Capgemini Moves to Expand in Brazil

By MAX COLCHESTER And RUTH BENDER

PARIS—Capgemini SA said Thursday it has reached an agreement to buy a majority stake in Brazilian information-technology business CPM Braxis, as the French IT consultancy looks to expand its presence in emerging markets.

Capgemini said in a statement that it will spend €233 million ($298.3 million) to acquire a 55% stake in CPM Braxis. The Paris-based company has an option to buy the remaining 45% of CPM Braxis between three and five years after the deal is completed.

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The End of Outsourcing (As We Know It)

As Google and Amazon.com become preeminent sellers of tech services, companies from Accenture to Microsoft and Xerox must adapt to cloud computing

By Arjun Sethi and Olivier Aries

In the next five years outsourcing as we know it will disappear. The legion of Indian service providers will be sidelined or absorbed. U.S. and European companies that pioneered this corner of the high tech industry will suffer similar fates if they don’t wake up. Who will emerge as the new leaders? Google (GOOG) and Amazon.com (AMZN), brands that we associate with search and retail, will become better known for outsourcing  Ludicrous?

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Nearshore Staff Augmentation – Low Churn is Key

When a good employee resigns they take with them everything the company has invested in training.  Not just subject mater training but also business processes and procedures training that is unique to that company.  The company may be able to hire someone with similar or even better technical skills but the business knowledge that took them months or years to learn is gone forever.  Like your in-house software development staff, loosing team members from a nearshore remote staff can be just as painful.  Remote nearshore staff augmentation teams, when used effectively, collaborate with onshore team members as one team.  They may be supporting all phases of life cycle development and since they are in the same work day time zone, they can contribute their expertise in real time as thought contributors, not just task masters.   

The way nearshore teams contribute to initiatives makes it just as critically important to maintain a low churn rate as it is with your in house staff.  This is much different than working with distant shore teams who work based on well defined and documented requirements using CMMI type methodologies.   Nearshore software development teams can easily participate in Agile development or work with your Scrum master as just another team member.  They can also easily be directed by onsite project managers.

Nearshore team members can easily participate on scheduled or impromptu meetings, formal or informal planning meetings, technical approach discussions, and joint problem solving discussions.    For example, your Oracle DBA in Brazil can lend his knowledge and experience in a 10 am meeting held by your Oracle staff in Atlanta discussing performance issues that came up last night.  Communication is easy using tools like Skype or even a low cost Magic Jack VoIP device for telephone communication.  This creates a peer relationship and team bonding occurs in ways that seldom happen in distant shore engagements. 

Senior members of your nearshore software development team, if used in a collaborative way, will become part of your IT thought leadership and will be technology problem solvers that are hard to replace.

By Henry Johns
President Chief Consultant
Vision TRE, Inc.
www.visiontre.com

Recommended reading; 

LOVE’EM or LOSE’EM Getting Good People to Stay
by Beverly Kaye and Sharon Jordan-Evans

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Nearshore Outsourcing: The Right Solution at the Right Time for Your IT Organization?

Event Date: Thursday, Thursday, September 30, 2010

Sponsored by: Nearshore Americas

  • Event Time: 8:30am – 10:30 am
  • Location: The Peninsula Chicago, 108 East Superior Street Chicago, IL 60611

Overview:
In the last few years, nearshore outsourcing has become a red hot industry with countries like Brazil, Mexico, Chile and Argentina emerging as attractive destinations for IT services delivery. As a result, forward-looking IT leaders have seized the value of similar time zones and physical proximity to accelerate outsourced functions like software development, Q/A testing and remote infrastructure management. 

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Global Outsourcing Forum – NYC Oct. 13-14

Global Sourcing Forum (GSF) 

Marriott Marquis Times Square
New York City

Global Outsourcing Forum – NYC Oct. 13-14 caters to the needs of senior business and sourcing executives charged with leading their organizations through change during an economic period that has undergone significant structural shifts.

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Analysis: Outsourcing reversed as Brazil companies target U.S.

By Nick Zieminski

NEW YORK | Wed Aug 11, 2010 9:58am EDT

NEW YORK (Reuters) – Emerging economies’ rapid recovery from the global recession is leading to some curious role reversals.

Rather than looking to the rich world as just a place to sell their wares, developing-world multinationals are turning to their wealthy neighbors to recruit talent, take advantage of strong currencies to make acquisitions, and even find some lower-cost production in places that once were the bosses of global capitalism.

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Brazil Is One Of The Fastest Growing Global IT Markets

Published on November 06, 2009

by Press Office

(Companiesandmarkets.com and OfficialWire)

LONDON, ENGLAND

In H109, the economic slowdown had a significant impact on Brazilian market PC sales, which were down by around 14%, according to local industry figures. However, Brazil’s IT spending is expected to remain in borderline positive territory in 2009 and to grow at a compound annual growth rate (CAGR) of 14% over the forecast period. This makes Brazil one of the fastest growing global IT markets. BMI expects spending to pick up in Q308 with the possibility of a strong fourth quarter as a seasonal upturn is reinforced by business and government procurements delayed from H109.
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Latin American, Caribbean countries discuss creation of new bloc

Cancun, Mexico – Mexican President Felipe Calderon on Monday opened a two-day summit of Latin American and Caribbean nations that is expected to explore the creation of a new regional bloc. In the presence of 24 country leaders at the Grand Velas Hotel on the Mayan Riviera, some 60 kilometres south of Mexican resort city Cancun, Calderon called for the “union of Latin American and Caribbean nations for development, freedom, justice and democracy.”

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Peru’s IT Spending Is Forecast To Remain Positive In 2010 With A CAGR Of 13% To 2014

Peru’s IT spending is forecast to remain in positive territory in 2010, with expectations of Peru’s continued economic growth helping to sustain IT investment, despite some negative economic trends. Peru has one of the smaller IT markets in the Latin American region, but spending is projected to grow at a compound annual growth rate (CAGR) of 13% over the 2010-2014 period, making it one of the highest growth global IT markets.

Total spending on IT products and services is forecast to pass US$1.9bn by 2014. We project high single-digit growth for the Peruvian IT market in 2010, helping to counteract a continued impact from the 2009 economic downturn.

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Colombian IT Market Projected To Grow At A Compound Annual Growth Rate (CAGR) Of 12% Over 2010-2014

The Colombian IT market is one of the least developed in the Latin America region, but is projected to grow at a compound annual growth rate (CAGR) of 12% over the 2010-2014 period. The market continued to grow in 2009, although there was a sharp deceleration compared with the previous year. The consumer-driven economic boom of recent years may have come to an end, but government programmes and growing computer affordability will support spending on IT products and services.

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