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crisis provider to Global Sourcing

Due to the obvious cost advantages, can the German SME integration of near-shore components do not escape any longer.

The issue of cost reduction in the company has at least since the beginning of the financial crisis and looming recession again a top priority. According to estimates by Berlecon Research will benefit mainly offshore suppliers. The prices for nearshore and offshore services be far only a fraction of the normal daily rate in Germany for like IT services, the experts argue. would Apart from the rapid rise of wages in traditional low-wage regions such as India pass up to the balance of prices in the IT services market for several years.

have Whereas almost all major IT vendors now have their own nearshore and offshore capabilities, the German middle class here so far not very active. Berlecon but assumes, consider that in view of rising cost pressures, many smaller IT and telecommunications providers the ability to integrate near-and offshore components. The analysts recommend this strategy clear: "Global Sourcing in the ICT environment is feasible and worthwhile for SMEs," they write in the market analysis "Near-and Offshore IT Services 2008". That shows a further report, which illustrated using four case studies as medium-sized IT companies to build with the help of specialists nearshore capabilities and successfully integrate into its own portfolio.

Source: Computerwoche.de

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IDC lowers forecasts for IT market in EMEA

IDC expects the economy in Europe, Middle East and Africa (EMEA) 2009 now almost three percent growth of the IT market. That is 1.5 percent less than last forecast (before the financial crisis). It is forecast to decline in Western Europe IT spending to only 1.2 percent while reflecting a marked decline in investments and a decline in gross domestic product and the regions in Central and Eastern Europe and Middle East / Africa are likely to continue but very healthy growth (9.4 respectively 8.5 per cent) have. likely to be affected mainly the (discretionary) spending on hardware

from the new regulation, estimates IDC. PC replacement cycles would be moved, and the demand for servers and storage to decline in view of suspended or canceled projects together. For spending on software, is the growth almost halved to 4.1 percent. Investment in upgrades of business software would be postponed, especially in infrastructure. The market for IT services will feel the recession because of declining demand for project-based services, could also the pressure rise, renegotiating existing outsourcing contracts, according to the forecast, the market researcher.

Source: Computerworld.ch

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increase outsourcing budgets in 2009

The financial crisis and looming recession meant that the IT spending were generally reduced. But otherwise it looks on the IT Outsourcing market: According to the planning application in 2009 to increase outsourcing spending tend to increase. For this purpose, asked the Experton Group 66 German user companies that have already outsourced IT areas: 25 percent expect it for next year with higher outsourcing budgets than in 2008. 15 percent expect the decline in spending, and are at 60 percent of respondents the budget for external IT services remain constant. According to analysts, this is a clear sign that the outsourcing market will grow in the future. It is the selective retrieval popular. The users make their budgets more and more ready for smaller deals.

The different sourcing models require regardless of the amount of each deal different outsourcing budgets. Shall devolve to a complete outsourcing of inherently higher costs than with a tasking projects.

Source: throws Computerwoche

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worldwide economic slowdown and IT Outsourcing: Truth and myths

TEAM International's look at the most recent studies on the influence the world economic crisis on the IT outsourcing and provides expert opinions on how the outsourcing companies can benefit from the resulting situation known.

It is hard to deny that today's global economy was exposed to the challenges in the housing market, banking and financial services sector of a hard test. The fear went for the ball, and the IT outsourcing industry will be through the crisis dragged into the abyss, as reflected in a dramatic decline in the number of offshore contracts is. Whatever the case, the situation seems to follow the most recent studies to be not bad. Quite the contrary. According to EquaTerra, a sourcing advisory firm, reported 40 percent of the surveyed outsourcing service even higher demand for their services, rather than an economic downturn.

The offshoring industry will benefit from the cost pressure of the end user. In the European Union seems to demand even lie to the moment from the U.S.. 34 against 25 percent in the United States. Nevertheless, gave 38 percent of the surveyed companies have reduced their outsourcing deals, given the uncertain market situation in the short term or even put on ice. But in fact the crisis is behind it or just the general panic? According to Martyn Hart of the National Outsourcing Association was brought offshore outsourcing always with a considerable reduction in costs related. Many companies have proclaimed for years to come an aggressive policy to reduce costs, which will probably lead to the increasing number of offshoring contracts considerably.

The recent study by Forrester Research to result in 46 percent of the 268 Global 2000 companies reduce their IT budgets at times, while only 21 percent of spending for IT services have decreased. We can therefore conclude that in times like these savings that will flow investment in IT offshoring continues. Moreover, even those being forced to outsource such steps are not so far gone to save costs.

Read more at ITOnews.eu

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Successful IT Outsourcing in times of economic uncertainty

Successful IT Outsourcing in times of economic uncertainty
Successful Multi-sourcing is a major topic at the Gartner Technology and Strategy Conference 2008, 2 and 3 December in Frankfurt. According to IT market research and advisory firm Gartner, IT and management in company with the outsourcing service form a magical triangle of understanding, cooperation and goal orientation in order to implement successful IT sourcing projects.

The financial crisis and the resulting economic uncertainty for many companies inevitably lead to a review and the internal IT infrastructure in search of flexibility and agility. Outsourcing of certain processes and services, here is an often chosen way to achieve these objectives with optimum use of resources. Many sourcing projects fail, however, because the IT and thus have the IT service provider to low visibility throughout the company and vote so that their tasks too little with the overall business objectives. According to the Gartner CIO Survey 2008, it applies to 61 percent of companies surveyed said that the CIO does not have direct access to management.

The Magic Triangle - understanding, cooperation and goal orientation

outsourcing works best when the three groups involved, ie, management, IT and external service providers develop an understanding for each other. For example, if the service gets direct input from the business level, he can understand their requirements better and thus more proactive and efficient. The management in turn can assess a better understanding of IT and external partners and communicate their value better in reverse also their own goals and aspirations more closely with the two parties, thereby working strategic IT and service and disciplined.

creates Such, magic triangle that is more understanding, better cooperation and ultimately a higher fiscal benefits for the entire company. "The majority of the company strives not enough, business and IT to coordinate. It is also in Germany, Austria and Switzerland, many examples of companies that have improved with the help of a cross and thus the results of successful co-sourcing projects, "said Frank Ridder.

Read the full article with IT Times