Tuesday, November 21, 2006

Some Outsourcing Questions

1. How can I outsource web design to india at the lowest possible cost?

You can hire OWD for a variety of low cost web design plans. We do think in long run it would be more cost effective.

2. Do big companies have their own web designers or do they outsource website design to consulting companies?

There are actuallly 3 main areas of business - Web Design, Web Development and SEO.

Depending on the business requirement, if they also operates their business through the internet (eg. sells products online), then most MNCs or big companies will have an in-house team to oversees their company website cos' business needs to be running 24 hours 7 days. If it is only for informational purposes, most companies, regardless if it is big or small, will prefer to outsource that to a web design firm. Package usually comes with the 3 main areas, prices differ depending on the level of design and technical involved.

3. Our company is planning to outsource website design. Will we "own" the design / have the right to edit?

If you want to own the copyright to all the design concepts produced along with source code, if any, you will need to specifically mention this in the contract so that there is no mis-understanding during the project closure sign-off. Also this may incur extra cost to you as some companies may charge you for owning the copyright to the design concepts etc.


If you have any question, regarding outsourcing to India, please contact us.

Thursday, November 16, 2006

Outsourcing is good for US economy

Favouring large-scale outsourcing of software services and R&D works to countries such as India, Steve Ballmer, chief executive officer of Microsoft said the US stands to benefit out of this.

"We will have to increasingly bank on India for scaling up our operations to rise on the next wave of innovation. So, outsourcing is here to stay. I have always stated that the so-called outsourcing is good for the US economy," he said while delivering the Fifth Madhav Rao Scindia Memorial lecture on Wednesday.

"With the US government making it more difficult for people to come into the US from outside, it puts pressure on companies like ours to relatively grow our talent pool in India even faster. About 18 per cent of our engineers in Seattle are Indians," he said. Ballmer, however, felt the attitude (against outsourcing) has improved over the last year.

Based on a Global Delivery Centre model, the $23-billion Indian software services industry thrives on the offshore business. But this has led to a backlash in many countries, including the US, as a result of local job loss. Ballmer also stressed on Indian engineering talent to redefine the software industry.

"Thirty per cent of all computer science graduates in the world are passing out of Indian universities. That puts a special responsibility on this country. The world is counting on the talent of this country to lead the next wave of innovation," he said, adding harnessing that talent, required companies to work with a big bold goal.

The Redmond-based software giant also wants to ramp up its operations in India but said newly graduated IT engineers from Indian universities need more practical training.

Ballmer said to ensure IT engineers are employable upon graduation 'requires a little bit of training' they don't receive while in school. Between 25 per cent and 30 per cent of engineers graduate from colleges and universities in India.

Microsoft, Ballmer said, is working to boost engineer graduates' real-life experience through its training program at its New Delhi facility. The company said it hopes hands-on experience will help increase the number of readily employable and trained engineers worldwide.

Microsoft`s research and development facility in India is the company's second largest R&D plant after its Redmond R&D centre. In 2006, Microsoft announced plans to invest $1.7 billion and increase the headcount to more than 7,000 in its Indian operations over the next several years.

President A P J Abdul Kalam (R) talks to N R Narayana Murthy, chairman Infosys Technologies as chief executive officer of Microsoft, Steve Ballmer, looks on during a Microsoft conference in New Delhi. Microsoft hosted a conference titled 'Bridging the two Indias' which was inaugurated by Kalam.

Thanks to: Raveendran/AFP/Getty Images
Inputs from : PTI

Thursday, November 02, 2006

IBM, EDS Win Vodafone Outsourcing Deal

IBM, EDS Win 7-Year Outsourcing Contract From Vodafone

Wireless phone service provider Vodafone Group PLC said Thursday it reached a seven-year outsourcing agreement with Electronic Data Systems Corp. and International Business Machines Corp.

Under the terms of the agreement, EDS will manage application development and maintenance services for Vodafone in Germany, the U.K., Hungary and the Netherlands, while IBM will provide outsourcing services in Spain, the Czech Republic, Australia, New Zealand, Portugal, Ireland, and Greece. Subject to board approval, Italy may be served by IBM.

Vodafone retains the right to pull out of the contracts before they expire.

Vodafone estimates that it spent roughly 560 million British pounds ($1.07 billion) on application development and maintenance services in its last financial year.

Although the financial terms of the contracts weren't disclosed, Charles King, principal analyst at Pund-IT Research in Hayward, Calif., estimates the deal could be worth as much as $2 billion for IBM, and perhaps a little less for EDS.

Shares of IBM were down 44 cents at $91.36 in afternoon trading on the New York Stock Exchange, while EDS shares were up 3 cents at $25.68. Vodafone shares were up 5 cents at $25.83.


Thanks to: www.ap.org