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innovation and standardization - the outsourcing trends for 2008

initiated in 2008 in the outsourcing market in the two successive first sight contradictory tendencies: on one hand the need for innovation by service providers to ensure there is, on the other hand, we then strive to cut costs through increased standardization .

The signals from the outsourcing market are currently different. The industry is a healthy Growth attests, but you can hear here and there by spectacular failure of deals such as the billion-dollar contract between HP and Deutsche Post World Net. Of course, one wonders then whether the benefits from outsourcing the investment really worth it.

are actually all agree that outsourcing in the mix, how IT is deployed to capture a solid and respectable portion is. By 2011, the European outsourcing market by Gartner an annual growth rate is 5.1 - 8.6 percent made in view. The Germany market is projected by the Experton Group to grow in 2010 on average around 8 percent annually. "The German Outsourcing market should prove to be very robust in the medium term. The number of published German deals or contracts with German participation has grown steadily in recent years. The renewal rate remains high and new business in sight, "Andreas Burau, research director at the Experton Group describes.

According to British consultancy firm TPI, the European market are even on a 10jahreshoch. Duncan Aitchinson, president of TPI, means a always weaker economy is an important reason. rested with companies with outsourcing arrangements to reduce operating costs and to convert fixed into variable costs. Not only short-term Savings that were associated, for future growing seasons, one could set up dynamic.

Read access to the detailed article ZDNet

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Study: Offshoring not The main reason for the loss of jobs in the banking sector

financial firms to outsource more often than other organizations. According to a new study is offshoring is not the main factor behind the job cuts in banking, but are the IT and support staff affected greatly.

The restructuring is almost three-quarters of the redundancies at the bank responsible, however, the offshoring resulted in only 10 percent of cases, that employees have lost their jobs. This is the conclusion of a study of the German Bank following the summary of data on various European financial companies.

Thomas Meyer, author of the report, wrote: "Throughout Europe there is no correlation between the percentage of banks that their IT functions have outsourced, and the changes in employment in the banking sector between 2002 and 2006." According to the author, however, other factors dominate the relationship, such as the decline in the German banking sector and the Eastern European countries catch up in the area of financial development.

While in Britain in the four years to 2006 decreased the total number of employees in the banking sector by about 10 percent, took only about 14 percent of all banks offshoring services .

Among European banks operate almost 32 percent of IT staff and in the 38 percent of support staff abroad. The lion's share of offshoring jobs to India to the 41 percent awarded to the financial services companies. Right after the technology and telecommunications industries are at 19 percent, the manufacturing sector with 15 percent and retail company with about 8 percent.

a significant share of the offshore work in India provide software development, business process outsourcing, call centers and accounting. Financial firms, more and more on offshoring. 22 percent do this already, but how you can see, this number is still far behind the 90 percent outsource at home. But the study warns

the banks against the immediate positive effects of offshoring not be overvalued. According to Thomas Meyer about a third of the banks will need several years to come after the first year, was in the net additional investment into offshoring, the expected 20 percent cost savings.

Source: ComputerworldUK

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IT outsourcing on the rise despite global economic slowdown

The global economic downturn forces more companies to lower their costs and increase profits by the IT functions are outsourced to external service providers. According to market researchers, the market for IT services grow in 2008 continue to increase with expenditure on IT functions by 9.5% to $ 819 billion. The strength of the IT services market is also illustrated by the decreasing number of reports of profit declines for IT service providers in the UK. So it was in the second quarter of the hardware and equipment sector, only 12 such reports, compared to 20 in the first quarter. Outsourcing consultants argue that companies that are looking for ways to cut spending (given the unfavorable economic situation), reductions in projects that affect business operations, such as outsourcing contracts and major IT implementations do not need to be considered.

This left the IT service providers largely unaffected by the cuts in IT budgets. For long-term projects, it is highly unlikely that this will be reset due witschaftlicher factors. Moreover, SMEs also increase their IT spending to expand in the hope of their business and to minimize the reliance on manual processes, that is, to reduce personnel costs incurred.

Search within this period of economic decline, the buyers of outsourcing services increasingly to value-based contracts, whereby their views often directed to the east, in the hope of big savings and eliminate the need to move personnel. Although India is traditionally regarded as the outsourcing destination, China, Morocco and Ungran gaining in popularity. Actually opened in January 2007, eight p.m. IT services provider in the UK 21 new global sales offices, four of them in China, three in Eastern Europe, also three in Morocco and two in India.

The economy is in a downturn, rather than in recession, companies have the resources to offload. They are tools which intend to invest in the company of certainty about future benefits and savings. When outsourcing, companies have to an IT service provider Available to their needs and requirements best, while the service to raise high-quality resources and tools have to offer the buyer a strategic solution in accordance with the requirements.

Both the provider and the customer should see this economic downturn as an opportunity to drive the business harder.

Source: ComputerWeekly

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Ukraine leader in the European nearshore market

plays The Central and Eastern European IT outsourcing is one of the leading roles alongside such centers such as India, China and Russia. It is expected that the region still in the next ten years will develop extensive. This is the conclusion of a study of Ukrainian Hi-Tech Initiative.

On whopping three billion U.S. dollars estimated revenues in the IT outsourcing market in Central and Eastern Europe last year. In the study, 16 Central and Eastern European countries were examined, of which the Ukraine, Romania, Hungary, Poland and the Czech Republic reached peak values. The rear is Latvia, Slovenia and Albania. Calculation basis, sales in IT products.

Ukraine leads the statistics

According to the number of IT companies in Ukraine, Romania, Belarus, Poland and Bulgaria before the other countries. Here again, Latvia, Slovenia and Albania at the end of the list. The statistics included only those companies that offer more than ten employees outsourcing services . The number of employees was for the reason set so low because a large segment of the IT companies in Central and Eastern Europe employs a shortage of staff. Ukraine is also a leader in the number of employees. 14 000 IT professionals are concerned with outsourcing services. In second and third place are Belarus and Romania with 12,500 or 9500 people. was

The study also determines how much an individual IT professional per year and the end customer service costs, including wages, taxes and costs for business premises. In Poland, the leader 32800-66000 U.S. dollars, in Albania only 25920-45440 U.S. dollars.

What has to do with the German IT market?

How will these developments on the IT market, or could they have? Analyst Christian Berner does not see it as an economic option if the German IT industry with Eastern European outsourcing company does business. Possible would be that Eastern European countries are part of the cross-border value chain of German IT services. As one would already can observe in the automotive sector between Slovakia and Germany.

Source: CIO.de