Europe or North America – Who Will Spend More on Software Outsourcing?

With anti-crisis plans adopted and the first shock and mess settling down, the ITO buyers and providers are back to daily work. In a challenging environment requirements and priorities change, and new trends surface. Most market players talk of increasing demand for nearhsore software development services in Western Europe, and stay generally optimistic about offshore outsourcing as an important element of the global economic equation.

According to the latest edition of global management consulting firm A.T. Kearney’s Global Services Location Index (GSLI), a ranking of the most attractive offshore destinations, the outsourcing landscape has changed worldwide as Europe already spends more on outsourced services than North America. North America has been regarded as the leading user of offshore services for many years.

Western Europe displays increased interest in using nearshore locations. One of the best options is engaging a software services provider with conveniently located software development centers in Central and Eastern Europe, a region most promising in terms of quality, stability, and costs.

Moreover, A.T. Kearney study reveals a rather optimistic forecast regarding the future of offshore outsourcing, stating that offshoring has become an integral part of the supply chain for the financial, banking,and IT sectors, and expects the industry to continue to grow over the long term.

Source: ITO News

Read more...

Tune up for Business Growth, Guru Says

The world’s trusted leader in IT research Gartner has recently given a reassuring outlook on the future of Information Technology business. The guru advisor doesn’t claim to predict dates for the economic recovery, but suggests that businesses already prepare their IT operations for the near upturn.

Despite that all of the leading economies (including US and UK) report recession and are cautious of any optimistic comments, Gartner analyzed the real market situation and revealed that many organizations are already working at near- or full-capacity levels. The research firm thus advises that IT enterprises should as early as possible prepare their business for an increased demand of IT services to be all fit and ready when the economy stabilizes.

“Waiting until that new demand arrives will be far too late to appropriately meet it, and we are recommending that companies start preparing for business growth now with a view to having these plans completed by July 1, 2009," noted Gartner analyst Ken McGee. "Having a completed plan will enable the near-immediate allocation of funding and staffing for IT projects, thus avoiding the need to take weeks to devise a plan after senior executives mandate the need to support business growth initiatives."

Not trying to speculate on the prompt end of recession, the analyst firm none-the-less advises that software vendors should not wait for an 'official' declaration, and shrewdly gear up for better times in advance to catch the fattest worm.

Source: InformationWeek

Read more...

IT Outsourcing during Recession Time

IT outsourcing providers are likely to grow their business in the economic slowdown, researchers have claimed. Analysis of US Department of Commerce data by Forrester Research found that the IT budgets of North American and European businesses are expected to increase by three per cent. Chief information officers are expected to focus on improving efficiency and helping to cut costs by increasing productivity, the report said.

"Sellers of communications equipment, software, and IT consulting and outsourcing services will see one or two quarters of declining revenues, but on average will still grow modestly in 2009," said Andrew Bartels, vice president at Forrester.

IT outsourcing firms are predicted to benefit from companies looking to reduce costs. "Whenever there's a downturn people outsource more, not less," says Gartner analyst Linda Cohen. "Organizations want to take costs out wherever they can. CFOs are pounding on their CIOs to just outsource it, just offshore it."

Source: ihotdesk

Read more...

New Jersey's Fastest Growing Firms

NJBIZ, state's weekly business journal, recently announced the fifty fastest growing companies. Companies were ranked based upon both dollar growth and percentage growth in revenues from 2005 through 2007.

EPAM Systems, Inc., an IT outsourcing leader with subs in Central and Eastern Europe, was ranked 5th on this year’s list. Founded and headquartered in Lawrenceville, EPAM made the New Jersey's Finest list for the 3rd consecutive year, showing sustainable business growth.

"We are proud to be among the winners of this prestigious award. EPAM's technology expertise and global presence that help companies outsource critical IT needs in a timely and cost-effective manner — in our case, worldwide — have served us, and our clients, well. Congratulations to all the winners! We are committed to continue bringing value to our clients, while growing EPAM Systems in this difficult business environment," stated Arkadiy Dobkin, EPAM President and CEO.

Source: epam.com

Read more...

Innovation and Growth: The Software 500

Innovations drive the software industry which has once again been proved by The Software 500, a revenue-based ranking of the world’s largest software and services suppliers targeting medium to large enterprises, their IT professionals, software developers and business managers involved in software and services purchasing. This year The Software 500 saw more than 100 new companies on the list for the first time, and the public/private company breakdown is 58% public and 42% private.

According to the results of the survey, the software industry continues to grow in total revenue, representing growth of 14.7% from the previous year ($451.8 billion in 2008 compared to $394 billion in 2007), while the total employee growth rate of 1.3% shows modest increase in comparison with 2007.

EPAM is proud to be named on the list (having advanced to the 190th place) along with 29 of its ISV clients, ranging from promising start-ups to global software leaders including three of the Top 10 honorees.

"We would like to congratulate our 29 ISV clients who made this year’s list. We extend our thanks for the opportunity we have enjoyed to grow together and to leverage each other’s strengths," commented Arkadiy Dobkin, EPAM’s President and CEO, noting: "We are also confident that many of our younger, but nevertheless innovative and fast growing clients will make the list in coming years."

Source: Softwaremag.com

Read more...

Russian IT and Outsourcing Industry to Keep Growing

According to “Russia IT and Outsourcing Industry Forecast to 2011”, a new research report by RNCOS, the Russian IT & outsourcing market has been growing at a rate of more than 20% since the past few years. Software spending has reported high growth rates; furthermore, it’s believed that it will continue to lead the growth patterns in the IT industry during 2008 to 2012.

The Russian software and services market will be mainly driven by the country's emergence as an IT Outsourcing (ITO) centre, thanks to its close proximity with Europe, similar time zone, and availability of high quality workforce at a competitive cost. The ITO market is undergoing phased transformation and is progressive from nascent stage to the development stage. Investments are also being phased in from both the government and private sector. The Russian government is increasing its IT investments in order to expand and develop the IT infrastructure in the country. Private sector investments are concentrated into opening of new software development centers in the country and also towards the expansion of the existing software development centers.

Source: RESEARCH AND MARKETS

Read more...

IT will Survive the Economic Recession

In one of its recent articles CIO Magazine listed the major reasons why technology industry will survive the economic recession. It looks quite comforting that despite all of the forecasts and instability, most IT industry experts are predicting that sales of software and services will be growing at a healthy clip again within the next 18 months.

IDC forecasts that the market will grow 2.6 percent in 2009 instead of the 5.9 percent predicted prior to the financial crisis. The healthiest economies will be in Central and Eastern Europe, the Middle East, Africa and Latin America.

Furthermore, Forrester predicts IT outsourcing will grow around 5 percent in 2009 and 2010 as many companies will freeze new IT initiatives for the next three to six months and turn to IT outsourcing because it provides near-term cost reductions.

Similarly, Gartner's worst-case scenario for 2009 is that IT spending will increase 2.3 percent, according to a report released in mid-October. Overall, Gartner said global IT spending will reach $3.8 trillion in 2008, up from $3.15 trillion in 2007.

Source: CIO

Read more...