Thursday, November 19, 2009

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IBM eyes tier II, III cities for expansion in India

IT solutions provider IBM is planning to expand its footprints in tier II and tier III cities with a bouquet of hardware, software and services offerings primarily targeted at mid-market clients.

IBM Growth markets vice president Harish Krishnamurthy told ET that the company is soon going to set up its hubs in potential cities like Raipur, Bhopal, Bhubhaneshwar, Vizag and Nagpur. “These cities have great untapped potential.

By starting our hub in these cities we would be able to cater to the requirements of surrounding tier III cities through our partners under hub and spoke model. The small and medium enterprises offer great business opportunities,” he said.

At present, IBM has a direct presence in 22 cities across the country. The company has also appointed IT players Sequel Infocom and Icon Integrated services as the channel partners to sell IBM’s infrastructure services to clients. “These two partners will focus primarily on Rajasthan market. They will help us in enhancing our reach in the state by offering infrastructure services to clients helping them in areas of Green IT, security, business continuity, improved collaboration and communication among others,” he said.

IBM has also launched first of its kind service offering named IBM Express Remote managed Infrastructure Services (ERMIS) exclusively to be sold by its channel partners. “IBM cannot sell it directly to the clients. It has to be sold through our channel partners. It is designed to enable IBM business partners in providing their clients with remote monitoring, management and service reporting of their IT infrastructure,” said Vivek Malhotra, IBM vice president – North & East, General Business.

Apart from that the company has also launched a cost-efficient Scalable Modular Server Rooms (SMSR), which has been successfully implemented in Shree Cements. “This is also first of its kind in the country. Unlike other conventional servers, which take 6-7 months for installation, this data server takes shipment time of 2-3 weeks and just 3 days of implementation time. Also, it consumes 15-30% less power than other servers. The entry level model comes at a competitive price point of $50,000 which is almost 10% of any conventional server,” Mr. Malhotra said.
Source: EconomicTimes

Over 2,000 Indian firms adopt Windows 7

In less than a month since its launch on October 22, over 2,000 Indian companies are in the process of installing Microsoft’s latest operating system (OS), Windows 7.

The companies include major IT companies like Infosys, Wipro, NIIT, car companies like Maruti and even the Bangalore airport, and Manipal University, besides many small- and medium-sized businesses (SMBs), according to Steven Guggenheimer, Microsoft’s corporate vice-president, OEM.

“We also see a reasonable amount of Windows XP (which has been around for eight years) on machines. We expect the natural refresh cycle over the next 12-24 months,” says Guggenheimer. Microsoft has tied up with 17 original equipment manufacturers (OEMs) in India. During the launch, the company had set a target of having Windows 7 installed on over 100 personal computer (PC) models.

All major PC manufacturers in the country, including HP, HCL, Acer and Dell, among others, have come forward to offer the new OS with their range of desktops and laptops. “We have reached around 80 PC models. The target is well within our reach,” he asserts.

Windows 7 has five versions priced between Rs 5,800 and Rs 11,000. The starter edition is cheaper but is not available on shelves (only through OEMs). And the Windows 7 versions are 25-35 per cent cheaper than comparable versions of Windows Vista.
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Ciber to double the headcount in India to 1300

System integration consultancy and outsourcing firm Ciber plans to double its employee strength in India from its current headcount of 650, within a year.

The Greenwood Village, Colorado based company operates two offices in India at Bangalore and Chennai. "We are going to hire aggressively in India and also we are planning to open another facility in Bangalore," says Raghurama Kote, President of Ciber India.

The New York Stock Exchange listed company has been operating in India from 2005 after it acquired Knowledge Systems in Bangalore. The Bangalore facility is one of several globally distributed delivery centers, which Ciber brands as 'Cibersites'. There are 12 Cibersites around the globe that support the various divisions of the company. These centers offer application development, application management and information technology (IT) operations services for firms seeking ways to outsource business functions, which are not part of their core business.

According to Tony Hadzi, Executive Vice President and President - Customs Solutions Division at Ciber, the Bangalore centre is a major part of the company because it supplements the global operations of the company. Currently, Ciber has 85 offices in 18 countries across Asia, Europe and North America with total employee strength of 8,500. For 2008, the company reported $1.1 billion revenue, which is a seven percent increase as compared to fiscal 2007.

After the advent of recession, like all companies even Ciber has adopted new strategies to stay ahead of its competitors. One of them is the collaboration of its smaller branches with its larger branches, to develop solutions for the former's customers by using the capabilities of the latter. "The Bangalore centre plays a crucial role in this collaborative effort, by providing the necessary offshore support," says Hadzi. Ciber's client list includes all kinds of companies, apart from the various governmental agencies that it serves in the U.S.

Though, Ciber still gets a majority of its revenue from U.S., the company is seeing a lot opportunities emerging in the Indian market. "Currently we have only eight customers in India, but we plan to add more especially in the retail and financial services segments," says Kote.

The company is also looking to grab the opportunity in the healthcare space, following the announcement of Barack Obama's multi- billion dollar healthcare reforms. "Currently, healthcare is a major area of focus for us, along with the mobility segment," adds Hadzi.
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Pegasystems to triple its Indian workforce

United States-based software company Pegasystems plans to triple its workforce in India over the next 12 months. The provider of business process management software has a research and development centre in Hyderabad, which employs over 100 people.

“Our operations in India are aimed at making the best of the talent available here, not at cutting costs,” Suman Reddy Eadunuri, managing director of the company’s Indian arm, said. “To that end, we have seen tremendous traction here.”

Pegasystems has also launched its customer support centre in Hyderabad, which would cater to its customers both in India and abroad. So far, the company’s support centres located in Massachusetts, US, and Reading, UK, have been servicing global support requirements, including 10 per cent of requirements from customer and partner staff located in India.

India’s support centre will open with an initial staff of 10, and is expected to scale up over the coming years, Eadunuri said. “Expansion of the India operations is expected to give a further economic lift of $50-$100 million to the Indian economy over the next five years,” he added.

The company expects turnover for financial year 2009 to be $250 million. For the next year, the company anticipates breaching the $300 million mark.

“We have had several consecutive quarters of record growth even while the world was reeling under the economic recession. Once the situation starts improving, we are hopeful of doing even better,” Mike Pyle, senior vice-president, engineering, said.
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Europe is still distant for Indian IT

Indian IT firms have been beefing up their focus on the European market in the wake of the US downturn. While this potential market, especially continental Europe, is large, it won’t generate proportionate opportunity in the next three years, according to Forrester Research.

Sudin Apte, principal analyst, Forrester Research, said that at present Europe appears to be a lucrative opportunity which is not achieving its targets vis-à-vis the traditional offshore sales story. “It is a huge challenge and only providers who are culturally fit have a better chance to succeed,’’ the analyst added.

A study conducted by the analyst firm — Continental Europe: Growth opportunity or never ending sales cycle — highlights the fact that for Indian service providers European business is difficult to realise. The issues they face include highly federated decision making in European firms, complex procurement processes and contracting terms, language barriers and political relations with India, including the visa policy.

Apte said that there are possibilities of work alliances coming from Europe, but the business is dominated by the UK, which is more like the US market. Offshoring from continental Europe is still in a stage of infancy with only companies with global operations willing to pursue it.

India’s IT/BPO export figures with Europe is presently about $14 billion with UK accounting for $9 billion and continental and nordic regions contributing $5 billion. It has a small base and the deal sizes are very small, said Apte.

According to him, the advantage that US majors like IBM, Accenture and HP have over Indian firms is that they have been in Europe for a longer time and have invested heavily in setting up development centres offering broad-based solutions in several countries.

“Indian firms have started to set up near-shore and local centres, but most have capabilities in particular services or verticals,’’ said Apte. He argued that Indian companies and their sales model will have to redefine the cost structure, their value proposition, and cultural affinities to become successful.
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Wipro ties up with Intel for rural medical solutions

Wipro Technologies has tied up with Intel to provide medical solutions in rural areas. With its new medical gateway solution aided by Intel Atom processor, Wipro is hoping to address some of the difficulties faced by healthcare providers, the company said on Tuesday.

The medical gateway is essentially an intelligent embedded platform, which enables patients, doctors and other healthcare professionals to monitor and track healthcare information from a remote location. The solution enables real-time clinical view by capturing vital data from multiple medical devices, such as blood pressure monitors and glucose meters. Devices can connect to the gateway solution through wired and wireless technologies such as Bluetooth/USB to provide real-time medical data, video and image transfer.

According to Manimaran, general manager -medical devises, Wipro Technologies, ageing population in the developed markets are playing an active role in taking care of their health. “This has spurred advances in remote patient monitoring technologies. But these are beyond the financial reach of a large section of the population in the emerging economies. Wipro’s medical gateway solution would help bridge this gap and enable faster time-to-market for medical device OEMs to launch customised products,” he added.

In hospitals, the medical gateway has the ability to transmit real-time medical data to application servers and physician handhelds. According to Wipro, the low-cost solution would bring about improvements in existing solutions whose adoption has been low due to their high cost.

Intel South Asia’s marketing director for emerging markets, Sanat Rao, said the new solution is an example of how Intel enables groundbreaking applications. “The Intel design house programme provides hardware and software support and training to get products to market,” he said. Intel, however, said that no clear figure had emerged about the addressable market size for this particular solution. “But India will emerge as one among the top six destinations for medical software by 2010,” said Rao.