Posted on January 25, 2012 by Atul
Unosquare 8 – How Safe is Guadalajara? – YouTube.
What a unique way for a nearshore player to showcase its offering but most importantly help allay concerns about safety and security. Kudos to Mike Barrett and his team for this unique approach!
Posted on December 19, 2011 by Atul
.: BNamericas.mobi / Newsletter mobi.
IBM creates Guadalajara Smarter Cities center in search of social solutions - Mexico, Regional
Published:Friday, December 16, 2011 15:52 (GMT -0400)
IBM’s (NYSE: IBM) Smarter Cities Exploration Center, created in partnership with Universidad de Guadalajara in Mexico, will look to develop high social and economic impact solutions for Latin America, representatives from both entities told BNamericas.
The center is said to be the first of its kind in Latin America, and is tasked with the mission of designing solutions to tackle infrastructure challenges faced by Guadalajara and other cities around the world.
Joint work between IBM and Universidad de Guadalajara will focus on research and sharing knowledge through the exchange of intellectual property among researchers. IBM’s data analytics, supercomputing and cloud computing capabilities will be used to drive development of new pilots and solutions.
The center has already started developing a transportation pilot that could reduce commuting time in the city by 15%, representing some US$90mn in savings a year by enabling citizens to use their time more productively and promoting energy efficiencies.
“This project will bring significant savings in terms of productivity, a reduction in traffic, less pollution in the city and, at the end of the day, less stressed citizens, because commuting is a real headache in big cities,” said Manuel Ávalos, the center’s leader in Guadalajara.
This pilot – the first in a series of initiatives – will provide real-time analysis and forecasting of traffic behavior for 1.7mn vehicles in Guadalajara, enabled by supercomputing technology, analytics and web services connected to mobile devices feeding updates to users. The objective is to increase the efficiency of commuting alternatives.
“Our challenge is to reduce commuting time by 15%,” said Víctor Manuel Larios, coordinator of the IT PhD program at Universidad de Guadalajara.
Traffic solutions also affect other areas, such as health, security and the resources available in a city, and “that’s why we decided to start with traffic,” Larios said.
In addition, mobile and smartphone use in the population provides the initiative with a great platform for crowdsourcing, as people can also participate by providing information.
“There is a strong government interest here to focus on health, improving services and security, but we still have to see what the priorities are. There is nothing concrete yet, but something for the health sector is the most likely,” Ávalos said.
According to Larios, the transportation project will serve as the basis for subsequent stages in building a smart city, including issues such as health, social services, security and education.
Posted on December 19, 2011 by Atul
.: BNamericas.mobi / Newsletter mobi.
IBM creates Guadalajara Smarter Cities center in search of social solutions - Mexico, Regional
Published:Friday, December 16, 2011 15:52 (GMT -0400)
IBM’s (NYSE: IBM) Smarter Cities Exploration Center, created in partnership with Universidad de Guadalajara in Mexico, will look to develop high social and economic impact solutions for Latin America, representatives from both entities told BNamericas.
The center is said to be the first of its kind in Latin America, and is tasked with the mission of designing solutions to tackle infrastructure challenges faced by Guadalajara and other cities around the world.
Joint work between IBM and Universidad de Guadalajara will focus on research and sharing knowledge through the exchange of intellectual property among researchers. IBM’s data analytics, supercomputing and cloud computing capabilities will be used to drive development of new pilots and solutions.
The center has already started developing a transportation pilot that could reduce commuting time in the city by 15%, representing some US$90mn in savings a year by enabling citizens to use their time more productively and promoting energy efficiencies.
“This project will bring significant savings in terms of productivity, a reduction in traffic, less pollution in the city and, at the end of the day, less stressed citizens, because commuting is a real headache in big cities,” said Manuel Ávalos, the center’s leader in Guadalajara.
This pilot – the first in a series of initiatives – will provide real-time analysis and forecasting of traffic behavior for 1.7mn vehicles in Guadalajara, enabled by supercomputing technology, analytics and web services connected to mobile devices feeding updates to users. The objective is to increase the efficiency of commuting alternatives.
“Our challenge is to reduce commuting time by 15%,” said Víctor Manuel Larios, coordinator of the IT PhD program at Universidad de Guadalajara.
Traffic solutions also affect other areas, such as health, security and the resources available in a city, and “that’s why we decided to start with traffic,” Larios said.
In addition, mobile and smartphone use in the population provides the initiative with a great platform for crowdsourcing, as people can also participate by providing information.
“There is a strong government interest here to focus on health, improving services and security, but we still have to see what the priorities are. There is nothing concrete yet, but something for the health sector is the most likely,” Ávalos said.
According to Larios, the transportation project will serve as the basis for subsequent stages in building a smart city, including issues such as health, social services, security and education.
Posted on November 22, 2011 by Atul
Outsourcing Wisdom 9 Global Services Trends for 2012Posted by Atul Vashistha on Nov 2, 2011 7:26:54 AMOut with the old and in with the new — well, almost! We do see “retro” back in fashion in some areas of the outsourcing market when looking ahead to 2012. What follows are nine key trends that CIOs can expect in the coming year in terms of outsourcing and global services. 1. Demand outlook is bright, with some points to consider. Demand will weaken initially, but then should improve by mid-year. The inhibiting factors and pain points will be:Continued tight budgets.Minimal discretionary spending, with approvals requiring rigorous ROI explanations. The majority of investments will need to show positive ROI within the fiscal year and, as a result, lead times and planning cycles will be short.Most IT budgets will be approved on a rolling monthly or quarterly basis.Systems integration, led by standardization and migration to common global processes, will lead growth. Simplify remains the buzzword for CIOs.Cloud computing offerings will stimulate greater demand for infrastructure outsourcing. Outsourcing providers, therefore, will revamp the architecture of their product offerings to fit the modular needs of a cloud environment. As a result, buyers moving to the cloud will create a big demand for redesigning software architecture, and also for quality assurance and testing services.The ROI of business process outsourcing will continue to be challenged. As providers support clients in this sourcing area, we see a lack of domain skills on their teams hindering deals.Outsourcing by midmarket companies will be on the rise, with much attention paid to platform-based, bundled outsourcing and transaction-based pricing. Typical examples are payroll and hosting services. 2. Operating models are going retro.There are some contradictions affecting the market. On the one hand, clients frustrated with suppliers’ rising costs, governance challenges and uneven performance are exploring in-sourcing more often. At the same time, continued hiring and attrition challenges at global businesses, and overall governance requirements, will accelerate buyers’ move to managed services models. This will need to shake out over the year. 3. Professionalization of outsourcing will increase.Supplier management and governance challenges will also spur the need for professionally trained managers. Programs such as the Certified Outsourcing Professional COP from the International Association of Outsourcing Professionals IAOP, and training workshops will be leveraged more often.Additionally, customers will increasingly see clear differences among suppliers in the services sector versus other outsourced product categories. As a result, high-quality procurement managers will be in greater demand.
via Welcome to Smart Enterprise Exchange: Outsourcing Wisdom: 9 Global Services Trends for 2012.
Posted on November 8, 2011 by Atul
Xerox looks to leapfrog in Latin American markets with ACS purchase – Regional
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Latin American countries are set to leapfrog in terms of technology, and Xerox (NYSE: XRX), with its purchase of US business process outsourcing company Affiliated Computer Services (ACS), is expecting to cash in on this trend, Hervé Tessler, Xerox's president of Developing Markets Operations (DMO), told BNamericas.
“Because countries in Latin America are growing so fast and they have far fewer legacy systems than in the US or Western Europe, they can really jump quickly to cutting-edge technology. That's where we've got the most opportunities,” he said.
Xerox breaks business down into two main areas – technology, which is the legacy business with printers, copiers and platforms; and services such as BPO and ITO, which according to Tessler has tripled in size after the ACS acquisition. Each area represents about half of the US$22bn company, he said.
Latin America has been growing about 10-13% a year for Xerox, the executive added. But “in the developing markets in Latin America, we have a very small services business. Most of our business is technology. If you keep that growing and then you add to that the potential in the ACS offering, as we're doing, then you can really accelerate growth. We should begin to jump to a very different level of growth.”
The overall DMO unit brings in some 10% of revenues for Xerox, “but that 10% is growing 5-6 times faster than the total company. We're an engine of growth” as the company overall expands in the low single digits, he added.
The executive sees two different layers driving BPO growth – the current engagement of worldwide Xerox customers like banks and telcos that are looking to expand, as well as some big local companies like Banco do Brasil. “If you look at the current pipeline in developing countries, about 50% is BPO, and of that, half is linked to global customers and half is new business with local, big players. The most relevant offerings have to do with customer care and developments in finance and accounting, and HR services,” Tessler said.
via Xerox looks to leapfrog in Latin American markets with ACS purchase, Regional, Info. Technology, news.
Posted on November 2, 2011 by Atul
Outsourcing Wisdom: 9 Global Services Trends for 2012.
Smart Enterprise Exchange
9 Global Services Trends for 2012
modified by Paula Klein in Outsourcing Wisdom - View the full blog post
Out with the old and in with the new — well, almost! We do see “retro” back in fashion in some areas of the outsourcing market when looking ahead to 2012. What follows are nine key trends that CIOs can expect in the coming year in terms of outsourcing and global services.
1. Demand outlook is bright, with some points to consider.
Demand will weaken initially, but then should improve by mid-year. The inhibiting factors and pain points will be:
- Continued tight budgets.
- Minimal discretionary spending, with approvals requiring rigorous ROI explanations. The majority of investments will need to show positive ROI within the fiscal year and, as a result, lead times and planning cycles will be short.
- Most IT budgets will be approved on a rolling monthly or quarterly basis.
- Systems integration, led by standardization and migration to common global processes, will lead growth. Simplifyremains the buzzword for CIOs.
- Cloud computing offerings will stimulate greater demand for infrastructure outsourcing. Outsourcing providers, therefore, will revamp the architecture of their product offerings to fit the modular needs of a cloud environment. As a result, buyers moving to the cloud will create a big demand for redesigning software architecture, and also for quality assurance and testing services.
- The ROI of business process outsourcing will continue to be challenged. As providers support clients in this sourcing area, we see a lack of domain skills on their teams hindering deals.
- Outsourcing by midmarket companies will be on the rise, with much attention paid to platform-based, bundled outsourcing and transaction-based pricing. Typical examples are payroll and hosting services.
2. Operating models are going retro.
There are some contradictions affecting the market. On the one hand, clients frustrated with suppliers’ rising costs, governance challenges and uneven performance are exploring in-sourcing more often. At the same time, continued hiring and attrition challenges at global businesses, and overall governance requirements, will accelerate buyers’ move to managed services models. This will need to shake out over the year.
3. Professionalization of outsourcing will increase.
Supplier management and governance challenges will also spur the need for professionally trained managers. Programs such as the Certified Outsourcing Professional (COP) from the International Association of Outsourcing Professionals (IAOP), and training workshops will be leveraged more often.
Additionally, customers will increasingly see clear differences among suppliers in the services sector versus other outsourced product categories. As a result, high-quality procurement managers will be in greater demand.
4. M&A will continue, but yield few benefits.
Small acquisitions, focused on specific domain knowledge, will continue among suppliers. The gap between high-end Tier 1 and smaller Tier 2 providers is wide — now including billion-dollar firms that have yet to stake a lead claim in their category; they need clearer differentiation.
Some niche, or Tier 2 players, will continue to prosper, but focus is key to their success. There are no clear leaders in this category yet, and CIOs need to ensure that detailed due diligence is done when selecting a Tier 2 partner. Assess whether there’s a good fit when it comes to your future plans and their investments.
5. Pricing is expected to be flat in spite of many upward pressures.
Continued pressure on suppliers will lead to flat — but not lower — pricing compared to 2010/11 levels. Moreover, weak exchange rates and the weakness of the U.S. dollar will put increased pressure on suppliers. This could be the time for businesses to get good deals on contract terms. Increasingly, outsourcing will move away from staff augmentation/time and materials toward output-based pricing and managed services.
6. Hiring and utilization will strengthen.
Expect to see more new-graduate hiring by suppliers as a result of market growth and the need to reduce costs. The better firms will continue to operate with staff utilization in the high 70 to low 80 percent rates. In addition, hiring in newer geographies — such as Brazil, China, Colombia Mexico and Poland — will divert some attention away from India.
7. Wages will rise, creating greater pressure on margins.
Higher inflation is causing wages to rise 10 to 15 percent in India and many other Asia/ Pacific locations, while the U.S.and Western Europe will see much smaller raises. Latin American wages will rise more than 8 percent.
8. Proactive risk management is important to the continued growth of the outsourcing industry.
More attention will be paid to the diversity of one’s geographic portfolio, and there will be greater concern with monitoring risk and compliance in case of disruption at supply locations.
9. Rising geographies will take market share away from traditional locations, but the overall pie is growing.
Eastern Europe and Central and South America are surging, and buyers will increasingly draw on suppliers’ global delivery models to provide time-zone coverage and to realize true 24×7x365 support. Offshore players will also continue to expand and/or set up operations in new geographies such as Brazil, China, Colombia, Mexico and Poland.
In conclusion, expect something new, something old and something borrowed in global services and outsourcing as we head into 2012. But most importantly, expect frequent change and avoid going long on risk.
Atul Vashistha is Chairman of Neo Group, a global advisory firm that helps clients source, monitor and manage global sourcing, program management and supply risks.
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Posted on November 1, 2011 by Atul
Introduction: State of the Outsourcing World
Today, outsourcing has become a mainstay of corporations. It is mainstream, it is global and it is rapidly changing. This dynamic has a huge impact on the competitiveness of global corporations. Yet, global sourcing is not what it was even a few years ago. Its complexity has risen manifold. It embraces multiple locations and multiple processes as companies seek, presumably, to optimize the gains from outsourcing and offshoring. This rise in use of outsourcing has been dramatic, exponentially raising the potential for outsourcing corporations and for nations seeking to provide the services. But it also has raised risks and brought on newer, and varied, risks, many of which are not fully assessed by risk managers. According to Gartner, the top 30 outsourcing destinations are emerging markets that bring varied and often high risks.
Over the past year, in particular, many of these risks have been brought to light by global events. Take the geo-political situation in Egypt that led to an unprecedented nine-day Internet shutdown; or the recent hurricane and floods in the USA that caused disruptions in operations from the south to the north-east. These two situations, in sharply contrasting locations – one, an emerging outsourcing hub and the other one of the world’s most industrialized nations – represent, probably, the worst nightmares of operations and outsourcing managers. But they are, by no means, the only possible doomsday scenarios. There are many other time bombs ticking away all the time, arising from the unique character of each country and city, endemic risks from financial turmoil such as the one in Greece and Portugal, policy-driven dynamics and even supplier-specific vulnerabilities.
Still, the higher risks are no reason for companies to turn the clock back on outsourcing or give up on further gains. The need of the hour, instead, is a proactive, and effective, risk-monitoring mechanism and strategy. This paper evaluates ways to monitor, predict and manage Global Sourcing & Outsourcing risks. In this paper, we assess the causes and the consequences of these risks, before presenting a model risk-management system that can monitor the risks, predict possible future occurrences of these risks and pro-actively manage them, ensuring buyers and suppliers can sustain, and even further, the gains from outsourcing and offshoring.
via Global Services – Global Supply Risk Management: Monitoring and Managing Global Sourcing & Services Outsourcing Risks.
Posted on September 6, 2011 by Atul Vashistha
Winds of change whistles through outsourcing industry
December 28th 2010 – Tuesday
By Atul Vashistha
Staffing augmentation, labour arbitrage and India. For many out there, outsourcing seems to be defined only by the above – people working for low compensation in locations such as India helping the client save significant monies.
That is outsourcing to them. However, the recent and continuing downturn in 2009 and 2010, has upset many notions and models that have been in place for over a decade. What was considered to be the norm or the normal as far as outsourcing is concerned, is now in flux and so requires different responses.
Take for instance, the call centre business. There was a time when India was the only market given due consideration, as far as setting up call centre operations was concerned. That notion has been dispelled by other markets such as the Philippines and Costa Rica, which have showcased themselves in exemplary fashion as far as the provision of voice-based customer support services is concerned. In similar manner, we see the rise of engineering services and local players in Brazil and Russia, increasingly emerging as a premier destination for the outsourcing of complex engineering and applications activities.
The above instances are just some of the many shifts and changes we are likely to continue to witness. In particular, they point towards an endeavour to be on the lookout for markets with newer skill sets, and not just go by established norms wherein predestinated markets such as India have long been considered to be the haven for any and every kind of outsourcing.
Spreading risk
In the same breath, it is vital that markets with access to equal or better technology processes are also identified. The situation is akin to the age old maxim wherein stock diversification is key to a healthy nest egg; depending on just one or more markets for all of one’s outsourcing needs is really not a very good idea. Increased attrition and competition for resources point to the need for geographic diversification. Besides skill sets and technology, there are other reasons for which alternate markets also need to be actively considered.
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