10th March 2008

TCS Launches Scalable Service Model for SMBs

Source: www.channeltimes.com

Tata Consultancy Services (TCS), a IT services, business solutions and outsourcing organization, recently announced the launch of its new business unit focused on meeting the technology needs of SMBs.

TCS will offer “IT-as-a-Service” (ITaaS) in a business model giving SMBs the experience of customized low-cost solutions scalable to their growing business needs.

ITaaS is a subscription-driven model that allows SMBs to scale as they grow and pay as they use. It is hosted centrally on a common platform to facilitate alignment of technology adoption to the needs of the business and bring scalability to the business model. The ITaaS model will allow SMBs to take advantage of TCS’ existing intellectual property, infrastructure and scale, as well as that of its partners. It will provide SMBs with blueprints for business process improvement and deliver integrated end-to-end managed solutions in IT and telecom.

It also offers flexible pricing options to reduce capital expenditure, manage cash flows and maximize return on investment. This will help provide SMBs with opportunities for greater cost control and faster go to market. The ITaaS model will encompass solutions across industries as well as the entire stack of industry-agnostic horizontal services to meet the needs of SMBs.

“Our aim to be a leading end-to-end business solution provider in the SMB segment is part of our overall strategy to expand into new markets and customer segments. We believe this model can help make Indian business even more competitive on the global stage and put the power of technology on their side to build competitive advantage,” said S. Ramadorai, chief executive officer and managing director, TCS.

“Small and medium business is growing rapidly, but their IT needs are not being met in an integrated and holistic manner by the industry. By leveraging our global experience and best practices, TCS has devised a model to deliver integrated, end-to-end, managed IT solutions that give SMBs a scalable option for meeting their technology needs,” said N. Chandrasekaran, chief operating officer and executive director.

“Our technology leadership and global experience combined with delivery excellence, best-in-class service offerings and globalized best practices in consulting and IT services takes us beyond standard catalogued solutions to a framework that can enhance customer experience and ensure certainty of delivery and services for small and medium business,” said V. Ramaswamy, head of SMB unit.

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10th March 2008

Intelligroup turns focus on Europe

Source: www.business-standard.com

US-based Intelligroup Inc, a provider of strategic IT consulting, application management, support, and implementation services, is planning to increase its focus on the European market.

“The move is part of the company’s strategy to diversify its revenue streams from the US market in the wake of the downward-spiralling dollar. Besides, outsourcing trend is fast catching on in Europe and, therefore, we plan to strengthen our presence in this region without depending on the US market alone,” Alok Pant, senior vice-president (global marketing and alliances,) Intelligroup, told Business Standard.

Intelligroup had last year acquired IGS Novasoft, a UK-based company, which had a good SAP implementation methodology, for $3 million (approximately Rs 12 crore) to translate this shift in its approach.

This acquisition brought a marquee client – Siemens UK – into the company’s fold. Intelligroup has 300 active clients globally, of which around 50 are from Europe.

“Besides leveraging our acquisition of Novasoft, we are looking at building strong bonds with major companies in Europe. We are in talks with Hewlett-Packard (HP) and SAP to become their reseller and work closely with their sales teams there. Besides, talks are on with Microsoft UK for Duet, a co-developed software offering with SAP, to take the product to the market,” Pant said.

According to him, US at present contributes 75 per cent to Intelligroup’s overall revenues, which it plans to bring down to below 70 per cent during this calendar year.

Intelligroup, which follows a January-to-December calendar year, reported third quarter 2007 revenues of $38 million (around Rs 152 crore), a 17 per cent increase from $32.5 million (Rs 130 crore) in the third quarter of 2006. It clocked revenues of $125 million (Rs 500 crore) in 2006.

The company has offices at Hyderabad and Bangalore in India, and UK, US, Denmark and Japan. It employs 2,400 globally.

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