A new front in outsourcing
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Friday, August 31, 2007 |
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Source:www.hindu.com
Families in the developed countries struggling to pay the spiralling costs of care for their elderly relatives could soon have a new cheaper option: outsourcing to India.
Extreme though the idea may sound, one man has already made the move successfully with his parents, and the concept is being regarded with interest by care charities.
Steve Herzfeld, a 56-year-old American, was caring for his elderly parents for three years when, at his wit’s end over finances, he decided to relocate them to India in November 2006.
The three of them rented a house in Puducherry. With the help of a friend, Mr. Herzfeld organised a team of six to nurse, massage and care for his parents.
They pay £1,000 a month for the house, bills and medication — leaving them with money to put aside for a rainy day. Had they stayed in the U.S., they would have faced nursing-home fees three times that amount. Mr. Herzfeld’s parents would not have been able to afford such charges — and, anyway, he could not face the prospect of putting them in a home.
Frances Herzfeld, 89, was suffering from advanced Parkinson’s disease and Ernest Herzfeld, 93, has Alzheimer’s. Mr. (Steve) Herzfeld had retrained as a nursing assistant, not so much to nurse them himself but to know enough to manage their care. However, by late 2006, he knew they were so fragile they could not continue as they were. In the Florida nursing home he found for his mother, he knew she would spend her time “in a wheelchair, with four or five others in a room, while a nurse read the paper all day.”
Mr. Herzfeld is a disciple of Maharishi Mahesh Yogi, founder of the Transcendental Meditation programme, and since 1982 has been taking part in a long-term research project using advanced yoga techniques. The Maharishi encourages disciples to care for their family, so Mr. Herzfeld has taken time out to do this.
When a friend suggested the idea of relocating to India — for its far lower nursing costs and the promise of some quality of life for his parents — Mr. Herzfeld could see a lot of merit in the apparently outlandish idea. He had spent five years in India before, knew the country well and also could count on considerable help from his friend. So they moved to Puducherry.
Frances died in May, but Mr. Herzfeld still feels the move was worthwhile. “The big benefit was seeing my parents still had some dignity in their life,” he says.
However, he would only recommend that others took the same route if they had family or friends there or had lived in India before. “I don’t want to encourage people to do it when they could be very unhappy,” he says. “This is an environment that some Westerners thrive in and others don’t like particularly.”
Finding English-speaking staff has been difficult, as most of them can get better-paid jobs abroad.
Nonetheless, wages for a nurse amount to about £125 a month and drugs cost a fifth of what they do in the U.S. Instead of using every cent to pay for care, the father and son are now actually able to put some away.
Despite his own reservations, Mr. Herzfeld is clearly a pioneer and others — potentially millions — may want to follow him to warmer climes and more affordable care.
Nevertheless, there may be more pressure soon from a demanding baby-boomer generation of pensioners that is prepared to question authority and traditional stances.
U.K. property consultant King Sturge advises on the nursing home sector and senior associate Anthony Oldfield says: “There is scope in the next five years or so for British nursing home companies whose names are well-known in the U.K. to expand abroad.”
When the issue starts being debated, it will have to be an international discussion, not a national one. Within Europe, pensioners are tending to move from northern countries — such as the U.K. and Germany — to the south, to Spain, Greece and Italy.
The Norwegian Ministry of Health already organises “health trips” for people with rheumatism and skin problems to Spain, Turkey and Montenegro. Sooner or later, this will need to be addressed on a European or global level. The world population of 80-plus-year-olds is set to soar from 90 million now to 400 million by 2050, according to the World Demographic Association.
In Puducherry, Mr. Herzfeld has been surprised to receive e-mails from people who want to pack their ageing spouses off to India on their own.
But while there is no infrastructure for that now, Mr. Steve (who has studied accountancy) says: “It appears to me that there is a potential industry here — in areas that are nice and quiet, with less pollution. You could staff them, even build rooms for family members to live in and provide Western comfort levels.”
Families in the developed countries struggling to pay the spiralling costs of care for their elderly relatives could soon have a new cheaper option: outsourcing to India.
Extreme though the idea may sound, one man has already made the move successfully with his parents, and the concept is being regarded with interest by care charities.
Steve Herzfeld, a 56-year-old American, was caring for his elderly parents for three years when, at his wit’s end over finances, he decided to relocate them to India in November 2006.
The three of them rented a house in Puducherry. With the help of a friend, Mr. Herzfeld organised a team of six to nurse, massage and care for his parents.
They pay £1,000 a month for the house, bills and medication — leaving them with money to put aside for a rainy day. Had they stayed in the U.S., they would have faced nursing-home fees three times that amount. Mr. Herzfeld’s parents would not have been able to afford such charges — and, anyway, he could not face the prospect of putting them in a home.
Frances Herzfeld, 89, was suffering from advanced Parkinson’s disease and Ernest Herzfeld, 93, has Alzheimer’s. Mr. (Steve) Herzfeld had retrained as a nursing assistant, not so much to nurse them himself but to know enough to manage their care. However, by late 2006, he knew they were so fragile they could not continue as they were. In the Florida nursing home he found for his mother, he knew she would spend her time “in a wheelchair, with four or five others in a room, while a nurse read the paper all day.”
Mr. Herzfeld is a disciple of Maharishi Mahesh Yogi, founder of the Transcendental Meditation programme, and since 1982 has been taking part in a long-term research project using advanced yoga techniques. The Maharishi encourages disciples to care for their family, so Mr. Herzfeld has taken time out to do this.
When a friend suggested the idea of relocating to India — for its far lower nursing costs and the promise of some quality of life for his parents — Mr. Herzfeld could see a lot of merit in the apparently outlandish idea. He had spent five years in India before, knew the country well and also could count on considerable help from his friend. So they moved to Puducherry.
Frances died in May, but Mr. Herzfeld still feels the move was worthwhile. “The big benefit was seeing my parents still had some dignity in their life,” he says.
However, he would only recommend that others took the same route if they had family or friends there or had lived in India before. “I don’t want to encourage people to do it when they could be very unhappy,” he says. “This is an environment that some Westerners thrive in and others don’t like particularly.”
Finding English-speaking staff has been difficult, as most of them can get better-paid jobs abroad.
Nonetheless, wages for a nurse amount to about £125 a month and drugs cost a fifth of what they do in the U.S. Instead of using every cent to pay for care, the father and son are now actually able to put some away.
Despite his own reservations, Mr. Herzfeld is clearly a pioneer and others — potentially millions — may want to follow him to warmer climes and more affordable care.
Nevertheless, there may be more pressure soon from a demanding baby-boomer generation of pensioners that is prepared to question authority and traditional stances.
U.K. property consultant King Sturge advises on the nursing home sector and senior associate Anthony Oldfield says: “There is scope in the next five years or so for British nursing home companies whose names are well-known in the U.K. to expand abroad.”
When the issue starts being debated, it will have to be an international discussion, not a national one. Within Europe, pensioners are tending to move from northern countries — such as the U.K. and Germany — to the south, to Spain, Greece and Italy.
The Norwegian Ministry of Health already organises “health trips” for people with rheumatism and skin problems to Spain, Turkey and Montenegro. Sooner or later, this will need to be addressed on a European or global level. The world population of 80-plus-year-olds is set to soar from 90 million now to 400 million by 2050, according to the World Demographic Association.
In Puducherry, Mr. Herzfeld has been surprised to receive e-mails from people who want to pack their ageing spouses off to India on their own.
But while there is no infrastructure for that now, Mr. Steve (who has studied accountancy) says: “It appears to me that there is a potential industry here — in areas that are nice and quiet, with less pollution. You could staff them, even build rooms for family members to live in and provide Western comfort levels.”
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First Offshore IT Outsourcing Center in Ethiopia Opened by eVentive
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Source:www.earthtimes.org
eVentive, LLC, a Chicago-based IT consulting and outsourcing firm, has announced the opening of its offshore IT outsourcing center in Addis Ababa, Ethiopia. The outsourcing center, the first of its kind in the region, became operational with the graduation of the first class of Ethiopian consultants from eVentive's exclusive training program.
Addis Ababa, a thriving metropolis of nearly 3 million, offers a large workforce of English-speaking IT professionals. One major advantage that Addis Ababa offers over other outsourcing destinations is its 8 hour time difference with US Central time. This provides a significant daily window for live communications. At the national level, the government of the Federal Democratic Republic of Ethiopia has targeted Information Technology and Communications (ITC) as one of its top 5 priorities for development, which has resulted in significant investments in ITC infrastructure. As an emerging economy, Ethiopia offers cost advantages that cannot be matched by many countries that provide offshore IT outsourcing services.
eVentive's outsourcing center is poised to contribute to the rapidly growing Ethiopian economy by offering IT consulting and outsourcing services to U.S. and Ethiopian companies. eVentive's BlueNile(TM) offshoring methodology ensures project success by combining U.S.-based project management with highly trained Ethiopian resources. eVentive's Ethiopian consultants undergo a rigorous training program, BlueNile SED(TM). The 5-week program has been adapted for Ethiopia, and develops a balance of high-level technical and business skills.
eVentive, with its local partner United Systems Integrators, commenced Ethiopian operations with projects for both Ethiopian and US Fortune 500 customers. "eVentive's introduction of U.S.-style consulting and outsourcing services will be a key to technology growth in the region, as well as a great advantage to its US customers," says Michael Shebelle, President of United System Integrators in Ethiopia. "eVentive's expertise in process and technology, coupled with the local talent, offers great value for US customers seeking the advantages of offshore outsourcing."
eVentive, LLC is an established consulting and outsourcing firm based in Chicago, Illinois. Its customers include McKesson, Volkswagen of America, and The Northern Trust Company. United Systems Integrators, Plc. is a highly-regarded hardware systems integrator in Addis Ababa, and has delivered hardware and networking products and services to some of the largest companies in the region.
eVentive, LLC, a Chicago-based IT consulting and outsourcing firm, has announced the opening of its offshore IT outsourcing center in Addis Ababa, Ethiopia. The outsourcing center, the first of its kind in the region, became operational with the graduation of the first class of Ethiopian consultants from eVentive's exclusive training program.
Addis Ababa, a thriving metropolis of nearly 3 million, offers a large workforce of English-speaking IT professionals. One major advantage that Addis Ababa offers over other outsourcing destinations is its 8 hour time difference with US Central time. This provides a significant daily window for live communications. At the national level, the government of the Federal Democratic Republic of Ethiopia has targeted Information Technology and Communications (ITC) as one of its top 5 priorities for development, which has resulted in significant investments in ITC infrastructure. As an emerging economy, Ethiopia offers cost advantages that cannot be matched by many countries that provide offshore IT outsourcing services.
eVentive's outsourcing center is poised to contribute to the rapidly growing Ethiopian economy by offering IT consulting and outsourcing services to U.S. and Ethiopian companies. eVentive's BlueNile(TM) offshoring methodology ensures project success by combining U.S.-based project management with highly trained Ethiopian resources. eVentive's Ethiopian consultants undergo a rigorous training program, BlueNile SED(TM). The 5-week program has been adapted for Ethiopia, and develops a balance of high-level technical and business skills.
eVentive, with its local partner United Systems Integrators, commenced Ethiopian operations with projects for both Ethiopian and US Fortune 500 customers. "eVentive's introduction of U.S.-style consulting and outsourcing services will be a key to technology growth in the region, as well as a great advantage to its US customers," says Michael Shebelle, President of United System Integrators in Ethiopia. "eVentive's expertise in process and technology, coupled with the local talent, offers great value for US customers seeking the advantages of offshore outsourcing."
eVentive, LLC is an established consulting and outsourcing firm based in Chicago, Illinois. Its customers include McKesson, Volkswagen of America, and The Northern Trust Company. United Systems Integrators, Plc. is a highly-regarded hardware systems integrator in Addis Ababa, and has delivered hardware and networking products and services to some of the largest companies in the region.
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SMEs are biggest outsourcers, says expert
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Thursday, August 30, 2007 |
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Source:www.bcs.org
Small firms are generally the biggest users of outsourcing services, according to one expert.
Martyn Hart, chairman of the National Outsourcing Association, said that while small businesses are unlikely to look into offshore outsourcing, they are increasingly using local firms for IT maintenance and upgrades.
He noted that more businesses are using IT outsourcing processes as standard, rather than as 'extras' to a basic IT strategy.
'What we would call IT outsourcing is just becoming the way you actually run your IT,' Mr Hart commented.
'That is, of course, unless the small business is involved in IT - which a lot are - they will just take it as normal that's the way we do it. If you're actually involved in IT you'll do a lot more yourself.'
Research carried out by the Irish Computer Society earlier this year found that small IT departments are less likely to outsource their IT processes than larger departments.
The survey also revealed that the main reason for undertaking IT outsourcing among Irish organisations is cost savings.ADNFCR-8000120-ID-18261307-ADNFCR
Small firms are generally the biggest users of outsourcing services, according to one expert.
Martyn Hart, chairman of the National Outsourcing Association, said that while small businesses are unlikely to look into offshore outsourcing, they are increasingly using local firms for IT maintenance and upgrades.
He noted that more businesses are using IT outsourcing processes as standard, rather than as 'extras' to a basic IT strategy.
'What we would call IT outsourcing is just becoming the way you actually run your IT,' Mr Hart commented.
'That is, of course, unless the small business is involved in IT - which a lot are - they will just take it as normal that's the way we do it. If you're actually involved in IT you'll do a lot more yourself.'
Research carried out by the Irish Computer Society earlier this year found that small IT departments are less likely to outsource their IT processes than larger departments.
The survey also revealed that the main reason for undertaking IT outsourcing among Irish organisations is cost savings.ADNFCR-8000120-ID-18261307-ADNFCR
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SMEs are biggest outsourcers, says expert
|
|
Source:www.bcs.org
Small firms are generally the biggest users of outsourcing services, according to one expert.
Martyn Hart, chairman of the National Outsourcing Association, said that while small businesses are unlikely to look into offshore outsourcing, they are increasingly using local firms for IT maintenance and upgrades.
He noted that more businesses are using IT outsourcing processes as standard, rather than as 'extras' to a basic IT strategy.
'What we would call IT outsourcing is just becoming the way you actually run your IT,' Mr Hart commented.
'That is, of course, unless the small business is involved in IT - which a lot are - they will just take it as normal that's the way we do it. If you're actually involved in IT you'll do a lot more yourself.'
Research carried out by the Irish Computer Society earlier this year found that small IT departments are less likely to outsource their IT processes than larger departments.
The survey also revealed that the main reason for undertaking IT outsourcing among Irish organisations is cost savings.ADNFCR-8000120-ID-18261307-ADNFCR
Small firms are generally the biggest users of outsourcing services, according to one expert.
Martyn Hart, chairman of the National Outsourcing Association, said that while small businesses are unlikely to look into offshore outsourcing, they are increasingly using local firms for IT maintenance and upgrades.
He noted that more businesses are using IT outsourcing processes as standard, rather than as 'extras' to a basic IT strategy.
'What we would call IT outsourcing is just becoming the way you actually run your IT,' Mr Hart commented.
'That is, of course, unless the small business is involved in IT - which a lot are - they will just take it as normal that's the way we do it. If you're actually involved in IT you'll do a lot more yourself.'
Research carried out by the Irish Computer Society earlier this year found that small IT departments are less likely to outsource their IT processes than larger departments.
The survey also revealed that the main reason for undertaking IT outsourcing among Irish organisations is cost savings.ADNFCR-8000120-ID-18261307-ADNFCR
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The Benefits of Outsourcing
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Source:pr-gb.com
Handling a business portfolio is a very serious task to consider. It is not just the matter of making your business sellable to the public, but it is also the matter of handling every detail and making it profitable for your business. Thus, starting a business is not for everyone, but exclusive for individuals who have the mind and talent to run a successful business portfolio.
You may have already achieved success at running a small business. With fluctuations in the economy as well as the tight competition with other businesses offering similar products or services you offer, it is indeed an achievement to have your small business staying alive for several years. However, as part of your commitment to make your business portfolio more profitable, you must be regularly updated with regards to the latest strategies in handling businesses. Keep in mind that you must conform to the changing standards of the industry in order for your portfolio to last for the long haul.
Probably, you have heard about outsourcing and its benefits to small businesses. You might also consider outsourcing your business portfolio, but it is important that you understand the meaning of outsourcing and the reasons why many companies outsource some or majority of the functions of their business.
To start with, let us define outsourcing. It is the designation of several non-core functions of a business to an independent entity which has the specialization over a particular non-core function. In other words, outsourcing means giving away some of your business tasks that could be managed by an independent entity, such that the entity has the specialization over that certain task.
In addition, it is also stated in the definition that outsourcing is more of delegation of non-core business functions. Simply put, non-core functions are certain tasks that are commonly handled by a separate department. For instance, as the business owner, your primary concern is the general management and financing of your business. Such aspect is referred to as the core functions, whereas the non-core functions include human resource recruitment and training and information technology (IT) support.
Now, why outsource such non-core functions of your business? At this point, the benefits would now be derived based on the reasons of outsourcing. Read on and learn the benefits that you can enjoy in outsourcing some of your business’ functions.
1.It reduces your expenses. It is cheaper to outsource your business’ non-core functions to independent entities. You do not need to hire additional workers, thus decreasing overhead expenses in terms of employment. In addition, offshore outsourcing offers cheaper rate, thus decreasing further your expenditures.
2.It also allows you to concentrate further on the core functions of your business. Since you have designated some of your tasks to other groups, you can now concentrate on providing better quality of products and services to the public. It leads to increased overall productivity of your business.
3.You are assured that the tasks are handled by professionals. In advertising, for instance, it is important that you have a professional who will propose viable ideas to make your products or services sellable to the public. Since they have specialization on such fields, you are assured that they can manage the task effectively.
Although there is a limited access to the tasks you will outsource to outsourcing firms, it is a viable option that can make your business more profitable. It may even provide you with new ideas to integrate into your business.
Handling a business portfolio is a very serious task to consider. It is not just the matter of making your business sellable to the public, but it is also the matter of handling every detail and making it profitable for your business. Thus, starting a business is not for everyone, but exclusive for individuals who have the mind and talent to run a successful business portfolio.
You may have already achieved success at running a small business. With fluctuations in the economy as well as the tight competition with other businesses offering similar products or services you offer, it is indeed an achievement to have your small business staying alive for several years. However, as part of your commitment to make your business portfolio more profitable, you must be regularly updated with regards to the latest strategies in handling businesses. Keep in mind that you must conform to the changing standards of the industry in order for your portfolio to last for the long haul.
Probably, you have heard about outsourcing and its benefits to small businesses. You might also consider outsourcing your business portfolio, but it is important that you understand the meaning of outsourcing and the reasons why many companies outsource some or majority of the functions of their business.
To start with, let us define outsourcing. It is the designation of several non-core functions of a business to an independent entity which has the specialization over a particular non-core function. In other words, outsourcing means giving away some of your business tasks that could be managed by an independent entity, such that the entity has the specialization over that certain task.
In addition, it is also stated in the definition that outsourcing is more of delegation of non-core business functions. Simply put, non-core functions are certain tasks that are commonly handled by a separate department. For instance, as the business owner, your primary concern is the general management and financing of your business. Such aspect is referred to as the core functions, whereas the non-core functions include human resource recruitment and training and information technology (IT) support.
Now, why outsource such non-core functions of your business? At this point, the benefits would now be derived based on the reasons of outsourcing. Read on and learn the benefits that you can enjoy in outsourcing some of your business’ functions.
1.It reduces your expenses. It is cheaper to outsource your business’ non-core functions to independent entities. You do not need to hire additional workers, thus decreasing overhead expenses in terms of employment. In addition, offshore outsourcing offers cheaper rate, thus decreasing further your expenditures.
2.It also allows you to concentrate further on the core functions of your business. Since you have designated some of your tasks to other groups, you can now concentrate on providing better quality of products and services to the public. It leads to increased overall productivity of your business.
3.You are assured that the tasks are handled by professionals. In advertising, for instance, it is important that you have a professional who will propose viable ideas to make your products or services sellable to the public. Since they have specialization on such fields, you are assured that they can manage the task effectively.
Although there is a limited access to the tasks you will outsource to outsourcing firms, it is a viable option that can make your business more profitable. It may even provide you with new ideas to integrate into your business.
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IBM In $17 Million Outsourcing Deal With Danish Government
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Wednesday, August 29, 2007 |
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Source:www.informationweek.com
The pact extends an existing contract that IBM inked with the Danish government in 2003 to support its Agricultural Advisory Service.
IBM said Monday that it has won a contract worth $17.7 million to provide tech support to Denmark's Agricultural Advisory Service.
Under the seven-year deal, IBM will support and maintain an online accounting and bookkeeping system that the Danish government agency operates on behalf of the country's farmers. The system, called 090, helps farmers maintain income statements and balance sheets and track their value-added tax payments.
The pact extends an existing contract that IBM inked with the Danish government in 2003 to support 090. More than 90% of farmers in Denmark use the system, according to IBM. It's used to maintain more than 40,000 VAT -- or value added tax -- accounts.
Under the new agreement, 090 will be moved off Sun servers and ported to a virtualized environment hosted by IBM. "We will achieve greater flexibility because we will be able to quickly adjust our use of capacity up or down according to demand," said Niels Peter Skrubbeltrang, department manager at the Agricultural Advisory Service, in a statement.
IBM's Global Technology Services outsourcing unit has been building momentum of late. Last week, IBM said it had won a $330 million services contract from insurance giant Allianz. Earlier this month, Canada's Canadian Pacific railway handed IBM a five-year contract to provide it with application development and support services. Financial details were not disclosed.
IBM's Global Technology Services unit posted a 10% gain in year-over-year revenue in IBM's most recent quarter, to $8.8 billion. It also signed new services contracts totaling $11.7 billion during the period, up 22% over the previous year.
The pact extends an existing contract that IBM inked with the Danish government in 2003 to support its Agricultural Advisory Service.
IBM said Monday that it has won a contract worth $17.7 million to provide tech support to Denmark's Agricultural Advisory Service.
Under the seven-year deal, IBM will support and maintain an online accounting and bookkeeping system that the Danish government agency operates on behalf of the country's farmers. The system, called 090, helps farmers maintain income statements and balance sheets and track their value-added tax payments.
The pact extends an existing contract that IBM inked with the Danish government in 2003 to support 090. More than 90% of farmers in Denmark use the system, according to IBM. It's used to maintain more than 40,000 VAT -- or value added tax -- accounts.
Under the new agreement, 090 will be moved off Sun servers and ported to a virtualized environment hosted by IBM. "We will achieve greater flexibility because we will be able to quickly adjust our use of capacity up or down according to demand," said Niels Peter Skrubbeltrang, department manager at the Agricultural Advisory Service, in a statement.
IBM's Global Technology Services outsourcing unit has been building momentum of late. Last week, IBM said it had won a $330 million services contract from insurance giant Allianz. Earlier this month, Canada's Canadian Pacific railway handed IBM a five-year contract to provide it with application development and support services. Financial details were not disclosed.
IBM's Global Technology Services unit posted a 10% gain in year-over-year revenue in IBM's most recent quarter, to $8.8 billion. It also signed new services contracts totaling $11.7 billion during the period, up 22% over the previous year.
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India's Wipro to Open Center in Atlanta
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Source:www.forbes.com
Wipro Technologies, the global services arm of Indian outsourcing company Wipro Ltd., plans to open a software development center in Atlanta, the company said.
Wipro (nyse: WIT - news - people ) will initially employ 200 people and anticipates about 500 positions within three years, mostly graduates from state universities, the company said in a statement.
"The center is part of Wipro's strategy to build global delivery capabilities and will significantly increase the company's presence and base of local hires in the United States," the Monday statement said.
Western companies routinely shift information technology jobs to countries such as India, where wages are low and skilled workers are plentiful.
The practice has benefited Indian software companies, some of which are now setting up centers outside India to compete with IBM Corp. (nyse: IBM - news - people ), Accenture (nyse: ACN - news - people ) and other global computer services companies.
"The work we're doing requires more and more knowledge of the customers' businesses, and you want local people to do that," said P.R Chandrasekar, President, Wipro Technologies Ltd. "The Atlanta center is an investment that will help Wipro's existing customers as well as help address new business opportunities."
Wipro already operates software development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada. The company said it chose Atlanta because of its proximity to key universities.
The University System of Georgia has already provided Wipro with "a comprehensive work force development program," Wipro's statement quoted chancellor Erroll B. Davis Jr. as saying.
"We tapped into the resources of Georgia's 35 public colleges and universities to find the best solution for this company," said Davis.
Also, Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system, he said.
Earlier this month, Wipro Ltd. said it would buy Infocrossing Inc. (nasdaq: IFOX - news - people ) for about $600 million. The New Jersey-based company provides outsourcing services to mid-sized companies in the United States.
Wipro Technologies, the global services arm of Indian outsourcing company Wipro Ltd., plans to open a software development center in Atlanta, the company said.
Wipro (nyse: WIT - news - people ) will initially employ 200 people and anticipates about 500 positions within three years, mostly graduates from state universities, the company said in a statement.
"The center is part of Wipro's strategy to build global delivery capabilities and will significantly increase the company's presence and base of local hires in the United States," the Monday statement said.
Western companies routinely shift information technology jobs to countries such as India, where wages are low and skilled workers are plentiful.
The practice has benefited Indian software companies, some of which are now setting up centers outside India to compete with IBM Corp. (nyse: IBM - news - people ), Accenture (nyse: ACN - news - people ) and other global computer services companies.
"The work we're doing requires more and more knowledge of the customers' businesses, and you want local people to do that," said P.R Chandrasekar, President, Wipro Technologies Ltd. "The Atlanta center is an investment that will help Wipro's existing customers as well as help address new business opportunities."
Wipro already operates software development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada. The company said it chose Atlanta because of its proximity to key universities.
The University System of Georgia has already provided Wipro with "a comprehensive work force development program," Wipro's statement quoted chancellor Erroll B. Davis Jr. as saying.
"We tapped into the resources of Georgia's 35 public colleges and universities to find the best solution for this company," said Davis.
Also, Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system, he said.
Earlier this month, Wipro Ltd. said it would buy Infocrossing Inc. (nasdaq: IFOX - news - people ) for about $600 million. The New Jersey-based company provides outsourcing services to mid-sized companies in the United States.
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Reduce Cost by Using Outsourcing Software
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Tuesday, August 28, 2007 |
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India is home to some of the largest IT Outsourcing organizations of the world; everything from software development organizations to manufacturing products and global banks, to the world of BPO or information technology, Offshore outsourcing is simply flourishing in India. Cities like Bangalore, Mumbai, Delhi, and Hyderabad are the key players in this sector.
The World Wide Web plays a vital role in the global business paradigm. This enables the workers to get in touch with the outsourcing software development workers in distant nations or with professionals in cities of India. The use of outsourcing software lets your overhead charges come to nearly zero letting you reduce your costs drastically.
Offshore outsourcing reduces costs, as you can find significantly lower rates from offshore vendors. Rates are only one component of costs, and in any case you have to look at the entire return on investment. Most people in the software industry know that productivity differences between developers are far greater than salary differences - and even the rate differentials offered by offshore aren't necessarily greater than that. Offshore work also introduces extra costs and risks that may offset the rate differential.
With the variety of web-sites, internet marketing is made easier. These sites make outsourcing software very easy. It's simple to navigate, enrollment costs that are cheaper and there are a variety of value-added services that come with membership.
The outsourcing software trend and other services will continue to increase with the continuous extending of internet’s reach for further with the policies of U.S corporations. Currently it is the age of information that is expected to grow both in size and scope.
There are so many resourceful website that acts as another entry for the outsourcing software virtual marketplace. In fact, these sites have various categories of web to choose from. Instead of just software and computer related projects, these enable one to find editing, photography, writing, and broadcasting of business consulting, legal, sales, marketing, and other software projects making it beneficial for both the customers and the providers.
The World Wide Web plays a vital role in the global business paradigm. This enables the workers to get in touch with the outsourcing software development workers in distant nations or with professionals in cities of India. The use of outsourcing software lets your overhead charges come to nearly zero letting you reduce your costs drastically.
Offshore outsourcing reduces costs, as you can find significantly lower rates from offshore vendors. Rates are only one component of costs, and in any case you have to look at the entire return on investment. Most people in the software industry know that productivity differences between developers are far greater than salary differences - and even the rate differentials offered by offshore aren't necessarily greater than that. Offshore work also introduces extra costs and risks that may offset the rate differential.
With the variety of web-sites, internet marketing is made easier. These sites make outsourcing software very easy. It's simple to navigate, enrollment costs that are cheaper and there are a variety of value-added services that come with membership.
The outsourcing software trend and other services will continue to increase with the continuous extending of internet’s reach for further with the policies of U.S corporations. Currently it is the age of information that is expected to grow both in size and scope.
There are so many resourceful website that acts as another entry for the outsourcing software virtual marketplace. In fact, these sites have various categories of web to choose from. Instead of just software and computer related projects, these enable one to find editing, photography, writing, and broadcasting of business consulting, legal, sales, marketing, and other software projects making it beneficial for both the customers and the providers.
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Wipro Technologies to Open New Software Development Center
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Source:www.techlinks.net
Georgia Governor Sonny Perdue announced today that Wipro Technologies, the global IT services business of Wipro Limited, will open its new global software development center in Atlanta.
“We are proud that Georgia can offer the top-notch technology, workforce and other business assets Wipro is looking for to grow its presence in the United States,” said Governor Sonny Perdue. “I’m especially pleased about the partnership between Wipro and the University System of Georgia to train and educate more than 500 employees.”
Wipro is in the process of choosing a location in metro Atlanta for its first development center in Georgia. The center will help Wipro hire skilled workers and domain experts who will be critical to Wipro’s business growth plans in the U.S. The new center will also allow Wipro to move forward with its business growth strategy to invest and recruit skilled talent within the U.S. in order to provide localized and closer-to-customer service for its expanding technology services business in the Americas.
“The work we’re doing requires more and more knowledge of the customers’ businesses, and you want local people to do that,” said Wipro President and CEO Americas P.R Chandrasekar. “The Atlanta center is an investment that will help Wipro’s existing customers as well as help address new business opportunities.”
Wipro chose to establish its presence in Atlanta because of the technical talent pool available in the region, given its proximity to key universities. For the first year, the Atlanta facility will hire more than 200 positions. By its third year of operation, the facility is expected to employ more than 500 employees. Wipro will also set up a training center in Atlanta to provide both technical and soft-skills training to its employees in Georgia, and plans to sponsor higher education degrees for up to 40 percent of its employees for training and development.
“Wipro told us what they needed, and the University System of Georgia responded with a comprehensive workforce development program,” said Erroll B. Davis, Jr., Chancellor. “Through ICAPP (Georgia’s Intellectual Capital Partnership Program), we tapped into the resources of Georgia’s 35 public colleges and universities to find the best solution for this company. Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system.”
The center is part of Wipro’s strategy to build global delivery capabilities and will significantly increase the company’s presence and base of local hires in the United States. Wipro has over 12 offices in the United States, and the Atlanta center will strengthen the company’s growing global delivery capabilities, which include development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada.
Georgia Department of Economic Development (GDEcD) Statewide Project Manager Mary Z. Douglass assisted the company with its location, as did the Metro Atlanta Chamber of Commerce (MACOC).
“The Wipro investment is significant for metro Atlanta, and will create additional quality jobs coming from India,” said Hans Gant, senior vice president of Economic Development for MACOC. “Metro Atlanta continues to expand its global connections, and attract companies half a world away because we’ve got everything they need—a home base located in the heart of the nation’s fastest-growing metro area, a low cost of doing business, access to the world through our international airport and world class universities.”
Georgia Governor Sonny Perdue announced today that Wipro Technologies, the global IT services business of Wipro Limited, will open its new global software development center in Atlanta.
“We are proud that Georgia can offer the top-notch technology, workforce and other business assets Wipro is looking for to grow its presence in the United States,” said Governor Sonny Perdue. “I’m especially pleased about the partnership between Wipro and the University System of Georgia to train and educate more than 500 employees.”
Wipro is in the process of choosing a location in metro Atlanta for its first development center in Georgia. The center will help Wipro hire skilled workers and domain experts who will be critical to Wipro’s business growth plans in the U.S. The new center will also allow Wipro to move forward with its business growth strategy to invest and recruit skilled talent within the U.S. in order to provide localized and closer-to-customer service for its expanding technology services business in the Americas.
“The work we’re doing requires more and more knowledge of the customers’ businesses, and you want local people to do that,” said Wipro President and CEO Americas P.R Chandrasekar. “The Atlanta center is an investment that will help Wipro’s existing customers as well as help address new business opportunities.”
Wipro chose to establish its presence in Atlanta because of the technical talent pool available in the region, given its proximity to key universities. For the first year, the Atlanta facility will hire more than 200 positions. By its third year of operation, the facility is expected to employ more than 500 employees. Wipro will also set up a training center in Atlanta to provide both technical and soft-skills training to its employees in Georgia, and plans to sponsor higher education degrees for up to 40 percent of its employees for training and development.
“Wipro told us what they needed, and the University System of Georgia responded with a comprehensive workforce development program,” said Erroll B. Davis, Jr., Chancellor. “Through ICAPP (Georgia’s Intellectual Capital Partnership Program), we tapped into the resources of Georgia’s 35 public colleges and universities to find the best solution for this company. Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system.”
The center is part of Wipro’s strategy to build global delivery capabilities and will significantly increase the company’s presence and base of local hires in the United States. Wipro has over 12 offices in the United States, and the Atlanta center will strengthen the company’s growing global delivery capabilities, which include development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada.
Georgia Department of Economic Development (GDEcD) Statewide Project Manager Mary Z. Douglass assisted the company with its location, as did the Metro Atlanta Chamber of Commerce (MACOC).
“The Wipro investment is significant for metro Atlanta, and will create additional quality jobs coming from India,” said Hans Gant, senior vice president of Economic Development for MACOC. “Metro Atlanta continues to expand its global connections, and attract companies half a world away because we’ve got everything they need—a home base located in the heart of the nation’s fastest-growing metro area, a low cost of doing business, access to the world through our international airport and world class universities.”
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Virtual outsourcing
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Monday, August 27, 2007 |
|
Source:www.mysanantonio.com
Late last year, business coach Cheryl Cook was struggling to keep up with e-mails and phone calls while trying to build her business.
Then she took a friend's advice and contracted to have a virtual assistant in Tampa, Fla. — a woman she had never met — weed through the hundreds of e-mails she gets daily. Her "VA" Kathy Hadzibajric charged $30 an hour to find and to sort the useful messages into separate, topic folders.
And Cook was free to pursue and meet with even more clients.
Virtual assistants are a growing way for small-business owners to have administrative tasks taken care of without hiring additional employees. Military spouses, a large share of the VA community because of the flexibility of the business, performed more than $30 million in services last year, according to Christine Durst, chief executive officer of Staffcentrix and founder of the International Virtual Assistants Association.
The specialty arose in the mid-1990s as the Internet made it easier to share documents across long distances. Real estate agents and business coaches were among the first to use VAs. Now, virtual assistants provide a broad range of administrative and creative services, including graphic design, Web site management, grant writing, payroll processing, transcription and marketing campaigns.
Staffcentrix.com, IVAA.org and AssistU.com have searchable online databases for finding virtual assistants by specialty.
Downsized executives increasingly turn to VAs as a way to give their new businesses the amenities that are commonplace in larger competitors, without the labor, rent and benefits costs of employees.
Like Cook, they often find it a great value. Hadzibajric sends Cook detailed bills and never has charged more than $150 a month — even after Cook began having her also schedule appointments, answer mail and build an online records archive. Soon, Cook plans to have her VA start submitting her articles to online magazines.
"There's no way I could have someone sitting here — even part-time — and pay them what I pay her," Cook said.
VAs frequently are professionals who have worked in corporate America before deciding to offer their back-office services from home via the Internet. So clients often use them as sounding boards for business plans, Hadzibajric said.
She was a program manager for nonprofits in Washington, D.C., for 13 years before moving to Florida and launching Virtually Solved. Hadzibajric has had clients in Vancouver, Canada; Brazil; Wisconsin; and across the Southeast.
"I have a lot of clients who call just to run ideas by me because they don't have anyone else they can talk to who are not colleagues or competitors," she said.
VAs provide their own software, materials and supplies and tend to have more flexible work hours than employees.
Business owners have the flexibility to use them on a project-by-project basis. In many cases, one VA can provide a network to many other experts that the business owner may not be able to access.
"With a VA, it is possible to have an entire team," said Beryl Powell, a San Antonio-based virtual assistant and owner of Completely Virtual Group, which designs and implements marketing campaigns using public relations and telemarketing specialists for clients in New York, New Jersey, Florida and Massachusetts.
But the services-on-demand come with legal limitations. Business owners can prepay for a set number of hours of service but cannot contract to be a VA's sole client nor dictate when the work gets done.
"Based on IRS guidelines, you can give them a due date, but you cannot limit where they do the work and how they do it," said Candy Beauchamp, an Austin-based virtual assistant who is president of an industry association. "You can request to check in online to see how the work is progressing."
Mike Forsyth, a San Antonio-based managing director and business consultant at Holland & Davis, also recommends that business owners and VAs decide in advance how they will interact via phone and online to minimize conflict. Forsyth uses a VA in Houston to edit his documents and to answer phone calls. They meet weekly online at GotoMeeting.com to review documents in real time and to chat via instant messages.
"Sometimes they are assisting as many as a dozen people, and so you want to work out how you will get worked into their schedule," Forsyth said.
Late last year, business coach Cheryl Cook was struggling to keep up with e-mails and phone calls while trying to build her business.
Then she took a friend's advice and contracted to have a virtual assistant in Tampa, Fla. — a woman she had never met — weed through the hundreds of e-mails she gets daily. Her "VA" Kathy Hadzibajric charged $30 an hour to find and to sort the useful messages into separate, topic folders.
And Cook was free to pursue and meet with even more clients.
Virtual assistants are a growing way for small-business owners to have administrative tasks taken care of without hiring additional employees. Military spouses, a large share of the VA community because of the flexibility of the business, performed more than $30 million in services last year, according to Christine Durst, chief executive officer of Staffcentrix and founder of the International Virtual Assistants Association.
The specialty arose in the mid-1990s as the Internet made it easier to share documents across long distances. Real estate agents and business coaches were among the first to use VAs. Now, virtual assistants provide a broad range of administrative and creative services, including graphic design, Web site management, grant writing, payroll processing, transcription and marketing campaigns.
Staffcentrix.com, IVAA.org and AssistU.com have searchable online databases for finding virtual assistants by specialty.
Downsized executives increasingly turn to VAs as a way to give their new businesses the amenities that are commonplace in larger competitors, without the labor, rent and benefits costs of employees.
Like Cook, they often find it a great value. Hadzibajric sends Cook detailed bills and never has charged more than $150 a month — even after Cook began having her also schedule appointments, answer mail and build an online records archive. Soon, Cook plans to have her VA start submitting her articles to online magazines.
"There's no way I could have someone sitting here — even part-time — and pay them what I pay her," Cook said.
VAs frequently are professionals who have worked in corporate America before deciding to offer their back-office services from home via the Internet. So clients often use them as sounding boards for business plans, Hadzibajric said.
She was a program manager for nonprofits in Washington, D.C., for 13 years before moving to Florida and launching Virtually Solved. Hadzibajric has had clients in Vancouver, Canada; Brazil; Wisconsin; and across the Southeast.
"I have a lot of clients who call just to run ideas by me because they don't have anyone else they can talk to who are not colleagues or competitors," she said.
VAs provide their own software, materials and supplies and tend to have more flexible work hours than employees.
Business owners have the flexibility to use them on a project-by-project basis. In many cases, one VA can provide a network to many other experts that the business owner may not be able to access.
"With a VA, it is possible to have an entire team," said Beryl Powell, a San Antonio-based virtual assistant and owner of Completely Virtual Group, which designs and implements marketing campaigns using public relations and telemarketing specialists for clients in New York, New Jersey, Florida and Massachusetts.
But the services-on-demand come with legal limitations. Business owners can prepay for a set number of hours of service but cannot contract to be a VA's sole client nor dictate when the work gets done.
"Based on IRS guidelines, you can give them a due date, but you cannot limit where they do the work and how they do it," said Candy Beauchamp, an Austin-based virtual assistant who is president of an industry association. "You can request to check in online to see how the work is progressing."
Mike Forsyth, a San Antonio-based managing director and business consultant at Holland & Davis, also recommends that business owners and VAs decide in advance how they will interact via phone and online to minimize conflict. Forsyth uses a VA in Houston to edit his documents and to answer phone calls. They meet weekly online at GotoMeeting.com to review documents in real time and to chat via instant messages.
"Sometimes they are assisting as many as a dozen people, and so you want to work out how you will get worked into their schedule," Forsyth said.
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Hold your offshore investment course
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Source:www.persfin.co.za
Now is definitely not the time to abandon your offshore investments. If anything, there are good opportunities to be had in foreign markets.
Global market turbulence arising from the sub-prime home loan debacle in the United States appeared to be abating this week, although many commentators say investors are still nervous about the prospect of further volatility.
Jeremy Gardiner, a director at Investec Asset Management, says since the noise began earlier this month most world markets have fallen somewhere between 10 and 15 percent from their highs.
If the events of the past month made you panic about your offshore investments or if you patted yourself on the back for not having any of these investments, your investment strategy is probably off course, asset managers and financial advisers say.
You should, they say, have a properly diversified offshore portfolio, which forms part of an overall investment portfolio that is determinedin accordance with your investment needs, investment time horizon and your appetite for risk.
If that is the case, when the trouble started some three weeks ago, you should have battened down the hatches and gone to sleep in your cabin, leaving your asset manager to do his or her job of steering the boat, Debbie Netto-Jonker, a leading financial planner with Netto Financial Services, says.
Netto-Jonker says investors who are in general managed or balanced funds that have a sensible blend of bonds, cash and equities did not see their funds shoot the lights out with high returns during the bull market. Butin the current market turbulence they should see the benefits of being well diversified.
Stay the course
If you were panicking as news of the market declines emerged, it is to be hoped that you didn't make any rash decisions.
Gardiner says "making fundamental changes to your portfolio during extreme turbulence is tantamount to trying to change the sails during a gale".
He says you first need to get your risk profile right (by looking at your needs, time horizon and appetite for risk), and then you can select an appropriate investment portfolio. If you do this, you will be able to sail through whatever conditions the markets experience.
Netto-Jonker says the real question long-term investors should be asking themselves is whether the fundamentals influencing the marketsin which they have invested have changed.
Only if the fundamentals have changed, should you consider changing your investment.
Most asset managers say the fundamentals of offshore markets haven't changed.
Gardiner says the world economy remains healthy, and global equity markets are still reasonably priced. He says over the long term, the current adjustments to the US credit markets will be healthy.
Netto-Jonker says you must remain focused on your long-term investment objectives and avoid any temptation to overreact to recent market movements.
In the long run, investment markets perform very well, but most investors fail to earn good returns, she says. The main reason for this is that investors allow their emotions to drive their investment decisions. This often resultsin investors withdrawing from the markets during periods of volatility, and in most cases this has negative long-term consequences, Netto-Jonker says.
It is in times like this that staying the course with your investment strategy will be rewarded in the long run, she says.
Kokkie Kooyman, the head of Sanlam Investment Management (SIM) Global who operates the Sanlam Global Best Ideas Fund and the rand-denominated fund that feeds into this offshore fund, agrees that a disciplined approach of investing onlyin undervalued equities - especially when those companies have above-average growth and have good, ethical and rational management - will generate superior returns over time.
Don't wait to get in
If you missed the recent offshore market turbulence because you are not invested in offshore markets, you may be pleased this time around, but it's not a good strategy to have all your eggs in one South African basket.
You should be exposed to offshore markets because it is a way of diversifying your risk: different markets often perform well or badly at different times.
Exposure to offshore markets also enables you to invest in sectors and companies that are not available in South Africa.
Investment gurus say you should buy into markets when they are low, rather than when they are delivering high returns and are about to peak before the next downturn.
This, together with the rand's relative strength against the major currencies, seems to indicate that if you don't have enough exposure to offshore markets, or if you need to rebalance your investments following good growthon local investments, now is an opportune time to move into offshore markets.
Kooyman says if you need to get into offshore markets, you shouldn't wait. He quotes First Rand Banking chief executive officer Paul Harris as saying: "'Wait and see' is the dumbest advice I have ever heard."
To generate excess returns, you have to take some risk, Kooyman says. You could wait until the crisis is over, but you'll forgo considerable upside, he adds.
You can always find undervalued, superior companies in any market, Kooyman says. However, at times investors push up (or down) certain sectors or geographies more than others as they (for a while) fallin or out of love with them.
Kooyman says over the past eight months the most undervalued markets have been South Korea and Taiwan, and they remain undervalued. Smaller cap stocksin China (listed in Hong Kong or Singapore) also still offer good value.
But, he says, SIM Global is increasingly finding good value in France, Germany, the United Kingdom and the US.
"At the moment the 'vision' on the future earnings of US banks is clouded by the uncertain outlook for loan growth and fee income, and the risk of increasing bad debts.
"But as surely as day follows night, the current sub-prime woes and feared US consumer spending slowdown will pass. When that happens, US banks will offer extremely good value."
Where the value lies
Kooyman says when investment banks, hedge funds and other investors that have been selling their shares in offshore markets go back into the market, they will initially avoid companies that are operating on borrowed money and ones with riskier strategies.
The preference will be for com-panies with proven track records that generate cash.Kooyman says the Sanlam Global Best Ideas Fund has been investingin these shares - the likes of US information technology companies Dell and Cisco, European media company Vivendi, German professional services company Deutsche Post, and US gas-drilling and exploration company Chesapeake - since January 2007.
He says his fund has also been invested in undervalued Chinese and Indian smaller companies, such as Great Wall Motors (a motor manufacturer in China), Global Green Tech (a beauty product manufacturer in China), Chaoda Modern Agriculture (a food manufacturer in China) and China Essence (a potato starch manufacturer in China).
These companies are unlikely to be affected by a global slowdown following the US sub-prime mortgage problems, Kooyman says.
Anil Thakersee, the managing director of Old Mutual Unit Trusts, agrees that current economic conditions and the relative valuations of local and offshore markets favour increasing offshore exposurein a portfolio with no or low exposure.
Offshore equity market valuations are at their most attractive levels relative to the JSE in several years, he says. For example, the historic price:earnings ratio of the US Standard & Poor's index is now at roughly the same level as the JSE, at 15 times.
At the same time, global interest rates have risen, and even offshore money market funds are offering relatively attractive returns.
"Should the local equity market become increasingly volatile in the next 12 months, it is likely that an offshore diversified portfolio will demonstrate lower volatility than one that is not. So when it comes to offshore investing, it is certainly more about managing risk than chasing returns," Thakersee says.
Looking ahead, he says, it is very difficult to forecast whether a local or an offshore investment will perform better.
Now is definitely not the time to abandon your offshore investments. If anything, there are good opportunities to be had in foreign markets.
Global market turbulence arising from the sub-prime home loan debacle in the United States appeared to be abating this week, although many commentators say investors are still nervous about the prospect of further volatility.
Jeremy Gardiner, a director at Investec Asset Management, says since the noise began earlier this month most world markets have fallen somewhere between 10 and 15 percent from their highs.
If the events of the past month made you panic about your offshore investments or if you patted yourself on the back for not having any of these investments, your investment strategy is probably off course, asset managers and financial advisers say.
You should, they say, have a properly diversified offshore portfolio, which forms part of an overall investment portfolio that is determinedin accordance with your investment needs, investment time horizon and your appetite for risk.
If that is the case, when the trouble started some three weeks ago, you should have battened down the hatches and gone to sleep in your cabin, leaving your asset manager to do his or her job of steering the boat, Debbie Netto-Jonker, a leading financial planner with Netto Financial Services, says.
Netto-Jonker says investors who are in general managed or balanced funds that have a sensible blend of bonds, cash and equities did not see their funds shoot the lights out with high returns during the bull market. Butin the current market turbulence they should see the benefits of being well diversified.
Stay the course
If you were panicking as news of the market declines emerged, it is to be hoped that you didn't make any rash decisions.
Gardiner says "making fundamental changes to your portfolio during extreme turbulence is tantamount to trying to change the sails during a gale".
He says you first need to get your risk profile right (by looking at your needs, time horizon and appetite for risk), and then you can select an appropriate investment portfolio. If you do this, you will be able to sail through whatever conditions the markets experience.
Netto-Jonker says the real question long-term investors should be asking themselves is whether the fundamentals influencing the marketsin which they have invested have changed.
Only if the fundamentals have changed, should you consider changing your investment.
Most asset managers say the fundamentals of offshore markets haven't changed.
Gardiner says the world economy remains healthy, and global equity markets are still reasonably priced. He says over the long term, the current adjustments to the US credit markets will be healthy.
Netto-Jonker says you must remain focused on your long-term investment objectives and avoid any temptation to overreact to recent market movements.
In the long run, investment markets perform very well, but most investors fail to earn good returns, she says. The main reason for this is that investors allow their emotions to drive their investment decisions. This often resultsin investors withdrawing from the markets during periods of volatility, and in most cases this has negative long-term consequences, Netto-Jonker says.
It is in times like this that staying the course with your investment strategy will be rewarded in the long run, she says.
Kokkie Kooyman, the head of Sanlam Investment Management (SIM) Global who operates the Sanlam Global Best Ideas Fund and the rand-denominated fund that feeds into this offshore fund, agrees that a disciplined approach of investing onlyin undervalued equities - especially when those companies have above-average growth and have good, ethical and rational management - will generate superior returns over time.
Don't wait to get in
If you missed the recent offshore market turbulence because you are not invested in offshore markets, you may be pleased this time around, but it's not a good strategy to have all your eggs in one South African basket.
You should be exposed to offshore markets because it is a way of diversifying your risk: different markets often perform well or badly at different times.
Exposure to offshore markets also enables you to invest in sectors and companies that are not available in South Africa.
Investment gurus say you should buy into markets when they are low, rather than when they are delivering high returns and are about to peak before the next downturn.
This, together with the rand's relative strength against the major currencies, seems to indicate that if you don't have enough exposure to offshore markets, or if you need to rebalance your investments following good growthon local investments, now is an opportune time to move into offshore markets.
Kooyman says if you need to get into offshore markets, you shouldn't wait. He quotes First Rand Banking chief executive officer Paul Harris as saying: "'Wait and see' is the dumbest advice I have ever heard."
To generate excess returns, you have to take some risk, Kooyman says. You could wait until the crisis is over, but you'll forgo considerable upside, he adds.
You can always find undervalued, superior companies in any market, Kooyman says. However, at times investors push up (or down) certain sectors or geographies more than others as they (for a while) fallin or out of love with them.
Kooyman says over the past eight months the most undervalued markets have been South Korea and Taiwan, and they remain undervalued. Smaller cap stocksin China (listed in Hong Kong or Singapore) also still offer good value.
But, he says, SIM Global is increasingly finding good value in France, Germany, the United Kingdom and the US.
"At the moment the 'vision' on the future earnings of US banks is clouded by the uncertain outlook for loan growth and fee income, and the risk of increasing bad debts.
"But as surely as day follows night, the current sub-prime woes and feared US consumer spending slowdown will pass. When that happens, US banks will offer extremely good value."
Where the value lies
Kooyman says when investment banks, hedge funds and other investors that have been selling their shares in offshore markets go back into the market, they will initially avoid companies that are operating on borrowed money and ones with riskier strategies.
The preference will be for com-panies with proven track records that generate cash.Kooyman says the Sanlam Global Best Ideas Fund has been investingin these shares - the likes of US information technology companies Dell and Cisco, European media company Vivendi, German professional services company Deutsche Post, and US gas-drilling and exploration company Chesapeake - since January 2007.
He says his fund has also been invested in undervalued Chinese and Indian smaller companies, such as Great Wall Motors (a motor manufacturer in China), Global Green Tech (a beauty product manufacturer in China), Chaoda Modern Agriculture (a food manufacturer in China) and China Essence (a potato starch manufacturer in China).
These companies are unlikely to be affected by a global slowdown following the US sub-prime mortgage problems, Kooyman says.
Anil Thakersee, the managing director of Old Mutual Unit Trusts, agrees that current economic conditions and the relative valuations of local and offshore markets favour increasing offshore exposurein a portfolio with no or low exposure.
Offshore equity market valuations are at their most attractive levels relative to the JSE in several years, he says. For example, the historic price:earnings ratio of the US Standard & Poor's index is now at roughly the same level as the JSE, at 15 times.
At the same time, global interest rates have risen, and even offshore money market funds are offering relatively attractive returns.
"Should the local equity market become increasingly volatile in the next 12 months, it is likely that an offshore diversified portfolio will demonstrate lower volatility than one that is not. So when it comes to offshore investing, it is certainly more about managing risk than chasing returns," Thakersee says.
Looking ahead, he says, it is very difficult to forecast whether a local or an offshore investment will perform better.
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India faces battle for outsourcing
|
Saturday, August 25, 2007 |
|
Source:www.gyanin.com
As US and European companies look to cut costs by moving many of their operations abroad, India has stepped in to become a world leader in IT outsourcing.
However, success has attracted imitators and India is facing a fight to keep its position at the top.
India now leads the world in offshore outsourcing - the remote servicing of information technology (IT) or other business processes by staff based in India.
The value of outsourcing to India in 2007 is estimated at $47.8bn (£24bn), ten times what it was worth back in 1998.
Expansion is happening fast, and the IT outsourcing industry is predicted to continue growing at about 28% a year.
The sector has become a very important part of the overall economy of India, creating growth and new wealth in a country that has only enjoyed economic liberalisation since the early 1990s.
IT and business process outsourcing (BPO) services now account for 5.4% of India’s gross domestic product (GDP), and have had a huge impact on cities such as Bangalore, the centre of the industry.
Chasing pack
But India’s success in hi-tech services has not gone unnoticed.
From Mexico to Vietnam, local governments are busy creating investor-friendly tax policies, such as special ‘export-zone’ offices on the model of India, where offshore work is free of domestic taxes.
They are also encouraging the creation of new trade bodies to represent and promote their industry in the same way that India’s National Association of Software and Services Companies (Nasscom) has been doing since the 1980s.
One of main threats to India has been the expansion of the European Union (EU).
In 2004, the EU expanded east to accept ten new member states, and then went on to welcome Romania and Bulgaria into the union earlier this year.
As US and European companies look to cut costs by moving many of their operations abroad, India has stepped in to become a world leader in IT outsourcing.
However, success has attracted imitators and India is facing a fight to keep its position at the top.
India now leads the world in offshore outsourcing - the remote servicing of information technology (IT) or other business processes by staff based in India.
The value of outsourcing to India in 2007 is estimated at $47.8bn (£24bn), ten times what it was worth back in 1998.
Expansion is happening fast, and the IT outsourcing industry is predicted to continue growing at about 28% a year.
The sector has become a very important part of the overall economy of India, creating growth and new wealth in a country that has only enjoyed economic liberalisation since the early 1990s.
IT and business process outsourcing (BPO) services now account for 5.4% of India’s gross domestic product (GDP), and have had a huge impact on cities such as Bangalore, the centre of the industry.
Chasing pack
But India’s success in hi-tech services has not gone unnoticed.
From Mexico to Vietnam, local governments are busy creating investor-friendly tax policies, such as special ‘export-zone’ offices on the model of India, where offshore work is free of domestic taxes.
They are also encouraging the creation of new trade bodies to represent and promote their industry in the same way that India’s National Association of Software and Services Companies (Nasscom) has been doing since the 1980s.
One of main threats to India has been the expansion of the European Union (EU).
In 2004, the EU expanded east to accept ten new member states, and then went on to welcome Romania and Bulgaria into the union earlier this year.
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Boeing outsourcing about 150 information technology jobs
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Source:www.columbian.com
Boeing Co. is laying off about 150 employees in a computer network operations unit as it outsources information technology work to Computer Sciences Corp.
The workers, all but about two dozen of them in the Seattle area, received 60-day layoff notices last Friday, Boeing spokeswoman Cathy Rudolph said.
The affected employees are systems analysts, including administrators and design and integration specialists in Boeing's Engineering, Operations and Technology division, which has a work force of about 12,300.
El Segundo, Calif.-based CSC took over computer-systems monitoring, support and administration at Boeing's St. Louis-based defense arm in 2003. CSC will now handle that work for all of Boeing's U.S. locations, Rudolph said Thursday.
Some of the affected workers may find other jobs at Boeing, while others could be hired by CSC, Rudolph said.
As of July 31, Boeing had 157,430 employees worldwide.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
Boeing Co. is laying off about 150 employees in a computer network operations unit as it outsources information technology work to Computer Sciences Corp.
The workers, all but about two dozen of them in the Seattle area, received 60-day layoff notices last Friday, Boeing spokeswoman Cathy Rudolph said.
The affected employees are systems analysts, including administrators and design and integration specialists in Boeing's Engineering, Operations and Technology division, which has a work force of about 12,300.
El Segundo, Calif.-based CSC took over computer-systems monitoring, support and administration at Boeing's St. Louis-based defense arm in 2003. CSC will now handle that work for all of Boeing's U.S. locations, Rudolph said Thursday.
Some of the affected workers may find other jobs at Boeing, while others could be hired by CSC, Rudolph said.
As of July 31, Boeing had 157,430 employees worldwide.
© 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy.
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Offshore Outsourcing or have more, doing less
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Friday, August 24, 2007 |
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Source:prwallstreet.com
World market of Software grows by huge rates. The lion's share of this market belongs to Outsourcing or Offshore Programming. It is forecasted that in 2008 the World Outsourcing Market will take up to $500 milliards, European market -$322 milliards, Business Processes Outsourcing -$125 milliards and IT Outsourcing - $150 milliards.
The world market of Outsourcing draws special attention of analysts as it is not a classic consumer market of IT-services. In the world practice Outsourcing as a scheme of cooperating with the external suppliers of IT-services became the acknowledged mean of increasing work efficiency.
Key clients of the Offshore Programming projects are the companies from North America countries. Foreign partners search on Outsourcing projects is also effective in the Western Europe countries. This region has the best prospects in economic development and, consequently, is the most perspective consumer of software.
Here are some figures of Outsourcing Market: USA – 42 %, Europe –50%, Great Britain – 17%, Germany – 13%
Traditionally, speaking about the market of services of Offshore Programming, above all are mentioned India, China, Ireland, Mexico, Philippines. The leader’s of Offshore Software Development (India) turnover is about $7,7 milliards in a year.
Companies that collaborate with the Chinese partners are mainly oriented on product promotion to the market of China.
Ireland today is not the most effective choice with relation to expenses, but it is very successful variant for companies, that choose to create center of software development.
A key barrier in Mexico is insufficient English language proficiency of developers. Other drawback is absence of quality management standards in local IT-companies. Philippines are acknowledged as a good India alternative, if not to take into account the risks of political instability.
Companies from other countries are also ready to offer Offshore Services, for example, East Europe countries. Also should be mentioned Vietnam, where the amount of graduating students of IT-specialties increases more than 10% annually.
Today business customer need to have answers to the practical questions: how to have better outcome for less money; how to win competitive edges in the situation of limited resources; how rightly and effectively conduct the process of Outsourcing.
World market of Software grows by huge rates. The lion's share of this market belongs to Outsourcing or Offshore Programming. It is forecasted that in 2008 the World Outsourcing Market will take up to $500 milliards, European market -$322 milliards, Business Processes Outsourcing -$125 milliards and IT Outsourcing - $150 milliards.
The world market of Outsourcing draws special attention of analysts as it is not a classic consumer market of IT-services. In the world practice Outsourcing as a scheme of cooperating with the external suppliers of IT-services became the acknowledged mean of increasing work efficiency.
Key clients of the Offshore Programming projects are the companies from North America countries. Foreign partners search on Outsourcing projects is also effective in the Western Europe countries. This region has the best prospects in economic development and, consequently, is the most perspective consumer of software.
Here are some figures of Outsourcing Market: USA – 42 %, Europe –50%, Great Britain – 17%, Germany – 13%
Traditionally, speaking about the market of services of Offshore Programming, above all are mentioned India, China, Ireland, Mexico, Philippines. The leader’s of Offshore Software Development (India) turnover is about $7,7 milliards in a year.
Companies that collaborate with the Chinese partners are mainly oriented on product promotion to the market of China.
Ireland today is not the most effective choice with relation to expenses, but it is very successful variant for companies, that choose to create center of software development.
A key barrier in Mexico is insufficient English language proficiency of developers. Other drawback is absence of quality management standards in local IT-companies. Philippines are acknowledged as a good India alternative, if not to take into account the risks of political instability.
Companies from other countries are also ready to offer Offshore Services, for example, East Europe countries. Also should be mentioned Vietnam, where the amount of graduating students of IT-specialties increases more than 10% annually.
Today business customer need to have answers to the practical questions: how to have better outcome for less money; how to win competitive edges in the situation of limited resources; how rightly and effectively conduct the process of Outsourcing.
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Chevron to develop offshore project in Canada
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Source:www.mercurynews.com
Newfoundland and Labrador, Canada's eastern-most province, reached an agreement with San Ramon-based Chevron Corp. and other oil companies to develop the offshore Hebron-Ben Nevis heavy- crude project.
Under the memorandum of understanding, the government will buy a 4.9 percent stake in the Hebron project for $103.6 million, provincial Premier Danny Williams said today.
Negotiations to develop Hebron, which may contain more than 700 million barrels of oil, broke off in April 2006 after Chevron and other companies failed to agree on terms with the provincial government. The talks resumed this month.
Airlines
Allegiant Air will begin twice-a-week passenger service between Stockton Metropolitan Airport and Phoenix beginning Oct. 26. Allegiant, the only commercial jet airline serving San Joaquin County, currently operates five flights a week between Stockton and Las Vegas.
The announced nonstop service to Williams Gateway Airport, serving Phoenix-Mesa., will start with an introductory fare of $59 one way. Allegiant will use 130-seat MD-87 jet aircraft, slightly smaller than the 150-seat MD-80s it flies to Las Vegas five times a week Friday through Monday and Wednesday. The airport offers free parking.
Con-way Inc., the third-largest U.S. trucking company by market value based in San Mateo, said it will combine its three regional freight hauling units and centralize operations with headquarters in Ann Arbor, Mich. The units have operated with separate management and pricing for 24 years. . . . Scottrade, a leading branch-supported online investment firm, is opening a new branch office in Pleasanton. The branch, located at 6050 Johnson Drive in the Pleasanton Square Shopping Center, opens on Tuesday, Sept. 4. Scottrade's Pleasanton branch office is open Monday through Friday from 6 a.m. to 5 p.m. and can be reached at 925-467-1980
Newfoundland and Labrador, Canada's eastern-most province, reached an agreement with San Ramon-based Chevron Corp. and other oil companies to develop the offshore Hebron-Ben Nevis heavy- crude project.
Under the memorandum of understanding, the government will buy a 4.9 percent stake in the Hebron project for $103.6 million, provincial Premier Danny Williams said today.
Negotiations to develop Hebron, which may contain more than 700 million barrels of oil, broke off in April 2006 after Chevron and other companies failed to agree on terms with the provincial government. The talks resumed this month.
Airlines
Allegiant Air will begin twice-a-week passenger service between Stockton Metropolitan Airport and Phoenix beginning Oct. 26. Allegiant, the only commercial jet airline serving San Joaquin County, currently operates five flights a week between Stockton and Las Vegas.
The announced nonstop service to Williams Gateway Airport, serving Phoenix-Mesa., will start with an introductory fare of $59 one way. Allegiant will use 130-seat MD-87 jet aircraft, slightly smaller than the 150-seat MD-80s it flies to Las Vegas five times a week Friday through Monday and Wednesday. The airport offers free parking.
Con-way Inc., the third-largest U.S. trucking company by market value based in San Mateo, said it will combine its three regional freight hauling units and centralize operations with headquarters in Ann Arbor, Mich. The units have operated with separate management and pricing for 24 years. . . . Scottrade, a leading branch-supported online investment firm, is opening a new branch office in Pleasanton. The branch, located at 6050 Johnson Drive in the Pleasanton Square Shopping Center, opens on Tuesday, Sept. 4. Scottrade's Pleasanton branch office is open Monday through Friday from 6 a.m. to 5 p.m. and can be reached at 925-467-1980
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Offshore deal worth $16-billion to Newfoundland
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Thursday, August 23, 2007 |
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Source:www.canada.com
Newfoundland and Labrador Premier Danny Williams said Wednesday that an offshore deal reached with four major oil companies represents an unprecedented gain for the province.
The agreement to develop the Hebron-Ben Nevis offshore oilfield gives the province an equity stake of 4.9% in the project, estimated to contain 731 million barrels of recoverable oil.
The equity stake came at a cost of $110-million, but the deal will mean total revenue of $16-billion over the 25-year life of the project for the province. The federal government will earn $7-billion in the same period, Mr. Williams said.
The combative premier and the oil companies broke off negotiations on the project -- Newfoundland's fourth major oil development -- in April, 2006, when they couldn't agree to fiscal terms.
The premier came under severe criticism, both in his home province and in the oil community, for refusing to back down on his demands, which involve heavy provincial involvement and for which he was likened to Venezuela strongman Hugo Chavez.
The premier was in a triumphant mood Wednesday, proclaiming the memo of understanding was "historic" and the first step toward Newfoundland and Labrador "Taking real and meaningful ownership of our resources."
There is also an improved royalty regime tied to the price of oil. When oil rises above US$50 a barrel, the province will receive a super royalty of 6.5% of net revenue.
Construction could begin by 2010.
The Hebron negotiations were suspended by the oil companies in April 2006, but resumed last month. One of the main stumbling blocks had been the province's demand for an equity stake in the heavy oil project.
"Our goal was to surpass benefits of previous agreements," said Mr. Williams, who touted the investment in his province's workforce, including the local construction of the new oil platform. "Determination and strength of conviction has been our government's guide."
Newfoundland and Labrador Premier Danny Williams said Wednesday that an offshore deal reached with four major oil companies represents an unprecedented gain for the province.
The agreement to develop the Hebron-Ben Nevis offshore oilfield gives the province an equity stake of 4.9% in the project, estimated to contain 731 million barrels of recoverable oil.
The equity stake came at a cost of $110-million, but the deal will mean total revenue of $16-billion over the 25-year life of the project for the province. The federal government will earn $7-billion in the same period, Mr. Williams said.
The combative premier and the oil companies broke off negotiations on the project -- Newfoundland's fourth major oil development -- in April, 2006, when they couldn't agree to fiscal terms.
The premier came under severe criticism, both in his home province and in the oil community, for refusing to back down on his demands, which involve heavy provincial involvement and for which he was likened to Venezuela strongman Hugo Chavez.
The premier was in a triumphant mood Wednesday, proclaiming the memo of understanding was "historic" and the first step toward Newfoundland and Labrador "Taking real and meaningful ownership of our resources."
There is also an improved royalty regime tied to the price of oil. When oil rises above US$50 a barrel, the province will receive a super royalty of 6.5% of net revenue.
Construction could begin by 2010.
The Hebron negotiations were suspended by the oil companies in April 2006, but resumed last month. One of the main stumbling blocks had been the province's demand for an equity stake in the heavy oil project.
"Our goal was to surpass benefits of previous agreements," said Mr. Williams, who touted the investment in his province's workforce, including the local construction of the new oil platform. "Determination and strength of conviction has been our government's guide."
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Strategy, Service Driving Fortune 500 IT Outsourcing Decisions
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Source:www.earthtimes.org
Reducing costs is no longer the only driving force behind companies offshoring critical IT functions. Today's top performing organizations rank user satisfaction, achieving return on investment goals, and increasing time spent on strategic work higher in determining what to outsource and who they work with.
The findings were highlights of a benchmark study entitled "Who Outsourced The Outsourcers?" by Aberdeen Group of Boston, a leading provider of research and market intelligence. Aberdeen surveyed key IT decision-makers at over 200 enterprises spanning industries, geographies and company sizes. This study was sponsored in part by Software Paradigms International (SPI), a global IT and business applications solution provider headquartered in Atlanta, Georgia.
Findings demonstrate that Best in Class companies that achieve higher ROI develop effective communication procedures, partner with outsourcing providers which possess tailored skill sets, and maintain strong relationships with providers.
"Executives at large companies are developing sophisticated offshoring initiatives, looking for skilled providers with complex capabilities," said Ralph Rodriguez, Research Director, Technology Markets, Aberdeen. "They need providers with true consultative skills and the ability to be an innovative and strategic part of the global development team, not just lowest cost handlers of client requirements."
Increasingly, Fortune 500 companies look at multiple offshore IT outsourcing markets due to pressures beyond lowering costs. These include the need to focus more on strategic work, quicker project turnarounds, demands of 24/7 operations, and growing global competitiveness, notes the report.
"Tomorrow's market leaders are developing increasingly sophisticated offshoring initiatives, partnering with skilled providers offering innovative and strategic contributions to the process, true consultative skills and flawless project manage
Reducing costs is no longer the only driving force behind companies offshoring critical IT functions. Today's top performing organizations rank user satisfaction, achieving return on investment goals, and increasing time spent on strategic work higher in determining what to outsource and who they work with.
The findings were highlights of a benchmark study entitled "Who Outsourced The Outsourcers?" by Aberdeen Group of Boston, a leading provider of research and market intelligence. Aberdeen surveyed key IT decision-makers at over 200 enterprises spanning industries, geographies and company sizes. This study was sponsored in part by Software Paradigms International (SPI), a global IT and business applications solution provider headquartered in Atlanta, Georgia.
Findings demonstrate that Best in Class companies that achieve higher ROI develop effective communication procedures, partner with outsourcing providers which possess tailored skill sets, and maintain strong relationships with providers.
"Executives at large companies are developing sophisticated offshoring initiatives, looking for skilled providers with complex capabilities," said Ralph Rodriguez, Research Director, Technology Markets, Aberdeen. "They need providers with true consultative skills and the ability to be an innovative and strategic part of the global development team, not just lowest cost handlers of client requirements."
Increasingly, Fortune 500 companies look at multiple offshore IT outsourcing markets due to pressures beyond lowering costs. These include the need to focus more on strategic work, quicker project turnarounds, demands of 24/7 operations, and growing global competitiveness, notes the report.
"Tomorrow's market leaders are developing increasingly sophisticated offshoring initiatives, partnering with skilled providers offering innovative and strategic contributions to the process, true consultative skills and flawless project manage