September 2009 News

  • September 2009
    • 6 reasons why 25% BPOs will perish
      At least one-quarter of the top business process outsourcing (BPO) firms worldwide will not exist as separate entities by 2012, according to IT market research firm Gartner.Predicting a market exit for a number of players, Gartner said acquisitions and the ascent of new vendors will rearrange the BPO provider landscape in the coming years. Enterprises should thus look for warning signs when evaluating BPO vendors to mitigate risk, warned Gartner.
    • BPO staff may soon work from home too
      A year after the department of telecommunications conditionally relaxed rules on IT-BPO employees working from home, Raman Roy, chairman & managing director of Quatrro BPO Solutions, has started pilot projects in Mumbai and Delhi to explore the possibility of scaling up the model.Quattro is the first BPO to have secured permission for this model from DoT. “This is a provisional permission. Once the company is able to meet all our security concerns, we will grant them a license,” confirmed a senior DoT official on condition of anonymity.
    • UK based firm launches 500 seater BPO in Pune SEZ
      EasiOption, a firm which, is the wholly owned subsidiary of UK based Kent Reliance Building Society launched a 500 seater facility in Special Economic Zone, SP Infocity to provide BPO and Call centre services and ‘be its clients’ best option.’The services would be provided in Sep 2009.“I am pleased to confirm that EasiOption will begin its operations this September and am happy with the welcoming and conducive business environment that Pune has to offer,” said Yogesh Agarwal, the Managing Director of EasiOption and Easiprocess.
    • India Outsourcing: Pay Is Down, Competition Is Up
      For Americans looking at India’s $58 billion IT and outsourcing industry with both envy and anger, here’s a bit of news that might prompt a little schadenfreude: During a year spent languishing in the doldrums because of the global recession, India’s largest outsourcing providers handed out the stingiest raises in more than a decade. And for Indian engineers with two to five years of experience, the past 12 months actually saw them lose nearly 7% of their income. The national average raise, according to a survey by IDC, the market intelligence firm, was about 1.4%, with most of the salary gains going to those with the most experience.
    • NEA picks up stake in RT Outsourcing for Rs 65 cr
      US-based venture capital firm New Enterprise Associates (NEA) has picked up an undisclosed stake in Delhi-based RT Outsourcing for Rs 65 crore.RT Outsourcing offers repair and refurbishment services, technical support and call centre operations to third-party companies.
    • Offshore Outsourcing: Introducing a New, Hybrid Pricing Model
      Offshore outsourcing providers are coming up with new pricing models in response to more demanding customers. Mid-tier provider MindTree is publicizing its hybrid pricing model, which it says combines the best of both time-and-materials and fixed-price models. Is this IT service pricing innovation or slick marketing?
    • As Prices for Outsourced Desktop Support Drop, Some IT Shops Get Shafted
      Some cash-strapped IT departments are inking deals with vendors for desktop support services at rock-bottom prices. But they may be signing up for all-time low levels of service that may defeat the purpose of outsourcing in the first place and cost them more money in the long run.
    • StanChart to open KPO in Bangalore
      Foreign lender Standard Chartered Bank plans to open an office of its knowledge process outsourcing network — Scope International– in Bangalore by October.StanChart’s Chief Operating Officer, India and South Asia Sreeram Iyer told the same to reporters here.
    • Top 10 BPOs in India
      Fiscal year 2008-09 has not been the best of time for companies across the globe. It has been no different for IT and BPO industry in the country. With unemployment spiralling up, the rhetoric against outsourcing got shirker in both Europe and USA, hitting Indian IT companies already reeling under recession and turmoil in their core BFSI market.
    • WNS takeover talks run into valuation hurdle
      The high-profile race to buy India’s second-largest business process outsourcing (BPO) company, WNS Holdings, ended abruptly today after the company informed the US Securities and Exchange Commission (SEC) that it had decided to stop discussions with interested parties regarding a possible change of control.The New York Stock Exchange-listed WNS, which has been in talks with several high-profile buyers for six months, did not provide a reason. Sources familiar with the developments said the talks with potential buyers hit a valuation hurdle.
    • Vodafone BPO jobs coming to India
      Three months after Vodafone Australia Ltd and Hutchison 3G Australia formed a 50:50 joint venture, Vodafone Hutchison announced offshoring up to 450 call centre jobs from Melbourne to India and Tasmania.Confimring the company’s offshoring plans, a company spokesperson said about 100 jobs would go to Kingston, Tasmania and unspecified number of positions would be transferred to Mumbai, India.
    • The Malaysian outsourcing Industry – scaling new heights e
      Revenues from the Malaysian IT/ITeS outsourcing industry are expected to touch $1.1 billion in 2009, according to a joint publication by Outsourcing Malaysia and ValueNotes. The industry is expected to grow at a CAGR of 15% to reach $1.9 billion by 2013.
    • Blackstone, Genpact bid for WNS stake
      The world’s biggest buyout firm Blackstone and back-office company Genpact have bid for a controlling stake held by Warburg Pincus in WNS Global Services, two people familiar with the development said. Warburg Pincus is likely to decide on the stake sale next week, they said preferring to be anonymous.A WNS spokesperson declined to comment on the two specific bids. WNS, on August 7, said: “We have received expressions of interest from various interested parties.” The bids may be around $300 million for a 50.1% stake, against Warburg’s expectation of at least $400 million, they said.
    • Global BPO vendors poach staff from local companies
      Global outsourcing vendors such as Accenture and Capgemini are increasingly poaching employees from Indian rivals as they tap into professionals with expertise in offshoring to compete more effectively against companies like TCS, Wipro and Infosys.As offshore outsourcing goes mainstream, multinationals are hiring Indians to head their sales teams in key markets in Europe and the US, a shift from the practice of employing locals to win contracts.
    • TCS BPO sees 45-50% annual growth through new deals
      TCS BPO, accounting for 11 per cent of the revenue of India’s largest information technology services company, Tata Consultancy Services, is eyeing deals in the healthcare, banking, financial services and insurance, retail, telecom and media & entertainment sectors in the range of $10-50 million (around Rs 49-245 crore).Abid Ali Neemuchwala, its vice-president and global head of BPO Services, said these deals, along with its end-to-end BPO services offering, will help it attain a compounded annual growth rate of 45-50 per cent, to touch its target of $3 billion in the next five years. The BPO unit had a revenue of $415 million (around Rs 2,033 crore or Rs 20.33 billion) last year.
    • Rural BPOs: Karnataka’s latest in IT revolution
      For 23-year-old graduate Jayalakshmi, getting a job as an executive at a business process outsourcing (BPO) firm was a dream. But getting it at her village here, near the historic Srirangapatna town in Mandya district, was the icing on the cake.”Who could have imagined working at a BPO centre, that too in my village? I was planning to shift to Bangalore to get a BPO job. But then to everyone’s surprise, the BPO came to my village. I applied and was selected,” a delighted Jayalakshmi said.
    • Tech Mahindra wins $400mn telecom IT deal
      IT solution provider Tech Mahindra has won a major portion of telecom IT outsourcing deal worth $400 million from Etisalat DB Telecom India.Etisalat DB Telecom, which plans to start mobile services in 15 Indian telecoms zones in 2009, said the outsourcing deal would include implementation of its end-to-end IT applications & infrastructure, system integration and managed services.
    • Outsourcing missteps interrupt Boeing’s dreamIn Boeing’s cavernous plant here, temporary scaffolding rises alongside several of the first 787 Dreamliners ever built. Workers climb steel steps to slip everything from wiring to hydraulic systems into some of the planes.In other bays, crews operate giant tools that help shape parts of wings being built for older-model 747s, 767s and 777s. Staccato blasts ring out from air-powered rivet guns. Cranes hoist finished wings and fuselage sections onto the assembly floor.
    • Morgan Stanley may sell Indian back-office ops
      Morgan Stanley, one of the US banks bailed out by the US government, is looking at exiting its back-office operations in India. The bank is exploring all options, including a part or full sale of its back-office unit that does IT development as well as finance and accounting-related work for the parent, said three people familiar with the development.Part of the work is also of knowledge process outsourcing (KPO) and involves equity research, complex financial modelling and portfolio analysis. An email sent to Morgan Stanley on Wednesday did not receive any response till the time of writing this article.
    • Good news! Outsourcing is here to stay
      The five-year BP outsourcing deal for $1.5 billion (Rs 7,500 crore) is the best piece of news that the outsourcing industry has had since the global recession began. It tells the country that outsourcing, and its companion off-shoring, are here to stay.The hostility towards the export of jobs, a result of high unemployment in the developed economies, is still there but so is the reality on the flip side businesss need to outsource so that it can cut costs and raise efficiency levels.
    • Suitors jilt WNS after scrip heat
      Several buyout funds and some strategic investors have turned their back on WNS Global Services, putting the stake sale plans of global private equity firm Warburg Pincus in India’s second-largest pureplay BPO firm in limbo.Warburg wants to sell its 50.12% controlling stake in the NYSE-listed company. Technology buyout fund Silver Lake, PE companies Apax Partners and Bain Capital are believed to have lost interest after the initial due diligence, which kicked off on August 10.
    • Karnataka leads in IT exports recording 23 pc growth
      Recording a 23 per cent annual growth and procuring Rs 74,929 crore worth of IT and ITES exports for the year ending Mar 2009, Karnataka tops the country as a destination for software exports.Despite smaller base, however,Tamil Nadu, Andhra Pradesh and Maharashtra recorded higher growth rates than Karnataka, which provides 34 per cent to the national exports.
    • BT’s plan to take back Indian jobs hits roadblock
      British Telecom’s (BT) plan to take over 2,000 Indian call center jobs to UK has hit a roadblock.According to a report published in The Telegraph, the telecom giant may not get the cooperation of the workers when it comes to weekend and late night shifts.
    • IT majors chase $6.5 bn Belgian outsourcing deals
      Belgian Grand Prix is not the only race where Indian hopes are riding high. A worsening economic crisis is forcing companies such as AXA, Dexia Bank, Belgacom, drugmaker UCB and car insurer Allianz in Belgium explore IT offshoring and back-office projects, making it almost $6.5-billion opportunity for Indian outsourcing vendors including TCS, Infosys and Wipro apart from MNC rivals.According to Quantum Step, an outsourcing advisory firm, customers in Belgium will spend around $1.8 billion on infrastructure management outsourcing, almost $2.6 billion on application development and maintenance and nearly $2 billion on BPO this year.
    • BPO companies free of labour laws for 2 years
      With IT firms buffeted by today’s turbulent times, the government has reached out a helping hand. Reciprocating their needs, it has exempted IT/ITES and software establishments from the provisions of Industrial Employment (Standing Orders) Act 1946 (Central Act 20 of 1946).These laws are strict on classifying workers, their working hours and shifts, the wages payable, besides other archaic rules on leave and attendance.
    • Belgium’s $6.5 bn offshoring call
      Belgian Grand Prix is not the only race where Indian hopes are riding high. A worsening economic crisis is forcing companies such as AXA, Dexia Bank, Belgacom, drugmaker UCB and car insurer Allianz in Belgium explore offshoring of IT and back-office projects, making it almost $6.5-billion opportunity for outsourcing vendors including TCS, Infosys and Wipro, apart from MNC rivals.
    • Genpact, Intelenet in line for Unitech Wireless’ BPO job
      Unitech Wireless, where Telenor is the majority partner, is close to finalising business process outsourcing (BPO) contracts with two vendors — Genpact and Intelenet Global Services. Unitech Wireless is looking to launch mobile services across the country.Sources familiar with the development said the company is expected to shortly sign contracts for the North with Genpact and with Intelenet for the South. Unitech is also in dialogue with the Essar group-promoted Aegis BPO for the East, according to two people with knowledge of the deal.

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