IBM overhauls offshoring model to tap Europe, Japan    
June 13, 2008
Source:  ET Bureau

BANGALORE: Technology giant IBM is transforming the way in which it delivers IT services globally, replacing a location-specific model with virtual integration of all its centres outside the United States. 

With over 63% of its revenues coming from outside the US, IBM is constantly expanding and upgrading its delivery locations to meet the diverse requirements of the marketplace. “Offshoring of IT services has moved beyond markets like the US and the UK and moving into places like Europe and Japan,” Amitabh Ray, VP (global delivery - transformation) at IBM India said. 

IBM has set in motion a process to integrate eight delivery locations with the ability to provide services across any part of the world. As a first step, this has resulted in the establishment of a common methodology and process across all its centres so that there is uniformity in the level of service. 

According to Mr Ray, the virtual integration will allow the company to deliver IT services from the best possible location without incurring any additional costs. Citing examples, he said the IBM centre in Romania acts a offshore centre for the German market while Vietnam is able to serve the French market. 

However, India remains the largest delivery centre for IBM globally and contributing to the bulk of its projects. 
The delivery of IT services from locations outside India also addresses sensitivities in Europe and Japan. Some countries in Europe have very strong data protection laws which prevent them offshoring beyond the region. 

IBM’s China centre has a sizeable Japanese speaking talent pool to serve the Land of the Rising Sun. The expansion in the last 16 months has seen IBM’s global delivery headcount worldwide rise by 43.5% with the opening of centres in China, Vietnam, Philippines and Egypt, besides two more locations in India. 

Behind the integration is the common thread of technology. Mr Ray said it has implemented a language translation technology tool at some of its centres to enable delivery of services to non-English speaking locations in the local language. 

At IBM’s Noida centre in India, employees are able to translate Spanish on a real-time basis. However, this will not mean that India loses any of its preeminence under the new model. Mr Ray said the country will remain its largest delivery location and many professionals from India have been helping set up centres overseas. Currently, 17% of IBM’s non-US headcount is in locations outside India.

iGate to create jobs in Australia     
June 13 , 2008 
SOURCE: IANS

SYDNEY: India based global integrated technology and operations company iGate Global Solutions Limited's new US$ 2 million information and technology facility began its operations on Friday in the picturesque and affluent Australian gold mining city of Ballarat. 

Ballarat, only 70 minutes drive from Melbourne, has not only been seeking Indian students and migrants, but also investment from Indian companies. 

The new facility, which will create 40 new jobs for local professionals with job numbers expected to grow over the next three years, will focus on servicing Australian financial services and government clients, including the Residential Tenancies Bond Authority (RTBA), a statutory authority of the Government of Victoria. 

Officially opening the iGate centre in Ballarat's Wendouree area on Friday, Information and Communication Technology Minister Theo Theophanous said, "The decision by iGate Global Solutions to base its national operations centre in Ballarat is a vote of confidence for ICT in the region and testament to Victoria's reputation as Australia's leading state in the industry. Ballarat has become an international investment hub for ICT companies, creating jobs and strengthening the local economy." 

iGate offers a specialised service delivery model known as iTOPS (integrated technology and operations), which combines process outsourcing with the underlying technology infrastructure to offer clients optimised solutions and cost savings. 

"We are seeking to bring a state of the art outsourcing model to the Australian market. We expect this (iTOPS model) will take operational efficiencies up quite dramatically while still having the safety net of part of the operations done locally," iGate's Chief Executive Officer Phaneesh Murthy said. 

All banking and mailing processes will remain in Australia. iGate was awarded the RTBA contract after winning an open tender bid from amongst over 15 leading ICT companies. 

"The contract was awarded to iGate based on the right to continue to use the processing system after the expiration of the contract, price, service delivery, and opportunities for future improvement throughout the life of contract -- they simply provided us with the better offer," said Minister for Consumer Affairs Tony Robinson. 

"This announcement is a fantastic boost for jobs in Ballarat while continuing to deliver high quality services to landlords and tenants" Robinson added. RTBA undertakes more than 400,000 bond transactions each year.

IBS to set up campus at Kochi Info Park     
June 13, 2008 
SOURCE: BL

IBS Software Services, an IT solutions provider to the global Travel, Transportation and Logistics (TTL), is setting up an own campus at Kochi Info Park at an investment of Rs 150 crore. 

The Kochi Centre, to be fully functional by 2013-14, will be one of the centres of IBS for the development of IT products especially for the globally acquired companies, Mr V.K. Mathews, Chairman and CEO of IBS group, said. 

IBS Kochi development centre, which is presently functioning at a rented building, is also increasing its staff strength of around 2,000 by 2010. Currently, the Kochi centre has staff strength of 400 and the company will add another 1,500 in two years time, he said. 

With more and more acquisitions globally, IBS is targeting to grow a Rs1,000 crore company by March 2010. IBS has posted a compounded annual growth rate of 47.5 per cent in the last 10 years, resulting in 800 fold increase on capital invested in 1997, as against a 35-fold increase in staff strength over the same period, he added. 

The strategic acquisitions has helped the company to become a veritable one-stop shop for new generation solutions that address the complete requirements of all types of airlines and cruise lines. 

With the boom in the aviation industry worldwide, IBS is aiming to become a global leader in IT solutions for travel, transportation and logistics industry. “We are on a very aggressive growth and all our lines of business is doing well,” Mr Mathews said.