CenterBeam
The New York Times, 11/29/04: Canada, the Closer Country for Outsourcing Work
By IAN AUSTEN
…
While the debate over software and call center outsourcing from the United States focuses mainly on India, the Philippines, Singapore and other distant points, its significant growth in Canada has attracted relatively little attention. Canada lags India in the number of people working in outsourcing businesses. But its stability, proximity and cultural similarity to the United States tend to attract higher-value, more sophisticated work.
Canada is holding its own against India in high-end work. "We do not have the same volume of people as India," said Robert Scott, a partner at PricewaterhouseCoopers Canada, based in Toronto, and the co-author of a study on outsourcing. "But Canada is generally competing at the leading edge of technology where close interaction between business users and developers is critical."
The lack of cultural differences between the countries has helped Canada also draw the call center part of the business.
…
Proximity and cultural overlap clearly help Canada in this business. "We can honestly talk about last night's ballgame because we watched it," Mr. Scott said. Because Canadians are more aware of American fashion trends than Indians, Mr. Best said Canada is a better choice for serving customers of mail-order fashion retailers in the United States.
Mr. Graham said that in contrast to some of Keane's experiences with its Indian operations, few customers from the United States appear to have misgivings about moving work to Canada. "They tend to view Canada as the next state," he said.
Mr. Best added: "Companies are willing to pay a premium for a destination that is close to home. The customer on the end of the phone will be able to relate much better to a representative in Canada than one in the Philippines."
…
But Kevin G. Bulmer, who designed the New Brunswick campaign in its early days, said that it was important to look at the alternatives. Unlike most resource-based industries, call centers generally provide steady, year-round employment. And cubicles, whatever their shortcomings, offered a far more pleasant environment than many of the province's traditional employers.
"Do people in call centers work in hip waders, stand in cold water all day like they do on the fish-packing line?" asked Mr. Bulmer, who is now the senior investment officer at the Atlantic Canada Opportunities Agency, an investment promotion arm of the Canadian government.
…
Lower costs were also a factor - even considering the 26 percent rise in the Canadian dollar since January 2002. Stephen E. Lund, president of Nova Scotia Business, a government-financed agency, estimates a skilled software worker who can command $80,000 to $90,000 a year in Boston is paid the equivalent of $60,000 to $70,000 a year in Halifax. Costs for a typical 110-employee software development group in Halifax, he said, are about 40 percent to 50 percent lower than Boston or New York.
E.D.S. and CenterBeam of San Jose, Calif., are among the other software companies with Canadian operations.
…
[more]
IT Automation
C|net, 11/30/04: HP rejiggers utility computing line
By Martin LaMonica
Hewlett-Packard next year will take a fresh approach to its utility computing initiative with a product designed to reduce the cost of running corporate computing systems.
The company introduced on Monday its HP OpenView Automation Manager, a network management application that combines the tools gained from acquisitions of smaller firms Consera Software and Novadigm earlier this year. The product, which will start at about $1,000 per server, will be generally available in the first quarter of next year, HP executives said.
[more]
Network
C|net, 11/30/04: Cisco updates Ethernet switches
By Marguerite Reardon
Cisco Systems has made several improvements to its Ethernet switches to protect businesses from security threats as well as help them run Internet Protocol telephony more reliably.
On Tuesday, the company announced a slew of enhancements to its Catalyst line of switches, including new Supervisor Engines for its Catalyst 6500 and 4500 switches, and several new capabilities across its product line.
[more]
8:30:19 AM 
|
