iGate on Thursday inaugurated the fourth phase of its global delivery facility at its campus in Whitefield, Bangalore. The new facility, set up at a cost of Rs 65 crore, provides 115,000 sq ft of additional workspace and can seat 1,050 people.
Phaneesh Murthy, CEO of the outsourcing solutions company, said iGate plans to hire about 1,500 people in 2010. The $220-million company currently has around 3,500 employees in Bangalore.
Murthy said he expected IT budgets to be up 2-4% in 2010.
“Discretionary project spends are starting to happen. The pricing environment is largely stable,” he said.
iGate’s campus has in the past sought to differentiate itself through the adoption of a host of environment friendly measures. The latest phase makes further advances on this front. It has LED lighting throughout and the lighting is solar powered. There’s an ozone-friendly air conditioning system, organic waste converter and a wastewater recycling system.
“We also made special efforts to procure green IT equipment,” the company said. The company has taken on a carbon footprint estimation study to determine the green house gas (GHG) inventory across all its global delivery facilities in India, Australia and Mexico.
Agencies
Showing posts with label IT Budgets. Show all posts
Showing posts with label IT Budgets. Show all posts
Friday, October 30, 2009
Sunday, February 8, 2009
Is Infosys getting tougher on poor performers?
The economic slowdown has made Infosys Technologies, India’s second-largest IT services firm by revenues, take a harder look at employee performance. The firm has put 2,200 employees under the scanner for non-performance this year — more than double the number last year, a senior executive said.
Last year, about 1.5% of IT services staff or about 1,000 employees figured among the bottom performers. This year, the percentage has shot up to about 3.5%. About 600 of such non-performers have left the company already this year.
Such employees are put under a performance improvement plan, provided mentoring and their performance is reviewed for a quarter. “When the times were good, people got away with things. Our tolerance of non-performance has come down now,” Infosys director (HR, education & research and administration) TV Mohandas Pai said.
Meanwhile, the IT services major has made about 20,000 job offers to college students across the country for 2009-10. The company will honour the commitment made, Pai said.
However, there could be lower or even no wage increases at Infosys next fiscal. “Wage increase next year will be subdued, if there will be an increase,” the Infosys director said.
The IT services firm said it expects IT budgets of clients to be flat or may even reduce 5-10% next fiscal. “Clients are in pain and they want us to share the pain. Their ability to spend is lower,” he said.
Economictimes
Last year, about 1.5% of IT services staff or about 1,000 employees figured among the bottom performers. This year, the percentage has shot up to about 3.5%. About 600 of such non-performers have left the company already this year.
Such employees are put under a performance improvement plan, provided mentoring and their performance is reviewed for a quarter. “When the times were good, people got away with things. Our tolerance of non-performance has come down now,” Infosys director (HR, education & research and administration) TV Mohandas Pai said.
Meanwhile, the IT services major has made about 20,000 job offers to college students across the country for 2009-10. The company will honour the commitment made, Pai said.
However, there could be lower or even no wage increases at Infosys next fiscal. “Wage increase next year will be subdued, if there will be an increase,” the Infosys director said.
The IT services firm said it expects IT budgets of clients to be flat or may even reduce 5-10% next fiscal. “Clients are in pain and they want us to share the pain. Their ability to spend is lower,” he said.
Economictimes
Thursday, December 4, 2008
40pc of large businesses cut their IT budgets
More than 40 percent of large businesses have cut their IT budgets this year due to the global economic slowdown, according to a new survey by Forrester Research. The Forrester Business Data Services report surveyed nearly 950 senior IT managers across North America and Europe regarding their IT services spending and overall services strategies and priorities.
The economy’s affect on IT spending is evident in some specific data points contained in the report: Forty-three percent of firms have already cut their overall IT budgets in 2008 in reaction to the slow down in the global economy, while 24 percent of firms have put discretionary spending on hold. Twenty-eight percent of respondents said the economy has had no impact on their IT budgets.
Asked how the economy will affect IT services spending, 70 percent of respondents said they will likely negotiate lower rates with suppliers, and 16 percent said they have already cut their IT services spending.
IT departments in the financial services industry were hit hardest — 49 percent of IT shops in the financial services sector have cut their budgets. At the other end of the spectrum is the media, entertainment, and leisure industry, where only 39 percent of respondents said they have had to reduce spending.
IT departments in North America have been affected by the economy more than their European counterparts: 49 percent of North American firms have cut their IT budgets compared with 31 percent of respondents in Europe; although it should be noted that the Forrester survey was fielded in Q2 2008 prior to the deteriorating economic conditions in Europe.
“This is not an across-the-board spending slowdown; the impact of the economy on IT budgets varies widely by industry and geography,” said Forrester Research vice president and principal analyst John C. McCarthy, who is in India at present for a workshop. “With regard to the services sector, the slowdown has firms renegotiating rates, being more selective in choosing vendors, and examining spending plans more thoroughly, but they are still expecting to pay more for services. The demand for enterprise IT services has not dropped significantly.”
Regarding the state of spending on enterprise IT services, the report illustrates a number of trends: The demand for services holds steady. Forty-five percent of firms plan to increase their use of applications outsourcing, while 43 percent of firms are increasing their use of infrastructure outsourcing. Forty-three percent of respondents said they are moving more work offshore.
Infrastructure outsourcing expects to grow. Convergent telecommunications and network management is a hot area of growth as 20 percent of firms will outsource this service in 2008.
Few firms have fully tapped into offshore resources. Only 9 percent of firms use offshore resources wherever and whenever possible. A growing number of firms are interested in exploring more offshore work, with 14 percent ramping up use, 19 percent piloting, and 22 percent not using offshore but actively tracking developments. Of those firms not sending work offshore, a majority cite the questionable quality of the work done.
Satisfaction with outsourcing remains low. While overall firms are satisfied with their decision to use a third party, 52 percent say their biggest challenge with existing IT services and outsourcing relationships is that cost savings are lower than expected. Other noteworthy challenges include inconsistent or poor service quality (40 percent) and the inability of the vendor or contract structure to respond rapidly to changing business needs (35 percent).
The economy’s affect on IT spending is evident in some specific data points contained in the report: Forty-three percent of firms have already cut their overall IT budgets in 2008 in reaction to the slow down in the global economy, while 24 percent of firms have put discretionary spending on hold. Twenty-eight percent of respondents said the economy has had no impact on their IT budgets.
Asked how the economy will affect IT services spending, 70 percent of respondents said they will likely negotiate lower rates with suppliers, and 16 percent said they have already cut their IT services spending.
IT departments in the financial services industry were hit hardest — 49 percent of IT shops in the financial services sector have cut their budgets. At the other end of the spectrum is the media, entertainment, and leisure industry, where only 39 percent of respondents said they have had to reduce spending.
IT departments in North America have been affected by the economy more than their European counterparts: 49 percent of North American firms have cut their IT budgets compared with 31 percent of respondents in Europe; although it should be noted that the Forrester survey was fielded in Q2 2008 prior to the deteriorating economic conditions in Europe.
“This is not an across-the-board spending slowdown; the impact of the economy on IT budgets varies widely by industry and geography,” said Forrester Research vice president and principal analyst John C. McCarthy, who is in India at present for a workshop. “With regard to the services sector, the slowdown has firms renegotiating rates, being more selective in choosing vendors, and examining spending plans more thoroughly, but they are still expecting to pay more for services. The demand for enterprise IT services has not dropped significantly.”
Regarding the state of spending on enterprise IT services, the report illustrates a number of trends: The demand for services holds steady. Forty-five percent of firms plan to increase their use of applications outsourcing, while 43 percent of firms are increasing their use of infrastructure outsourcing. Forty-three percent of respondents said they are moving more work offshore.
Infrastructure outsourcing expects to grow. Convergent telecommunications and network management is a hot area of growth as 20 percent of firms will outsource this service in 2008.
Few firms have fully tapped into offshore resources. Only 9 percent of firms use offshore resources wherever and whenever possible. A growing number of firms are interested in exploring more offshore work, with 14 percent ramping up use, 19 percent piloting, and 22 percent not using offshore but actively tracking developments. Of those firms not sending work offshore, a majority cite the questionable quality of the work done.
Satisfaction with outsourcing remains low. While overall firms are satisfied with their decision to use a third party, 52 percent say their biggest challenge with existing IT services and outsourcing relationships is that cost savings are lower than expected. Other noteworthy challenges include inconsistent or poor service quality (40 percent) and the inability of the vendor or contract structure to respond rapidly to changing business needs (35 percent).
Thursday, October 16, 2008
Experience drastic cut in IT budgets
This is mainly due to drop in system innovations, reducing costs and increase in speed of doing business, says Dell
As most companies allocate about 80 percent of their IT budget for infrastructure maintenance and 20 percent for new business innovations, Dell officials feel this figure can be cut down from 80 percent to about 50 percent in the next six-seven years.
Talking to CIOL Bureau, Sameer Garde, General Manager – Services, Dell India said: "The reduction will be mainly due to the 50 percent drop in system innovations and also due to the reducing costs and increase in the speed of doing business."
Recently, India has been witnessing the introduction of two services, Dell's ProSupport for 'IT' and ProSupport for the 'End Users', aimed at improving local support for enterprise customers by improving turnaround times and offering the ability to fast-track requests.
Now Dell ProSupport assures its customers who add two to three servers every month that they should virtualize their hardware and data centers. "IT infrastructure is where it all starts, i.e., from data centers, servers to desktops. We have virtualized several customer's data centers from 200 to 15 servers thus reducing their costs," he adds.
Dell takes up turnkey projects on end-to-end solution that takes about six-eight weeks to complete. "While the assessment of the data centers takes two-six weeks the design implementation takes six-eight weeks," Garde says.
Reports indicate that Dell has invested about $6 billion in services alone during FY07, and this is likely to shoot up further with more offering in the service space. Having launched its service operations in India, Dell's ProSupport, a globally consistent, customer-driven support offering, spans Dell's commercial product and solutions portfolios.
Dell has distilled more than 10 service offerings down to two customizable packages with flexible options for service level and proactive management.
"ProSupport goes beyond reactive problem resolution and hardware support to include proactive management," says Garde. With the right options, customers can reduce technical incidents by as much as 37 percent and critical downtime by as much as 48 percent, Garde adds.
The company is targeting emerging enterprises with 200 to 1,500 employees, but don't have a help desk. "We are focusing on banking and financial institutions, BPO and also government institutions to offer our service portfolio," he says.
Dell Prosupport wing already has about 650 engineers in India and about 150 call center executives in India. The company offers same day support in 22 cities besides other services in over 300 towns across the country.
As most companies allocate about 80 percent of their IT budget for infrastructure maintenance and 20 percent for new business innovations, Dell officials feel this figure can be cut down from 80 percent to about 50 percent in the next six-seven years.
Talking to CIOL Bureau, Sameer Garde, General Manager – Services, Dell India said: "The reduction will be mainly due to the 50 percent drop in system innovations and also due to the reducing costs and increase in the speed of doing business."
Recently, India has been witnessing the introduction of two services, Dell's ProSupport for 'IT' and ProSupport for the 'End Users', aimed at improving local support for enterprise customers by improving turnaround times and offering the ability to fast-track requests.
Now Dell ProSupport assures its customers who add two to three servers every month that they should virtualize their hardware and data centers. "IT infrastructure is where it all starts, i.e., from data centers, servers to desktops. We have virtualized several customer's data centers from 200 to 15 servers thus reducing their costs," he adds.
Dell takes up turnkey projects on end-to-end solution that takes about six-eight weeks to complete. "While the assessment of the data centers takes two-six weeks the design implementation takes six-eight weeks," Garde says.
Reports indicate that Dell has invested about $6 billion in services alone during FY07, and this is likely to shoot up further with more offering in the service space. Having launched its service operations in India, Dell's ProSupport, a globally consistent, customer-driven support offering, spans Dell's commercial product and solutions portfolios.
Dell has distilled more than 10 service offerings down to two customizable packages with flexible options for service level and proactive management.
"ProSupport goes beyond reactive problem resolution and hardware support to include proactive management," says Garde. With the right options, customers can reduce technical incidents by as much as 37 percent and critical downtime by as much as 48 percent, Garde adds.
The company is targeting emerging enterprises with 200 to 1,500 employees, but don't have a help desk. "We are focusing on banking and financial institutions, BPO and also government institutions to offer our service portfolio," he says.
Dell Prosupport wing already has about 650 engineers in India and about 150 call center executives in India. The company offers same day support in 22 cities besides other services in over 300 towns across the country.
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