Offshoring and outsourcing in services from call centres to accountancy and medicine have created good jobs in terms of pay and working hours in
developing countries, according to a study published on Monday.
But the International Labour Organization (ILO) study found that improved work practices in the outsourcing industry could reduce excessive rates of staff turnover.
The study gives the lie to claims that outsourcing of such work has created "cyber-coolies" or "electronic sweatshops", said Jon Messenger, an ILO researcher and main editor of the study.
"The jobs being created in offshore business services in developing countries are reasonably good quality jobs by local standards in terms of wages and working conditions," he said.
The book looks at outsourcing in the two biggest markets, India and the Philippines, and two growing Latin American centres, Brazil and Argentina.
A study by the United Nations Conference on Trade and Development (UNCTAD) last year found the global market for information technology-enabled services was about $54 billion in 2008. The industry includes companies such as Infosys Technologies(INFY.BO) and Wipro(WIPR.BO).
100 PC TURNOVER
Wages are below those for similar jobs in rich countries -- one of the main motives for companies to outsource operations -- but average pay in the sector in India is nearly double that in other areas of the formal economy, the ILO study found.
In the Philippines they were typically 53 percent higher.
The study found that average weekly hours were 46-47 hours in India and 45 in the Philippines, whereas one fifth of workers in developing countries work more than 50 hours a week.
But negative factors such as frequent night work to handle customers' different time zones, and demanding targets enforced by electronic monitoring resulting in a low level of worker autonomy, led to extremely high levels of staff turnover.
Sometimes the turnover rate in the typically young and well-educated workforce could exceed 100 percent a year, and rates of 30-40 percent are not unusual.
"A few key changes in policies and practices could actually make these good jobs even better while simultaneously helping to reduce staff turnover which would benefit businesses," Messenger told a briefing.
These could include steps to improve health and safety for night workers, such as regular check-ups, and more flexibility for workers to organise their time and to meet targets.
Naj Ghosheh, an ILO researcher and the other editor of the book, said governments would want the industries to develop and innovate to move up the value chain rather than simply replicating imported processes. They would also want to retain skilled workers at home rather than encouraging them to emigrate.
The industry is highly influenced by language skills, with India and the Philippines serving English-speaking countries, Argentina serving Spain and Mexico building up operations to serve Spanish-speakers in the United States.
Africa is relatively underdeveloped although Nigeria's computer-literate population gives it potential.
Source: Economic Times
http://economictimes.indiatimes.com/articleshow/6160968.cms?overrideredirect=true
Wednesday, July 14, 2010
Desi BPO on UK co’s radar
UK-based business process outsourcing (BPO) company Vertex is scouting for takeover opportunities in India and has reportedly zeroed in on Spanco BPO — a 6,500-strong outfit.
With revenues of around Rs 75 crore, Spanco’s BPO division has three broad arms — one catering to the domestic market, the second, Spanco Respondez, catering to the UK market and the third, GKS, servicing Qatar-based banking clients. The deal size is said to be in the region of Rs 175 crore.
Spanco BPO’s biggest clients are Reliance Telecom, Videocon Mobile, Citi Financials and Kotak Mahindra.
Though both companies categorically denied that such a deal is on, sources close to the development say that a due diligence has already been done. If the deal goes through, Vertex would get a toehold in the Indian BPO market.
http://timesofindia.indiatimes.com/Tech/News/Outsourcing/Desi-BPO-on-UK-cos-radar-/articleshow/6158555.cms
With revenues of around Rs 75 crore, Spanco’s BPO division has three broad arms — one catering to the domestic market, the second, Spanco Respondez, catering to the UK market and the third, GKS, servicing Qatar-based banking clients. The deal size is said to be in the region of Rs 175 crore.
Spanco BPO’s biggest clients are Reliance Telecom, Videocon Mobile, Citi Financials and Kotak Mahindra.
Though both companies categorically denied that such a deal is on, sources close to the development say that a due diligence has already been done. If the deal goes through, Vertex would get a toehold in the Indian BPO market.
http://timesofindia.indiatimes.com/Tech/News/Outsourcing/Desi-BPO-on-UK-cos-radar-/articleshow/6158555.cms
Accenture plans to expand in Cebu
CEBU, Philippines - Accenture, a total solutions outsourcing company, expressed interest to expand its operations in Cebu.
Lito Tayag, country managing director of Accenture Delivery Centers in the Philippines said in an interview that the company intends to grow in Cebu, and is now evaluating options on its expansion location.
Accenture-Cebu opened its Global Delivery Center Network for Technology in 2007, and also it opened its BPO arm or call center operations here about two years ago.
Tayag said the company is looking at expanding IT and BPO components here, expressing confidence of the kind of manpower Cebu has.
“Cebu is an attractive place for investment. It has big potential for growth,” Tayag said.
He said the reason why, the company has established a partnership with French NGO to help provide good and highly-skilled manpower pool in Cebu, through scholarship grant.
Accenture Foundations recently awarded Passerelles Numeriques (PN) US$1.26 million or over P58 million funds for the latter‘s Cebu System and Network Administration training initiatives.
The grant, which will be distributed over a four-year period, will be used to help disadvantaged young people from all over the Visayas acquire IT skills.
The Philippines is the second largest hub of the Accenture global operation, next to India, with over 14,000 employees based in its Metro Manila facility. Making India and the Philippines the Accenture's growth engines in the recent years.
Although, the company is also providing service in data and voice like the call center, the company's core business is into providing services of wide range technology application, offering a almost a total outsourcing products to its clients.
Tayag however, refused to divulge the possible number of workforce, the company will be hiring in Cebu expansion in the next few years.
What is certain, he said is the expansion plan for Cebu facility is part of Accenture’s growth strategy.
Accenture is a global management consulting, technology services and outsourcing company, with more than 190 thousand people serving clients in more than 120 countries.
Combining unparalleled experience, comprehensive capabilities, across all industries and business functions and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments.
Philstar.com
http://www.philstar.com/Article.aspx?articleId=592590&publicationSubCategoryId=108
Lito Tayag, country managing director of Accenture Delivery Centers in the Philippines said in an interview that the company intends to grow in Cebu, and is now evaluating options on its expansion location.
Accenture-Cebu opened its Global Delivery Center Network for Technology in 2007, and also it opened its BPO arm or call center operations here about two years ago.
Tayag said the company is looking at expanding IT and BPO components here, expressing confidence of the kind of manpower Cebu has.
“Cebu is an attractive place for investment. It has big potential for growth,” Tayag said.
He said the reason why, the company has established a partnership with French NGO to help provide good and highly-skilled manpower pool in Cebu, through scholarship grant.
Accenture Foundations recently awarded Passerelles Numeriques (PN) US$1.26 million or over P58 million funds for the latter‘s Cebu System and Network Administration training initiatives.
The grant, which will be distributed over a four-year period, will be used to help disadvantaged young people from all over the Visayas acquire IT skills.
The Philippines is the second largest hub of the Accenture global operation, next to India, with over 14,000 employees based in its Metro Manila facility. Making India and the Philippines the Accenture's growth engines in the recent years.
Although, the company is also providing service in data and voice like the call center, the company's core business is into providing services of wide range technology application, offering a almost a total outsourcing products to its clients.
Tayag however, refused to divulge the possible number of workforce, the company will be hiring in Cebu expansion in the next few years.
What is certain, he said is the expansion plan for Cebu facility is part of Accenture’s growth strategy.
Accenture is a global management consulting, technology services and outsourcing company, with more than 190 thousand people serving clients in more than 120 countries.
Combining unparalleled experience, comprehensive capabilities, across all industries and business functions and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments.
Philstar.com
http://www.philstar.com/Article.aspx?articleId=592590&publicationSubCategoryId=108
Offshore Outsourcing Picking up After Recession: Everest
The outsourcing market is witnessing an increase in activity as the global economy recovers from the recession of 2009, according to a report by Everest Research Institute.
Offshore outsourcing business that was in the pipeline, but was delayed during the recession for financial reasons or for lack of management focus, is now gathering momentum again, Anand Ramesh [CQ}, research director at Everest, said on Saturday.
More concerned about cost reduction after the recession, customers in the U.S. and other markets are planning to offshore more of the work that was earlier being outsourced to suppliers in their countries, Ramesh said.
Companies that have not sent work offshore so far are also now considering outsourcing to low-cost locations like India and the Philippines, he added. Over a period, the credibility and scale of offshore suppliers in countries like India has also increased, Ramesh said.
Most current buyers plan to expand offshoring and a significant proportion plan to do so aggressively, the Everest report said. Approximately 75 percent of small and medium adopters and 90 percent of large adopters plan to expand their offshore outsourcing by more than 500 FTEs (full time equivalents) over the next two years, it added.
Small adopters are defined by Everest as organizations with already less than 500 FTEs offshore, while medium adopters are organizations with 500 to 2,500 FTEs offshore. Large adopters are organizations that already have more than 2,500 FTEs offshore.
The report surveyed companies that currently send IT services and business process outsourcing (BPO) work to either their own subsidiaries or to third-party suppliers in off-shore locations like India, Mexico, China and the Philippines.
A number of analysts have forecast a pick up in offshore business. A lot of the offshore business that was delayed by the recession is back, said Sudin Apte [CQ], principal analyst at Forrester Research. But there are no large new deals yet, he said.
The improvement in business is also likely to place demands for staff in countries like India, thus pushing up costs. Companies in India, for example, have started hiring again, and staff attrition is likely to go up to over 15 percent in the current quarter, Apte said.
India continues to be the dominant offshore location with more than 70 percent of buyers planning to expand in the country, according to Everest. The Philippines, riding mainly on its strong presence in the BPO business, and China are two other key countries where companies plan to expand.
But the offshore market in China is primarily for work done for neighboring countries like South Korea, and Japan, according to Ramesh. The number of U.S. companies outsourcing to China are few, and the size of their operations are small, he added.
Malaysia, Brazil and Mexico are other locations that figure in companies' plans to expand offshore outsourcing.
Companies are however looking to spread their risks, and may not send all their work to India.
Buyers are increasingly looking at other complementary locations in Asia, Latin and Central America, and Eastern Europe for setting up delivery centers, according to Everest. The drivers of this approach include risk diversification and business continuity, need for specific skills and support in specific languages, regulatory requirements, and time zone coverage requirements, Everest said.
About 60 percent of India's outsourcing business comes from the U.S., followed by the U.K. which accounts for about 15 percent.
Even as companies are planning to expand offshore outsourcing, they are also looking at expanding in near-shore locations, such as Latin America for U.S. companies. The drivers for near-shore outsourcing, such as the need to keep sensitive work closer to home, are different than for off-shore outsourcing which is mainly driven by cost and the ability to scale, Ramesh said. Although it is growing fast, near-shore outsourcing is a smaller market than offshore outsourcing, and will not necessarily compete with the offshore locations for business, he added.
Even as companies expand near-shore and to other locations besides India, they may still turn to Indian service providers to provide services from these new locations, Ramesh said. They may value an existing relationship with an service provider rather than assign the business to a local provider, he added. A number of Indian outsourcers have set up operations in Europe, U.S. and Latin America to target the near-shore and onshore requirements of their customers.
http://www.pcworld.com/businesscenter/article/200888/offshore_outsourcing_picking_up_after_recession_everest.html
Offshore outsourcing business that was in the pipeline, but was delayed during the recession for financial reasons or for lack of management focus, is now gathering momentum again, Anand Ramesh [CQ}, research director at Everest, said on Saturday.
More concerned about cost reduction after the recession, customers in the U.S. and other markets are planning to offshore more of the work that was earlier being outsourced to suppliers in their countries, Ramesh said.
Companies that have not sent work offshore so far are also now considering outsourcing to low-cost locations like India and the Philippines, he added. Over a period, the credibility and scale of offshore suppliers in countries like India has also increased, Ramesh said.
Most current buyers plan to expand offshoring and a significant proportion plan to do so aggressively, the Everest report said. Approximately 75 percent of small and medium adopters and 90 percent of large adopters plan to expand their offshore outsourcing by more than 500 FTEs (full time equivalents) over the next two years, it added.
Small adopters are defined by Everest as organizations with already less than 500 FTEs offshore, while medium adopters are organizations with 500 to 2,500 FTEs offshore. Large adopters are organizations that already have more than 2,500 FTEs offshore.
The report surveyed companies that currently send IT services and business process outsourcing (BPO) work to either their own subsidiaries or to third-party suppliers in off-shore locations like India, Mexico, China and the Philippines.
A number of analysts have forecast a pick up in offshore business. A lot of the offshore business that was delayed by the recession is back, said Sudin Apte [CQ], principal analyst at Forrester Research. But there are no large new deals yet, he said.
The improvement in business is also likely to place demands for staff in countries like India, thus pushing up costs. Companies in India, for example, have started hiring again, and staff attrition is likely to go up to over 15 percent in the current quarter, Apte said.
India continues to be the dominant offshore location with more than 70 percent of buyers planning to expand in the country, according to Everest. The Philippines, riding mainly on its strong presence in the BPO business, and China are two other key countries where companies plan to expand.
But the offshore market in China is primarily for work done for neighboring countries like South Korea, and Japan, according to Ramesh. The number of U.S. companies outsourcing to China are few, and the size of their operations are small, he added.
Malaysia, Brazil and Mexico are other locations that figure in companies' plans to expand offshore outsourcing.
Companies are however looking to spread their risks, and may not send all their work to India.
Buyers are increasingly looking at other complementary locations in Asia, Latin and Central America, and Eastern Europe for setting up delivery centers, according to Everest. The drivers of this approach include risk diversification and business continuity, need for specific skills and support in specific languages, regulatory requirements, and time zone coverage requirements, Everest said.
About 60 percent of India's outsourcing business comes from the U.S., followed by the U.K. which accounts for about 15 percent.
Even as companies are planning to expand offshore outsourcing, they are also looking at expanding in near-shore locations, such as Latin America for U.S. companies. The drivers for near-shore outsourcing, such as the need to keep sensitive work closer to home, are different than for off-shore outsourcing which is mainly driven by cost and the ability to scale, Ramesh said. Although it is growing fast, near-shore outsourcing is a smaller market than offshore outsourcing, and will not necessarily compete with the offshore locations for business, he added.
Even as companies expand near-shore and to other locations besides India, they may still turn to Indian service providers to provide services from these new locations, Ramesh said. They may value an existing relationship with an service provider rather than assign the business to a local provider, he added. A number of Indian outsourcers have set up operations in Europe, U.S. and Latin America to target the near-shore and onshore requirements of their customers.
http://www.pcworld.com/businesscenter/article/200888/offshore_outsourcing_picking_up_after_recession_everest.html
Outsourcing Philippines: The Right Causes to Be Engaged
The current global financial predicament motivated quite a few firms to stand back and look at their processes. Though this wouldn't immediately influence them to outsource to the Philippines and other nations around the world, it did show them the necessity to spend less money by dropping the business units that were very important to them but weren't crucial to the key thrust of their enterprise.
This particular phenomenon isn't something different. Outsourcing has long been successful since the late 80s and early 90s, with the term being created in 1989 to explain the tactic itself. However, the process was currently being undertaken by a number of organizations without any experience in a definite facet of business. There were a lot of arguments to outsource, but the most crucial amid them was the necessity to save funds. By way of example, call center outsourcing took place due to the high costs of sustaining a proper customer service division within a specific corporation. During the period of the 2000s, various organizations decided to outsource to the Philippines for their customer care needs. It conserved cash and additional means, enabling them to focus on the main parts of their business.
Precisely how do these businesses conserve cash? The quick answer to this question is that they do not need to shell out money on a division, which really needs supplies, manpower, and establishments in which to run. Rather than investing an enormous amount , quite a few companies try an outsourcing company. The Philippines is a prime niche for this, for numerous factors. The income for the labor force here is substantially reduced than the expenditures for related jobs in the United States รข€”only 12 to 16 percent that of American jobs. With a monetary viewpoint, the selection to outsource to the Philippines would make great business sense.
Outsourcing firms save funds in an additional means: lower operational costs. Due to the lower rental prices in the land, organizations in the Philippines conserve cash on features and servicing. Electric and telephone bills are also comparatively lower, permitting the organization to zero in its finances on developing their core expertise.
Nonetheless, money is not the only rationale that every company ought to outsource to the Philippines. You will find many proficient personnel in the Philippines, and many of them are college or university-educated. Close to 500,000 people graduate on a yearly basis, with 50 % of them acquiring business, engineering, or information technology qualifications. Companies needing particular abilities can utilize this talent pool.
That extremely qualified employed pool is bolstered by the truth that a large majority of them speak excellent English. Given that the land was a colony of the United States for much of the first half of the 20th century, the English language became prominent in business and education and learning in the nation. In addition to the lower labor fee, this is a primary rationale why BPO outsourcing, SEO outsourcing, and call center outsourcing are growing sectors. The companies that outsource to the Philippines understand this too, and they adjust their business designs as a result. This English-speaking capacity is specially critical for the call center outsourcing area, which calls for superior conversation competencies.
Source : http://www.articleonlinedirectory.com/
Link : http://www.articleonlinedirectory.com/Art/401024/24/outsourcing-philippines-the-right-causes-to-be-engaged.html
Within the Philippines, outsourcing is an evergrowing business industry. Corporations understand the various benefits that the country provides in relation to smaller salaries and far more skilled employees. That's an offer that several business leaders find remarkable, which is why some choose to outsource to the Philippines. The selection of outsourcing companies online makes this approach less difficult, and any businessperson can obtain them on the internet to get the best offer.
This particular phenomenon isn't something different. Outsourcing has long been successful since the late 80s and early 90s, with the term being created in 1989 to explain the tactic itself. However, the process was currently being undertaken by a number of organizations without any experience in a definite facet of business. There were a lot of arguments to outsource, but the most crucial amid them was the necessity to save funds. By way of example, call center outsourcing took place due to the high costs of sustaining a proper customer service division within a specific corporation. During the period of the 2000s, various organizations decided to outsource to the Philippines for their customer care needs. It conserved cash and additional means, enabling them to focus on the main parts of their business.
Precisely how do these businesses conserve cash? The quick answer to this question is that they do not need to shell out money on a division, which really needs supplies, manpower, and establishments in which to run. Rather than investing an enormous amount , quite a few companies try an outsourcing company. The Philippines is a prime niche for this, for numerous factors. The income for the labor force here is substantially reduced than the expenditures for related jobs in the United States รข€”only 12 to 16 percent that of American jobs. With a monetary viewpoint, the selection to outsource to the Philippines would make great business sense.
Outsourcing firms save funds in an additional means: lower operational costs. Due to the lower rental prices in the land, organizations in the Philippines conserve cash on features and servicing. Electric and telephone bills are also comparatively lower, permitting the organization to zero in its finances on developing their core expertise.
Nonetheless, money is not the only rationale that every company ought to outsource to the Philippines. You will find many proficient personnel in the Philippines, and many of them are college or university-educated. Close to 500,000 people graduate on a yearly basis, with 50 % of them acquiring business, engineering, or information technology qualifications. Companies needing particular abilities can utilize this talent pool.
That extremely qualified employed pool is bolstered by the truth that a large majority of them speak excellent English. Given that the land was a colony of the United States for much of the first half of the 20th century, the English language became prominent in business and education and learning in the nation. In addition to the lower labor fee, this is a primary rationale why BPO outsourcing, SEO outsourcing, and call center outsourcing are growing sectors. The companies that outsource to the Philippines understand this too, and they adjust their business designs as a result. This English-speaking capacity is specially critical for the call center outsourcing area, which calls for superior conversation competencies.
Source : http://www.articleonlinedirectory.com/
Link : http://www.articleonlinedirectory.com/Art/401024/24/outsourcing-philippines-the-right-causes-to-be-engaged.html
Within the Philippines, outsourcing is an evergrowing business industry. Corporations understand the various benefits that the country provides in relation to smaller salaries and far more skilled employees. That's an offer that several business leaders find remarkable, which is why some choose to outsource to the Philippines. The selection of outsourcing companies online makes this approach less difficult, and any businessperson can obtain them on the internet to get the best offer.
Drishti powers voice BPO initiative for Rural Shores
Drishti-Soft Solutions becomes technology partners to Rural Shores, Bangalore. The latter is a Rural BPO firm that aims to promote rural-shoring of BPO operations by setting up business process outsourcing units and business centers across smaller towns and villages in India. Drishti’s multi-award winning customer interaction management suite - Ameyo becomes the preferred technology by Rural Shores for building voice capability into their highly successful BPO operations.
As the whopping 15 billion USD Indian BPO industry steps ahead, it is challenged by tough competition from rivals such as Philippines. With the BPO firms losing some two-thirds of their incremental voice based business to the south-east Asian countries, there is a dire need to create another delivery layer and bring down the costs of operations for a better value proposition.
The current BPO scene has 60% of the 'skill factory' coming from Tier 1 and 2 regions. Taking a closer look at the industry stats, the picture says that the Indian BPO industry is slated to rise to 220-280 Billion USD by 2012 generating around 2 million direct jobs. This creates enough room for the rural regions to tap their share of contribution to the BPO 'skill factory' and creates substantial opportunity for firms like Rural Shores.
Source: Financial Express
http://www.financialexpress.com/news/drishti-powers-voice-bpo-initiative-for-rural-shores/642908/
As the whopping 15 billion USD Indian BPO industry steps ahead, it is challenged by tough competition from rivals such as Philippines. With the BPO firms losing some two-thirds of their incremental voice based business to the south-east Asian countries, there is a dire need to create another delivery layer and bring down the costs of operations for a better value proposition.
The current BPO scene has 60% of the 'skill factory' coming from Tier 1 and 2 regions. Taking a closer look at the industry stats, the picture says that the Indian BPO industry is slated to rise to 220-280 Billion USD by 2012 generating around 2 million direct jobs. This creates enough room for the rural regions to tap their share of contribution to the BPO 'skill factory' and creates substantial opportunity for firms like Rural Shores.
Source: Financial Express
http://www.financialexpress.com/news/drishti-powers-voice-bpo-initiative-for-rural-shores/642908/
Saturday, July 10, 2010
PwC to set up new KPO in Kolkata
Pricewaterhouse Cooper in India, Australia, Canada, UK and USA today announced formation of a new entity to conduct select back-office operation of their activities in Kolkata.
PricewaterhouseCoopers Service Delivery Centre (Kolkata) is a joint venture formed by the PwC set-ups of these countries which has begun operation since July 1, PwC India director Ambarish Dasgupta said here today.
The delivery centre currently employs 600 professionals and the proposals are to increase the employee strength to 2000 by the end of 2012, if everything runs smooth, the JV CEO Sumanth Prakash said.
Mukherjee said the centre will execute analytical work in finance, common in all these countries.
Source: express india
Full article: http://www.expressindia.com/latest-news/PwC-to-set-up-new-KPO-in-Kolkata/644369/
PricewaterhouseCoopers Service Delivery Centre (Kolkata) is a joint venture formed by the PwC set-ups of these countries which has begun operation since July 1, PwC India director Ambarish Dasgupta said here today.
The delivery centre currently employs 600 professionals and the proposals are to increase the employee strength to 2000 by the end of 2012, if everything runs smooth, the JV CEO Sumanth Prakash said.
Mukherjee said the centre will execute analytical work in finance, common in all these countries.
Source: express india
Full article: http://www.expressindia.com/latest-news/PwC-to-set-up-new-KPO-in-Kolkata/644369/
Friday, July 9, 2010
Netscribes Raises Second Round of Funding; Plans Inorganic Growth
Netscribes has also acquired Inrea Research, a niche patent research and analytics market player.
Netscribes, Inc., a company offering research & analytics solutions, has raised a second round of growth capital from Basil Growth Corporation, a Mauritius-based venture capital firm. The company already has New York‐based Insight Venture Partners as its investor from its first round of funding.
The funds would be used by Netscribes to rapidly expand its operations across US, Europe and Asia‐Pac regions. Netscribes is in the process of expanding its service offerings across research and market intelligence to strengthen its position as a leading knowledge services provider. The company has most of its operations in India with 4 delivery centres across the country (Mumbai, Kolkata, Pune and Delhi) and offices across the globe. The funds will be raised in expanding the work force and also pursue acquisitions.
The KPO firm had also raised money from Connect Capital in its initial days – an early stage venture capital firm floated by Ramanan Ranghavendran, the present Managing Partner at Kubera Partners.
The global knowledge solutions firm, also announced the 100% acquisition of Inrea Research, a dynamic player in the niche patent research and analytics market, through a cashcum‐stock deal. Founded by a team of IIT alumni, Nalin Agrawal, Navendu Agarwal and Saurabh Shekhar, Inrea Research has a team of techno‐legal professionals and patent analytics systems.
Source: VC Circle
Full Article: http://www.vccircle.com/500/news/netscribes-raises-second-round-funding-plans-inorganic-growth
Netscribes, Inc., a company offering research & analytics solutions, has raised a second round of growth capital from Basil Growth Corporation, a Mauritius-based venture capital firm. The company already has New York‐based Insight Venture Partners as its investor from its first round of funding.
The funds would be used by Netscribes to rapidly expand its operations across US, Europe and Asia‐Pac regions. Netscribes is in the process of expanding its service offerings across research and market intelligence to strengthen its position as a leading knowledge services provider. The company has most of its operations in India with 4 delivery centres across the country (Mumbai, Kolkata, Pune and Delhi) and offices across the globe. The funds will be raised in expanding the work force and also pursue acquisitions.
The KPO firm had also raised money from Connect Capital in its initial days – an early stage venture capital firm floated by Ramanan Ranghavendran, the present Managing Partner at Kubera Partners.
The global knowledge solutions firm, also announced the 100% acquisition of Inrea Research, a dynamic player in the niche patent research and analytics market, through a cashcum‐stock deal. Founded by a team of IIT alumni, Nalin Agrawal, Navendu Agarwal and Saurabh Shekhar, Inrea Research has a team of techno‐legal professionals and patent analytics systems.
Source: VC Circle
Full Article: http://www.vccircle.com/500/news/netscribes-raises-second-round-funding-plans-inorganic-growth
GE looks to cut the percentage of IT work it sends to India
GE is looking to significantly cut the percentage of IT work it sends to India. Said a GE India spokeswoman: “While India continues to be the main delivery location, there is an increased focus on multi-location/country delivery centres, both from a business continuity and an in-country support perspective.”
According to experts tracking the sector and officials at vendors serving GE, India’s share in the company’s offshoring pie could fall from around 70% currently to about 50% over the next few years.
GE’s decision to diversify geographically seems to be dictated as much by business considerations as by realpolitik. “For GE, the priority is about markets and countries where it can sell more. And above all, it’s about creating jobs in the US,” says a US-based outsourcing expert who had advised GE on offshoring to newer locations around a year ago.
The world’s largest manufacturer of aircraft engines, lighting and other appliances is looking to shed its image of an American firm shipping the maximum number of jobs to India. As a result, it is taking a hard look at its India-centric offshoring model and developing alternate offshoring hubs. GE has already started working with new IT firms in Brazil, Mexico, Morocco and China. It is piloting projects with Brazil-based CPM Braxis, and is the top customer for Chinese IT vendor HiSoft.
Source: The Economic Times
Full article: http://www.gsmlaborcouncil.org/node/5573
According to experts tracking the sector and officials at vendors serving GE, India’s share in the company’s offshoring pie could fall from around 70% currently to about 50% over the next few years.
GE’s decision to diversify geographically seems to be dictated as much by business considerations as by realpolitik. “For GE, the priority is about markets and countries where it can sell more. And above all, it’s about creating jobs in the US,” says a US-based outsourcing expert who had advised GE on offshoring to newer locations around a year ago.
The world’s largest manufacturer of aircraft engines, lighting and other appliances is looking to shed its image of an American firm shipping the maximum number of jobs to India. As a result, it is taking a hard look at its India-centric offshoring model and developing alternate offshoring hubs. GE has already started working with new IT firms in Brazil, Mexico, Morocco and China. It is piloting projects with Brazil-based CPM Braxis, and is the top customer for Chinese IT vendor HiSoft.
Source: The Economic Times
Full article: http://www.gsmlaborcouncil.org/node/5573
ITeS hiring on an uptrend in Chennai
The improving business sentiment among recruiters coupled with growing market optimism has moved up Naukri JobSpeak index for Chennai to 866 in June 2010 from 853 in May. On a year-on-year comparison, the job index for Chennai moved up by 19 per cent in June 2010 compared to June 2009.
One of the key industry sectors in Chennai, ITeS has been bullish on hiring as the sector registered a growth rate of 25 per cent in June 2010 over the May 2010.
Key industry sectors like ITeS, telecom and banking witnessed an uptrend in hiring with the index moving up by 25 per cent, 13 per cent and 11 per cent in June 2010 over May. The IT-hardware sector witnessed a nine per cent increase in hiring activity, while the IT-software and auto sectors witnessed a stable hiring scenario. Thus, key sectors in Chennai -- IT, ITeS, banking and financial services -- all seem to be on a positive path.
A month-on-month growth analysis of the functional areas shows that professionals in ITeS and BPO sectors were much in demand as the index moved up by 22 per cent.
Source: Business Standard
Full Article: http://www.business-standard.com/india/news/ites-hiringan-uptrend-in-chennai/400707/
One of the key industry sectors in Chennai, ITeS has been bullish on hiring as the sector registered a growth rate of 25 per cent in June 2010 over the May 2010.
Key industry sectors like ITeS, telecom and banking witnessed an uptrend in hiring with the index moving up by 25 per cent, 13 per cent and 11 per cent in June 2010 over May. The IT-hardware sector witnessed a nine per cent increase in hiring activity, while the IT-software and auto sectors witnessed a stable hiring scenario. Thus, key sectors in Chennai -- IT, ITeS, banking and financial services -- all seem to be on a positive path.
A month-on-month growth analysis of the functional areas shows that professionals in ITeS and BPO sectors were much in demand as the index moved up by 22 per cent.
Source: Business Standard
Full Article: http://www.business-standard.com/india/news/ites-hiringan-uptrend-in-chennai/400707/
Forget India, outsource to Arkansas
As the national unemployment rate hovers near 10%, some companies are starting to eye job-hungry areas of the country as prime candidates for the kind of outsourced work that once would have gone overseas.
Dubbed "ruralsourcing," "rural outsourcing" and "onshoring," the practice relies on two simple premises: Smaller towns need jobs, and they offer a cheaper cost of living than urban centers. So businesses that outsource work to these areas can expect to pay less -- rates are often as much as 25% to 50% lower -- than if they were hiring urbanites with comparable skills.
In response, a new crop of outsourcing startups are popping up with development centers in places like Joplin, Mo., and Eveleth, Minn., where hundreds of employees crank out software code or offer IT support for large corporate clients.
"It's extremely timely given our economic climate," says Mary Lacity, an information systems professor at the University of Missouri-St. Louis who has written 12 books on outsourcing. "And I think there's a demand for it."
Compared with the estimated $60-billion-a-year offshoring industry, rural outsourcing remains just a blip on the radar. Yet the strategy is becoming a more popular option for businesses that are trying to stretch their budgets.
Source: CNN Money
Full article: http://money.cnn.com/2010/07/08/smallbusiness/rural_onshoring/
Dubbed "ruralsourcing," "rural outsourcing" and "onshoring," the practice relies on two simple premises: Smaller towns need jobs, and they offer a cheaper cost of living than urban centers. So businesses that outsource work to these areas can expect to pay less -- rates are often as much as 25% to 50% lower -- than if they were hiring urbanites with comparable skills.
In response, a new crop of outsourcing startups are popping up with development centers in places like Joplin, Mo., and Eveleth, Minn., where hundreds of employees crank out software code or offer IT support for large corporate clients.
"It's extremely timely given our economic climate," says Mary Lacity, an information systems professor at the University of Missouri-St. Louis who has written 12 books on outsourcing. "And I think there's a demand for it."
Compared with the estimated $60-billion-a-year offshoring industry, rural outsourcing remains just a blip on the radar. Yet the strategy is becoming a more popular option for businesses that are trying to stretch their budgets.
Source: CNN Money
Full article: http://money.cnn.com/2010/07/08/smallbusiness/rural_onshoring/
Wednesday, July 7, 2010
European Market Gets Worse for Indian Outsourcers
Europe outsourcing market reportedly worsened this year for the Indian players because of a weak euro and tighter IT budgets in Europe, according to Forrester Research.
Large Indian outsourcers currently earn less than 30% percent of their revenue in Europe. The figure is far lower if the U.K., which has been faster in adopting offshore outsourcing, is excluded. The U.K. accounted for 16.2% of the revenue of Tata Consultancy Services (TCS), India's largest outsourcer, in the Indian fiscal year to March 31, 2010. The share of its revenue from the rest of Europe was far lower at 10.5%
In some countries in Europe, the labor laws set limits on what can be outsourced by companies, Siddharth Pai, a partner at outsourcing consultancy Technology Partners International (TPI), said on Tuesday.
Cultural and language differences, and discomfort with sending work far away, have also made many European companies avoid offshoring to India, Pai said. These companies would prefer to outsource to European services firms like Capgemini and T-Systems, or to large multinational services companies like IBM and Accenture that have large operations in Europe, he said.
The ongoing debt crisis in Europe, and its impact on the euro and the economy, may now make the continent less interesting for Indian outsourcers, said Sudin Apte, principal analyst at Forrester.
The European market for corporate IT products and services fell by 6.3 percent in 2009, when measured in euros, according to Forrester. The recovery in the European IT market is likely to be slow this year with the IT market growing at 4 percent over last year, which means that European firms will continue to face budget cuts in 2010 and possibly even beyond, Forrester said.
The debt crisis could have a longer-term effect on IT spending in Europe as public-sector organizations try to balance budgets and shed debt, activities that would in turn have an effect on private businesses by a "ripple effect," Gartner said this month. Offshore outsourcing business from Europe has slowed down after the debt crisis, according to TPI's Pai. Even some deals that seemed close to closure 18 months ago are now delayed, he added.
Indian outsourcers that are targeting European IT markets are also hit by the falling value of the euro, Apte said. Between Jan. 1 to June 30 this year the euro depreciated by over 15 percent against the Indian Rupee, which meant that there were fewer rupees available to outsourcers to meet costs in India.
Source: PC World
Full article: http://www.pcworld.com/businesscenter/article/200613/european_market_gets_worse_for_indian_outsourcers.html
Large Indian outsourcers currently earn less than 30% percent of their revenue in Europe. The figure is far lower if the U.K., which has been faster in adopting offshore outsourcing, is excluded. The U.K. accounted for 16.2% of the revenue of Tata Consultancy Services (TCS), India's largest outsourcer, in the Indian fiscal year to March 31, 2010. The share of its revenue from the rest of Europe was far lower at 10.5%
In some countries in Europe, the labor laws set limits on what can be outsourced by companies, Siddharth Pai, a partner at outsourcing consultancy Technology Partners International (TPI), said on Tuesday.
Cultural and language differences, and discomfort with sending work far away, have also made many European companies avoid offshoring to India, Pai said. These companies would prefer to outsource to European services firms like Capgemini and T-Systems, or to large multinational services companies like IBM and Accenture that have large operations in Europe, he said.
The ongoing debt crisis in Europe, and its impact on the euro and the economy, may now make the continent less interesting for Indian outsourcers, said Sudin Apte, principal analyst at Forrester.
The European market for corporate IT products and services fell by 6.3 percent in 2009, when measured in euros, according to Forrester. The recovery in the European IT market is likely to be slow this year with the IT market growing at 4 percent over last year, which means that European firms will continue to face budget cuts in 2010 and possibly even beyond, Forrester said.
The debt crisis could have a longer-term effect on IT spending in Europe as public-sector organizations try to balance budgets and shed debt, activities that would in turn have an effect on private businesses by a "ripple effect," Gartner said this month. Offshore outsourcing business from Europe has slowed down after the debt crisis, according to TPI's Pai. Even some deals that seemed close to closure 18 months ago are now delayed, he added.
Indian outsourcers that are targeting European IT markets are also hit by the falling value of the euro, Apte said. Between Jan. 1 to June 30 this year the euro depreciated by over 15 percent against the Indian Rupee, which meant that there were fewer rupees available to outsourcers to meet costs in India.
Source: PC World
Full article: http://www.pcworld.com/businesscenter/article/200613/european_market_gets_worse_for_indian_outsourcers.html
Tuesday, July 6, 2010
Mahindra Satyam BPO in deal with African firm
Mahindra Satyam, formerly Satyam Computer Services, on Wednesday said that its business process outsourcing (BPO) unit has entered into a partnership with Africa’s Direct Channel Holding Ltd. The financial terms of the partnership were not announced.
Under the alliance, Mahindra Satyam BPO will help Direct Channel Holding expand its services in Africa, the company said in a statement.
Direct Channel Holding, a Johannesburg-based BPO, has centres in Durban, Cape Town, Nairobi and Lagos.
Source: Stockmarkettoday
Full Article: http://stockmarkettoday.in/2010/07/02/mahindra-satyam-bpo-in-deal-with-african-firm/
Under the alliance, Mahindra Satyam BPO will help Direct Channel Holding expand its services in Africa, the company said in a statement.
Direct Channel Holding, a Johannesburg-based BPO, has centres in Durban, Cape Town, Nairobi and Lagos.
Source: Stockmarkettoday
Full Article: http://stockmarkettoday.in/2010/07/02/mahindra-satyam-bpo-in-deal-with-african-firm/
GlobeOp Confirms Contract With European Credit Management
GlobeOp Financial Services SA (GO.LN) Thursday confirmed it will outsource middle- and back-office services for Wells Fargo & Co.'s (WFC) European Credit Management Ltd. unit, a major contract win for the hedge fund administrator.
Source: Wall Street Journal
Full article: http://online.wsj.com/article/BT-CO-20100701-702468.html
Source: Wall Street Journal
Full article: http://online.wsj.com/article/BT-CO-20100701-702468.html
API Outsourcing and AOi Announce Strategic Partnership
API Outsourcing, Inc., a leading provider of Finance and Accounting Outsourcing services (FAO), has announced a strategic partnering agreement with the Accounting Outsource Inc. (AOi), a leading FAO provider for the restaurant industry. The focus on this partnership will be to drive even greater levels of back office automation into the restaurants, moving to an eventual "paperless restaurant," to improve operations and reduce costs.
API's automated Accounts Payable Services has been integrated with AOi's accounting services to provide restaurant accounting customers with a streamlined electronic invoice process. This change has resulted in reduced processing time, errors, labor and capital requirements and overall costs, while providing improved access to information maintained in a secure central document repository.
Source: PRWeb
Full article: http://www.prweb.com/releases/AOi/Paperless_Restaurant/prweb4204574.htm
API's automated Accounts Payable Services has been integrated with AOi's accounting services to provide restaurant accounting customers with a streamlined electronic invoice process. This change has resulted in reduced processing time, errors, labor and capital requirements and overall costs, while providing improved access to information maintained in a secure central document repository.
Source: PRWeb
Full article: http://www.prweb.com/releases/AOi/Paperless_Restaurant/prweb4204574.htm
Egypt Named Offshoring Destination of the Year at the Inaugural European Outsourcing Association Awards
Egypt was awarded the prestigious title of Offshoring Destination of the Year at the 2010 European Outsourcing Association Awards held in Brussels last night, beating rivals Philippines, Colombia and Sri Lanka to the accolade.
Commenting on this achievement, H.E. Dr. Tarek Kamel, Minister of Communications and Information Technology said: "This award recognizes the outstanding progress Egypt has made in the last year as a global outsourcing destination. The country's credibility is going from strength to strength amongst European companies and has put its mark on the map of favored global services locations. We recognize the increasing role that Egypt can play in the fast-paced global ICT industry and we are advancing steadily on the way to position the country as a hub for IT innovation and entrepreneurship."
The awards recognize the success of organizations in outsourcing projects and raise awareness of the importance of best practice in outsourcing.
Commenting on Egypt's success at the awards, Martyn Hart, EOA Chairman said: "Egypt stood out for its multilingual capabilities and developments made to its infrastructure. It has proven itself to be both a strong player for European outsourcers and a gateway to the Middle East and Africa."
Through the support of ITIDA and the Ministry of Communications and Information Technology (MCIT), Egypt has shown ongoing improvement in the ICT sector.
The results of these developments have been reflected through numerous reports, with Egypt most recently being ranked sixth most attractive offshoring destination worldwide and number one in EMEA according to the A.T. Kearney Global Services Location Index™.
Source: PR Newswire
Full article: http://www.prnewswire.com/news-releases/egypt-named-offshoring-destination-of-the-year-at-the-inaugural-european-outsourcing-association-awards-97399109.html
Commenting on this achievement, H.E. Dr. Tarek Kamel, Minister of Communications and Information Technology said: "This award recognizes the outstanding progress Egypt has made in the last year as a global outsourcing destination. The country's credibility is going from strength to strength amongst European companies and has put its mark on the map of favored global services locations. We recognize the increasing role that Egypt can play in the fast-paced global ICT industry and we are advancing steadily on the way to position the country as a hub for IT innovation and entrepreneurship."
The awards recognize the success of organizations in outsourcing projects and raise awareness of the importance of best practice in outsourcing.
Commenting on Egypt's success at the awards, Martyn Hart, EOA Chairman said: "Egypt stood out for its multilingual capabilities and developments made to its infrastructure. It has proven itself to be both a strong player for European outsourcers and a gateway to the Middle East and Africa."
Through the support of ITIDA and the Ministry of Communications and Information Technology (MCIT), Egypt has shown ongoing improvement in the ICT sector.
The results of these developments have been reflected through numerous reports, with Egypt most recently being ranked sixth most attractive offshoring destination worldwide and number one in EMEA according to the A.T. Kearney Global Services Location Index™.
Source: PR Newswire
Full article: http://www.prnewswire.com/news-releases/egypt-named-offshoring-destination-of-the-year-at-the-inaugural-european-outsourcing-association-awards-97399109.html
Forrester downplays impact of proposed anti-outsourcing laws in US
The recent spate of anti-outsourcing legislations proposed in the US, like Senator Schumer's Bill to tax American companies that route customer calls overseas, will not impact business decisions related to offshoring, according to Forrester Research Vice-President and Principal Analyst, Mr John McCarthy.
His comments come at a time when the buzz around anti-outsourcing has been growing strong in the Capitol Hill. The House passed ‘American Jobs and Closing Tax Loopholes Act' in May and a month later US Senator Charles Schumer announced plans to introduce a Bill that seeks to impose 25 cents excise tax on any customer service call that originates within the US and gets transferred to an overseas call centre. The proposed legislation, if it materialises, would require US companies to also notify their customers when their calls are handled by an overseas location.
Source: Hindu Business Line
Full article: http://www.thehindubusinessline.com/2010/06/29/stories/2010062953240700.htm
His comments come at a time when the buzz around anti-outsourcing has been growing strong in the Capitol Hill. The House passed ‘American Jobs and Closing Tax Loopholes Act' in May and a month later US Senator Charles Schumer announced plans to introduce a Bill that seeks to impose 25 cents excise tax on any customer service call that originates within the US and gets transferred to an overseas call centre. The proposed legislation, if it materialises, would require US companies to also notify their customers when their calls are handled by an overseas location.
Source: Hindu Business Line
Full article: http://www.thehindubusinessline.com/2010/06/29/stories/2010062953240700.htm
The Growth of Legal Outsourcing: Passage to India
India’s legal-process outsourcing industry is still small but is growing fast. In a recent report, ValueNotes, an Indian consultancy, estimated that India’s LPO revenues will grow from $146m in 2006 to $440m this year and $1.1 billion in 2014. The number of Indian firms offering LPO services has swelled from 50 in 2005 to more than 140 today. Investors have spotted the potential. In February, Actis, a British private-equity outfit that specialises in emerging markets, invested $50m in Integreon. Intermediate Capital Group, also based in Britain, has bought an undisclosed chunk of CPA Global.
A lawyer with similar experience at a London law firm might charge up to $400 an hour for the sort of work that a lawyer does in India for $50 an hour. As law firms and corporate legal departments face mounting pressure to cut costs, an increasing number are choosing the Indian option.
Source: Global Services Media
Full article: http://www.globalservicesmedia.com/BPO/Knowledge-process-Outsourcing/The-Growth-of-Legal-Outsourcing:-Passage-to-India/23/12/9767/GS100625308499
A lawyer with similar experience at a London law firm might charge up to $400 an hour for the sort of work that a lawyer does in India for $50 an hour. As law firms and corporate legal departments face mounting pressure to cut costs, an increasing number are choosing the Indian option.
Source: Global Services Media
Full article: http://www.globalservicesmedia.com/BPO/Knowledge-process-Outsourcing/The-Growth-of-Legal-Outsourcing:-Passage-to-India/23/12/9767/GS100625308499
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