The Mean and Median of IT Outsourcing

I see that IBM has signed up Dun & Bradstreet for a honkin' big seven-year, $180 million outsourcing agreement, which isn't entirely IT-oriented, but...

How an Insurance Company Rates Its IT Projects

The September issue of Baseline includes a quick account of AFLAC and how it determines whether to send IT work out of house or...

Expect To Pay Less

Had lunch with an executive from a sizable US-headquartered firm that does a huge business in IT outsourcing. He's out there doing cold-calling to...

Optimize: Is Outsourcing Killing Jobs?

Don't know how I missed this one. The September issue of Optimize included a pro-con piece featuring Lou Dobbs, CNN anchor and author of...

Tata’s Getting Bigger

Tata Consultancy Services Limited held its first call with analysts yesterday as a publicly traded company. (It went public on August 25, 2004 under the Bombay Stock Exchange and the National Stock Exchange.) According to Mr. S. \"Ram\" Ramadorai, CEO and Managing Director, revenue was up 14% from the previous quarter and 44% from the corresponding quarter in the previous year. Net income, excluding exceptional items, was up 14% over the previous quarter and 52% over the corresponding quarter in the previous year. Bottom line: The company\'s growing.

One interesting stat offered by Mr. N. \"Chandra\" Chandrasekaran, Executive VP, Global Operations: There has been a tiny shift in the pricing model customers are seeking. Last quarter 47% clients sought time and material contracts. This quarter that\'s up to 49%. Mr. Chandrasekaran predicted that fixed time projects would stay at around the 50% range for coming quarters. The smart folks at META Group would have one believe that both kinds of pricing models were old-fashioned and on the way out -- giving way to contracts in which the customer acquired transformational services rather than time-and-material resources and paid based on the business impact. Apparently, not so in the TCS world.

Also, this largest of Indian IT outsourcing firms currently has 490 active clients. Considering it\'s a billion dollar operation, I\'d have expected more. That\'s about $50 million per client. (GE is about a $200 million client for TCS.)

Mr. S. \"Paddy\" Padmanabhan, Executive VP, HR and Organization Development, shared these tidbits: The company has around 41,000 employees worldwide. They enjoyed on average a 15% salary increase this year. While I haven\'t seen many salary surveys issued in the last couple of months, I can only imagine that US workers would probably salivate at the prospect of enjoying a raise of that size. The staff grew by about 4,500 people during the quarter.

Tata's Getting Bigger

Tata Consultancy Services Limited held its first call with analysts yesterday as a publicly traded company. (It went public on August 25, 2004 under...

Inside an IT Audit

A special fall/winter issue of CIO magazine offers a good read in the article, "Inside an IT Audit." (You'll need to register for free...

Florida: Poster Child for Ill-considered IT Outsourcing Deals?

Florida just canceled another IT outsourcing contract. This time it was a help desk contract signed with Accenture. Before that it was data center...

Vendor Selection in Outsourcing Projects

In a session titled, "Outsourcing Vendor Selection," META Group Director Doug Plotkin and VP Stratos Sarissamlis shared some useful advice about the process --...

On Penalty Clauses and Dashboards

Here's a great line from META Group VP Michael Doane on the topic of penalty clauses in outsourcing contracts: "It’s going to have to...