PSEB ACTIVITIES
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Marketing 

PSEB promotes the image of the Pakistan IT industry in key markets abroad, enables trade interaction with international parties, and facilitates the entry of multi-national development and support centers into Pakistan. 

  • PSEB participated with nine member companies in ITCN Asia from August 9-11. The event reportedly attracted over four hundred and fifty foreign delegates and was considered a huge success. 

  •  Six TV interviews were given by MD PSEB in CNBC, Business Plus, PTV World, Arabian TV and Aaj TV to promote the IT industry. In addition a radio interview and two magazine interviews were given. Three Press Releases were issued on ITCN Asia, CMMi L5 Rating by NetSol, and Growth in IT Export Revenue. 

  • A Marketing Launch Project has been approved by the Ministry of IT which will include platinum sponsorship of the PASHA award event and the publication of an industry year book.

  • A Chinese delegation, comprising executives of leading telecom and IT companies visited PSEB and was provided a presentation on the Pakistan IT Industry potential and strategic 
    initiatives.

  • An on-line promotional campaign is running on www.yahoo.com which has increased hits on the PSEB website by two and a half times. This banner advertisement is only accessible to IT professionals from Australia, Middle East and USA. 


Strategy

In conjunction with stakeholders like PASHA, the industry association, PSEB has developed a vision and strategic roadmap to fast track IT industry growth.

  • Export targets for the fiscal year 2005-6 were exceeded. PSEB has proposed a four year 
    strategic plan which will increase total IT industry size to USD 10 billion in calendar 2010.

  • An Export Plan has been provided to Planning and Development Division for incorporation into the overall Export Strategy and targets of Pakistan.

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Office Space Provision
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PSEB operates 650,000 square feet of Software Technology Parks in nine buildings across Karachi, Lahore and Islamabad.
  • Contracts have been signed with two building owners in Karachi and Islamabad for the establishment of Software Technology Parks (STP). This will add over one hundred thousand square feet to the STP facilitated by PSEB.
  • After working with Capital Development Authority (CDA) closely for several months, thirteen and a half acres of land in Chak Shahzad, Islamabad, are finally in the possession of PSEB for the purpose of constructing an IT Park.
  • Following an advertisement in national dailies, Expressions of Interest (EOI) have been received from fifteen technical, financial and legal consultants who will assist PSEB in selecting a development consortium for the construction of IT Parks, negotiating contracts and monitoring progress.
  • In a meeting chaired by the Prime Minister on August 19 to review progress in the construction of IT Parks. The methodology was approved & Civil Aviation Authority (CAA) was directed to provide six acres each in Lahore & Karachi Airports to PSEB for the construction of IT Parks. 
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Industry HR 
PSEB works with the IT Industry and the Higher Education Commission (HEC) to increase the influx of quality graduates into IT companies and provide further trainings and certifications to professionals. 
  • Oracle CRM/Siebel training was conducted in Lahore for 13 people from three PSEB member companies. The last Siebel training was conducted in Karachi.
  • 25 nominations were received for Oracle Financial training to be conducted in Islamabad in September, 2006
  • A new expanded Internship project which will increase monthly stipend to Rs 6000 per intern from Rs 3000 was approved by the R&D Fund. PSEB has already successfully placed 2,500 interns.
  • A new Apprenticeship Program which will provide stipends of Rs 15,000 per month for up to a year to companies to train new hires was also approved by the R&D Fund.
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Public Policy
PSEB facilitates the creation of a public policy environment including taxes, tariffs, trade and intellectual property protection to enable the growth of the IT industry.
  • Following several meetings with CBR authorities on GST issue; a proposal incorporating refund of GST to IT companies has been prepared and forwarded to PASHA for approval and dissemination to member companies. Other proposals are being prepared for local assemblers, distributors and finished goods importers. 
  • A consultative group comprising some twenty professionals from the IT industry has been constituted to debate and finalize the proposed Data Protection Act.

Industry Finance
PSEB is working with stakeholders to create a financing and funding ecosystem for the IT industry.
  • To enable the provision of funds to IT companies, a legal structure for a proposed VC Fund has been finalized. The consultant has also just submitted a proposed RFP for selection of fund management companies which will be evaluated. 
  • State Bank of Pakistan (SBP) authorities are being pursued to finalize and convene a cross-disciplinary task force on IT financing. 

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Quality
Under PSEB sponsored programs, Pakistan now has 110 ISO certified IT companies and by the end of the fiscal year should have almost 25 CMM rated IT companies – making it a World Leader in both of these important categories. 
  • Under a PSEB-sponsored program, NetSol became the first Pakistani company to attain the distinction of CMMi L5 rating. The certificate awarding ceremony was held in Ministry of IT on August 17 and was chaired by the Minister, Mr Awais Ahmed Khan Leghari. Xavor Technologies was classified at L3.
  • As part of the newly launched information security initiative, ISO 27001 gap analysis at IKONAMI and NetSol Technologies has been completed. Additional consultancy and candidate software companies are being selected.
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Facilitation
PSEB facilitates IT companies in their interaction with various Government agencies and also launches programs in areas of strategic importance where the private sector is shy of investing. 
  • PSEB assisted IBM in an economic, IT and Telecom-related survey which may lead to the establishment of a resource centre in Pakistan
  • PSEB extended facilitation to eight companies and delegates in the month of August in the areas of Visa, taxes, foreign currency remittance, establishment of liaison offices and related matters.
  •  Thirty new IT companies registered with PSEB in the month of August and thirty five companies renewed their registrations. Seventeen new call centers were issued provisional 
    certificates to operate and two were renewed.
  • Meeting with PASHA regional executive committee members was held in Lahore on August 23. Proposals were received for capacity building of larger companies to increase international competitiveness. These are being considered.
  • In an IT industry survey being conducted in Lahore, Karachi and Islamabad, all company visits are completed and data is now being verified and consolidated. In the next stage, visits will be conducted to companies in other cities. 
  • User Acceptance Testing for open source ERP for All Pakistan Textile Processing Mills Association (APTPMA) has been successfully completed. The software has been deployed at six units in Lahore and two in Gujranwala and is being deployed at five units in Karachi. Business metrics are being gathered at the model unit, Haroon Textiles in Gujranwala.
  • Open source training was provided to oil and gas company SHV.

  L O C A L    N E W S 
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IDC visualizes Pakistan as Rising Star
IDC is the premier global provider of market intelligence, advisory services and events for the information technology, telecommunications and consumer technology markets. 

Recently an IDC study is focusing on Pakistan as a rising star on the offshore outsourcing playing field by examining the issue in two parts: first, through a look at fundamental economic statistics and second, through an overview of the expanding influence of networks made up of private sector, public sector and academic professionals. The results of efforts from such networks will continue to spill over into the area of business process outsourcing (BPO) generally and contact center outsourcing specifically. These groups are contributing directly and indirectly to the meshing of Pakistan with the global economy.

"The growing awareness of corporate responsibility and the management of global image and brand matters because it is this sentiment that also is contributing to the growth of influential professional networks that involve so many from the developing world and the United States and Europe," said Stephen Loynd, Program Manager for IDC's CRM and Customer Care BPO program. "Those networks, in turn, will have more and more of a spillover effect into the spread of BPO. A location like Pakistan that not only has solid country fundamentals for BPO but also is producing particularly robust networks of private sector, public sector and academic professionals will in all probability be a formidable presence on the future playing fields of offshore outsourcing."
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HH Sheikh Nahayan Mabarak Al Nahayan and Sir Terence H Matthews join hands to launch Raseen
His Highness Sheikh Nahayan Mabarak Al Nahayan is pleased to introduce Raseen, an exciting new company developing and marketing software for mobile and fixed telecommunications networks. Raseen is a partnership between His Highness Sheikh Nahayan Mabarak Al Nahayan and Sir Terence Matthews of Wesley Clover Corporation, one of the world’s most successful networking and telecommunications investors. Raseen is currently in the process of setting up a global development centre in Lahore.
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Super Technologies product DIDX gets nominated for World Communication Awards
DIDX is a product of Super Technologies, Inc. which provides a global telephone exchange service that allows traditional telecom companies to sell their phone numbers globally using the internet. DIDX also allows VOIP companies like SKYPE, SIP PHONE, Vonage and YAHOO to provide telephone numbers from all around the world.

In Less than one year’s time, there are over 2700 Telecom Companies now taking advantage of DIDX from over 200 Countries Around the world. Current Members of DIDX include SipPhone, Yahoo, Global Crossing, Argentina Telecom, Telecard Pakistan. DIDX also won last year's PASHA Communication award and got nominated for the APICTA Awards and the entire software was written in Pakistan.
The success of DIDX can be witnessed from its nomination in the World Communication Awards which have evolved from their roots in the networking industry, maintaining their ongoing relevance to the industry and emerging as the most desired Awards in global communications.
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Netsol Is a CMMI® Level 5 Company
NetSol’s development facility in Lahore, Pakistan has been recognized by the Carnegie Mellon Software Engineering Institute (SEI) at Level 5 of SEI’s Capability Maturity Model Integration (CMMI®). The company attained this much sought after recognition in just 18 months and is the only such rated company in Pakistan. Currently, there are only 100 companies in the world that have announced their CMMI® Level 5 rating.

The Capability Maturity Model Integration for Software (CMMI® or SW-CMMI®) is a model for judging the maturity of the software processes of an organization and for identifying the key practices that are required to increase the maturity of these processes. The SW-CMMI® has been developed by the software community with stewardship by the Software Engineering Institute (SEI), Carnegie Mellon University.

The SW-CMMI® has become a de facto standard for assessing and improving software processes. Through the SW-CMMI®, the SEI and software community have established an effective means for modelling, defining and measuring the maturity of the processes used by software professionals.
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ClearCube and FiveRivers partnership yields tremendous innovation in Enterprise Software
ClearCube Technology based in USA is the leading manufacturer of Blade PCs and Management Software, announced the availability of ClearCube Sentral 5.0. The Enterprise Systems Management application, developed in partnership with Lahore-based FiveRivers, was launched at ClearCube Headquarters in Austin, Texas.

“The release of ClearCube’s Sentral is pivotal for ClearCube, but it also comes as a major landmark for Pakistan’s IT industry.” said Mr. Rick Hoffman, Vice President of Engineering for ClearCube Technology. Sentral is one of the most complex, high-invention and widely marketed software products developed in Pakistan. “This product has a multi-million user potential and is immediately applicable to thousands of ClearCube customers, which include a substantial percentage of the Global 2000, including industry stalwarts such as British Petroleum, Lehman Brothers, Morgan Stanley and many others.” explained Mr. Hoffman.

“Sentral represents one of the most innovative, bleeding edge products that we have delivered. FiveRivers is immensely proud of its excellent strategic relationship with ClearCube Technology and is fully committed to further drive improvements, efficiencies and innovation into future ClearCube offerings”, said Mr. Hasan Rizvi, CEO of FiveRivers.

Sentral 5.0 is a new management software that enables unmatched flexibility and control over centralized computing environments. Centralized computing is cited by IDC as the fastest growing market in the desktop computing space and ClearCube takes advantage of this trend with the ClearCube Sentral release.

The partnership between FiveRivers and ClearCube has been exemplary, and it demonstrates how a well formulated, professionally executed strategic relationship between global companies can yield substantial benefits to both parties. We hope this effort marks an inflection point in triggering many such collaborations between the US and Pakistan, in the overall spirit of friendship and cooperation that exists between the two nations”, said Mr. 
Amir Husain, Managing Director of Advanced Technology at ClearCube.
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Wyse Technologies an American IT company is setting up Marketing & Support Center in Pakistan
“We have decided to fully avail the vast opportunities in the IT sector of Pakistan”, said John Kish, President and Chief Executive, Wyse Technologies

The American IT Company, Wyse Technologies has decided to set up a marketing and support centre in Pakistan. This decision was confirmed by the company’s President and Chief Executive, John Kish. He said that Pakistan is a beautiful country and offers many opportunities for the promotion of Information Technology and that their company has decided to fully benefit from them. He said that Wyse Technologies various software and hardware products are being used very successfully all over the world but there has been some set back specially in the Thin Computing applications so they hoped to attain better results with this venture. During the interview, he 
said that Pakistan offers excellent opportunities with Banks and Financial Centers, Insurance Companies, Textile Industry, Educational Institute etc. Thin Computing helps set up a centralized network of all computerized systems and because it acts as a strong anti-virus as well, it is a very safe system. John Kish said that his company wants to do business as well as extend friendly relations with Pakistan and so initially will set up a marketing and support centre here and later will also set up a research facility. He added that his company will also offer training support to I.T graduates in the country. 

Wyse Technologies has a 40% share in the IT sector and that this figure is gradually increasing. John Kish is on a three day tour of Pakistan and during his stay he will also meet with respected Government 
officials. John Kish also said that this technology has already been introduced in Pakistan and many Banks as well as Textile companies are using it already and now its usage in other sectors will spread more quickly.

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JICA selects AZM to develop District Health Information System
Health Management Information System (HMIS) for first level care facility (FLCF) was introduced in 1992 through Ministry of Health Government of Pakistan. Government of Japan, through JICA extended its assistance on the request of Government of Pakistan and sponsored a “Study on Improvement of Management Information System in Health Sector”. JICA selected Japan based Consultancy Company System Sciences Consultants (SSC) as the study team and AZM were given mandate to design, develop & implement DHIS software based on the study team output.

Being an initiative partner of PSEB/Ministry of Information Technology for the promotion of software development based on Open Source Technology (industrial automation project) and keeping in view the client requirements, AZM proposed the development of browser based DHIS application on the open source technology platform to its client and selected Linux, Apache, PostGrsSQL and PHP framework.

The vision behind the development of DHIS in the study project is to automate operational & feedback functions across the whole organization. It is expected that its implantation will improve and accelerate the current performance of the selected districts. Another important factor of this project is to introduce and promote IT and get immediate results through implementation of feedback system.

Recently AZM successfully completed the development phase of the DHIS application and started the implementation at pilot location in all the four provinces covering provincial & district offices of health departments.
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Descon IT24 receives recognition award for developing International Land Registry system
Descon IT24 has received an “Outstanding Product Award” from Stewart Information International Inc., a technology driven, real estate information and transaction management company with over 9,000 offices all over United States. Stewart Information International is rated as one of the best title insurance companies in the US and is a member of the Fortune 1000 group. Descon IT24 received this award upon successful completion of 1st phase of International Land Registry system that is currently operational in the Lands & Surveys and Land Registry offices in Antigua, West Indies.

The purpose of the project was to automate and modernize government offices, where parcel mapping, land registration, and property valuation is performed. Landfolio Suite integrates these functions based on a common parcel number and increases governmental transparency by making land records available for public review and consumption.

Descon IT24 is using the valuable experience gained through the above project to develop its own Land Record Management & Information System (LRMIS) to help computerize land records in the country.
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  OFF SHORING / OUTSOURCING
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Leading BPO companies looking for outsourcing alternatives other than India
Although the Indian IT/BPO engine continues to surge ahead as the world’s premier offshoring destination, leading corporate consumers of outsourced services are now actively searching for other destinations, offering not just competitive or superior wages, but untapped skill sets and other unique 
benefits.

The main factors that have driven the growth in IT beyond India is that other countries offer lower cost, relevantly trained and otherwise hospitable destinations to achieve further magnitudes of efficiency improvement. China offers both broad potential across the greater ITO/BPO space and offers great promise in embedded software and product engineering. Pakistan and Philippines offer focused potential including across various BPO lines, call center, finance and accounting and processing work and Vietnam shows promise in various IT outsourcing roles as well as in software development and IT processing.

IT services companies like NetSol(NTWK)(leveraging its Pakistan base); Teletech (ITEC) (the call center specialist with an extensive network in developing markets such as Philippines); Spain-based Telvent (TLVT) with a well established China presence, are only a few of the companies whose pioneering efforts could reveal the benefits of the opportunities in these areas.
Source: Leham Brothers
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R&D Moves Offshore
Research and development, once cherished as the crown jewels of competitive advantage at most companies, is increasingly becoming a global commodity.

The trend to hand R&D tasks to outsourcing partners has been gaining momentum in recent years. The movement cuts across a wide variety of industries, including IT, and encompasses companies both large and small. Customers are finding that tapping skilled researchers in all corners of the globe can save them from costly talent searches and help them get products to markets faster.

The need for companies to get help in their R&D efforts was highlighted on June 14 when IBM announced it will be tuning its consulting operations to assist its customers in R&D projects, some of which IBM might carry out itself through its worldwide research capabilities. The initiative is being carried out by IBM's Global Consulting Services unit and complements the company's Technology Collaboration Solutions initiative, launched in March, in which IBM seeks to make its own R&D work available to customers.

"They want to teach clients how to fish," said Navi Radjou, an analyst with Forrester Research, in Cambridge, Mass. "There are some areas of R&D that are ripe for outsourcing, and IBM can do them. It's not body shopping, but brain shopping."

Radjou said companies, particularly in the United States, need R&D assistance because of a shrinking talent pool. In a report published in March, he reported that, since the mid-1990s, engineering and physics Ph.D.s in the United States have declined by 15 percent and 22 percent respectively.

Third Brigade, an Ottawa startup vendor of server-based intrusion prevention systems needed Solaris skills in a hurry so it turned to an Ottawa neighbour, Macadamian Technologies, which works with several Indian and Romanian research houses. Macadamian found the right skills among its Indian partners and called on them to create a Solaris driver for Third Brigade at a price of $60,000.

One issue in all R&D outsourcing relationships is the status of intellectual property, which customers generally insist they retain. "There's a trust level," said Terry Cass, director of product development at Third Brigade. 

"We have personal relationships with these guys."Cass said good communication is also critical, especially in the requirements phase of the work. "We ran into that issue and resolved it by having them write the requirements which we review," he said. Cass noted 
another hurdle: adhering to a budget. Having underestimated some projects, he found the best way to avoid uncertainty is to agree to a fixed price with an R&D outsourcing partner.

Chambers said the single biggest stumbling block is the tendency of customers to wash their hands of projects once they turn them over to outsourcing partners. "People tend to look at outsourcing as turning over responsibility completely. That's when projects fail. We look at Patni as an extension of what we're doing. We look at them as our Mumbai development team," said Chambers.
Source : http://www.eweek.com/
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Competition Clouds Outlook for India’s Software Companies
Research and development, once cherished as the crown jewels of competitive advantage at most companies, is increasingly becoming a global commodity.

The trend to hand R&D tasks to outsourcing partners has been gaining momentum in recent years. The movement cuts across a wide variety of industries, including IT, and encompasses companies both large and small. Customers are finding that tapping skilled researchers in all corners of the globe can save them from costly talent searches and help them get products to markets faster.

The need for companies to get help in their R&D efforts was highlighted on June 14 when IBM announced it will be tuning its consulting operations to assist its customers in R&D projects, some of which IBM might carry out itself through its worldwide research capabilities. The initiative is being carried out by IBM's Global Consulting Services unit and complements the company's Technology Collaboration Solutions initiative, launched in March, in which IBM seeks to make its own R&D work available to customers.

"They want to teach clients how to fish," said Navi Radjou, an analyst with Forrester Research, in Cambridge, Mass. "There are some areas of R&D that are ripe for outsourcing, and IBM can do them. It's not body shopping, but brain shopping."

Radjou said companies, particularly in the United States, need R&D assistance because of a shrinking talent pool. In a report published in March, he reported that, since the mid-1990s, engineering and physics Ph.D.s in the United States have declined by 15 percent and 22 percent respectively.

Third Brigade, an Ottawa startup vendor of server-based intrusion prevention systems needed Solaris skills in a hurry so it turned to an Ottawa neighbour, Macadamian Technologies, which works with several Indian and Romanian research houses. Macadamian found the right skills among its Indian partners and called on them to create a Solaris driver for Third Brigade at a price of $60,000.

One issue in all R&D outsourcing relationships is the status of intellectual property, which customers generally insist they retain. "There's a trust level," said Terry Cass, director of product development at Third Brigade. 

"We have personal relationships with these guys."Cass said good communication is also critical, especially in the requirements phase of the work. "We ran into that issue and resolved it by having them write the requirements which we review," he said. Cass noted another hurdle: adhering to a budget. Having underestimated some projects, he found the best way to avoid uncertainty is to agree to a fixed price with an R&D outsourcing partner.

Chambers said the single biggest stumbling block is the tendency of customers to wash their hands of projects once they turn them over to outsourcing partners. "People tend to look at outsourcing as turning over responsibility completely. That's when projects fail. We look at Patni as an extension of what we're doing. We look at them as our Mumbai development team," said Chambers.

Source : Wall Street Journal (July 18,2006)
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 INTERNATIONAL
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 I T    N E  W S 
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Hewlett-Packard nears Goal of Overtaking I.B.M.
SAN FRANCISCO— Continuing to grow at a pace that will enable it to usurp I.B.M.’s title as the world’s largest technology company, Hewlett-Packard reported quarterly earnings that exceeded analysts’ expectations. Revenue in its third quarter rose to $21.9 billion, up 5 percent or $1.1 billion from a year ago. At this rate of growth, most Hewlett-Packard executives think the company could take I.B.M.’s long-held title this year.

Hewlett-Packard also said it ended the quarter with $16 billion in cash. It had free cash flow, or cash from operations after capital expenditure, so far this year of $8.1 billion. Hewlett-Packard intends to use some of that cash for the $4.5 billion acquisition of Mercury Interactive, a business software company. H.P. is also hiring more sales representatives for its efforts to expand in services and commercial printing.
Source: http://www.nytimes.com/
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Accenture adds BPO capabilities with closing of Acquisition of Advantium and Meridian Informed Purchasing
Accenture (NYSE:ACN) has closed its previously announced acquisition of two companies that help clients prevent, detect and recover "lost profits" through analysis of procurement and payables data and processes, enhancing its finance and accounting business process outsourcing (BPO) capabilities.

The Advantium and Meridan transaction is Accenture's second business process outsourcing acquisition in less than six months. The Savista Corp. acquisition in April led to the formation of a new Accenture BPO Services unit providing bundled human resources, finance and accounting services to middle-market companies.

By adopting Advantium and Meridian's proprietary technology and processes, Accenture's enhanced profit recovery and analytics offering will help clients analyze their procurement and payables data to prevent, detect and recover the lost profits, or erroneous payments, which can result from human error, systems-integration issues, contract non-compliance and fraud.
Source: file:///C:/Documents%20and%20Settings/Noman%20Manzoor/Local%20Settings/Temporary%20Internet%20Files/OLK3/http;//www.forbes.com
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IBM Launches Major Expansion of its Storage Product Line
With tiered storage, new warranties and pricing options, IBM is trying to reduce the total cost of ownership of its storage systems.

Calling it the "single largest expansion of its storage portfolio," IBM on Tuesday rolled out new storage platforms and enhanced storage products.At the high-end, IBM introduced the IBM System Storage DS8000 Turbo models. 
The two new models, the DS8100 Turbo and DS8300 Turbo are based on IBM's Power 5+ processor and provide a performance improvement of up to 15% for transaction processing workload environments when compared to the previous DS8000 platform.

The enhancements include the use of 4-Giga bytes/second Fibre Channel Fiber Connection to reduce the number of network resources needed which will simplify management and reduce infrastructure costs, says Charlie Andrews, director of product marketing for IBM systems storage.

Additional features for the DS8000 Turbo systems include improved tiered storage options, functions to enable greater performance and efficiency for DB2 database applications running on IBM System P servers and a three-site business continuity system that reaches greater distances and requires less 
network bandwidth.

The first tiered-storage option uses Fibre Channel drives and is targeted at storing critical and frequently used data. The second tier uses lower-cost Fibre Channel ATA drives and is intended for less frequently used data.

The overall cost of the new system includes a 25% lower base system list price than previous comparable systems, Andrews says.In addition, an upgraded DS6000 storage system will provide for use of Fibre Channel ATA drives and tiered storage options. The system comes with a flexible Enterprise Choice option for warranty extensions, which allows customers to choose a 24x7 option in one-year increments for up to four years.

The DS8000 Turbo and enhanced DS6000 will both be available on Sept. 9, with starting prices of $213,400 and $102,600, respectively.

"We've been focusing very heavily on pure [total cost of ownership]," Andrews says. "That includes longer-term warranties and trying to create some acquisition price options available to drag down the cost."IBM also announced the next step in its relationship with Network Appliance Inc. to offer more network attached storage options.

IBM is offering System Storage N7600 and N7800, which include Fibre Channel and SATA disk drive support as well as more than 35 advanced software features, to provide platforms scalable to 504 terabytes, Andrews says.

New software called FlexShare will let administrators increase processing utilization without sacrificing the performance of critical business needs and better control how applications are prioritized. MetroCluster extends failover capabilities from primary to remote site and replicates data from the primary site to the remote site to ensure data is up-to-date and available.Andrews says IBM has also enhanced the Systems Storage DR550 V3.0 and DR550 Express platform to help support regulatory and corporate governance data retention requirements.
Source: http://www.informationweek.com/
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Investor Group Buys Stake In Gateway
WASHINGTON - An investor group led by Harbinger Capital Partners revealed in a regulatory filing  that it owns 10.2 percent of PC maker Gateway Inc.

The group is seeking to meet with management to discuss its ideas on how to "build value at Gateway," according to the filing with the U.S. Securities and Exchange Commission.

The group did not reveal what changes it intends to seek but said in a letter to the company's management that "there is nothing wrong with Gateway that cannot be fixed with what's right with Gateway."

Competition in the U.S. PC market continues to be intense as big computer sellers like Gateway, Dell and Hewlett-Packard grapple with aggressive pricing, low profit margins and the rise of rivals like Lenovo and Acer.

In addition the crossover of consumer electronics such as flat-screen TVs, plasma displays, digital cameras and camcorders and digital music players into the PC realm has squeezed profit margins for companies in the sector.

Source: http://www.crn.com/
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Oracle Acquires Sigma Dynamics
Oracle quietly announced Aug. 23 that it acquired the intellectual property assets of Sigma Dynamics, a company that develops predictive analytics technology. The terms of the deal were undisclosed.

Sigma Dynamics, based in San Mateo, Calif., has software that combines customer insight and business requirements in real time to make recommendations regarding customer interactions. Applications include real-time offer management, field service optimization, predictive call routing and fraud detection.

The company's applications are built using the same standards-based approach Oracle is touting with its Fusion line of products—Fusion Middleware and Fusion Applications, the latter a suite that's expected in 2008. Sigma Dynamics applications use a services-based architecture using J2EE (Java 2 Platform, Enterprise Edition), XML and Web services standards to collect data in real time using events, according to the company's Web site.

In an Aug. 23 letter to customers, Oracle said Sigma Dynamics' software integrates with CRM (customer relationship management), ERP (enterprise resource planning) and legacy systems to allow companies to continuously adapt business processes—a goal of the SOA (service-oriented architecture) movement under way in IT now.

The company's software is already integrated into Oracle's stack to some degree. Sigma Dynamics has been a Siebel OEM partner since January 2005—when Oracle acquired Siebel for $5.85 billion—and is the foundation for Siebel's Real Time Decisions for Call Center, the analytics piece of Oracle Siebel Analytics and Siebel CRM.

Despite a wealth of CRM functionality from its own and acquired applications suites, Oracle is standardizing on Siebel CRM (both on premises and on demand) as it moves forward with Fusion development.

Oracle plans to integrate Sigma Dynamics' software with its Fusion applications and sell it as a stand-alone offering as well. The predictive analytics software will also be the basis of "integral components" of Oracle Fusion Middleware, particularly in the area of business intelligence, according to the company's letter to customers.
Source: http://www.eweek.com/
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T R E N D S 
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China Mobile Subscribers to Near 300M by End of '06
The world’s largest mobile phone network operator could see its subscribers near 300 million by the end of this year if it maintains its current pace of growth, the company said Thursday in results for the first half of 2006.

China Mobile, which changed its name from China Mobile (Hong Kong), said it is adding 4.29 million new subscribers per month on average so far this year. The company boasted 278.3 million users at the end of July, and if it maintains its current growth rate in the last five months of this year, it will reach 299.7 million, while one or two strong months would push it over the 300 million level.

The company’s subscriptions already top all wireless users in the United States, which stand at an estimated 217.9 million according to the Cellular Telecommunications and Internet Association (CTIA), an industry organization. It also handily beats the 111.2 million mobile phone subscribers counted by the Telecom Regulatory Authority of India at the end of July.

To increase growth, China Mobile is concentrating on rural areas of the country, following the lead of government policies meant to bring further development to central and western areas of China that have been bypassed by much of the economic development of the past few decades. A lot of the country’s growth up to now has been concentrated in southern and coastal regions of the nation.The user penetration rate in such areas is about 11.5 percent, but China Mobile hopes to improve that figure by further building out its network and offering more low-cost handsets. Currently, the company offers eight low-cost handset models, the lowest priced at 300 renminbi (US$37.65), China Mobile said.

The company also intends to promote more customized handsets, in part to further lower costs that act as a barrier to gaining new subscribers. Customized handsets accounted for only 10 percent of its market in the first half of this year.

For its mainstream subscribers, China Mobile intends to promote mobile music by establishing a wireless music club, in addition to offering push mail, mobile search and location-based services.

The company’s revenue in the first six months of 2006 rose 20 percent to 136.98 billion renminbi, while its net profit increased 26 percent to 30.2 billion renminbi.

Its capital spending reached 31.9 billion renminbi as of June 30, less than half of the 83.3 billion renminbi it has budgeted for this year. The company said it will continue to carry out planning for the construction and operation of a third-generation (3G) network, but gave no hint of when it will start operations. China has not yet awarded 3G licenses to mobile phone companies.
Source: http://www.cio.com/
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As outsourcing matures, new trends emerge
Utility services and modular, or "component," offerings are trends that are emerging as the outsourcing industry reaches a new level of maturity, according to industry insiders gathering at Outsource World in New York this week.

Now that a wide variety of users and providers have attained hard-won experience in outsourcing, particularly in offshore contracts, services are moving to a new level of sophistication, said vendors and consultants here at the show.

Offshoring has moved well beyond the top multinational companies, which have been outsourcing globally for decades, according to Peter Bendor-Samuel, chief executive officer of outsourcing consultants the Everest Group. "We have moved well beyond the Global 1000," he said in a keynote address at the conference, which ended Wednesday. The trend will continue, other conference speakers agreed.

There are currently about 1 million IT and BPO (business process outsourcing) jobs being fulfilled on an offshore basis, but that could increase to 6 million or 8 million over the next 10 years, said Allen Weinberg, principal and North American leader of McKinsey & Co.'s offshoring practice.

Both service providers and users have become more sophisticated in how they manage offshore service relationships, conference panellists said. On the customer side, companies are beginning to move away from vast, multiyear contracts because they have found that such deals are extremely hard to manage.

"Among other things, at the end of a five-year contract you realize the world is not the same as when you started, technology has moved on and costs have come down," Bendor-Samuel said.

Costs have come down as providers in large countries such as India and China have bulked up and as more specialized providers in Eastern European countries and other locations have stepped in to take a slice of the outsourcing pie, he noted. As a result, companies are moving toward more well-defined, limited-scope deals.

One example of this trend is the move toward component, or modular, services, especially in the financial arena.

"Financial companies are increasingly coming to us to provide componentized services, for example, helping them get a particularly sophisticated product to market quickly," said Wendy Watson, Managing Director of State Street Investment Manager Solutions, a branch of State Street Corp.

Banks are under increasing pressure to get to market with the latest investment opportunities in, for example, derivatives which can be very complicated, she noted.

"Companies that may not have the necessary technology or expertise to bring out such a product come to a provider like us," Watson said. Bond company Pacific Investment Management Co. LLC, for example, is experiencing a doubling of its transactions, but the complexity of these transactions is increasing fourfold as its financial products get complicated, Watson said. This is where a provider of specialized or modular services can step in, she said.Specialty services offered for particular vertical markets are also becoming popular, other speakers at the conference noted.

"Cross-company outsourcing, companies coming together for scale, is a model that is increasingly being adopted," said Peter Watkins, head of U.S. financial services for Electronic Data Systems Corp. Watkins pointed to the insurance sector as an example of an industry where companies have found they can bring down the cost of, for example, administering policies, by outsourcing administration to providers who offer so-called utility services. Cost savings can decline from about US$30 per policy to less than $10 per policy,Watkins said.

Particular countries or regions can also offer specialized services or opportunities, according to Watkins and other speakers. "Best-shoring" is a trend among users who look outside of traditional outsourcing centers in locations such as India to find niche specialties or simply to find providers in the same time zone as their in-house workforce, he said.

Companies such as GE Corp., for example, have vast offshore operations in India but also have looked to near-shore, second-tier outsourcing providers in Mexico, he said.

Some industry insiders at the conference advised users to first pick the country or region that seems to offer a fit in terms of specialization or language and culture, and only then pick the specific provider. "I always say, pick the country first,” said Shailendra Palvia, managing director for the Center for Global Outsourcing.

Romanian service providers, for example, are offering expertise in a wide variety of languages, proximity to various European markets, and a skilled workforce honed by a university system that has a strong background in mathematics and engineering, said Costin Lianu, general director of export promotion for the Romanian Ministry of Economy and Commerce, in an interview on the sidelines of the conference.

At the conference exhibition, providers from major outsourcing destinations in India, China and the Philippines were represented, but there was also a strong showing of smaller companies from Eastern Europe, South America and other regions.
Source: http://www.infoworld.com/
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Philippines Call Centers Experiencing Staff Shortages
Grace Diaz, Department of Labor and Employment , employment division chief, predicted that the growth of the call center and business process outsourcing industry will not only raise demand for proficient English speakers, but also for those who can speak Spanish.

Some 19,000 workers are now employed in call centers and related industries in Cebu province in the Philippines, a senior labor official in Cebu City said.However, the Contact Center Association of the Philippines has reported a prolonged staff shortage in most call centers in the country with an aggregate need of some 500,000 agents in the next few years.

Grace Diaz, Department of Labor and Employment (DOLE) employment division chief, also predicted that the growth of the call center and business process outsourcing industry will not only raise demand for proficient English speakers, but also for those who can speak Spanish.

As this develops, the Commission on Higher Education (CHED) has raised the need to enhance lessons on the English language taught in colleges and universities to answer the needs of the growing contract center industry.

Dr. Carlene de la Pena of CHED proposed a training program to improve the skills of English language teachers in over 150 schools in Central Visayas in order to raise the quality of college and university graduates.

E-Telecare Global Solutions recruitment specialist Charles Labor pointed out, though, that improvements in the manner in which the English language is taught should begin in the elementary level so the students can enhance it better when they grow up.

Labor said the firm had tied up with the Cebu Provincial Government in training English language teachers in government elementary schools in Cebu. He said E-Telecare hopes to continue the said project.

De la Pena said that, so far, only two universities in Cebu have linked with certain call center companies to provide appropriate training programs for their students.
Source: http://www.crmbuyer.com/
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Yankee Group finds Metro Ethernet on the Horizon in Asia-Pacific
Yankee Group has revealed that Ethernet as a main protocol is growing progressively in Asia-Pacific. Asia-Pacific is the second largest market after Europe in terms of revenue, totaling $676.5 million. Most service providers in Asia-Pacific offer their Ethernet services over an MPLS-based IP VPN network.

According to a recently published Yankee Group Report, several factors are driving the boom of the Asia-Pacific wide-area Ethernet market including surging bandwidth requirements, the ability to provision bandwidth on-demand and a gradual network migration. Yankee Group predicts China will become the fastest developing market in wide-area Ethernet service revenue. Additionally, India is an important market for Ethernet growth.

This Yankee Group Report examines the Asia-Pacific market for Metro/WAN Ethernet services, identifies key market trends and growth opportunities, and analyzes how service providers differentiate themselves to win  enterprise business.
Source: http://www.yankeegroup.com/
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Iron Port outlines ambitious plans for Asia
E-mail security company Iron Port Systems has ambitious sales targets and hiring plans for the region in the next 16 months, according to the company's regional head. Joy Ghosh, IronPort's managing Director for the Asia-Pacific region, told ZDNet Asia that the company is targeting to achieve a 400-percent year-on-year increase in sales this year

But while Ironport expects a ramp up in sales, revenue contribution from the Asia-Pacific region, excluding Japan, to the company's overall figures is likely to remain constant at about 15 percent. Globally, IronPort is also experiencing rapid growth, said Ghosh.
Source: http://www.zdnetasia.com/
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Server Market Struggles for Growth in Q2, Says IDC
The second quarter is never a particularly good one for the server business and according to the latest statistics from IDC, server makers are having a hard time making up their revenues in volume. In the second quarter of 2006, worldwide server revenues across all types of servers rose by only six-tenths of a percent to $12.3bn, and server volumes decelerated to a mere 8.3% growth, with just over 1.8m units shipped.

The growth in server sales was not, however, even across all geographies, which is good news of a sort. Growth was a lot higher in the United States, where revenues rose by 3.6%, and in the Asia/Pacific region, where they were up by 2.6%, according to the analysts who track servers on a quarterly basis at IDC. But sales were weak in Europe, the Middle East, and Africa as well as in Japan, and this was more than enough to offset the gains in the U.S. and the rest of Asia.

IDC is forecasting that the server market will grow from $55bn in sales and 7m shipments in 2005 to $62bn in sales and 11.8m shipments is suspect.
Source: http://www.computerwire.com/
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Quality roadmap must, say IT Experts
A quality roadmap has to be charted out for information technology companies in Chandigarh so that they can get more projects and increase their software exports. These views were expressed by IT experts who had gathered in Chandigarh during a seminar organized by NASSCOM and the Chandigarh IT Club.

Over 40 persons participated in the seminar, where experts deputed by NASSCOM addressed the participants on quality control assessments. It is learnt that NASSCOM is organizing these seminars on quality processes in most of the Tier II developing IT hubs across the country.

The experts said only by making the companies process-driven the 100-odd IT companies could grow further. Director, Software Technology Park of India, said: “Quality has to mean business value. The foreign clientele needs quality in software processes which will help in getting you more projects. Rather than increasing the number of software companies, the emphasis has to be on improving the export potential of existing units.”
Source: http://www.nasscom.in/
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Engineering 'Next Frontier' of Outsourcing
Engineering jobs outsourced to India could create Dollars 40bn in annual revenues and 250,000 positions in the country by 2020 as demand for more sophisticated services grows, according to a report released. However, poor infrastructure and a shrinking talent pool are hurdles to potential expansion.

A report released by NASSCOM, India's IT industry trade group, and consultancy Booz Allen Hamilton, says engineering work such as designing and testing cars, consumer products and military equipment is the "nextfrontier" of outsourcing for India. The global offshoring engineering industry is expected to grow to Dollars 150bn-Dollars 225bn by 2020 from Dollars 10bn-Dollars 15bn last year, according to the report.

It estimates India could claim a 25 per cent market share of the industry by 2020 across a range of sectors. But challenges remain, particularly cultivating qualified engineers. India has nearly 1,400 engineering schools but just a handful provide world-class training. Only a fraction of graduates are qualified to work in specialized fields.
Source: http://www.nasscom.in/
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