- October 2008
- BPOs keep their chin up
BPO companies in India are looking at the current global financial crisis as an opportunity to do more business rather than a threat to their existence. This is despite the fact that they get the majority of their business from developed economies in the US and Europe. Even though BPO companies admit that they’ll be hit to some extent in the short-term, the medium to long-term prospect looks bright.
- Wipro BPO to set up business shared services centre in Curitiba, Brazil
Wipro Technologies, the global IT services business of Wipro Limited announced that its Business Process Outsourcing division, Wipro BPO, is setting up a Shared Services centre for AmBev, the largest brewery company in Latin America with leading brands like Brahma, Becks, Stella and Antarctica.
- Aegis BPO to hire 1,000 every month
Aegis BPO Services, an Essar group company, will add about 1,000 people per month taking the total headcount to 35,000 by this fiscal-e nd, even as the outsourcing industry is going slow on its recruitment plans.The company, which announced the completion of the acquisition of US-based PeopleSupport Inc today, said even though the outsourcing industry is going through a rough patch, Aegis BPO is likely to report 35 per cent organic growth this financial year.
- UK trade union opposes job outsourcing to India
Citing turbulence in the country’s economy, British trade union GMB has opposed world’s leading French fries supplier McCain Foods’ proposal to outsource finance and administration-related jobs to India.
- ValueNotes named one of the Top Research and Data Services Firms in the 2008 Black Book of Outsourcing
ValueNotes, a leading provider of business intelligence and research, has been named as one of the “Top Research and Data Services Firms” by Brown-Wilson Group in their prestigious 2008 Black Book of Outsourcing
- BPOs and KPOs worst effected by slowdown
As the global financial crisis continues to cause a meltdown across countries and industries, the IT & ITeS sector in India is beginning to feel the heat. The smaller firms are the first to face the brunt of the slowdown and this has forced them cutting down on expenditures on employees.The business process outsourcing (BPO) and knowledge process outsourcing (KPO) sectors are the ones worst affected. A few of them have reduced their workforce and revised pay scales. An insider at Intelenet Global Services’ back-office operations at Mahape (Navi Mumbai) said that a number of measures aimed at cutting incentives and increasing employee workload have been introduced within a couple of processes.
- IT, BPO sector impacted by global slowdown: Scindia
The financial meltdown in the global markets has had an impact on the IT and BPO sector, Minister of State for Communication and IT Jyotiraditya Scindia said on Thursday.Quoting industry Nasscom, Scindia said in a written reply to the Rajya Sabha, “Most companies are working to increase their levels of utilisation of resources and look to redeploy personnel within the organisation where possible.”
- Offshoring R&D services to India on the upswing
Research and Development offshoring to India by international IT players, a $9.35 billion industry, is estimated to touch $21.4 billion by 2012.Mr Pari Natarajan, Chief Executive Officer, Zinnov Management Consulting, said that currently there are 594 R&D centres in India operating in SPD (software product development), embedded services and engineering services.Bangalore, Pune and NCR together account for the majority of the R&D set-ups, with about 494 centres operating in these three cities.
- Wall Street woes put India outsourcing on edge
Bangalore, the capital of Indian outsourcing , is perhaps the closest India comes to Wall Street. In some offices, you can get a US dial tone. Clocks tell you what time it is in New York. Cappuccinos — as well as Subway sandwiches and Carolina Herrera “212” perfume — are easy to come by.
- Homeward bound: BPOs take local call to boost business
In a bid to diversify their risk in the backdrop of a US slowdown and a fallout from the sub-prime crisis, which has affected the BFSI sector, Indian business process outsourcing units have begun training their sights on the domestic market. The deal sizes for the BPO segment have increased to $5-50 million from just a few hundred thousand a year ago.
- Small and mid-tier ITES in big trouble
The gloomy global economic outlook and reduced demand for technology services in the US and Europe is likely to result in an increased pace of consolidation among small and mid-tier IT services companies in India, analysts say.Export-oriented small and mid-tier IT companies were able to weather the storm of rapid appreciation in the rupee against the US dollar in 2007 and early 2008, but now they are faced with the stark reality of dwindling orders.
- Obama vows to curb outsourcing
itting politically ‘pretty’ with only a week to go for Presidential polls, the Democratic nominee Barack Obama has kept hammering away with his theme of creating jobs and curbing outsourcing and blamed the Republicans for the mess America finds itself in.
- BPO employee found murdered in Navi Mumbai
A 34-year-old BPO employee, Anandita Mishra was stabbed to death on Thursday, Oct 16 night in Mumbai. A human resource personnel at the Dhirubhai Ambani Knowledge City, Navi Mumbai, Anandita was stabbed to death at around 2015 hrs in front of Koparkhairane railway station. “Anandita was returning home from work when she was fatally attacked. The police have launched a hunt for the killers “, Navi Mumbai Police Commissioner Ram Rao Wagh said.
- A stronger BPO handshake
Outsourcing firms have shied away from the deal street this year. Probably fearing the tech meltdown, M&A deals in the sector have been the lowest in value terms in the first three quarters of the year compared to the last couple of years.
- India call centres hear US pain
With her flowing, hot-pink suit, jangly silver bangles and perky voice, Bhumika Chaturvedi, 24, doesn’t fit the stereotype of a thuggish, heard-it-all-before debt collector. But lately, she has had no problem making American debtors cry.For the past three years, Chaturvedi has been a top collection agent at her call centre, phoning hundreds of Americans every day and politely asking them to pay up. As the US financial crisis plunges Americans into debt, her business is one of the fastest growing sectors in Indian outsourcing. It is also one of the few sectors that is aggressively hiring.
- Modi to lead largest onshore domestic BPOSPICE Televentures Ltd, which is part of the $1.5 billion Spice Group, Spanco Telesystems and Solutions Limited, recently signed a memorandum of understanding to create India’s largest onshore domestic BPO. The JV will see the merger of three leading domestic BPOs in the onshore space, comprising Omnia BPO Services Ltd (a Spice Televentures subsidiary) and Bharat BPO (an existing JV of Omnia and Spanco Telesystems) and Spanco BPO Services.The new entity will provide voice- based backoffice and contact centre services to clients including customers across diverse segments in banking, financial services and insurance (BFSI), telecom, travel and eGovernance in the country.
“The joint venture reveals,” Dilip Modi, chairman, Omnia BPO Services Ltd and chairman of the new JV, ”will see an investment upwards of Rs 500 crore in growing its presence across India over the next two years.” From having 7,000 seats in 18 centres spread across 10 cities including NCR Delhi, Mumbai and Kolkata, it plans to take it to 15,000 seats by March 2010 with a focus on Tier 2 and Tier 3 cities going forward, says Modi.
- India continues to dominate BPO sector
CyberMedia Global Services and Tholons study potrays India as a dominant force in business process outsourcing (BPO) sector. Six of its cities feature among the top eight emerging global outsourcing cities.Bangalore, Chennai, Delhi (National Capital Region), Hyderabad, Mumbai and Pune are the six Indian cities among the eight global outsourcing cities, says a study by , a global investment advisory firm. Dublin (Ireland) and Makati City (The Philippines) are the two other cities. India’s representation in the top 50 Emerging Global Outsourcing cities has grown to four, from last year’s three, with the addition of Jaipur to the list at number 31.
- India’s domination of BPO sector continues, China catching up
India’s domination in the business process outsourcing (BPO) sector continues with six of its cities featuring among the top eight emerging global outsourcing cities.Bangalore, Chennai, Delhi (National Capital Region), Hyderabad, Mumbai and Pune are the six Indian cities among the eight global outsourcing cities, says a study by CyberMedia Global Services and Tholons, a global investment advisory firm. Dublin (Ireland) and Makati City (The Philippines) are the two other cities.
- Banks shifting back-office work out of Mumbai
High real estate costs are forcing many financial services firms to shift their back-office work out of Mumbai.For instance, ICICI Bank is building three 30-storey towers of 10 lakh square feet each near the Gujarat International Finance Tec-City in Ahmedabad. While the first tower is under construction, others will be developed in phases.
- BPOs step up hiring amid global gloom
Even as IT majors are hiring in fewer numbers this financial year on the back of a slowing global economy and trauma in the banking, finance and insurance services (BFSI) sector, Indian business process outsourcing (BPO) firms–captive and pure play–appear bullish. They are increasing their headcount in the country, attributing their optimism to business ramp-ups over the last couple of months and an increased acceptability of offshore work.
- For Orange, India BPO operations not a forbidden fruit
In an about-turn in its outsourcing strategy, the mobile services arm of France Telecom, Orange UK, is now consolidating its offshore work amongst two vendors, Convergys and IBM Daksh, taking it from other vendors such as EXL and 24/7 Customer.Interestingly, earlier in June this year, Orange UK had announced that it will reduce dependence on BPOs in India for its back-office work.
- TRAI disconnects over 10,000 telemarketers
The average user may be oblivious to the existence of the National -Do-Not-Call registry (NDNC), but TRAI has disconnected 10151 telep hones of the telemarketers on account of repeated violation of the Regulation on the subject.
- Outsourcing is here to stay and acquiring certification is crucial
Hero Mindmine Institute Ltd, a leading training and consulting organisation has recently parternered with BPO Certification Institute Inc, US, although outsourcing is on a downturn.
- Infosys, TCS see turnaround in six months
Despite the grim economic environment overseas, both Infosys Technologies and Tata Consultancy Services (TCS) have opted for strategies th at anticipate a recovery after about two quarters. While TCS will add nearly 12,500 employees of Citigroup Global Services, Infosys said it would hire about 25,000 people in FY09 and honour all the commitments made at campuses. While 11,000 employees have already joined Infosys this year, another 18,700 are expected to join before the fiscal end, officials said in interviews following its results announcement on Friday.
- IT, ITeS M&As touch a crest in Jul-Aug
July and August saw heightened merger and acquisition (M&A) activity in the IT and ITeS sector, in terms of deal size with over $1 billion worth of transactions compared to the first six months of 2008. There were around 19 deals in July and August with a total value of $1.07 billion.
- New contracts fail to cheer up Lehman staff
Employees of Lehman’s back-office operations in Mumbai are disgruntled with their new contracts which Nomura has drawn up. Unlike their counterparts in other Asian countries, who are walking away with hefty bonus packages, the Mumbai BPO staff will receive the same bonus as last year. This is no longer a perk, just a retention bonus and could be cumbersome for many.
- We’re the best to serve financial service market: TCS
India’s largest IT firm Tata Consultancy Services (TCS) has taken a few bets in its time. Some — like going for Latin America and global delivery centres when its peers were still focussed on India delivery—have paid off, some others —such as betting big on e-business in the dotcom heydays —have failed.This week, the IT bellwether has taken another big bet—the $505-million acquisition of Citigroup’s captive unit in India in the midst of a global financial turmoil. Critics feel the company has paid more that it should have in a downturn but TCS executive director and COO N Chandrasekaran defends the price and the purchase.
- New York-based REcap Partners-LLC to acquire HOV Services
New York-based REcap Partners-LLC is all set to buy out Chennai-based business process outsourcing firm HOV Services along with its two units operational in Beijing and Hong Kong for around Rs 950 crore ($202 million).
- Intelenet eyes legal process outsourcing
Blackstone-backed BPO firm Intelenet is looking at legal process outsourcing (LPO), education and HR outsourcing as new areas to steer growth in the domestic market. Among the largest BPO firms catering to the domestic market, it currently caters to banking and financial services, telecom and travel verticals.
- Tatas plan to hire 5,000 for rural BPO
As a pilot project, the company has taken an initiative of engaging rural masses by setting up one BPO in Mithapur, Gujarat in the vicinity of Tata Chemicals’ manufacturing unit
- TCS takes a lead, but deal raises a few concerns
The acquisition of Citigroup’s BPO arm marks the entry of the IT giant TCS into the outsourcing space for core banking operations. This would be a unique deal in the Indian IT space as it also provides TCS an assured process outsourcing business of $ 2.5 billion from Citigroup, spanning over nine and half years.The deal would not only help TCS to expand its deliverables in the banking domain but also make it the top IT services provider to Citigroup. Currently, TCS garners over $150 million in revenue by providing services to Citigroup. This is expected to nearly treble once the deal is completed. However, there are few concerns over the deal that demand attention.
- TCS Acquires Citigroup’s Captive BPO For $505 Million
Tata Consultancy Services (TCS) has announced its acquisition of Citigroup’s captive BPO arm Citigroup Global Services (CGSL) for $505 million. This deal marks the largest buyout of a foreign captive BPO in India. The largest captive BPO acquisition till date was WNS’s take over of Aviva BPO for $230 million.
- Nomura Announces Acquisition Of Lehman’s Captive In Mumbai
Nomura Holdings, Japan’s largest broker, has officially announced its take over of Lehman’s backoffice in Mumbai which would see it absorb more than 3,000 employees of the erstwhile Wall Street giant.
- eClerx accepts $0.56 mn to settle dues with bankrupt US client Knowledge process outsourcing firm eClerx Services has accepted a cure amount of $0.56 million (about Rs 2.6 crore) of the $1 million as the full and final payment by its US client that has filed for bankruptcy.
- Crash of financial powerhouses puts question mark over captive BPOs
After the fall of Wall Street’s giants, some of their captive units are increasingly looking like no’s children. Take the case of Lehman Brothers, whose North American operations were snapped up by Barclays and Asia and European operations were taken over by Nomura. The sale of the captive operations has taken much longer, though. And Nomura’s announcement to acquire the captive, coming nearly two weeks after its first announcement, has created a strange situation where it may have to service an eventual competitor.
- India dominates outsourcing in 2008
India continues to be a major global IT and BPO outsourcing destination amid a determined bid by the neighbouring China to give it a to ugh competition in the field, according to a new study.Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune are the six Indian cities in the list of top eight outsourcing cities of the world, according to a study by Global Services, the media platform for global IT outsourcing and BPO industry and Tholons, a global investment advisory firm.
- PE Firms Cringe At Firstsource Price Tag
Private equity firms are starting to team up to bid for a $400 million stake in India’s Firstsource Solutions, sources familiar with the matter said, amid concerns that the price of the deal is too high.Apax Capital Partners, Blackstone Group and Providence Equity Partners are among the firms looking to bid for the stake that could total 88 percent in the back-office firm, the banking sources say, though it is still not clear which firms will join together.
- Convergys plans to hire 2,500 new agents
Convergys Corporation, a global leader in relationship management, announced on Monday, Oct 6 that it plans to significantly increase the number of contact center agents it employs in India based on client needs for an additional 2,500 people by the end of the year.”Convergys agents continue to provide our clients and their customers with an outstanding customer experience, excellent performance, and unmatched quality that consistently meets and exceeds their expectations,” said Sukant Srivastava, Managing Director and Country Manager for Convergys’ Customer Management business in India.
- Xchanging to buy 75pc stake in Cambridge
Xchanging Plc, a UK-based back office services provider has agreed to acquire 75 per cent stake in IT services firm Cambridge Solutions for about 83 million pounds (Rs 686.84 crore). Xchanging would pay Rs 371.2 crore in cash and issue 1.52 crore shares of the firm to Cambridge.
- Indian BPOs future bright: CEOs
The future of the Indian business process outsourcing (BPO) industry remains bright despite the recent economic meltdown in key marke ts such as the US and Europe, feel the industry honchos.However, in order to successfully survive the global meltdown, the BPO industry will need to reinvent itself by taking steps such as centralisation of operations, develop more unique models, tap the growing domestic market further and reach out to the remote and rural areas for setting up business delivery centres.
- Indian metros among major IT outsourcers: Study
The metropolis cities of India continues to be a major global IT and BPO outsourcing destination amid a determined bid by the neighbouring China to give it a to rigid competition in the field, according to a new study. Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune are the six Indian cities in the list of top eight outsourcing cities of the world, according to a study by Global Services, the media platform for global IT outsourcing and BPO industry and Tholons, a global investment advisory firm.
- Outsourcing: Who is touching your data?
As the economy sinks and budgets are squeezed, outsourcing looks more and more like a thrifty necessity. But when it comes to the data security of those far-flung offices, businesses may find they get what they pay for.
- Nomura To Acquire Lehman’s India BPO; To Retain Top I-Banking Talent
Nomura has agreed to acquire Lehman’s India BPO and its 2,000 employees. Plus, bonuses to retain top talent.Finally there is some hope for the 2,000 odd employees of Lehman Brothers’ back office in India. In a significant development, Japanese securities house Nomura Holdings Inc has reached a basic agreement to purchase Indian units of Lehman Brother, Japan’s Nikkei business daily reported on Friday.
- BPO hiring in line of fire
The BPO-KPO sector in India is facing the heat of the US slowdown, particularly following the recent events in the financial markets. Prospects of a host of small- and mid-sized firms have taken a further hit since a major chunk of their business comes from banking and financial services firms in the US.“The slowdown is going to impact the BPO firms in India. This will eventually result in overall slowdown in the BPO industry. But now a large pool of professionals will be able to provide quality services to the Indian BPO-KPO industry at much lower prices,” says IDBI Capital Market Services research head Shahina Mukadam.
- BPO companies have taken a hit as US crisis deepens
The BPO-KPO sector in India is facing the heat of the US slowdown , particularly following recent events in the financial markets. Businesses of a host of small- and mid-sized firms have taken a further hit in the industry since a major chunk of business comes from banking and financial services firms in the US.“The slowdown is going to impact the BPO firms in India. This will eventually result in overall slowdown of the BPO industry . But now a large pool of professionals will be able to provide quality services to the Indian BPOKPO industry at much lower prices,” says IDBI Capital Market Services research head Shahina Mukadam.
- Wachovia asset sale likely to hit Genpact
India’s largest BPO provider, Genpact, is likely to take a hit from the sale of Wachovia’s assets to Citigroup.Genpact had a strong relationship with Wachovia and was chosen by the US bank to set up a dedicated centre that would function as its back-office.
- BPOs keep their chin up
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