Focus on core business and cost savings main drivers of IT outsourcing

October 31, 2009

The ability to focus on core business and cost savings are the primary reasons for IT outsourcing according to a new survey by Irish-owned Hibernia Evros Technology Group. Half (51%) of the companies surveyed were Irish small and medium sized enterprises (SMEs) employing between 1-250 people. The results of the study were revealed at the announcement by HiberniaEvros of a new infrastructure outsourcing service for SMEs called OmniSource.

63% listed ‘focus on core business’ in the top two reasons for outsourcing. Cost saving was the second most popular reason, mentioned in their top two choices by 51%. ‘Releasing internal IT staff for more strategic work’ was highlighted by almost half (47%).*

"Irish firms have an increasingly sophisticated approach to outsourcing," commented John Kennedy, marketing director, Hibernia Evros Technology Group. "Market perception has been that Irish companies have been reluctant to outsource but the results of this survey suggest otherwise. 71% already outsource some element of their IT. It may be that the economic downturn is encouraging companies to focus more on their core business and explore ways to reduce internal costs."

The most common IT function outsourced is hardware support (72%) followed by web hosting (41%). Network management and security/virus protection (both 38%) are in the top four outsourced IT functions.

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Wipro to support laid-off French staff

BANGALORE: Wipro Chairman Azim Premji has reiterated the company’s commitment to France, a key growth market for the company, by growing its presence and creating employment opportunities in that country.

Premji, who met Christian Estrosi from the Ministry of Industry Paris, during a high-level delegation meeting in Paris to discuss the Wipro’s IT services growth strategy for France, said the IT firm was committed to work with local authorities to encourage local employment regeneration.

During the discussion, both Estrosi and Premji also spoke about Wipro’s worldwide exit from the IP connectivity activity, which implied closure of its Sophia Antipolis centre, a Wipro release said.

During the discussions, Wipro reiterated the measures being implemented to support the employees who will exit from the company, including providing financial benefits.

According to Christophe Martinoli, Head of France, Wipro Technologies, "With continued investment and our focus in creating a skilled talent base in France, we intend to double our staff base and revenues in the next 18 months to serve our French customers across industries such as retail, manufacturing, telecom, energy and utilities, banking and insurance"

The company said over a period of time, it had increased its headcount in France from less than 30 to 170.

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Global aviation cos eye India to outsource maintenance work

October 24, 2009

BANGALORE: Maintaining aircraft is costly business. Consider this. If a plane needs to be serviced it has to be flown into specific maintenance repair and overhaul (MRO) hubs, which could cost the airlines around $4,000 per hour.

Labour costs are equally exorbitant — as high as $55 to $60 per man-hour in South East Asia and the Middle East, compared to the $30-35 per man-hour in India.

The global aviation industry, caught in a thick air-pocket, is trying to cut costs by increasingly looking to outsource their maintenance and overhaul work to India.

This has opened a plethora of opportunities for small companies such as Air Works, Varman Aviation, Jupiter Aviation and IT giants like Wipro, who are actively chasing outsourcing contracts, as Indian commercial aviation MRO alone is expected to reach $1.06 billion by 2015 .Experts from Frost & Sullivan say the maintenance cycle and MRO service requirements in India are expected to grow at a CAGR of 13.5% between 2009 and 2015.

Wipro Technologies has come to an understanding with All Nippon Airways (ANA) of Japan for three years to deliver material management system. With a fleet of 209 aircraft, ANA is the first airline in the world to procure the Boeing 787 Dreamliner. Wipro has undertaken the task of transforming its legacy material management system to support the new fleet, in line with the expansion of its business at Tokyo’s Haneda Airport with its upcoming fourth runway in 2010.

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IBM signs 10-year IT outsourcing agreement with Innovation Auto Risk

October 23, 2009

NEW DELHI: IBM on Monday signed a 10-year information technology (IT) outsourcing agreement with Innovation Auto Risk, an established leader in the Indian market providing claims management services and other related solutions to insurers & fleet management companies.

As part of the agreement, IBM will deploy server, storage, networking and security IT infrastructure to be hosted at a data center in Delhi. IBM will provide 24x7 onsite infrastructure monitoring services from an onsite command centre. In addition, IBM will provide managed services and ongoing project management for infrastructure procurement, commissioning and configuration, as well as hardware refreshes after five years.

IBM put together a customized end-to-end managed services package and introduced Innovation Auto Risk to an operating-expense driven model, rather than capital-expense driven model. This allowed the company to pay IBM as-it-grows its business operations thus removing the need for large capital influx to sustain its growth and expansion. This agreement aims to reduce Innovation Auto Risk’s capital expenditure on IT by 25%.

“Innovation Auto Risk needed to build a robust infrastructure to address the growing claims processing requirements of their customers and we were able to provide this using a unique model that helped them grow without the headaches of managing their back-end and the need for huge capital requirements,” said Jyothi Satyanathan, Country Manager, ibm.com, IBM India/South Asia remarked,

“We are delighted with our agreement with IBM and believe its technology expertise and focus on delivering cost-efficient solutions will help us achieve our growth strategy and higher levels of customer satisfaction,” said Manu Mehta, Director, Innovation Auto Risk. 

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