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Report
and Surveys....
Credit
rating company, Crisil Research and Information Services Ltd (CRISIL) has
predicted that India’s GDP is expected to
grow 7.3% in the current financial year ending March. The report adds that the threat
from high crude oil prices has not been able to dampen the growth
momentum. `We expect the
growth to moderate a bit but remain strong at 7.3% for full-year 2007 (Apr
2006-Mar 2007), ` CRISIL`S Chief Economist Subir Gokarn said in the
report.
The
Indian economy has grown at an average rate of more than 8% in the last
three financial years, including 8.4% in 2005-06.
The Reserve Bank of India expects the economy to
grow at 7.5-8% in the current financial year. India’s basket for crude oil
had touched a all-time high of 75.45 USD a barrel
on Aug 8. Inflation for
2006-07 is likely to average in the range of 5.0-5.5%, the report
said.
In
a separate study, conducted by CRISIL said, Indian law firms can earn up
to $4.7 billion by 2011 by tapping into the massive $25 billion United
States legal off-shoring business. The Indian Legal Process
Outsourcing industry can target two big segments of the
US legal sector, the mid-sized
private law firms, and US corporations, Crisil said. The combined revenues from the
private law firms and corporations could go up to around $4.7 billion by
2011-12, it said, while citing a NASSCOM estimate that put the legal
off-shoring content of the Indian BPO industry at $60-80 million at
present.
Crisil
Research suggested that Indian firms must tap US mid-sized or large law
firms in the first phase and corporates in the second stage. There could be a substantial
increase in Indian LPOs targeting US corporations as the industry matures,
the report said. If Indian
LPOs capture this segment, their revenues could range from $1.5-2.0
billion, it added. However,
law firms in India would need to add 33,000
lawyers to achieve the revenue, it said, adding
that as per NASSCOM estimates the industry has 50-60 firms that employ 700
lawyers.
'Availability
of a large number of law graduates in India and significant cost differential in
manpower and infrastructure between the US and India will help the Indian IT industry
capture a share of this large addressable market in the US,' the report said. Some LPOs in India include international law
firms like Lexadigm, Intellevate and New Galaxy and in-house legal
departments of companies like GE, Cisco, Oracle, Dupont, and Citibank, the
report said.
Indian
LPOs can compete directly with private law firms in the
US to garner a share in
corporate legal services spend as they have a cost advantage. However, Crisil said Indian LPOs
would require huge marketing investments to scale up operations in the
US.
To
compete with US firms, Indian LPOs would have to provide a value chain of
services ranging from support level to senior associate level
activities. Crisil pointed
toward negative factors, which may act as barriers to growth despite huge
potential. These bottlenecks include concerns
over data security and service quality and shortage of trained manpower in
legal writing. |
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UK
FSA signs IS outsourcing contact with three service
providers
UK
Financial Services Authority (FSA), which regulates the financial services
industry, has signed a four-year agreement with Capgemini, Tata
Consultancy Services (TCS), and Xansa to transform its Information Systems
Division's capability.
National
Australia Bank to outsource 81 jobs to India by
April
National
Australia Bank (NAB) is expected to offshore to Accenture's delivery centre
in Bangalore. The roles - to be outsourced to
Accenture's Delivery Centre in Bangalore - involve validating and
converting data into reports, data entry and procurement
administration. As part of a
new pilot outsourcing program, the bank may outsource about 25 jobs from
its IT division in 2007.
Dell
to double R&D team in Bangalore
Dell's
Bangalore R&D centre is the largest centre for the company outside its
main facility in Austin, Texas,
USA and is
a centre of excellence for Dell’s enterprise solutions and products. Engineers here work on software
and hardware testing, cluster computing, high availability solutions and
system management software.
The company has so far filed 145 information disclosures including
software patents.
Dr
Vivek Mansingh, country manager and
director, Dell India R&D centre, said that the company, which has 300
engineers at its centre, would double its team by the end of the
year.
United
Utilities awards Integration contract to TCS
United
Utilities has awarded a GBP
12 million AX4 systems integration framework deal to TCS. The company will develop a
standard design and implementation framework for systems integration,
covering documentation and control techniques for United
Utilities.
Delta Technology
Outsources Its IT Infrastructure Services To
IBM
Delta
Technology, Delta Air Lines’ wholly owned subsidiary, has signed a
seven-year, Information Technology (IT) infrastructure services agreement
with IBM to obtain support
for its ongoing IT needs and for Delta’s operations restructuring which
will take place in the first half of 2007.
Tennessee
Anesthesia Group Outsources Financial Services, Revenue Cycle Management
Services to Per-Se Technologies
Per-Se
Technologies has won a contract to provide financial and accounts
receivable management services to Neurosurgical Anaesthesiologists. The company will provide various
revenue cycle management services, including anaesthesia reimbursement
coding and billing. In
addition, it will provide financial management and strategic planning
services and assist the company with managed care contracting
practices. |
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Analysys
International Says China’s IT Services Market Reached RMB 12.06 Billion in
Q2 2006
According
to a study by Analysys International, the 2Q 2006 IT services market of
China registered a 46.2 percent
year-on-year increase to reach RMB 12.06 billion. Systems integration development
contributed the maximum to the market at 44.2 percent, followed by
offshore software development and IT consultancy, at 22 percent and 15.1
percent, respectively.
IBM, HP, Digital
China, Neusoft, and CS&S are the top 5 vendors in China’s IT services
market. The top 5 vendors
occupied a market share of 5.8%, 5.3%, 2.5%, 2.2%, and 1.9%
respectively. The total
market share of the top 10 IT services vendors accounted for only 22.2% of
the market total in the second quarter in China. China’s IT
services market concentration is still low.
Dubai to
open Outsource Free Zone in December
Dubai is all set to
open its new Outsource Free Zone in December 2006. More than 70 companies, including
ABN Amro and AXA Insurance, have registered to operate at
the new development, adjacent to the Academic City in South
Dubai. It is expected that circa 55 companies are to commence
operations before the year is out.
Belgium's
Arinso Seals 6-Year HR Deal With Bank Of
America
ARINSO
International has won a six-year contract with Bank of America to provide
HR services. ARINSO will
provide HR administration, timekeeping, and payroll processing for the
managed HR and payroll services.
The company will provide the services for about 10,000 associates
of Bank of America in the UK, Ireland, Spain, and Canada.
TietoEnator to
deliver ICT infrastructure hosting services for Stora
Enso
TietoEnator
has won a five-year, EUR 20 million information and communication
technology (ICT) hosting services deal with Stora Enso. TietoEnator will provide the ICT
infrastructure hosting services for Stora Enso globally. As part of the contract, it will
harmonize, standardize, and consolidate the ICT infrastructure of the
Finnish firm.
CSC in $50 million
contract extension with Onesteel
OneSteel
has awarded a five-year, USD 37 million IT outsourcing contract extension
to CSC. CSC will continue to provide various IT
services, including support and enhancement of a part of OneSteel's
production systems. The
production systems are operational at OneSteel's manufacturing facilities
in Newcastle, Sydney, and Whyalla. CSC has been providing IT services to OneSteel
since 2001.
SAIC
to Work With Crop Insurance Provider
SAIC
has won a five-year, US$120M task order with the US Risk Management Agency
(RMA). The RMA is a part of
the US Department of Agriculture, and aims to help producers manage their
business risks through market-based risk management solutions. SAIC will operate and maintain the
hardware and software infrastructure of the RMA.
ACS Signs $26
Million Contract with Ohio Department of Job and Family
Services
ACS has won a US$ 26.2M pharmacy benefits
management contract with the Ohio Department of Job and Family
Services. The company will
provide various pharmacy benefits services, including pharmaceutical
claims processing, prospective drug utilization review, federal rebate
administration, and supplemental rebate negotiation and administration for
the state of Ohio.
LogicaCMG eyes top 10 spot after
buying Nordic rival
LogicaCMG
has placed a public offering worth GB£ 882M for the shareholders and
convertible debenture holders of WM-data in its bid to acquire the
company. Through the acquisition, LogicaCMG
expects to have better chances to win larger contracts and achieve an
annual cost saving of GBP 15
million by 2008. The combined
entity will have a headcount of about 40,000 across 41 countries. WM-data's board unanimously
recommended its shareholders and convertible debenture holders to accept
the offer.
IBM To Buy
Internet Security Systems
IBM has entered into a definitive agreement to
acquire Internet Security Systems (ISS) for USD 1.3 billion in cash. Through the acquisition,
IBM aims to strengthen its
market position in the domain of managed security services, by leveraging
ISS' automated security platform, services, software, and expertise. The company also aims to address
the increasing IT security concerns relating to data theft and
implementation, and management of complex regulatory requirements of
various companies.
Post-acquisition, IBM
will position ISS as a business unit within its infrastructure management
services unit, a part of the IBM Global Technology
Services.
CSA
invests RM80mil in IT outsourcing
Computer
Systems Advisers (M) Bhd (CSA) will invest about RM80mil in its
outsourcing services division this year, a relatively new business which
is continuing to expand, said managing director Chuah Tai
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