February 2007 News

  • February 2007
    • CRM Fails to Excite Small Businesses
      Small businesses have typically shied away from complex software deployments. CRM, for instance, still has a low penetration rate in this end of the market despite the number of offerings from such firms as Microsoft (Nasdaq: MSFT), Salesforce.com (NYSE: CRM), FrontRange, Sage Latest News about Sage Software and others.
    • US companies offshoring business nearer home
      In what could be bad news for the Indian BPO sector, a growing number of Silicon Valley companies are moving offshore businesses to geographically nearer locations in an effort to cut costs and address customer-service complaints.
    • Japanese outsourcing market set to surge
      The third party logistics (3PL) market in Japan is still in the development stage and hence offers extensive potential for growth in future, says a new analysis released by Frost & Sullivan titled Strategic analysis of third party logistics (3PL) markets in Japan.
    • Indian tutors offer new class of outsourcing
      From answering bank-customer queries to insurance-claims processing, outsourcing is now moving fast into what is regarded as the heart of culture – education.Armed with all the assets to provide online tutoring services to clients overseas, India is set to bite into the growing online tutoring business. It is being described as the front-runner in the race to become the world’s online tutoring hub.
    • Aegis buys US BPO for Rs 100-cr
      The Essar-owned Aegis BPO has bought Global Vantedge, a US-based credit and receivable management BPO for Rs 100 crore. The acquisition, the fourth by Aegis in the past one year, is expected to contribute over $25m in revenues to the BPO business of the group.
    • Ayala eyes BPO companies with India presence
      Collaboration in the BPO space is happening from an unexpected direction as countries which could be even lower cost than India are muscling onto the scene. The Philippines-based Ayala Corporation is targeting acquisition of BPO companies with a presence in India to leverage the strength of the two countries, which is presence of large numbers of English-speaking people.
    • BPOs face flak for illegal telephony
      In a bid to clamp down what is termed as “illegal” use of internet telephony, the government has directed internet service providers (ISPs) to stop providing bandwidth or all internet related services to call centres and BPOs which have not registered with the Department of Telecommunications.
    • Vangal plans full innings in Cambridge
      Scandent Group’s move to sell off one of the largest listed BPO companies, Cambridge Solutions, has taken a new turn. Sources said Scandent’s original promoter Ramesh Vangal, with about 18% stake, is likely to stay put in the company, and may rope in a new financial investor to buy out the current co-promoters.
    • West Bengal charts norms for IT-ITeS cos
      On the heels of Xponse CEO Sanjay Kedia’s arrest by the Narcotics Control Bureau over his firm’s alleged links with an international drug cartel, the West Bengal government is planning to evolve a code of operational guidelines for IT/ITeS firms operating out of the city’s Salt Lake Electronics Complex (Saltlec).
    • Infy BPO plans to set up Latin American centre
      Bangalore-based IT major Infosys Technologies subsidiary Infosys BPO is planning on setting up a delivery centre in Latin America. The centre is expected to become operational in six months and will be part of its BPO global delivery network. After China and Eastern Europe, this will be its third delivery centre outside India.
    • IBM Daksh plans centre in Vishakapattinam
      Bullish on India’s talent pool, IBM Daksh is planning to expand its operations by setting-up a new delivery centre in Vizag soon. “We will be launching a facility in Vizag, as it is a good tier II city for expansion. We will make a formal announcement soon,” IBM Daksh CEO, Pavan Vaish told ET.
    • Cauvery enrages Bangalore IT industry; Protests on Feb 18
      The ‘pro TN’ Cauvery Tribunal verdict on sharing of Cauvery water between Karnataka and Tamil Nadu has again evoked displeasure among Kannadigas. Protests were held all over the state against the verdict on Feb 12, 2007. But the furore denies to die down. Joining the many Kannada organisations in their protests now are the Kannadiga IT professionals.
    • HRO growth will still take some time
      Ranjan Sinha, chairman and CEO of Summit HR Worldwide, talent supply chain management and Recruitment Process Outsourcing (RPO) firm that recently announced a headquarter in Pune and expansion in India, tracks HRO traction so far in the Indian Off shoring industry in an interview with Pratima Harigunani from CyberMedia News
    • Zyme expands Bangalore operations
      Analytic process outsourcing firm Zyme solutions on Wednesday announced the opening of a second facility here. The new 8,000 sq ft facility would house data analyst operations across Zyme’s businesses, a company statement said.
    • Infosys on prowl to buy smaller BPOs
      IT bellwether Infosys Technologies is on the prowl to acquire small and medium business process outsourcing companies that fit strategically with the operations of its subsidiary, Infosys BPO.
    • How to Respond to a Data Breach, Part 2
      As detailed in Part 1 of this two-part series, the wealthier companies become in data assets, the more attractive they become to attackers. Therefore, a multipronged crisis response plan is recommended — before a breach occurs — to save money and reputations.
    • Bundh amounts to loss of Rs 500 crore for Karnataka
      12 hour bundh the previous day, has led to an immense loss to the state. It is estimated that over 500 crore of rupees is a loss to the industry. Industrial units and business establishments were shut down depicting their support for the cause. R.C Purohith, the president of Federation of Karnataka Chambers of Commerce and Industries (FKCCI) said, “every shutdown would cause Rs 500 crore loses to industries”.
    • ESO needs scale to realize scope
      Captives vs service companies, deal sizes, sales cycles, talent crunch and pull from IT sector, after-markets and much more. Global Engineering Product Development through India is not only a billion dollar market opportunity as projected by Booz & Hamilton, but also a subject of pithy debate as witnessed at the Nasscom Leadership Forum.
    • Outsourcing pie to touch $50 bn by 2010: Nilekani
      India’s outsourcing pie might increase to $50 billion by the turn of the decade from $20 billion today. And to top that, the share of services in global GDP will vroom from a 71 per cent morsel to 80 per cent bite in the next 20 years. These are just some of the glimpses that emerged at a high-brow crystal ball gazing by industry doyens like Nandan M Nilekani, CEO, Infosys, B Ramalinga Raju, founder and chairman, Satyam Computer Services and Pramod Bhasin, CEO, Genpact.
    • 24/7 Customer restructures senior leadership
      24/7 Customer today designated senior leader Ms Renée Kuwahara to the post of the Chief Operating Officer and Co-Founder Mr. S Nagarajan to the position of Chief People Officer.
    • Karnataka Govt shows interest in funding IT-ITeS companies
      This could be good news for IT-ITeS startups. The ministry of communications and information technology is mooting creation of a national venture capital fund to support small and medium enterprises in the IT segment. The fund is to be established by software technology parks of India (STPI) and the ministry has asked for a grant of Rs 100 crore for the same.
    • Chrys Cap selling BPO to Aegis
      Private equity major Chrys Capital and other investors are selling credit and receivable management BPO Global Vantedge to the Essar-owned Aegis Communications for around Rs 100 crore. A formal announcement is expected shortly.
    • BPO: China fast catching up with India
      China is fast catching up with India by offering cost-effective outsourcing services with the latest success being US telecom giant Avaya setting up a large facility in the country, a research firm said.According to a recent report from Callcenters.net, an Asian research firm, China’s call centre industry is set to grow 22 per cent this year.
    • Watch out for India’s IT-BPO sector
      The Indian IT-BPO sector is expected to rake in revenues in excess of $47.8 billion — almost a 10-fold increase over the aggregate revenue of $4.8 billion in FY1998.The sector, including domestic and exports segments, is growing at an estimated 28 per cent in FY07. Moreover, direct employment is expected to exceed $1.6 million, according to Nasscom’s just-released Indian IT industry ‘Strategic Review 2007’ report.
    • Aero India underway, govt eyes outsourcing
      The Aero India 2007 international aerospace and defence exposition began today with India pitching itself as a global outsourcing destination offering competitive prices and a huge pool of skilled manpower.Declaring open the sixth edition of the biennial exhibition at the Indian Air Force station at Yelahanka, Defence Minister A K Antony said with the advantage of global outsourcing now established, Indian defence industry has a lot to offer through its products and platforms, assemblies, sub-assemblies and components that are competitively priced.
    • US slowdown will not hit outsourcing
      On the sidelines of the JP Morgan IT Conference, Bhavin Shah of JP Morgan says that IT spending in the US may slow this year, but this will not really impact outsourcing. He see a lot of potential in chip designing and solar energy going forward, and believes that one will continue to see a good pricing environment for tech companies. However, not many returns are seen from incentives to semiconductor makers.
    • BPOs cutting down on graveyard shifts
      The BPO business has quietly seen one of the biggest shifts since it started about a decade ago. Night-time work has come down from 100% to about 60% and many of the 500,000 employees in the $9-billion BPO industry work day shifts now.
    • Rural BPOs to bridge digital divide
      The digital divide separating rural and urban India may finally be narrowing, thanks to setting up of business process outsourcing units in villages. Jallikakinada, an obscure village in West Godavari district of Andhra Pradesh, had nothing but a closed ice factory in August 2005, when Byrraju Foundation, the NGO outfit of Satyam Computers, set up a BPO in the factory.
    • RightNow Adds New Voice Capabilities
      RightNow Technologies has added new capabilities to its voice application, which it first introduced in June 2005 when it acquired Convergent Voice, a voice automation vendor. In this major upgrade, the firm has enhanced the application’s inbound functions and has begun developing outbound features, as well.
    • BPOs Genpact, Vertex Data may merge
      Oak Hill Capital Partners, a US-based private equity firm, is understood to be working towards merging its two BPO portfolio companies, Genpact and Vertex Data Systems. Sources close to the development said the merged entity would raise an initial public offering (IPO) that may be listed on a foreign or domestic bourse, in a landmark issue in the BPO space.
    • IT, BPO industry to grow strong at 31-32 pc: Raju
      Nasscom Chairman Ramalinga Raju today said that this year the IT and BPO industry is expected to grow at the rate of 31-32 per cent and exports could touch 30 billion dollars. Releasing Nasscom McKinsey study here, Mr Raju said if IT and BPO industry continues to grow at this rate, exports may hit 75 billion dollars by 2010 surpassing 60 billion dollar mark.

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