Effect of Globalization on IT Service Providers in Europe

Effect of Globalization on IT Service Providers in Europe Opportunities and challenges presented by Globalization: IT Service providers in Continental Europe EXECUTIVE SUMMARY Enterprises within Europe are increasingly trying to seek the advantages of global sourcing. Unlike enterprises in U.S. or U.K., continental European countries have historically been reluctant to engage with offshore providers. The reasons were far stretched, ranging from political sensitivity, labor laws, cultural compatibility and language requirements. Globalization, however, is creating new avenues that European companies can not ignore. A recent report by Gartner shows the potential IT Offshoring market to be in the range of about $ 200 to 240 Billion. The market is expected to register double digit growth for years to come. The current offshore spending by firms amounts to just $17 Billion worldwide. This clearly shows a big gap, a huge market potential which is yet to be exploited. The huge demand has also led to emergence and growth of several new players in the field of IT Outsourcing/ Offshoring services, this is leading to ever increasing competition in the marketplace. In order to cope up with this increased competition and to provide better services, these service providers are increasingly adopting Global delivery models. By selecting an advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In Europe, nearshore models still dominate the market. But these models are continuously being updated, with more and more providers setting up Offshore Development Centers in locations like India. A framework for building an optimal combination of onsite, nearshore, and offshore delivery capabilities is provided by Capgeminis Rightshore ® model. A recent Gartner report has suggested that, the current US economic slowdown is expected to lead buyers of IT services to consider increasing the percentage of their labor in offshore locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers. INTRODUCTION: EUROPEAN IT MARKET The European market remains a highly complex and competitive market with a large number of providers. Mergers and acquisitions will continue but will be balanced by new market entrants Outsourcing adoption in Europe is increasing for both infrastructure and applications; the widespread lack of well defined sourcing strategies among buyers and the realities of ever-changing business requirements will generate frequent deal negotiations and renegotiations Global delivery and utility services are irreversible trends evolving at different speeds among various European countries. The European multi country, multi language/culture composition increases the evolutionary complexity of these trends Selective outsourcing with multiple providers will remain the preferred model of engagement for European buyers. Governance and end-to-end integration/management of different providers/solutions are the most challenging aspects of it ITO market maturity varies: UK is the most matured IT market in Europe. The other European markets are maturing at different speeds. An acceleration in ITO adoption is now apparent in countries such as France and Germany A focus on achieving service delivery excellence and the best value/quality balance is increasingly driving European organizations (especially those beyond the first generation deal) to consider selecting multiple providers for an outsourcing contract. For example, in the IT Telecom sector, the most common division is by service tower, with customers opting to choose different providers for their network, desktop, data center and application competencies. At the moment, however, providers tend to join forces in an opportunistic manner, as a response to customer demands. This is the cause behind the ever-changing composition of the providers teams; as a consequence, consolidating best practices to manage IT service spin offs between different providers in an effort to guarantee end-to-end service delivery excellence remains challenging. As the number of providers engaged is set to increase, this challenge is likely to intensify. It will also be driven by other market characteristics, which include a persistent tactical use of outsourcing by European customers, insufficient process maturity, and lack of clarity in the definition of roles and responsibilities. As we look at global delivery, it is fair to say that there are two major misconceptions that still exist among the European market: 1) Global delivery is often considered as a synonym of offshore, and 2) IT services delivered through global delivery capabilities are application services. In reality, in the past few years, the European market has witnessed a considerable expansion in terms of both geographical location options (in areas such as Eastern Europe or North Africa, for example) and portfolio of services offered (now including, for example, help desk and remote infrastructure management services). Global delivery and offshore, however, remain the key deal characteristics that need to be treated with extra care in many European geographies, and as a consequence, many deals remain confidential. Traditional providers investment will be directed toward enhancing existing capabilities (especially near shore in Eastern Europe) and ensuring process solidity. Offshore providers inv estment on the other side will be centered on creating front-end capabilities with a focus on specific country and vertical-oriented competencies. While these global delivery models mature and are refined/ optimized, customers satisfaction will remain a challenge. KEY TRENDS SHAPING IT OUTSOURCING MARKET IN EUROPE TRENDS CHARACTERISTICS Selective Outsourcing With Multiple Providers * Embraced by majority of European companies * Objectives: IT excellence and cost optimization * Integration and governance challenges Global Sourcing and Global Delivery Models * Near shore proximity key for European market * Expanding portfolio of outsourcing services * Key area of investment for providers and buyers IT Utility * Industrialization is accelerating * Convergence of IT utility and global delivery * Key drivers: flexibility, efficiency, optimized cost, speed Aggressive ESP Competitive Landscape * National, global and offshore ESPs converging * Mergers, acquisitions and divestitures to continue * Providers are implementing new business models * New offshore market entrants Application Outsourcing to Grow * Drivers: portfolio rationalization, legacy modernization * Global delivery will gain acceptance * Multitude of providers competing Source: Gartner The U.K., Netherlands, Sweden and Finland are examples of countries more attracted by the global delivery model. However, in the meantime, the impact of global competition has started to drive countries such as Germany and France to consider global delivery as a viable option to be considered strategically, rather than when all other options have been exhausted. Despite a slower gestation and the fact that a complete infrastructure utility (IU) offering has not yet been developed, the IU model is continuing to attract new offerings and/or new providers. In the meantime, European customers, attracted by the idea of being able to access IT services in a flexible way, remain cautious as they expect further clarity on issues such as unit definition, pricing mechanisms, integration to existing systems, and security portability In the near future, we expect that the IU for ERP platforms will remain the most common battleground for providers; other providers are expected to instead mask their IU offering behind a package that includes product and support services. The concept of software as a service (SaaS) or ready-to-use applications will continue to generate lot of interest. Expectations for a solid delivery and specific functionalities will drive providers to specialize their offerings. Finally, gains in terms of process efficiency will be seen as crucial to deliver enhanced competitiveness, flexibility, agility and cost optimization. GLOBAL TRENDS: IT OUTSOURCING and OFFSHORING MARKET IT Outsourcing market is showing an average growth of 9% p.a. IT Outsourcing Worldwide forecast (Million $) Source : Gartner Dataquest In terms of volume, North America continues to be the leader in IT outsourcing. Latin America and APAC have shown good growth Europe has fast emerged as a big IT outsourcer Global offshore spending is continuing to register double digit growth. Worldwide Offshore IT Services Spending by Importing Region (million $) Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast In terms of volume, the North America continues to be the leader in IT offshoring. Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy Global offshore spending is projected to increase to 29400 $ Million in 2010 The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited. IT and BPO market Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008 Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *) According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency Different Sourcing Models In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy Captive Offshoring: Sourcing from an affiliated firm located abroad Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad REGIONAL DYNAMICS ACROSS EUROPE The following section will describe the regional ITO trends and local dynamics across different European locations. UK and IRELAND 2005: â‚ ¬17.2B 2010: â‚ ¬25.7B 2005-2010 CAGR: 8.3% ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP Key trends: †¢ Most mature market in Europe with wider number of mega deals (public sector) †¢ Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared services †¢ More selective sourcing and global delivery †¢ Areas such as Scotland and Ireland feeling pressure of Indian and Eastern European operations †¢ Wide potential for application engagements to mature from project engagements into outsourcing based engagements Despite being the largest and most mature market in Europe, the U.K. remains also one of the fast-growing ones. Here organizations seem to have moved away from the equation of outsourcing = cost reduction. While cost remains a key component, other objectives seem more important, such as improving IT service delivery, gaining specific skills, especially for application outsourcing deals, and becoming a more flexible organization. (See Appendix F) Inhibitions remain related to a general lack of trust in the ability to join forces with the providers to manage security, control over IT operations and IP. The U.K. market is characterized by a large number of mega deals, especially in the public sector. These outsourcing deals often include initiatives that have classically been carried out through project engagements and now are increasingly being performed in the initial phases of an IT outsourcing or BPO deal. This change reflects the growing desire of customers for a tighter link between investment and results (for which the outsourcer is responsible during the duration of the contract) and the important shift in role for the internal IT department. Rather than focusing on assembling and managing all of the necessary skills and capabilities to meet a certain objective, IT organizations, in this scenario, are responsible for coordinating the objectives of the Business Unit and the internal and external providers engaged to support them. Often infrastructure outsourcing is at the core of these complex relationships. At the same time, the U.K. is also the largest market in terms of adoption of IT services delivered through a network of global delivery capabilities (which include nearshore and offshore locations). From this point of view, areas that used to be considered as low cost for outsourcing operations (Scotland and Ireland) continue to feel the pressure of Indian and Eastern European capabilities. Finally, organizations that have engaged for a long period of time in project-based application deals are planning to elevate them into more-strategic, long-term application management engagements. This will allow them to gain a longer-term commitment from the service provider and the relevant support to re-evaluate their application portfolio. NORDIC COUNTRIES 2005: â‚ ¬5.2B 2010: â‚ ¬7.6B 2005-2010 CAGR: 8.2% Drivers: Cost reduction, access to technical skills (especially in application outsourcing engagements), support in global operations, focus on core business Inhibitors: Loss of control, security/privacy, lack of trust Key trends: †¢ Nordic market generally mature. Many large deals are in second or third generation. Some likely to evolve toward multi sourcing †¢ Large corporations see global delivery as a viable option. SMBs see nearshore option more favorably †¢ Consolidation drives specialization by geography, vertical market or horizontal service †¢ Increased competition between regional and global ESPs †¢ Cultural affinity seen as crucial to guarantee deal success/longevity Each of the four country markets that compose the Nordic region has its own distinct characteristics and buying behaviors in IT services. However, if we look at the forecast growth between 2005 and 2010, we expect the region to grow at a similar speed (despite size differences) of about 8%. Denmark: Sometimes seen as the entry point for the global service providers to the Nordics. Expected growth is from â‚ ¬856 million in 2005 to â‚ ¬1.2 billion in 2010 (CAGR of 7.8%). Finland: Unique in the Nordic region as buyers focus much more on business value of an outsourcing deal rather than just cost. Expected growth is from â‚ ¬1 billion in 2005 to â‚ ¬1.45 billion in 2010 (CAGR of 7.5%) Norway: Remains the smallest outsourcing market in the region. Expected growth is from â‚ ¬1.2 billion in 2005 to â‚ ¬1.8 billion in 2010 (CAGR of 8.1%) Sweden: Largest market and very cost-competitive. Probably the Nordic country targeted most by offshore providers currently. Expected growth is from â‚ ¬2 billion in 2005 to â‚ ¬3.1 billion in 2010 (CGR of 8.7%) From a client perspective, the Nordic region market is generally mature, with many large corporations in second- or third-generation outsourcing deals. Global delivery is widely accepted as an option. Competition between regional providers and global providers is increasing; this was initiated by the inability of local providers to support the operations of key Nordic organizations around the globe. However, recent acquisitions and divestitures by both local and international providers prove that the market has still got room for further maturation and consolidation. NETHERLANDS 2005: â‚ ¬3.4B 2010:â‚ ¬5B 2005-2010 CAGR: 8% Drivers: Cost reduction above all, agility/flexibility, improving service to end users Inhibitors: Loss of IP and control, security/privacy, high cost Key trends: Market shows mixed signs of maturity (organizations accept global delivery) and immaturity (sourcing strategy is often neglected) Market split between large global corporations and wide portion of SMBs Increased competition for local/national champions Application under scrutiny for externalization The market in the Netherlands is one of the more modern IT outsourcing environments in Europe, closely following the U.K. in many trends. A focus on global delivery and the expansion of many deals into the application or business process layer points to more market maturity. This maturity is driven primarily by the relatively high proportion of large (and often multinational) enterprises headquartered in the Netherlands and competing in major markets such as financial services. But there are some contradictory characteristics that point to an immature market (cost cutting is by far the major driver, and sourcing strategy is often neglected); this, as a consequence, often inhibits the potential success of outsourcing initiatives. The market remains very challenging and competitive. This is due to the high presence of small and midsize businesses (SMBs), which traditionally tend to consider outsourcing as a threat more than an opportunity and require a higher level of customization, which tests the profitability model of service providers. Competition remains strong for national champions as global and offshore providers continue to target opportunities in the country. Increasingly, application outsourcing opportunities are emerging as organizations look at portfolio rationalization, legacy system transformation, and custom application software development initiatives and accessing application utility solutions. FRANCE 2005: â‚ ¬6.6B 2010: â‚ ¬10B CAGR: 8.4 % Drivers: Cost reduction, refocus internal IT, speed/flexibility Inhibitors: Loss of control, lack of trust, security/privacy Key trends: Beyond its reliance on staff augmentation, Frances outsourcing market shows opportunities in all facets of outsourcing: infrastructure, applications and BPO Selective outsourcing has gained acceptance, and organizations show cautious interest in global service delivery National champions remain under competitive pressure from the global and multinational providers France has long been considered behind in the outsourcing trend. Now, however, the French outsourcing market is consolidating and growing, while the long-standing reliance on staff augmentation is losing strength. The major driver that will support a CAGR of over 8% between 2005 and 2010 is the need for French organizations to reduce cost and enhance their level of competitiveness in the market by refocusing their internal IT skills on more-strategic tasks while gaining flexibility. On the other side, it is interesting to see that challenges related to HR management have lost strength, compared with the traditional fears related to loss of control and security and lack of trust. Large organizations have recently moved toward the adoption of selective outsourcing with multiple providers. This model has gained acceptance as organizations look at maximizing the balance between cost and service delivery excellence. There is also a new focus on application outsourcing. This trend is important not only because it signals an acceleration in the growth of outsourcing in France overall, but because it signals a major change in the way French organizations use different kinds of IT services. Increase in application outsourcing deals also touches on one of the major taboos of IT services in France: offshore outsourcing. As such, although offshore remains a word to be used with extra care in the French market, many organizations would consider that access to global delivery models is an appealing part of outsourcing, especially when delivered by traditional players. In this case, North Africa (Morocco, for example) is emerging as a viable near shore location. National champions, the providers that focus on a specific region or country, remain under competitive pressure from the global and multinational providers. GERMANY 2005: â‚ ¬10.6B 2010: â‚ ¬16B 2005-2010 CAGR: 8.6% Drivers: Cost reduction above all, focus on core business, refocus internal IT Inhibitors: Security/privacy, lack of trust, loss of control Key trends: Global economic pressures have forced many organizations to look at outsourcing as a viable option In the short term, objectives such as flexibility and agility are secondary Pressure to divest internal IT departments or internal shared service organizations remains strong Global delivery gaining ground especially toward Eastern Europe Intensifying competition between strong German players and global ones Legacy system modernization will remain a key objective The German market is â€Å"federated† in several ways: government responsibilities, industrial centers, buying centers within enterprises, and management structures in place. All of this makes doing business in Germany (and negotiating significant IT service deals) unique. Decision processes tend to be longer, require more consensus building and often entail more travel than in other parts of Europe. For a long time, the majority of German organizations have considered IT operations as a key component to maintain or enhance their level of competitiveness in the market. This has, as a consequence, slowed the outsourcing growth. In the past two years, however, economic pressures have forced many organizations to look at outsourcing tactically to cut cost. While in the short term, achieving flexibility is a secondary objective, organizations look at outsourcing as a way to refocus their internal capabilities while focusing on their core business. The traditional inhibitors around security, trust and loss of control apply. While non-German external service providers (ESPs) still find it difficult to position themselves in Germany (exceptions are IBM Germany, which established itself early on as a â€Å"German† ESP, and HP, based on its early SAP hosting business and penetration as a technology provider), German providers maintain strong domestic positions and are starting to focus on expanding their international presence (through T-Systems). In the short term, German organizations will still consider selling their own IT capabilities, while global providers will see these as viable targets to build capabilities as long as they provide financial support through a long-term outsourcing deal. Finally, beyond potential healthy growth for ERP application outsourcing initiatives (especially SAP), as many organizations look at legacy system modernization, it is likely that many projects will evolve and deploy model to include the long-term management of applications. EASTERN EUROPE 2005: â‚ ¬1.1B 2010: â‚ ¬1.6B 2005-2010 CAGR: 7.9% Drivers: Acquisitions made by large Western European organizations, increased competition, need to revamp obsolete IT environments (leap-frog) Inhibitors: Low expertise to manage OS deals, high cost of OS, loss of control Key trends: Slow internal consumption of outsourcing Key nearshore delivery hub for providers supporting operations of European organizations Local Eastern European service providers will remain target for acquisitions Long-term growth will be supported by increasing competition, acquisitions made by Western companies and the penetration of Western ESPs in the region The region has become a strong global delivery hub Recent admission to the European Union has transformed countries such as Poland, Romania and the Czech Republic into attractive locations to establish global delivery capabilities designed to deliver IT services to European or global customers. Eastern Europe has been identified as an ideal region to establish a service delivery hub by U.S.-based providers (IBM, Accenture and EDS), European ones (Atos Origin, Capgemini, T-Systems, SIS and ST) and offshore ones (Ness, TCS, Satyam, Infosys and Wipro). When necessary, providers are openly seeking acquisitions to gain scale; it is the case for SIS, which acquired ELAS, HT Computers in Slovakia, and Ibis-Sys in Serbia (February 2005). Others, like Austrian-based ST, are pursuing a strategy of becoming the provider of choice in Eastern Europe through a combination of organic development and local acquisitions. ST acquired Computacenter Austria to strengthen its product resale capabilities. Although internal consumption of outsourcing has been slow, it is expected to grow rapidly, thanks to increasing competition driven by the fact that private-sector companies and public-sector organizations are now focusing on bringing their systems into line with market standards. This is leading to some â€Å"leapfrogging† effects — the IT utility approach, for example, holds significant appeal without posing the same transition challenges as elsewhere — but because these markets are fairly immature, there is still a strong focus on products and product support services rather than more-sophisticated IT service engagements. Italy and Spain are two other major countries with an expected ITO market size of about 5 Billion $ each by the year 2010. GLOBAL DELIVERY MODEL GDM is a unique approach to outsourcing and off shoring, which offers the best of both worlds by blending onsite, onshore and offshore resources and locations. By using a far-reaching network of onsite, onshore, and offshore resources, GDM aims to cuts across geographies to access the right resources, in the right place, at the right cost. By selecting the most advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In this section we would discuss in detail, the key drivers to a successful GDM. Source: Capgemini, 2008 KEY DRIVERS OF A SUCCESSFUL GDM STRONG PROCESSES Strong processes are the backbone of a successful Global Delivery Model. There is a strong need for detailed, documented and time-tested processes for all the activities and interfaces. Strong quality and project management processes ensure delivery excellence. World class processes for knowledge management and sharing resources encourage improved learning among teams. Processes for managing talent ensure that the projects get the best and most motivated people. Strong processes for interaction and communication within team make it possible for globally distributed groups to interface and collaborate in an effective manner while delivering excellence on a continuous basis. On the other hand, processes, while strong, should leave ample space for creativity and flexibility. It is only then that the Global Delivery Model (GDM) can create far more value than the traditional sourcing models. Here is what it will translate into: Quicker, seamless transitions, and early project ownership Optimum onsite/ offshore mixes through intelligent allocation of the available resources High degree of predictability through processes, sharing and reuse A strong relationship approach to ensure continuity and business focus Sharing of best practices and tools across the enterprise Depth and quality of resources, continuously trained and retrained to suit project needs Adherence to SLA based pricing models to ensure good Return on Investment (ROI) and drive customer satisfaction PROCESS ARCHITECTURE Companies rely on processes to consistently deliver high quality solutions while executing a number of engagements from multiple locations. According to the policies adopted by a leading IT services provider: values, vision and policies should form the first level of the three-tiered process architecture. These are then implemented through process execution at the next level. These processes are defined with clear ownership and clearly defined roles and responsibilities. Quality System Documentation Quality System Documentation defines clearly all the processes that should be put into place. These documents provide the engineers and consultations with a vast repository of detailed procedures, templates, standards, guidelines and checklists. The comprehensiveness of these documents supports all tasks from higher-level information abstraction and definition to tasks such as coding and documentation. This is crucial to assure clients with the delivery of high quality and predictable IT solutions that meet their business needs. These documents should also be monitored and updated regularly. Knowledge Sharing Employees are given a forum like a website portal, to share knowledge gained from their experience at the organization. It is meant to be a central repository of the knowledge that can be tapped by peers and as sometimes external clients as well. The collection of documents on this portal is reviewed and classified into different areas: Software development life-cycle activities such as requirements specification, design, build and testing documentation. Software-related topics such as tools and quality documentation. Topics of general or operational interest such as travel or HR policies, etc. Process Assets This is a repository to facilitate sharing and giving out of engagement learning across the organization. The user has the facility to submit to the repository, retrieve from the repository and obtain information on the status of the repository. A process asset can be any information ranging from an engagement, which can be re-used by future engagements. Typically these include project plans, configuration management plans, requirements documents, standards, checklists, design documents, test plans, causal analysis reports and utilities used in the engagement, etc. Process Database The Process Database is a software engineering database to study the processes at the organization with respect to productivity and quality. More specifically, its purpose areas are as follows: To aid estimation of effort and project defects To get the productivity and quality data on different types of projects To aid in creating of a process capability baseline Process Capability Baseline (PCB) Process Capability baseline is used to specify, what the performance of the process is, i.e. what a project can expect when following the process. This estimation is done based on the past data. The performance factors of the process are Effect of Globalization on IT Service Providers in Europe Effect of Globalization on IT Service Providers in Europe Opportunities and challenges presented by Globalization: IT Service providers in Continental Europe EXECUTIVE SUMMARY Enterprises within Europe are increasingly trying to seek the advantages of global sourcing. Unlike enterprises in U.S. or U.K., continental European countries have historically been reluctant to engage with offshore providers. The reasons were far stretched, ranging from political sensitivity, labor laws, cultural compatibility and language requirements. Globalization, however, is creating new avenues that European companies can not ignore. A recent report by Gartner shows the potential IT Offshoring market to be in the range of about $ 200 to 240 Billion. The market is expected to register double digit growth for years to come. The current offshore spending by firms amounts to just $17 Billion worldwide. This clearly shows a big gap, a huge market potential which is yet to be exploited. The huge demand has also led to emergence and growth of several new players in the field of IT Outsourcing/ Offshoring services, this is leading to ever increasing competition in the marketplace. In order to cope up with this increased competition and to provide better services, these service providers are increasingly adopting Global delivery models. By selecting an advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In Europe, nearshore models still dominate the market. But these models are continuously being updated, with more and more providers setting up Offshore Development Centers in locations like India. A framework for building an optimal combination of onsite, nearshore, and offshore delivery capabilities is provided by Capgeminis Rightshore ® model. A recent Gartner report has suggested that, the current US economic slowdown is expected to lead buyers of IT services to consider increasing the percentage of their labor in offshore locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers. INTRODUCTION: EUROPEAN IT MARKET The European market remains a highly complex and competitive market with a large number of providers. Mergers and acquisitions will continue but will be balanced by new market entrants Outsourcing adoption in Europe is increasing for both infrastructure and applications; the widespread lack of well defined sourcing strategies among buyers and the realities of ever-changing business requirements will generate frequent deal negotiations and renegotiations Global delivery and utility services are irreversible trends evolving at different speeds among various European countries. The European multi country, multi language/culture composition increases the evolutionary complexity of these trends Selective outsourcing with multiple providers will remain the preferred model of engagement for European buyers. Governance and end-to-end integration/management of different providers/solutions are the most challenging aspects of it ITO market maturity varies: UK is the most matured IT market in Europe. The other European markets are maturing at different speeds. An acceleration in ITO adoption is now apparent in countries such as France and Germany A focus on achieving service delivery excellence and the best value/quality balance is increasingly driving European organizations (especially those beyond the first generation deal) to consider selecting multiple providers for an outsourcing contract. For example, in the IT Telecom sector, the most common division is by service tower, with customers opting to choose different providers for their network, desktop, data center and application competencies. At the moment, however, providers tend to join forces in an opportunistic manner, as a response to customer demands. This is the cause behind the ever-changing composition of the providers teams; as a consequence, consolidating best practices to manage IT service spin offs between different providers in an effort to guarantee end-to-end service delivery excellence remains challenging. As the number of providers engaged is set to increase, this challenge is likely to intensify. It will also be driven by other market characteristics, which include a persistent tactical use of outsourcing by European customers, insufficient process maturity, and lack of clarity in the definition of roles and responsibilities. As we look at global delivery, it is fair to say that there are two major misconceptions that still exist among the European market: 1) Global delivery is often considered as a synonym of offshore, and 2) IT services delivered through global delivery capabilities are application services. In reality, in the past few years, the European market has witnessed a considerable expansion in terms of both geographical location options (in areas such as Eastern Europe or North Africa, for example) and portfolio of services offered (now including, for example, help desk and remote infrastructure management services). Global delivery and offshore, however, remain the key deal characteristics that need to be treated with extra care in many European geographies, and as a consequence, many deals remain confidential. Traditional providers investment will be directed toward enhancing existing capabilities (especially near shore in Eastern Europe) and ensuring process solidity. Offshore providers inv estment on the other side will be centered on creating front-end capabilities with a focus on specific country and vertical-oriented competencies. While these global delivery models mature and are refined/ optimized, customers satisfaction will remain a challenge. KEY TRENDS SHAPING IT OUTSOURCING MARKET IN EUROPE TRENDS CHARACTERISTICS Selective Outsourcing With Multiple Providers * Embraced by majority of European companies * Objectives: IT excellence and cost optimization * Integration and governance challenges Global Sourcing and Global Delivery Models * Near shore proximity key for European market * Expanding portfolio of outsourcing services * Key area of investment for providers and buyers IT Utility * Industrialization is accelerating * Convergence of IT utility and global delivery * Key drivers: flexibility, efficiency, optimized cost, speed Aggressive ESP Competitive Landscape * National, global and offshore ESPs converging * Mergers, acquisitions and divestitures to continue * Providers are implementing new business models * New offshore market entrants Application Outsourcing to Grow * Drivers: portfolio rationalization, legacy modernization * Global delivery will gain acceptance * Multitude of providers competing Source: Gartner The U.K., Netherlands, Sweden and Finland are examples of countries more attracted by the global delivery model. However, in the meantime, the impact of global competition has started to drive countries such as Germany and France to consider global delivery as a viable option to be considered strategically, rather than when all other options have been exhausted. Despite a slower gestation and the fact that a complete infrastructure utility (IU) offering has not yet been developed, the IU model is continuing to attract new offerings and/or new providers. In the meantime, European customers, attracted by the idea of being able to access IT services in a flexible way, remain cautious as they expect further clarity on issues such as unit definition, pricing mechanisms, integration to existing systems, and security portability In the near future, we expect that the IU for ERP platforms will remain the most common battleground for providers; other providers are expected to instead mask their IU offering behind a package that includes product and support services. The concept of software as a service (SaaS) or ready-to-use applications will continue to generate lot of interest. Expectations for a solid delivery and specific functionalities will drive providers to specialize their offerings. Finally, gains in terms of process efficiency will be seen as crucial to deliver enhanced competitiveness, flexibility, agility and cost optimization. GLOBAL TRENDS: IT OUTSOURCING and OFFSHORING MARKET IT Outsourcing market is showing an average growth of 9% p.a. IT Outsourcing Worldwide forecast (Million $) Source : Gartner Dataquest In terms of volume, North America continues to be the leader in IT outsourcing. Latin America and APAC have shown good growth Europe has fast emerged as a big IT outsourcer Global offshore spending is continuing to register double digit growth. Worldwide Offshore IT Services Spending by Importing Region (million $) Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast In terms of volume, the North America continues to be the leader in IT offshoring. Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy Global offshore spending is projected to increase to 29400 $ Million in 2010 The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited. IT and BPO market Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008 Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *) According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency Different Sourcing Models In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy Captive Offshoring: Sourcing from an affiliated firm located abroad Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad REGIONAL DYNAMICS ACROSS EUROPE The following section will describe the regional ITO trends and local dynamics across different European locations. UK and IRELAND 2005: â‚ ¬17.2B 2010: â‚ ¬25.7B 2005-2010 CAGR: 8.3% ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP Key trends: †¢ Most mature market in Europe with wider number of mega deals (public sector) †¢ Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared services †¢ More selective sourcing and global delivery †¢ Areas such as Scotland and Ireland feeling pressure of Indian and Eastern European operations †¢ Wide potential for application engagements to mature from project engagements into outsourcing based engagements Despite being the largest and most mature market in Europe, the U.K. remains also one of the fast-growing ones. Here organizations seem to have moved away from the equation of outsourcing = cost reduction. While cost remains a key component, other objectives seem more important, such as improving IT service delivery, gaining specific skills, especially for application outsourcing deals, and becoming a more flexible organization. (See Appendix F) Inhibitions remain related to a general lack of trust in the ability to join forces with the providers to manage security, control over IT operations and IP. The U.K. market is characterized by a large number of mega deals, especially in the public sector. These outsourcing deals often include initiatives that have classically been carried out through project engagements and now are increasingly being performed in the initial phases of an IT outsourcing or BPO deal. This change reflects the growing desire of customers for a tighter link between investment and results (for which the outsourcer is responsible during the duration of the contract) and the important shift in role for the internal IT department. Rather than focusing on assembling and managing all of the necessary skills and capabilities to meet a certain objective, IT organizations, in this scenario, are responsible for coordinating the objectives of the Business Unit and the internal and external providers engaged to support them. Often infrastructure outsourcing is at the core of these complex relationships. At the same time, the U.K. is also the largest market in terms of adoption of IT services delivered through a network of global delivery capabilities (which include nearshore and offshore locations). From this point of view, areas that used to be considered as low cost for outsourcing operations (Scotland and Ireland) continue to feel the pressure of Indian and Eastern European capabilities. Finally, organizations that have engaged for a long period of time in project-based application deals are planning to elevate them into more-strategic, long-term application management engagements. This will allow them to gain a longer-term commitment from the service provider and the relevant support to re-evaluate their application portfolio. NORDIC COUNTRIES 2005: â‚ ¬5.2B 2010: â‚ ¬7.6B 2005-2010 CAGR: 8.2% Drivers: Cost reduction, access to technical skills (especially in application outsourcing engagements), support in global operations, focus on core business Inhibitors: Loss of control, security/privacy, lack of trust Key trends: †¢ Nordic market generally mature. Many large deals are in second or third generation. Some likely to evolve toward multi sourcing †¢ Large corporations see global delivery as a viable option. SMBs see nearshore option more favorably †¢ Consolidation drives specialization by geography, vertical market or horizontal service †¢ Increased competition between regional and global ESPs †¢ Cultural affinity seen as crucial to guarantee deal success/longevity Each of the four country markets that compose the Nordic region has its own distinct characteristics and buying behaviors in IT services. However, if we look at the forecast growth between 2005 and 2010, we expect the region to grow at a similar speed (despite size differences) of about 8%. Denmark: Sometimes seen as the entry point for the global service providers to the Nordics. Expected growth is from â‚ ¬856 million in 2005 to â‚ ¬1.2 billion in 2010 (CAGR of 7.8%). Finland: Unique in the Nordic region as buyers focus much more on business value of an outsourcing deal rather than just cost. Expected growth is from â‚ ¬1 billion in 2005 to â‚ ¬1.45 billion in 2010 (CAGR of 7.5%) Norway: Remains the smallest outsourcing market in the region. Expected growth is from â‚ ¬1.2 billion in 2005 to â‚ ¬1.8 billion in 2010 (CAGR of 8.1%) Sweden: Largest market and very cost-competitive. Probably the Nordic country targeted most by offshore providers currently. Expected growth is from â‚ ¬2 billion in 2005 to â‚ ¬3.1 billion in 2010 (CGR of 8.7%) From a client perspective, the Nordic region market is generally mature, with many large corporations in second- or third-generation outsourcing deals. Global delivery is widely accepted as an option. Competition between regional providers and global providers is increasing; this was initiated by the inability of local providers to support the operations of key Nordic organizations around the globe. However, recent acquisitions and divestitures by both local and international providers prove that the market has still got room for further maturation and consolidation. NETHERLANDS 2005: â‚ ¬3.4B 2010:â‚ ¬5B 2005-2010 CAGR: 8% Drivers: Cost reduction above all, agility/flexibility, improving service to end users Inhibitors: Loss of IP and control, security/privacy, high cost Key trends: Market shows mixed signs of maturity (organizations accept global delivery) and immaturity (sourcing strategy is often neglected) Market split between large global corporations and wide portion of SMBs Increased competition for local/national champions Application under scrutiny for externalization The market in the Netherlands is one of the more modern IT outsourcing environments in Europe, closely following the U.K. in many trends. A focus on global delivery and the expansion of many deals into the application or business process layer points to more market maturity. This maturity is driven primarily by the relatively high proportion of large (and often multinational) enterprises headquartered in the Netherlands and competing in major markets such as financial services. But there are some contradictory characteristics that point to an immature market (cost cutting is by far the major driver, and sourcing strategy is often neglected); this, as a consequence, often inhibits the potential success of outsourcing initiatives. The market remains very challenging and competitive. This is due to the high presence of small and midsize businesses (SMBs), which traditionally tend to consider outsourcing as a threat more than an opportunity and require a higher level of customization, which tests the profitability model of service providers. Competition remains strong for national champions as global and offshore providers continue to target opportunities in the country. Increasingly, application outsourcing opportunities are emerging as organizations look at portfolio rationalization, legacy system transformation, and custom application software development initiatives and accessing application utility solutions. FRANCE 2005: â‚ ¬6.6B 2010: â‚ ¬10B CAGR: 8.4 % Drivers: Cost reduction, refocus internal IT, speed/flexibility Inhibitors: Loss of control, lack of trust, security/privacy Key trends: Beyond its reliance on staff augmentation, Frances outsourcing market shows opportunities in all facets of outsourcing: infrastructure, applications and BPO Selective outsourcing has gained acceptance, and organizations show cautious interest in global service delivery National champions remain under competitive pressure from the global and multinational providers France has long been considered behind in the outsourcing trend. Now, however, the French outsourcing market is consolidating and growing, while the long-standing reliance on staff augmentation is losing strength. The major driver that will support a CAGR of over 8% between 2005 and 2010 is the need for French organizations to reduce cost and enhance their level of competitiveness in the market by refocusing their internal IT skills on more-strategic tasks while gaining flexibility. On the other side, it is interesting to see that challenges related to HR management have lost strength, compared with the traditional fears related to loss of control and security and lack of trust. Large organizations have recently moved toward the adoption of selective outsourcing with multiple providers. This model has gained acceptance as organizations look at maximizing the balance between cost and service delivery excellence. There is also a new focus on application outsourcing. This trend is important not only because it signals an acceleration in the growth of outsourcing in France overall, but because it signals a major change in the way French organizations use different kinds of IT services. Increase in application outsourcing deals also touches on one of the major taboos of IT services in France: offshore outsourcing. As such, although offshore remains a word to be used with extra care in the French market, many organizations would consider that access to global delivery models is an appealing part of outsourcing, especially when delivered by traditional players. In this case, North Africa (Morocco, for example) is emerging as a viable near shore location. National champions, the providers that focus on a specific region or country, remain under competitive pressure from the global and multinational providers. GERMANY 2005: â‚ ¬10.6B 2010: â‚ ¬16B 2005-2010 CAGR: 8.6% Drivers: Cost reduction above all, focus on core business, refocus internal IT Inhibitors: Security/privacy, lack of trust, loss of control Key trends: Global economic pressures have forced many organizations to look at outsourcing as a viable option In the short term, objectives such as flexibility and agility are secondary Pressure to divest internal IT departments or internal shared service organizations remains strong Global delivery gaining ground especially toward Eastern Europe Intensifying competition between strong German players and global ones Legacy system modernization will remain a key objective The German market is â€Å"federated† in several ways: government responsibilities, industrial centers, buying centers within enterprises, and management structures in place. All of this makes doing business in Germany (and negotiating significant IT service deals) unique. Decision processes tend to be longer, require more consensus building and often entail more travel than in other parts of Europe. For a long time, the majority of German organizations have considered IT operations as a key component to maintain or enhance their level of competitiveness in the market. This has, as a consequence, slowed the outsourcing growth. In the past two years, however, economic pressures have forced many organizations to look at outsourcing tactically to cut cost. While in the short term, achieving flexibility is a secondary objective, organizations look at outsourcing as a way to refocus their internal capabilities while focusing on their core business. The traditional inhibitors around security, trust and loss of control apply. While non-German external service providers (ESPs) still find it difficult to position themselves in Germany (exceptions are IBM Germany, which established itself early on as a â€Å"German† ESP, and HP, based on its early SAP hosting business and penetration as a technology provider), German providers maintain strong domestic positions and are starting to focus on expanding their international presence (through T-Systems). In the short term, German organizations will still consider selling their own IT capabilities, while global providers will see these as viable targets to build capabilities as long as they provide financial support through a long-term outsourcing deal. Finally, beyond potential healthy growth for ERP application outsourcing initiatives (especially SAP), as many organizations look at legacy system modernization, it is likely that many projects will evolve and deploy model to include the long-term management of applications. EASTERN EUROPE 2005: â‚ ¬1.1B 2010: â‚ ¬1.6B 2005-2010 CAGR: 7.9% Drivers: Acquisitions made by large Western European organizations, increased competition, need to revamp obsolete IT environments (leap-frog) Inhibitors: Low expertise to manage OS deals, high cost of OS, loss of control Key trends: Slow internal consumption of outsourcing Key nearshore delivery hub for providers supporting operations of European organizations Local Eastern European service providers will remain target for acquisitions Long-term growth will be supported by increasing competition, acquisitions made by Western companies and the penetration of Western ESPs in the region The region has become a strong global delivery hub Recent admission to the European Union has transformed countries such as Poland, Romania and the Czech Republic into attractive locations to establish global delivery capabilities designed to deliver IT services to European or global customers. Eastern Europe has been identified as an ideal region to establish a service delivery hub by U.S.-based providers (IBM, Accenture and EDS), European ones (Atos Origin, Capgemini, T-Systems, SIS and ST) and offshore ones (Ness, TCS, Satyam, Infosys and Wipro). When necessary, providers are openly seeking acquisitions to gain scale; it is the case for SIS, which acquired ELAS, HT Computers in Slovakia, and Ibis-Sys in Serbia (February 2005). Others, like Austrian-based ST, are pursuing a strategy of becoming the provider of choice in Eastern Europe through a combination of organic development and local acquisitions. ST acquired Computacenter Austria to strengthen its product resale capabilities. Although internal consumption of outsourcing has been slow, it is expected to grow rapidly, thanks to increasing competition driven by the fact that private-sector companies and public-sector organizations are now focusing on bringing their systems into line with market standards. This is leading to some â€Å"leapfrogging† effects — the IT utility approach, for example, holds significant appeal without posing the same transition challenges as elsewhere — but because these markets are fairly immature, there is still a strong focus on products and product support services rather than more-sophisticated IT service engagements. Italy and Spain are two other major countries with an expected ITO market size of about 5 Billion $ each by the year 2010. GLOBAL DELIVERY MODEL GDM is a unique approach to outsourcing and off shoring, which offers the best of both worlds by blending onsite, onshore and offshore resources and locations. By using a far-reaching network of onsite, onshore, and offshore resources, GDM aims to cuts across geographies to access the right resources, in the right place, at the right cost. By selecting the most advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In this section we would discuss in detail, the key drivers to a successful GDM. Source: Capgemini, 2008 KEY DRIVERS OF A SUCCESSFUL GDM STRONG PROCESSES Strong processes are the backbone of a successful Global Delivery Model. There is a strong need for detailed, documented and time-tested processes for all the activities and interfaces. Strong quality and project management processes ensure delivery excellence. World class processes for knowledge management and sharing resources encourage improved learning among teams. Processes for managing talent ensure that the projects get the best and most motivated people. Strong processes for interaction and communication within team make it possible for globally distributed groups to interface and collaborate in an effective manner while delivering excellence on a continuous basis. On the other hand, processes, while strong, should leave ample space for creativity and flexibility. It is only then that the Global Delivery Model (GDM) can create far more value than the traditional sourcing models. Here is what it will translate into: Quicker, seamless transitions, and early project ownership Optimum onsite/ offshore mixes through intelligent allocation of the available resources High degree of predictability through processes, sharing and reuse A strong relationship approach to ensure continuity and business focus Sharing of best practices and tools across the enterprise Depth and quality of resources, continuously trained and retrained to suit project needs Adherence to SLA based pricing models to ensure good Return on Investment (ROI) and drive customer satisfaction PROCESS ARCHITECTURE Companies rely on processes to consistently deliver high quality solutions while executing a number of engagements from multiple locations. According to the policies adopted by a leading IT services provider: values, vision and policies should form the first level of the three-tiered process architecture. These are then implemented through process execution at the next level. These processes are defined with clear ownership and clearly defined roles and responsibilities. Quality System Documentation Quality System Documentation defines clearly all the processes that should be put into place. These documents provide the engineers and consultations with a vast repository of detailed procedures, templates, standards, guidelines and checklists. The comprehensiveness of these documents supports all tasks from higher-level information abstraction and definition to tasks such as coding and documentation. This is crucial to assure clients with the delivery of high quality and predictable IT solutions that meet their business needs. These documents should also be monitored and updated regularly. Knowledge Sharing Employees are given a forum like a website portal, to share knowledge gained from their experience at the organization. It is meant to be a central repository of the knowledge that can be tapped by peers and as sometimes external clients as well. The collection of documents on this portal is reviewed and classified into different areas: Software development life-cycle activities such as requirements specification, design, build and testing documentation. Software-related topics such as tools and quality documentation. Topics of general or operational interest such as travel or HR policies, etc. Process Assets This is a repository to facilitate sharing and giving out of engagement learning across the organization. The user has the facility to submit to the repository, retrieve from the repository and obtain information on the status of the repository. A process asset can be any information ranging from an engagement, which can be re-used by future engagements. Typically these include project plans, configuration management plans, requirements documents, standards, checklists, design documents, test plans, causal analysis reports and utilities used in the engagement, etc. Process Database The Process Database is a software engineering database to study the processes at the organization with respect to productivity and quality. More specifically, its purpose areas are as follows: To aid estimation of effort and project defects To get the productivity and quality data on different types of projects To aid in creating of a process capability baseline Process Capability Baseline (PCB) Process Capability baseline is used to specify, what the performance of the process is, i.e. what a project can expect when following the process. This estimation is done based on the past data. The performance factors of the process are

THE NATIONAL TOBACCO STRATEGY

Facts about harm associated with tobacco and contact information for quit programs provide access to information and support School education programs that focus on assertiveness skills, academic success and developing a negative attitude to smoking all help young people to modify personal behaviors and enhance skills that will be protective against smoking in future Quitting service Creating Supportive environments: Promotion of smoke free messages and regulation of place creates a variety of physical and social support structures accessible to individuals Frightening media campaigns â€Å"every cigarette is doing you damage† maintained powerful antismog attitude in the with advertising of pharmaceutical products, such as nicotine patches, the urgency to quit is implemented by the sense of having a solution readily available. Most indoor and public places are smoke free, providing safe physical and social environments for people to work and interact socially.Non-health initia tives like housing, counseling and anti-violence strategies reduce stress and anxiety that might lead to smoking. Employment and training programs to reduce boredom associated with unemployment-?address socio-cultural and socioeconomic determinants which influence tobacco use. Regulation of place of sale aims to eliminate the sale of tobacco products to minors and aka them less visible: hidden behind counters Strengthening Community action Local educational strategies such as peer support and mentoring programs improve self-esteem and the sense of worth among students which can be protective factors against harm from tobacco use.Families and parents provided with safe places for children to avoid tobacco smoke-?parks Reorienting Health services: ‘Lifestyles' prescription pads are tools used by Gaps to initiate discussions with patients about lifestyle behaviors-?help doctors introduce preventative assuages and recommendations for improving lifestyle behaviors. Building Healthy Public Policy. High levels of taxation on tobacco ensure cigarettes are less affordable, reducing access for younger people in particular Imposition of laws that prevent smoking in most public and indoor environments I. E. No smoking in pubs and clubs Place of drug education in all Australian schools an important cornerstone of public policy. Delivery of anti-smoking messages and development of anti-smoking attitudes as young as possible is critical.

Current Political Dimensions and Issues of Globalization Essay

Globalization refers to those processes whereby geographically distant events and decisions impact to a growing degree on â€Å"local† university life. Also it can be viewed as link towards the growth of social interconnectedness across existing geographical and political boundaries. Globalization is the process of increasing interconnectedness & interdependent ness of people and places as a result of improved transport and communication and information technologies that ensures countries stay together as one community. In globalization, political, economic, social, religious and cultural issues usually interplay in producing a globalize world.   The world is becoming one. most contemporary social theorists endorse the view that globalization refers to fundamental changes in the spatial and temporal contours of social existence, according to which the significance of space or territory undergoes shifts in the face of a no less dramatic acceleration in the temporal structure of crucial forms of human activity. Geographical distance is typically measured in time. (Brawley, 2002) The world’s globalization can be traced back to many decades when different countries of the world saw the need to have globalization of the economy, politics, and societies, religious through the creation of links that will ensure that there is coordination in all the aforementioned aspects that form the basis of any country. There has been great integration in the economic sector among countries in, this is what is commonly referred as economic globalization. The fast economic growth among many countries in the world can be attributed to globalization. This implies that globalization has helped reduce poverty in many developing counties. Western political theory has traditionally presupposed the existence of territorially bound communities, whose borders can be more or less neatly delineated from those of other communities. The contemporary liberal politics has it that to speak of bounded communities whose fundamental structure consists of self-sufficient schemes of cooperation for all the essential purposes of human life. (David, 1995) The current political issues in any given country are based on how to achieve and utilize globalization.   Most of the countries have resolved to form partnerships with most of the countries in the world so as to integrate their resources geared towards high production. The whole process of globalization promotes proper and easy access to the world market among the partners.   This role is played by internationals organizations that have tried to promote liberal markets. For instance business people on different continents now engage in electronic commerce; television allows people situated anywhere to observe the impact of terrible wars being waged far from the comfort of their living rooms; academics make use of the latest video conferencing equipment to organize seminars in which participants are located at disparate geographical locations; the Internet allows people to communicate instantaneously with each other notwithstanding vast geographical distances separating them. (Burchill & Linklater, 1996). The whole process of globalization has its own challenges where the poor countries are not able to compete effectively in the world markets and as such the poor countries are unable to have economic growth.   There is great disparity between the developed and the developing countries and this is also inherent to the people of these countries where we have a big imbalance between the poor and the rich. Due to the process of globalization countries have a challenge on how to have political shifts that will enhance their global growth.   The political shift usually twisted towards the stakeholders of globalization. Corruption fighting is the key issue towards globalization for any country. Covering a wide range of distinct political, economic, and cultural trends, the term globalization has quickly become one of the most fashionable buzzwords of contemporary political and academic debate. In popular discourse, globalization often functions as little more than a synonym for one or more of the following phenomena: the pursuit of classical liberal free market policies in the world economy economic liberalization, the growing dominance of different forms of political, economic, and cultural life. The proliferation of new information technologies such as the Internet as well as the notion that humanity are in the anticipation of   realizing one single unified community in which major sources of social conflict have vanished through global integration. (David 1995) Ultimately globalization has been achieved through technological advancements.   It is a main challenge in the process of globalization as many counties are lagging behind in terms of technological advancements that are meant to promote fast and effective communication as well as boost high production.   The process of achieving the international development goals pays more emphasizes on reducing poverty levels in countries of the world by promoting sustainable growth by empowering the poor people. Globalization is just an opportunity that is associated with risks at the national and international level. One of the issues that has emitted from globalization is that there is freedom of movement which has made developed countries hire labour from lower cost countries this making the citizens of the country to lose their jobs.   It end result of this is that the country is focusing on its development. But globalization can not be dismissed at all but what is important is to lay good enabling structures that can enhance both an individual development as well as the country development.   This can only be done by putting in place good governance. Generally, globalization poses risks and challenges, but so far it has become a stabilizing force in Philippine politics. (Robertson, 1992) This is the only way the government could make serious headway in the fight against joblessness and poverty. There are indications that most of those uprisings in the past were supported by the business elite. They are concentrated in the banking, real estate, export, and trading. Most of these sectors now are raking in money from overseas remittances, outsourcing, and recovering exports. It means they now have a stake in the stability of the system. People in the world are encouraged to think as citizens of nations and as well global citizens if the global agenda is to be achieved.   Globalization is a force that is attaching people of countries in the world and as such globalization is the way forward. Generally, globalization is characterized by free market, new technologies internet revolution.   Due to this increased technologies little time is required to connect different geographical locations.   This has helped in reducing the issues of national boundaries as people can communicate without necessarily crossing over the national boundaries.   Many social activities can take place in the world without necessary considering the geographical location of the participants. This is done through telecommunication, digital computers, audiovisual media and this occurs everywhere in the contemporary world.   (Schorte, 1996).  Ã‚   Business is done through electronics, televisions. This has promoted both social and economic interconnectedness across the political and geographical boundaries.   This means that technical disregard to geographical boundaries is a major issue towards globalization. High speed technology plays a very crucial role in the process of globalization.   This is another issue that is hindering the achievement of globalization.   This is because most of the world’s countries and are not moving as per the dynamisms of technology thus creating slow inter border speed movements. (Scheuerman,2004) The high speed technologies minimize the significance of distance and as a result improving the interconnectedness. But in those areas where deterritorialization and social interconnectedness across national borders are especially striking, new transnational institutions (for example, cross-border referenda), along with a dramatic strengthening and further democratization of existing forms of supranational authority (in particular, the United Nations), are necessary if we are to assure that popular sovereignty remains an effective principle. Globalization guarantees sustainable competitiveness through leadership of technological improvements.   The attraction of many countries in need of investment has promoted the growth of economies in most countries that embrace globalization.   Good examples are the recent joint ventures of China with Japanese companies where the Chinese get skills directly by working the Japanese. High-speed technologies and organizational approaches are employed by transnational operating firms, the so-called â€Å"global players,† with great effectiveness. The emergence of â€Å"around-the-world, around-the-clock† financial markets, where major cross-border financial transactions are made in cyberspace at the blink of an eye, represents a familiar example of the economic face of globalization. (Mark & Interline 2001) How Philippines is integrated in international economy at the global community. Philippines as far as the globalization is concerned is rated in the semi-globalize world.   The country has not achieved completely what it takes for a country to be globalized.   It is lacking integrated markets and economies with other countries.   This because it has not taken advantage of across borders integration.   Low cross borders coordination reduces the economic share activities which have an effect of reducing fast economic growth.   Philippines have now a new political shift aimed at promoting its economic growth.   One of the main issues of promoting globalization is through democratization.   This is an aspect that has been missing in Philippines, there is a tendency the country believing that poor countries should not depend on the foreign capital and for this reason the country believes in regional issues of development. Philippine is the latest country to be accepted in the global alliance nations sharing global information and economies.   The country’s software sector has greatly grown giving it advantage in global information technology.   In the year 2006, Philippines had established software innovation which aimed at creating a global centre of information.   The process of software innovation is based on good relations with other countries that have advanced technology.   This procedure has promoted individuals business within the integrated countries.   A good example is stag Philippines Company that developed an innovative online registration system for one of the domestic airlines, this is a positive movement towards globalizations. The country has moved from the traditional of doing things to the scientific and technological revolutions.   Philippines has achieved great integration in East Asia with countries such as Indonesia, Malaysia and Thailand.   This form of regional integration has promoted free market within the area hence improved economies. Globalization refers to increased possibilities for action between and among people in situations where latitudinal and longitudinal location seems immaterial to the social activity at hand. Even though geographical location remains crucial for many undertakings (for example, farming to satisfy the needs of a local market), deterritorialization manifests itself in many social spheres.. Territory in the sense of a traditional sense of a geographically identifiable location no longer constitutes the whole of â€Å"social space† in which human activity takes places. In this initial sense of the term, globalization refers to the spread of new forms of non-territorial social activity (Fred, 1998) There are great challenges for the government in trying to harmonize governance especially when there is integration of business bodies with other countries.   The process of liberalization and democratization enables the more advanced countries to take advantage of the free market.   The more developed countries use this opportunity in getting more profits which they take to their rich countries.   There is power mixing for the government as it not possible to control all the power diffusion. Each manifestation of globalization also generates distinct conflicts and dislocations. For example, there is substantial empirical evidence that cross-border flows and exchanges, as well as the emergence of directly transnational forms of production by means of which a single commodity is manufactured simultaneously in distant corners of the globe, are gaining in prominence (Castells, 1996). The whole process of Philippines involvement in international and global community is that the developed countries in term s of service provision on the onset there is un equal competition for the integrated market which the developed countries stand a better chance to exploit.   Despite the lower levels of poverty in most states, there is a general inequality in the overall income among the citizens. The inequality in Philippines occurs especially between rural and urban areas.   This has led to economic stagnation and civil instability which threatens the goal of reducing poverty by globalization.   Other places are overpopulated causing strain on the meager natural resources.   The fact that Philippines has moved global has not solved the internal disparities which threaten to increase poverty levels. The government has a great challenge of implementing certain agreements with the international community.   Such international conventions are so demanding in terms of implementation within the country.   When these legal conventions are integrated to the country they have the capacity to weaken the internal structures of the country. As an empirical matter, the decay of the domestic-foreign frontier seems highly ambivalent, since it might easily pave the way for the decay of the more attractive attributes of domestic political life: as â€Å"foreign† affairs collapse inward onto â€Å"domestic† political life, the relative lawlessness of the former potentially makes disturbing inroads onto the latter (Scheuerman, 2004) The government is also challenged by the rapidly expanding flow of goods services information and people which makes the country to be more interdependent.   This requires that the country sets global consensus to meet these challenges. Globalization-from-above is controlled by wealthy elites and driven by a hunger for more wealth and power. But there is another form of globalization in the Philippines that is made up of grassroots alliances of human rights activists, trade unions, women’s organizations, and environmental coalitions and farmers’ organizations. This form of globalization however does not get as much publicity as the elite form of globalization but it is growing just as rapidly. The institutions such as the World Bank, the International Monetary Fund and transnational corporations have assisted in development and the integration of the world’s countries into the global system. The cross-boarder issues that require joint efforts have been very difficult for the Philippine government to manage.   Areas that require regional cooperation include drug supply reduction, prevention of HIV/AIDS, fight against illegal drugs.   Lack of such support has been a great set back to the government. Critics insist that local, regional, and national forms of self-government are being rapidly supplanted by insufficiently democratic forms of global governance remote from the needs of ordinary citizens, whereas their defenders describe new forms of supranational legal and political decision as indispensable forerunners to more inclusive and advanced forms of self-government. Global financial markets also challenge traditional attempts by liberal democratic nation-states to rein in the activities of bankers, spawning understandable anxieties about the growing power and influence of financial markets over democratically elected representative institutions Globalization has an effect on Philippines culture and traditions as the society’s norms and values as subject to change.   There are many ways in which the globalization may finally erode the cultural values of the people due to the volatile socialization a contribution of market liberalization and democratization. Market liberalization and the democratization has continued to adversely contributed to the deceleration in growth rate of the country because of the worsening terms of trade between the integrated countries and Philippines. There is a weak growth of exports to the developed countries but rather there are a big number of imports to the country. This means that the country spends more money to the outside countries than what it receives.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   There is a need for the developed countries to have a positive shift towards assisting the developing countries. This can be done by the removal of trade barrier to the developing countries. Philippine’s economy has been growing at 4-6% GDP due to the growth of the robust sector. Electrons and semiconductors contribute greatly to the country’s exports. There is variety of market for the Philippines products due to the globalization. A global citizen in this country is encouraged to participate actively by taking advantage of the available opportunities: outsourcing is an outcome of technological advancements. For instance, many people in the Philippines start their work at 9pm till five in the morning. Such jobs include call centers. This industry of out sources is growing at 57%per year. The Philippines has low or more open economy, a contribution of the economic reforms done as well as moving global. The linking together and expanding of social activities across borders is predicated on the possibility of relatively fast flows and movements of people, information, capital, and goods. Without these fast flows, it is difficult to see how distant events could possibly posses the influence they now enjoy. High-speed technology plays a pivotal role in the velocity of human affairs. But many other factors contribute to the overall pace and speed of social activity.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Globalization has completely changed the political and social situation of the country. The current crop of politicians believes that the future of the country depends on global connectivity and it is for this reason they support global dynamics and global competitiveness. The democratic model has been used in Philippines in the process of creating alliances with other countries. According to one influential strand within international relations theory, relations between states are fundamentally lawless. Since the achievement of justice or democracy, for example, presupposes an effective political sovereign, the lacuna of sovereignty at the global level means that justice and democracy are necessarily incomplete and probably unattainable there. In this â€Å"Realist† view of international politics, core features of the modern system of sovereign states relegate the pursuit of western political thought’s most noble normative goals primarily to the domestic arena. Other critics has that the dangers of global economy is that investors come into a particular country, present certain conditions and government often accept them without asking the people who will be affected, which is a violation of workers rights. It often happens under such deals when state companies are bought over by foreign companies, thousands of workers are laid off under so called structural adjustment program to cut the cost, while workers are pushed for longer hours and prohibited from labor unions. The whole purpose behind this way of working is exploitation of the foreign market to gain greater profit. Globalization is part of the changing world, but the way it is coming in developing countries lacks humanity. Contemporary analysts associate globalization with deterritorialization, according to which a growing variety of social activities takes place irrespective of the geographical location of participants. As Jan Aart Scholte observes, â€Å"global events can — via telecommunication, digital computers, audiovisual media, rocketry and the like — occur almost simultaneously anywhere and everywhere in the world. (Scholte & Aart, 1996) In conclusion globalization is the way forward for Philippine’s economic and political growth. Technology is the key to the achievement of the globalization process and it is therefore very important for any country to embrace technological changes in order to be complacent with the fast changes in the world. A country that will not embrace technological changes is like lag behind in matters of development. Increased communication is panacea of any expanding economy as this promotes sharing of the international nature. Expanding free market promotes greater exchange of skills which has a net effect of improving the economy in terms of the factors maximizing the factors of production such as capital, land, entrepreneurship. Outsourcing is the contemporary form of globalization that is practiced in the contemporary Philippine and this has led to the improved social relation among the regional countries. Integration of different companies which produce similar products has enhanced the exchange of technologies by the virtue of direct contact. Finally globalization has reduced the social boundaries as well the geographical barriers and now people are staying as one big community. References Mark Randal Brawley (2002) the Politics of Globalization: Gaining Perspective, Assessing Consequences. Broadview Press. Crescenzi, Mark, and Andrew J. Interline. 2001. Time Remembered: A Dynamic Model of Interstate Interaction.† International Studies Quarterly 45:409-431. Scott Burchill and Andrew Linklater, (1996). Theories of International Relations. New York: St. Martin’s Castells, Manuel (1996), The Rise of Network Society (Oxford: Blackwell). Dallmayr, Fred (1998), Alternative Visions: Paths in the Global Village (Lanham, Md.: Rowman & Littlefield). Held, David (1995), Democracy and the Global Order: From the Modern State to Cosmopolitan Governance (Stanford: Stanford University Press). Robertson, R. (1992), Globalization: Social Theory and Global Culture, (London: Sage). Scheuerman, William E. (2004), Liberal Democracy and the Social Acceleration of Time (Baltimore: Johns Hopkins Press, 2004). Scholte, Jan Aart (2000), Globalization: A Critical Introduction (New York: St. Martin’s).   

The Vaginal Spermicide Essays

The Vaginal Spermicide Essays The Vaginal Spermicide Paper The Vaginal Spermicide Paper The Vaginal Spermicide   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A vaginal spermicide is a sperm killing chemical sold over-the-counter in the form of cream, jelly, foam film, vaginal supposition or tablet. Each product and form is different so the user has to read package instructions carefully to ensure proper use and maximum effectiveness of the product. The spermicide is applied before sexual intercourse and allowed to remain in the vagina for the next 6-8 hours without douching or rinsing to ensure that all sperms are killed. The vaginal spermicide is said to have a failure rate of approximately 21% per year. It is, therefore, less effective compared to other artificial forms of contraceptive like the condom or pill although this contraceptive method is usually used along with another method, and thus serves as additional instead of the primary precautionary measure. It does not protect the couple from sexually-transmitted infection as it allows for the exchange of fluids during intercourse except that the chemical component of the spermicide kills the sperm cells. There are also reports of itchiness from some users. Aside from this, another drawback for this method is the trouble it incurs upon the woman because she could not wash her vagina hours after intercourse. It cannot be used, therefore, for unplanned sex in the middle of the day or work. It is also not permanent and is effective for one period of sexual intercourse only.

Japanese Writing Systems

Japanese Writing Systems Kanji was introduced to Japan nearly 2,000 years ago. It is said that 50,000 kanji characters exist, though only about 5,000 to 10,000 are commonly used. After W.W.II, the Japanese government designated 1,945 basic characters as Joyo Kanji (commonly used kanji), which is used in textbooks and official writings. In Japan, one learns about the 1006 basic characters from Joyo Kanji, in elementary school. A lot of time is spent at school learning kanji. It would be very helpful for you to learn all the Joyo Kanji, but the basic 1,000 characters are sufficient to read about 90% of the kanji used in a newspaper (about 60% with 500 characters). Since childrens books use less kanji, they would be a good resource to practice your reading. There are other scripts to write Japanese beside kanji. They are hiragana and katakana. Japanese is commonly written with a combination of the all three. If you want to learn Japanese writing, start with hiragana and katakana, then kanji. Hiragana and katakana are simpler than kanji, and have only 46 characters each. It is possible to write an entire Japanese sentence in hiragana. Japanese children start to read and write in hiragana before making an attempt to learn some of the two thousand kanji commonly used. Here are some lessons about Japanese writing. Hiragana LessonsKatakana LessonsKanji Lessons

Politics Essay Example | Topics and Well Written Essays - 750 words - 1

Politics - Essay Example To be specific he labeled it as a ghost or counterfeit of a part of politics (Plato) Socrates found it shameful but nonetheless revealed that what Gorgias and Polus claims to be an art may be considered under flattery. It is a persuasion not done by organized logic but a form of flattery which reveals that it is not genuine (Plato). To elucidate on this concepts, Socrates used the concepts of medicine and gymnastics as masked by cookery and tiring respectively and as such are knavish, false, ignoble and illiberal (Plato). They are deceitfully overlaid with lines, colors, enamels, garments creating a spurious beauty to the neglect of the true beauty (Plato). Having said this, Socrates considers rhetoric lower than art, not a work of a scholarly person and is fake. Socrates also highlighted the point that rhetoricians can fall to injustice as opposed to Gorgias’ claim that it is to be of noble purpose such as the purpose of those in the field of medicine (Plato). In contrast Socrates refuted that rhetoric can be unjust as evidently given by Polus as an example. As fake, rhetoric cannot be used by men of justice but is associated with perverse men who desire not the good of the society but the pursuit of their own self-interest as seen with the tyrants, who are seen to kill, despoil or exile anyone whom they please (Plato). Men of the state can be rhetoricians who can persuade citizens but not do justly. In the end, Socrates considered them pitiful and definitely not to be envied as he considers the sufferers more blessed than those who bring suffering (Plato). In the end, he even cited that the man who does what he wills even though it is evil is not necessarily powerful because power is evidenced by what is good. A deep stab to the integrity of politics is Socrates’ assertion that rhetoric is under flattery and therefore not genuine. This is a painful truth that everyone

Environmental Issues of Canada Essay Example | Topics and Well Written Essays - 1500 words

Environmental Issues of Canada - Essay Example Enveloped with a coastline of 202,080 kilometers, extensive wilderness areas, plentiful of minerals, energy, farmland, Canada is a trillion-dollar class affluent society (The World Factbook - Canada, 2009). The Canadian people take immense pride in their national heritage. The two common unifying Canadian values often reported are: multiculturalism and love of nature (Angus, 1997). David Suzuki observes that Canadian people value and take care of their country's natural wealth. In a major academic study at Simon Fraser University which used the data published by the Organization for Economic Cooperation and Development (OECD), shows how Canadian Government is failing their own citizens. Writing about Canadian Government, Suzuki states; "we are not living up to our own expectations, let alone the international vision of our great country. Without a clear sustainability plan, and a monitoring system to mark our progress, we risk falling further behind (in preface to Simon Fraser University report, 2005)." The Simon Fraser University (SFU) report gave environmental performance rankings to OECD countries based on average rank on 29 environmental indicators. Canada stood at rank 28 out of 30, with USA and Belgium standing poorer than Canada (2005). It is interesting to note that Canada showed no improvement in rank relative to OECD countries between 1992 and 2002. The report also highlights that Canada's worst performance is on environmental indicators related to: volatile organic compound emissions, carbon monoxide emissions, and generation of nuclear waste. The SFU report also mentions Canada's ranking in environmental performance form other studies such as, the University of Victoria report, 28th rank of 29 in 2001; the Conference Board, 9th rank of 24 in 2004; the Yale Environmental Index, 69th rank of 146 in 2005. Of course the OECD report referenced in SFU study has some glaring methodical failings. For example: Canada ranked 27th in forestry based on its annual per capita harvest of trees, whereas Iceland, which has virtually no trees, ranked first. If the rankings had been based on harvest per hectare of forested area, Canada would have ranked 6th rather than 27th. In pesticide use, Canada ranked 22nd based on its annual per capita consumption, but on a per hectare basis Canada would have ranked fourth. The point of contention is that whilst indicators have a guidance value, in themselves, they may not paint the 'perfect truth value.' As a matter of fact, there are different versions of truth. As Boyd points out, the World Economic Forum's Environmental Sustainability Index, aimed at measuring the long term environmental prospects ranks Canada fourth out of 142 nations (2003). In other words, the versions of truth vary depending upon assumptions made and perspectives of survey. The Canadian Government and industry, for instance, have another story to tell. They claim that Canada has adequate policies and practices in place that has improved Canada's track record as the environment conscience keeper. In particular, recent surveys