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July 2009 Quick Hits - News, Trends & Analysis

Satyam did not become India's Enron
In January, Satyam was thrown into turmoil when its former chairman admitted to misreporting the company's financial figures. While many predicted that Satyam would become India's Enron, it has achieved quite the opposite. When Tech Mahindra won the race to buy Satyam, they sought to benefit from Satyam's excellent workforce, strong relationships, and profitable contracts with existing customers. Unlike Enron, which disappeared into thin air, Mahindra Satyam has just won a 5 year deal to monitor and support GlaxoSmithKline's SAP applications globally. As quoted on computerweekly by Karl Finders, "Bill Louv, CIO at GSK, said the company has always received a high level of professionalism and commitment from Satyam and its staff over the past seven years", and those well established relationships will not disappear because of one rogue chairman.  
Top Outsourcing Destinations In Latest Survey
According to A.T Kearney GLSI (Global Location Services Index) in 2009 there has been a shake up of the top 10 outsourcing destinations. Central & Eastern Europe is dropping off the scale. Interestingly, 2 Middle Eastern countries have appeared in the top 10, due to its large, well-educated population, heavy investments in infrastructure, and its proximity to Europe. Also, the growth of Middle Eastern consumption of outsourced services has helped the cause. The latest top 10 (previous year's ranking):
India (1)
China (2)
Malaysia (3)
Thailand (4)
Indonesia (6)
Egypt (13)
Philippines (8)
Chile (7)
Jordan (14)
Vietnam (19)

As quoted from Offshoring times, "India, China and Malaysia continue to lead the index by a wide margin through a unique combination of high people skills, favourable business environment and low cost. In particular, India has remained at the forefront of the outsourcing industry and actually has become an enabler for industry growth through expansion of Indian offshoring firms into other countries."  
It is a rare occurrence to see large scale IT Transformation project succeed, even more so when they are government-run. No other project in the British press has received more criticism than the NHS IT Project, and rightly so due to its massive £12BN budget. The intention was to link all computerised GP Surgeries with the NHS Network, essentially one large Database with seamless integration between anyone on the network. It is almost impossible to implement a cohesive IT roadmap for an organisation as complex and devolved as the NHS. Computerweekly recently ran a story where they showed the numerous warnings they gave between 2002 and 2004. My favourite, from July 2002, reads, "Why don't people learn? Why are big IT projects seen as a badge of virility or a sign that we really mean business? They nearly always cause trouble: the bigger the change, the bigger the trouble." But one thing is certain we forgot to mention the winners: the consultants and services providers who have been invoicing this black hole of funds over the past decade. Some pockets have definitely become very deep, and certain wallets very thick. 

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