- April 2007
- Wipro suffers highest attrition rate
Despite offering better compensation package to its employees, IT bellwether Wipro is facing a high rate of attrition at 16.2 per cent during the last quarter of 2006-07 and 16.9 per cent on an annualised basis.The attrition rate in Wipro BPO was an astounding 48 per cent on an annualised basis, according to Wipro BPO Chief Executive T K Kurien. This was inspite of the BPO arm of Wipro being recognised among the Top BPO Providers for 2006 by the International Association of Outsourcing Professionals (IAOP). Wipro Technologies was also recently rated as the top Indian outsourcing firm in the Global Outsourcing 100 rankings.
- LPOs for industry-academia tieup
Indian legal process outsourcing (LPO) industry is pitching for industry-academia partnership to meet surging demand for talent. Even as the sector grows at a scorching 100% and firms are on a recruitment spree, industry experts believe such a collaboration alone will help the industry maintain that momentum.
- New income tax ruling to hit BPO firms hard
In an unprecedented judgment that could have far reaching ramifications, the Income Tax Appellate Tribunal (ITAT) has ruled that foreign companies having local agents with Permanent Establishment (PE) will have to pay taxes in India.
- Secova to hire over 100 people by Dec 2007
The California head-quartered Secova eServices, an HR and benefits management services company, has announced its plans to open its second knowledge centre in Chennai. It is proposing to raise its headcount from the current 300 to over 400 by the year end.
- Hinduja TMT completes demerger of BPO biz
Outsourcing major, Hinduja TMT Ltd has demerged its ITES-BPO business into a separate company called ‘HTMT Global Solutions Ltd’.While Hinduja TMT would re-commence trading on the stock exchange from today, HTMT Global Solutions would list after completion of regulatory approvals, Hinduja TMT informed the Bombay Stock Exchange.
- Outsourcing grows, deal value drops in India
While the outsourcing momentum continues to grow, contract values and their duration in software services segment are declining as companies are renegotiating a large number of old deals to realign their business priorities with changing market trends.
- Employee verification must in Karnataka: Police
The Nadeem Kashmiri-HSBC case and the recent arrest of Mumbai train blast accused Mohammed Mujamil Sheikh, an Oracle employee, have resulted in the police insisting on pre-employment verification for new recruits from outside Karnataka.
- Infosys BPO in pact with Karnatak varsity
Taking forward its industry-academia initiatives, Infosys BPO, the business process outsourcing subsidiary of Infosys Technologies, today signed an MoU with the Karnatak University to enhance the quality of education and increase the employment opportunities of students across general education disciplines.
- IT BPO revenues may cross $48bn
The Indian IT-BPO sector, both in exports and domestic business, is expected to register a growth of 28 per cent in 2006-07 and revenues are likely to exceed $47.8 billion, nearly a 10-fold increase over the aggregate revenue in 1998.The direct employment offered by the sector is likely to cross 1.6 million. In 1998, the aggregate IT-BPO revenue was $4.8 billion.
According to Nasscom Strategic Review 2007, IT services exports accounting for 55-57 per cent of total exports, are growing at 36 per cent and expected to reach $18.1 billion in 2006-07.
- Outsourcing may see revival in 2007
The US slowdown stands to benefit the estimated $8 billion Indian business process outsourcing (BPO) industry, at least in the short term.US companies, hoping to save money during the recessionary phase, are likely to increase outsourcing of information technology services.
- Infosys will be $4 billion company by next year
Information Technology (IT) major, Infosys Technologies Ltd today declared that its revenues were expected to grow by 22.6-24.6 per cent in the current financial year (2007-08) and reach a whopping USD four billion.
- Infosys’ holding in BPO arm goes up to 99 pc
Infosys Technologies Ltd said today its holding in Infosys BPO reached 98.92 per cent as of March 31, 2007.During the January-March quarter, Infosys acquired 2,11,909 shares of Infosys BPO and entered into a forward agreement to acquire 3,60,417 shares of Infosys BPO by February next year from various employees of Infosys BPO.
- How to Create a Good Relationship with Your Indian Vendor
Despite the threat of commercial ascendancy from China, Russia and others, India still leads the pack as an offshore outsourcing destination, and its global presence is only growing. You need your Indian vendors’ expertise, you entrust them with many of your company’s secrets, and you depend on them for profitability. A good relationship benefits you both. But relationships are tough to build in the best of circumstances, and when you bring cultural differences and distance into the mix, misunderstanding and frustration can arise on both sides. Here’s how to bridge the U.S.-India cultural divide.
- IBM Daksh recognised as India’s number one BPO
IBM Daksh, the process transformation and management arm of IBM, has been ranked the number one BPO firm in the ‘India’s Most Respected Companies’ survey, conducted by Businessworld Magazine.
- Joint bid by Carlyle-Vangal for Cambridge takeover
A joint bid by private equity major Carlyle and serial entrepreneur Ramesh Vangal is set to snap up Cambridge Solutions, one of the largest listed BPO companies, pipping rival bidders like EDS, Apollo and HCL to the deal. Sources said Carlyle is expected to buy about 42 pc of the promoter stake that is on the block for about $170 million.
- Infovision to invest Rs 400 cr in next 3 years
IT and BPO service provider Infovision will invest Rs 350-400 crore in the next three years for expanding its infrastructure and training people and is expecting a topline of Rs 1,000 crore during the same time period.The city-based company will also increase its number of employees to 12,000 by March 2008 from the current 7,000, Infovision Group President Aditya Gupta said.
- NRN becoming next President will be fantastic: Prez Kalam
President A P J Abdul Kalam said it will be ‘fantastic’ if Mr N R Narayana Murthy, Infosys Chief Mentor and Non-Executive Chairman, would be made the next President of India.While answering questions from the trainees at the Infosys’ Global Education Centre, Asia’s biggest business training centre here, Mr Kalam replied in one word, ‘fantastic,’ when a trainee asked what the president had to say about Mr Murthy being made the next President of India as he was a special person.
- Using same base for BPOs not feasible
Global and domestic BPO businesses are as distinct as chalk and cheese or night and day. In fact, the differences are so stark that companies hoping to share infrastructure for the twin operations (domestic and global) may find it better to separate the two rather than try to blend the two. Experts point out that the experiment of working international at night and domestic BPO operations in day from the same facility has not worked.
- Re rise could hit IT cos revenues by 1-1.5%, Q4 growth seen at 5-7%
Even as rupee appreciation and fears over US slowdown throw the spotlight on FY08 outlook, analysts are expecting the fourth quarter revenues of frontline IT companies to grow between 5-7%, on a sequential basis. For the fiscal year ended March 31, 2007 analysts expect Infosys to steal a march on rivals TCS, Satyam and Wipro in both topline and bottomline growth.
- Australian MP slams offshoring jobs to India
An Opposition party in Australia has expressed concern over the growing trend of offshoring jobs to countries like India, saying high-skill “knowledge jobs” could follow the manufacturing sector offshore if the country did not invest more in higher education.
- Xansa inks 19 m pounds contract with UK company
Outsourcing and technology company Xansa has signed a six-year 19 million pounds (Rs 161 crore or Rs 1.61 billion) contract to provide finance and accounting and payroll services to National Health Service professionals of the United Kingdom. Xansa’s NHS Shared Business Services, by virtue of the deal, becomes the largest external payroll processing provider in the NHS and would serve 58,000 flexible workers, customers and suppliers, a company release said.
- Global, local BPO biz not the best mix
Global and domestic BPO businesses are as different as chalk and cheese. In fact, the differences are so stark that companies hoping to share infrastructure for the twin operations (domestic and global) may find it better to separate the two rather than try and blend them.Experts point out that the experiment of working international at night and domestic BPO operations in day from the same facility has not worked. How different the two businesses are is revealed by the numbers. Everything from billing rates and profit margins to employee salaries and quality of infrastructure is different. Mixing the two businesses and operating them from same premises is difficult.
- Delta Airlines cancels BPO contract with IBM Daksh
The world’s second largest airline (in terms of passengers carried) – Delta Airlines has pulled out its back office operations from Gurgaon-based IBM Daksh. About 500 people were working under Delta processes in the BPO providing ticketing, customer relation services to the US-based airline. IBM also services world’s fourth-largest airline (by passengers carried) – United Airlines (UA).
- EXLService eyes domestic BPO market
Nasdaq-listed BPO firm EXLService Holdings on Tuesday said it is exploring the possibility of serving the domestic BPO market, for which it has initiated talks with its global clients who have operations in India.
- IT, ITES growing at 28 pc: Premji
A buoyant Indian IT and ITES sector, including the domestic and exports segment, is growing at an estimated 28 per cent in the financial year 2006-07, offering unlimited opportunities to the aspirants, Wipro Corporation Chairman Azim Premji said on Tuesday.
- Genpact ties up with ACCA, GTG
With an aim to provide extensive knowledge of global accounting standards in the marketplace, BPO services provider Genpact has announced an alliance with Association of Certified Chartered Accountants (ACCA) and Get Through Guides (GTG).
- BPOs no more a nightmare
If once night shifts were the bane for the BPO worker, it is turning to be the boon for the newer, younger breed. If earlier they worried about stress, sleep disorders, fast burnout and the lack of a social life, now they find the brighter side — that of better time management, more pay and no nagging parents.
- Wipro suffers highest attrition rate
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