Sony outsources IT development to India
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A boost for India's offshore-development industry, move is intended to help Sony's European wing focus on core activities.
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Indian outsourcer Satyam Computer ServicesÂ is setting up another development facility in China, its largest outside India. The new 2,500 seat facility will be located in the Nanjing Software Park, and will be operational in the next year, the company said Thursday.
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As part of its cost-cutting effort, Sony may outsource PS3 chip production.
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(InfoWorld) - Sony Ericsson Mobile Communications will get its GSM (Global System for Mobile Communications) mobile phones made in India by contract manufacturers, starting with entry-level color phones and mid-level phones with music. Annual production of its phones in the country is to reach 10 million by 2009, Sony Ericsson said on Wednesday. The phones will be made by the local operations of Hon Hai Precision Industry Co., which uses the brand name Foxconn, and Flextronics. These companies already make phones for Sony Ericsson in other locations. About two-thirds of Sony Ericsson's phone production worldwide is met by contract manufacturers, Miles Flint, president of Sony Ericsson told reporters in Chennai. Flextronics will start producing Sony Ericsson phones in the second quarter, with Foxconn beginning manufacturing about two to three months later. Sony Ericsson joins a number of mobile manufacturers,Â including Nokia, that are manufacturing in India or contracting Indian manufacturers, to meet the countryâs booming demand for mobile phones. India's largest telecommunications service provider, state-owned Bharat Sanchar Nigam, insists on local manufacture of equipment it procures. Making the phones in India will help Sony Ericsson reduce costs, and offer handsets at a lower price, the company said. The phones will offer customized features for the Indian market, such as local content and customized keypads. India isÂ adding over 6 million mobile phone subscribersÂ each month. The number of wireless subscribers grew 97 percent from 75.94 million at the end of December 2005 to 149.5 million subscribers at the end of last December, according to the Telecom Regulatory Authority of India in Delhi.
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BANGALORE:Microsoft chief executive Steve Ballmer said he was excited about the work going on in India on the technology front. &quot;I think Indian IT majors like Wipro and Infosys are doing an incredible job.
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The Nielsen Company, a provider of consumer and media information services, is outsourcing a portion of its IT and business processes to Tata Consultancy Services&#160;(TCS), an Indian outsourcer based in Mumbai.
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MUMBAI: It has been a long-running drama and it is Japanese electronics giant Sony Corp that has come out the winner at the end of it.
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(InfoWorld) - India's largest outsourcer Tata Consultancy Services Ltd. has landed a US$140 million contract from India's large state-owned telecommunications services provider, Bharat Sanchar Nigam Ltd., for the deployment of next-generation networks in the country. The nine-year engagement with BSNL involves TCS setting up complex data networks across BSNL's operations in the north and west of India. The agreement also includes deploying operational support systems and business support systems components such as customer relationship management, billing, mediation, and directory inquiry, among others, TCS said Thursday. After a systems integration phase of two years, TCS will manage the operations for BSNL over the next seven years, said N. Chandrasekaran, TCS's head of global sales and operations. The Indian services market is growing, and even though billing rates on outsourcing contracts are lower than in markets in the U.S. and Europe where TCS operates, the costs are also lower, Chandrasekaran said. The contract with a large services provider like BSNL will help the company win systems integration and managed services contracts from telecommunications service providers in other markets, he added. India emerged in the first half of this year as the largest market for outsourcing services in the Asia-Pacific region, according to sourcing consultancy firm, Technology Partners International Inc. in Houston. TPI tracked contracts valued above $25 million for the survey. A number of multinational services companies like IBM Corp. and Hewlett-Packard Co. have focused on the Indian market, and won some large contracts. In the quarter ended June 30, TCS's revenue from the domestic market was only about 9 percent of total revenue but this share is expected to grow, Chandrasekaran said. The U.S. is the largest market for TCS accounting for over 51 percent of revenue, followed by the U.K. at about 21 percent. Indian outsourcers have typically focused on more lucrative markets in the U.S. and Europe instead of India, research firm Gartner Inc. said earlier this year. The growing Indian market and the appreciation of the Indian rupee against the U.S. dollar are now making domestic contracts more attractive to Indian companies.
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Infosys Technologies profits from global outsourcing trends.
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BANGALORE, INDIA -- As hiring picks up in Bangalore, India, the city's software professionals are again acquiring the spoiled-brat image they had in the late 1990s, when the dot-com boom increased staff requirements at Indian outsourcing companies.
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It may now be the turn of Indian companies to offshore outside India their IT services requirements.
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Sony Ericsson Mobile Communications A.B. is setting up a research and development (R&D) unit for mobile phones in Chennai in south India.
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SOFTWARE giant Microsoft has signed multi-million dollar software partnerships with two of Indiaâs leading outsourcing firms. The firmâs chief executive, Steve Ballmer, said it has also stepped up plans
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(InfoWorld) - Up against competition for markets and for hiring staff, Indian software outsourcers are focusing on building reusable software that automates specific business processes. These software components can in turn be used across a number of clients, saving costs, and time. Top Indian outsourcers such as Infosys Technologies Ltd. and HCL Technologies Ltd. for example, have developed a variety of components including an RFID (radio frequency ID) component for supply chain applications, according to Forrester Research Inc. senior analyst Sudin Apte. Currently, outsourcers' business models are largely based on a cost-plus model where they add more staff to a project to get more revenue. "They are trying to break out of this linearity and dependence on low-cost staff alone," Apte said. Midsize outsourcers are also investing in creating reusable components, consisting of business applications or middleware. "If you look at the applications we develop, about 30 to 35 percent are common across various applications, so there is an opportunity to make them reusable," said Bala Variyam, vice president for IT delivery at iGate Global Solutions Ltd., an outsourcing company in Bangalore. The company develops prebuilt components that can be used across a variety of industries, as well as business components for banking and financial services that are quickly configured and deployed for customers, Variyam said. Besides developing components in-house, iGate is also looking at open-source components. "We are looking, for example, at an open-source trading platform that can be used for capital markets and investment banking applications," Variyam said. Among multinational services companies, IBM Corp., for example, set up last year in India a Global Business Solutions Center as the company's global hub for the management and creation of reusable software components. IBM also set up last year development centers in Beijing, China, and Pune, India, that focus on developing industry-specific SOA (service-oriented architecture) services that are reusable across various customers. In the short term, this strategy will require Indian companies to invest in top quality staff to understand the business problem and the technology and develop the software. Most Indian companies like Infosys and HCL that are developing reusable components have large teams that are not immediately billable, so they don't earn direct revenue for their companies, Apte said. In the long term, though, these companies could probably have less demand for new staff as they reuse software across a large number of customers, according to Apte. IGate is already seeing dramatic time savings of up to 30 percent on applications development, though time taken on the design and testing phases does not change, Variyam said. Customers are also demanding components that have already been proven across other deployments, Variyam added.
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(InfoWorld) - Indian outsourcer Wipro has opened a software development facility in Monterrey, Mexico, to offer services to clients in North America and Latin America in the same time zone and geographical proximity. Wipro made the announcement Tuesday when Mexico's President Felipe CalderÃ³n Hinojosa visited its Bangalore campus. He is in India to promote business collaboration, particularly in IT, between the two countries. Mexico's broad language skills and proximity to Canada and the U.S. helped Wipro decide to establish a presence there. Latin America is also a strong emerging market where many of Wipro's clients operate. Wipro's Monterrey facility will employ 100 people. Some of the center's Mexican staff are already training in Bangalore. Infosys Technologies, another Indian outsourcer, announced last month that it isÂ setting up an IT services and BPO (business process outsourcing) facilityÂ in Monterrey. Indian outsourcers like Tata Consultancy Services, of Mumbai, have also invested in services delivery centers in Latin America with an eye to offering near-shore services to clients in North America and to service the Latin American market. Wipro announced last month that it is setting up a software development center in Atlanta and plans to hire staff for the center from local universities. The center, which will have 500 employees by the third year of operation, will help Wipro in hiring highly skilled workers and domain experts who will be critical to Wipro's business growth plans in the U.S., the company said.
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Indian outsourcing companies are hiring workers and opening offices in other developing countries.
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Primavera Systems, a vendor of enterprise project management software, has outsourced product development using theÂ agile development processÂ to the Indian operation of product engineering outsourcer Symphony Services.