4/25/2007

China's Top 10 Software Outsourcing Companies

Achievo, Appson, Augmentum, Bleum, BroadenGate, Cathay, FreeBorders, I.T. United, Neusoft, SoftStone IT

Editorial Summary

As ranked by outsourcing consultants Brown-Wilson. The consultant's fourth quarter 2006 report pegs China's software outsourcing revenue at 2.97 billion Yuan, up 17 percent on the fourth quarter in 2005 and up 6.8 percent on the third quarter in 2006.

Neusoft
Achievo
FreeBorders
BroadenGate
Augmentum
Cathay
SoftStone IT
Bleum
Appson
I.T. United

Objectiva Featured in Recent CIO Magazine Article: Outsourcing Lessons Learned in China

CARLSBAD, Calif., April 23 /PRNewswire/ -- Objectiva Software Solutions today announced its inclusion in a recent CIO Magazine article entitled Outsourcing Lessons Learned in China. This article is a follow-up article to an article which appeared in the September 30, 2005 issue of the publication entitled It's Cheaper in China. The article addresses how the initial push for offshore outsourcing is for cost savings, yet over time organizations realize that in order to make the engagement successful, they've got to focus on quality.

"This has been a three year process for us -- we started with a very US centric operation, with China back office resources and have now migrated to a 100% China solution, including requirements gathering for mission critical technical programs", explains Jay Leader, CIO, Nypro. Nypro emphasized building quality from the beginning of the product and relied on internal US staff like Jim Sugarman, Manager Web Applications, Nypro, teamed with Objectiva US resources to achieve critical technical advances in custom software development for the Nypro contract manufacturing operations.

"We have built long-term relationships with our clients because of our unique onshore/offshore business model," says Douglas Winter, Objectiva's CEO. Winter further says "It is the very foundation of Objectiva -- we began our business developing sophisticated enterprise-level software applications -- from discovery to delivery, our iterative life cycles and simultaneous QA ensure the delivery of high quality results to our clients."

About Nypro, Inc.:

Nypro, Inc. is a global precision molder, providing world-class services to a variety of markets needing precision plastics molding including electronics, telecommunications, packaging, healthcare, automotive, industrial, and contract manufacturing industries. Nypro operates 52 separate businesses in 17 countries that design plastic products, build molds used to mold plastics, and perform the plastics injection molding. For further information visit Nypro, Inc. at http://www.nypro.com/.

About Objectiva Software Solutions:

Objectiva Software Solutions, a division of Document Sciences Corporation is a leading provider of software outsourcing services. With offices in San Diego, San Francisco, Boston, Toronto, Frankfurt, Paris, Beijing, and Xi'an, Objectiva helps its clients develop customized enterprise software solutions (J2EE, COM+ and MS.NET), web-based and client-server applications and software for the wireless Internet. Objectiva's teams are run by US-based technical leaders with years of experience managing global software development efforts to take the burden off the client. Objectiva reduces the cost of software services without sacrificing quality, on-time delivery and time-to-market.

For further information, visit us at http://www.objectivasoftware.com/ or contact us at information@objectivasoftware.com.

Statements included herein that state the Company's or Management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements that involve known and unknown risks and uncertainties. The Company's actual results, performance or achievements could differ materially from those expressed as implied by such statements.

Objectiva Software Solutions

CONTACT: Beverly Waite of Objectiva Software, +1-760-602-1747,
bwaite@objectivasoftware.com

Web site: http://www.objectivasoftware.com/
http://www.nypro.com/
http://www.docscience.com/

Is China eating into India's software business share?

The world leader in hardware, China now gets 30 % of its IT business from software and the Chinese government is going full throttle to build on this. This has got the Indian tech companies a bit worried reports CNBC-TV.

After hardware, China is now fuelling its software industry. Though 70% of china's IT business still comes from hardware manufacturing, you cannot ignore the 40% year on year growth, which its software industry is witnessing. The Chinese government is pumping in billions of dollars annually to mobilise growth. Infact, it has set up Hi-tech and industrial parks focusing on software development.

Suzhou, on the outskirts of Shanghai is one such industrial park. This Region has 50 software companies, exporting software worth 12 billion dollars annually. The Local government here looks after administration and policy-making, with central government only being the guiding power. Provincial governments in China are eager to build relations with Indian software giants to help their regions grow faster.

“Suzhou municipal govt would like to invite Indian IT companies here. We would like to extend our support to them to set up their base here,” says Zhou Wie Qiang, VC Mayor, Suzhou

English being a handicap, many local companies here are currently developing software for Japanese companies and also catering to domestic demand. Apart from encouraging their employees to learn Japanese, companies are recruiting fresh English speaking talent. Local companies here strongly believe that setting up BPOs is the next natural progression for them and they would like to learn from the India story.

We want to learn about outsourcing from India. But instead of them setting up a base in China, we would want to establish JVs and business relations with Indian companies” feels Xie Jin Ming, Director, SDS-IT Corp

China has over 15000 software companies and it is now aiming to build its outsourcing skills and invest significantly in research and development. This has led the govt to set up incubators to help small and new software companies

Companies that operate in incubators are judged on their performance and the best ones are given financial support, like reduced rentals, subsidies and at times the govt may provide with some capital. Indian software companies are growing at scorching 40%, however the hardware market lags behind at about 25-30%.

China on the other hand is sharpening its skills to corner hardware, software and process outsourcing as well. India will need to increase R&D spends, and has favourable policies to build bilateral relation with China to tame the emerging software giant.

Augmentum at Forefront of China Offshoring Trend; Duke University Report Confirms China's Competitive Ability to Innovate

Duke University Study Reports China Well-Positioned for Future Science and Technology

SHANGHAI, China and FOSTER CITY, Calif., April 23 /Xinhua-PRNewswire/ -- According to the report recently released in National Academy of Sciences Magazine, based on a Duke University study (http://www.issues.org/23.3/wadhwa.html), China is unique in its rates of graduating engineering and technology Ph.D.s and its ability to perform critical research and development.

Augmentum, a leading provider of value-added software development services, headquartered in Shanghai, China and Foster City, California with additional facilities in Beijing, is living proof of the China success story described in this study. With the ability to select the best and brightest candidates from a huge Chinese talent pool, Augmentum delivers superior business value to enterprise customers. Augmentum's Fortune 500 and rapidly growing startup clients experience higher quality and faster delivery at the lowest realized total costs. Augmentum offers the entire scope of outsourced software services, ranging from full cycle software development and business application development, to complex system integration and solution implementation. Augmentum is committed to becoming the best software services provider in the world. Fortune 500 companies, including Intel, Motorola, and Microsoft, have relied on Augmentum to develop and test their complex software. Augmentum was recently acknowledged for outsourcing leadership in the Booz Allen Hamilton book, Outsourcing Thought Leaders: Managing Business without Borders (http://www.strategy-business.com/oasreader).

"Given the wealth of talented programmers in China, Augmentum has created a Silicon Valley start-up culture that allows employees to embrace projects requiring technical know-how coupled with creativity and innovation," said Frank Yu, President and COO of Augmentum. "Throughout 2006, more than 10,000 people applied for the 500 positions at Augmentum, giving us the chance to choose the most innovative talents for our worldwide developer team. Built on differentiating factors including managerial style, problem-solving skills, customer focus, and an extremely disciplined culture and development process, Augmentum's success is evident in the company's rapid growth and world class customer list."

Augmentum is a sponsor of the Gartner Symposium/ITxpo: Emerging Trends, in San Francisco, CA, April 23-25, located in booth #421.

About Augmentum

Augmentum provides Outsourcing Leadership for Innovation. Augmentum engineers augment their clients' teams as an extension, utilizing leading edge development tools and technologies, as well as proven processes, to create commercial-quality software. The management team has decades of collective experience outsourcing commercial software and solutions. Augmentum, Inc. is headquartered in Shanghai and Beijing in China and in Foster City, California. The company has grown to 800 people in China out of 850 worldwide in three years since its founding and won the inaugural Red Herring Asia Top 100 award in 2005, and the Risk Management award at the China Outsourcing Summit in 2006. For more information, please visit http://www.augmentum.com/ or call (650) 578-9221 x104.

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the IT industry's largest and most strategic conference, providing business leaders with a look at the future of IT. For more than 10,000 IT professionals from the world's leading enterprises, Gartner's annual Symposium/ITxpo events are key components of their annual planning efforts. Attendees rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use technology to address business challenges and improve operational efficiency. For more information, please visit http://www.gartner.com/us/symposiumwest.com

Augmentum

CONTACT: Melisa GlasbergTerpin of Communications Group 1-310-821-6100,
Ext. 116, melisa@terpin.com, for Augmentum

Web site: http://www.augmentum.com/
http://www.issues.org/23.3/wadhwa.html
http://www.strategy-business.com/oasreader
http://www.gartner.com/us/symposiumwest.com

Innovative Outsourcing Model Saves Company Millions

Manufacturing process outsourcing brings outsourcing in-house.

By Jim Holland, President and CEO, The Holland Group

April 25, 2007 -- It is no secret that the manufacturing industry is constantly looking for innovative ways to cut costs. Pressures from OEM's to their suppliers are constant. This struggle to save money is taking a toll on manufacturing throughout the country.

While manufacturers continue to search for an answer, one global manufacturer found an innovative concept. It provided them not only substantial cost savings, but solved their concern with co-employment issues while improving their processes. They took a concept, called Manufacturing Process Outsourcing (MPO), and spread it throughout seven manufacturing facilities in the U.S. Their ability to save money, maintain quality, avoid co-employment issues and utilize focused resources was obtained by outsourcing inside their facilities.

Manufacturing Process Outsourcing may surprise many who are familiar with the term, 'outsourcing.' The concept is quite different. While most would assume outsourcing company functions involve an outside vendor operating in a different location, the intent of MPO is to 'run a business within a business.' It involves outsourcing manufacturing functions to a vendor who actually operates inside the company's facility, while guaranteeing the quality and cost of output." What makes this manufacturer's success story so unique is that not only was MPO and the production of their product under their own roofs, but MPO was flexible enough to adapt to each facility's unique needs.

Implementation In An Entire Facility

In one facility, the manufacturer had successfully produced a prototype product and was ready to begin full production. Since the assembly production was self-contained in a single facility, the company outsourced the entire process to the MPO provider. From the planning and ordering of materials to shipment of the finished product, the process was in the hands of the outsourced provider. This included labor, supervision, management and technical support. The billing was based on shipments instead of an hourly bill rate, allowing the outsourced provider to be efficiency and quality driven.

Multiple Facilities On A Campus With Multiple Vendors

Another way MPO was incorporated involved multiple plants in one location. Looking to avoid co-employment issues, cut costs and reduce the number of vendors, one MPO provider manufactured and managed product in both plants. While the two plants' operations varied greatly from different shifts to size of workforce, MPO was able to leverage shared management and resources while maintaining quality.

Ensured Transfer Of Knowledge To Outsourced Employees

At another facility, the manufacturer selected a very large plant with over 2000 employees and designated approximately 15 processes involving over 200 employees for MPO. However, the manufacturer was concerned about loss of production skills and tribal knowledge if the processes were outsourced. To eliminate this concern the MPO provider developed standardized and certified work instructions which were implemented and monitored by MPO trainers. The manufacturer and MPO provider instituted periodic audits of training records to ensure all employees received the same quality throughout.

With change at this magnitude comes obvious hesitation and concern. Will the manufacturer's product maintain its high quality standards? What influences a manufacturer's willingness to allow another company to manage and produce its product?

After evaluating the risks associated with outsourcing versus the rewards MPO provided, the decision for this manufacturer became clear. Not only did MPO allow total visibility by being in-house, but it guaranteed product standards while improving processes. The decision allowed them increased focus on core competencies so efforts could be spent on growing the company.

The results that that manufacturing process outsourcing brought to this manufacturer were as follows:

* Savings of 40% in labor costs

* An In-house outsourcing model

* Continuous process improvements

* Avoidance of co-employment issues

* Maintained quality of output

* Flexibility of implementation in several locations

* The ability to focus on core competencies