July 2009 News

  • July 2009
    • Over 100 British Council jobs to come to India
      More than 100 jobs at the British Council in the UK are to be outsourced to India, as part of a massive cost-cutting drive to save taxpayers’ money.Final decisions about which jobs will go to India will be taken in the next few weeks but they are expected to include 58 finance posts, up to 40 IT posts and 15 posts for a new centre of excellence.

      About half the jobs to be cut will be in education and teaching. Some of these areas will have to be contracted out to voluntary groups or local authorities. More than 100 jobs at the British Council in the UK are to be outsourced to India, as part of a massive cost-cutting drive to save taxpayers’ money.

    • UK’s civil service to outsource jobs to India
      More than 100 finance and IT jobs at the British Council are to be outsourced to India as part of a cost-cutting drive to save the taxpayer money, according to a report in ‘The Times’.The report said that 500 of the council’s 1,300 British workers would have to go in the next 18 months to save 45 million pounds ($74.44 million) with more than a fifth of the posts being filled in India. The Times did not cite a source for its story.
    • Companies bet big on managed services business model
      As global recessionary pressures increase, enterprises are looking at ways to capitalise their existing IT infrastructure with many of them adopting the managed services business model. Telecom IT companies like Subex, a products company, and Netmagic Solutions, an IT services provider, which count on customers like AT&T, BT and Vodafone, have adopted this model.
    • TCS, Infy, Wipro among top 10 global service providers
      Even in a recession-hit market where clients are cutting outsourcing budgets, Indian firms such as TCS, Infy, Wipro, HCL and Tata Communications have won large outsourcing deals this year placing them among the top 10 global service providers, on contract value terms.Even though the total contract value of awarded outsourcing deals fell by 22% to $40.2 billion in the first six months of this year, Indian tech firms continued to compete neck and neck with the global biggies such as IBM, Accenture, HP/EDS, CSC, shows data from TPI. TPI is the largest sourcing data and advisory firm and measures commercial outsourcing contracts valued at $25 million or more.
    • Indian outsourcers vie for $1 bn BP deal
      BP, which has outsourced most of its application development and infrastructure management works, to about 30 firms including IBM, Accenture, Mahindra Satyam and Infosys, wants to bring down the number of vendors
    • UK unions protest gas and power major’s outsourcing move
      Three of the largest unions in Britain — GMB, Unite and Unison — have spoken against a proposal of National Grid, the gas and power supplier, to outsource some of its non-core activities like payroll processing, personnel functions, accounts, invoicing and procurement to India.The unions are planning a major protest in Birmingham on July 27, at National Grid’s annual general meeting. National Grid is a leading supplier of gas and electricity in Britain and the northeast region of the US.


    • LPOs may benefit from recession
      Mumbai-based knowledge process outsourcing (KPO) firm Integreon provides a range of outsourced knowledge, legal and administrative support services, both onshore and offshore, to global investment banks and private equity and law firms.Earlier this year, Integreon acquired the e-Discovery services unit of US-based ONSITE3, which specializes in electronic evidence solutions for law firms and corporations. The company which clocked revenues of $35 million in FY 08 (Jan – Dec’ 08), has set a target of $85 million for the FY `09.
    • India becomes R&D hot spot as high-tech firms cut costs
      At Microsoft’s research center in a leafy lane in India’s tech capital, a new generation of researchers are being groomed half a world away from the software giant’s sprawling headquarters in Seattle.Complete with beanbags and coffee served in steel tumblers, the center is helping change the perception that India is no place for top-end research and development.
    • TCS says aims $3 bn back office revenue in 5 yrs
      Tata Consultancy Services, India’s top software services firm by sales, on Saturday said it was aiming to grow its back office services revenue to $3 billion in five years.The company’s revenue from the segment, also known as business process outsourcing, was $615 million in the last fiscal year that ended March 31. “We have an ambitious goal … the market opportunity is clearly there,” N Chandrasekaran, chief operating officer, told reporters. Back office services contributed about 11 percent to TCS’s total revenue in the June quarter.
    • Pope’s call gives tech cos the chills
      The Holy Father’s gentle nudge to his flock to watch out for unholy ghosts lurking in the free market is putting the fear of God in India’s $50-billion outsourcing industry.Pope Benedict XVI’s Encyclical released last week raised pointed questions on the adverse impact of outsourcing, although it steered clear of addressing the issue in region or religion-specific terms.
    • BT to take 2000 Indian jobs back to UK
      When the British Telecom (BT) chief executive Ian Livingston was asked about the company’s plan on closing call centres in India; he revealed that about 2,000 of the Indian jobs will be reverted back to Britain.The customer service workforce of 11,000 employees that will be affected by this step of the telecom giant. BT clarified that this decision had nothing to do with the quality of services proved by the Indian employees.
    • Tata Communications to manage MTS call centres
      Tata Communications on Tuesday said it has bagged a contract from telecom operator Sistema Shyam TeleServices for deploying call center services.Sistema Shyam TeleServices, a joint venture of Russia’s Sistema Group and Shyam Group, is undertaking an aggressive roll-out of its telecom services under the brand ‘MTS’ across the country.
    • Recession proves good for Indian outsourcing firms
      In a year when outsourcing of application development and maintenance projects has slowed down, top customers such as Bank of America, JPMorgan and Citibank continue to send more back office projects to India, as they seek to lower their cost of operations by up to 40%.According to Nasscom, India’s back office outsourcing industry will grow at 18.4% this year to reach $14.8 billion. Outsourcing of IT services will clock a lower growth at around 13.5% this year, and could even decline to single digit growth if the situation does not improve.
    • Intelenet bags $300-mn deal from US healthcare company
      Nearly two years after private equity firm Blackstone acquired BPO, Intelenet Global Services, the back-office processor is starting to see some big outsourcing contracts from the PE player’s portfolio companies.The BPO firm has won a multi-million dollar contract from a healthcare provider in the US, which is a Blackstone investee company. The contract is the second-largest for Intelenet after its number one customer Barclays, according to sources close to the development.
    • Local BPOs to ring in $6 bn revenues by 2012, says E&Y
      The domestic business process outsourcing (BPO) market will reach $6 billion in size by FY2012, growing at a compounded annual rate (CAGR) of 38%, from the present $1.6 billion.BPO services, which currently account for over 20% of the Indian IT industry (including hardware), was the fastest growing segment across software and services in India till FY2008, a study by consulting firm Ernst & Young showed.

      Domestic BPOs outpaced the overall market by growing at a CAGR of 50% over the last five years, though on a smaller base, the study said.

    • Aegis takes over South African outsourcer
      Aegis Ltd, a Gurgaon-based business process outsourcing (BPO) provider and part of the Essar group, has announced the 100 percent acquisition of South African contact centre outsourcer CCN group.The acquisition, announced Thursday, is expected to boost South Africa’s economy through a 500 million rand ($60 million) injection over three years and create 5,000 jobs.
    • MphasiS partners UK firm for automation technology
      IT services firm MphasiS on Wednesday said it has partnered with UK-based software vendor Singularity for using the latter’s technology for automation of business processes for its clients.Under the agreement, MphasiS will use Singularity’s business process management (BPM) technology to automate processes for clients across sectors like financial services, manufacturing, healthcare, communications, transportation, consumer and retail and energy, MphasiS said in a statement.
    • Aegis close to acquiring South Africa’s CCN for Rs 90 cr
      Aegis, the BPO arm of the Essar Group, is close to acquiring South Africa-based firm Call Centre Nucleus (CCN) for about Rs 90 crore (ZAR 150 million).This is in line with the Group’s intention to expand its business in the African continent.

      When contacted, Aegis spokesperson said, “We keep looking at growth opportunities. However, it is not our policy to comment on any specific issue.”

    • EXL acquires Schneider Logistics’ BPO unit in Czech Republic
      BPO firm ExlService Holdings on Wednesday announced acquiring the BPO unit of US-based Schneider Logistics in Czech Republic as a part of a multi-year outsourcing agreement with the logistics firm.”As part of the transaction, EXL has acquired the operations of Schneider Logistics, SRO in Olomouc, Czech Republic with effect from July 3, 2009,” EXL said in a statement. The deal size, however, was not disclosed.
    • Infy scouting for BPO firm in Canada
      Infosys BPO Ltd, the business process outsourcing operation of Infosys Technologies, is looking at raising its headcount in the Americas through inorganic growth. The company is understood to be scouting for a strategic acquisition in the $40-60 million range either in Canada or the US, according to industry sources.”Infosys is looking at acquiring a small or mid-sized company, specialised in providing mortgage or insurance BPO services to grow faster in Canada.
    • EXL set to buy Schneider’s back-office unit in Czech
      Nasdaq-listed BPO firm ExlService Holdings (EXL) is acquiring the back-office unit of US-based logistics firm Schneider National in Czech Republic. The deal size is learnt to be less than $40 million. When contacted , EXL chief executive Rohit Kapoor declined to comment.The back-office unit in Czech Republic , which employs about 200 people, is managed by Schneider Logistics, the transportation and logistics services arm of the $3.7-billion Schneider National. The unit provides finance and accounting services to logistics firms in Europe in multiple languages such as English, German , French, Italian and Spanish.
    • Outsourcing: The Demise of the Offshore Captive Center
      Citi, AXA, AOL and others have shed their wholly-owned Indian IT services subsidiaries. Analysts say sales of offshore captive centers may be more than just a sign of the recessionary times: The concept of owning an offshore services unit may have outlived its value for most companies.
    • US cos ask Indian vendors to deliver projects locally
      Top outsourcing customers such as Bank of America and several local governments in the US are asking vendors such as TCS, Infosys and Wipro to deliver more projects locally. They are also rescinding job offers to foreign workers in an attempt to address anti-offshoring sentiments and cope with legislative requirements of the Troubled Assets Relief Program (TARP).

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