Archive for the ‘Software outsourcing’ Category

Software outsourcing predictions for 2012

Friday, December 30th, 2011
softwareoutsourcing predictions for 2012

software outsourcing predictions for 2012

We have only one day left until the end of the year, and we all wonder: what changes will 2012 bring?

In this post we have gathered the most notable trends that might play an imporatnt role in 2012.

Are there opportunities that can compensate the threats that come from the overall economic situation? We tried to figure that out below. (more…)

Ideas for your Legacy Software

Friday, November 18th, 2011

obsolete software problemModern business requirements change very quickly. After a few months (rarely years) even the best software product may be referred to ‘legacy software’. So what to do next?

The key point is that every company should plan the ways software application will be maintained and upgraded even before it is released. But what to do if for some reasons you have to deal with a legacy software product that no longer meets your requirements, but can not be immediately replaced? (more…)

What makes Amazon’s cloud services so successful?

Monday, November 7th, 2011

aws_successAmazon Web Services (AWS) have become #1 area of growth for the company, as their latest report states. AWS grow even faster, than Amazon’s consumer electronics, demontrating 87% year-over-year growth and reaching $1B revenues in 2011.

Randy Bias has analyzed this success in his recent post for CloudAve.com.  He notes that AWS will be a $16B by 2016, thus becoming the biggest  infrastructure and hosting business in the world. So what are the drivers that make Amazon more successful than the other technology giants? (more…)

65% firms offshore IT jobs - SIM Survey

Wednesday, October 5th, 2011
IT outsourcing

IT outsourcing

Seems like IT offshoring has become a usual thing for the majotiry of busnesses. The annual survey of  IT budgets and technology trends by the Society of Information Management (SIM) found that 65% of companies use it for some aspects of their business. The survey covers CIOs and senior IT leaders at 275 companies mainly from the USA.

The main outsourcing destinations are: India (58% ot those who use outsourcing), China (10%), Mexico (7%), Western Europe (6%),  Eastern Europe (4%), Philippines and the Caribbean (4%), Russia and Brazil (both 3%), the survey said.

Another good news is that IT spendings are not being cut. This year 83% of respondents claim that their IT budgets were equal or greater than the preveious year, and 85% have respective plans for the next year 2012. According to the survey, cost reduction is the last among the CIOs’ priorities. The reason is simple - companies want to leverage IT to reduce overall costs, instead of cutting it to achieve relatively insignificant saving.

The top priorities for IT managers are: business agility, business process management, IT strategic planning, IT reliability and efficiency, enterprise architecture, security and revenue-generating IT innovations.

The figures provided by SIM survey once again acknowledged that IT outsourcing is a good way to cope with the challenges facing IT leaders. We believe that in the future the percentage of those who outsource will become even greater and reach 80% in the next few years.

You can learn more about other findings of SIM survey on Computerworld.

World’s IT outsourcing in Q2

Monday, July 25th, 2011

world's IT outsourcing in Q2

world's IT outsourcing in Q2

According to TPI, outsourcing marked contracted by 18% to US US$16.4 billion in the second quarter, which is 21% lower than in Q1. The main reason – decreased demand in the Americas and drop in the number of large contracts. However, current contract pipelines suggest an improvement in global TCV (total contract value) for the remainder of the year.

At the same time there was growth by 13% in Europe and by 55% in Asia Pacific. Besides, restructirings (contacts that are renewed, restructures or renegotiated) brought 30% growth compared to the same quarter one year ago.

What’s interesting, is that TCV has lost 20% compared to last year, but the total amount of contracts showed only 1% decrease. Our vision is that general number of world’s outsourcing contracts is only growing, but those contracts migrate from expensive destinations (like Canada, UK and USA) to cheaper ones (Asia, Africa nad Estern Europe). The decrease in large contracts can be explained by diversified strategy of the big players, who want to mitigate risks of contracting with unstable Third World countries and split big contracts to smaller parts to spread within various destinations. (more…)

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