- January 2010
- Outsourcing’s back to India, China
Outsourcing has roared back to life in the last six months with some of it moving to countries like India, and from India to other places like China, the Philippines, Costa Rica and even Romania, according to a new study.”After fizzling out over the past couple years as companies simply slashed jobs rather than move them, outsourcing is back in vogue,” Forbes.com reported Monday citing a new PricewaterhouseCoopers study.
- IT, ITeS cos can now claim service tax refund
The $50-billion information technology services and BPO outfits, including Infosys, Wipro, TCS, WNS, Genpact, will now be able to get their service tax refunds, running into a few thousands of crores, expeditiously, as the government has announced a new simplified procedure to resolve the long-pending issue that has caused much hardship to the industry.The Central Board of Excise and Customs, the apex indirect taxes , on Tuesday issued a circular directing its field officials to issue pending service tax refunds within 30 days, and also relaxed certain norms for issue of such refunds.
- India’s long-reigning voice BPO losing out on accent
“Hey, this is Andrew calling. Do you have a minute? Can I talk you through the new features of your card?” The voice of a Bangalore call centre employee, thinly disguised as American by rolling the Rs, addressing a customer in Iowa, may become a thing of the past. The traditional voice calls that tried to sweettalk Americans into buying everything from credit cards to computers and which catapulted India to fame as the world’s backoffice, is fading out.
- Aegis close to acquiring prime land in Kolkata
Aegis, the BPO arm of the Essar group, is close to acquiring 10 acres of prime land from the Buddhadeb government to set up an integrated campus in Kolkata for an undisclosed sum. Aegis is looking to double capacity at its present 3,000-strong team of ITeS professionals in the city’s Salt Lake Electronics Complex (Saltlec).
- TCS, Infy, Wipro losing contracts to emerging rivals
Emerging nearshore rivals, including Ness Technologies of Israel, CPM Braxis of Brazil and Mexico-headquartered Softtek are increasingly becoming attractive for top outsourcing customers such as GE, Citibank and several others seeking to work with local, specialised vendors instead of sending all projects to offshore locations like India.At a time when India’s top tech firms Tata Consultancy Services (TCS), Infosys and Wipro are redefining their positioning as global services providers by growing their presence in the emerging markets of Latin America, Eastern Europe and Asia, they face stiff competition from these newer rivals.
- Andhra Pradesh BPOs may suffer revenue losses on Telangana unrest
The unrest caused by the Telangana issue may result in huge revenue losses for Andhra Pradesh’s Business Process Outsourcing (BPO) firms as their customers are turning to other cities.The situation in the state may force some foreign companies to look for alternative cities in India. In this scenario Medical Transcription BPO is going through a very bad time, Indian Association of Medical Records (IAMR), a that represents the MT BPO industry, said.
- Growth & profitability slow consolidation in BPO sector
Business process outsourcing (BPO), which did not exist as an industry a little over decade ago, is a multi-billion dollar industry today with exports of over $12 billion. The top BPO rankings, which were dominated by captive units of multinational firms in India, have now been replaced by third-party vendors.
- Indian IT cos set sights on clients’ captive operations in US, Europe
For India’s top tech firms seeking to acquire an existing back office business of a large customer, the next big opportunity is emerging in the markets of the US and Europe as customers seek to sell captive operations in their home countries.Having divested their captive operations in emerging countries such as India, some companies are now in talks with companies such as Genpact, EXL Service Holdings and Quatrro to sell their assets. Such transactions are lucrative because they can bring niche expertise at deals worth up to $200 million.
- BSNL may have to shelve $1-bn IT outsourcing deal
The decision of state-owned BSNL’s board on Wednesday to put its tender for 93 million GSM lines on hold will result in the telco’s $1-billion IT outsourcing contract also being put on hold, an executive with the PSU told ET. This is because, the $1-billion IT contract is linked to the 93 million GSM lines taking off, this executive added.The delay will impact IT firm HCL Infosystems, which will be supported by HP and Convergys for the contract and is assured of 50% of BSNL’s Rs 2,000-crore IT deal, as it was the lowest bidder for all the four zones. The project was split into four zones to allow companies to bid separately for each zone.
- Outsourcing’s back to India, China
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