October 2007 News

  • October 2007
    • Rising Rupee: Boon or a bane for IT/BPO
      The IT sector and BPO companies have seen only good times, except in early 2000. This trend of the rising rupee will force them to be more innovative in managing their treasury, operational efficiency and their geographic footprint. For last several years, many Indian companies (the top 10), were satisfied with their on-site /offshore (read India) model.
    • Evalueserve plans Europe centre
      Knowledge process outsourcing (KPO) firm Evalueserve is going to set up a delivery centre in Eastern Europe in an attempt to reduce dependence on India and to tap better market in the region. The KPO outfit would also go for a public issue in 2009 with UK so far the leading contender for the listing. Evalueserve has centres in India, China and Chile. About 1,900 of its 2,100 employees are currently based in India.
    • Now, BPOs ring in Karwa Chauth
      The traditional Indian festival of Karwa Chauth—married women fasting for their husbands’ long life—seems to have caught on in the BPO industry as well.With women comprising almost half of most BPO staffers, HR departments across the ITeS industry are going all out to help female employees cope with work during festival time.
    • BPO industry put on notice: Tackle rising rupee
      Indian IT firms that weathered the rupee’s surge against the dollar in the fiscal second quarter are being told to tackle it in the long-term as foreign funds flood the local market.The rupee’s 12 per cent appreciation against the greenback since January is a “major concern” for the industry, said Jainder Singh, the top civil servant in the department of information technology.
    • Move up the value chain in KPO, IT industry: Govt
      Union IT Secretary Jainder Singh today called on export-focused software industry to cut costs and move up the value chain to combat the effects of the rising Rupee against the Dollar.Delivering the keynote address at the four-day ‘Bangalore IT.in 2007’, the Asia’s biggest ICT event which began at Bangalore International Exhibition Centre here, he said the increasing value of the Rupee against the Dollar, constant wage hikes and spurt in real estate costs had put the IT industry under severe pressure.
    • Rising Rupee claims first BPO victim
      US-based Spectrum Global Fund Administration, providing back-office operations to hedge funds in the US and the UK, is closing its facilities in India. The company had started its operations in India two years ago.
    • Genpact beats Firstsource to bag Citi BPO deal
      After many a false alarm and multiple rounds of negotiations, the sale of Citigroup”s captive BPO operations has finally been concluded with Genpact winning the final bid in a closely-run race with Firstsource Solutions.The transaction is the first such sale of a large captive BPO and sets the precedent for other captive managements that were closely following the process. In terms of transaction value, it is the largest deal in the business process outsourcing segment.
    • Yoga stress buster for BPO cabbies!
      The BPO industry wants to initiate its notorious bunch of cab drivers into meditation to bring some sense of discipline into their driving. So, after senior-level employees and agents, it’s the turn of BPO cabbies to take to the stress-busting sessions.The initiative has been crystallised by the recent incident of a BPO cab mowing down seven people in Delhi. Even in the past there have been a spate of incidents of rash driving by BPO cabbies, which have caused fatal accidents.
    • Bangalore becomes first WiMax enabled city
      Notwithstanding the delay in its implementation, Bangalore will be the first city in the country to be fully WiMax-enabled, offering wireless broadband service covering 743 square km of the city by the year-end.Disclosing this at the curtain raiser press conference for the upcoming IT mega event ‘BangaloreIT.in-2007’, Karnataka IT and BT Secretary M N Vidyashankar said 70 per cent of the fixed base stations had been set up after the Government identified the bidder.
    • Cognizant to acquire marketRx for $135 mn
      Cognizant said it will pay $135 million in cash to acquire New Jersey-based marketRx, a provider of analytics and related software services to life sciences companies.
    • Wipro Infocrossing marriage starts paying dividend
      On August 8 when Wipro paid $600 million to acquire US-based Infocrossing, a $234-million infrastructure service provider, many analysts felt that it was an expensive deal.But two months later the reasons for the acquisition, the largest overseas deal so far by an Indian IT company, are beginning to get clear.
    • Hackett stresses on transformation, process improvement in BPO
      As the offshore services market matures, transformation and process improvement are likely to play a growing role in companies business process sourcing decisions, according to a new research from the Hackett Group, a global strategic advisory firm and an Answerthink company.In fact, the ability to offer transformation support may be the most significant opportunity, and possibly the greatest threat, that offshore markets like India will face in the coming five to 10 years, said Wayne M Mincey, President, Hackett Group while addressing a joint press conference here today.
    • Wipro to start recruitment centres for BPO business
      In a bid to lower recruitment costs and attract talent, Wipro has decided to set up recruitment hubs across India for its BPO operations.The company intends to roll out 25-30 such centres over the next two years which are slated to contribute 20-25% of its manpower requirement.
    • Accentia Tech acquires 3 US BPOs for Rs 80 crore
      Mumbai-Based business process outsourcing company Accentia Technologies has acquired three US-based healthcare BPO companies for about Rs 80 crore, sources close to the deal said. It bought Florida-based GSR Physician Billing Inc and GSR Systems Inc and Oregon-based medical transcription services provider DenMed Inc, in cash-cum-stock deals.
    • WNS market cap touches $1 billion
      NYSE-listed WNS (Holdings) has achieved a market capitalisation of $1 billion, becoming the second Indian BPO listed on the US bourses after Genpact (market cap of $3.29 billion) to achieve the feat.
    • Book-keeping contracts to remain strong for BPOs: Study
      Outsourcing will remain strong in 2008, with HR outsourcing contracts worth $1.1 billion and finance & accounting outsourcing (FAO) contracts worth $600 million coming up for renewal, according to offshoring advisory firm Everest Research Institute.
    • MeritTrac’s Employability Test for BPO/ ITES sec
      MeritTrac Services, India’s Largest Skills Assessment Company, today announced the launch of TracSkills National Employability Test (TNET) to be held across 11 cities in separate phases.This unique initiative for the BPO/ ITES sector aims at creating a single platform for all fresh graduates from across the country to showcase their skills to the industry. The first phase of the test is being held simultaneously in Pune Hyderabad and Cochin on October 7, 2007 after an initial pilot in Indore and Coimbatore. The other cities being covered in separate phases are Chennai, Nagpur, Delhi, Hubli-Dharwad, Aurangabad & Jaipur. The programme is being endorsed by some of the largest BPO players in the country like Wipro BPO, Firstsource, Patni, Reuters and Mphasis.
    • BPO staff stressed? Govt plans new norms
      Unfazed by IT industry Nasscom’s attack for his comments on the health of BPO workers, Union Health Minister Anbumani Ramadoss on Friday said his ministry is planning to come out with guidelines for people working in the BPO and IT industry.
    • Captive BPOs perform well in India
      Majority of MNCs which have offshore operations in India believe their captives are delivering well on cost savings and service expectations, contrary to the belief that these units are turning into loss-making bodies for the parent firms.
    • Game on for father of Indian outsourcing
      The father of Indian outsourcing, Raman Roy, is ready to step into the field of offshoring for gaming firms. His business process outsourcing outfit, Quatrro, is all set to offer back-office services to gaming companies.
    • eClerx Files For India’s First IPO By A KPO Firm; To Raise Rs 101 Crore
      This could be probably India’s first IPO by a KPO firm. Mumbai-based eClerx Services has filed for an IPO with Indian market regulator SEBI to raise Rs 101 crore ($25.6 million) from the capital market. This involves a fresh issue of shares and an offer for sale from the promoters and one of its investors Burwood Ventures. eClerx, set up in 2000, provides data analytics and data process management services to the retail, manufacturing and financial services industries. It employs about 1,000 people, and has offices in Mumbai, London and Austin Texas, the US. It plans to set up a new facility at Hinjewadi in Pune with part of the IPO proceeds.
    • BPO to be strongly hit by Re impact
      The country’s BPO sector will continue to face the brunt of the appreciating rupee which will hit margins by 0.2-0.5 per cent in the coming quarters, top industry players today said.”BPO and small companies are likely to bear the brunt of rise in rupee in comparison to bigger software firms as they are working on strategies and have additional levers to reduce the impact on profitability,” Nasscon Chairman and Cognizant Technology Solutions Vice Chairman Lakshmi Narayan told reporters here.

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