Category Archives: IT outsourcing

China still safe for IT outsourcing: Vendor

China is still a safe place for foreign businesses to obtain outsourced information technology labour despite growing concerns over alleged state-sponsored cyber espionage, according to one of the country’s largest technology outsourcing vendors.

Reports of cybercrime rings operations being traced back to China-based servers and accusations of intellectual property piracy has long been linked to the country.

However, the recent increase in media reports of China’s links to cyber espionage activities should not be associated with the country’s IT outsourcing industry, according to Jun Su, corporate executive VP of Pactera Technology.

In a recent interview with Computerworld, Su characterized security as a “live or die thing” for his company.

“We are a public company, if we ever got exposed to leaking IP, we are dead,” he said.

Tina Tang an analyst for research firm Gartner Inc. said outsourcing firms in China has been around for 15 years.

These companies, she said, have been following Western standards and she believes security will not be a problem.

Last October, Chinese telecom gear manufacturers Huawei Technologies and ZTE were accused by a U.S. congressional committee of having links to the Chinese government. The committee advised American businesses to purchase their networking equipment from other sources.

It’s important for firms like Pactera not to have the stigma of cyber espionage as well as any concerns among Western companies about security in China spill over their operation. Pactera relies heavily on business from the United States. As much as 43 per cent of its revenue last year can from U.S.-based companies with another 23 per cent from Europe and Japan-based customers. The company gets 70 per cent of its revenue from outsourcing.

Source: http://www.itworldcanada.com/news/china-still-safe-for-tech-outsourcing-vendor/147097

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Tips of Making Successful Domestic IT Outsourcing

Tips of Making Successful Domestic IT Outsourcing

Outsourcing has been the buzzword for almost every company. And company leaders have realized that powerful information technology is vital to them. In today’s competitive market, IT expertise acquisition is becoming more challenging. In this circumstance, domestic IT outsourcing is the best choice.

Choosing the perfect IT provider requires investment in money, time and effort. To help you make better and quicker decision, you should determine your goals and know about your IT providers prior to making your ultimate decisions. The followings are some tips of making successful domestic IT outsourcing.

+ Setting budget restriction. Surveying on the current scale of outsourcing budget so that you have a general idea on your budget restriction. What’s more, setting budge restriction can help you shield those unsuitable providers and that can save you lots of time and effort.
+ Setting outsourcing goal accordingly. Following the current trend of IT needs which including customers’ requirements. Your outsourcing goal should not only meet customers’ requirements but beyond their requirements.
+ Select the right kind of IT outsourcing. Choose the one which is beneficial to your present and future plans.
+ Research IT provider. Investigate whether your provider can deliver the talented person and quality services even though you have got referrals.

RayooTech is a professional provider of both global software and information technology service in China. Our diligent and trustful talented ensure you quality products within the given time. The mature management ability is not only the guarantee of successful project and offshore development center but also the reason why customers rely on us.

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How to Outsource Information Technology Help

Outsource Information Technology Help

When you need help, it means that you encounter something you are unable to do. Many choices are available for you and make you feel hard to choose. The same problem occurs in looking for IT help. And it might be more difficult to make decision if you don’t know the things you’d better notice

1. Avoid only looking for a permanent employee position for your IT Department. This method has been used by most companies for so many years. However, they neglect one thing that is many software developers are ambitious and ego. So they are hard to control. It is advisable to have bonus, extend their vacation days and other benefits.

2. Avoid allocating jobs to someone unprofessional. Every project needs to be completed with specific skill or experience that your company doesn’t possess which means this field is unfamiliar with you. In this case, you need to take more aspects into consideration so that you are asking for help from the right one.

3. Scheme your budget. Every company pursuit cost-effective one when outsourcing information technology help, so scheme your budget to help you find out the cost-effective possibilities.

4. Do tracking work. Tracking the things that require technologies and skills your company doesn’t possess or the things that can be done better and quicker by others so that you can decide the tasks you need to outsource.

Outsourcing to unprofessional developers won’t be able to reduce cost and save time. Instead, you may need to cost much more money to fix the bugs and lose time and opportunity. Companies who can provide responsible and trustful services would meet your requirements.

RayooTech is a provider of both global professional software and information technology service in China. We offer comprehensive services and solutions covering customer service IT life cycle including IT consulting, app development, maintenance and testing, as well as business process outsourcing service. RayooTech, with a view of establishing and innovating the first-class quality system, information security system and business management system, is the pioneer of IT service engineering management in its field.

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How to Have a Great Outsourcing Relationship

Outsourcing Relationship

Outsourcing needs to be done together with both sides. Thus, how to maintain a harmonious relationship between two companies needs to be taken into consideration during the outsourcing process. Here are some tips about how to have a great outsourcing relationship.

+ Be clear about your demands. It is essential for outsourcer to have a clear understanding on the requirements of the client. Only in this circumstance can outsourcer provide the right products to client. This will lead to long-term cooperation. Meanwhile, your clients will recommend you to other new clients.

+ Be equal. Don’t keep a slack hand on small project. Instead, it should receive as the same importance as every project. To do this can make closer between each other and build long lasting trust between the service provider and the client.

+ Be polite. When it comes to different opinion on some point, try to avoid argument which will make things worse. You need to express your advice and ideas in a courtesy and persuasive way instead of enforcing others to agree to your ideas.

+ Sign agreement. In order to avoiding more problems appear, agreements on some certain issues need to be listed and get approval.

+ Be respectful. Generally speaking, outsourcing means doing business overseas which involving different culture and belief. To take this aspect into consideration, you’d better find out a service provider who can be respectful to your culture and belief because at most of the time culture and belief are sensitive.

+ Keep in touch. To get the first hand information about your product can help you decide what you are going to do next and do some prediction. Stay informed with service provider enables client to be sure the development goes according to plan. Various modern technologies make communication easier than before which is good way to promote the relationship between the service provider and the client.

+ Language. Many of misunderstanding takes place because of language barrier. It is impossible that there’s no communication during the whole process of outsourcing. Hence, eliminating the language barrier plays an important role in outsourcing.

RayooTech is a provider of both global professional software and information technology service in China. Equipped with advanced technology and expertise, we are dedicated to service outsourcing and set an example in service outsourcing industry. RayooTech has strong ability of project management throughout business forms like project development, offshore development center and so on. The mature management ability is not only the guarantee of successful project and ODC (Offshore Development Center) but also the reason why customers rely on us. RayooTech, with a view to establishing and innovating the first-class quality system, information security system and business management system, is the pioneer of IT service engineering management in its field.

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Warum die kleinständigen Unternehmen Outsourcing braucht

In der heutigen Gesellschaft gibt das Outsourcing für Ihr Unternehmen eine Chance Gewinn zu erbringen. Es ist egal, wie groß ihr Unternehmen ist und was für ihr Unternehmen ist. Wenn sich Ihr Unternehmen nicht auf solches Geschäft spezializiert oder wenn Ihr Unternehmen nicht so großen Wert auf solches Geschäft legen will, ist das Outsourcing eine echt richtige Alternative.

Wenn ein Unternehmen auf einen wachsenden Gewinn erwartet, sollte es sich auf verschiedene Gebiete beziehen. Trotzdem müssen sich Sie vor allem für den Hauptteil oder das Kerngeschäft entscheiden. Danach könnten Sie Ihre andere solche nicht so wichtige Arbeit nach den Outsourcing-Unternehmen auslagern. Viele kleinständige Unternehmen neigen, allein mit allen ihrer Geschäfte umzugehen, damit sie Geld sparen können. Trotzdem verwenden sie zu viel Zeit. Deshalb könnten sie sich nur auf die Hauptgeschäfte konzentrieren und die anderen nicht so wichtigen Geschäfte nach anderen Unternehmen auslagern.

Um das Outsourcing erfolgreich durchzusetzen, braucht Ihr Unternehmen sich genau  über Ihr eigenes Geschäft und das Prozess zu informieren. Darüber hinaus soll Ihr Unternehmen die Zeit für Arbeitbeschreibung, Geschäftprozess und Erwartung der Leistung sparen. Es gibt keine bestimmte Regel für die Bestellung des Outsourcings. Aber viele Unternehmen möchte diese Aufgaben auslagern, die sie von den anderen am wenigsten erledigen lassen wollen.

Viele Unternehmer zögern mit dem Outsourcing, weil sie ihr Geschäft völlig in eigener Hand haben wollen. In diesem Fall können Unternehmen vor allem ihre grundlegenden Aufgaben auslagern.    

Es gibt eine große Zahl von Outsourcing-Unternehmen, die Ihr Verlangen erfüllen könnten. Sie können die Freiberufler, virtuellen Mitarbeiter oder Outsourcing-Unternehmen beschäftigen. Es ist egal, welche Sie auswählen. Nehmen Sie sich Zeit, ein bestimmtes Dokument über das Durchsetzungsprozess zu erarbeiten und Ihre Gedanken an Outsourcing-Anbieter klar liefern.

RayooTech ist ein Anbieter von globalen professionelle Software und IT-Dienstleistungen in China. Ausgestattet mit spitzender Technologie und Know-how, sind wir mit Service-Outsourcing engagiert. Außerdem geben wir für die Service-Outsourcing-Branche ein Beispiel. RayooTech hat starke Fähigkeit des Projektmanagements in der gesamten Geschäftsformulare wie Entwicklung, Offshore-Entwicklungszentrum und so weiter. Die ausgereifte Management-Fähigkeit ist nicht nur die Garantie für erfolgreiches Projekt und ODC (Offshore Development Center), sondern auch der Grund, warum sich die Kunden auf uns verlassen. Im Hinblick auf die Gründung und Innovation, das erstklassige Qualitätssicherungssystem, die Sicherheit des Informationssystem sowie das  Business-Management-System, ist RayooTech der Pionier des IT-Service- Industrie.

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Beware the major pitfalls of IT outsourcing

Globally, the IT outsourcing market has grown over the last few years as more organisations begin to entrust elements of their infrastructures to “expert” partners.

There are, of course, many cost and efficiency benefits to be realised with this model, not to mention lower risk and guaranteed service levels. But the road there isn’t always without its pitfalls. IT outsourcer Dimension Data turns a critical eye on the areas where businesses have run into trouble.

Beware a lack of strategy: It may seem obvious, but it’s important to know what you want to outsource, where and why. Organisations often understand the need to outsource, as well as the potential advantages and disadvantages, but still haven’t formulated a sound sourcing strategy that’s consistent and makes sense across their organisations.

What level of control does the business want to retain, and for which parts of its environment? How does that align with the strategic value of that service to the organisation?

Also critical is an understanding of how the internal service organisation currently supports the business, and how it would need to change to incorporate the new model.

So, a clear and detailed sourcing strategy is of the utmost importance before entering into any outsourcing arrangement. It will help the business choose the right outsourcer to complement its internal capabilities.

Ask your outsourcer: can you help us build an outsourcing strategy which considers all sourcing models — insourcing, outsourcing or multi-sourcing combining on-premise or cloud-based models — and identifies which model, or which combination, is best for our business?

Beware a hazy view of your internal costing model: Few questions can lead to an emotional discussion as quickly as who’s to pick up the bill. It’s also true in IT outsourcing. Many organisations enter into outsourcing arrangements without fully understanding how the cost will be charged back into their business.

Often, it’s IT that signs the contract, yet it’s different business units that consume the services to varying degrees.

Watch out for aggregators’ aggregator and the over-claiming outsourcer: When your business needs in-country or technology-specific capability in certain areas, it’s critical to understand your outsourcer’s level of capability in that geography or technology.

It’s a risk to outsource to an organisation that only delivers five per cent of the services and sub-contracts the rest to businesses over which you have no direct control.

Source: http://www.businessdailyafrica.com/Beware-the-major-pitfalls-of-outsourcing/-/1248928/1751074/-/qjh91k/-/index.html

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5 ways to make domestic IT outsourcing a success

Think you're ready for IT outsourcing? Here are some ways to make it a success.

As domestic IT outsourcing has grown in prominence, companies have become more strategic about who they partner with. Business leaders know that strong IT is the foundation for company infrastructure. With IT talent acquisition becoming increasingly challenging in this competitive climate, domestic IT outsourcing is a powerful tool – if companies partner with the right service provider.

You should take the time to determine your outsourcing goals and analyze the IT service provider on multiple levels to make sure they’re a match for your organizational needs. Here are some steps to follow that can help you make smarter domestic IT outsourcing decisions:

+ Involve business leaders in the sourcing strategy process. They can help refine sourcing priorities, goals and objectives.

+ Understand budget restrictions. This should be discussed with business leaders so the sourcing plan falls within a realistic budgetary scope. Consider both short-term and long-term sourcing needs and costs.

+ Determine current and future IT needs and outline outsourcing goals. This could include improved customer service or expanded website capabilities. Make sure that you implement a sourcing plan that will not just help you maintain your existing levels of service but will also allow you to make improvements and grow.

+ Select the right kind of outsourced IT. There are a variety of sourcing models, from in-house to IT augmentation to managed services. Choose the one that makes the most sense for your organization both now and based on your future needs.

+ Research service providers. Take the time to find a company that can deliver the IT talent and services you need. Partnering with the right company can help you make your outsourcing a success.

Companies that take the time to be deliberate about their IT outsourcing will end up with more consistent quality of service, more innovation and the right mix of skills and expertise.

Source: http://www.skillstorm.com/insights/it-outsourcing/5-ways-to-make-domestic-it-outsourcing-a-success/2013/04/19/

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Opinion split on whether to offshore IT to China

Relatively low costs and high levels of software skills give China immense potential when it comes to providing large businesses with IT services, but opinion is split on whether it is an option.

Computer Weekly outsourcing blog Inside Outsourcing recently polled readers on whether or not they would consider offshoring IT jobs to China. The result was very balanced – of the of 104 people who responded, 46.15% said they would not offshore to China, 41.3% said they would, and 12.5% said they had never considered it.

Chinese service providers such as Bleum and VanceInfo are currently targeting the UK market for growth. China has 350,000 computer science graduates every year, and they cost less than their equivalents in India.

Now that India is well established as a destination for IT services for multinationals, the move to China will not be as big a step.

China plans outsourcing growth
China’s government plans to increase its outsourcing sector by 30% annually to the end of 2015. The goal for China is to match India, which has become an IT services superpower in the past 15 years.

Businesses offshored work to India in the late 1990s in preparation for Y2K. The low-cost labour was considered vital as businesses took on high numbers of software engineers.

But China does not need a Y2K moment to prove that it can provide software services, because India has already done the proof of concept.

Indian IT services heavyweight Vineet Nayar, who is the outgoing CEO of India’s fourth largest outsourcing company HCL Technologies, has previously said the fact that Chinese workers cost less removes a traditional advantage of India.

In 2010 he said: "The reason business moved to India in the first place was because of economics. It’s a fool’s paradise to think that it will not grow in China [for the same reasons] – people work 18 hours at half the cost."

China’s growing skilled workforce
China has more than 350,000 computer science graduates every year and the government has chosen software development as an industry to develop.

Bleum, which is based in China but managed from the US, has the pick of graduates. It gets thousands of applicants a month and only takes on the very best.

Candidates are put through a rigorous recruitment process. They must have an IQ of 140, speak a good level of English and undergo a behavioural test. There is also a skills test, and people are chosen depending on the demand for particular skills at the time.

In 2008, IDC forecast that offshoring to China would grow 23% every year until 2013, when it would be worth $6.8bn.

Barriers to acceptance
But there are challenges. Although Bleum has set a policy that means all staff speak English, the language is not common in China.

There are major security fears for Western firms, such as organisations in the US. And intellectual property laws are not sufficient for many businesses.

China could be next IT services hotspot
Mark Lewis, head of outsourcing at law firm Berwin Leighton Paisner, said China may not compare to India now, but this will not hold it back. “China can see what India’s IT services industry is going through at the moment and can learn from the mistakes. It can then accelerate to the next phase,” he said.

Lewis believes that in a year’s time China will have “overturned India as the number one offshore IT services destination”.

He said India’s IT services industry is currently in a difficult place because companies don’t have their own products and intellectual property (IP), as they simply work on the products of other suppliers. They rely on linear growth and need to sell more and more services to make more money.

“China has a chance to accelerate through to owning IP. It already manufacturers more hardware than India, and can grow some more,” said Lewis.

A changing services landscape
Douglas Hayward, outsourcing analyst at IDC, said he is not seeing much from China in terms of providing IT services to Western companies, and many of the firms providing IT services from China are doing it through intermediaries.

“We have not yet got a company like India’s TCS to champion China," he added, "but at some point the IT services companies that supply within China will turn their attentions externally, which will be very interesting.”

Source: http://www.computerweekly.com/news/2240181952/Opinion-split-on-whether-to-offshore-IT-to-China

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IT Outsourcing: Onshore vs. Offshore vs. Hybrid Development Approach

When your organization doesn’t have adequate expertise or resources for a project, operations or certain modules for a project, then you choose another specialized organization outside your own organization to fulfill these requirements. This entire process is called outsourcing.

Outsourcing enables your organizations to achieve many business benefits like:

+ Stay focused on your core business processes
+ Increased efficiency and competiveness
+ Leverage in – house team of your company with world class expert professionals
+ Ability to scale your workforce
+ Improved risk management
+ Achieve Round – the – clock business operations
+ Cost effective and you can save big!

What to Choose Onshore or Offshore Outsourcing?

Onshore outsourcing, means outsourcing your IT project or operations to another company on same location as yours. If your project is complex and requires very high degree of coordination, then you should choose onshore outsourcing to leverage in – house team.

Having an Onshore Outsourcing Initiative?

Onshore outsourcing is better option if you want:

+ To achieve operational or development superiority
+ To gain very specific domain or technology expertise
+ No cultural or language barrier
+ To spend same or higher operational cost

Having an Offshore Outsourcing Initiative?

Offshore outsourcing, means outsourcing your IT project or operations to another company in another country. Now if you are thinking about offshore outsourcing your project or processes to other countries which can provide cheaper development and operational options.

Offshore outsourcing is better option if you:

+ Want to really cut down the cost
+ Outsourced operations are not mission critical
+ Want to utilize outsourcing services from the global leader with domain expertise i.e. IBM or Accenture
+ Have a plan for risk management
+ Have a plan for various problems due to multiple factors

For instance, an organization could find cheaper solution for their project by choosing offshore outsourcing over onshore, but couldn’t achieve expected quality and several critical functionalities on time for the project that could be achieved easily by onshore outsourcing.

Do we have any better alternatives?

Yes, there is one enhanced approach for above problems. You should choose the prospective development partner, who can provide you hybrid approach. For instance, ‘Hybrid Development Model’.

According to this development model, you will be assigned a dedicated onshore team i.e. project management to coordinate with your in -house team. They handle critical components of the project onshore and send selected components i.e. development and testing to their offshore development team.

Source: http://www.alliancetek.com/Blog/post/2013/04/12/IT-Outsourcing-Onshore-vs-Offshore-vs-Hybrid-Development-Approach.aspx

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IT Outsourcing – Five Questions You Should be Asking

it security, it trust, outsourcing

As the prevalance of IT service outsourcing rises rapidly – by 61% in just the past year in the financial sector – more businesses are becoming interested in learning about their different options in IT services, IT staffing and IT outsourcing.

Partnering with industry experts in IT has undeniable benefits; everyone from the mom-and-pop shop to a mid-sized retail establishment can enjoy:

+ reduced costs
+ lower investment in IT infrastructure and maintenance
+ IT consistency and compliance
+ freedom to allocate resources elsewhere in the company for growth and development.

Starting the conversation can be understandably confusing, there are countless services and options to choose from in the Information Technology world. To select the best options for your company’s needs, managers and CEOs must ask the right questions.

Top questions

1. What will kind of ROI can I expect to see by outsourcing IT?

Chances are, there are current extraneous and unnecessary costs within your IT sector. From your bandwidth costs to your web designer, an IT consultant can help you identify where you could be budgeting better. Choosing an expert to consult with your business and identify cost-saving streamlining opportunities at all levels of the company will increase your return on investment in IT Services.

2. What is your response time?

Having an IT service that it committed to responding to your inquiries, troubleshooting issues and emergency systems management in a rapid fashion is vital. If your systems need troubleshooting, and you have an important client visiting in an hour; trusting your IT service provider to be timely is key. This also includes access to data in real-time 24/7.  If your important work data is not always available and current, this could also result in decision makers making judgements based on old or inaccurate information.

3. Can you explain these technical terms in a way my team will understand?

Managers should also understand how the technology platform being used by the providers will operate at every level throughout their organization. Doing so will decrease the learning curve of integrating a new IT system and also increase operational efficiency.

4. How can I use your services to improve my business?

It is important for companies to understand what business process integration tools are offered by the third party providers. Many IT services providers have integration capabilities and solutions that allow for increased interoperability between departments. This, in turn, allows companies to run more efficiently and can improve ROI of investing in a quality IT service. What is vital to a company with many partners is that the integration solutions are not only accessible to you, but also to your clients.

5. How do you define visibility?

According to Logistics View Points, companies looking to partner with IT services providers should understand how the contractor defines visibility. CEOs and managers should discuss with the potential contractor how much transparency will be made available to management, the core company and other departments, and what IT information will have higher levels of data security. It is important that certain information, especially in fields like healthcare and finance, that sensitive data is protected for the peace-of-mind of you and your clients.

Source: http://info.oxford-consulting.com/blog/bid/146218/IT-Outsourcing-Five-Questions-You-Should-be-Asking

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