July 2006 News

  • July 2006
    • Orange to shut UK call centre, create 300 more jobs in India
      British mobile phone major Orange has announced it would soon close down its call centre in Peterlee in north England and create 300 more jobs in India, where it already has a staff strength of 1,000.
    • Pakistan based LeT mission: Get info on Indian BPOs
      Anti-national elements from across the border were using Faisal Shaikh to maim the state financially and politically. Insisting that Faisal was the “key western India operative” of the Lashkar-e-Taiba, police officials told TOI on Friday that he was under orders to gather as much information as possible about the Bombay Stock Exchange (BSE), the big business centres, major BPOs and also a Maharashtra minister and a top politician from Gujarat.
    • Manpower crunch, quota politics may spoil BPO party
      India may be taking big strides in the BPO and overall IT businesses worldwide but a tough time lies ahead for firms in getting skilled manpower for the industry.
    • Killing colleagues’ confidence
      This recent killing of Tania Banerjee by none other than self-proclaimed lover Gururaj Kishore goes much beyond a menace that has crippled BPO industry. After this incident, people will again talk about security and processes for ladies employee, but no system can be employed to curb this problem when the culprit is so close to the victim.
    • NRI honoured by global BPO
      Jagdish Dalal, the Indian-American owner and president of consulting firm J Dalal Associates, is among the first 15 outsourcing professionals in the world to be certified by the International Association of Outsourcing Professionals (IAOP).
    • Why cos are shutting their Indian BPOs?
      BPOs are booming and everyone wants a share of the pie. But operations with a manpower of 30 or 100 are not necessarily a viable option. Even as the BPO bazaar is rocking, biggies like Apple and others like PowerGen and Belair had to shut shops in India, one of the world’s fastest growing BPO markets.
    • Look into BPO crimes, Assocham writes to 3 CMs
      Following another brutal killing of a female BPO employee in Banglore, industry chamber ASSOCHAM today raised its concern over security of the BPOs’ staff, in letters to the Chief Ministers of Karnataka, Delhi and Haryana.
    • B’lore BPO murder: Kishore confesses to crime
      Prime suspect in the murder of 32-year-old BPO employee Tania Banerjee, Kishore Gururaj has confessed to the crime. The police had detained Kishore, who was Tania’s co-worker, for questioning earlier on Thursday.
    • Piggy-back on outsourcing
      Clients who have outsourced their IT operations get tangible benefits in terms of a higher return on assets and earnings before interest and taxes and lower selling, general and administrative expenses
    • Carlyle may pick 20% in Allsec Tech
      Allsec Technologies has received a non-binding indicative proposal from First Carlyle Ventures Mauritius, a global private equity firm, for subscribing to nearly 30.22 lakh equity shares at a price of Rs 260 per share on a preferential basis.
    • WNS Holdings debuts on NYSE
      WNS Holdings has become the first Indian business process outsourcing (BPO) company to get listed on the New York Stock Exchange (NYSE) after it raised about $224m in an initial public offering at $20 per ADS.
    • Dell receives ITES exporter award
      Dell International Services (DIS) was conferred the largest exporter award in the information technology enabled services (ITeS) category by Software Technology Parks of India (STPI) during the E-revolution ITES event in Chandigarh.
    • NTrust Infotech’s knowledge centre in Chennai
      NTrust Infotech, an IT and KPO services provider to the real estate leasing industry, has invested about Rs 6.75 crore to set up its second knowledge centre in Chennai. The company also has a development centre in Chennai.
    • Colleague of murdered call centre employee arrested
      Police today arrested a 27-year-old coleague of brutally murdered call centre employee Tania Banerji, whose was found in the forest near Sakleshpura in Hassan district about 220 km from here today.
    • Now, India a hub for design outsourcing
      In a small basement office in south Delhi, some 20 designers are busy sketching the outlines of new product lines for global giants — the likes of Whirlpool and Reckitt Benckiser — and, in the process, redesigning the face of outsourcing in India.
    • India’s back office BPOs move upfront
      For the Fortune 500 companies, which offshore tasks, it’s fashionable to say that they have wired their back office to India. They could soon be saying that their onshore or near shore centre is also run by India Inc.
    • BPO boom going bust? No way, it’s as big as ever
      Has success gone to their collective head? Or, are they just being complacent? On a high after bagging some of the biggest contracts in IT/ ITES outsourcing in recent times, the industry is brushing aside all predictions of the boom coming to an end.
    • IBM Daksh wins back old staff
      For IBM Daksh, it’s like getting back to their roots. The BPO seems to be set on an aggressive agenda of trying to get back some of the key people, who were earlier associated with the company, in various strategic positions, particularly during the pre-acquisition days.
    • BPOs plant Indian flag on new shores
      Indian BPO companies are increasingly setting up shop in low-cost countries. If you can’t beat them, join them, seems to be their motto. Countries in East Europe, South America, Canada are fast emerging as competition to India as a destination for the global BPO industry.
    • Court implicates UK firm for deserting staff
      Ten days after British Telecom firm Belair Communications Private Ltd abruptly shut down its captive call centre in Bangalore sacking 93 employees without settling their salaries, Karnataka’s labour court has decided to file criminal charges against the BPO promoters.
    • BPO sector posts 5 pc growth: Study
      The outsourcing business in the first half of 2006 has both good and bad news. The good news is that mature Indian service providers have achieved significant growth and are winning relatively larger and more varied deals. This year, their market share had risen to 5.1 per cent of the total contract value signed compared to less than 3 per cent during the corresponding period in 2005.
    • How to Buy a US Outsourcing Firm, Part 5: Indemnifications
      A pitfall of concern for buyers from outside the U.S. is for due diligence efforts to be concentrated on aspects of a business that buyers understand. This can lead to the neglect of issues such as intellectual property, regulatory compliance, and long-tail environmental liabilities that would commonly receive considerable attention from U.S. buyers.
    • TCS must enhance BPO capability: Tholons Inc
      Talking about company acquisitions, Avinash Vashistha, CEO, Tholons Inc pointed out the need for TCS to enhance its BPO capability to service current and future clients. He said, “It is a critical imperative for them to make a large acquisition, which doubles or triples their existing BPO capability. Vertex seems to be a good fit for them in this direction”.
    • European IT firms reignite growth through offshoring
      Contrary to the popular belief that offshoring business processes to India means job losses in the US, several European IT companies are leveraging offshore capabilities to reignite growth, improve financial performance and capture new markets apart from enhancing the existing staff strength in their parent countries.
    • BPOs may soon run into tax trap
      The bells have begun to toll for the BPO sector. All those smart alecks with the next bright BPO idea and funding to bring it alive could well take it to overseas hubs such as Philippines, Vietnam, China or even down under to Sri Lanka.
    • Infosys BPOwalas to take bus
      Seems some BPOs had enough of employee pampering. According to a leading IT news site, the Bangalore-based BPO Progeon has discontinued cab services for its day employees.
    • IT cos to face shortfall of 5 lakh pros by 2010
      Expressing concern over the non-availability of qualified manpower for IT and ITeS companies, NASSCOM said on Monday by year 2010 the industry would face a shortage of five lakh professionals.
    • Senior lawyers game for LPO ride
      Freshers joining legal process outsourcing (LPOs) is passé. It’s now the turn of experienced lawyers to join LPOs like Integreon, Pangea3 and OfficeTiger. In the last one month, Integreon has recruited three lawyers with an experience of eight years, while Pangea3 has almost 60 such lawyers in a total workforce of hundred.
    • Night shifts in BPOs cause ageing
      Ageing would set in very early for sleep-deprived youth working continuously on night shifts in BPO firms, warn experts. “Heavy food during night, skipping breakfast, eating lunch in the evening and all such irregular habits affect their health,” says Dr Lim Li Ling, deputy director, Sleep Disorders Unit, Singapore General Hospital.
    • ICRA to ramp up BPO operations
      To cash in on growing demand for analytic services, credit rating agency ICRA is planning to expand its BPO operations and double its headcount by the end of this fiscal.
    • BPOs eye $8.5 bn biz despite frauds
      The business processing outsourcing (BPO) industry is well on its way to achieve the 27-30 per cent growth predicted, so as to become a $8-8.5 billion industry in the financial year 2006-07.
    • Genpact may have BPO unit in Bhopal
      Genpact may set up a 7,000-seat business process outsourcing facility in Bhopal, Madhya Pradesh. “Genpact has been allotted 50 acres of prime land near the airport in Bhopal for its BPO operations.”
    • Is the Indian IT juggernaut hitting a roadblock?
      Party’s over, folks. That’s what a new study would have Indian outsourcing companies think, but industry insiders aver it’s far from the truth. With outsourcing being one of the key drivers of the Indian economy, the Chicago-based report almost sounds like the end of the road for India in its bid to be an economic superpower.
    • Satyam’s BPO arm to land in Hungary
      Nipuna Services, the BPO arm of the Satyam group, is poised to set up shop in Hungary. This will be Nipuna’s third overseas BPO operation as it already has a sizeable presence in the US and the UK.
    • Indian cos lead global outsourcing vendors
      Satyam, Cognizant and Infosys figure among the top five “50 Best Managed Global Outsourcing Vendors 2006” list by the Brown-Wilson Group, authors of ‘The Black Book of Outsourcing.’
    • SAP Business One Adds E-Commerce, Boosts CRM
      The addition of e-commerce functionality puts SAP Business One in direct competition with NetSuite, which has made a name for itself by offering an integrated e-commerce, CRM and accounting application.
    • Mid-cap IT cos to gain from outsourcing wave
      Higher outsourcing and technology spends are expected to have a positive effect on the sales and earnings of mid-cap IT companies as well in the first quarter of the fiscal. While growth and margins will not be comparable to top tier IT companies, which have the advantage of scale, the better positioned among the mid-cap firms are expected to show an attractive growth of around 30% in sales and earnings.
    • HeroITES launches new system
      HeroITES, an independent strategic business unit of the approximately Rs 14,000 crore Hero Group, a provider of business process outsourcing solutions and call centre services, has announced the launch of HeroLive, an integrated Management Information System.
    • Now, grab appointment letter in 1 hr
      Imagine this. Rahul goes for a BPO interview which lasts for 15 minutes. And another 15 minutes later, he’s given his appointment letter. Thanks to high-tech tests being brought in by leading BPOs, this just might be the scenario soon.
    • Poor HRD in Indian Call Centres: Study
      India can be termed as one of the most richest county in terms of Human Resources but sadly the ‘development’ part is missing. Although, India is known for its customer services, but when it comes to Human Resources Development, there is a lag. According to a recent study on Asian contact industry, there is a high level of absenteeism in Indian call centres. For instance, in a call centre consisting 600 people, a person had a maximum tenure of one year with a 20 per cent attrition rate.
    • HCL unveils infrastructure tech solutions for BPO sector
      HCL Infosystems Ltd on Wednesday unveiled a complete range of infrastructure technology solutions aimed at the fast growing Indian BPO and ITeS sector.
    • Satyam rated No. 2 outsourcing vendor
      Satyam Computer Services Ltd has been ranked by the Brown-Wilson Group as the number two outsourcing vendor globally based on its annual survey of over 870 IT and ITES companies worldwide. Satyam improved its rank from number 19 in 2005.
    • Attrition war zone: It’s IJP that’s the latest buzz
      This is the BPO industry’s answer to the ubiquitous attrition at all levels. The internal job promotion (IJP) is perhaps the key to turn around the elusive retention figures for the better.
    • BPOs use lessons from July floods to tide over blast crisis
      Bomb blasts and floods are hardly comparable. But for corporates in the city, last year’s flood helped deal with the bombing aftermath yesterday. Ask KPMG, the consultancy firm. The moment the news of serial blasts were aired, its HR department kicked off the contingency drill.
    • Infy acquires Progeon stake from Citicorp
      Infosys Technologies Limited has acquired 87,50,000 equity shares, 23 per cent on a fully diluted basis, of its BPO subsidiary Progeon Limited from Citicorp International Finance Corporation for Rs 530 crore.
    • BPO growth may slow down, says Forrester
      Concerns arising out of recent information security breach at HSBC’s India centre coupled with high attrition rates and staffing costs could take a toll on the BPO industry, slowing down the growth to between 28 and 30 per cent in the next 12 months, warns a report by Forrester Research.
    • Lucre lure: CAs could head for KPOs
      The world of finance is likely to face a big hole in its chartered accountants pool as more and more pass-outs are headed towards knowledge processing outsourcing firms, which are offering handsome salaries.
    • BPO firm Tricom India plans Nashik centre
      Mumbai-based Tricom India, a non-voice Business Process Outsourcing (BPO) major, is planning to set up its facility in Nashik. The centre is expected to be set up by 2007 will hire for 1,500 people. However, company officials did not divulge financial details about the proposed facility.
    • Small BPOs take M&A route to survival
      SMEs in the BPO sector are exploring a new business model to stay afloat in a market dominated by biggies. Small and medium players here are now acquiring loss making or stagnant companies in the UK and the US, who can’t contain their costs or who want back office presence in India.
    • British firm shuts shop in Bangalore
      British telecom firm Belair Communications Pvt Ltd has closed its captive call center here abruptly sacking all its 93 employees.
    • India is still the top BPO spot in Asia
      India is the top destination for contact centre business — call centre in common parlance — in Asia. India’s call centre business continues to grow despite closely emerging competitors like Philippines, Malaysia and Thailand, according to a Contact Centre Recruitment Index ’06 done by Kelly Services, a global recruitment and temping firm.
    • More Australian jobs coming to India
      Australian telecom giants Telstra and Optus are both eyeing offshoring jobs to India as part of cost-cutting measures in the face of a slow growth rate.
    • Canada outsources legal work to India
      Following the footsteps of call centres, data processing and accounting firms, lawyers in Canada have begun outsourcing legal work to India.
    • Here’s how to chart a great career in BPO
      Who wouldn’t be impressed with the career graph of Pallab Roy? How many 25-year-olds can boast of receiving 10 promotions in a five-year career? What makes this Bangalore-based programme manager’s achievements exceptional is that it has happened in the BPO industry, where on an average, 40 to 45 out of every 100 employees quit jobs every year.
    • India still hot favourite for call centre biz: Kelly Services
      Manufacturing, financial and outsourcing companies are still heading to India, Malaysia, and Singapore, to manage their call centre businesses in Asia, according to a report released by Kelly Services today.
    • HCL Tech cuts $780m outsourcing deal
      HCL Technologies, the country’s fourth-largest software services exporter, has cut a $780-m outsourcing deal with Skandia, the 151-year-old financial services firm owned by Old Mutual.
    • EXL Service acquires Inductis in cash and stock deal
      EXL Service Holdings, a Gurgaon-based BPO, announced on Thursday that it had acquired Inductis, a strategy and analytics company serving the financial services and insurance industries. According to industry sources, the deal size is in the range of $20-40m, which means the company is valued one-two times its revenues.
    • Today’s crisis, tomorrow’s opportunity
      Why should the murder of someone working in another BPO firm affect and bother you? Why should the security leak in another company affect your image? And yet, this is precisely what is happening today.
    • India to maintain edge in BPO: neoIT
      Indian BPO professionals’ salary in 2010 will be 15% of their US counterparts . India is expected to maintain its edge over its global counterparts in the outsourced IT Services (ITO) and business process outsourcing (BPO) sectors.
    • Baxy Infosol to double headcount
      Baxy Infosol, the BPO division of Continental Engines Ltd, on Tuesday outlined its expansion plans including doubling headcount to upto 2,000 professionals by the current financial year, on the back of new orders from companies for customer care operations.
    • Celebrations there, off-day here
      July 4 may be just one more day of hot air and humidity in Chennai. But impact of Independence Day in the US is felt here, in the offshore facilities, such as SlashSupport.
    • Outsourcing is passe, cos now bet on co-sourcing
      New methods of outsourcing are today redefining the way of working. One such way is co sourcing which is an investment relationship marked by shared objectives shared risks and shared rewards between two companies, one of which is a service provider.
    • Warburg, BA to cut WNS stakes through ADS issue
      Private equity firm Warburg Pincus is likely to reduce its stake in BPO company WNS from 64.7% to 53.6%. Warburg Pincus is selling 1.49 m WNS shares through an American Depositary Shares (ADS) issue to the public in US.
    • Karnataka University to offer animation degree
      Karnataka State Open University (KSOU) has become the first accredited institute in the country to offer a degree course in animation.
    • Canadian lawyers eye Indian KPOs
      Following the footsteps of call centres, data processing and accounting firms, lawyers in Canada have begun outsourcing legal work to India.
    • Age of the virtual robbers
      What is a BPO enquired my young son. I paused for a minute to ensure that the abbreviation did not have any other connotation because his questions always seemed loaded with irony.
    • Accenture scaling up BI capabilities
      Accenture is scaling up its business intelligence (BI) capabilities in India and as part of this initiative is setting up two centres of excellence in Bangalore to showcase its solutions.
    • BPOs in S’pore pay more than Indians
      Call centre operators in Singapore command at least three times more in wages than their counterparts in India, a news report said on Monday.
    • BPO honchos now playing musical chairs
      There is a kind of musical chairs being played in the top managements of BPOs. Quite a few BPO top honchos have hopped from one back office to another. The latest on the list, according to sources, is Rakesh Chopra, country head, Convergys, who has just left to join Genpact as the head of Genpact-Wachovia process.
    • Recruiters head Chandigarh way
      In the past few months, nearly all the big names in the BPO and IT industry have been scouring the city for possible recruits.
    • Canadian BPO deal takes Transworks to No 2 slot
      Transworks, a BPO arm of Aditya Birla Nuvo group, will leapfrog into the top ranking and become the second-largest Indian BPO company with its acquisition of Canadian BPO company Minacs. Transworks and Minacs’ combined revenues will be around $300m.

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