Archive for August, 2013

European outsourcing plummets

August 31st, 2013

The total amount spent on outsourcing by businesses in the EMEA region in the second quarter of 2013 was 23% lower than in the same period the year before, according to the Information Services Group (ISG). The total €1.6bn spent was also 16% lower than the previous quarter.

ISG monitors all IT and business process outsourcing contracts worth over €4m.

In the first six months of 2013, UK organisations spent 25% less on outsourcing compared to the first six months of last year at €1.3bn. Meanwhile, Germany saw a 58% fall in the same timeframe with €500m in contract value.

SAP co-CEO Jim Hagemann Snabe to step down

August 23rd, 2013

Jim Hagemann Snabe is stepping down as co-CEO of SAP, to spend more time with his family. Subject to shareholders’ approval, his decision could mean that co-CEO Bill McDermott will lead the company as its sole chief executive from May 2014.

The changes at the top could see a greater focus on sales at SAP. In the last quarter, the enterprise software company reported that total profit after tax for the quarter was up 10% to €724n, compared with €661m for the second quarter last year. The company also recently raised its basic annual maintenance fee to 19% while keeping its premium maintenance fees at 22%.

BYOD; Balancing the costs, risks and benefits of bring your own device

August 15th, 2013

There is a trend among employees to want to use their personal choice of mobile device in the fulfilment of their work commitments.

While this appears to bring many benefits for the employee to select their preferred device or devices and, on the face of it, reduces upfront costs for their employer, it does introduce significant on-going costs and risks for the organisation.

However, with many appealing mobile consumer devices being offered, the trend is likely to increase, so organisations need to work out suitable strategies and policies to manage this complex and hybrid situation in the best interests of both themselves and their employees.

IBM misses revenue expectations again

August 7th, 2013

IBM has reported second quarter revenues of $24.9bn, missing market estimates of $25.39bn but earning per share of $3.91, which is 14 cents better than analysts forecast. Profit was also down at $3.23bn, a drop of 17% compared with the same period in 2012.

Last quarter, IBM’s revenues and profit fell short of analysts’ forecasts for the first time in eight years. IBM raised its full-year earnings per share by 20 cents to at least $16.90. This excludes the $1bn in charges for its “workforce rebalancing”, which includes layoffs.

In the first half of the year, software revenue was up 4%; services revenue down 4%; systems and technology revenue down 12%; business analytics revenue up 11%; and cloud revenue was up 70%.

As a result of the poor first quarter, the company cut jobs and focused on data analysis and cloud computing in an effort to stabilise its business. More than 3,300 jobs were lost. IBM expects the savings in wages to start taking effect in the third quarter.

Although many technology companies have been hit by the global decline in PC sales, IBM insulated itself from some of the downturn by selling its PC division to Lenovo for $1.75bn in 2005.