practical advice for moving apps to the cloud.

The move to the cloud is a business decision
Let’s start by being clear about the answers to two key questions: What exactly does it mean to migrate an app to the cloud, and why would a business want to do it?

Moving an application to the cloud simply means running the app “somewhere” on the internet other than on your own servers. And of course, there are multiple options. You could build your app using your own platform and deploy the entire app-platform bundle to a cloud infrastructure (Infrastructure as a Service, or IaaS). You could create your app using a particular middleware platform and deploy it to a cloud service that supports the same platform (Platform as a Service, or PaaS). Or, if you found an existing cloud-based application that provides the functionality you needed, you could simply use it on a subscription or pay-as-you-go basis (Software as a Service, or SaaS).

These options represent a spectrum of benefits and trade-offs. At the IaaS end, you have maximum flexibility, but developers have a lot of work to do. At the SaaS end, there is less flexibility, but developers have minimal work to do. Most businesses need and want something in the middle, which is why the PaaS model is rapidly gaining momentum.

Source: http://www.zdnet.com/news/moving-apps-to-the-cloud-why-when-and-how/6344653?tag=content;search-results-river

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Apple to Up IT Outsourcing to India Four-fold

Wednesday, February 22nd, 2012

Apple seems to be extending their partnership to two main IT companies in India. We hear Apple chief information officer (CIO) Niall O’Connor had talks with Infosys and Wipro, in upping the outsourcing of software development, testing and internal IT operations in the country.

Both the companies are trying to ink a contract with the Cupertino based company as they consider it “as a badge of honor”. In addition, the companies recognize the importance of a secure source of income that will get through Apple, by satisfying the software design standards.

Currently, Apple is reported as having about a $100 million work deal with the Indian companies. They want to amplify the current money invested in outsourcing to India four-fold.

Back in 2006, the company had started a development center in Bangalore, which was shut quickly after few months. Meanwhile, the news of an IT sector slow down in the West is also considered as a reason for increasing the ties with Indian companies.

Compared with the outsourcing deals with General Electric (GE), the companies will desire Apple due to the high profitability and quality of work. Other than GE, Microsoft, Oracle, Dell, HP, AT&T wireless, Rand McNally and many more now have outsourcing deals with Indian companies.

Additionally, Apple maintains good relationships with the companies they are partnered with. One of the best examples is the Foxconn, where the Cupertino based company has investigated and provided support to perk up the working conditions at the plants that assemble their products. The companies, thereby, will be more interested in entering into outsourcing deals with Apple in the coming days. What do you think of Apple’s latest plans?

Source: http://www.gizmocrave.com/10990-apple-to-up-it-outsourcing-to-india-four-fold/

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IT Outsourcing: Will it Continue to Grow in 2012?

Tuesday, February 21st, 2012

Overall demand for IT services will continue to grow in 2012 as productivity efficiencies from IT are now a well-accepted reality, according to a senior executive of a major IT service provider.

In an exclusive interview with the International Business Times, Murali Gopalan, who is the CIO of UST Global, a U.S.-based company with development centers across India, says that new investment projects in IT might suffer in the short and medium term due to the restraint in capital investments by companies.

However, overall investments in IT projects for increasing efficiency will surely continue to grow worldwide. This will be augmented by "lights on" IT engagements that ensure operational efficiencies of companies.

How do you visualize 2012 in respect to demand for IT outsourcing? Where do you see the major players in IT outsourcing in India focusing on this year?

There has been a lot of discussion in the IT industry, especially in India, about IT firms "moving up the value chain". Over these past few years, they have indeed been delivering higher value to customers especially in areas like (a) business intelligence and analytics, (b) innovations in mobility, (c) innovations with dedicated "apps", and (d) using cloud-based services for better ROI etc. In 2012, major players will increase focus on these higher value-added services, while the delivery of "lights on" services will continue to grow as usual.

Source: http://www.ibtimes.com/articles/296359/20120210/outsourcing-will-continue-grow-2012-exclusive.htm

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Node.js: Doing Rather Well, Actually

Monday, February 20th, 2012

A mere three years into its existence on our good green Earth, the JavaScript-based Node.js software system appears to be gaining enviable traction as an application development platform. Most notably, the software is leading developers to extend their use of JavaScript outside of the browser and into the server space.

Constructed using the Google Chrome V7 JavaScript engine, Node.js has been endorsed by both Microsoft and Yahoo!, who have backed its suitability for building data-intensive real-time apps that need to run across distributed devices. With an event-driven non-blocking I/O model, Node.js was conceived and built by Joyent developer Ryan Dahl, who sees the software supplanting Java’s position in the server space.

Backing Node.js as a suitable development language for use on the Azure cloud platform, Microsoft VP Scott Guthrie said that we are going to see all of the features of Azure having integrated Node.js libraries — and that this is going to happen very soon.

In November last year, Yahoo! showed its support for the technology by introducing cocktails — a mix of HTML5, Node.JS, CSS3, and JavaScript. At the time of launch the company stated, "We are announcing two Cocktails: Yahoo! Mojito, an environment-agnostic JavaScript web application framework, and Yahoo! Manhattan, a hosted platform for Mojito-based applications."

Yahoo! says that Mojito is an "evolution of existing web standards" and web technology. It builds upon standards where those exist as well as on proven technologies, and YUI for cocktails provides the necessary environment abstraction, scoping, packaging, etc. that allows Mojito-based applications to run equally well in a web browser, in a hybrid native/web runtime or in a server using Node.JS.

Source: http://drdobbs.com/jvm/232600655

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