Posts for category ‘Outsourcing’

Though the information technology sector has for long made nice profits and nonstop expansion, things may change in 2009 as Forrester Research predicts a noteworthy decrease in transactions. Though Forrester originally speculated growth in this sector, it had to reconsider and modify those figures because of the present credit problem that is not vanishing soon.

The group’s VP Andrew Bartels stated that collapse of the fiscal system is the main actor behind this future fall in IT services purchase. So businesses will be reluctant to put their capital investments in risk now. The study further provides detailed data for different sub-units inside the wider IT sphere. 

For instance, businesses manufacturing communication equipments will experience 7.8% decline in sales agreements, at least for some months. Computer equipment manufacturing businesses, likewise, are expected to bear a 6.8% reduction in sales this year. And the software sector is no exception of course; so license renewals will go down as well.

With all these associated dealers heading for a loss, those offering IT consultancy are obviously going to experience a few of the effects on their business. IT outsourcing sector seems to be the sole one that will probably proceed at more or less the same rate.

Another fresh paper released by Gartner has anticipated that IT service providers may be forced to lessen prices between 5-20% thanks to new rivals getting into this sector. At the moment, the increase in competitors is pretty much visible as more providers hop in to reap the profit opportunity this sector promises. Nevertheless, prices haven’t been affected much till now although that may vary in the near future if the competition continues increasing at the same speed.

Recession may drive firms to turn toward IT outsourcing and this may offset the stress sensed by some outsourcing service providers from raising competiton.

The trouble for the IT industry, though, is short-lived and may stay merely till 2010. It’s not that the demand for IT services has gone down; just that the time isn’t good for organizations to risk money here. Competent IT service providers may be in a better position at the end of this downturn, if they can employ these days to polish their portfolio by helping businesses in cutting expenses in this recessionary period of time. 

Like nearly all other industries and practices, IT outsourcing also has had its portion of myths . While these misconceptions haven’t been able to end the flow of outsourcing, they have inflicted some damage to small commercial enterprises that sought to gain from the numerous advantages of subcontracting information technology tasks. In this article, we will view some popular myths and will learn why they are misconceptions merely.

Firstly, people believe outsourcing is doing damage to the local economic system. One can’t deny the diminishing the jobs in the information technology industry, but to state that the gross effect on the economy is damaging won’t be appropriate. If subcontracting your IT projects allows you to trim costs and enjoy more earnings, doesn’t that mean more profit for the shareholders. Then, most of the tech products from fiber optic cables to internet telephony are made up by western states. So it’s rather evident that if IT subcontracting reduces jobs in one sector, it also brings profit to other sectors.

Moreover, some firms hold the misconception that outsourcing to offshore workforce is a shameful act. This, I think, is because of constant propaganda by some media that subcontracting damages economy and is unpatriotic to do. But it’s true that numerous international companies have subcontracted their IT tasks to India and some other Asian countries, as it also allows them to cut managerial burden and target core aims. In fact, the main doctrine behind a business enterprise is to increment earnings and to flourish. IT subcontracting allows US firms to benefit from talented folks living miles apart, so we actually employ some untapped brains that certainly contribute more innovation to the entire world.

Some think that subcontracting can result in high expenses after you count all the intangible costs linked with it. Yet, if you compare the hourly wages of employees in Asian nations like Indonesia, you will realize that there are huge saving potentials. Moreover, having a larger internal workforce means you acquire all the office supplies from chairs to UPS for all of them. So by reducing fixed expenses, subcontracting permits SMEs to control their variable expenditures. So subcontracting is not just for larger corporations and can significantly help smaller businesses looking to launch with low budget.

Finally, a couple misconceptions come up due to incompetent management by firms who go for outsourcing. A lot of us fail to follow best practices when subcontracting out IT tasks and later come up with baseless justifications. Many a times, we hear managers complaining that outsourced workers overlook deadlines. This is usually the result of inappropriate selection. There are lots of providers in our own country who are always late.

Then, several managers face communication problems while dealing with overseas workers. These problems usually arise when you choose outsourcing providers who grab more projects than they can manage. So employ dedicated workers who would work only for you.

AICOM ITS has successfully served various industries and business sectors by delivering quality and cost-effective custom software development and infrastructure projects. By subscribing to industry standards like ISO 9000, CMMi, and Six Sigma processes, we leverage on our technical know-how and project management expertise to provide exceptional end-to-end solutions delivered on budget and on time.

 

Proven Development Methodologies.Certified Quality Processes.Certified I.T. Professionals.Online Collaborative Project Management.Industry-specific Templates.Intellectual Property Protection.Guaranteed 24/7 Support and Maintenance

Our Services: Custom Web-based Application Development and Integration,Application Management and Support,Web Services,Legacy Systems Migration,Full Systems Development Life Cycle Support which includes-Project Assessment and Scoping,System Analysis, Design and Architecture,Application Development and Construction,Integration and Quality Testing,Post-project Maintenance and Support.

 

 

 

AICOM Global Knowledge Workforce™

AICOM® (ey-kom) Corporation is a Top-100 Global Outsourcing company that provides diversified solutions and services by leveraging on our key strength — our Global Knowledge Workforce.

From our offshore center in the Philippines to onsite teams in US and Canada, AICOM provides outsourced services in IT and BPO to clients worldwide. We help reduce cost, improve organizational flexibility, accelerate time-to-market, and deliver cost-effective world-class quality services.

As a subscriber to ISO 9000, CMMi, and Six Sigma practices, we are able to place ourselves in equal footing with the industry giants in terms of innovation and effectiveness of our solutions. These practices ensure quality processes are applied across all business programs of our customers.

AICOM ITS – Information Technology Solutions

AICOM ITS has successfully served various industries and business sectors by delivering quality and cost-effective custom software development and infrastructure projects. By subscribing to industry standards like ISO 9000, CMMi, and Six Sigma processes, we leverage on our technical know-how and project management expertise to provide exceptional end-to-end solutions delivered on budget and on time.

Proven Development Methodologies

Certified Quality Processes

Certified I.T. Professionals

Online Collaborative Project Management

Industry-specific Templates

Intellectual Property Protection

Guaranteed 24/7 Support and Maintenance

Our Services:

Custom Web-based Application Development and Integration

Application Management and Support

Web Services

Legacy Systems Migration

Full Systems Development Life Cycle Support which includes:

Project Assessment and Scoping

System Analysis, Design and Architecture

Application Development and Construction

Integration and Quality Testing

Post-project Maintenance and Support

There are several European and US based IT companies that are increasingly opting for outsourcing. It has become a trend. The main reasons behind this move are cost reduction, flexibility and increase in productivity. Full time resources or dedicated IT staffing solutions, onshore and offshore, is being leveraged by several of these companies.

Dedicated full time IT staffing services work well for companies who need to scale up and down based on project requirements or those looking to complement their core team with quality IT professionals. Several companies even setup an offshore team together with the staffing firm. IT staffing services are of great value if done well with a right staffing partner.

As a matter of fact, most of the European and US based companies prefer hiring the services of Indian companies for outsourcing and information technology staffing. This is because the it staffing firms in India possess a huge number of talented and highly qualified people. They are well versed in information technology and fluent in English communication.

There are a huge number of programmers, web developers, software engineers, IT Project Managers who can address the requirement of the client companies. The Indian Talent pool is imbued with Flash programmers, ASP.NET developers, PHP programmers and Project management professionals. There are several companies that take care of the staffing outsourcing requirements of the US and European companies.

While choosing the services of such dedicated IT staffing providers the clients should see the track record. Aspects like manpower and infrastructure also needs to be considered before giving a project assignment to a company. One can search in the Internet for India based companies that offer it staff augmentation services.

One can get full time technical and non technical resources for their needs. The working models allow the companies to seek augmentation of their own team with quality IT resources from the staffing companies working onsite or offshore. There are different advantages associated with different engagement models and companies need to weigh those before opting for one against the other. The IT staffing firms can help the companies decide by understanding their business requirements and project needs.