June 2008 News

  • June 2008
    • Datacraft plans acquisitions in security, data centre, BPO
      IT solutions and services provider, Datacraft India, has earmarked $5-10 million for acquisition in the security, data centre and business processing outsourcing (BPO) space, a top company official said.“We want to scale up our revenues, and are looking for acquisition of a company providing solutions and services in the areas of security, data centre and BPO,” Datacraft’s director, solutions development group and alliances, Andy Cocks, told PTI here.
    • Integreon named top global KPO provider
      Integreon Managed Solutions, a Knowledge Process Outsourcing (KPO) firm, today said it has been named the top-ranked global KPO provider by the 2008 Black Book of Outsourcing, the Brown-Wilson Group’s prestigious annual survey of the global outsourcing industry.This is the third consecutive year the company has received the award, a release said here. The company was ranked third among the Legal Process Outsourcing (LPO) providers overall and led all vendors in the sub-category of Litigation Document Review.
    • IBM leads the race for Citi BPOs
      Financial services major Citigroup, which is under pressure from mounting credit-related losses in the US, is believed to be re-structuring its India back-office operations, valued at around $1 billion, in a bid to cut costs and monetise some of these assets.The bank is learnt to have embarked on a larger exercise involving the sale and outsourcing of most of its back-office assets under the new management led by CEO Vikram Pandit.
    • IT companies face infrastructure problems in small cities
      IT and IT enabled services (ITES) companies, which are planning to make investments in small cities, face serious infrastructure problems there, said a top industry official here on Saturday.Speaking at an IT conference ‘SEZ-India 2008’ organised by MMG Worldwide here, BPO major FirstSource’s infrastructure and administration vice-president Nakul Subramanyan said: “Even the basic building design is not very conducive to set up a unit. The structures are not convenient for housing facilities like air conditioning vents, service shafts and other things.”
    • Outsourcing: Is India Losing Its Competitive Edge?
      India’s 2008 Finance Act, which its president approved on May 10, will greatly impact U.S. tech companies with outsourced operations in the country. For instance, an increase in excise tax is included in the Act, and the short-term capital gain rate has been increased from 10 percent to 15 percent.
    • The New Contact Center Profit Model
      Better brand awareness and increased customer retention and satisfaction are just a few of the benefits of transforming a contact center from a cost center to a profit center. However, in making this transition, companies should build on existing strategies instead of throwing out what they’ve learned about contact center management.
    • For IBM, deal to be a good fit
      Citos is primarily involved in remote infrastructure management for Citigroup but also does some amount of application development. It employs about 2,500 people and services Citi’s operations in 30 countries from four facilities located in Chennai and Mumbai. “Citos was in the market sometime back.But talks were suspended and the asset went off the market just before the new management changes were made,” said a source familiar with details, confirming that three players were in the contention for it.
    • IBM leads race for Citi BPOs
      Financial services major Citigroup, which is under pressure from mounting credit-related losses in the US, is believed to be re-structuring its India back-office operations, valued at around $1 billion, in a bid to cut costs and monetise some of these assets.The bank is learnt to have embarked on a larger exercise involving the sale and outsourcing of most of its back-office assets under the new management led by CEO Vikram Pandit.
    • BPOs grapple with inflation
      IT-BPO firms, which are already facing a US slowdown and currency fluctuations, are now busy in firming up their plans to tackle a rising inflation in the country and its impact on salary, sales, general and administrative (SG&A) and travel costs, which can dent their profit margins.According to analysts, the immediate impact of a rising inflation would be on salary. Avinash Vashishta, Tholons Investment Advisory Research, said: “Salaries will now have to be hiked by more than what the companies had decided. Last year, there was almost a 15 per cent rise in salary, while this year it may go up by 8-9 per cent.”
    • HTMT opens second centre in Chennai
      HTMT Global Solutions today inaugurated its second delivery centre at Nandambakkam in Chennai, which will cater to both domestic and international businesses.Built on metropolitan area network between offices and spread over 48,000 sqft, the centre has a capacity of 1,200 seats and it works on IP technology for servicing clients, the company said in a statement.
    • CPA Global eyes 25-30 per cent market share in Indian LPO market
      Eyeing a bigger share of India’s legal process outsourcing space, CPA Global, a leading player in this segment, is set to scale up its Indian operations and has targeted a 25-30 per cent share in the domestic market in the next few years.”We are very clearly focused on achieving a leadership position that will ensure us getting a 25-30 per cent (in India)” CPA Global’s Country Head, Bhaskar Bagchi, said.
    • BPO firms confident of beating US recession
      At the concluding session of Nasscom’s BPO Strategy Summit in Bangalore recently, 24/7 Customer’s co-founder S Nagarajan made an unusual and passionate plea. He asked the large audience to write letters to newspapers whenever they found articles that portrayed the BPO industry in a negative light. “If you have different experiences from that stated in the articles, you should all write to the editors concerned,” he said.
    • Netmagic announces RIMM services for Indian market
      IT service provider Netmagic Solutions on Thursday announced it is launching a suite of Remote Infrastructure Monitoring and Management services for the Indian market which will allow users to monitor and manage resources across multiple platforms and vendors.Four services provided under the suite are InfraMonitor to monitor the status of resources, InfraInsight to identify the cause of the problems, InfraManage to allow management of resources and InfraSecure to assess security related data and logs.
    • Wal-Mart plans IT back office in Bangalore
      A new address may be added to Bangalore’s already-crowded IT landscape. Wal-Mart, the world’s biggest retailer, is mulling a captive IT/ITeS unit in India’s tech capital, with the potential to create several hundred jobs, sources said.The $388-billion retail giant, based in Bentonville in the US, has outsourcing ties with IT vendors like Infosys and has done a recce for developing a captive shared service centre to cater to multiple functions in its worldwide operations. Besides IT development and maintenance, a shared service centre supports different parts of a global enterprise such as HR, finance and accounting.
    • Jobs’ outsourcing to India, China not reversible: Obama
      Outlining his vision for a strong US economy, presumptive Democratic presidential candidate Barack Obama has said outsourcing of American jobs to India and China cannot be reversed.”Revolutions in communications and technology have sent jobs wherever there’s an internet connection, that have forced children in Raleigh and Boston to compete for those jobs with children in Bangalore and Beijing,” Obama said in a speech in Raleigh, North Carolina.
    • Wipro sees revival in outsourcing business
      Wipro Ltd, India’s No. 3 software services exporter, is seeing a revival in flow of outsourcing deals as the turmoil in the global financial industry eases a bit, joint chief executives of its IT business said. Still, Wipro is cautious about its prospects in the next two quarters and expects business to accelerate towards the end of the fiscal year ending in March, Girish Paranjpe and Suresh Vaswani told Reuters in an interview on Friday. “Relative to how it was in the first quarter of this (calendar) year, there was a feeling that things are almost frozen, I think things are beginning to come back to normal,” Paranjpe said.
    • Vendors find India’s BPO market attractive
      India, already known as the world’s back office, is now emerging as a big market for such services as its economy matures and the global economy slows down.The opportunities of business expansion in the domestic market have even made US-listed Indian firms such as Genpact Ltd and EXL Service Holdings Inc.—that presently cater mainly to the US market—devise aggressive strategies to enter and expand the presence in the country.
    • Bangalore in Leader position: NASSCOM
      In the list of 50 leading cities on the IT-BPO growth path, Bangalore has been classified in a “leader position” by Nasscom-A T Kearney study released on Monday. Following Bangalore is Mangalore as a “challenger location” and Hubli-Dharwad as “aspirant locations” according to the report.
    • KPO firm Integreon plans three more buys for $100 million
      Knowledge process outsourcing (KPO) firm Integreon Managed Solutions, which recently acquired litigation support and electronic data discovery provider Datum Legal, plans to buy one more company by the end of this year and two others in the next 2-3 years spending a total of $100 million.“The range is going to be bigger as we are growing. We will acquire another company by the end of this year,” Vice President (Knowledge Business Administration and Professional Document Services) Lokendra Tomar said. Integreon is evaluating possible buys in India, Europe and the US.
    • Tier-II centres may make IT tough for 7 samurai
      India’s seven dominant IT cities, where 90% of the 2-million talent pool reside and crack code, may see their share in the pie slipping to 60-75% if future job creation spreads to tier II and tier-III cities.Moving to these non-IT centres would translate into over 30% cost advantage for companies. But, for growth to shift, these centres have to come to steam on parameters that drive location decision such as talent pool, infrastructure, social and living environment, business climate, government support and operating costs.
    • US slowdown may dent IT exports by 3-4%: NASSCOM
      Recessionary trends in the US, which is Indian IT/ITeS industry’s principal market, may lead to a lowering in pace of growth of software exports revenue by 3-4% in 2008-09. According to NASSCOM estimates, the IT/ITeS industry will sustain growth rates in the region of 22-24% in 2008-09 against 29% last fiscal.
    • Cab operators to hike rentals of IT, BPO firms
      IT and BPO firms are preparing belt-tightening measures as cab operators in India’s technology capital, Bangalore, say a hike in rentals is imminent to compensate for higher prices of petrol and diesel.
    • Indian BPOs may lose Orange pie
      Business process outsourcing (BPO) companies like 24/7 Customer , Convergys and EXL Service may be impacted post Orange UK’s announcement of job cuts and reduction in the telecom major’s reliance on India based call centres.
    • Aegis eyes Philippine BPO
      Aegis BPO Services, an Essar Group business process outsourcing (BPO) company, is close to acquiring an 8,000-seater BPO firm in the Philippines. The exact size of the deal is not clear.When completed, the company would have acquired close to 10 firms in the last two-and-half years.
    • Meet the outsourcing billionaires
      World may love it or hate it, but India remains the undisputed leader of outsourcing. According to a recent survey by Forbes magazine, five of the seven billionaires whose primary source of wealth is outsourcing are Indians. The other two, also Asians, hail from Taiwan.
    • Talking Books | BPO at crossroads
      Not very long ago, India’s premium colleges were happy opening their doors to business process outsourcing (BPO) companies for campus recruitments. Companies like GE, American Express and British Airways could take their pick of the brightest of youngsters that these colleges had to offer. Now, many companies are not even invited to these seats of high learning, say authors V. Anandkumar and Subhasish Biswas in their book ”Business Process Outsourcing, Oh! BPO-Structure and Chaos, Fun and Agony”.
    • WNS Holdings set to bag Aviva’s BPO operations
      WNS Holdings appears to have emerged as the highest bidder for insurance giant Aviva’s BPO operations — Aviva Global Services (AGS) — with an offer of over $200 million. The deal covers acquisition of Aviva’s captive unit, outsourced operations parked with vendors and an assured business from the UK-based insurance firm for a five-year period, sources said.

Also see news archives




Latest Columns

Asian brokers remain confused on outsourcing benefits: BNP Survey

According to the survey conducted by BNP Paribas Security Services, outsourcing of services by Asian brokers have been increasing in popularity in spite of several pressures faced such as regulatory rules and cost-cutting moves. Even though Asian brokers are increasingly relying on outsourcing of their back-office functions, they still are not sure of the benefits […]

BPO industry in Australia poised for 20% growth in 2012: IBM-Sauce Report

The companies worldwide are striving hard to achieve growth in some form or the other. They are trying all the tricks in the trade to achieve that. Even in the times of growth or otherwise the companies are trying hard to keep their internal operating costs to the minimum and are looking to outsource their […]

Speak Your Mind

*