US IT outsourcing to increase at 5.9 per cent
New York: According to a new report the IT outsourcing market in the US is expected to increase at a compounded annual growth rate of 5.9 per cent, from $13.3 billion in 2006 to $17.7 billion by 2011. There will be a continued shift within federal market away from a government-owned, government-operated model towards a contract-operated approach, the report said. It said the shift is fuelled by the impending federal IT workforce shortage, war in Iraq, and federal contract spending slowdown.

Prepared by INPUT, the group which helps companies develop federal, state, and local government business and has 1,300 members, including small specialised companies, new entrants to the public sector and the largest government contractors an d agencies.

According to the report, perhaps the most important factor leading towards a greater reliance on outsourcing in the future is the fact that a significant portion of the federal technology-related workforce is entering retirement age.
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Mobile phone sales zoom to 109mn in China
Beijing: Sales of mobiles phones are zooming in China and touched 109 million units in 2006, which is 28 per cent higher than in 2005. The figure makes up one tenth of the world's total handset sales. The report from Norson shows that new mobile subscribers last year were mainly from middle and low-end users which boosted the sale of cheap cell phones. According to the report, the percentage of handsets below 1,000 yuan (USD 128.2) increased from 29 per cent in the first quarter of 2005 to 52 per cent in the fourth quarter of 2006. The combined market share of Nokia and Motorola in China was more than 50 per cent in the second quarter of 2006 and kept rising in the third and fourth quarters.
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