1. Articles in category: Sourcing : ITO

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    1. Acquisition signals increasing role of AI in outsourcing

      With its announcement last week that it will purchase enterprise artificial intelligence (AI) and automation vendor Rage Frameworks, Genpact became the first IT and business process service provider to acquire an AI platform.  The addition of Rage Frameworks, which has been applying machine learning and language processing to build intelligent automation platforms for financial services, capital markets and supply chains, “will take Genpact deeper into integrating semi and unstructured data and AI, where we see the true marriage of business processes with clever technology and self-developing algorithms,” says Phil Fersht, CEO of outsourcing analyst and consulting firm HfS Research.

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    2. Transform your IT from cash-eater to profit-maker with managed IT as a service

      The vast majority of cloud migration programs supporting IT transformation rarely end up with the promised business benefits. These scattered initiatives, decided in the CIO’s office, are often disconnected from any basic business strategy. Who can objectively pretend that leveraging the cloud to cut IT costs and streamline IT operations is enough to help the business become an innovation champion, prevent market share erosion or stop customer churn? These are actually the challenges.

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    3. An action plan for cloud management

      Companies everywhere are moving core enterprise systems to the cloud. Formerly complicated and expensive on-premises outsourcing implementations are now relatively simple and inexpensive in the cloud. This reduction in cost and complexity is causing an explosion of cloud services and cloud service providers. With multiple cloud services, many companies are losing track of the who, what, where, when and why of their data.

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    4. Outsourcing trends to watch in 2017

      This year, we saw outsourcing integration challenges multiply, production workloads and enterprise systems hit the cloud, and security hit the top of the agenda. So what’s ahead for 2017? Uncertainty for one thing. Industry watchers expect a number of shifts in the IT and business process services space — not least of which will be the initiation of more flexible outsourcing terms as the world watches and waits to see what happens once president elect Donald Trump takes office and Brexit takes hold.

       

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    5. 5 core topics Trump needs to address in Silicon Valley leaders meeting

      As some of the tech sector’s heaviest hitters prep for a meeting this week with president-elect Donald Trump, they need to make sure they get answers to critical questions about issues that could affect not only their businesses but the U.S. economy in general. While the meeting has been called by Trump, the Silicon Valley executives should be prepared to set some of it themselves so they aren’t blindsided by policy shifts that can affect their success. Items of interest range from encryption to China policy.

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    6. Major IT outsourcing acquisition will have mixed impact

      The announcement that outsourcing consultancy Information Services Group (ISG) will acquire competitor Alsbridge marked the biggest M&A announcement in the IT services advisory industry since KPMG bought EquaTerra in 2011. The two large independent outsourcing advisors are joining forces to create a 1,300-person firm with offices in 20 countries revenues targeted at between $285 and $300 million in 2017.

      [ Related: Cloud services now account for a third of IT outsourcing market ]

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    7. A year after separation, HP and HPE are still trying to shed rust

      Five years ago, then Hewlett-Packard CEO Leo Apotheker was derided for an abrupt plan to spin off the PC division from the mothership. It happened anyway in 2015, when the idea seemed more logical. The spinoff led to the creation of HP, which focuses on PCs and printers, and Hewlett Packard Enterprise, which focuses on enterprise hardware and the cloud. Now a year after the split, the companies are still trying to shed off the rust as they try to stand on their own legs.

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    8. Five ways inadequate requirements wreak havoc with enterprise software purchases

      There are multiple reasons why major software purchases fail, but one of the most common is that of an inadequate requirements analysis. The problem is caused by people being unfamiliar with requirements gathering techniques, and by grossly underestimating the amount of work involved. Requirements are to software selection as foundations are to a building. Get them wrong or leave things out and there always will be problems. This article examines the consequences of missing requirements in the analysis phase and describes how to avoid the problem in the first place.

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    9. Like Everything Else, IT Service Contracts Ripe for Disruption

      The world of IT is changing at lightning speed, thanks to digital transformation, cloud adoption, issues of cybersecurity and shifts in customer expectations. As a result, many organizations have found that their third-party contracts are out of date and need to change: Contracts that are still based on the sale of uptime and break/fix, for example, need to be reimagined as business solution purchases.

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    10. Why Vietnam is an attractive IT offshoring destination

      Vietnam’s technical talent, retention rates and modern tech infrastructure has attracted the likes of IBM, Microsoft and Intel to set up operations there. While it will never be able to offer the scale of IT services hubs in India and China, Vietnam is increasingly an attractive alternative for IT organizations that are frustrated with high turnover and rising costs in the usual offshore locations.

      [ Related: Is Vietnam a viable offshore outsourcing alternative? ]

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    11. Outsourcing and Contingent Labor: CIOs look beyond cost savings towards gaining skills and flexibility

      As IT organizations transform rapidly to a digital model through the use of cloud and Big Data, the practice of outsourcing is shifting, too. The organizations that succeed most with outsourcing are those that figure out how to blend the foundational efforts of running systems and creating platforms for innovative and creative work — that not only keeps costs down but also enables top-line results. 

       

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    12. Inside JP Morgan's Glasgow developer centre

      JP Morgan began in Glasgow 16 years ago and houses the bank's mobile centre of excellence for the development of iOS and Android apps. “There are over 1300 people in Glasgow, of which approximately two-thirds develop software,” says Flaherty. “It is one of 13 strategic hubs for the bank. There are a myriad of projects being done in Glasgow from low-latency trading, execution optimisers for the front office, to European website development.”

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    13. Do third-party vendors have a bullseye on their backs?

      Because there are so many different kinds of third parties, identifying whether they do or don’t have the right infrastructure or security protocols can be a challenge. As so many organizations rely on a variety of different providers, third parties can become the gateways to the network. In order to mitigate the risk of a breach from a third party, enterprises need to design a vetting process and understand the language of the service-level agreemen in order to best evaluate their contracts.

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    14. Deciding between active and passive management of outsourcing services

      There are effectively two models for managing outsourcing relationships, whether it’s for IT and infrastructure services or for BPO. The services industry has been pushing a managed services environment as the best practice. But in reality, this is not the best practice for all types of outsourcing. In a fast-changing world where technology is closely aligned with business needs drives towards an actively managed vehicle over a managed services / passively managed vehicle.

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    15. From IT vendor management to strategic partnerships

      To IT buyers, strategic partners are vendors that have gone beyond effective delivery of systems and services to become consistently transparent, responsive and trusted collaborators in creating value for the enterprise. Vendors that do not meet this mark face commoditization and, ultimately, become an afterthought at renewal time — while competing primarily on price in a race to the bottom.According to the 2016 Strategic Partner Index Survey (produced by the CIO Executive Council and IDC), IT buyers and vendors need to forge relationships of trust and collaboration.

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    16. Outsourcing the slow speed with two-speed IT

      Companies struggle to maintain proper support of their complex internal applications needed to run the business while embarking on a digital transformation at the same time, because the skills required to maintain stability of legacy apps are different than those needed to deliver new and rapidly changing customer-facing technical solutions. IT departments are forced to reinvent themselves by adopting a two-speed IT architecture where, some strategically use outsourcing to help implement one or the other and sometimes both speeds.

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    17. 7 traits to look for in a vendor

      Today, the role of a solutions partner in the enterprise is essential, becoming more of a business colleague, helping with strategic thinking and operational dealings of a company. Aside from the need to develop long-range technology strategies and maintain daily operations, the IT leader should develop “sourcing strategies” to meet expectations of business efficiency with financial effectiveness; that competency necessitates a closer relationship with suppliers.

       

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    18. How to detect if you’re in a relationship with the wrong software outsourcing company

      Is your software outsourcing relationship on autopilot or even worse, in danger of crashing? It might be if you have outsourced for an extended period of time with the same service provider.  Often larger companies suffer from poor software outsourcing results, which stem from a rushed vendor selection. The choice is based solely on price without careful consideration of engineering excellence, cultural fit or the location of the outsourcing company. Metrics and other aspects of the relationship presented here can be used to review the performance with your outsourced software development partner several times per year. 

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    19. The outsourcing industry has a new set of usual (and small) suspects

      Small providers  like Tech Mahindra, Syntel, L&T Infotech, NTT Data, Softtek, Mindtree, Globant and many others are not only competing vigorously for outsourcing business in the Global 2000, they are winning it!  Why are big companies working with small providers? What is driving this phenomenon, and why now?  This article answers these questions with some old reasons (with new twists) and some altogether new reasons

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