Is IT dead?
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Monday, March 31, 2008 |
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Source : Click
As valuations have factored in the pessimistic market sentiment, large-cap IT stocks appear to be unduly battered now.
It has been a year since the dark clouds around the Indian information technology (IT) industry have been squaring in, and the storm in the form of a US slowdown appears to be knocking at the doors.
Last fiscal, the rupee appreciated nearly 12 per cent. Next fiscal, software companies, which have their facilities located in software technology parks or outside special economic zones (SEZs), will be brought under the tax net – a biting on net margins.
As if this were not enough, the US is facing a slowdown, which many perceive may turn into a recession. Not surprisingly, many investors have already reduced their exposure to IT stocks, and valuations of software companies are close to the lower-end of their historical price-earnings multiples.
Although it appears rational to expect IT budget cuts and a slowdown in Indian IT-companies' order flows, there is a strong view from the other side of the argument.
Fortunately, the trend emerging from the guidance of global IT companies supports the more optimistic argument that a slowdown will prompt greater outsourcing, and in turn, higher volumes for large software companies.
Examples include good results in technology consulting by Accenture, strong international growth guidance by IBM and Cognizant for 2008 of achieving 'at least 38 per cent' revenue growth.
All these signs, put together, hint at a lesser than estimated fundamental deterioration of the sector.
According to a Forrester Research market sizing forecast titled “Global IT 2008 Market Outlook”, the US market is likely to be the laggard in the purchase of IT goods and services in 2008, while the Asia-Pacific will be the pacesetter.
Forrester estimates the global IT purchases to equal $ 1.7 trillion in 2008, growing by 6 per cent, after a 12 per cent increase in 2007.
Of this spending, nearly $380 billion is likely to go toward purchases of software products and services – an area where Indian IT companies are strong.
The growth in budgets for software products is pegged at 8 per cent for 2008, down slightly from 11 per cent in 2007. The decline of the dollar is factored in, in these forecasts.
Forrester expects Asia-Pacific, and the oil exporting area of Eastern Europe, Middle East, and Africa to be the main engines of growth in IT purchases this year.
In a more recent report titled “European IT 2008 market outlook”, Forrester suggests that the European IT market will grow faster than its US counterpart, with stronger investments in software than purchases of computer and communications equipment.
The European IT spends is likely to grow 3.5 per cent in euro terms in 2008 – higher than the US growth of 2.8 per cent in dollars. Measured in dollars, this growth will be amplified further.
Now, going by the logic spelled out by economists, analysts, and company managements alike, a slowdown in the US would translate into the need to cut costs. This in turn, will fuel outsourcing, which will rather benefit the Indian software players than causing a negative impact.
Therefore, even though there may be a slowdown in overall IT spending, large Indian IT companies may not lose too much of ground, given their dominant positions in the market as well as their global presence.
Outsource IT?
“The secular offshoring trend remains intact, although there could be some challenging times in the short-term on account of the US slowdown,” says Atul Penkar, an IT fund manager at Birla Sun Life.
“However, business is likely to pick up in the medium- to long-term as cost pressures on US companies lead to more offshoring,” he adds.
Analysts sound unanimous about the volume growth holding steady in the coming year for Indian IT majors. This is likely for one more reason that the Indian software companies have a proven execution model for managing costs competitively, which will come handy for the US clients during a recession.
Besides, to counter the cost pressures, most Indian software outfits have managed price-hikes in the range of 5-7 per cent for new contracts and 1-3 per cent for renewals, over the past year due to dollar depreciation. The only risk that may now hold is that of a freeze on pricing going forward.
Value picks
Among the Indian IT pack, it is mainly the large-cap companies, which can boast of a diverse global presence and a varied client mix, which could help them weather any slowdown in demand for IT services.
Thus, Infosys, Tata Consultancy Services (TCS), Satyam, Wipro and HCL Technologies remain the top picks. After a hefty beating over the past few months, their valuations are down to the lowest range of the respective historical price-earnings multiple bands.
This means that most of the bad news surrounding the prospects of these companies has already been factored in. The companies indicate a cautious stance, in their top and bottom line guidance going forward.
However, except for TCS, no other company has mentioned any budget cut or revenue loss from their clients so far. Indications of further worsening, if any and which is not yet discounted in the share price, will perhaps be visible in the fourth quarter results of software companies by early next month.
On the banking and financial services front, there may be some risk of demand slowdown, but Indian software firms are rapidly scaling up their abilities in other verticals to keep the ball rolling. Wage inflation, on the other hand is likely to be countered by some short-term measures toward salary hikes in addition to improving utilisation levels and tackling attrition.
To sum it up all, Indian IT players may not be entirely helpless in case the US demand slows down significantly. However, mid- and small-cap software outfits are likely to be swept astray due to higher tax burden and the lack of proper risk management systems to manage foreign exchange risks.
Consequently, investors with a slightly longer term perspective and a little risk appetite can place their bets on large-cap Indian software companies to be able to reap decent rewards.
As valuations have factored in the pessimistic market sentiment, large-cap IT stocks appear to be unduly battered now.
It has been a year since the dark clouds around the Indian information technology (IT) industry have been squaring in, and the storm in the form of a US slowdown appears to be knocking at the doors.
Last fiscal, the rupee appreciated nearly 12 per cent. Next fiscal, software companies, which have their facilities located in software technology parks or outside special economic zones (SEZs), will be brought under the tax net – a biting on net margins.
As if this were not enough, the US is facing a slowdown, which many perceive may turn into a recession. Not surprisingly, many investors have already reduced their exposure to IT stocks, and valuations of software companies are close to the lower-end of their historical price-earnings multiples.
Although it appears rational to expect IT budget cuts and a slowdown in Indian IT-companies' order flows, there is a strong view from the other side of the argument.
Fortunately, the trend emerging from the guidance of global IT companies supports the more optimistic argument that a slowdown will prompt greater outsourcing, and in turn, higher volumes for large software companies.
Examples include good results in technology consulting by Accenture, strong international growth guidance by IBM and Cognizant for 2008 of achieving 'at least 38 per cent' revenue growth.
All these signs, put together, hint at a lesser than estimated fundamental deterioration of the sector.
According to a Forrester Research market sizing forecast titled “Global IT 2008 Market Outlook”, the US market is likely to be the laggard in the purchase of IT goods and services in 2008, while the Asia-Pacific will be the pacesetter.
Forrester estimates the global IT purchases to equal $ 1.7 trillion in 2008, growing by 6 per cent, after a 12 per cent increase in 2007.
Of this spending, nearly $380 billion is likely to go toward purchases of software products and services – an area where Indian IT companies are strong.
The growth in budgets for software products is pegged at 8 per cent for 2008, down slightly from 11 per cent in 2007. The decline of the dollar is factored in, in these forecasts.
Forrester expects Asia-Pacific, and the oil exporting area of Eastern Europe, Middle East, and Africa to be the main engines of growth in IT purchases this year.
In a more recent report titled “European IT 2008 market outlook”, Forrester suggests that the European IT market will grow faster than its US counterpart, with stronger investments in software than purchases of computer and communications equipment.
The European IT spends is likely to grow 3.5 per cent in euro terms in 2008 – higher than the US growth of 2.8 per cent in dollars. Measured in dollars, this growth will be amplified further.
Now, going by the logic spelled out by economists, analysts, and company managements alike, a slowdown in the US would translate into the need to cut costs. This in turn, will fuel outsourcing, which will rather benefit the Indian software players than causing a negative impact.
Therefore, even though there may be a slowdown in overall IT spending, large Indian IT companies may not lose too much of ground, given their dominant positions in the market as well as their global presence.
Outsource IT?
“The secular offshoring trend remains intact, although there could be some challenging times in the short-term on account of the US slowdown,” says Atul Penkar, an IT fund manager at Birla Sun Life.
“However, business is likely to pick up in the medium- to long-term as cost pressures on US companies lead to more offshoring,” he adds.
Analysts sound unanimous about the volume growth holding steady in the coming year for Indian IT majors. This is likely for one more reason that the Indian software companies have a proven execution model for managing costs competitively, which will come handy for the US clients during a recession.
Besides, to counter the cost pressures, most Indian software outfits have managed price-hikes in the range of 5-7 per cent for new contracts and 1-3 per cent for renewals, over the past year due to dollar depreciation. The only risk that may now hold is that of a freeze on pricing going forward.
Value picks
Among the Indian IT pack, it is mainly the large-cap companies, which can boast of a diverse global presence and a varied client mix, which could help them weather any slowdown in demand for IT services.
Thus, Infosys, Tata Consultancy Services (TCS), Satyam, Wipro and HCL Technologies remain the top picks. After a hefty beating over the past few months, their valuations are down to the lowest range of the respective historical price-earnings multiple bands.
This means that most of the bad news surrounding the prospects of these companies has already been factored in. The companies indicate a cautious stance, in their top and bottom line guidance going forward.
However, except for TCS, no other company has mentioned any budget cut or revenue loss from their clients so far. Indications of further worsening, if any and which is not yet discounted in the share price, will perhaps be visible in the fourth quarter results of software companies by early next month.
On the banking and financial services front, there may be some risk of demand slowdown, but Indian software firms are rapidly scaling up their abilities in other verticals to keep the ball rolling. Wage inflation, on the other hand is likely to be countered by some short-term measures toward salary hikes in addition to improving utilisation levels and tackling attrition.
To sum it up all, Indian IT players may not be entirely helpless in case the US demand slows down significantly. However, mid- and small-cap software outfits are likely to be swept astray due to higher tax burden and the lack of proper risk management systems to manage foreign exchange risks.
Consequently, investors with a slightly longer term perspective and a little risk appetite can place their bets on large-cap Indian software companies to be able to reap decent rewards.
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IT Offshore Outsourcing Takes a Toll on University IT Enrollment
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Saturday, March 29, 2008 |
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Source : Click
In recent years, there has been an increase in information system-related jobs outsourced to overseas countries. Knowledge of this trend in the business world has resulted in many students questioning their likelihood of post-graduate career success in the field of information technology.
The newly released issue of the Journal of Information Technology Research features articles by international experts in the fields of outsourcing and the IS curriculum. The article titled "Information Systems, Offshore Outsourcing, and Relevancy in the Business School Curriculum" -- authored by William J. Tastle, University of Iceland and Ithaca College, USA, Bruce A. White, Quinnipiac University, USA, Ársæll Valfells, University of Iceland, Iceland, and Peter Shackleton, Victoria University, Australia addresses future prospects for the field information technology within a university environment.
"The long-term future for IS education seems bleak at best unless the IS curriculum is reoriented to address these critical issues that are also apparently neglected by some businesses, and our instruction is modified to make IS graduates more appealing and productive to business," the authors write. "Outsourcing of IT functions is not a new reality for many organizations in the United States. However, what originated as a domestic approach to business management has increasingly been refocused to explore the cost savings in outsourcing overseas.
"Certainly, there will always be a set of small- to medium-sized companies that cannot or will not engage in offshoring, and those companies will require graduates with the current skill set," write the authors. "But even in companies that do not use offshoring, the softer skills of contract law, contract management and negotiation will grow with the increasing complexity of information systems. Even small- and medium-sized enterprises will be contracting for services and purchasing software package solutions."
In recent years, there has been an increase in information system-related jobs outsourced to overseas countries. Knowledge of this trend in the business world has resulted in many students questioning their likelihood of post-graduate career success in the field of information technology.
The newly released issue of the Journal of Information Technology Research features articles by international experts in the fields of outsourcing and the IS curriculum. The article titled "Information Systems, Offshore Outsourcing, and Relevancy in the Business School Curriculum" -- authored by William J. Tastle, University of Iceland and Ithaca College, USA, Bruce A. White, Quinnipiac University, USA, Ársæll Valfells, University of Iceland, Iceland, and Peter Shackleton, Victoria University, Australia addresses future prospects for the field information technology within a university environment.
"The long-term future for IS education seems bleak at best unless the IS curriculum is reoriented to address these critical issues that are also apparently neglected by some businesses, and our instruction is modified to make IS graduates more appealing and productive to business," the authors write. "Outsourcing of IT functions is not a new reality for many organizations in the United States. However, what originated as a domestic approach to business management has increasingly been refocused to explore the cost savings in outsourcing overseas.
"Certainly, there will always be a set of small- to medium-sized companies that cannot or will not engage in offshoring, and those companies will require graduates with the current skill set," write the authors. "But even in companies that do not use offshoring, the softer skills of contract law, contract management and negotiation will grow with the increasing complexity of information systems. Even small- and medium-sized enterprises will be contracting for services and purchasing software package solutions."
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Intrinsyc Software Announces New Soleus Design Win
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Friday, March 28, 2008 |
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Source : Click
Intrinsyc Software International (Toronto:ICS.TO) today announced the signing of an agreement under which an existing Soleus licensee will develop its third Soleus-based product. This Original Equipment Manufacturer (OEM), a leading global handset producer, originally signed an agreement to license the Soleus software platform in March 2007 for the development of a GPS-enabled handset, and signed an additional agreement in October 2007 to see Soleus used in a Personal Navigation Device (PND) with mobile phone capabilities. This OEM has now launched development of a third connected device to be based on Soleus. This agreement marks Intrinsyc's fifth Soleus design win, in addition to its two silicon platform wins.
"With seven product development efforts, including the recently launched MSI 5608 at CES 2008, the momentum for Intrinsyc and our Soleus software platform is growing," said Glenda Dorchak, Chairman and CEO, Intrinsyc Software. "As our focus for this year is to not only close additional design wins, but to enable our customers to bring their Soleus-based products to market, we anticipate additional customer product launches in the coming months. Today's announcement confirms that Soleus provides OEMs with lower development costs and improved time-to-market, such that they benefit from developing multiple products on the Soleus platform."
The OEM's third Soleus-based product is a sleek next-generation PND slated to go beyond point-to-point navigation, offering real-time search capabilities and a customizable navigation experience for leisure or business and daily commute-type travel. The PND also leverages gpsOne technology, currently used by over 300 million GPS units for positioning capabilities. Development on this OEM's third Soleus-based product is already underway, and upon its commercial release Intrinsyc will be entitled to receive royalty revenues. The timeline for the release of the device and financial terms of the agreement were not disclosed.
Soleus is a comprehensive handheld software solution, with pre-certified telephony and a large application portfolio, which enables handset manufacturers to rapidly develop and deploy an array of wireless consumer devices. Built on Windows® Embedded CE, the flexible Soleus software platform allows numerous feature-set variations to meet the requirements of multiple handset designs and form factors.
Intrinsyc will be attending CTIA Wireless 2008 in Las Vegas, April 1-3, 2008, and will be demonstrating its latest software solutions for wireless high level operating systems (HLOS). Demonstrations will include Personal Navigation Devices, the Soleus(TM)-based MSI 5608 MDTV mobile phone and the latest touch-enabled prototypes. Intrinsyc technology and expertise will be on display in booth 6505-3D in the Canada Pavilion, Hall N2/N1 in the Las Vegas Convention Center. Intrinsyc management will also be available for one-on-one interviews and discussions. To arrange a specific time to meet with a member of the Intrinsyc management team, please contact pr@intrinsyc.com.
About Intrinsyc Software International, Inc.
Intrinsyc provides wireless software solutions that enable next-generation handheld products, including mobile handsets, smartphones and converged devices. The company's software products, engineering services, and years of expertise help device makers, service providers, and silicon providers deliver compelling wireless products with faster time-to-market and improved development cost. Intrinsyc is the licensor of the Soleus(TM) software platform based on Windows® Embedded CE for consumer handset development. Intrinsyc is a Microsoft® Windows® Embedded Gold Partner, the 2007 Windows Embedded Excellence Award winner for System Integrator, and a Symbian Platinum Partner. Intrinsyc is publicly traded on the Toronto Stock Exchange (symbol: ICS) and headquartered in Vancouver, Canada with offices in the United States, United Kingdom, Taiwan and Barbados.
® Intrinsyc, Soleus and their respective logos are trademarks, registered and otherwise, of Intrinsyc Software International, Inc. in Canada, European Union, Taiwan, U.S.A. and other jurisdictions. Other products and services mentioned in this document are identified by the trademarks or service marks of their respective companies or organizations.
Forward-Looking Statements
This press release contains statements, which to the extent that they are not recitations of historical fact, may constitute forward-looking information. Such forward-looking statements may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "predicts", "potential", "targeted", "plans", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. These forward-looking statements include, without limitation, statements about the Company's market opportunities, strategies, competition, expected activities and expenditures as the Company pursues its business plan, the adequacy of the Company's available cash resources and other statements about events, conditions or results that may occur in the future. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, such as business and economic risks and uncertainties, including the risks and uncertainties set out in the Company's Annual Information Form. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change, except as required by law. For the reasons set forth above, persons reading this press release should not place undue reliance on forward-looking statements.
Intrinsyc Software International (Toronto:ICS.TO) today announced the signing of an agreement under which an existing Soleus licensee will develop its third Soleus-based product. This Original Equipment Manufacturer (OEM), a leading global handset producer, originally signed an agreement to license the Soleus software platform in March 2007 for the development of a GPS-enabled handset, and signed an additional agreement in October 2007 to see Soleus used in a Personal Navigation Device (PND) with mobile phone capabilities. This OEM has now launched development of a third connected device to be based on Soleus. This agreement marks Intrinsyc's fifth Soleus design win, in addition to its two silicon platform wins.
"With seven product development efforts, including the recently launched MSI 5608 at CES 2008, the momentum for Intrinsyc and our Soleus software platform is growing," said Glenda Dorchak, Chairman and CEO, Intrinsyc Software. "As our focus for this year is to not only close additional design wins, but to enable our customers to bring their Soleus-based products to market, we anticipate additional customer product launches in the coming months. Today's announcement confirms that Soleus provides OEMs with lower development costs and improved time-to-market, such that they benefit from developing multiple products on the Soleus platform."
The OEM's third Soleus-based product is a sleek next-generation PND slated to go beyond point-to-point navigation, offering real-time search capabilities and a customizable navigation experience for leisure or business and daily commute-type travel. The PND also leverages gpsOne technology, currently used by over 300 million GPS units for positioning capabilities. Development on this OEM's third Soleus-based product is already underway, and upon its commercial release Intrinsyc will be entitled to receive royalty revenues. The timeline for the release of the device and financial terms of the agreement were not disclosed.
Soleus is a comprehensive handheld software solution, with pre-certified telephony and a large application portfolio, which enables handset manufacturers to rapidly develop and deploy an array of wireless consumer devices. Built on Windows® Embedded CE, the flexible Soleus software platform allows numerous feature-set variations to meet the requirements of multiple handset designs and form factors.
Intrinsyc will be attending CTIA Wireless 2008 in Las Vegas, April 1-3, 2008, and will be demonstrating its latest software solutions for wireless high level operating systems (HLOS). Demonstrations will include Personal Navigation Devices, the Soleus(TM)-based MSI 5608 MDTV mobile phone and the latest touch-enabled prototypes. Intrinsyc technology and expertise will be on display in booth 6505-3D in the Canada Pavilion, Hall N2/N1 in the Las Vegas Convention Center. Intrinsyc management will also be available for one-on-one interviews and discussions. To arrange a specific time to meet with a member of the Intrinsyc management team, please contact pr@intrinsyc.com.
About Intrinsyc Software International, Inc.
Intrinsyc provides wireless software solutions that enable next-generation handheld products, including mobile handsets, smartphones and converged devices. The company's software products, engineering services, and years of expertise help device makers, service providers, and silicon providers deliver compelling wireless products with faster time-to-market and improved development cost. Intrinsyc is the licensor of the Soleus(TM) software platform based on Windows® Embedded CE for consumer handset development. Intrinsyc is a Microsoft® Windows® Embedded Gold Partner, the 2007 Windows Embedded Excellence Award winner for System Integrator, and a Symbian Platinum Partner. Intrinsyc is publicly traded on the Toronto Stock Exchange (symbol: ICS) and headquartered in Vancouver, Canada with offices in the United States, United Kingdom, Taiwan and Barbados.
® Intrinsyc, Soleus and their respective logos are trademarks, registered and otherwise, of Intrinsyc Software International, Inc. in Canada, European Union, Taiwan, U.S.A. and other jurisdictions. Other products and services mentioned in this document are identified by the trademarks or service marks of their respective companies or organizations.
Forward-Looking Statements
This press release contains statements, which to the extent that they are not recitations of historical fact, may constitute forward-looking information. Such forward-looking statements may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the Company's underlying assumptions. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "predicts", "potential", "targeted", "plans", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved. These forward-looking statements include, without limitation, statements about the Company's market opportunities, strategies, competition, expected activities and expenditures as the Company pursues its business plan, the adequacy of the Company's available cash resources and other statements about events, conditions or results that may occur in the future. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, such as business and economic risks and uncertainties, including the risks and uncertainties set out in the Company's Annual Information Form. The Company's forward-looking statements are based on the beliefs, expectations and opinions of management on the date the statements are made, and the Company does not assume any obligation to update forward-looking statements if circumstances or management's beliefs, expectations or opinions should change, except as required by law. For the reasons set forth above, persons reading this press release should not place undue reliance on forward-looking statements.
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Dutton Associates Announces Investment Opinion: American Software Strong Buy Rating In Update Coverage By Dutton Associates
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Thursday, March 27, 2008 |
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Source : Click
Dutton Associates continues its coverage of American Software maintaining a Strong Buy rating and a $8.40 price target. The 10-page report by Dutton senior analyst David P. Soetebier, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
American Software Inc. is a leading supplier of enterprise management software and services. Through the 88%-owned Logility (NASDAQ: LGTY) the Company is a leader in Supply Chain Management (SCM) software. A key strength is the Company´s strong market share position in the growing demand for SCM software. We expect the demand for SCM software to become even more important as major companies increasingly outsource production driving the need to optimally manage their supply chains as the long supply line amplifies mistakes. In addition to its internal strengths, the Company´s strong balance sheet allows it to take advantage of growth opportunities either internally or through acquisitions. Our current estimate for the April 2009 year is now FD EPS of $0.42, (down from earlier estimate of $0.48) on revenue growth of 15% to $104.1 million (down from $111.8 million). In addition to providing investors with longer-term growth potential, the Company currently pays a cash dividend of $0.09 per share per quarter.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $74,000 from the Company for 11 Research Reports with coverage commencing on 1/03/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst´s personal views about the subject securities or issuer. Neither the analyst´s compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
Dutton Associates continues its coverage of American Software maintaining a Strong Buy rating and a $8.40 price target. The 10-page report by Dutton senior analyst David P. Soetebier, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.
American Software Inc. is a leading supplier of enterprise management software and services. Through the 88%-owned Logility (NASDAQ: LGTY) the Company is a leader in Supply Chain Management (SCM) software. A key strength is the Company´s strong market share position in the growing demand for SCM software. We expect the demand for SCM software to become even more important as major companies increasingly outsource production driving the need to optimally manage their supply chains as the long supply line amplifies mistakes. In addition to its internal strengths, the Company´s strong balance sheet allows it to take advantage of growth opportunities either internally or through acquisitions. Our current estimate for the April 2009 year is now FD EPS of $0.42, (down from earlier estimate of $0.48) on revenue growth of 15% to $104.1 million (down from $111.8 million). In addition to providing investors with longer-term growth potential, the Company currently pays a cash dividend of $0.09 per share per quarter.
About Dutton Associates
Dutton Associates is one of the largest independent investment research firms in the U.S. Its 30 senior analysts are primarily CFAs and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.
The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $74,000 from the Company for 11 Research Reports with coverage commencing on 1/03/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst´s personal views about the subject securities or issuer. Neither the analyst´s compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.
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Indian IT services market to grow at 18.6%
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Wednesday, March 26, 2008 |
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Source : Click
Indian information technology (IT) services market will remain the fastest growing in the Asia Pacific region, with a compounded annual growth rate of 18.6 per cent, according to the ‘Asia Pacific IT Services Market and Forecast, 2006-2011’ report by Springboard Research. The report projects the IT services market in the Asia Pacific region to grow to $55.9 billion by 2011.
China will, however, offer the largest market opportunity in dollar terms at the end of the forecast period, says the report. Phil Hassey, vice president-services Research at Springboard Research says, “Although in some quarters it could be expected that the Indian market would grow even more rapidly, it is still fragmented and a long way from maturity.”
“Most local services providers, aside from the worthy headline grabbers such as Tata, IBM and Wipro are based within a city or state with a narrow capability range. National coverage is limited, and typically the engagement cost and contract value pales in comparison on a 'per capita' basis when compared with Australia, Hong Kong or Singapore,” he adds.
The report further shows that application hosting will grow at 19.5 per cent a year between 2007 and 2011 to register the fastest growth during the forecast period. Meanwhile, enterprise application integration at $7.8 billion will continue to be the largest component of the market by 2011. However, according to the study enterprise IT outsourcing, which was the largest market in 2007, will reduce its relative size and weighting in the market by 2011.
Indian information technology (IT) services market will remain the fastest growing in the Asia Pacific region, with a compounded annual growth rate of 18.6 per cent, according to the ‘Asia Pacific IT Services Market and Forecast, 2006-2011’ report by Springboard Research. The report projects the IT services market in the Asia Pacific region to grow to $55.9 billion by 2011.
China will, however, offer the largest market opportunity in dollar terms at the end of the forecast period, says the report. Phil Hassey, vice president-services Research at Springboard Research says, “Although in some quarters it could be expected that the Indian market would grow even more rapidly, it is still fragmented and a long way from maturity.”
“Most local services providers, aside from the worthy headline grabbers such as Tata, IBM and Wipro are based within a city or state with a narrow capability range. National coverage is limited, and typically the engagement cost and contract value pales in comparison on a 'per capita' basis when compared with Australia, Hong Kong or Singapore,” he adds.
The report further shows that application hosting will grow at 19.5 per cent a year between 2007 and 2011 to register the fastest growth during the forecast period. Meanwhile, enterprise application integration at $7.8 billion will continue to be the largest component of the market by 2011. However, according to the study enterprise IT outsourcing, which was the largest market in 2007, will reduce its relative size and weighting in the market by 2011.
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BT says to hire up to 300 in India centre
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NEW DELHI (Reuters) - British telecoms firm BT Group Plc said on Tuesday it would hire up to 300 people in a global operation centre in India, as it aims to outsource more operations to emerging markets to keep costs lower.
The new facility at Gurgaon will support BT's procurement, legal, finance and human resource operations, the company said in a statement.
"We have been working successfully in India for many years with partners who handle some of our non-core but mission critical activities," Chief Executive Ben Verwaayen said in the statement.
BT said it contributed 2 percent to India's $50 billion software services exports, and planned to step up outsourcing to India. The company has also built operation centres in Hungary, Brazil and China.
NEW DELHI (Reuters) - British telecoms firm BT Group Plc said on Tuesday it would hire up to 300 people in a global operation centre in India, as it aims to outsource more operations to emerging markets to keep costs lower.
The new facility at Gurgaon will support BT's procurement, legal, finance and human resource operations, the company said in a statement.
"We have been working successfully in India for many years with partners who handle some of our non-core but mission critical activities," Chief Executive Ben Verwaayen said in the statement.
BT said it contributed 2 percent to India's $50 billion software services exports, and planned to step up outsourcing to India. The company has also built operation centres in Hungary, Brazil and China.
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AKT Tech`s new software
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Tuesday, March 25, 2008 |
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Nashik-based software company, AKT Technologies Limited, has launched a new software ‘AKT Freedom’, a combination of nine modules – accounts, inventory, payroll, time office, attendance, recruitment, online test, share bazaar and family manager.
The company has set up a 24x7 call centre to give pre-sales enquiry and post-sales support for its products and services to help its dealers in their operations and to meet their needs in real time.
The company is also looking forward to outsourcing the business process of other companies.
Hence, it is standing by to accept the voice-based outsourcing obligations wherein it will accommodate the entire responsibility of its operation. AKT Technologies, established in 2005, currently has 200 employees.
Nashik-based software company, AKT Technologies Limited, has launched a new software ‘AKT Freedom’, a combination of nine modules – accounts, inventory, payroll, time office, attendance, recruitment, online test, share bazaar and family manager.
The company has set up a 24x7 call centre to give pre-sales enquiry and post-sales support for its products and services to help its dealers in their operations and to meet their needs in real time.
The company is also looking forward to outsourcing the business process of other companies.
Hence, it is standing by to accept the voice-based outsourcing obligations wherein it will accommodate the entire responsibility of its operation. AKT Technologies, established in 2005, currently has 200 employees.
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Outsourcing security tasks brings controversy
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Outsourcing security gives in-house IT staff a chance to be freed up from mundane tasks, but not everyone likes it
When it comes to outsourcing security functions, skepticism still rules the day for many users. The idea of handing over control of network security to an outside firm paid to maintain gear, monitor for attacks, perform scans, collect logs or update security software for employees is, to say the least, controversial.
Security managers are split on the issue, arguing it's either a boon or bane for the company. According to advocates, outsourcing security gives in-house IT staff a chance to be freed up from mundane tasks to deal with more strategic matters without having to take on additional staff. The naysayers worry that outsourcing means losing sight of security risks because outsiders will mechanically follow a contract without thinking critically enough. Whether outsourcing is cost-effective is part of the debate, too, but the central question of control stirs the greater emotion.
Those bullish on security outsourcing say it's a way to move their in-house security specialists, already in short supply, into more strategic jobs while making sure everyday tasks get done.
"We either have to bring in more internal IT people or get other people through outsourcing security services," says Andre Gold, lead, IT risk management in the North American arm of ING, the Holland-based global financial services firm.
Gold says tasks such as patch and vulnerability management tasks or antivirus support are consuming a lot of staff time that might be better used in strategic risk-management operations for online business goals with partners and customers, for instance.
"I'd rather push the ING people up the ladder," Gold says, noting that next month ING expects to select at least one security outsourcing provider -- it may be offshore in India or elsewhere -- for large, multiyear contracts to handle a wide variety of data and network-security management remotely.
"I call it security right-sourcing," Gold says, adding that ING already outsources some IT maintenance and application development. Consequently, advocating security outsourcing was not a culture shock at the company. Gold says he expects security outsourcing to prove cost-effective over adding in-house staff, but he says in this case, it's not the primary motivator for doing it.
Outsourcing security gives in-house IT staff a chance to be freed up from mundane tasks, but not everyone likes it
When it comes to outsourcing security functions, skepticism still rules the day for many users. The idea of handing over control of network security to an outside firm paid to maintain gear, monitor for attacks, perform scans, collect logs or update security software for employees is, to say the least, controversial.
Security managers are split on the issue, arguing it's either a boon or bane for the company. According to advocates, outsourcing security gives in-house IT staff a chance to be freed up from mundane tasks to deal with more strategic matters without having to take on additional staff. The naysayers worry that outsourcing means losing sight of security risks because outsiders will mechanically follow a contract without thinking critically enough. Whether outsourcing is cost-effective is part of the debate, too, but the central question of control stirs the greater emotion.
Those bullish on security outsourcing say it's a way to move their in-house security specialists, already in short supply, into more strategic jobs while making sure everyday tasks get done.
"We either have to bring in more internal IT people or get other people through outsourcing security services," says Andre Gold, lead, IT risk management in the North American arm of ING, the Holland-based global financial services firm.
Gold says tasks such as patch and vulnerability management tasks or antivirus support are consuming a lot of staff time that might be better used in strategic risk-management operations for online business goals with partners and customers, for instance.
"I'd rather push the ING people up the ladder," Gold says, noting that next month ING expects to select at least one security outsourcing provider -- it may be offshore in India or elsewhere -- for large, multiyear contracts to handle a wide variety of data and network-security management remotely.
"I call it security right-sourcing," Gold says, adding that ING already outsources some IT maintenance and application development. Consequently, advocating security outsourcing was not a culture shock at the company. Gold says he expects security outsourcing to prove cost-effective over adding in-house staff, but he says in this case, it's not the primary motivator for doing it.
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RP software industry forms group for global marketing
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Monday, March 24, 2008 |
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The Philippine Software Industry Association (PSIA) is forming a consortium that will market Philippine-made software overseas.
Industry officials said the consortium is going to an outsourcing forum in New York this July with hopes of making some deals.
"This is a coming together of software companies to form a consortium of smaller software developers in the country so they can sell bigger," said Ma. Rosario Gruet, a PSIA director.
"We are building an inventory of skills that we can showcase abroad. We want to work together instead of compete with one another," she said.
Gruet said PSIA is working closely with the Department of Trade and Industry to sell Filipino software initially as a service, especially with the popularity of offshoring and outsourcing (O&O).
Blast Asia president and chief executive Arup Maity estimated the PSIA's combined revenues at about $300 million in 2007. The group has 110 members at present.
According to a report by the Business Process Association of the Philippines, the software development industry is one of the top earners in the O&O sector, raking in revenues of $423 million last year, up 56 percent from 2006.
This was largely accounted for by key players Accenture, Headstrong, Microsoft, IBM Solutions, Jupiter Systems, Oracle, ADTX Solutions, TrendMicro, Gurango, Intel, etc.
There are 120 software development companies in the country that employ nearly 30,000 IT professionals.
For 2007, the O&O sector recorded a total of $4.88 billion in revenues, higher than the $3.3 billion it had in 2006.
It is on track to reaching its goal of $13 billion in revenues by 2010.
The Philippine Software Industry Association (PSIA) is forming a consortium that will market Philippine-made software overseas.
Industry officials said the consortium is going to an outsourcing forum in New York this July with hopes of making some deals.
"This is a coming together of software companies to form a consortium of smaller software developers in the country so they can sell bigger," said Ma. Rosario Gruet, a PSIA director.
"We are building an inventory of skills that we can showcase abroad. We want to work together instead of compete with one another," she said.
Gruet said PSIA is working closely with the Department of Trade and Industry to sell Filipino software initially as a service, especially with the popularity of offshoring and outsourcing (O&O).
Blast Asia president and chief executive Arup Maity estimated the PSIA's combined revenues at about $300 million in 2007. The group has 110 members at present.
According to a report by the Business Process Association of the Philippines, the software development industry is one of the top earners in the O&O sector, raking in revenues of $423 million last year, up 56 percent from 2006.
This was largely accounted for by key players Accenture, Headstrong, Microsoft, IBM Solutions, Jupiter Systems, Oracle, ADTX Solutions, TrendMicro, Gurango, Intel, etc.
There are 120 software development companies in the country that employ nearly 30,000 IT professionals.
For 2007, the O&O sector recorded a total of $4.88 billion in revenues, higher than the $3.3 billion it had in 2006.
It is on track to reaching its goal of $13 billion in revenues by 2010.
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Officials mum on status of Development Park business
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SafeHarbor Technology is still trying to figure out how to make its operation work amid a steady stream of layoffs and outsourcing, including the closure of its signature call center at its offices in the Satsop Development Park.
But company officials are a bit quiet about what exactly is going on at the Web-based customer support company. They won’t even say how many employees currently work for SafeHarbor.
Four years ago, the call center boasted more than 60 people, but as SafeHarbor continues to change its focus, more and more of those jobs are being outsourced.
Once a quintessential 1990s tech company, SafeHarbor may also be closing or at least negotiating new terms with its small Seattle office and may be looking at other ways to save money, including outsourcing server space.
The five or so remaining employees in the call center were let go recently, confirmed SafeHarbor spokesman Harry Thomas. The actual offices at Satsop will remain open.
“As you probably know, we used to be primarily a call center operation and now we’re primarily focusing on web services,” Thomas said. “We outsource for what we consider to be our non-core or non-critical parts of our business.”
Asked if the call center duties were shipped overseas or to Canada, Thomas replied, “That’s between us and our clients. It’s based on what the clients’ needs are. We’ll place the calls where we feel it’s appropriate.”
Thomas said the company still counts American Airlines, T Mobile and Washington Mutual among its roster of clients.
“We may take calls, we may take e-mails … we may do chat sessions online,” Thomas said. “And when we do that, it’s really to better analyze what (our clients) could be doing more online so that they will have less volume to use live humans for.”
Thomas declined to say how many employees worked at Satsop or its offices in Seattle.
“That’s something between the company, the investors and the clients,” Thomas said. “Given our relationship with our landlords and clients, that’s something we’re going to keep as personal,” he added.
Former SafeHarbor employees estimated to The Daily World that the company has about 30 total employees. In 2001, SafeHarbor had about 200 employees. And as recently as 2005, there were 140 employees.
Former employees also told The Daily World that the technology company was considering closing its Seattle office at the end of the month.
Thomas declined to say whether the Seattle office’s lease is up for negotiation or whether it faces closure.
“That’s a lease situation and we’re not going to get into those kinds of details,” he said. “Satsop is our headquarters. And we only have a few people in Seattle. That’s not a major part of our operations. It’s just how do we accommodate the situation given the market in Seattle right now, given the workforce and all of that.”
Besides laying off its call center employees, a number of SafeHarbor’s information technology employees, including a key manager are no longer with the company or are about to leave, Thomas confirmed.
“Some people have been laid off and some people have chosen to leave voluntarily,” Thomas said.
Those layoffs and resignations follow a string of employees and managers leaving the company, including former chief executive officer Annette Jacobs, who resigned last July.
Brian Vincent, a former managing director of software for Vulcan Capital, was brought in to act as interim CEO.
Thomas said Vincent’s title has since been changed to interim chairman. He said the company still does not have a new CEO and he wasn’t sure if the company’s board was even still looking. “They don’t necessarily call me up to let me know the status of what’s happening,” Thomas said.
Still, Thomas said he remains optimistic about the future of the company.
“We’ve signed a couple of clients that I won’t talk about because I haven’t cleared it with them,” he said.
“We have a very good renewal rate with our clients. We really feel the underlying business structure is great. What we need to do is match our cost structure with that business. And what that means, in some cases, is outsourcing so that we can match the variable nature of the type of work with the variable nature of the revenue that comes in.”
SafeHarbor Technology is still trying to figure out how to make its operation work amid a steady stream of layoffs and outsourcing, including the closure of its signature call center at its offices in the Satsop Development Park.
But company officials are a bit quiet about what exactly is going on at the Web-based customer support company. They won’t even say how many employees currently work for SafeHarbor.
Four years ago, the call center boasted more than 60 people, but as SafeHarbor continues to change its focus, more and more of those jobs are being outsourced.
Once a quintessential 1990s tech company, SafeHarbor may also be closing or at least negotiating new terms with its small Seattle office and may be looking at other ways to save money, including outsourcing server space.
The five or so remaining employees in the call center were let go recently, confirmed SafeHarbor spokesman Harry Thomas. The actual offices at Satsop will remain open.
“As you probably know, we used to be primarily a call center operation and now we’re primarily focusing on web services,” Thomas said. “We outsource for what we consider to be our non-core or non-critical parts of our business.”
Asked if the call center duties were shipped overseas or to Canada, Thomas replied, “That’s between us and our clients. It’s based on what the clients’ needs are. We’ll place the calls where we feel it’s appropriate.”
Thomas said the company still counts American Airlines, T Mobile and Washington Mutual among its roster of clients.
“We may take calls, we may take e-mails … we may do chat sessions online,” Thomas said. “And when we do that, it’s really to better analyze what (our clients) could be doing more online so that they will have less volume to use live humans for.”
Thomas declined to say how many employees worked at Satsop or its offices in Seattle.
“That’s something between the company, the investors and the clients,” Thomas said. “Given our relationship with our landlords and clients, that’s something we’re going to keep as personal,” he added.
Former SafeHarbor employees estimated to The Daily World that the company has about 30 total employees. In 2001, SafeHarbor had about 200 employees. And as recently as 2005, there were 140 employees.
Former employees also told The Daily World that the technology company was considering closing its Seattle office at the end of the month.
Thomas declined to say whether the Seattle office’s lease is up for negotiation or whether it faces closure.
“That’s a lease situation and we’re not going to get into those kinds of details,” he said. “Satsop is our headquarters. And we only have a few people in Seattle. That’s not a major part of our operations. It’s just how do we accommodate the situation given the market in Seattle right now, given the workforce and all of that.”
Besides laying off its call center employees, a number of SafeHarbor’s information technology employees, including a key manager are no longer with the company or are about to leave, Thomas confirmed.
“Some people have been laid off and some people have chosen to leave voluntarily,” Thomas said.
Those layoffs and resignations follow a string of employees and managers leaving the company, including former chief executive officer Annette Jacobs, who resigned last July.
Brian Vincent, a former managing director of software for Vulcan Capital, was brought in to act as interim CEO.
Thomas said Vincent’s title has since been changed to interim chairman. He said the company still does not have a new CEO and he wasn’t sure if the company’s board was even still looking. “They don’t necessarily call me up to let me know the status of what’s happening,” Thomas said.
Still, Thomas said he remains optimistic about the future of the company.
“We’ve signed a couple of clients that I won’t talk about because I haven’t cleared it with them,” he said.
“We have a very good renewal rate with our clients. We really feel the underlying business structure is great. What we need to do is match our cost structure with that business. And what that means, in some cases, is outsourcing so that we can match the variable nature of the type of work with the variable nature of the revenue that comes in.”
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Wipro plans to boost outsourcing to US
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Wednesday, March 19, 2008 |
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Source : Click here
Wipro plans to open more centres in the US in a continuing trend of "reverse outsourcing", as Indian information technology outsourcing companies recruit in the US and Europe.
Azim Premji, chairman of Wipro, India's third-largest information technology outsourcing company, this week said it aimed to hire more than 1,000 people in the US to staff two new software development centres in Michigan and Atlanta.
The recruits for Wipro's centres in Atlanta and Troy, Michigan, would be trained for three months in India before returning to the US for jobs in software development and project management.
Wipro also wants to ex-pand in Europe through acquisition, especially in Germany where Wipro has earmarked as much as $250m for a possible purchase.
"We would like to make an acquisition in Germany," Mr Premji said this week. "Hopefully the shake-out in the market will make prices more reasonable."
Having a presence in Europe is key to Wipro's strategy to diversify away from its core US technology services business. It already employs nearly 7,000 people in Europe, about a quarter of whom are local recruits.
Wipro is scouting for sites in the US in low-cost areas such as those close to universities, or with concentrations of former US military personnel.
Opening the US centres is also an alternative to getting visas for workers, Mr Premji said. Obtaining a short-term visa for skilled foreign workers in the US is highly competitive.
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Integr8 IT, IBM's Outsourcing Service Delivery Partner of 2008
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Source : Click here
Integr8 IT, South Africa's largest privately owned national BEE ICT network integration and infrastructure management specialist, has won the Outsource Services Delivery Partner of 2008 award at the annual IBM Awards held recently in Ball Room at Monte Casino.
The event is organised and hosted by IBM to recognise business partners that have excelled in their respective fields of operation and core business offerings.
"We are focused on clients that continue to uphold IBM's standard of delivery excellence within the IT sector. This is based on a combination of factors, but is inextricably linked to innovation. Our clients look to us to improve services, reduce costs and consistently drive high levels of innovation," says Mteto Nyati, Director of Global Technology Services, IBM South Africa.
"Integr8 IT has been an effective and reliable service provider and trusted IBM outsource partner with the knowledge and expertise to consistently add value to our growing client base."
Integr8 IT has conceptualised and established a Nerve Centre through which it continues to successfully engage with its local and international client base.
This multi-level IT service pod is designed to provide the company's Nerve Centre agents with an in-depth analysis of every aspect of the company's clients.
The Nerve Centre call co-coordinators, first line, second line technical teams are backed up by Integr8 Consulting Services, with direct dedicated lines into Microsoft (Redmond) USA for premier support services as well as direct channels into its other core global partners.
The infrastructure allows for a complete overview of the client's technology, projects, account details and various other aspects of the account. These are displayed, monitored and supported by a fully manned team on a 24/7/365 basis
"Through this multimillion-rand investment, and collective knowledge consolidation Integr8 IT has managed to proudly represent South Africa and prove local ability on a global standard, in Africa, Europe and the United States," explains Robert Sussman, joint-MD of Integr8 IT. "This ensures that we have a key position through which we can add value to our existing partnerships with leading global technology vendors and service providers."
The company is currently supporting and providing value-add IT managed services to a number of renowned and established local and international giants and industry leaders.
Sussman says the company continues to follow a deliberate strategy to lead the market, with innovation and unique customised services, well ahead of the local trends.
"We are delighted to have received this award. It inspires us to continue to expand the business across existing and emerging frontiers of technology-based trade and industry. IBM is a trusted partner and we are honoured to continue to provide effective, proactive services for the benefit of its prestigious clientele," adds Sussman.
Integr8 IT, South Africa's largest privately owned national BEE ICT network integration and infrastructure management specialist, has won the Outsource Services Delivery Partner of 2008 award at the annual IBM Awards held recently in Ball Room at Monte Casino.
The event is organised and hosted by IBM to recognise business partners that have excelled in their respective fields of operation and core business offerings.
"We are focused on clients that continue to uphold IBM's standard of delivery excellence within the IT sector. This is based on a combination of factors, but is inextricably linked to innovation. Our clients look to us to improve services, reduce costs and consistently drive high levels of innovation," says Mteto Nyati, Director of Global Technology Services, IBM South Africa.
"Integr8 IT has been an effective and reliable service provider and trusted IBM outsource partner with the knowledge and expertise to consistently add value to our growing client base."
Integr8 IT has conceptualised and established a Nerve Centre through which it continues to successfully engage with its local and international client base.
This multi-level IT service pod is designed to provide the company's Nerve Centre agents with an in-depth analysis of every aspect of the company's clients.
The Nerve Centre call co-coordinators, first line, second line technical teams are backed up by Integr8 Consulting Services, with direct dedicated lines into Microsoft (Redmond) USA for premier support services as well as direct channels into its other core global partners.
The infrastructure allows for a complete overview of the client's technology, projects, account details and various other aspects of the account. These are displayed, monitored and supported by a fully manned team on a 24/7/365 basis
"Through this multimillion-rand investment, and collective knowledge consolidation Integr8 IT has managed to proudly represent South Africa and prove local ability on a global standard, in Africa, Europe and the United States," explains Robert Sussman, joint-MD of Integr8 IT. "This ensures that we have a key position through which we can add value to our existing partnerships with leading global technology vendors and service providers."
The company is currently supporting and providing value-add IT managed services to a number of renowned and established local and international giants and industry leaders.
Sussman says the company continues to follow a deliberate strategy to lead the market, with innovation and unique customised services, well ahead of the local trends.
"We are delighted to have received this award. It inspires us to continue to expand the business across existing and emerging frontiers of technology-based trade and industry. IBM is a trusted partner and we are honoured to continue to provide effective, proactive services for the benefit of its prestigious clientele," adds Sussman.
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Investors must give offshore account details
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Tuesday, March 18, 2008 |
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Thousands of UK investors identified as having money hidden in offshore accounts have been sent letters asking them to provide details of their finances.
Revenue & Customs has contacted 5,000 British investors requesting a formal declaration of their overseas income and investments.
Not all of those contacted will be liable for a tax charge, but holders of undisclosed offshore accounts who knowingly avoid disclosing information could face a 100 per cent tax penalty on top of payment of tax and interest owed.
Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said that co-operation would be taken into account when penalties were determined.
A recently released paper from the Revenue estimated that unpaid tax from money abroad totalled £1.5bn in 2005. Most of the money hidden in tax havens is thought to be held in the Channel Islands and Isle of Man.
The Revenue has been tightening its net around offshore account holders following a legal ruling that forced high street banks to disclose information on clients' offshore accounts. A plan to extend this information request to foreign banks has been mooted.
Last year the Revenue held a partial amnesty for British investors with undisclosed offshore accounts, which allowed them the chance to pay the tax and interest they owed plus a reduced penalty of 10 per cent. By the time the amnesty had closed about 60,000 account holders had come forward, and £400m in tax owed had been paid by 45,000 investors.
Gary Ashford, tax investigations director at Grant Thornton, said the Revenue's approach towards offshore account holders was indicative of the increased powers announced in last week's Budget to carry out compliance checks. "Tax evaders had their chance to come clean and pay reduced penalties of 10 per cent last year," he said. "Now, HMRC is playing hardball and will be taking no prisoners."
Thousands of UK investors identified as having money hidden in offshore accounts have been sent letters asking them to provide details of their finances.
Revenue & Customs has contacted 5,000 British investors requesting a formal declaration of their overseas income and investments.
Not all of those contacted will be liable for a tax charge, but holders of undisclosed offshore accounts who knowingly avoid disclosing information could face a 100 per cent tax penalty on top of payment of tax and interest owed.
Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants, said that co-operation would be taken into account when penalties were determined.
A recently released paper from the Revenue estimated that unpaid tax from money abroad totalled £1.5bn in 2005. Most of the money hidden in tax havens is thought to be held in the Channel Islands and Isle of Man.
The Revenue has been tightening its net around offshore account holders following a legal ruling that forced high street banks to disclose information on clients' offshore accounts. A plan to extend this information request to foreign banks has been mooted.
Last year the Revenue held a partial amnesty for British investors with undisclosed offshore accounts, which allowed them the chance to pay the tax and interest they owed plus a reduced penalty of 10 per cent. By the time the amnesty had closed about 60,000 account holders had come forward, and £400m in tax owed had been paid by 45,000 investors.
Gary Ashford, tax investigations director at Grant Thornton, said the Revenue's approach towards offshore account holders was indicative of the increased powers announced in last week's Budget to carry out compliance checks. "Tax evaders had their chance to come clean and pay reduced penalties of 10 per cent last year," he said. "Now, HMRC is playing hardball and will be taking no prisoners."
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Iterative Software Lifecycle Methodology
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Monday, March 17, 2008 |
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Source : Click
Managing complex software development projects is about efficient utilization of resources, risk management, accurate estimation of budgets and timelines, experienced selection of appropriate technologies, and scheduling feature development to meet time-to-market requirements. Risk is a reality in every project; ISHIR's iterative methodology for software development is designed specifically to mitigate risk.
The most important question to answer before starting product development is: Why is this product needed in the marketplace? The answer to this question constitute the business objectives of the product that should drive its entire lifecycle. A software product's development lifecycle is comprised of four facets:
1. Requirements: What features will the product have?
2. Design: How will the product offer these features?
3. Coding: How will the features be coded and unit tested?
4. Testing and delivery: How will the product be tested and delivered to customers?
These four facets are managed by a project plan that determines when the software product will offer the required features.
In a traditional Waterfall lifecycle model, the project plan organizes the four phases in a strict serial order. A lot of time is spent up front to define and analyze requirements and to complete the design of the target system before a line of code is written. This model does not handle changes in requirements or design well. In addition, it creates an artificial separation between business analysts, architects, designers, and programmers, leading to the risk of miscommunication and divergence between the business objectives and vision of a software product and its implementation.
Using an Iterative lifecycle model, the four facets of a software product are integrated so that business objectives drive the entire process, and the requirements and design are continuously refined while the code evolves. The project plan arranges the development into small releases, and mandates continuing integration of all coded components, incremental builds, and periodic validation of refined requirements and design. By doing so, it encourages a shared ownership of the product among business analysts, software architects, designer, programmers, and testers; this shared ownership reduces the risk of miscommunication and divergence. It also enables continuing refinement and integration to avoid any unpleasant surprises just before the delivery date.
The Benefits of ISHIR's Iterative Methodology are the following:
* Quick feedback loop from business stakeholders to engineering back to business stakeholders
* Rapid software product conceptualization and materialization through prototyping
* Ability to refine requirements and design, and handle changes in both in the early phases of a product lifecycle
* Focus on getting the highest priority features and the highest risk features implemented as fast as possible
* Ability to validate pieces of design incrementally, providing continuous analysis and mitigating the risks
Managing complex software development projects is about efficient utilization of resources, risk management, accurate estimation of budgets and timelines, experienced selection of appropriate technologies, and scheduling feature development to meet time-to-market requirements. Risk is a reality in every project; ISHIR's iterative methodology for software development is designed specifically to mitigate risk.
The most important question to answer before starting product development is: Why is this product needed in the marketplace? The answer to this question constitute the business objectives of the product that should drive its entire lifecycle. A software product's development lifecycle is comprised of four facets:
1. Requirements: What features will the product have?
2. Design: How will the product offer these features?
3. Coding: How will the features be coded and unit tested?
4. Testing and delivery: How will the product be tested and delivered to customers?
These four facets are managed by a project plan that determines when the software product will offer the required features.
In a traditional Waterfall lifecycle model, the project plan organizes the four phases in a strict serial order. A lot of time is spent up front to define and analyze requirements and to complete the design of the target system before a line of code is written. This model does not handle changes in requirements or design well. In addition, it creates an artificial separation between business analysts, architects, designers, and programmers, leading to the risk of miscommunication and divergence between the business objectives and vision of a software product and its implementation.
Using an Iterative lifecycle model, the four facets of a software product are integrated so that business objectives drive the entire process, and the requirements and design are continuously refined while the code evolves. The project plan arranges the development into small releases, and mandates continuing integration of all coded components, incremental builds, and periodic validation of refined requirements and design. By doing so, it encourages a shared ownership of the product among business analysts, software architects, designer, programmers, and testers; this shared ownership reduces the risk of miscommunication and divergence. It also enables continuing refinement and integration to avoid any unpleasant surprises just before the delivery date.
The Benefits of ISHIR's Iterative Methodology are the following:
* Quick feedback loop from business stakeholders to engineering back to business stakeholders
* Rapid software product conceptualization and materialization through prototyping
* Ability to refine requirements and design, and handle changes in both in the early phases of a product lifecycle
* Focus on getting the highest priority features and the highest risk features implemented as fast as possible
* Ability to validate pieces of design incrementally, providing continuous analysis and mitigating the risks
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Indian offshoring firm eyes buys in US and Europe
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Friday, March 14, 2008 |
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Source : Click
Sonata Software, Bangalore based, midtier IT services firm, is actively looking at acquisitions overseas to accelerate its growth trajectory. Sonata would be looking at companies across Europe and the US for domain expertise as well as market reach.
Sonata managing director B Ramaswamy said, it would be looking at acquiring companies in the range of USD30 to 50 million and these would be funded through a combination of debt and internal accruals. He added that it would be looking very strongly at Sweden, where, it feels; there is a strong opportunity of offshoring and outsourcing of IT services.
At the same time, Sonata which has a strong presence in the domestic market, would be looking at companies in the Indian market. These acquisition plans of Sonata comes on the back of the experience it has had in picking up majority stake in Germanys TUI InfoTec.
Sonata acquired 50.1 percent stake in TUI InfoTec, the in house IT arm of TUI in September, 2006 for Euro 18 million and this gave it a foothold in the German market. Mr. Ramaswamy said, despite the initial hiccups it has managed to successfully transfer the remote infrastructure management and IT services activity of TUI from Germany into India.
Now, it is looking at using TUI InfoTec to get a larger access into the German market. It would primarily look at SMBs from the verticals of manufacturing, insurance and CPG. The Sonata MD said it would also be looking at other German speaking regions like Austria and Switzerland.
Sonata Software is present in two business segments, outsourced product development and enterprise solutions. Its primary region of operations are in the US, Europe and India.
Sonata Software, Bangalore based, midtier IT services firm, is actively looking at acquisitions overseas to accelerate its growth trajectory. Sonata would be looking at companies across Europe and the US for domain expertise as well as market reach.
Sonata managing director B Ramaswamy said, it would be looking at acquiring companies in the range of USD30 to 50 million and these would be funded through a combination of debt and internal accruals. He added that it would be looking very strongly at Sweden, where, it feels; there is a strong opportunity of offshoring and outsourcing of IT services.
At the same time, Sonata which has a strong presence in the domestic market, would be looking at companies in the Indian market. These acquisition plans of Sonata comes on the back of the experience it has had in picking up majority stake in Germanys TUI InfoTec.
Sonata acquired 50.1 percent stake in TUI InfoTec, the in house IT arm of TUI in September, 2006 for Euro 18 million and this gave it a foothold in the German market. Mr. Ramaswamy said, despite the initial hiccups it has managed to successfully transfer the remote infrastructure management and IT services activity of TUI from Germany into India.
Now, it is looking at using TUI InfoTec to get a larger access into the German market. It would primarily look at SMBs from the verticals of manufacturing, insurance and CPG. The Sonata MD said it would also be looking at other German speaking regions like Austria and Switzerland.
Sonata Software is present in two business segments, outsourced product development and enterprise solutions. Its primary region of operations are in the US, Europe and India.
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Software Development Outsourcing
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Source : Click
Delivery of projects on time and within budgets is the essential requirement for project management. By outsourcing a development segment to a outsourcing partner, customers gain flexibility, this reduces the development costs, decreases time to market and of course provides wide range of choice for products. Software development outsourcing may be for delivery of partial and full life cycle projects.
By outsourcing development segments to India and neighboring countries like China, Russia, etc. big companies can concentrate on the core in-house activities. Indian companies provide software development outsourcing services, (software development life cycle)SDLC includes:
Requirements analysis: India as a outsourcing centre during this phase, team of professionals sit together gather basic information, for the target products customer requirement gathered, conduct market and technology research; finally at the end of this phase optimal solution is derived to meet product requirement for relaibility and product performance. Indian IT consultants will help draw a productive product function.
Architecture Design: To achieve product performance goal to pitch the market, product design is most crucial factor and roadmap to success for commercial market. Product design should be interactive and should be user friendly.
Project Planing, Risk Assessment: Project management, a comprehensive project management scheme, all risk involved in project management; this will help to complete project within the time constraints and within the specified budget.
Development: Our project developers are highly skilled and are aware of all the latest tools and technologies that will help them move ahead at faster pace.
Quality Assurance (QA) and Testing: To ensure that your product is flawless, Rigid Testing is carried out. It is carried to check that the product works without hindrance in different environment. Performance testing includes scalability and capacity testing under a particular environment. Usability testing includes responsiveness.
Maintenance and Technical Support: After product market deployment, technical support is available all time to assist you. This helps to server customers located at different locations and across different time zone.
Product Enhancement and Service Release Management: Upgradation, enhancement is continuous on-going process based on real world figures, feedback and comments collected from its users. Product enhancement, fixing problems if any arises, migration, adding new functionalities; release of new version needs product re-engineering.
major areas of software development outsourcing are mobile applications, web-enabled solutions, web development, web promotion, offshore product development, Microsoft .Net development, ERP Implementation India, SAP software solutions, Microsoft Dynamics NAV solutions India, outsourcing PHP India, Joomla development India, Drupal solutions India, sugarCRM development India.
Delivery of projects on time and within budgets is the essential requirement for project management. By outsourcing a development segment to a outsourcing partner, customers gain flexibility, this reduces the development costs, decreases time to market and of course provides wide range of choice for products. Software development outsourcing may be for delivery of partial and full life cycle projects.
By outsourcing development segments to India and neighboring countries like China, Russia, etc. big companies can concentrate on the core in-house activities. Indian companies provide software development outsourcing services, (software development life cycle)SDLC includes:
Requirements analysis: India as a outsourcing centre during this phase, team of professionals sit together gather basic information, for the target products customer requirement gathered, conduct market and technology research; finally at the end of this phase optimal solution is derived to meet product requirement for relaibility and product performance. Indian IT consultants will help draw a productive product function.
Architecture Design: To achieve product performance goal to pitch the market, product design is most crucial factor and roadmap to success for commercial market. Product design should be interactive and should be user friendly.
Project Planing, Risk Assessment: Project management, a comprehensive project management scheme, all risk involved in project management; this will help to complete project within the time constraints and within the specified budget.
Development: Our project developers are highly skilled and are aware of all the latest tools and technologies that will help them move ahead at faster pace.
Quality Assurance (QA) and Testing: To ensure that your product is flawless, Rigid Testing is carried out. It is carried to check that the product works without hindrance in different environment. Performance testing includes scalability and capacity testing under a particular environment. Usability testing includes responsiveness.
Maintenance and Technical Support: After product market deployment, technical support is available all time to assist you. This helps to server customers located at different locations and across different time zone.
Product Enhancement and Service Release Management: Upgradation, enhancement is continuous on-going process based on real world figures, feedback and comments collected from its users. Product enhancement, fixing problems if any arises, migration, adding new functionalities; release of new version needs product re-engineering.
major areas of software development outsourcing are mobile applications, web-enabled solutions, web development, web promotion, offshore product development, Microsoft .Net development, ERP Implementation India, SAP software solutions, Microsoft Dynamics NAV solutions India, outsourcing PHP India, Joomla development India, Drupal solutions India, sugarCRM development India.
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Better Requirements Management Means Better Business
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Thursday, March 13, 2008 |
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Source: Click
Successfully addressing requirements management from a more iterative approach requires aligning business with IT; open communication is key
The process of capturing and tracking project requirements for application development projects directly affects the success of those projects. With better project management and better understanding of projects than ever before, only about 18 percent of projects fail today, according to The Standish Group International, which has been tracking the reasons behind project failure for more than 20 years. Requirements management tools have evolved, and the industry is much healthier today. Indeed, the key to more successful projects is aligning IT and business goals through business requirements management.
It wasn’t that long ago that the waterfall method of application development was believed to be the best way to develop applications — with very detailed, deep requirements that were frozen in place so engineers could work on achieving them. But by the time software engineers presented their results, 18 months or so later, the requirements would have changed, and the new product invariably needed an immediate upgrade.
In the past five years or so, the waterfall method has given way to more agile development methods — smaller development teams and shorter project timeframes, for instance, not to mention capturing requirements and getting them to engineering more quickly, building prototypes, and changing requirements as necessary throughout the process.
This iterative approach to software development focuses on a feedback group and the chunking of larger projects into smaller pieces. Organizations generally don’t want to be as document-intensive as they once were. As a result, they have become more user-centric.
“Rather than create a specification that’s 3,000 pages long, [organizations] want to sit down with businesspeople and find out what they want the process to do,” explains Mike Burba, founder and CEO of Software as a Service (SaaS) startup DevHive, and former head of marketing for Compuware’s application development tool line. Companies are looking to do things in a more structured way. And requirements management tools offer a feasible way to do exactly that.
“Managing requirements is a big part of successful projects,” notes Jim Johnson, chairman of The Standish Group. But, he cautions, “Just keeping track of requirements doesn’t make you a successful project.”
Making Decisions
Take this example, for instance: Your company has 4,000 different feature requests for one product. You keep those feature requests in approximately 55 Microsoft Excel spreadsheets. Some features are difficult. Some take more work than others. Some could take a year to complete. Customers call every morning to see if you’re going to include their particular requirements. What do you do?
It’s impossible to please everyone, so how do you determine whose requirements to include and whose to put off? One of the most significant causes of project failure is poor coordination between business requirements identified by the business and what’s understood by development teams creating the software, according to Melinda Ballou, a program director for research firm IDC.
Unfortunately, traditional requirements management tools don’t guarantee that the requirements you wanted going into a project are what you really need. That reality has given rise to requirements definition tools, or requirements development tools, such as those from iRise, Blueprint Software Systems, Axure Software Solutions, Compuware, and Serena Software, that offer vis
Successfully addressing requirements management from a more iterative approach requires aligning business with IT; open communication is key
The process of capturing and tracking project requirements for application development projects directly affects the success of those projects. With better project management and better understanding of projects than ever before, only about 18 percent of projects fail today, according to The Standish Group International, which has been tracking the reasons behind project failure for more than 20 years. Requirements management tools have evolved, and the industry is much healthier today. Indeed, the key to more successful projects is aligning IT and business goals through business requirements management.
It wasn’t that long ago that the waterfall method of application development was believed to be the best way to develop applications — with very detailed, deep requirements that were frozen in place so engineers could work on achieving them. But by the time software engineers presented their results, 18 months or so later, the requirements would have changed, and the new product invariably needed an immediate upgrade.
In the past five years or so, the waterfall method has given way to more agile development methods — smaller development teams and shorter project timeframes, for instance, not to mention capturing requirements and getting them to engineering more quickly, building prototypes, and changing requirements as necessary throughout the process.
This iterative approach to software development focuses on a feedback group and the chunking of larger projects into smaller pieces. Organizations generally don’t want to be as document-intensive as they once were. As a result, they have become more user-centric.
“Rather than create a specification that’s 3,000 pages long, [organizations] want to sit down with businesspeople and find out what they want the process to do,” explains Mike Burba, founder and CEO of Software as a Service (SaaS) startup DevHive, and former head of marketing for Compuware’s application development tool line. Companies are looking to do things in a more structured way. And requirements management tools offer a feasible way to do exactly that.
“Managing requirements is a big part of successful projects,” notes Jim Johnson, chairman of The Standish Group. But, he cautions, “Just keeping track of requirements doesn’t make you a successful project.”
Making Decisions
Take this example, for instance: Your company has 4,000 different feature requests for one product. You keep those feature requests in approximately 55 Microsoft Excel spreadsheets. Some features are difficult. Some take more work than others. Some could take a year to complete. Customers call every morning to see if you’re going to include their particular requirements. What do you do?
It’s impossible to please everyone, so how do you determine whose requirements to include and whose to put off? One of the most significant causes of project failure is poor coordination between business requirements identified by the business and what’s understood by development teams creating the software, according to Melinda Ballou, a program director for research firm IDC.
Unfortunately, traditional requirements management tools don’t guarantee that the requirements you wanted going into a project are what you really need. That reality has given rise to requirements definition tools, or requirements development tools, such as those from iRise, Blueprint Software Systems, Axure Software Solutions, Compuware, and Serena Software, that offer vis