IT Services vs. Product Companies

IT Services vs. Product Companies

Having worked in the IT service industry people have different experiences. Lots of the differences are obvious but the more I get to understand the rhythm of a product company the more I see the similarities too. Just to get us on the same page, here’s my definition of each type of company.

Service companies (SC) build software at the request of their clients - typically at an hourly rate or on a fixed price contract. The client drives the requirements and time constraints and ultimately owns the output of the engagement.

Product companies (PC), on the other hand, build software too but sell the software itself, rather than their time, to their clients. While clients do influence the features that are delivered and the definition of the requirements the ultimate decisions lie with the software company.

Some of the differences include,

Freedom to change - a PC has a lot more freedom to change the scope and timeframe of software features. Ultimately they run the show and decide what to implement and when to deliver it. Interestingly a lot of what has been written about agile software processes originated from PCs where the freedom to redefine and delay scope are critical. Success with agile practices in SCs is limited.

Solution Longevity – a successful PC invests in a product and reaps the rewards, through sales, over the life of the product. The product will evolve to meet new demands and include new features but the longer it stays around the better. SCs often build solutions to solve specific business problems at a given point in time. There is rarely enough scope to design the solution to last. It’s almost expected that in a few years it will be cheaper to build it again – from scratch – to meet the inevitable difference business requirements and processes. How many solutions built by a SC have lasted 30 years like Microsoft Word!

Incremental Improvement – a SC typically has one chance to get it right. They sign a contract to say they’ll deliver a working solution in 6 months, they deliver it and and may never get to see it again other than supporting bug fixes and small enhancements. A PC's product will go through multiple production releases, each time there is an opportunity to incrementally improve the solution - its architecture and implementation.

SC Earning Potential - the earnings of a SC is limited to the number of productive staff they have – it is not possible to earn more than when all productive staff are charging all their time to a client.

PC Earning Potential - the earnings of a PC is limited to the number of clients that buy their software – this can range from nothing, if your product sucks, to heaps, if it doesn’t.

Great Ideas – implementing great ideas (that attract/impress clients) in your software could dramatically increase a PC’s potential revenue – for a SC it will simply mean the client pays you or at best asks you to do some more work for them.

Some of the similarities are also interesting though.

Pressure to Deliver – both types of companies are under pressure to deliver. Whether it’s because a client is freaking out it’s taking too long or your sales team are screaming at you for the next killer feature to sell – building software has its tough side.

Compromise – pressure to deliver, limited resources, staff skill levels… all these things conspire to ensure you will always have to compromise, take shortcuts, repeat code, etc. that’s just software. There is no perfect solution and you could always of done it better.

People are Important – it’s true that for any company people are a crucial part of their success. Motivated, valued and supported staff will be way more likely to be productive, responsible and happy.

Supporting Your Code - PCs and (most) SCs both have to support the code they write. This means that code quality is an important factor.

Specialisation – as any company increases in size there is a tendency towards specialisation. At Intergen it happened across the different Microsoft products – we had specialists in ASP.NET, SharePoint, CRM and NAV and once you became associated with a particular product it was hard to move on. This is symptom of the increasing complexity in software – no one person can know everything and as any company gets bigger the only way to scale is for people to become experts in a given area.

Some things that might be differences or could just be from my experience only.

Testing - PCs take testing more seriously. At Xerox, testers are involved from very early on in the process and throughout the process. If a tester says it’s not ready to go live it doesn’t go. At SCs I’ve worked at testing is either pushed on to the client or internal testers are asked to stand at the software train station and check everything’s OK as the express races past (but it’s OK since the developers have already tested their code! Yeah, right.).

Work Units - since the earning potential of a SC is directly related to the number of staff they have (unlike PCs) it is tempting for SCs to depersonalise their staff and treat them as “work units” – ordering in more when they have the work and getting rid of some when the work dries up. I’m not saying this doesn’t happen at PCs but there is more chance (especially in the early stages of a PC’s growth) that employees, regardless of their position within the company will feel a sense of common purpose.

Personally, I've always found PC work far more satisfying. 
Not without its stresses, at times, but that feeling that you're part of a greater good, and empowered to innovate, and actually make a difference has always felt stronger with PC projects I've worked on.

Differences are so not simple. Take the longevity for example. If you work on big projects maintenance phase is usually very long and often very intensive. Actually many systems which have many of so-called change requests. Sometimes these are minor changes but sometimes they could be easily compared to original development.

I look at it a bit differently - at the development level working on custom software is more like working on a series of smaller products. The biggest difference is of course in product management. If you work on products it is located inside the organization, if you work on custom software it is outside.

Experience with the solution longevity may be skewed by working too long in Govt. - the number of times Millions spent on a project to then drop it and do something different is scary. This is rarely an option for a PC - once you've committed, pulling out could be a death sentence. At the Govt still get to spend our taxes on the next project! But I get your point - there are always exceptions.
In this particular case our problem was the app was really crappy so every change cost us a lot in terms of paying technical debt off. That's why we wanted to terminate maintenance of the system. Client's answer was "We don't make money on this app really, but our competitors still maintain theirs so we can't witch off this one."
But I agree that on average software products have longer time span than custom application.

What does a server do?

What does a server do?

A server is a computer that serves information to other computers. These computers, called clients, can connect to a server through either a local area network (LAN) or a wide area network (WAN), such as the Internet.

There are a number of different types of servers, including Web servers, mail servers, and file servers. A web server serves Web pages to computers that connect to it. It also can parse scripting languages such as PHP, ASP, and JSP. A mail server stores users' e-mail accounts and sends and receives e-mail messages. For example, when you send an e-mail to a friend, the message is sent by a mail server, using the SMTP protocol. A file server is a computer that stores files that can be accessed by other computers. File servers are often used within local networks and typically require a password or some kind of authentication to connect to it.

These are a few examples of some common servers, but several other types of servers exist. Just about any computer can be used as a server if the necessary server software is installed on it. While servers typically don't need a lot of processing power, lots of RAM and fast hard drives are helpful for dealing with heavy traffic to and from the server.

A server is a system (software and suitable computer hardware) that responds to requests across a computer network to provide, or help to provide, a network service. Servers can be run on a dedicated computer, which is also often referred to as "the server", but many networked computers are capable of hosting servers. In many cases, a computer can provide several services and have several servers running.

Servers operate within a client-server architecture. Servers are computer programs running to serve the requests of other programs, the clients. Thus, the server performs some tasks on behalf of clients. The clients typically connect to the server through the network but may run on the same computer. In the context of Internet Protocol (IP) networking, a server is a program that operates as a socket listener.

Servers often provide essential services across a network, either to private users inside a large organization or to public users via the Internet. Typical computing servers are database server, file server, mail server, print server, web server, gaming server, and application server.

A server is a computer that provides data to other computers. It may serve data to systems on a local area network (LAN) or a wide area network (WAN) over the Internet.

Many types of servers exist, including web servers, mail servers, and file servers. Each type runs software specific to the purpose of the server. For example, a Web server may run Apache HTTP Server or Microsoft IIS, which both provide access to websites over the Internet. A mail server may run a program like Exim or iMail, which provides SMTP services for sending and receiving email. A file server might use Samba or the operating system's built-in file sharing services to share files over a network.

While server software is specific to the type of server, the hardware is not as important. In fact, a regular desktop computers can be turned into a server by adding the appropriate software. For example, a computer connected to a home network can be designated as a file server, print server, or both.

While any computer can be configured as a server, most large businesses use rack-mountable hardware designed specifically for server functionality. These systems, often 1U in size, take up minimal space and often have useful features such as LED status lights and hot-swappable hard drive bays. Multiple rack-mountable servers can be placed in a single rack and often share the same monitor and input devices. Most servers are accessed remotely using remote access software, so input devices are often not even necessary.

While servers can run on different types of computers, it is important that the hardware is sufficient to support the demands of the server. For instance, a web server that runs lots of web scripts in real-time should have a fast processor and enough RAM to handle the "load" without slowing down. A file server should have one or more fast hard drives or SSDs that can read and write data quickly. Regardless of the type of server, a fast network connection is critical, since all data flows through that connection.

CLOUD SERVER HOSTING

Cloud server hosting is a type of hosting in which hosting services are made available to customers on demand via the Internet.  Rather than being provided by a single server or virtual server, cloud server hosting services are provided by multiple connected servers that comprise a cloud. Cloud server hosting is also sometimes referred to as cluster server hosting or server on-demand hosting.

Cloud server hosting offers the advantages of increased accessibility and reliability, seamless scalability and potential cost savings, as customers are freed from having to invest in on-premises servers and hardware, and they pay only for the resources they consume.  On the other hand, security and lack of access and full control are potential concerns with cloud server hosting

WEB SERVER

Web servers are computers that deliver (serves up) Web pages. Every Web server has an IP address and possibly a domain name. For example, if you enter the URL http://www.pcwebopedia.com/index.html in your browser, this sends a request to the Web server whose domain name is pcwebopedia.com. The server then fetches the page named index.html and sends it to your browser.

Any computer can be turned into a Web server by installing server software and connecting the machine to the Internet. There are many Web server software applications, including public domain software from NCSA and Apache, and commercial packages from Microsoft, Netscape and others

PROXY SERVER

A server that sits between a client application, such as a Web browser, and a real server. It intercepts all requests to the real server to see if it can fulfill the requests itself. If not, it forwards the request to the real server.

Proxy servers have two main purposes:

Improve Performance: Proxy servers can dramatically improve performance for groups of users. This is because it saves the results of all requests for a certain amount of time. Consider the case where both user X and user Y access the World Wide Web through a proxy server. First user X requests a certain Web page, which we'll call Page 1. Sometime later, user Y requests the same page. Instead of forwarding the request to the Web server where Page 1 resides, which can be a time-consuming operation, the proxy server simply returns the Page 1 that it already fetched for user X. Since the proxy server is often on the same network as the user, this is a much faster operation. Real proxy servers support hundreds or thousands of users. The major online services such as America Online, MSN and Yahoo, for example, employ an array of proxy servers.

Filter Requests: Proxy servers can also be used to filter requests. For example, a company might use a proxy server to prevent its employees from accessing a specific set of Web sites.

DEDICATED SERVER

A dedicated server is a single computer in a network reserved for serving the needs of the network. For example, some networks require that one computer be set aside to manage communications between all the other computers. A dedicated server could also be a computer that manages printer resources.

Note, however, that not all servers are dedicated. In some networks, it is possible for a computer to act as a server and perform other functions as well.

In the Web hosting business, a dedicated server is typically a rented service. The user rents the server, software and an Internet connection from the Web host.

APPLICATION SERVER

Also called an appserver, an application server is a program that handles all application operations between users and an organization's backend business applications or databases.

An application server is typically used for complex transaction-based applications. To support high-end needs, an application server has to have built-in redundancy, monitor for high-availability, high-performance distributed application services and support for complex database access.

Are my files really safe if I store them in the cloud?

Are my files really safe if I store them in the cloud?

Storing your data on cloud servers is easier than ever -- many services offer drag-and-drop interfaces and seamless automatic backup.

Now when you have saved all your important and confidential information and data in clouds thus comes a question- where these servers are? and if they keep Your Information Secure

The days of keeping all your documents, photos and music on your computer's hard drive are gradually coming to a close. Today, cloud storage is helping to solve the ever-present need for more storage space to hold all of your digital property. But is all your personal data safe out there on the 

Internet?

To answer this question, we need to examine two things. First, we need to decide what constitutes data security. Is password access to the storage sufficient, or should files be fully encrypted on the storage device? Some of that will be up to you, but everyone should note these important security points:

Passwords can be hacked. This doesn't mean that passwords aren't safe, just that they're vulnerable to dictionary. If you choose a cloud storage solution that relies on a password to access your data, choose a password that's difficult to hack with dictionary attacks, and change your password often to reduce the chances of success from brute force attacks.

Most storage services will encrypt the data while it's traveling back and forth, making it impossible to read even if someone captures the files. If your cloud storage works through a Web app, look for "https" instead of "http" in front of the URL in your browser's address bar. That extra "s" indicates the form is using secure HTTP. If you have a standalone cloud storage app installed on your computer, check to be sure that app uses some type of encryption for its Internet exchanges.

People are more dangerous than computers when it comes to hacking. Don't give out your password to anyone, even someone claiming to be from technical support. One of the biggest dangers for security is social engineering: creating a trust between the hacker and the end user that causes the end user to happily hand over personal information. Note that when you speak with the real technical support specialists, they'll require only minimal identifying information from you, and most likely not your password.

Hackers usually want the most information for the least effort. This means they will likely attack the heart of a cloud storage service rather than its individual users. Thus, you probably want to find a service provider with a good history of keeping its clients' accounts and data secure.

Your data isn't always immune to search by local government entities. In the U.S., for example, any cloud storage company could be served a subpoena requiring them to open their clients' data for government examination.

We also need to look at cloud storage providers to see which ones are doing the most to keep your information safe. Next, let's look at how the major cloud storage providers protect data and go over some tips for choosing a safe cloud storage service.

Safe Cloud Storage Options

When you're shopping for a cloud storage service for your files, you'll probably start by considering what you plan to store and how you need to access it. Along with that, determine how important it is to keep that information secure. For example, if you're storing important documents about your medical history or home finances, you may be more concerned about keeping your data safe than you would, say, music files from CDs you've ripped. Here are some safety features to look for when you're choosing or opting for a cloud storage service:

A company with a reputation for excellent physical and network security

Multiple-level redundancy, meaning there are multiple copies of your data to prevent loss in the case of a single disk or server failure

Redundancy across multiple geographic locations, so when a natural disaster destroys your data at one location, that same data is still available elsewhere

How long it takes to delete a file across the redundant servers in the cloud, or if it's ever truly deleted from the cloud storage banks

Cloud security hasn't been as rigid for end-user storage services as it has for enterprise-level clouds. As a result, even the top cloud storage options available to you have some vulnerabilities. While these vulnerabilities are probably not a big concern for most users, they are worth noting if you decide to store sensitive personal information. The following are just a couple of examples:

Dropbox -- Dropbox is simple and sufficient for most users, encrypting your data while it's in transit over the Internet. In its simplicity, though, it did leave a couple of security holes. First, it left local authentication protection up to its users. All you need to sign in from another computer is a copy of your Dropbox configuration file, so you're responsible for limiting access to your local computer. 

Dropbox also leaves the names of your files in plain text. It's up to you whether you want a third-party security application to encrypt and decrypt the data in the folder you're synchronizing locally to protect filenames and prevent anyone from reading that data without your additional decryption keys [sources: G.F., Newton].

Amazon Cloud Drive -- Amazon stands toe-to-toe with Dropbox when it comes to simplicity and availability across platforms. Amazon is also up front about one of your security risks. In its user agreement, Amazon Cloud Drive declares its right to access your files and disclose account information to offer support and to ensure compliance with that agreement. Since the Cloud Drive offers streaming of MP3, this is largely to enforce copyright law regarding music. If you want to protect those files, you'll have to give up the streaming option for media files and use a third-party encryption app for all the data you synchronize to the Cloud Drive [sources: Vaughan-Nichols, Raphael].

Know the limitations of your cloud storage service before you start uploading.

  

How a Cloud Antivirus Works

Whether you have years of computing behind you, or you've just bought your first laptop or desktop, you're probably familiar with the need to protect computers from viruses. A virus is a software program that installs itself on your computer and makes undesirable changes to the data on your computer. Though there are rare viruses designed to target offline computers, we're talking about malicious software (malware) you can pick up from the Internet.

To prevent malware from attacking your data, you can use antivirus software. One antivirus option is a technology called cloud antivirus. Cloud antivirus software does most of its processing elsewhere on the Internet rather than on your computer's hard drive. Internet technology like cloud computing has made such innovations both possible and affordable.

Cloud antivirus software consists of client and Web service components working together. The client is a small program running on your local computer, which scans the system for malware. Full locally installed antivirus applications are notorious resource hogs, but cloud antivirus clients require only a small amount processing power.

The Web service behind cloud antivirus is software running on one or more servers somewhere on the Internet. The Web service handles most of the data processing so your computer doesn't have to process and store massive amounts of virus information. At regular intervals, the client will scan your computer for any malware listed in the Web service's database.

Here's a summary of the advantages cloud antivirus has over traditional, locally installed antivirus software:

You have access to the latest data about malware within minutes of the cloud antivirus Web service learning about it. There's no need to continually update your antivirus software to ensure you're protected from the latest threats.

The cloud antivirus client is small, and it requires little processing power as you go on with your day-to-day activities online.

It's free! You can get an impressive level of virus protection from the free versions of cloud antivirus software. You can also purchase upgrades for additional utilities and support, for prices that are competitive with popular local-only antivirus applications.

Now that you know what cloud antivirus is, let's look at the features of cloud antivirus software and how you can use them to keep your system clean.

Cloud Antivirus Features

If you have any experience using antivirus software, the user interface (UI) of cloud antivirus software should look familiar. After all, its primary job is the same as any other antivirus application: Scanning your computer to identify and clean up any malware. Therefore, you'll find these common functions in a cloud antivirus UI:

Scan the entire computer or certain folders on the computer.

Adjust when to make automatic scans and what files to include in them.

View detailed reports to see what malware was detected during a scan.

Take actions to remove or restore any quarantined files, or files that were neutralized in some way until you decide to restore or delete them.

The unique features in cloud antivirus are those you won't see in the UI. We've already seen that cloud antivirus splits its tasks between your computer (a client application) and Web servers elsewhere on the Internet. Because of this split personality, cloud antivirus can leverage resources from across the Internet to better defend your computer against malware. For each cloud antivirus product, these resources come together to form a central database of malware data.

This malware data is collected in different ways depending on the product. For example, Panda Cloud Antivirus gets data for what it calls its Collective Intelligence from IT and software industry resources, honeypots (computers used to trap malware) staged worldwide and feedback from customers [source: Ilascu]. Immunet Free Antivirus depends on its entire community of users (the 

Immunet Cloud) to learn about potential threats, adding the data to its Collective Immunity technology [source: Immunet]. Cloud antivirus servers run algorithms on the data to classify malware by different qualities, including level of threat.

What makes these malware databases special, though, isn't just their collection techniques. Their real advantage is how quickly they can make that data available to you. Rather than waiting to download some big patch for your antivirus software every few weeks, your computer can scan for the latest threats while you're online, catching them within minutes of their addition to the database.

For offline access, a cloud antivirus product might keep a cache of malware data on your local computer. The cloud antivirus software can keep this cache up-to-date as long as you're online. This cache won't include the entire database of malware threats, but it will include malware that presents the most common threats to your computer.

So far, we've looked at the general features of cloud antivirus software. For a better idea of what this looks like, let's examine the user interface for one of these cloud antivirus products.

what is the difference between Operational HR Management & Strategic HR Management

Operational HR Management Vs. Strategic HR Management

Operational HR management and strategic HR management are two sides of the same entity. Operational HR sees to the day-to-day operations essential to meeting the needs of your employees, while strategic HR management concerns itself with predicting outcomes and ensuring that your company has enough of the most qualified human capital to reach its goals. Both facets of human resources are fundamental components that can lead your business to success.

Operational

Performing operationally, human resources staff members are top-level administrators. The tasks they accomplish are generally highly visible to your employees because they are focused on the daily work issues attributed to the ongoing needs of your team. These include vital tasks such as recruitment, interviewing and hiring, and risk management. Operational HR management may use and maintain computerized HR information systems, and may also oversee your payroll department.

Strategic

Strategic HR management requires that HR professionals consider the overall picture of your business’s growth, implementing ways to make a direct contribution to your long-term goals. Strategic HR is integral to the future planning of your business as it relates to employees. In a strategic capacity, HR staff members attempt to project future business needs and work to develop current employees and programs to meet those needs. Looking into the future, HR teams may consider many options to keep your business competitive and growing, including outsourcing certain jobs.

Operational HR includes the management of workers’ compensation issues, health benefits and compensation reviews. It may involve employee counseling and coaching, the creation of employee rewards programs, and developing social programs to engage employees. Attending operational meetings with line managers, as well as devising and implementing training programs, may be part of an operational HR manager’s day. A chief function for operational HR staff members is keeping abreast of employment laws and making certain they are consistently followed.

Strategic HR Examples

Human resources personnel working strategically generally focus on increasing employee productivity and your return on investment, with the intent of moving your company forward. To achieve these ambitions, HR staff members may evaluate the state of the current economy, and review the technical expertise of your current workforce in relation to it. Strategic HR managers may evaluate your employees and make recommendations for workers to participate in specific development programs. HR personnel may also plan strategic restructuring options, or explore ideas for collaboration with a similar business.

What are HR Metrics & Knowing How to Use them

What are HR Metrics & Knowing How to Use them

HR’s challenge is to provide business leaders with actionable information that helps them make decisions about investments, marketing strategies and new products. It is how organizations measure the value of the time and money spent on HR activities in their organization.

But HR metrics can help you know strengths and weaknesses within a company and allow you to understand which areas you need to focus on improving. HR metrics are invaluable for assessing your business and devising strategies. 

The most helpful HR metrics and what they can tell you about your company.

Cost Per Hire – One of the most commonly used HR metrics, this can tell you just how much it really costs your company when you hire a new employee. It is the cost associated with a new hire. It is not only important to know how much it cost in hiring, but it is also important to see if the money spent is used to hire right people. Several factors become part of cost-per-hire metrics, such as the time recruiters and employers spend sourcing and interviewing candidates. This step can be as detailed as time expended researching job posting venues, locating venues that attract a diverse group of qualified applicants and the actual task of posting job postings. Other factors included in cost-per-hire metrics include staff time for interviewing candidates, the cost of pre-employment assessments, processing new employee packets and the cost of providing new-hire orientation, such as trainers’ staff time and the cost of materials, lunches and uniforms.

Revenue Per Employee – These HR metrics help you find just how much each one of your employees is actually earning for your company.

Absence Rate – One of the simplest HR metrics, this one gives you a look at just how many days your employees are missing and could indicate employee satisfaction rates.

Benefit Cost – These HR metrics will give you an overview of just what your benefits package costs you per employee.

Satisfaction – One of the more difficult to gauge HR metrics that tells you how satisfied your employees are.  Satisfaction is more abstract, and surveys are the only real way to gather the needed info for these HR metrics.

Turnover – These HR metrics are straightforward and give you a look at how many employees leave your company in a given year.

Tenure – Conversely, these HR metrics help show the average amount of time that your employees have been with the company.

Turnover Costs – These HR metrics can surprise many employers and help show you just how much it costs you when you lose an employee based on separation costs, vacancy costs, new hiring costs, and new training costs.

Time to Fill – These HR metrics help highlight the efficiency of your HR department and measure the time it takes them to fill a vacant position in your company. 

HR expense factor- It is the ratio between total company expense and HR expense. It shows if the expenses on HR practices are too much in terms of the whole company expense.

ROI for Training: It is the total financial gain an organization have from a particular training. It shows the effectiveness of the training program and how much it can benefit to the company after the training.

Developing company’s core competency- It helps to demonstrate the connection between HR practices and its effects on organization’s abilities to gain and sustain their competitive advantages. This approach often treats employees as their human capital instead of the expense.

Revenue factor: It indicates the effectiveness of company operation with the use of the employees as their human capital.

Human Capital- There is a tool for HR to measure the human capital and it is called Key Performance Indicators (KPIs). It helps measure human capital outcomes, such as talent management, employee engagement and high performance, illustrates the firm's business, financial and strategic goals, and promotes partnership with senior management for organizational success. Recently HRs integrated the traditional metrics to KPI which aligned with the corporate objectives also. The best KPIs should be able to reflect the human capital performance, such as financial outcomes, performance drivers. The best way to design a good KPI is to discuss things with the company business managers who knows the jobs the best in their own departments.

HR Metrics and Data- Management makes decisions based on facts, not feelings or opinions. Many of the important decisions made affects the business and the bottom line; therefore, in order to convince business leaders that organizations are benefiting from their people or on the contrary, losing money and wasting resources, HR will need to provide data. This data can be found in HR Metrics as an evidence. The key to finding the right metrics for your organization needs is to identify the overall business needs as organizations may differ in terms of the metrics they use. Metrics used by the organization need to show data on how human capital strategy is effective and that organizations are acquiring, developing and deploying the proper talent. Organizations that have trouble deciding what metrics to use for their organizations can always enlist the help of a specialist or consultant to do a company-wide assessment on their organization.

Employee Engagement- As subjective as employee engagement may be, there is a way to calculate the presence of employee engagement. Employee engagement refers to the level of enthusiasm employees have about their jobs and the pride they have in the job tasks they perform. Self-reporting is the only way to produce metrics in this area; however, asking employee survey questions that elicit information can then be converted to metrics that tell employers if their employees are fully engaged. The most effective way to measure employee engagement is through asking identical sets of questions throughout the year. Questions such as “on a scale of 1 to 5, how do you rank your enthusiasm about your job” and “would you describe your commitment level as very high, average, or low” asked twice annually measure the percentage of employee responses and any shifts concerning employee engagement.

Workforce Productivity- Production-oriented work environments benefit from HR metrics that measure whether the company can meet business demands. Metrics are based on scenarios related to the number of employees, their positions and the amount of work they produce. Workforce metrics are also valuable in predicting production capabilities as well as forecasting workforce needs when turnover and attrition occur. Forecasting turnover and attrition may be largely based on historical reference, such as previous years’ figures that indicate how many employees resign voluntarily and how many employees resign of their own volition. Analyzing metrics pertaining to attrition – losing workers to retirement or resignation without plans to replace them – contributes significantly to measuring what the workforce is capable of producing. In this instance, HR metrics are useful in developing a staffing strategy in the case of reduced employee counts and steady or increasing productivity demands.

Below are some suggestions for organizations interested in tracking talent through metrics should consider the following:

• Percentage of performance goals met or exceeded, showing if the organization is meeting the performance goal aligned with its mission

• Percentage of employees' rate at the top performance appraisal level who are paid above average salary

• Percentage of top performing employees who resign for compensation related reasons

• Percentage of employees in performance enhancement programs that show improvement within a year.

Note: Personal Views- Other than number crunching and data analysis, metrics handling, will request HRs to handle employees in another way i.e use interpersonal approach because we (HRs) are dealing with Humans not any Software, Product, Commodity, Goods. Lastly it’s important to notify that “Business is People” because Customers, Clients, Employees all are people. And if company cares about its employees then employees will surely take care of the company.

Kindly share your thoughts…!!!

Which Mutual Fund Market Cap Suits You ? Different Funds, Different Market Caps

Which Mutual Fund Market Cap Suits You?

As a general rule, small-cap and mid-cap funds have outperformed large-cap funds, and the trend is not likely to change anytime soon. As a result, prospective investors need to have a strong understanding of market capitalization ("market cap") in order to effectively begin their search for mutual funds. 

Here we explain the differences between the various types of funds and look at the kinds of returns you can reasonably expect from them based on historical data.

Different Funds, Different Market Caps

When a mutual fund is described in terms of market cap (i.e., small cap, mid cap or large cap), it indicates the size of the companies in which the fund invests, not the size of the mutual fund itself. 

Market cap is calculated as the number of shares outstanding multiplied by the current market price of one share. Thus, a company with one million shares outstanding selling at $100 per share would have a market cap of $100 million.

Small-Cap Funds

Small-cap funds typically include companies with market capitalization of less than $1 billion (bear in mind that these numbers are only approximations that change over time, and the exact definition of these categories can also vary between brokerage houses). 

Generally speaking, smaller companies are those in the early stages of business. They are presumed to have significant growth potential, but are not as financially strong or as established as larger companies.

Because small-cap funds invest in companies that are less stable than large-cap companies, the funds can be quite volatile. This has its advantages and disadvantages. In times of market instability, small-cap funds can suffer greatly as less-established companies go out of business. On the other hand, small-cap funds can also be great investments for those who can tolerate more risk and are looking for more aggressive growth. 

Investors hoping for aggressive returns will certainly want to park some money behind these funds. Finally, many mutual funds cannot take substantial positions in small-cap stocks without filing with the Securities and Exchange Commission (SEC), and this usually means greater transparency when it comes to the fund's holdings.

Mid-Cap Funds

The most popular choice among the general investing public, mid-cap funds are those that invest in companies with market caps of $1 billion to $8 billion. Mid-cap companies share some of the growth characteristics of small-cap companies, but they entail less risk (at least in theory) because they are slightly larger. 

You might say that mid-cap funds are to the mutual fund market what mid-size cars are to the automobile market. The mid cap is a compact vehicle for the market, falling somewhere between those sporty little small caps and the massive SUV type large caps.

Mid-cap funds don't always move with the broader market, and they are also usually not as prone to violent swings as small caps. Mid-cap funds can be great investment vehicles for investors seeking a fund with great return possibilities - without the risk of small caps - and index-related returns like those of large caps.

Large-Cap Funds

Large-cap funds comprise companies with market caps of $8 billion or more - the "big fish" of Wall Street. However, because of their enormous size, large-cap funds are often forced to imitate a larger index, such as the S&P 500. This is because mutual funds have restrictions on the level of ownership they can have in any one company, which is generally no more than 10% of their outstanding shares. 

This results in large-cap funds being forced to buy large companies - the same ones that make up the major market indexes.

Large-cap funds can be great for investors who have longer-term investment timelines and would like to "buy and hold". There are many large-cap income funds that are great income vehicles for those who want to take on less risk. But for those seeking greater diversification in smaller, more aggressive companies, large-cap funds probably aren't the answer.

Looking at Returns

Once you understand the fundamental differences among small-, mid- and large-cap funds, it's important to look at real world returns to get a clearer picture of what is right for you.

Breaking It Down

Why have small and mid caps been producing greater returns than large caps in recent years? Generally speaking, small and mid-cap companies have the ability to produce greater returns through more agile and dynamic businesses that tend to be more growth oriented than larger conglomerates. 

Simply put, a company with a $1 billion market cap can much more easily double its entire market cap than a large conglomerate of $50 billion. And because share price is an important factor in measuring market cap, a rapidly growing market cap most often translates to the price of the stock climbing higher as well.

Of course, there will always be examples that buck the trend, but overall, the numbers show that small- and mid-cap funds are goods bets for higher returns.

Example

Consider this analogy: the small grocery store on the corner of your street is probably able to switch its products much more quickly than a mega-chain like Walmart, right? Although smaller companies may not have the same price influence as larger companies, they can tailor their products to a more specific audience to produce significant location and client-specific returns. Large-cap funds invest in larger companies, while small-cap funds take stakes in smaller, more sector-specific securities. So, 

when you invest in small-cap funds, it\'s like you have the opportunity to invest in 100 successful corner stores instead of a mega-company like Walmart.

Also keep in mind that when fund managers invest in smaller companies, they work very hard to ensure that the small and mid-cap companies are financially sound and have healthy management teams.

The Bottom Line

When you consider what type of mutual fund is right for your portfolio, it's crucial that you remember that there are many other factors to consider, including whether the fund specializes in growth, value or another investing style. What's more, you have to be able to distinguish between load or no-load funds, and determine whether you prefer open or closed-end funds.

As always, you need to do your homework and research the funds in which you are investing - mutual fund companies have been known to roll their bad funds into better performing funds. 

Understanding the pros and cons of the various market cap funds is a good first step to determining which funds best suit your portfolio and your investment style, but a savvy investor knows that his or her work is never done.

What is the difference between a call center and a BPO, KPO organization ?

What is the difference between a call centre and a BPO organization?

A Business Process Outsourcing (BPO) organisation is responsible for performing a process or a part of a process of another business organisation; outsourcing is done to save on costs or gain in productivity.

A call centre performs that part of a client's business which involves handling telephone calls. A call centre, for example, might handle customer complaints coming in over a telephone.

Thus, a call centre can be considered a BPO organisation. The converse is, however, not true because there exist BPO organisations, such as medical transcription agencies, which handle their business through websites, and do not process any telephone calls on behalf of their clients. 

Key Difference: BPO is the business that focuses on tasks, ranging from manufacturing products to providing customer care. On the other hand, a call center is the subset of BPO and mainly focuses on telephone calls.

BPO and call centers are often used interchangeable, but in reality there is a profound difference. Let’s get a brief knowledge on both the terms: BPO and call centers.

BPO, short for Business Processing Outsourcing, is the business that focuses on tasks, ranging from manufacturing products to providing customer care. It usually consists of the back office or front office operations. It is a process where number of people are working for a specific business. 

It is originally associated with the firms' production of goods for use or sale using labor and machines, tools, chemical and biological processing, or formulation, such as Coca Cola that outsourced large sections of its supply chain.

The trend started in the late eighties when businesses sent parts of their processes to be completed in foreign countries. It is helpful for those who are under-graduate or graduate and are not able to be employed in any company. 

If one has skill, he will definitely be employed in a BPO. Nowadays, it has become a fashion or trend for youngsters in some countries to work in BPOs just for time pass. Data entry, call centers are some examples of BPO operations.

On the other hand, call center is the subset of BPO. It is an office which mainly focuses on telephones calls. They receive or transmit large amount of requests by telephone in which one side is a receiver and the other side is a transmitter. Its purpose is to solve queries of the customers related to the particular company, brand, etc.

In addition to a call center, a company handling letter, fax, emails or some software is known as a contact center. Its a workstation where all the employees or workers need a computer and headsets through which they will be connected to the receiver calls and will be able to answer them. The calls can be consisting of telemarketing, survey generation, customer support, taking orders, and many other functions.

Thus, the call centers can be considered as BPO organization, however, this is not true because there are some BPO organizations which handle their businesses through websites, and they do not need to process telephone calls on behalf of their clients.

  

The key differences are listed in the table below:

	BPO	Call Center
Actual Work	A BPO is responsible for performing a process of another business organization.	A call center performs that part of a client's business which involves handling telephone calls.
Requires	Good communication skills and computer knowledge	Basic computer knowledge and fluently speak in any language
Services	Higher services than call centers	Lower services than BPO
Performs	One or two business operations of an overseas company	Work done over telephone lines

Redefining Business Process Outsourcing

For many years, businesses have approached business process outsourcing as a simple cost play - valuable, but limited in impact. A more structured approach is now emerging that infuses key business activities with technology levers to help organizations more precisely manage rule-based tasks and continuously increase process effectiveness and efficiency

When most companies think about business process outsourcing (BPO), they rarely think about process optimization. They reflexively engage in tactical thinking. Perhaps it's a provider moving routine work offshore, taking over system management or leveraging economies of scale in procurement. 

These “better, faster, cheaper” projects have their place in keeping the business trim – but they are not transformative initiatives that help organizations thrive in times of change. It's time for a wider definition of BPO.

Fortunately, BPO is becoming more focused on process optimization. Known as business process services, or BPS, this new approach marries the process and technology smarts of the latest reengineering and algorithmic thinking with the domain smarts of the people who run them.

It covers everything from simple task–based processes (such as payment processing or document management), all the way up to the knowledge–intensive, industry–specific processes that traditional BPO doesn't usually touch.

With BPS, the initial cost savings are dramatic, but the benefits go beyond the usual techniques of offshore labor and technology automation to the introduction of better skills and industry knowledge, new technology and re–engineered/optimized processes. 

On the other hand, core BPO may stop at initial cost savings, without any investment in wholesale changes to the way activities things are done. In an accounting engagement, for example, BPS can focus not just on continuous improvement, but also on generating value through working capital management, reducing days sales outstanding (DSO) and identifying possible fraud scenarios, among other high priorities.

Quick Take: Transforming Accounts Payable at a Strategic Level

To get an idea of how a BPS initiative works, consider our engagement with Jewson, part of Saint–Gobain and one of the world's most recognized construction industry companies. Over three years, we transformed Jewson's accounts payable processes using a range of approaches in concert: labor arbitrage, implementation of new technology systems (such as call management tools, OCR systems and data entry tools) and complete process realignment.

When business practices, technology and customer needs are changing so rapidly, your success – even survival – depends on making sure that your business is keeping pace. But since business resources are limited, those companies that resolutely focus on what their customers are demanding, continually innovating, are the ones that get ahead.

Anything that doesn't contribute to your customer obsession is a candidate to be outsourced. To be certain of quality delivery, you need to carefully select your partner. In our experience, an effective 

BPS provider will do the following:

Engage with you at a strategic level and collaborate with you over the long term, to take on processes that can be better delivered externally.

Take ownership of your processes, end to end, understanding how each process contributes to the business in the context of your particular industry.

Invest in continual improvement of service delivery and management, through innovative mixes of people, process and technology to deliver the service at hand.

Show you tangible results – both with cost savings and real enhanced revenue streams – and will be happy to bet on those results with gainsharing terms in their contracts.

  

KPO vs BPO: Difference between KPO and BPO

With the global outsourcing sector showing steady growth, despite the looming slowdown, there have been many KPO and BPO units coming up especially in the developing nations. For a layman, both seem one and the same thing but in reality there is profound difference in KPO and BPO. Let us first define both the terms.

What is BPO? 

Business Process Outsourcing or BPO is outsourcing of some of the business functions to a third party in order to save money. It usually consists of the back office or front office operations. While front office services are related to client interaction and customer support, back office services are related to finance and HR. If outsourcing is done to a company situated outside the parent company's country, it is known as offshore outsourcing.

What is KPO? 

Knowledge Process Outsourcing or KPO is a subset of BPO. KPO involves outsourcing of core functions which may or may not give cost benefit to the parent company but surely helps in value addition. The processes which are outsourced to KPOs are usually more specialized and knowledge based as compared to BPOs. Services included in KPO are related to R&D, Capital and insurance market services, legal services, biotechnology, animation and design, etc. are the usual activities that are outsourced to KPOs. LPO or Legal Process Outsourcing is special type of KPO dealing with legal services.

Difference between BPO and KPO, which one is better? 

As we saw earlier, BPOs usually deal with fringe business activities such as customer care, finance and HR and at the same time, the USP of a BPO is their being cost effective. Companies usually outsource such processes to BPOs which are not directly linked to its value chain. And the motive behind such outsourcing is directly linked to cost reduction. 

On the other hand, highly specialised and knowledge based services are outsourced to KPOs. These activities are directly related to core offering of parent company. The motive behind such outsourcing is not only to reduce cost but to get specialised solutions for which availing in-house resources might be tough.

The difference in BPOs and KPOs can also be judged by the way they hire people. While basic education may be enough for you to get a BPO job but a KPO job requires you to be competent in a particular field. Also, the training provided by the KPOs is more rigorous and sector specific. So if you are a 'Jack of all trades', KPOs may not be the right choice for you.

Even businesses outsourcing their services to KPOs do a more extensive research before giving a contract to a particular KPO, as a good KPO can be the differentiating factor between a good market offering and a bad one.

So if you compare the functionalities and expertise involved, KPOs are far better than BPOs, but both of them help businesses to streamline their operations and making them cost effective.

Why KPOs are emerging at a rapid pace now? 

1) Lack of highly qualified professionals in developed countries.

2) BPOs are shifting further east to Philippines and Bangladesh, thus India is exploring KPOs as the next big thing for them.

3) As the US Government is taking steps to reduce outsourcing, BPO will get hit the most, unlike skill based KPOs.