August 2007 News

  • August 2007
    • India’s could lose 40% BPO market share by 2007
      A new report from market research firm Gartner, Inc. warns that a labor crunch and rising wages could erode as much as 45 percent of India’s market share by 2007.Indian industry watchers acknowledge that the country’s outsourcing industry — its golden goose of the moment — is indeed facing a “serious” problem.
    • Video: India’s BPO export adds 47 pc growth
      Country’s BPO firms have recorded a 47 per cent growth in exports during 2006-07 at Rs 20,890 crore, according to a study by IT magazine, Dataquest.
    • Tata Consultancy bags deal with Hawaiian Airlines
      Tata Consultancy Services said on Monday it had signed a multi-year contract with Hawaiian Airlines to provide IT, business process outsourcing and infrastructure services.The company did not put a value on the deal, but a source close to the development said the total contract was worth about $40 million.
    • Green data workshop to focus on data centres
      The Green Data Centre Workshop, forming part of the forthcoming Internet Data Centres Asia summit taking place in Singapore 27-28 September 2007 will focus on new technologies as well as the practical implement of Green in the data centre facility.
    • Subprime woes cost Infosys BPO prime client
      Yet another casualty of the US subprime crash in the Indian BPO sector is the Bangalore-based Infosys BPO, which has lost a prime client, Green-Point Mortgage. GreenPoint Mortgage, a mortgage arm of Capital One (a financial services company) declared its bankruptcy on August 20 in the US. This will eliminate about 1,900 jobs across the US alone.
    • Do-not-call registry to hit small telemarketers
      With the Do-Not-Call (DNC) registry kicking in from September 1, 2007, the domestic outbound telemarketing industry expects about 25% slowdown in hiring and turnover growth. In the next few months, an estimated 20-25% reduction in calls (3-4 lakh calls per day) is also expected.
    • India’s share in UK’s ITeS mkt trebles
      The share of the Indian IT service providers in the UK’s IT/ITeS market is on the high growth mode having tripled its revenue in the last four years, to a consulting firm.According to research and consulting firm Ovum: “Driven by sustained demand for offshoring capability and lower prices, the country (India) has tripled its share of top 50 revenues since 2003 and now has four representatives — TCS, Wipro, Infosys and HCL in our rankings.”
    • Infovision plans expansion; will invest Rs 300 cr
      Infovision, a BPO services provider, will invest Rs 300 crore and hire about 16,000 professionals in the next three years as part of its expansion plan. The company aims at five-fold growth in revenues by 2010.
    • Sify launches new contact solutions product
      Sify today launched its Contact Center Solutions, developed on a platform provided by Aspect Software, for the contact centre industry in India.
    • Apparel firms go for outsourcing
      Mumbai-based fashion apparel manufacturer Spykar Lifestyle recently received $5 million (Rs 20 crore) investment from private equity firm Avigo Capital Partners. However, unlike most companies which use the funds to increase manufacturing, Spykar will do the opposite.
    • FirstSource to buy MedAssist for $300 mn
      Firstsource Solutions, a leading Indian pure-play Business Process Outsourcing (BPO) firm has emerged as the frontrunner in the quest to buy US-based healthcare player MedAssist, says Business Standard.Close to $300 million (around Rs 1,200 crore) is the deal size says sources . If it takes place, the acquisition will be one of the largest overseas acquisitions after Wipro’s buyout of Infocrossing for around $600 million, and the largest in the BPO space.
    • India’s BPO firms record 47 pc growth: Survey
      India’s Business Process Outsourcing (BPO) export posts a 47 per cent growth during 2006-07 at Rs 20,890 crore, according to a study by a magazine.Among the BPO companies, Genpact has retained the top slot with revenues of Rs 2,220 crore, Dataquest said in its survey on Top 20 BPO firms in the country.
    • Sub-prime fear now haunts BPOs
      The US sub-prime lending crisis forced Mumbai-based WNS Holdings to revise its net income guidance by 60 per cent, and this is worrying the $8 billion business process outsourcing sector players and analysts.
    • IT outsourcing firms see no long-term subprime impact
      Although the financial woes of the US mortgage industry with the subprime market have had their tremors hitting some Indian information technology companies catering to the banking and financial services segment, they are unlikely to lead to any lasting or major problem for the outsourcing industry, experts said.
    • Timken India steps up services business
      Outsourcing of services is not just about offshoring, as Timken India has shown. MillTEC, its service solution for the steel industry, is growing with Timken. MillTEC has added two new clients to its earlier three in its production BPO.
    • Nasscom urges govt to extend STPI scheme
      IT industry Nasscom today urged the government to extend the STPI scheme beyond 2009 to partially offset the rupee appreciation impact.STPI (Software Technology Parks of India) scheme offers tax incentives to IT/ITeS companies till 2009.
    • Obama’s recipe for curbing outsourcing
      Amid the ongoing debate over Outsourcing, a hot-button issue in the US, top Democratic Presidential hopeful Barack Obama has proposed denying tax reliefs to companies that ship job overseas but said that education system must improve to check the trend.
    • WNS loses client on US woes
      WNS Global Services, the country’s second-largest business process outsourcing company, has been hit by the turmoil in the US sub-prime lending market. First Magnus Financial Corp, one of its top clients in the mortgage business, has decided to stop work to WNS because of the crisis.
    • Aditya Birla Minacs Philippines unit inaugurated
      Her Excellency, Gloria Macapagal-Arroyo today inaugurated the Aditya Birla Minacs facility in Manila, Philippines. Aditya Birla Minacs is a subsidiary of Aditya Birla Nuvo.This center will expand the Company’s global footprint of offerings and add to the existing 30 delivery centers globally. The Philippines facility currently has about 200 employees providing inbound customer services to global clients.
    • BPOs are beginning to move to the gain-share model
      BPOs are beginning to move to the gain-share model as part of the shift towards providing solutions to clients, rather than doing a slice of the process for them happens
    • Jsoft Solutions Ltd sets up BPO sector in Bellary
      On 15th August, 2007 Mr. M P Prakash, Hon’ble Home Minister of Karnataka inaugurated a hundred seater BPO capable of employing 300 graduate youth.BPO to be run under the aegis of JSoft Solutions Ltd., the newly formed software arm of the JSW Group is part of an ambitious initiative of Mrs. Sangita Jindal, Chairperson of JSW Foundation.
    • Robert Bosch India to invest Rs 250 cr
      Robert Bosch India today announced expanding its facility by investing Rs 250 crore to realise growth opportunities in the IT and ITES space in the country.A top executive of the company said that the facility would become operational by early 2009 on Thursday.
    • Curbs on ECBs to aid IT-BPO sector
      Nasscom, IT industry today accepted the government’s fresh restrictions on external commercial borrowings (ECBs) and hopes to help the IT-BPO sector which has been hit hard by the rising rupee.”This is particularly helpful to the Indian IT-BPO sector, against the backdrop of the too much, too fast rise of rupee against the dollar,” Nasscom said in a release here on Wednesday.
    • Wipro BPO outsources hiring to MeritTrac
      Wipro BPO, the Rs 1,000-crore arm of Wipro Technologies, has outsourced its recruitment process to skills assessment company MeritTrac for reducing hiring cost by about 15-20 per cent. According to industry estimates, the company hires about 2,000 employees every month after scanning 20,000 applications.
    • No slowdown seen for IT, ITeS captive centres here
      The debate over the viability of the captive IT/ITeS centres still continues with a leading consulting firm stating that this segment is still recording growth in India with no signs of slowdown.According to Everest Group, the existing captive centres in India are still scaling up their operations. Everest country head Gaurav Gupta said established captive centres in India are looking at a business model that goes beyond labour arbitrage and bringing in higher value to its operations.
    • BPO biggies shy away from BOT projects
      The Build-Operate-Transfer model of business process outsourcing (BPO) is falling out of the favour of large Indian companies. Many large BPO firms that grew by developing outsourcing units for foreign clients, running them for a while before transferring them to the customers, are now shying away from such contracts.
    • IT firms to look within to tackle Re rise
      The IT sector is tackling a stronger rupee with stern measures. Most firms in the IT and ITeS industry are looking at cutting down on staff, reducing the bench strength and hiring more professionals with lesser experience to keep salary costs under control.
    • Contact Centers: Are You Drowning in Data?
      Market pressures and improving customer service have long been key components of contact center strategies. Best-in-Class companies identify the need to remain competitive as the top driver that organizations should consider when implementing an intelligent contact center. The need to improve first contact closure rate is highlighted by companies as the second driver.
    • Outsourcing: It’s not about cost saving alone
      Outsourcing is just no more about cost savings but also companies’ accessibility to right talent and geographic expansion, a latest survey on business outsourcing revealed.According to a study by global consulting firm PricewaterhouseCoopers, outsourcing has matured beyond cost reduction to become a way for organisations to better access talent and capabilities, gain more flexibility, reinvent their business model and drive innovation.
    • BPOs around NCR cautious after car-jacking incident
      The recent car-jacking incident of a call centre employee has raised concerns about the security of night travel in and around the NCR region. So much so, that the multinational firm IBM has issued security guidelines to its employees.The incident has raised issues of safety for employees of BPO companies in the region. Local authorities as well as the companies agree that the local support structure has not caught up with the expanding NCR region.
    • Prudential may sell India BPO
      UK-based Prudential PLC may be exploring opportunities to sell its business process outsourcing unit in India. The captive — Prudential Process Management Services (PPMS) — is located in Mumbai and has an employee strength of 1,800 people. Sources in the industry say, the company is in initial discussions with investment bankers for a possible deal.
    • Infosys to open BPO facility in Mexico
      In a bid to leverage advantage in reaching out to its clients in the US, IT giant Infosys Technologies would venture into Latin America by opening BPO facility in Mexico soon.Speaking to reporters here last night, company CEO and Managing Director, S Gopalakrishnan, said the 200-seat facility was being set up in the Latin American country. “We have our own place now. The unit will be operation soon,” he said.
    • Quatrro buyout US mortgage co for $15mn
      Quatrro BPO Solutions on Tuesday announced the buyout of mortgage operations of US-based Preferred Financial Group Inc for an undisclosed amount. The deal is pegged to be under $15 million though Mr Roy declined to comment on it.By this acquisition, Quatrro plans to provide end-to-end fulfillment services to US mortgage lenders across US.
    • Genpact Ltd eyeing to buy $100-200 mn
      Genpact Ltd., India’s largest back-office firm in terms of export revenues is eyeing acquisitions of firms with revenues of $100-200 million, a newspaper reported on Wednesday.
    • India in top spot in global outsourcing
      Reinforcing its prime position as the hottest destination for outsourcing, India has emerged as the largest market in the region cornering most of the global outsourcing contracts during the first half of 2007, ahead of Australia and Japan.Talking to newspersons here today, TPI India Managing Director Siddharth Pai, releasing the latest TPI Index on outsourcing contracts, said the total value of new outsourcing contracts in the $25 million plus bracket – where most significant outsourcing activity occurred) – was $5.4 billion, an increase of 100 per cent on the first half of 2006.
    • Nipuna gets eSCM level Five certification
      Nipuna Services, the Business Process Outsoursing arm of the Satyam group today announced that it had received the world’s first eSourcing Capability model for service providers.This highest rating for a BPO was granted by the prestigious IT services qualifiction Centre at Carnegie Mellon University, Nipuna CEO Venkatesh Roddam told newsmen here today.
    • Zensar Tech bags $7 mn insurance deal
      IT, BPO sevice provider, Zensar Technologies Ltd, has bagged seven million dollar (over Rs 28.27 crore) insurance deal from a South African insurance company.”We are delighted to take our business in the ‘Insurance Vertical’ to its 10 million dollar mark, with the acquisition of a new insurance account in South Africa,” Zensar Technologies Deputy Chairman and Managing Director Ganesh Natarajan said in a communique to the Bombay Stock Exchange.
    • Wipro Snaps Up U.S. IT Outsourcer Infocrossing
      Wipro is acquiring U.S. outsourcing company Infocrossing in a deal valued at $600 million, the latest in a slew of overseas buys by Indian companies.India’s third-largest software services exporter will pay $ 18.70 per share, a 5.5% premium to Infocrossing’s closing price Friday. The all-cash deal is the largest acquisition yet by an Indian software company.
    • NASSCOM sets framework for ITeS-BPO industry
      NASSCOM on Tuesday announced a framework for the IT-enabled services (ITES) and business process outsourcing (BPO) services firms to adopt ethical practices and corporate governance.The framework has a set of principles to be adhered to by member firms voluntarily. It includes employee-friendly policies, safety and security standards, a code of ethics in hiring, corporate social responsibility and industry initiatives.
    • Murugappa co buys out US firm for $11 million
      Murugappa group company Laserwords, which provides IT solutions for the printing and publishing industry, has acquired US-based Four Lakes Colorgraphics for about $11 million. The two decade old Four Lakes is a full service pre-media company with two facilities in Wisconsin and New York City.
    • Acquiring a BPO’s no longer an attractive growth tool
      Five years ago, when Wipro wanted to build back office outsourcing capabilities, it acquired Spectramind. Later, IBM built its business process capabilities in India by buying out Daksh. Such acquisitions gave companies a quick way to enter the booming sector or scale up existing capabilities.
    • Wipro BPO using MeritTrac for hiring
      Wipro BPO and skills assessment firm MeritTrac Services have partnered in the deployment of voice evaluation processes for mass recruitment drives over the telephonic delivery platform at Wipro BPO.Improving the quality of hires and minimising waste through early attrition were the principal drives behind this engagement. The companies said in a release that with a charter of hiring several hundreds of people every month at Wipro BPO, there was a need for a robust, scaleable evaluation methodology that would eliminate subjectivity in hiring.
    • Contact Center ID Verification Growing More Complex, Costly
      Even if not mandated by law, some contact centers are leaning toward stricter caller identification standards, said Ron Settele, product marketing manager for Intervoice. “We are finding the preferred solution is to not have the agent manage verification but to do it automatically. That way, it takes social engineering cons out of the equation.”
    • India in danger of being dethroned?
      In 2000, when employment-screening service provider HireRight was looking for a low-cost locale for software development, the Irvine (Calif.) company turned to an unlikely destination: Estonia. The Baltic nation hasn’t traditionally been thought of as a hotbed of tech talent, but it presented HireRight with a pool of well-educated, tech-savvy workers; a modern telecommunications infrastructure; and costs that were 2.5 to 3 times lower than they’d find in the US.

Also see news archives

Latest Columns

The average American against offshoring: 2013 do or die campaign

In 2004, Michael Emmons, a software developer had completed about six years of service at Siemens ICN in the United States, when he was informed that he and his colleagues would be replaced by foreign workers. Their employer had apparently decided to replace them with Indians. It was clearly not outsourcing jobs to India but […]

Making Cloud Work for Your Business

Cloud computing is taking the world of IT by storm. The promise it made of a flexible and cheaper IT is coming to realization. It is changing the way CIOs engage with their businesses and the way they contract for IT services. With the number of organizations hooking into the cloud, maximizing the potential of […]

Speak Your Mind