Posts Tagged ‘outsourcing’

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Market shifting to smaller IT outsourcing deals

Sunday, February 5th, 2012

The year 2011 saw a record global information technology outsourcing contracts. A total of 870 deals, above the average of the five prior years of 690, were awarded to global companies, including Indian services providers such as Tata Consultancy Services, Infosys, Wipro and HCL Technologies. The increase was mainly due to tripling in number of deals that were less than $100 million, according to a report.

The total contact value (TCV) or the global outsourcing deals reached $95 billion, an increase of 3 per cent over the prior year, and the highest annual result since 2005, says TPI Index by the Information Services Group of the US.

SHIFT TO SMALLER CONTRACTS

The report found that when compared to last year there was a broad market shift towards smaller contracts of $25 million to $99 million band. On the other hand, it was flat in both $100-999 million and over $1 billion deal range. In fact, the number of smaller deals doubled the five years it has been a flat scenario in the mid-range.

Deals of over $1 billion have been gradually coming down, from 16 in 2002 to 10 in 2011, the report said.

EMEA

Boosted by mega-deals of around $1 billion in value, the Europe, Middle East and Africa (EMEA) region recorded the best performance among global regions with a 27 per cent increase in deal value to a record $55 billion. In other words, over half of total global outsourcing deals came from this region.

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

Read More:

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2857901.ece?homepage=true&ref=wl_home

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Outsourcing deal size in long term decline

Friday, February 3rd, 2012

Outsourcing is set to continue its decade-long decline in deal size,according to an analysis of last year’s activity despite the numbers of mega deals and mid-range contracts remaining relatively stable since 2002

Those valued at $100 million (£63 million) or less have more than tripled, according quarterly data from outsourcing consultancy Information Services Group (formerly TPI).

The shift toward smaller IT services deals has been happening for the past several years, with sub-$100 million deals holding steady at around 70 percent of contracting activity since 2009, according to ISG. While IT contracting activity in 2011 increased by 8 percent over last year and is up 86 percent since 2005, total contract values declined slightly year-over-year in the fourth quarter, and the full-year total of $66 billion represented a 6 percent decline over 2010.

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http://www.cfoworld.co.uk/news/change-management/3334045/outsourcing-deal-size-in-long-term-decline/

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Ciklum Presents Forecasts for the 2012 European IT Outsourcing Market

Friday, February 3rd, 2012

Ciklum, a Danish innovative IT outsourcing company specializing in nearshore software development in Eastern Europe, presents a general review of the most thought-provoking predictions for the European IT Outsourcing Industry in 2012.

The year 2011 has seen both an extensive use of ITO services in traditional niches such as IT and Telecom, and a rapid penetration of ITO into the innovative lucrative niches such as digital media, mobile computing, online gaming and others.

While it is yet too early to make any forecasts for the 2012 European ITO market volume, increase or decrease in outsourcing activity and the overall IT spending, it is still possible to identify some of the trends that will most likely be ruling the market throughout this year:

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http://www.pr.com/press-release/387497

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IT outsourcing deals worth $1 bn in limbo

Friday, February 3rd, 2012

The fate of over a billion dollars worth of information technology (IT) outsourcing contracts is in a limbo after on Thursday’s Supreme Court verdict cancelling 122 licences of telecom firms. For, the order comes at a time when both Indian and multi-national IT firms like Wipro, Tech Mahindra and IBM, besides business process firms such as Firstsource, Intelenet and Aegis, have signed multi-million dollar deals with telecom firms including Uninor, Etisalat DB, Videocon and Idea.

For instance, Wipro had signed an estimated $500-600 million outsourcing deal with Uninor in 2009. Similarly, Tech Mahindra had signed an outsourcing deal from Etisalat, with a revenue estimate of $400-500 million. MNC firm IBM, which has a $1 billion outsourcing deal with Bharti-Airtel, had also bagged a $200-million deal from Videocon-led Datacom Solutions.

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http://business-standard.com/india/news/it-outsourcing-deals-worth-1-bn-in-limbo/463598/

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IT outsourcing industry continues to grow

Thursday, January 26th, 2012

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.

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

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Global IT outsourcing up 3%, Europe jumps 27%

Thursday, January 26th, 2012

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.

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

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Outsourcing growing strongly despite poor economic conditions

Thursday, January 26th, 2012

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

Thursday, January 19th, 2012

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.

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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

Thursday, January 19th, 2012

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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Windows 8 Includes Tablet Hardware Requirements

Wednesday, January 18th, 2012

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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