Saturday, March 7, 2009

Obama names Indian American Kundra as infotech czar

US President Barack Obama Thursday named Vivek Kundra, a 34-year-old Indian American, as the federal chief information officer (CIO) at the White House to advance the administration's technology agenda.

"Vivek Kundra will bring a depth of experience in the technology arena and a commitment to lowering the cost of government operations to this position," Obama said.

"I have directed him to work to ensure that we are using the spirit of American innovation and the power of technology to improve performance and lower the cost of government operations," he said.

"As Chief Information Officer (CIO), he will play a key role in making sure our government is running in the most secure, open, and efficient way possible."

A White House announcement noted the CIO directs the policy and strategic planning of federal information technology investments and is responsible for oversight of federal technology spending.

The Federal CIO establishes and oversees enterprise architecture to ensure system interoperability and information sharing and ensure information security and privacy across the federal government.

The CIO will also work closely with the chief technology officer to advance the president's technology agenda, it said.

New Delhi-born Kundra formerly served in Washington DC Mayor Adrian Fenty's cabinet as the chief technology officer (CTO) for the capital city, responsible for technology operations and strategy for 86 agencies.

He has been recognised among the top 25 CTOs in the US and as the 2008 IT Executive of the Year for his pioneering work to drive transparency, engage citizens and lower the cost of government operations.

Kundra is also recognised for his leadership in public safety communications, cyber security and IT portfolio management.

Before Kundra came to the capital, Virginia Governor Timothy M. Kaine appointed him assistant secretary of commerce and technology, the first dual cabinet role in the state's history.

Kundra's diverse record also includes technology and public policy experience in private industry and academia. He is a graduate of the University of Virginia's Sorensen Institute for Political Leadership and holds an MS in information technology from the University of Maryland.

Agencies

Have small IT firms outwit the big IT giants?

It is not a secret that are at the lower rung of the competition hierarchy in the European technology market. Indian firms still have a long way to go before they get lucrative contracts from that market. But, they seem to be gradually creeping into European market, with smaller firms taking a clear competitive edge than IT biggies like Infosys and TCS, reports CXO today.

"I find that the big Indian companies are too pragmatic. Not able to take my requests simply...CMM Level 5 etc is of no use to me... all I want is my requirement to be fulfilled," Paul Schewefer, Senior Vice President and Chief Information Officer, Continental AG.

It seems that a market like Europe demands a highly aggressive planning and quick implementation of strategies if one wants to make the cut. For small companies with lesser number of people, it is comparatively easier to implement changes without having to go through various processes, making it fast. And many small companies in this market have built capabilities in niche areas unlike some giants.

Moreover, Hannover, Germany, based Continental Group's technology expenditure for this year could be up to $500 million. And a lot of that could go to the smaller companies. "Partnering with smaller Indian firms helps them to invest in manpower and technologies, and that helps us as well," said Schewefer.

For the smaller firms, they are looking at the European market via the partnership model. For instance, Aakit Technologies has just sold 26 percent to Germany-based Aequitas Group. "The deal deepens our access to Europe, and also gives our German partner India capabilities," said Tayeb Barodawla, MD, Aakit Technologies.

Earlier, there were reports that Indian IT firms needed long-term deals if they are to make any gain in Europe. It is true that many Indian IT majors are still finding a major share of their revenue from European market through project services, while most of the MNCs drawing revenue from long-term outsourcing contracts.

IT analysts are still of the opinion that top Indian IT companies like TCS, Infosys and Wipro will have to shift focus on long-term outsourcing in order to make significant gains in the European market. These three companies derive around 25 percent of their revenue from European market.

Agencies

Motorola ex-CFO sues for firing him

Motorola Inc's former chief financial officer (CFO) has sued the company for firing him, claiming that it was a "retaliatory discharge."

Paul Liska sued the maker of telecommunications equipment in county court in Chicago on February 20, a day after he was fired. The suit is under seal, and no further details were available. Liska did not return calls for comment, and the company did not return an email.

A "retaliatory discharge" usually refers to an employee being fired for doing something that's in the public interest, like being a whistleblower.

Schaumburg, Ill.-based Motorola said in early February that Liska was leaving after less than a year of service. It didn't specify a cause, but Chief Executive Greg Brown implied on a conference call that it was connected to the delayed spin-off of the company's cellphone unit. Liska, a former partner at private equity companies, was seen as a restructuring expert.

However, Motorola revealed in a filing this week that it had terminated Liska "for cause," depriving him of his signing bonus, stock options and severance payment. It didn't specify the cause.

The Wall Street Journal quoted Liska as saying he had been told he been terminated on January 29 without cause. There was no explanation for the discrepancy in dates on when Liska was terminated.

Agencies

Thursday, March 5, 2009

Is US new threat to India in BPO sector?

A downturn in worldwide economy, Satyam's fraud case and the terrorist attacks in Mumbai and supply chain and shipping cost issues in China are causing US technology companies to pull back from the two traditional outsourcing locations.

Citing these three global factors, an annual survey by BDO Seidman, LLP, one of America's leading accounting and consulting organizations, suggested several technology firms would choose US as future outsourcing location over India and China.

"While last year may have produced an outsourcing bubble, 2009 will see companies retrench to survive in the face of reduced demand. The US has become a far more viable option for them," said Douglas Sirotta, a Partner in BDO Seidman's Technology Practice.

"This year we are seeing three global factors that are causing US technology companies to pull back from traditional outsourcing locations, led by the recent boom and bust of the worldwide economy.

"Satyam's fraud case and the terrorist attacks in Mumbai are causing a lot of companies to reconsider operating in India. And supply chain and shipping cost issues in China are negatively impacting the attractiveness of outsourcing technology operations to the Far East."

Currently nearly two-thirds (62 per cent) of chief financial officers (CFOs) at leading US technology businesses say that their companies outsource services or manufacturing, it said.

However, the survey results point to a likely decline in international outsourcing in 2009: 22 percent say the United States is the outsourcing destination they are most likely to consider in 2009, compared to 16 per cent for China and 13 per cent for India. Another 19 per cent report no interest in additional outsourcing.

The survey conducted in January 2009 examines the opinions of 100 chief financial officers at leading technology companies located throughout the US. Other major findings:

Less than half (42 per cent) of the CFOs indicate that they have operations outside the US, compared to nearly double that amount (79 per cent) last year.

Nearly a third (29 per cent) of respondents say their primary concern regarding international growth is an uncertain business or political climate.

About a quarter (26 per cent), cite international business and tax regulations, with 21 per cent citing currency risk, 14 per cent intellectual property risk and exploitation, and 10 per cent training of international employees as their primary concern.

Currently the most common non-US locations for outsourcing are India (50 per cent), Southeast Asia, including the Philippines (31 per cent, down from 50 per cent in 2008), China (19 per cent, down from 46 per cent in 2008), and Western Europe (19 per cent).

For future outsourcing, the CFOs most frequently cite the United States (22 per cent), followed by China (16 per cent), India (13 per cent), Southeast Asia, including the Philippines (7 per cent), Latin America (7 per cent), Western Europe (6 per cent), Canada (5 per cent) and Eastern Europe (3 per cent).

Of those outsourcing, the most common functions being off-shored currently are: manufacturing (54 percent), IT services and programming (46 percent), research and development (35 percent), distribution (35 percent) and call centres (35 percent).

Agencies

Will Microsoft layoff H-1B visa staff too?

Observing that the H-1B work visa programme helps hire the best available talent of the world, American software giant Microsoft has said H-1B visa holders has contributed significantly to its success. However, the company, which had recently announced to lay off some 5,000 jobs in the next 18 months, would be handing over pink slips to H-1B visa holders too.

Microsoft’s observation on H-1B visas and their significant contribution to its success was made by the company in a letter to senator Charles Grassley.

H1-B employees have always accounted for less than 15% of Microsoft’s US workforce, the level that is used in immigration law to determine whether a company is “H-1B dependent,” the letter said. The senator in a letter dated January 22 had sought information from Microsoft particularly about how its plan to fire 5,000 people would affect US workers and non-US citizens working for Microsoft. The Microsoft letter dated March 3 written by Bradford L Smith, its general counsel, has been posted on its website http://microsoftontheissues.com.

Agencies

Tuesday, March 3, 2009

Has Accenture sacked half Manila workforce?

US-based outsourcing firm Accenture is laying off almost half its workforce in the Philippine capital due to the effects of the global financial crisis, the Labour Department said.

Accenture Philippines has filed a notice of retrenchment for about 500 workers at its facilities in Manila, said Labour Undersecretary Rosalinda Baldoz.

Accenture, which engages in business process outsourcing, including call centres, had about a thousand workers in Manila and in March 2008 it opened an office in the central city of Cebu which employs about 500 people.

Call centres and other outsourced business processes have become a major industry in the Philippines. Industry leaders had previously predicted that the sector would not be affected by the global financial turmoil as companies in developed countries would outsource more of their functions abroad to save money during the crisis.

Agencies

Web Abuzz with news of attack on Sri Lankan Cricket Team

Within hours of attack on the Sri Lankan cricket team near the Gaddafi cricket stadium in Lahore, Pakistan, the web was loaded with videos, links and discussions

A few gunmen attacked the Sri Lankan cricket team near the Gaddafi cricket stadium in Lahore, Pakistan. This news broke out a few hours ago and got the social media enthusiasts active over the web along with the news media.

All media was affected -- starting with news channels like IBN Live streaming a live video about the news to the micro-blogging service Twitter which was the one heavily impacted with 140 character discussions.

This attack on Sri Lankan cricket team has become one of the trending topics on Twitter. Here are a few links which lead to Sri Lankan Cricket team related news and discussions on Twitter:

keyword: Sri Lankan
keyword: #srilanka

Few of the reactions on the micro-blogging site Twitter that were noted:

SuaveRepublique: Suave is wishing that the Sri Lankan Cricketers are OK, and that cricket is never played there again.

tajdaroc: HOW is it that the attckers were able to escape having been in plain sight? The access logistics are as simple as can be #SriLanka #Pakistan

CXOtoday

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