Posts Tagged ‘information technology’
USA: AT&T is forecasting global economic recovery from next year
The 2009 AT&T Road to Growth Study is based on more than six dozen one-on-one interviews with IT executives employed with multinational companies in the U.S. and Europe. The U.S. portion of the study included CIOs and senior information technology executives from approximately four dozen multinational companies averaging $4.75 billion dollars revenue and operations in 28 countries. All U.S. executives interviewed for this study work for a U.S company or a U.S. subsidiary of a foreign company, and they have responsibility for making decisions about IT strategy and budget allocations.
2009 Road to Growth Study Key Findings:
Time horizon to achieve ROI narrowed by 50%: In today’s economic climate, U.S. companies have significantly shortened the time frame over which return on investment (ROI) is delivered.
More than half of U.S. IT executives interviewed stated they are under pressure to deliver a return on investment in half or less than half the time. As a result, two-thirds cited that the
change has affected their IT budgets, strategies and priorities. The study found that companies are less willing to invest in longer-term projects or projects where the return does not come quickly. One CIO stated that the added pressure has forced the company to focus on IT projects that give at least 100% ROI in 12 months; otherwise, the project(s) get dropped.
Cost cutting and improving productivity are top priorities: Cost cutting and increasing revenue remain the two primary business goals cited by U.S. companies. To achieve the goals, survive the recession and move towards growth, IT strategies are focused on:
Reducing operating costs: 87 percent cited “reducing operating costs” as “extremely or very important”;
Improve collaboration with customer and partners: 85 percent cited “improved collaboration with customers and partners” as “extremely or very important”;
Enhancing workforce performance and productivity: 83 percent cited “enhancing workforce performance” as “extremely or very important”.
“U.S. companies are under added pressure to deliver, and IT investments are more critical than ever before,” said Bill Archer, chief marketing officer, AT&T Business Solutions. “From the study, we expect U.S. companies to come out of the recession leaner and more agile. Technologies that cut cost, reduce redundancies and loss, and improve efficiencies top the priorities list.”
Short and long term strategies are similar: The Road to Growth study found that U.S. companies employ multiple strategies to address business goals, and do not distinguish between short-term and long-term strategies. It appears that U.S. companies are reducing the time period for their long-term forecasting until after the recession is over. The role IT plays in helping U.S. companies achieve long-term strategies is very similar to the role IT plays in supporting the companies’ short-term business strategies.
Business continuity & security solutions have the highest positive impact: IT investments and priorities will go towards lowering cost, reducing risks and improving productivity and efficiency. The study found that “business continuity and security solutions” will have the biggest positive impact on business growth as U.S. companies prepare for an economic turnaround. This is closely followed by “enterprise mobility solutions” and “Web delivery solutions”. Areas of IT investment that are expected to have a high to moderate impact on businesses are “unified communications services” and “hosted solutions.”
These findings are in line with AT&T’s annual study on business continuity and disaster recovery preparedness for U.S. businesses in the private sector, conducted in June this year. The dramatic rise in social networking and mobility trends is presenting new challenges to companies’ network security, disaster planning and business continuity programs. Businesses are stepping up their technology investment and efforts to meet these challenges, despite the economy. IT executives indicated in the Road to Growth study that they expect to make the biggest financial investments in business continuity and security solutions and hosted solutions in the next 9 months.
Disparate views in Europe: The European portion of the Road to Growth study found that in contrast to the U.S., European executives have a consensus view that the global economy will rebound between Q1 and Q4 2010. The majority of executives expect a recovery towards mid to the end of 2010. Additionally, 50% of the European executives stated that there is no change in the time period with which they achieve ROI.
The consensus between European and U.S. IT executives is that the two largest global economies – the United States and China – will emerge first from the current recession.
For more information on the AT&T Road to Growth Study including the complete research results, please visit www.att.com/roadtogrowth.
AT&T Study: U.S. Companies Preparing for Economic Recovery in First Half of 2010
Rwanda: Review of the e-Rwanda project aiming at becoming a regional hub for ICTs
Officials from the World Bank and Rwanda IT representatives Monday met in Kigali for a three-day conference with an aim of reviewing the progress of the project, evaluate the challenges encountered so far, and discuss the way forward for the next 18 months when the project ends.
Presiding over the opening sessions of the conference, Minister of Science and Technology in the President’s Office Romain Murenzi said the project is in line with the government’s vision of becoming a regional ICT hub. He emphasised Rwanda’s commitment to connect all corners of the country with the 2000km fibre optic that he said will be completed by early next year.
“As we move into a knowledge – based economy, bandwidth becomes very important for better service delivery,” he said. He hailed the input of eRwanda project to make ICT services a reality in the community.
The minister also emphasised the country’s initiative to prioritise sciences in education, which he said will boost the country’s achievement of its development goals, and noted that to date more than 100,000 laptops have been distributed to students in primary schools. The laptops are being distributed under the One Laptop Per Child programme.
The Deputy CEO of RDB/ IT, Nkubito Bakuramutsa explained that the review of eRwanda project will serve as an opportunity to redefine its objectives and match them with the current situation of the country’s vision for effectiveness.
“As you know, aid that is put in technologies is always leading to revenue generation and to self sustained economies,” he said as he explained the government’s current philosophy while sourcing support from various development partners.
World Bank has so far sunk in US$ 10 million in the project but Nkubito said they would need more support ‘to give it a happy ending,’ though he could not specifically state how much is needed for the remaining 18 months.
World Bank Acting Country Manager Erik M. Fernstrom appreciated the project’s achievements so far, but called for more emphasis and renewed commitment for the next year and a half to make it a success, thus improving on service delivery in all sectors of the country. e-Rwanda project was born in 2006, after consultations between President Paul Kagame and top World Bank officials.
Under this project Rwanda saw many of the ICT-based development activities that include introduction of telecentres in all the districts, computer training for community members, works on the introduction of the fibre optic to connect various regions and the Kalisimbi mast project that will ease broadcasting services in the country.
Nigeria: The Unity Forum opposes the sale of NITEL as a disservice to the nation
Unity Forum is an association of former ministers, politicians, and bureaucrats from the north, with a former permanent secretary, M.M. Abdu, as chairman. Other members of the group include Muritala Aliyu, formerly of the Power and Steel Ministry; Umaru Dembo, minister under General Abdulsalami Abubakar, Mr. Buba Galadima, and Hon. Tanko Abari.
In a statement signed by Chairman of the Unity Forum, Abdu, the group said the privatisation or sale of NITEL will expose the nation’s telecommunications to ridicule, as the services of the GSM operators cannot provide the needed social services which NITEL normally provides.
According to the group, the services of the GSM operators are “filled with excess charges and huge profits to the coffers of the operators. In spite of the huge profits garnered by these operators, there is less spending on infrastructural development and improvement in our country. “
“With this in mind, it is apt to advise the Federal Government not to privatise NITEL facilities. Rather, it should invest in building national optic fibre transmission grid that will serve as hub for all Mobile Phone Operators (MPO).”
“This will generate an annual income to the budget. The national grid is part of our national interest and security system. This cannot be operated by a private individual rather by a joint task force, representatives of all security agencies on the board.” the statement said.
The Unity Forum further said, “As applicable worldwide, telephone lines for the Military, National Emergency Agency, Civil Defence, Hospital Emergency and Fire Brigade etc is free for the above mentioned. Through this means there will be free internet to facilitate Information Technology Education which is the key to modern know how and education.”
The group accused GSM Operators of reckless planning, saying, “As at today, each mobile phone operator is digging holes with tiny optic fibres all over the country without planning and coordination which make any development effort more expensive and troublesome.
The statement further said, “In addition, it impacts negatively by cutting across farm lands and leaking of sensitive information that bothers on national interest through this means. Also, the mobile phone operators are hosting antennas, battling each other and spoiling the beautiful landscape of Nigerian cities and rural areas.”
The statement from the Unity Forum called coordination in the works of the GSM operators to the extent that communication antennas should also be hung by the successor of NITEL who will compel all GSM operators to use one mast in each location instead of having one for each.
“This will reduce the running cost and health hazard created by the emission from the mast, as well as the noise pollution created by the several masts close to each other. In the developed world, communication is the best earner of income to the treasury. These masts can be used for radio transmitters and cable network operators.”
Egypt ranks highest out of the world’s emerging offshoring destinations in the key area of costs
A study by the world renowned Outsourcing Unit at London School of Economics (LSE) reveals that Egypt ranks highest out of the world’s emerging offshoring destinations in the key area of costs.
With senior decision makers facing some tough decisions on reducing costs in the recession, the findings provide a key indicator of the most attractive global markets for outsourcing in the downturn.
Companies considering outsourcing IT or business processes overseas typically compare three major aspects of cost comprising labour, infrastructure and corporate taxes and incentives. With companies worldwide facing demands to reduce business costs, many will look at outsourcing certain elements of their business overseas.
The LSE study identifies Egypt as the most competitive and attractive destination overall on cost.
Dr Hazem Abdelazim, CEO at Egypt’s Information Technology Industry Development Agency (ITIDA), commented: “Egypt provides a highly skilled labour pool of workers and managers at a competitive cost, with over 300,000 graduates offering multilingual capabilities. It also offers excellent unit costs for telecom networks, Internet access and power and office rent.
Furthermore Egypt’s tax breaks, regulations and other incentives for local investment make it highly appealing to world class, international firms that wish to outsource.”
Dr Abdelazim added: “The Egyptian government offers strong support to international IT companies to help them establish clustered groupings in a range of new business parks called Smart Villages and Free Zones, both in Cairo and other key cities.
The LSE report shows that the relatively low cost base, good transportation links and government support are major factors attracting foreign IT investment to Egypt.”
Based on a perception analysis carried out by the LSE among 18 international consultants/analysts, Egypt was the most attractive country based on costs. The costs considered were a combination of start-up, infrastructure and labour costs.
The fact that most companies are based in one of the Smart Villages or the Free Zones indicates the Egyptian government’s strategy of using tax and investment incentives to prime the business establishment and illustrate the expansion is working.
LSE study shows Egypt leads global offshoring for costs
see also LSE Outsourcing Unit
China: Green Dam to be installed on all PCs to block access to certain sites
Blocking software: Customers use computers at an internet cafe in Shanghai. Picture: Bloomberg
The government, which has told international PC makers of the requirement but has yet to publicly announce it, says the effort is aimed at protecting young people from “harmful” content.
The software must either be preinstalled on the hard drive or enclosed on a compact disc. Chinese executives involved in the effort say the software is intended to block access to pornography.
But the Chinese government’s history of censoring a broad range of web content has raised concern among some foreign industry officials and the US government that the new effort could significantly increase the government’s control over Internet access in China. Industry executives also warn that the software could cause PCs in China to malfunction, and could make them more vulnerable to hacking.
The rule could force PC manufacturers to choose between refusing a government order in a major market or opening themselves to charges of abetting censorship. Several foreign companies have been criticised for accommodating the Chinese government’s censorship requirements in order to operate in the country.
“We are studying the new rule to assess its impact,” said Susan Stevenson, spokeswoman for the US Embassy in Beijing. “We would view any attempt to restrict the free flow of information with great concern and as incompatible with China’s aspirations to build a modern, information-based economy and society.”
The new software would link PCs with an updated database of banned sites and block access to those addresses, according to an official who tested the product for a government agency.
The software’s Chinese name is “Green Dam-Youth Escort”. The word “green” in Chinese is used to describe web-surfing free from pornography and other illicit content.
The software was developed by Jinhui Computer System Engineering, with input from Beijing Dazheng Human Language Technology Academy. Both companies have ties to China’s military and its security ministry. Jinhui says Green Dam operates similarly to software in other countries designed to let parents block access to web content inappropriate for children.
Foreign industry officials who have examined Green Dam say that personal information could be transmitted through the software and that it will be difficult for users to tell what exactly is being blocked.
Bryan Zhang, founder of Jinhui, the software developer, said his company plans to transmit new banned addresses to users’ PCs through an internet update system similar to that used by operating-system software and antivirus programs.
Mr Zhang said his company now compiles and maintains the list of blocked sites, which he says is currently limited to pornography sites. But the software makes it possible to restrict other sites.
The rule was outlined in a notice that was issued by China’s Ministry of Industry and Information Technology on May 19 but that hasn’t yet been reported. The notice, a copy of which was seen by The Wall Street Journal, says PC makers must ship PCs to be sold in China as of July 1 with the Green Dam software “preloaded”.
The notice says the software must either be preinstalled on the hard drive or enclosed on a compact disc. It says PC producers will be required to report to the government how many PCs they have shipped with the software.
It is unclear how the Chinese government might enforce the new rule. Although the notice doesn’t mention any punitive action, fear of consequences if PC makers don’t comply could be enough to ensure their compliance.
Sales of PCs in China neared 40 million units last year, second only to the US. Manufacturers have more than just market share at stake if they don’t comply: major PC companies also have invested in China, with factories and research facilities.
Chinese company Lenovo Group had the largest market share, with 26.7 per cent of units shipped in the first three months of 2009, while Hewlett-Packard had 13.7 per cent and Dell had 8.1 per cent, according to research firm IDC.
A spokeswoman for Hewlett-Packard, the world’s biggest PC vendor by shipments, said the company is “working with the government authorities and evaluating the best way to approach this. Obviously we will focus on delivering the best customer experience while ensuring that we meet necessary regulatory requirements.”
Dell declined to comment. Spokesmen for Acer and Lenovo said they were unaware of the requirement or didn’t respond to requests for comment on the software.
Foreign industry officials say companies have been given little time to properly test Green Dam. “The lack of transparency, the shortness of time for implementation, and the incredible scope of the requirement that is not matched anywhere around the world present tremendous challenges to the industry,” said an industry official who has discussed the plans with several major PC makers.
China already operates an extensive internet filtering system, commonly called the Great Firewall, which experts have called the most sophisticated of its kind. It blocks access to a range of content, from pornography to politically sensitive sites. Such sites have included those promoting Tibetan independence; the spiritual group Falun Gong; and in specific circumstances blocking access to foreign media.
But that system blocks content at the network level, and many users circumvent it through tools like proxy servers. The new plan, by extending filtering to individual PCs, could give the government a way to tighten its controls, say foreign industry officials who have examined the software.
“Nobody knows exactly what the scope is of the functionality of this software,” says a foreign industry official familiar with the plan. “I don’t think anyone would oppose the (government’s) stated objective” of blocking pornographic and violent content, “but people are really concerned about the way it’s being implemented,” he said.
Having one universal application that opens a link into every computer could also make those computers more vulnerable to cyber attacks. Moreover, Green Dam, which is designed to work with Microsoft’s Windows operating system, could also conflict with other applications, causing glitches or even system crashes, industry officials said.
China’s Ministry of Industry and Information Technology didn’t respond to requests for comment. Wu Weiwei, an official from the government’s China Software Testing Centre who oversaw testing of the software, said extensive tests of the software have shown no problems.
The government notice about the requirement says it is aimed at “constructing a green, healthy, and harmonious internet environment, and preventing harmful information on the internet from influencing and poisoning young people”.
The notice says the government has paid for the rights for all Chinese PC users to use the software for a year.
Mr Zhang, the Jinhui executive, the Green Dam software can be turned off if parents want to access blocked sites, and that the program can be uninstalled. Users who want to remove it need a password that they set when the software is installed, a precaution he said is aimed at preventing children from disabling the software.
Jinhui’s website said it has a long-term “strategic co-operative partnership” with a research institute of the Ministry of Public Security on image-recognition technology, as well as long-term “technical co-operation” with the People’s Liberation Army’s Information Engineering University.
Dazheng’s website says it co-operates with the Armoured Engineering Institute of the PLA, and that it helped the PLA in 2005 produce a system to intercept “confidential” documents.
Mr Zhang said Jinhui has only worked with the Ministry of Public Security on issues concerning pornography. Dazheng didn’t comment directly on the company’s ties with the government.

