Posts Tagged ‘software development’
Future of the IT and Offshore Software Development Industry India
2010 is looking a lot like 2002 in the IT outsourcing industry. Back then clients were cutting back, driving economies of scale and consolidating vendors. Decision-making moved away from business and IT managers to purchasing teams. The difference back then was western IT companies – the incumbents - suffered as Indian outsourcing companies benefited and took ground.
In 2010, the Indian IT companies are the incumbents and clients are scrutinizing all vendors and contracts. Senior executives at IT outsourcing companies need to take action now to make sure they aren’t the losers when the consolidation decisions get made.
So, how should they prepare? Start by looking at what happened in 2002. Purchasing departments at large clients used two metrics to make vendor optimization decisions – cost and quality. Cost is easy to compare but what about quality? Back then the decision makers seized upon CMMI as the standard of quality and quite honestly the Indian IT industry was only too pleased, as all the large players had already been appraised at CMMI Level 5 – the highest level achievable. The companies that enjoyed success in 2002 were those judged, according to the CMMI, as having the highest quality processes. In 2010 this focus on quality will remain just as critical; however, there needs to be a shift in the measure of quality.
As the industry moves towards more high level tasks such as research and development and KPO (Knowledge Process Outsourcing) that put the focus on the qualifications and quality of the professionals doing the work. The quality of the talent and the workforce is the next key measure of quality. What I am seeing now is there is no measure of quality distinction offered by IT providers and therefore the only variable left is cost. In this scenario we run the risk of IT providers dropping pricing in order to survive. This will cause a long term earnings and investment gap in the industry. Dropping pricing today will take down long-term earnings and in order to minimize the impact to earnings, companies will reduce critical investments to remain competitive. There has to be a better way.
Benchmarking their talent to a global standard will be critical for organizations with a desire to become dominant in the industry.
At PAC we are working with leading companies do exactly this. Benchmark and certify their talent against a global population. The process is rigorous but highly rewarding. Beyond a marketing edge, companies get rare insight into their talent pool, training processes and the deployment of their staff. By sharing the insights with their clients they collectively make better talent optimization decisions. They are now working with their clients at a more strategic level and proving themselves as a high quality partner.
So, are you ready for 2010?
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World’s Internet Users Population
Internet is growing in dimensions every second, so much so that there are more addresses than there are people on Earth, claims the team behind Microsoft’s new search engine Bing.
Bing has put the number of web pages at “over 1 trillion”, while Google had earlier indexed more than one trillion discreet web addresses.
The current global population stands at more than 6.7 billion, which means that there are about 150 web addresses per person in the world.
And this could mean that if a person spent just one minute reading every website in existence, then he or she would be kept busy for 31,000 years, without any sleep.
“An average person would need six hundred thousand decades of nonstop reading to read through the information,” News.com.au quoted Bing as saying.
Mark Higginson, director of analytics for Nielsen Online, said that the global online population had jumped 16 per cent since last year.
“Approximately 1.46 billion people worldwide now use the internet which represents a solid 16 per cent increase from the previous year’s estimate (1.26 billion in 2007),” he said.
The largest Internet population belongs to China, with 338 million users online, which is more than there were people in the US.
However InternetWorldStats.com (IWS), a website that combines multiple data sources, has claimed that China’s online population is more like 298 million.
“With the rates of India and China still quite low, there is ample room for growth in the coming decade,” said Higginson.
But, measuring the online population could be tricky-there are servers, users, per capita numbers, and penetration percentages to evaluate.
And thus it is difficult to find a single figure to represent the world online population.
IWS combined data from the UN’s International Telecommunications Union, Nielsen Online, GfK and US Census Bureau, and its latest global figures puts the number of internet users in the world at 1,596,270,108.
And this is just 23.8 per cent of the estimated 6,0706,993,152 people in the world. But it changes every day.
“In terms of the future, we anticipate mobile to contribute significantly to internet usage,” said Higginson.
According to IWS, the top 5 countries with the most internet users are:
1 - China (298,000,000 users, or 22.4 percent of their population)
2 - US (227,190,989, or 74.7 percent)
3 - Japan (94,000,000, or 73.8 percent)
4 - India (81,000,000, or 7.1 percent)
5 - Brazil (67,510,400, or 34.4% percent)
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UK search marketing spend ‘to reach £330m in 2008′
British organisations will spend £2.75 billion on search engine marketing (SEM) activities this year, according to a new publication.
This represents an increase of 24 per cent compared with last year, E-consultancy’s Search Engine Marketing Buyer’s Guide said, according to Precision Marketing.
Breaking this down, the report said that search engine optimisation spending will rise 32 per cent to reach £330 million by the end of 2006, while pay-per-click expenditure will see growth of 23 per cent to hit £2.24 billion.
Despite this double-digit growth, it is not as high as the increases recorded in previous years, something that may be attributable to the slowing economy, E-consultancy editor-in-chief Chris Lake remarked.
However, he added: “Consumer internet usage is flattening out, but the sector is certainly more robust than other media channels that have a less measurable return on investment and should continue to grow for years to come.”
Mark Jackson of Search Engine Watch recently commented that the level of spending going to organic and paid search appears to be somewhat disproportionate considering research suggesting that up to 70 per cent of all search engine click-throughs occur in organic listings.
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