Rise of cloud computing to create work for IT outsourcing providers

October 7, 2010

Posted by Louise Tate

The number of businesses adopting cloud-based security solutions will grow as they look to cut IT costs, it has been claimed.

Andy Wright, sales director at nonstopIT, said more companies will embrace the IT delivery model as its benefits become apparent.

"More and more people, as they’re slimming down their IT infrastructure and IT support departments, they’re going to want to put more in the cloud," Mr Wright said.

He went on to say that the attitude of businesses towards the security of cloud computing is "softening" and that they are "starting to trust it more".

This change of opinion has been driven by the need to cut costs, according to Mr Wright, as a cloud-based solution "doesn’t need such intensive resource in-house to manage it".

Ease of deployment and external system management through an IT outsourcing provider are two of the principle benefits of cloud computing, he said.

Cloud computing services consumed through external service providers were estimated to account for 10.2 per cent of IT spending during the second quarter of 2010, according to Gartner. ADNFCR-8000229-ID-800101588-ADNFCR

Source: http://www.ihotdesk.com/article/800101588/Rise-of-cloud-computing-to-create-work-for-IT-outsourcing-providers

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Tata Consultancy CEO: No Impact From Europe Crisis On Clients Yet

July 3, 2010

MUMBAI (Dow Jones)–Tata Consultancy Services Ltd. (532540.BY)), India’s largest software exporter by sales, hasn’t yet seen any impact on technology spending by its clients in Europe because of the debt crisis in the region, said its chief executive Friday.

"Overall, from an economy overview, we have not seen any impact of the current European situation on any of our clients," N. Chandrasekaran told reporters on the sidelines of the company’s annual shareholders’ meeting.

However, Chandrasekaran said he still expects the company’s revenue to be hurt by the decline of the euro and the British pound against the U.S. dollar.

"The currency has really weakened… those two currencies (the pound and the euro)… and that will definitely have its impact," Chandrasekaran said.

Continental Europe and the U.K. contributed 25.2% of Tata Consultancy’s INR77.37 billion revenue in the quarter ended March 31.

Europe’s troubles come just as India’s information technology outsourcing industry was starting to find its feet again after the global credit crunch led key clients in the U.S. and Europe–the two biggest markets–to last year cancel or postpone projects and seek lower rates for products and services.

By Kenan Machado, Dow Jones Newswires; 91-9845104173; rumman.ahmed@dowjones.com

Source: http://online.wsj.com/

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Tata Consultancy Services ranked 1 Service Provider in the Nordic Region

May 12, 2010
Tata Consultancy Services , a leading global IT services, business solutions and outsourcing firm, has been ranked as the number one player in the Nordic region on major key performance indicators surveyed in EquaTerra’s Nordics Service Provider Performance Study 2010.
 
The report is an annual outsourcing vendor performance survey completed by CIOs and CxOs representing the top 220 Nordic companies in terms of their IT spend and ranked 16 leading service providers in the region based on client feedback. “This report is one of the most comprehensive independent surveys of IT decision makers in the Nordic region and therefore of high relevance to the market. We are honoured by the recognition accorded to us by our clients and are committed to continuing working with them as their partner of choice.” said Amit Bajaj, Director of the Nordic and Baltic region at TCS.
 
Tata Consultancy Services had the highest industry score on all major Key Performance Indicators including Customer Satisfaction, Quality, Flexibility, Innovation, Risk and Transition Management. The company attained a general satisfaction rate of 85 percent. (A significant 11 percentage points higher than the number two player as well as the average industry level satisfaction which stood at 66%). In terms of meeting expectations (delivering on what was promised) TCS ranked first again at 83% (versus the second ranked at 71% and industry average of 64%) demonstrating the company’s leadership in bringing “certainty” of results to its clients.
 
“This is a very strong performance by TCS. The company achieved excellent results in all KPIs and the highest score ever in the recommendation index (93%) – the KPI that measures how likely the respondents are to recommend vendors to their peers,” said Jef Loos, Director at EquaTerra.
 
TCS has been operating in the Nordic region for over 20 years and has over 3000 consultants servicing more than 75 Nordic clients, including leading companies such as ABB. “After rigorous evaluation, early this year we selected TCS as our outsourcing partner for SAP, Microsoft and Legacy platforms in Northern Europe. TCS was able to successfully complete the transition from outgoing vendor in a very short period of 8 weeks with zero disruption to business activities. By using TCS’ industrialized service delivery approach we are able to improve our service levels to business while reducing cost and increasing the flexibility to meet changing business demands,” says Jens Nielsen, CIO at ABB, responsible for Northern Europe and Central Asia. “Most importantly, having TCS as a partner we trust them to take complete accountability of managing our IT landscape allowing me and my team to focus our efforts in partnering better with business”.

Source: http://www.indiainfoline.com

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Wipro sees big potential in France

May 3, 2010
Indian IT services provider Wipro said it is keen to expand its footprint in France as the country offers huge potential for growth and has stepped up its investment in the region.

We invested in a senior leadership team. We are seeing excellent progress and we are extremely confident of our future in France," Wipro CFO Manish Dugar said in a statement here.

Wipro believes that sales opportunities are huge in France for an IT outsourcing company, it said.

The French government has undertaken series of measures in recent years to make it easier and more profitable to do business in France. These far-reaching reforms have changed the equation for existing companies and new investors.

"It is a large under-penetrated market for offerings that take advantage of the global delivery model. But more critically, some of the world’s biggest and best corporations represent France. And French companies are becoming more and more international and global," Dugar said.

Last week, French Minister for the Economy, Industry and Employment, Christine Lagarde and Michel Mercier, the Minister for Rural and Regional Development, presented the 2009 report on job-creating foreign investment in France.

"Against the backdrop of a worldwide downturn in foreign direct investment flows, the IFA and French regional development agencies recorded 639 job-creating foreign investment projects in 2009, an increase on the figure in 2007 (624), and nearly as many as in 2008 (641). The results for 2009 are the fourth-best in the last 15 years," it said.

These investments will enable 29,889 jobs to be created or maintained (versus 31,932 jobs in 2008), which is broadly in line with the annual average since 2000 (30,400).

Source: http://www.business-standard.com

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