NetSuite and Wipro partner to provide cloud computing solutions

by Editor 5/4/2010 8:44:00 PM
NetSuite Inc., a vendor of cloud computing business management software suites, has entered into a strategic partnership with Wipro Technologies, the global IT services business of Wipro Limited. The partnership aims to set a new standard for cloud solutions expertise that large organizations worldwide can rely on for advancing their mission-critical business processes. The current scope of the partnership focuses on the Asia-Pacific market with future expansion planned for North America.

Echoing with current market demands, Wipro has been working on a number of strategic initiatives to empower its cloud computing capabilities. This new partnership with NetSuite is a part of a broader Wipro-level initiative to build a leadership position in providing, implementing and supporting application development on Cloud and SaaS platforms.

"As we progress in an era of virtualization, where the emphasis is on helping companies achieve the most efficient and lowest cost infrastructure, cloud computing resounds as an inevitable and highly attractive option," said Sangita Singh, Senior Vice President, Enterprise Application Services, Wipro Technologies. "This partnership, which combines Wipro's IT and business process expertise with NetSuite's deep functionality in cloud business applications, has the potential to be a game-changer for organizations that demand guaranteed customer satisfaction when it comes to mission-critical business functionality in the cloud."

"As large organizations move mission-critical business processes to the cloud, partnerships between global IT services leaders like Wipro and technology leaders such as NetSuite are essential," said Zach Nelson, NetSuite CEO. "This landmark partnership shows the unstoppable momentum of IT infrastructure moving to the cloud."
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Valueshore Spain launches initiative to provide a low-risk route to innovation through outsourcing

by Editor 2/9/2010 11:18:00 PM
Valueshore Spain, the Government-backed group of IT outsourcing consultancies, has today announced the launch of its outsourcing partner selection service which will help businesses identify the right partner to enable them to take advantage of the innovation and cost-savings available as a result of outsourcing IT projects to Spain. The service, which has been developed by a combination of both global and local IT consultancies, includes organising site visits, providing legal support and offering independent quality control during the course of the outsourcing project. 

Spain is fast becoming a leading IT outsourcing hub. Wage costs are approximately half those of the UK, and it has a number of key advantages over other nearshore and farshore destinations. The region’s geographical affinity to the UK means companies do not experience the problems of cross-timezone business, which can make communication and management impossible and travel expensive and slow. Furthermore, as EU protectionism increases outsourcing within the EU is sometimes the only option if companies do not want to contravene certain legislation in areas such as data protection.  In addition, there are no delays waiting for visas if staff need to work in both the UK and in Spain. Staff can also travel back and forth in the same day at a moments notice because of the excellent travel connections. Furthermore, the region has a long history of business and IT excellence. The top three business schools in Spain are listed as top ten worldwide by many sources. There is also no skills shortage with almost 20% of Spanish graduates aged 25-64 holding IT degrees, compared to 10% or less in any other European outsourcing destination. Furthermore, with all of these graduates having studied for their degrees using English language textbooks the standards of English are high. 

Euan Davis, principal analyst at Forrester Research, who compiled a recent report on nearshoring to Spain, said: “Our interviews when compiling the report revealed the attractiveness of Spain as a destination for IT service delivery. Firms rate Spain highly for the skill of its people, the strength of its technology infrastructure, its nearshore location, and its ability to scale. Although firms hire companies rather than countries, our interviews show that Spain offers the ingredients to make a nearshore strategy a success with competitive differentiators around its large skilled IT labour pool, industrialized software factories and domain expertise – particular in financial services, retail and utilities.”

Daniel Naoum, co-founder of Valueshore Spain, added: “If a business is outsourcing IT, it’s vital that the chosen region can offer something others cannot. There is little point outsourcing to a country with no proven track record in IT innovation.  Spain’s IT is ahead of other regions in many ways – for example government services have been online for over two years whereas most countries are only in the early stages of projects like these. On top of this, Spain isn’t saddled with legacy systems which enabled the country to leapfrog many others in Europe.  Particularly in areas such as banking – Spain is home four of the top five European banks in terms of cost income efficiency ratios and this is  largely down to our approach to IT. Spanish IT staff have a proven record in delivering innovative, successful IT projects on time and on budget. The likes of IBM, Accenture and Barclays are already taking advantage with IT hubs in the region. Our goal is to make this kind of success available to everyone.”
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IBM named leader for outsourcing innovation capabilities

by Editor 5/8/2009 4:08:00 PM
IBM has been named innovation leader for outsourcing in a recent study conducted by The Bathwick Group. The leading status of the global IT services company was acknowledged as part of the Bathwick Services Index of major outsourcing businesses in Europe, a quarterly IT Services research publication that was first released in 2008.

The Bathwick Group used online benchmarking and IT assessment activities to collect data from end users around the world, and declared IBM the leader for building innovation into existing large-scale outsourcing contracts.

Kate Hanaghan, Senior Analyst at The Bathwick Group, said: “Innovation in outsourcing is particularly crucial in this very tough economic climate as it can help the IT function to run more cost-effectively and more efficiently. Equally, we know that clients who work with IBM value being able to tap into IBM's deep R&D resources and broad industry expertise in order to experiment beyond the confines of traditional outsourcing agreements. Overall, IBM heads the services pack with an innovation strategy that is mature, well funded and very well received by its customers."

Dave Liederbach, IBM general manager, strategic outsourcing, added: “Innovation partnerships are a natural extension of outsourcing relationships, giving clients direct access to IBM's extended capabilities including research and development as well as our own transformation experience, best practices and lessons learned. Providing experts from IBM's vaunted Research arm to address strategic client challenges and deliver innovative breakthroughs extends the core value IBM delivers through IT outsourcing. IBM is uniquely positioned to deliver this kind of higher-value engagement.”

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IT jobs most suitable for offshoring – new Roland Berger study

by Editor 5/6/2009 3:34:00 PM
management consulting jobs
A third of UK jobs at risk of being sent overseas, according to a new report from strategy consulting firm Roland Berger.

Roland Berger consultants polled senior executives at 200 multinational firms based in the UK and the responses show that operating costs in the UK will prompt companies to move core functions abroad. Around 29 percent of the workforce in the companies included in the survey could be replaced by lower-cost labour by 2015. More than 50 percent of the executives polled have either begun the process or are considering to do so.

Information technology was cited by most as the most suitable function to offshore, with 69 percent of the executives saying that they are considering the move. Other than IT, jobs most likely to be offshored are in customer services (64 percent), research and development (61 percent) and sales management (59 percent).

As many as 81 percent of the executives surveyed said they planned to offshore key business areas within the next six years.

David Stern, UK managing partner at Roland Berger Strategy Consultants, says: “This trend towards offshoring is markedly different from the international outsourcing we have seen to date, with both knowledge economy jobs and core business functions now being exported to economies which are more competitive in the global environment. These are unlikely to return once the economy picks up, a trend which threatens a permanent rise in UK unemployment, leading to falling revenues and ultimately a decline in GDP.”

“The government must help UK companies and employees become more competitive in the global market place, otherwise the trickle of jobs moving offshore will become a torrent,” he added. “This will require reducing bureaucracy, enhancing the skills of the labour pool and alleviating the cost burden on business, but this will present a huge challenge in the current economic climate.”

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Accenture tops The Global Outsourcing 100 list

by Editor 4/29/2009 4:12:00 PM
IT consulting firm Accenture has been named top outsourcing provider by the International Association of Outsourcing Professionals (IAOP). The consultancy was ranked No. 1 on IAOP’s Global Outsourcing 100 list for the second consecutive year.

IAOP’s Global Outsourcing 100 list was conceived to help businesses find the most suitable service providers for their organisation using an objective set of factors. Outsourcing providers are ranked based the quality of their service judged across 18 different criteria.

IAOP chairman Michael Corbett said, “Companies around the world use IAOP’s Global Outsourcing 100 to make smarter buying decisions. We're proud of the program and very appreciative of all the great companies that put so much effort into the application and evaluation process. Accenture's No. 1 ranking is a testament not only to its outsourcing capabilities but to the way it brings leadership and a commitment to excellence to everything it does.”

“Accenture is extremely honoured to be recognized once again by the IAOP as the best outsourcing provider in the world,” said Kevin Campbell, Accenture’s group chief executive – Outsourcing. “The ranking is a reflection of the hard work and dedication of the 85,000 Accenture men and women around the world who provide outsourcing services that can help our clients improve their business performance, create new business value and innovate to stay ahead of the marketplace.”

Accenture’s services include application, infrastructure, and business process outsourcing. The company has more than 600 clients across more than 30 industries in both the public and private sector.

Find the latest Accenture jobs on our consultancy job board.

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Accenture to open a human resources academy

by Editor 10/1/2008 4:28:00 PM
Accenture is set to open a human resources academy in the Philippines. The global consulting and business process outsourcing (BPO) firm has teamed up with the Ateneo de Manila University in order to train managerial staff and improve their HR skills in the BPO industry.

The training will help Accenture in the “war for talent,” the company says, and the academy “will be a key vehicle to build the capabilities of the HR team in our local delivery centres.”

Accenture Global HR Strategy Director Rahul Varma says: “Our people are our most important asset,” adding that the company spent $800 million last year alone on training its staff worldwide.

The HR Academy will offer courses in HR training that will last 11 – 18 months. It is a joint project between Accenture, the Ateneo Center for Organization Research and Development and the People Management Association of the Philippines (PMAP). The program was launched in May with about 40 employees.

Accenture’s local arm reported earlier that the main reason why employees leave their jobs is poor management. The academy will strive to address this issue and improve the retention rates. The students will have to work for Accenture for at least a year upon graduation.

“This (HR Academy) allows us to create HR managers at scale and generate people internally instead of getting from outside the company… Our goal is to build the next-generation of people that can function in Accenture anywhere in the world,” said Verma.

Browse the latest Accenture jobs on our job board.

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IT jobs brought back to UK as offshore IT savings erode

by Editor 9/18/2008 2:41:00 PM
Six percent of organizations plan to bring offshored IT jobs back to the UK over the next 12 months, according to a recent study conducted by ReThink Recruitment.

The study also reveals that 75 percent of IT departments will not send any more IT jobs offshore in the next year and only 19 percent of them are considering further offshoring at this point.

ReThink analysts explain this by saying that the wage inflation in overseas IT centres has eroded companies' cost savings, while at the same time concerns such as data security and quality control became more important.

“For every three IT directors thinking about sending work offshore, there is one planning to repatriate jobs to the UK,” says ReThink director Michael Bennett. “That’s quite a significant number, and clearly shows that offshoring is no longer a one-way street.”

“A lot of organisations saw offshoring purely as a way to cut costs, but spiralling wage inflation in offshore locations, combined with the project management cost of co-ordinating teams across international time zones, can eat into any cost savings,” he continued.

“IT directors increasingly accept that the UK has other competitive advantages which offshore destinations do not possess. For example, it is usually much easier to resolve disputes with outsourced suppliers in the UK than in emerging markets, where legal systems can be far less effective.”

When the management of IT functions was handed over to an outsourcing partner, the risks became significantly greater, according to ReThink.

“Many of the large UK banks that have made a success of offshoring established their own operations overseas, which are directly controlled from the UK. Handing over vital IT functions to an independent third party entails significantly greater risks,” concludes Bennett.

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Ernst & Young: Europeans more open to outsourcing

by Editor 9/1/2008 3:22:00 PM
A new Ernst & Young study, completed last month, shows that 70 percent of European firms use outsourcing. An earlier research on European firms’ openness towards outsourcing, conducted by Gartner, indicated that Europeans had a strong preference for local vendors. The firms’ reluctance is partly caused by the strict labour laws in countries such as France and Germany.

Cost savings are still the main reason for outsourcing and, according to the study authors Thierry Muller and Paul Young, they are not easy to achieve. The authors said:

“In order to achieve an overall reduction in costs, employers must be able to either succesfully reallocate internally those staff whose operations have been externalised, or carry out redundancies. The options available to employers vary according to each country’s legal framework. European countries such as France and Germany have less room for maneuver than countries such as the UK, where labour laws are more liberal.”

The French and Belgians, however, are more open to outsourcing a wide range of roles, while the British tend to outsource only a few standard functions.

Only 49 percent of the respondents named cost savings and better productivity (revenue per employee) as the advantage outsourcing brings to their business. About 33 percent cited better quality through use of specialized skills as the main advantage.

The study further states: “French companies attribute less importance to cost-saving benefits, with improvements in quality and strategic organization being the key advantages identified. Belgian companies are also strong proponents of the improved quality brought by outsourcing while, in the UK, quality considerations are rated on a par with cost savings.”

To browse and apply for the latest IT consulting jobs, please visit our job board.

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IT services market to grow to $8.1 bln in India by 2011

by Editor 8/29/2008 4:27:00 PM
The IT industry sector is growing at a rapid pace in India, even if the country has not evaded consequences of the U.S. recession and dollar volatility in recent months.

The market for IT services, which totalled $4.1 billion in 2007, is expected to grow to $8.1 billion by 2011, according to a recent report conducted by Springboard Research.

The market research report, released yesterday, reveals that India is the fastest growing market in the Asia-Pacific region, with a compound annual growth rate (CAGR) of more than 18.6 percent.

Infrastructure application integration is the largest category on the Indian market and, by 2011, it is expected to cover about 21 percent of the overall IT services market in the country. "Compared to the Asia Pacific countries, enterprise IT outsourcing enjoys the highest growth momentum in India with a CAGR of 24.4% during 2007-2011 and is expected to become the second largest market opportunity in the country by 2011," said Sanchit Vir Gogia, senior research analyst for services at Springboard Research.

Enterprise application integration, the second biggest market, is expected to fall to the third place by 2011 in spite of a 19.1 percent CARG.

Infrastructure services are expected to chalk the single biggest growth on the IT services market; $4.27 percent by 2011, which will amount to 14 percent of the share of the Asia-Pacific market.

IT consulting services will grow from $0.22 in 2007 to $0.40 billion by 2011 according to the report, mainly as a result of enterprise IT outsourcing in India.

"Not only is the India IT Services market forecast to be the fastest growing in the region, the country also has a rather unique position in the worldwide outsourcing arena through a well-educated and language-proficient workforce, that sets it apart from other Asian competitors," concluded Mr. Gogia.

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IBM’s consulting and outsourcing units report strong growth

by Editor 7/24/2008 3:17:00 PM
IBM’s main global services units – consulting and outsourcing – ones that bring in more than 50 percent of the company's revenue – have reported strong growth in the second quarter. Their sales numbers rose 16 percent, to $15.2 billion, writes Information Week.

The IBM Global Technology Services outsourcing unit posted 15 percent growth, with its sales leaping to $10.1 billion, while the Global Business Services consulting unit reported 18 percent growth, with sales totalling $5.1 billion.

The value of services contracts rose 12 percent, to 14.7 billion, in Q2 and IBM’s backlog of contracts is currently worth about $117 billion, which is a billion more than in the same period last year.

See the latest job opportunities at IBM on our IT job board.

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