Archive for January, 2008

Indian offshoring companies eyeing Europe

offshoring companiesIndian software services firms such as Infosys Technologies Ltd, Wipro Ltd and Satyam Computer Services Ltd are looking to partner with or acquire local firms in Germany in an effort to tap European market for offshore IT services which, apart from growing at a fast clip, is also emerging as a natural hedge against a slowdown in the US, which accounts for the bulk of their business.

According to software lobby group National Association of Software and Service Companies Nasscom, the US market accounted for 65 percent of the USD32 billion Rs1.27 trillion revenues Indian IT companies earned in 2006 to 07.

There is a need to have different strategy for the German market to overcome language and cultural issues, said Peter Heij, head, Continental Europe, Satyam Computer Services Ltd, which recently formed a partnership with Arvato Systems, the IT division of the Bertelsmann Group, to offer services and solutions to companies in Germany, Switzerland and Austria.

(more…)

January 23rd, 2008

IT directors must consider a range of outsourcing options

rnge of outsourcing optionsMultisourcing will continue its growth in popularity

You know the US credit crunch has started to grind into western European confidence when experts such as Duncan Aitchison, partner at outsourcing advisory specialist TPI, says next year will be sticky and uninspiring.
Aitchison advises users and vendors on a range of external service provision deals.
And he says that after many years of growth ­ particularly in the offshoring market ­ outsourcing is set for a year or two of tough deals and consolidation. IT directors, therefore, need to be prepared for the change in market conditions.

Despite the ongoing transformation, Aitchison says multisourcing will continue to grow in popularity, with users choosing a broad selection of sourcing strategies ­ including offshoring ­ for particular IT and business process needs. (more…)

January 23rd, 2008

Gartner reveals top 30 offshoring destinations

30 offshoring destinationOutsourcing You read it here first – and it turns out Duncan Aitchison was right. A few weeks ago, the partner at outsourcing advisor told The Knowledge that India was still king of the offshoring destinations, but that a bunch of other destinations were biting hard on its heels.

Now analyst Gartner has released research that comes to similar conclusions, suggesting India remains the undisputed leader in offshore services – but that countries such as China, Russia and Brazil are providing increasingly credible alternatives.

Gartner predicts offshore spending will increase by 60 per cent in Europe, and 40 per cent in the US, next year. The analyst’s top 30 locations for offshore services are: (more…)

January 23rd, 2008

Predictions for 2008 outsourcing market

Predictions for 2008 outsourcing marketWhat does 2008 have in store for the services market?

Outsourcing relationships and destinations are changing, and vendor management is as important as ever, according to new analyst reports.

Russian outsourcing provider Luxoft, said outsourcing vendor and client relationships are evolving into partnerships with clients now seeking increased value from vendors. Vendors are expected to deliver innovation and expertise to client’s business processes, Luxoft said in a report predicting outsourcing trends for 2008. (more…)

January 15th, 2008

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