Indian Outsourcing Looking for Japanese Market

Indian IT firms, revitalizing for an expected slowdown in the US economy possibly due to U.S. businesses hurting by the decrease in the value of the dollar, probably the reason the Indian IT industries have an eye on Japanese IT market, as a strategic market for future investments. The Japanese IT market, the biggest after the US, is estimated at around USD 150 billion. At present, Indian firms get only 2 to 4 percent of their revenues from Japan.

TCS, is number one in the race, they’ve already built a facility in Yokohama, and set up a Japan offshore delivery centers JODCs in Kolkata and Pune. The country`s largest software services company has about 2,000 engineers servicing Japanese customers globally. Also The Asia Pacific region, including Japan, contributes around 5.5percent of its revenues of Rs 59.23 billion in third quarter of FY08.

As per Forrester ResearchJapan, Indian vendors have an opportunity to broaden their horizons into the Japanese market in the long term however the Japanese market is not ready for offshoring.

Indian firms believe the Japanese market is under pressure to cut costs and elevate competence and effectiveness. Both Wipro and Satyam has already good set up in Japan and growing with their team of employees from different countries like India, China, Vietnam and Japan.

Outsourcing Prediction for 2008

The following are the prediction for the IT outsourcing industry in 2008.

* Many new players will providers start innovating to expedite the growth of their outsource capabilities while the traditional player will struggle to the position due to increase in overhead and split in organization.

* The price competition will continue to increase due to rising in wages however the outsourcing companies will standardized technology, will improve operational scale and refine their delivery models.

* Eastern Europe outsourcing market will be one of the destination for European company and it will grow especially for local market supporting local European language.

* China will continue lag behind due to language barriers and intellectual property and privacy issue.

* Cost of labor in Asian countries will slightly increase.

* Many new hybrid models will emerge out with tailor made solution for outsourcing need like for example multiple-process outsourcing engagements will emerge out.

* Due to tight US & UK labor supply policy many US & UK based companies will frame their outsourcing strategy and Asian/European countries will continue as preferred place for outsourcing.

* Many new city will be developed for IT hub with more technological advancements & infrastructure with Conducive environment in many Asian countries.

* Outsourcing will face serious competitive pressures, however automotive, Insurance, pharmaceuticals, IT security functions and human resource & development will rise significantly.

French Parliament Offices will be Migrate on Linux Operating system

The French parliament is planned to migrate over Linux by removal window in support of open source, the planned switch date is June 2007. They have planned to use Firefox as their web browser. “The study showed that open-source software will from now on offer functionality adapted to the needs of MPs,” the parliament said. They also went on to say, this will allow us to make substantial savings despite the associated migration and training costs.

The French Government is endorsing the concept of an Open Desktop system in general, however they are using Open Source Software on some of their servers, including Apache, Linux and Mambo, the Government expects to achieve significant cost savings in the long term using Open Source desktops as well.

Before French move Munich/ Mannheim before now already started using linux, that reduced drastically the operating cost that might be the reason French are overwhelmed to switch over. However they may face crucial time to train their staff to work in linux operating system.

Study Shows Linux Ready for Real-Time

As per a recent study, it has been predicted that within five years the open-source OS will be running more than half of all important business applications.
The CIO study which include IT directors, VPs and CIO, predicted that the number of companies in “early or full deployment” of mission-critical applications on Linux would grow by 40 percent from 2007-2009, and will take momentum to grow by 80 percent from 2009-2011. “Linux operating systems – and open source-based software in general – have reached critical marketplace mass.”as per the study’s authors, Bruce Guptill and Bill McNee of Saugatuck Research.

The researchers added that the Vendors, service providers and IT execs alike all need to take notice of the trend and reposition themselves to meet it as a whole.

“Recent Linux deals and announcements by Oracle and Microsoft have only reinforced the ‘open source is enterprise-grade’ message that IBM, Unisys and others have been preaching for years,” Guptill and McNee said.

They added: “Microsoft’s thawing toward Linux is now easier to understand when faced with such data – even as Windows continues to grow as the other main server platform of choice.” Read full News by Technoworld;

Set Rule To Maintain a Network-Attached Server

The Columbia university Information & Technology department has recommended to practices the following rules that can be used to create and maintain a network-attached server that will provide both a functional environment and security for its data. Since there is less possibilities to have both a fully secured environment and useful network connectivity, there will always be a balance between security and functionality.

* Don’t put everything on one server.

* Keep servers physically secure. ( Servers should never be used by anyone as a desktop machine)

* Check the security of all applications on the server.

* Get on mailing lists and keep up to date.

* Turn off unneeded services.

* Use anti-virus and firewall software.

* Keep logs, and keep them safe.

* Keep track of what’s running.

* Use hardening tools to limit security holes.

* Do not allow insecure or unencrypted remote access.

* Update update update.

* Make a recovery image and do Backups.

* Be prepared in case the worst happens.

For more information you can refer their site at http://www.columbia.edu

- Server setup/ Initial Hardening

- Regular maintenance

- Set measures to safeguard your Servers from disasters.

- Software installation and configuration

- Software/OS updates

- Security audits

- System optimization

- Recover your Systems Management Server sites.

- Emergency resolution

- Unlimited admin hours

- 24×7 monitoring

- Live Chat, MSN, AIM, Toll Free availability

ESO- Business Model for Outsourcing Tutors

ESO is basically a business model for online education and tutoring that open new window for US and UK students to outsource their homework and get it solved by Indian tutors. This model provides one to one contact between teachers to students in convenient time and competitive prices. Normally the US students pay $40 – $50 an hour for tutoring services in their country. However, few Indian call center offering these services for as low as $12 to $15 an hour. Now after launching TWL ( tutors without limit ) by American IT entrepreneur Glynn Willet the advance learning system on web2.0 can enable those student to fix the price what they determine.

ESO open new opportunities for the tutors and unemployed educated youth to earn in foreign currencies operating from their home town. The Voip, IM and web 2.0 (e.g. lesson board) technologies and social networking play vital role for connecting tutors and student in different time zone for sharing knowledge.

Manufacture Process Outsourcing

MPO, Manufacture Process Outsourcing can be considered one of the best approach for manufacturing companies which are facing difficult time due to growing expenses in manufacturing and wages costs.

As per * Jim Holland ” The concept is quite different, while most would assume outsourcing company functions involves an outside vendor operating in a different location, the intent of MPO is to “run a business within a business.” It involves outsourcing manufacturing functions to a vendor who actually operates inside the company’s facility, while guaranteeing the quality of a product”.

I think this would be good alternative for cutting costs and maintaining same quality in lower costs that can definitely going to be best option for industrial giants as well middle size companies that might be in closing stage due to unexpected growing expenses.

* News Source; Expansionmanagement.com http://www.expansionmanagement.com/smo/articleviewer/default.asp?cmd=articledetail&articleid=18209&st=5)”

Location Based Service

Location-based services (LBS) is one of the attracting feature that personalized services especially to the mobile industries that enable the users to get connected within the reach of their current location. The LBS deploy value-added-service to their users that already opened a new market to the cellular network operators and service providers which enable users to get information of current traffic conditions, supplying routing information, helping them find nearby hotels, travel information and many more.

Since the LBS principle is based on, where am I? What’s around me? How do I get there? Such Location based service is diversifying to other sector as well such as in travels, entertainment & media industries respectively for mapping & arrangement of local transportation ( travel industries ), finding location for filming & hiring crew members in movie making industries and deploying local reporter for media reporting. I hope Java will play a vital role in making LBS more easy to reach for the online service providers and Google mobile phone will provide all those features in coming years.

 

Selective Outsourcing Model

Selective outsourcing is best model when classic outsource model is really not needed. By choosing such model you can innovate ways of reducing costs, whilst maintaining high levels of service for your business critical infrastructure.

Selective outsourcing enable you to retain control of overall strategy and access skills which would otherwise might be beyond reach in cost terms and it can authenticate the benefits of outsourcing while minimizing any perceived risk.

According to Dale Kutnick, president of META Group

 ”The real benefit of selective outsourcing is the redeployment of people. For example, outsourcing lets you shift your best and brightest people away from ‘drudge’ tasks, such as maintaining operating systems and networks. Now these individuals can help you build a new operating environment, such as the introduction of client/server computing.”

More attention can be focused on strategic activities, which is absolutely essential in today’s tough economy.

 

 

Good Time for Indian Outsourcing Industry

Nasscom has predicted that the industry will chart a growth rate of 40% over the next fiscal year: “The Indian BPO sector is expected to maintain the current export momentum and grow by 35-40 per cent in this fiscal (FY 07) to achieve $8-8.5 billion as against $6.3 billion in the previous fiscal (2005-06)”. It’s sunshine time for Indian outsourcing industry.

This will reduce the in-house unit cost for multinational, as these trends seems ongoing changes, it will increase competition in market no doubt but such competition will benifit to the outsourced company in terms of preference and saving overall cost. That means for survival and consistent growth one should consolidate and divest their unit to somebody else resources.