Outsourcing Times

Profits recorded point to continuing IT boom!

By Priya Venkatesh, Staff Writer

Do you know the details of the continuing IT boom in India?  Are you aware of the profit data that the pioneers in outsourcing have recorded this year? Read on to know the details!

Infosys, one of the pioneering IT giant in India has recorded a profit of 42.4% amounting to a total income of $746 Million. As per the reports from informationweek, 7700 employees have been added to the payrolls of Company this quarter. Wipro, another outsourcing giant has recorded a profit of $589 million which accounts to 46% growth in this quarter that ended on September 30 2006. The results of the last 2 quarters of the outsourcing pioneers clearly indicate an ongoing boom in the field of IT!

Read more on 'Indian IT stocks creep incredible heights amidst tight competition' in one of my previous post to know the consequences of this growth in Indian IT stocks!

IBM Calcutta increases employee strength

By Priya Venkatesh, Staff Writer

Are you into IT? Do you know the employee strength of IBM in India? As an individual one is seldom aware of the fact that IBM has 14 offices across India with over 43000 employees.

IBM has promulgated the addition of 3000 more software developers at its Calcutta development center shortly.

With the enormous increase in the employment rate in the field of IT, informationweek reports that NASSCOM expects to have 25% more growth of IT in the wake of the year 2007.

Read more on 'IBM Daksh - Marching Ahead' in one of our previous post to know how IBM has expanded its operations in India via Daksh.

Surprising trends in Outsourcing

-- By Priya Venkatesh, Staff Writer

Are you aware of the current trend in outsourcing? Do you know the current scenario with respect to the number subcontracting deals this year? IDC has come up with an interesting report on Outsourcing very recently.

The study by IDC proclaims that the core changes in the trend in outsourcing include the huge number of competitors who have entered into the outsourcing market this year! It also reports that the TCV (Total Contract Value) of the top 100 deals have drastically reduced to $67.9 billion from last year’s 70.1 billion.

Crmbuyer articulates that the number of business deals have plunged dramatically while desktop subcontracting have shown an enormous growth. With the lump sum deals weaning and With the clients’ demands on the rise, the service providers strive hard to cater to the rising demands of the customers!

Read one of my previous post on 'Indian IT stocks creep incredible heights amidst tight competition' to know the trends of Indian IT stocks this year!

Indian IT stocks creep incredible heights amidst tight competition!

-- By Priya Venkatesh, Staff Writer

Do you get involved in the stock market? Did you have a look at the results of the third quarter? Here are the details of outperforming stocks of the stock market as on date!

Share prices of the IT vendors, Wipro, Satyam, Infosys & TCS have crept incredible heights very recently! While the European and American counterparts struggle hard to sustain the high value of their stock prices & are at 100.4 & 98.3, Indian IT companies have gone up to 117 recently.

Sourcingmag.com accounts this to the gain that the companies have incurred in bagging larger contracts from overseas. Shares of CTS seem to outperform its Indian peers since the share value of the company has crept up by 50% this year.

Read one of our previous post on 'Build infrastructure to sharpen outsourcing edge, says the Indian P.M' to know more about the initiatives taken by the Indian government to encourage outsourcing!

Security Projects – The major contributor in Outsourcing!

-- By Priya Venkatesh, Staff Writer

Are you into outsourcing? Do you outsource your work overseas? Here is an piece of interesting news for you!

A recent survey by the CSI & FBI uncovered the steep increase in the sub contraction of security functions around the globe.The survey has unveiled that the rate of outsourcing of security related projects has approximately doubled when compared to the statistical data of year 2005.

It is believed that the decrease in the number of security breaches & reduction in monetary losses due to outsourcing have accounted to the results of this survey!

Read one of my previous post on 'Driving towards a highly secure IT Network' to know the security measures taken by the IT companies across the globe!

Driving towards a highly secure IT Network!

-- By Priya Venkatesh, Staff Writer

Are you afraid of the security breaches occurring in the IT network as on date? Do you have second thoughts in outsourcing your work due to this fact? Read on to know how proactive the IT industry is in enhancing the security?

You know that the first phase of security was in the form of restricting users to confidential data. The second phase involved the design of counter attacking the viruses & Trojans after they induce damage to the network!

Moving towards the third phase of security, the IT vendors have decided on integrating security features as a part of application development across the globe.

IT big shots are trying to evolve well-defined security standards & architectures that could form the basis of security in all future business critical processes across the globe!

Read more on 'Data Security Tightened in India' in one of our previous posts to know the measures taken by India to circumvent the probelm of security in outsourcing.

Pros & Cons of confined facilities at offshore

-- By Priya Venkatesh, Staff Writer

Do you know the vantages of commencing confined facilities at offshore? How does that differ from subcontracting? Read on to know these interesting details.

The pros of such confined facilities at offshore are:

• Monetary transactions of the employer can be restricted to one bank account.
• Time zones can be taken advantage of by serving local clients during the daytime and western clients during the night.
• Keeping a handful of American managers at offshore, promoting local managers & aiming at quality products can circumvent Security/privacy issues.
• Work environment at the confined facilities are way better than work environment in subcontracting firms.

Looking into the cons of the confined facilities at offshore, one is able to see the tax liabilities, which has become a matter of deep concern. ]

• With the tax rates steeply rising, employers are forced to have second thoughts regarding the commencement of confined facilities at offshore particularly in India.

Click here to read one of our previous post on 'Is Outsourcing good or evil?'

AT & T terminates customer service contracts for DSL installations

Here is a piece of breaking news from AT & T! Are you aware of the terminations of customer service contracts to other countries by AT & T? Read on to know the details.

AT & T has decided on terminating the customer service contracts for DSL installation that it had been outsourcing in the past. The company has come to a consensus with the CWA (Communication Workers of America Union) to use the personnel within the nation for the customer care service of DSL installations at home. In addition to this, the customer care executives would provide the technical details regarding email,internet and DSL related technical queries.

The employees who would be taken into will be into the rolls of AT & T by the wake of the year 2008

Click here to read more on "Threat of Outsourcing Causing Union Growth" in one of our previous posts.

IBM, EDS bag outsourced projects from Vodafone

IBM and EDS have bagged the subcontracted projects from Vodafone. The outsourced work involves back end application maturation and maintenance activities of IT network across the Globe Group.

Amidst a severe downfall of the Vodafone group in the European market very recently, the company has given emphasis to the cost curbing activities. As an initiative towards cost curbing by 30% within the next five years, Vodfone group has taken up this deal with EDS and IBM.

Read more on "Vendors watchout" to know the details on the IT and BPO projects that are outsourced by Vodafone group, UK.

Build infrastructure to sharpen outsourcing edge, says the Indian P.M.

If you reflect on the recent statements emerging from the government echelons in India, you will be convinced that outsourcing ranks pretty high on the agenda for the government.

Look at the recent statement of Prime Minister Manmohan Singh, for instance. Speaking at a conference on ''Building Infrastructure'', the Prime Minister said that the government is willing to pitch in to overcome the infrastructure deficit in India. He said that the government is finalizing a policy that will put the framework in place for a massive infrastructure improvement drive.

Quite rightly, Manmohan Singh identified the power sector as the major pitfall, and stressed the need to overcome the power crisis that is reigning in several parts of the country. India Daily quotes the P.M:

The bane of power sector seems to be the high transmission and distribution losses which account for almost 40 per cent of the electricity produced. No civilised society nor a functional commercial entity can sustain losses on such a scale.