Posts Tagged ‘IT outsourcing’

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5 things to avoid in IT outsourcing sales

Tuesday, December 13th, 2011

IT-sales-mistakesEnd of the year is the time for planning and concluding outsourcing contracts.

For our customers and everyone involved in IT sales we have prepared these tips that might help find a relevant outsourcer or sell IT outsourcing services more effectively.

5 Things to avoid in IT outsorcing sales (more…)

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Posted in Application development, Blog, IT services, Offshore, Organization, Outsourcing, Process | 1 Comment »

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.

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Posted in Application development, Dedicated team, Industry news, Nearshore, Offshore, Scope management, Software outsourcing | 1 Comment »

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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Posted in Application development, Industry news, Nearshore, Offshore, Outsourcing, Software outsourcing | 1 Comment »

Tech talents from non-US are leaving Silicon Valley?

Monday, June 20th, 2011

silicon valley brain drain

silicon valley brain drain

Few days ago I came across very interesting publication on USA today. It says that technical talents are leaving Silicon Valley due to strict immigration laws, high cost of leaving and appearance of better opportunities back home. The problem is so serious that even president Obama has pointed out that immigration reform is essential.

So what’s going on? There are no accurate figures, but the experts questioned by the American journalists claim that the number of foreign-born workers returning to India and China annually is in the tens of thousands. The Chinese Ministry of Education estimates the number of Chinese who returned to China last year was a record 134,800, up 25% from 108,000 in 2009. (more…)

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Posted in Uncategorized | 1 Comment »

77% clients of IT outsourcing claim to be overcharged. How to be among the happy 23%?

Monday, May 16th, 2011
IT outsourcing is about trust

IT outsourcing is about trust

Security software developer Lieberman software released an interesting research on IT outsourcing company’s client’s satisfaction. It’s not a secret that the main motive for delegating some part or even all IT tasks to an outsourcer is economy of resources, and especially - opportunities for cost reduction. And the survey showed that a surprising 77% of respondents believe that their outsourcers have made up work to earn extra money.

Only 38% respondents claimed that outsourcers had met the cost-saving projections mapped out in contracts. 27%  said the deals cost “significantly more than planned,” compared to 11% who said outsourcing actually saved more money than their companies expected. But the huge 77% distrust is really surprising.

Why could this happen? (more…)

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Posted in IT services, Industry news, Internet, Offshore, Organization | 2 Comments »

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