EOH bullish on outsourcing growth

Software group EOH expects to maintain its growth streak in the current financial year as more firms outsource their technology business and want more security on their networks, says Business Report.

EOH said the local economic environment was showing signs of improvement, with customers undertaking IT initiatives beyond the maintenance and support of their existing IT investments.

The chief executive, Asher Bohbot, said growth would come from new initiatives such as software security, its partnership with global software maker CA, acquisitions and expansion of its services in the UK. Bohbot said he expected "significant" contribution from the partnership.

Despite the amount businesses spend on outsourcing increasing as a result of recession, a recent study suggests that European CFOs and their CIOs are frequently unable to quantify the return on investment (ROI) from outsourcing arrangements, which reflects badly on their ability to see where group expenditure is, writes Personal Computer World.

Of 263 CFOs and CIOs at companies across the Benelux region, France, Germany, the Nordic countries, Switzerland and the UK surveyed by IT outsourcing consultant Congnizant, less than half have tried to quantify the financial contribution of outsourcing to their bottom line.

Of those who have tried, just 19% are 'very confident' in their calculations.

Wipro, India's no. 3 outsourcing firm, said it has won a three-year outsourcing contract from All Nippon Airways (ANA), Japan's no.2 carrier, states Times of India. The company did not provide financial details of the contract.

ANA, with its fleet of 209 aircraft, is the first airline in the world to procure the Boeing 787 Dreamliner. It is embarking on transforming its legacy materials management system to support the new fleet, in line with the expansion of its business at Tokyo`s Haneda Airport with its upcoming fourth runway in 2010.

Wipro will deliver materials management system to ANA that will help proactively manage the parts life cycle.