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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BSNL to offer Rs 5k-cr outsourcing deals

October 10, 2009

NEW DELHI: Bharat Sanchar Nigam (BSNL) plans to outsource the management and maintenance of its towers and cable networks as the state-owned telecom operator looks to compete more effectively with private rivals such as Bharti Airtel and Reliance Communications that dominate the booming industry, and unlock the value of its assets.

BSNL plans to outsource more than 50,000 towers and over 1 lakh km of optic fibre cable, two executives with the telco told ET. The deal could be worth more than Rs 5,000 crore ($1 billion) over five years. The move is expected to face stiff resistance from about 3 lakh employees of the telco as it will impact close to 30,000 jobs.

The company plans to train and re-deploy a significant section of these employees to marketing roles, said these executives requesting anonymity. Most employees are expected to resist transfer to the rolls of the IT firms that win the outsourcing deal.

BSNL is in the process of finalising tender conditions for inviting bids for the contract, the executives said. The move will help BSNL unlock the value from its towers and passive infrastructure as the once-monopoly tries to play catch-up with private rivals, said BK Syngal, senior principal of consulting firm Dua Consulting.

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HCL inks Outsourcing Deal with Fortis

NEW DELHI: Hospital chain Fortis Healthcare has outsourced its IT systems and processes for all its hospitals to HCL Technologies for five years. The financial details of the deal was not announced.

As per the agreement, the HCL Tech will deploy Hospital Information Systems (HIS) & Enterprise Resource Planning (ERP) solutions to standardise operations across Fortis’ 28 hospitals in the country.

This deal makes Fortis the first healthcare delivery company in India to completely outsource IT applications and infrastructure management, Fortis said in a statement.

Shivinder Singh, MD , Fortis Healthcare said, ”IT forms the back bone for hospital operations and improved patient care. The system integration with high end IT infrastructure would result in enhanced performance and superior patient care.”

Source: http://economictimes.indiatimes.com/

Aegis acquires Sri Lankan outsourcing firm

October 9, 2009

Essar group company Aegis BPO today said it has acquired 80 per cent stake in Sri Lankan outsourcing company Ismart Timex for an undisclosed amount.

Aegis, through its holding company Essar Services Holdings, has acquired 80 per cent shares of Ismart Timex. The balance 20 per cent continues to be with its parent Timex Garments, Aegis said in a statement.

"Ismart Timex is one of the largest BPO service provider in Sri Lanka and we expect it to grow exponentially to more than double in voice and back office in the next one year. Aegis will now offer services from 35 delivery centres across the world," Aegis MD and CEO Aparup Sengupta said.

The acquisition, which would give management control to Aegis, would add 500 seats to the Essar company’s portfolio, the company spokesperson said.

This is the 14th acquisition for Aegis, after the company completed the take over of Australian BPO firm UCMS Group for AUD 54 million in August.

Ismart Timex provides back office and contact centre requirements in Sri Lanka with services in areas, including human resource profiling, training and quality assurance among others.

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