Tech and business news from around the region. InterNap regains NASDAQ listing
Atlanta-based InterNap Network Services Corp. recently got approval to move back to NASDAQ.
Atlanta-based InterNap, which provides performance-based routing services for IP networks, will return to its original stock symbol INAP. Since 2004, InterNap stock has been trading on the American Stock Exchange under the symbol IIP.
IT worker confidence plunges
Worker confidence among IT professionals fell substantially in August, as the sector’s Hudson Employment Index dropped 9.4 points to 103.1 in August. Despite the decline, the latest reading is substantially higher than last August, when it registered 97.5. Based on responses from approximately 9,000 workers nationwide across all industries, the composite index rose one point to 102.9 in August.
The Hudson Index for IT workers also showed:
* After a record-high 21 percent of workers rated their finances as excellent in July, only 14 made that statement in August. There was also a five-point drop to 44 percent in the number of workers who said their financial situation was improving.
* Similarly, the number of workers expecting their employer to hire fell from a near record-high of 40 percent to 31 percent.
* While only one-quarter of the work force was concerned about job security in July, 28 percent shared that sentiment in August.
Earthlink loses Minneapolis contract
The City of Minneapolis recommended that city officials select US Internet as the contractor for its planned citywide wireless service.
US Internet, in Minnetonka, Minn., was competing with Atlanta-based EarthLink Inc. for the 10-year contract.
The contract calls for the city to pay $2.2 million in advance, and not less than $1.25 million per year for the first 10 years of the contract, according to a city staff report.
The Wi-Fi service will be available citywide, and is expected to cost subscribers $20 per month, not including the cost of a modem. Business subscribers would pay $10 more per month for the service.
EarthLink already has municipal Wi-Fi projects in New Orleans; San Francisco; Milpitas, Calif.; Anaheim, Calif.; Pasadena, Calif.; and Philadelphia.
Intelligent Systems sells Horizon interest
Norcross-based Intelligent Systems Corp. has divested its minority interest in Horizon Software Inc. in a $5.7 million transaction.
On Aug. 31, Intelligent Systems sold its entire holdings of series A preferred shares of Horizon to Horizon Software Holdings Inc., an entity comprised of Horizon’s founder and other officers of the company. Intelligent Systems said it sold the Horizon stock for $5.7 million, consisting of $2.85 million in cash at the closing and a secured promissory note of $2.85 million due Jan. 31, 2007.
Horizon Software is a privately held, Loganville, Ga.-based software company.
Survey tracks outsourcing trends
Venice-based software developer and consultant Venice Consulting Group released a new survey measuring the sentiment of executives on the subject of IT offshore outsourcing.
The survey found that while companies believe outsourcing is here to stay, their preference is to have a client contact that is located in the US. Another finding that indicates a shift away from traditional outsourcing to countries such as India shows that an overwhelming majority — over 85 percent — prefer an offshore outsourcing partner in the same time zone.
Other major findings include:
* Despite all the talk of offshore outsourcing, the majority of respondents (66 percent) have not outsourced an IT project to an offshore firm suggesting further room for growth of the market
* Main drivers for outsourcing continue to be cost savings and lack of internal resources
* Mexico and Canada are the most preferred countries to outsource IT projects
* Database and Web site design led the way in the most likely projects to be outsourced
The survey was sent to over 89,000 executives of large and mid-sized companies, and focused specifically on sentiment regarding the outsourcing of IT projects to offshore firms.
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