Needs for IT outsourcing
IT companies spend countless amount of days and hours developing various kinds of software for their clients. The global organizations today have become more sophisticated and they need to develop complex systems, elevate their economic growth, increase the competitiveness and enhance their performance. These organizations range from banks, financial institutions, airlines, engineering and government agencies. Because of this, they need a lot of capital and people to handle the growing tasks for different types of softwares that is needed for the company.
Most of these organizations want to concentrate on their core objectives, thereby they have to outsource their secondary corporate functions to reliable IT firms in other countries. Countries in western Nations such as USA, Canada and some in Europe are outsourcing some of their IT projects to countries such as India, Philippines, China and some Eastern European nations in order to cut on costs of their IT operations, reduce the cost of hiring and training too. IT offshore outsourcing has a huge benefit to organizations on cost savings due to wage difference combined with highquality skills.
The IT industry is very competitive world, and in order to stay in the competition, you must impress your client so they can keep pumping new projects. This will guarantee the growth of your company. Outsourcing IT not only makes sure you stay in the competition but will bring about huge amounts of savings in terms of salary and also other expenses that your company may provide your employees, hence your company will grow.
The huge number of IT jobs outsourced concentrate on creating softwares such as .Net, database solutions, smart card solution, Java/J2EE, and wireless application developments.
If you want to create this kind of softwares inhouse ,the you have to invest unbelievably huge amount of cash and manpower. So outsourcing remains the only choice because technology and manpower in on standby.
There are millions of highly qualified and talented IT professionals in developing countries. And the good news is that they are not expensive to hire. For instance,think about this, if you need a certain software developed inhouse in your company, you will be charged 2000 dollars, but if you outsource it to an equally qualified IT professional it will be done for 500dollars .This is a clear picture the you end up saving a lot of money when you outsource rather than developing the project inhouse.
We can all agree that by outsourcing IT protects to other companies, you will not only save a lot of money,but the quality of IT software will be great and will be handled by equally talented and qualified professions at a lower cost . With huge savings , your company will grow and will pull more client to you.
Last but not least IT outsourcing is great because you can outsource all the minor projects and put the focus on major projects. This means that you will be able to effectively manage your companys priorities with outsourcing. With outsourcing, you will be able to save a lot of money, prioritize your companys goal and also get quality IT software products.
Advantages of Outsourcing
o a layman, outsourcing would seem like a waste of time and money, as well as an unneeded complication. After all, why send business abroad when the work can probably be done better right at home? To a politician, the issue of outsourcing serves as a fortified objection to taking jobs away from ‘our own countrymen’. Sympathy towards this issue may elicit a few votes, but nothing more.
But to a businessman, outsourcing is a modern day boon. Outsourcing grants businesses the freedom to dump non – core, yet important sectors of its administration on companies specializing in those very individual aspects. Thus, leaving the businessman free to wholly concentrate on those areas of the company that bring in the real moolah.
The most enticing advantage of outsourcing is the cost effective factor. Human resource and IT services in the United States or Europe are not exactly inexpensive. Let’s avoid complicated business jargon and say that outsourcing is basically an option that offers these services at a much, much lower rate i.e., a cheap but highly productive mass work force. Let us take India as an exemplary illustration.
Thousands of highly intelligent people graduate in a variety of fields each year. Almost all of them speak English better than the English, and have dreams of making big money in a short period of time. The boom of BPO’s in the last 10 years has given them a chance to realize those dreams. It provides them with the opportunity to stay close to home and earn almost as much as they would if they took up a job abroad. On an average, an individual would earn $ 300 to $ 500 per month. A small sum to an American, but an Indian would be quite happy with that salary considering the conversion rate. It’s a win – win situation for your business as well as the company you’re outsourcing to.
There is no dearth of candidates willing to suffer incessant night shifts. Due to a constant effort of having to prove themselves, you can be assured of enhanced quality and productivity at all times. The company you outsource to will always be sure to reach your targets, deliver on time, ensure stringent security and maintain a level of productivity which won’t tempt you into taking your business elsewhere. Employees are regularly evaluated and terminated if found wanting in any aspect. The entire process of recruitment and the hassles involved with finding (and sustaining) the right person for the job is taken off your shoulders.
By 2006, in addition to human resources and IT services, companies that take on offshore contracts will also offer tax preparation and back office services. Hundreds of commerce students graduate in India each year and go on to become chartered accountants in a country where there is no dearth of them. Offering these services to countries abroad would be lucrative for both parties. The most advanced security procedures will be employed in this regard.
It all comes down to the money. Let’s face it; we live in a material world. And the technical term for material is moolah. So until the day the cons of outsourcing outweigh the monetary factors (read pros), outsourcing; as a legitimate and lucrative way to do business, is here to stay.
Toshiba Corp. plans to open a development center next month in Vietnam that will work on embedded software for consumer electronics products.
Toshiba Software Development (Vietnam) Co. Ltd. will be based in Hanoi and initially employ around 20 people but is expected to expand to about 300 employees over the next three years, Toshiba said.
At the center low-level software processes will be developed and combined with upper processes from developers in Japan to make up the embedded software that runs in many of the company's digital consumer electronics products and cell phones.
Toshiba said its choice of Vietnam as the location for the new center was partly due to the availability of skilled personnel and lower wages that can be paid in the country. Toshiba already has ties to the country and supports scholarships to Vietnam National University and Hanoi University.
The Tokyo company has software development centers in India and China and the new Vietnamese center is part of its plan to increase software development work over the medium term while not concentrating resources in any one country.
IBM opened a new technology center and announced two research pacts with universities in Vietnam on Friday, saying it sees promise in the developing nation.
IBM's first Innovation Center in the Vietnam aims to help local developers create new technologies for digital infrastructure projects in banking, telecommunications, energy and government, the company said in a statement. It will offer training workshops, consulting services and assistance to researchers working to bring new technologies to market.
There are incredible opportunities in information in Vietnam as the country embraces technology in its transformation from an agricultural to an industrial nation, IBM said.
Vietnam last week unveiled a US$8 billion government stimulus package, most of which is targeted at infrastructure and development projects.
The new innovation center is located in Ho Chi Minh City, formerly known as Saigon.
Technology multinationals often build such technology centers in developing countries to encourage local innovators to create software using their developer kits and attract business from governments and local companies.
IBM runs 43 Innovation centers worldwide.
IBM said it will also launch the first Vietnamese language version of IBM developerWorks, a part of its Web site that provides resources to software developers and other IT professionals.
The company signed two agreements to work with Vietnam National University in Ho Chi Minh City and Hanoi on separate technology projects. In Ho Chi Minh City, IBM will work with academics to establish a new university cloud computing center and cloud curriculum, while in Hanoi, IBM will help with the establishment of a new department aimed at improving various segments of the services industry called service science management and engineering.
The initiatives are partly a "response to accelerated IT growth in Vietnam," IBM said. Internet use is already widespread and continues to increase in Vietnam, IBM said, while the country's IT sector has grown at 20 percent annually in recent years.
There were nearly 21.2 million Internet users in Vietnam at the end of April, 2009, according to the Vietnam Internet Network Information Center
.NET Framework (NetFx or Fx) version 3.5 has two elements to it that must be understood: the green bits and the red bits. The original references to this term are on old blog posts by Soma and Jason. Compared to those two blog entries I have the advantage of 13 months of hindsight , so I will provide here the details behind those descriptions in my own words starting with my own slide:
When we say red bits, those are Framework bits that exist in RTM today i.e. NetFx v2.0 and NetFx v3.0.
NetFx v3.5 includes updates for those two existing frameworks. However, those updates are not a whole bunch of new features or changes, but in reality a service pack with predominantly bug fixes and perf improvements. So to revisit the terminology: Fx 3.5 includes v2.0 SP1 and v3.0 SP1. Like with all service packs, there should be nothing in there that could break your application. Having said that, if a bug is fixed in the SP and your code was taking advantage of that bug, then your code will break of course. To be absolutely clear, this is an in-place upgrade to v2 and v3, not a side-by-side story at the framework/clr level. I will not focus anymore on the Service Pack (red bits) improvements in Fx 3.5. If you are interested in that you may wish to read my previous blog posts here, here, here and here.
When we say green bits, we mean brand new assemblies with brand new types in them. These are simply adding to the .NET Framework (not changing or removing) just like Fx 3.0 was simply adding to v2.0 without changing existing assemblies and without changing the CLR engine. It is here where you find the brand new stuff to talk about. In Beta 1, the list of new assemblies (green bits) is:
1. System.Data.Linq.dll – The implementation for LINQ to SQL.
2. System.Xml.Linq.dll – The implementation for LINQ to XML.
3. System.AddIn.dll, System.AddIn.Contract.dll – New AddIn (plug-in) model.
4. System.Net.dll – Peer to Peer APIs.
5. System.DirectoryServices.AccountManagement.dll – Wrapper for Active Directory APIs.
6. System.Management.Instrumentation.dll – WMI 2.0 managed provider (combined with System.Management namespace in System.Core.dll).
7. System.WorkflowServices.dll and System.ServiceModel.Web.dll – WF and WCF enhancements (for more on WF + WCF in v3.5 follow links from here).
8. System.Web.Extensions.dll – The implementation for ASP.NET AJAX (for more web enhancements, follow links from here) plus also the implementation of Client Application Services and the three ASP.NET 3.5 controls.
9. System.Core.dll – In addition to the LINQ to Objects implementation, this assembly includes the following: HashSet, TimeZoneInfo, Pipes, ReaderWriteLockSlim, System.Security.*, System.Diagnostics.Eventing.* and System.Diagnostics.PerformanceData.
Collected from Daniel Moth blog
According to a new report on global business optimism from consulting firm Grant Thornton International, Vietnam has become the country where the greatest percentage of companies expect to see profit growth.
The report was based on surveys of 7,400 managers of medium-to-large privately held companies in a broad range of sectors – mainly cleantech, food and beverage, construction and real estate, hospitality, transport, manufacturing, retail, financial services, health care, and technology – in 36 countries to gauge which holds the greatest upside potential for 2010. Vietnam scored highest in three forward-looking growth categories: employment, revenue, and profitability.
Of 150 companies surveyed by Grant Thornton in Vietnam, 95% expect higher revenues and 92% say profits will increase in 2010. The global average was 54% and 47%, respectively. A new survey by HSBC of small-to-midsized enterprises also puts Vietnam on top for business confidence in Asia.
(Source: Grant Thornton)
In the past, companies normally hire offshore providers in order to outsource services related to non-critical business processes including customer support and contact marketing. Offshoring has been used also for labor-intensive projects because the labor costs in some countries are quite cheaper.
However, a new trend is emerging nowadays. With the advancement of information and communication technologies, companies are outsourcing critical projects like software development.
Remote software development is usually carried out in-house. But the increasing cost of maintaining in-house experts has become too prohibitive. That is why companies are outsourcing software development primarily to save money.
The Advantages of Outsourcing Software Development
Cost is always a big factor why companies are outsourcing software development. The savings can be substantial because you will only pay for the services on a per project basis.
Through outsourcing, you will get a dedicated team of IT experts who are really not in your employ. So there is no need for you pay salaries, benefits, and paid vacations.
The high rates of successful projects delivered by providers also made outsourcing popular. The positive results of the delivered projects enable companies to get the job done without investing too much time on the development phase.
Outsourcing also fills the gaps in your organizations. If your company lacks the necessary manpower to undertake IT projects, then a dedicated team of remote providers can fill the void in your organization. This improves the capabilities of your company even without hiring new employees and experts.
Getting the Best from Your Remote Team of IT Experts
Although outsourcing software development is slowly becoming more popular, there are still some companies that are apprehensive about remote services. Some of these companies are usually worried if the result of outsourced software development projects would be satisfactory.
In order to make sure that you will get the best results and best support from your outsourcing team, you have to take the necessary steps to ensure proper implementation of the project. You must also carefully choose a provider or an outsourcing company that has the right expertise.
The first thing you need to do is to evaluate and closely review the proposal given to you by the provider. The project proposal on software development is a good indicator of expertise. Based on the proposal, you will be able to ascertain if the service provider or outsourcing company has the right expertise.
You must also research the background and work history of the provider. Look for positive and negative feedbacks from previous clients. Service providers and outsourcing companies are usually rated by previous clients. So these are good indicators of competence and expertise.
Lastly, make sure that your requirements are clear and the lines of communications between you and the service provider are working properly. In outsourcing projects, communications play a key role in the success of the implementation. It is also very important to set strict timelines and clear deadlines for the delivery of the project. These will ensure that the service provider will work on your software development project without delay.
VietNamNet Bridge – Leaders of countries which have developed IT industry shared development strategies to help Vietnam become an IT power at the 2010 ASOCIO conference in Hanoi from June 17-20.
Asia-Oceania Computing Industry Organization to meet in Vietnam
The plenary meeting of the Asia-Oceania Computing Industry Organization (ASOCIO) attracted 150 delegates, including policy-makers, entrepreneurs and leaders of IT associations from 15 countries in Asia and Oceania. Among them were Dr. Dan E Khoo, Chairman of the World Information Technology and Services Alliance (WITSA) and Kien Leong Looi, ASOCIO Chair.
At an international seminar titled “State and Enterprise Cooperation to develop IT,” Dr. Dan E Khoo shared Malaysia’s experience in developing IT. According to Dan E. Khoo, the government has provided incentives in terms of infrastructure, offices, taxes and human resources for IT firms in the last 20 years. From a country which had to import almost all of its IT equipment and services, the IT industry now accounts for 9.8 percent of Malaysia’s GDP. Malaysia has become an IT exporting country.
Kelly Hutchison, of the Australian Information Industry Association, shared experience in building competitive advantages through encouraging creativeness in IT businesses.
A representative from the National Indian Association of Software and Services Companies (NASSCOM) said investment in human resource training is the key to the success of the Indian IT industry.
Sugiyama, vice chairman of the Japan Information Technology Service Industry Association (JISA), showed the great opportunities in processing software the Japanese market has capitalized on. He said Japan’s need for software processing rises up to 30 percent a year, reaching $4.3 billion in 2008. Vietnam is now Japan’s third largest software processing partner, after China and India.
Speakers from South Korea and Vietnam said human resources are their top priority. Jeung-bae Son, managing director of the Federation of Korean Information Industries (FKII), said South Korea is implementing an IT human resource training system named Hanium, which is strongly supported by the government. FKII is willing to share this programme with Vietnam.
Deputy Minister of Information and Communications Nguyen Minh Hong said the Vietnamese government always gives priority to IT development. Hong said Vietnam is building a new IT development strategy, which aims to turn Vietnam into a strong IT country by 2020.
ASOCIO Chairman Kien Leong Looi said the growth of IT development policy in each country is similar to how one builds a football team. The coach must understand his players and use proper techniques to fully utilize all of the strengths of each player and to mitigate the team’s weaknesses.
Looi said governments need to understand the needs of enterprises and society at large and have suitable policies to maximize local resources for IT development. Cooperation between the state and enterprises is the key to creating suitable policies and an amenable environment for the development of an IT industry, said Looi.
Pham Tan Cong, vice chairman cum secretary general of the Vietnam Software Association, said that after the ASOCIO conference 2010, Vinasa and the Council for Policies to Develop Vietnam Software Industry would send their delegations to other countries in the region to gain experience and help create models to develop the IT industry in Vietnam.
ASOCIO is a group of IT industry associations from various economies in Asia and Oceania. Established in 1984, its objective is to promote, encourage and foster relationships and trade between its members, and to develop the computing industry in the region.
ASOCIO represents the interests of 28 economies, comprising 21 members from Australia, Bangladesh, Cambodia, Chinese Taipei, Hong Kong, India, Indonesia, Japan, Laos, Malaysia, Mongolia, Myanmar, Nepal, New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Vietnam and seven guest members – the USA, UK, Canada, Spain, Russia, France, and Kenya.
Today, ASOCIO’s members account for more than 10,000 ICT companies and represent approximately $300 billion in ICT revenue for the region.
Collected from: http://english.vietnamnet.vn/tech/201006/Vietnam-to-become-an-IT-power-by-2020-917415/