CapGemini about to lose a €230 Million contract; Unstable Data Center the main reason!

By Tarry Singh at 16 November, 2009, 7:34 am


Unstable Data Center was the main cause for this possible reversal of the large contract. Before anyone jumps to conclusion I must say this at the defense of all large outsourcing parties that these are truly difficult times. We really need to hire quality staff very soon. Large outsourcing firms have double challenges when they fire or lay-off staff while still wanting to secure large deals with large customers. There is always an unfortunate delay between the large contracts and the staff hiring.

Attrition too is a big danger for such large firms as many talented staff are leaving and starting their own ventures or working as contractors. This is worse than the “generic clean up” which the firms have done to strengthen their cash positions. Many talented Indian firms are also going to challenge the european firms with quality of delivery and promise that generally has made firms to win local contracts on trust, locality and other benefits.

Danger from Indian Firms

Indian firms will take this opportunity to demonstrate their skills as the demand moves more towards a quality delivery. There is a whole lot of talk on governance but there is no specific focus on the HOW to manage and control such large transitions and eventually even these large companies from India may face those challenges. For the same reason the Indian firms are starting programs that will definitely affect the way

Get Technical Managers to run the show!

Infosys, recently started an iRace program where they started receiving complaints from many customers on the quality of service. Getting true technical leaders to head the tracks, program management and even governance tracks will help identify challenges and even propose quick and fast fixes. Looks naive but traditional managers will not be able to guide transitions the way it was done in the past. Customers are very quickly pissed these days.

Many employees were being given managerial responsibilities within three to four years of joining, reports Business Standard. However, from last month, all freshers joining the company will have to compulsorily stay focused on technology for the first six years of their career. After this, they will have to choose to either grow vertically as a techie or take up managerial responsibilities.

Infosys says that this new strategy, termed ‘iRace,’ aims to re-map the technology skills of its software professionals and offer them roles based on their current level of experience and technological know-how. It appears to have already had some adverse effect, for a section of employees in the junior and middle levels are understood to have resigned.

Read here to get a peek at Infosys’s iRace plan.

Cloud Computing: Fix your data center woes first, go to Cloud later

While Cloud Computing may be an answer to many challenges, it is definitely not the smartest thing to do when your traditional sourcing strategy is not working effectively. Many large and small hosting providers and MNSPs are going to face the same challenge in these trying times. I think we can also look at this from another perspective. While promise of the cloud is being made based on the traditional data centers, it is better to maybe build a truly Cloud-Ready data center before the mass-scale cloud festivities might be planned.

So there is lot to be done and many hosting providers will lose trust and contracts as the contracting economy keeps every firm on its toes.

Het rekencentrum is instabiel, zeggen bronnen betrokken bij het project. De overheidsdienst heeft te maken met storingen, zoals het uitvallen van de mailservers of internetverbinding. De DID eiste daarom een goed migratieplan van Capgemini om de migratie naar het nieuwe rekencentrum goed te laten verlopen. Toen de dienstverlener geen garantie kon bieden voor een goed verloop werd de migratie eerst uitgesteld, later afbesteld.

Related posts:

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  4. 2020: World-wide Data Center Crisis? We wrote an IEEE paper where I will be...
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  6. M&A Advisory: Brazilian Outsourcing firms begin stealing business from Indian players This could make the M&A activity for large European...
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Categories : 2009 | Cloud | Computing | DataCenter | Economy | Markets | Microsoft | Storage


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