March 2010 News

  • March 2010
    • Domestic BPOs will soon be a billion dollar industry
      The BPO industry in India will grow to $1.8 billion by 2013 says a study by Gartner. The market grew by 7.3% in 2009. Gartner estimates the Indian domestic BPO market will grow into a $1.2 billion market by 2011 and grow to $1.8 billion by 2013.“In the short term, market trends such as changing demographics and affluence levels, consumption of value-based services, increasing focus on service quality and the continued momentum of mergers and acquisitions (M&As) bear watching, as their impact is certain to influence shifts in buyer needs and behavior,” said T.J. Singh, research director at Gartner.
    • Two senior management executives exit WNS
      Senior management in WNS is opting out of the company. According to a release, Ramesh Shah and Anup Gupta have tendered their resignations to the company. Shah was the chairman of the board, and he had put in his papers in December 2009. He left the company on March 29.Gupta was the Group Chief Operating Officer, and he left the company on March 26. Shah resigned as director of WNS.
    • HUL exits BPO arm Capgemini
      The fast moving consumer goods major Hindustan Unilever on Monday said it exited from BPO firm Capgemini Business Services India by selling its remaining 49 per cent stake to IT consultancy firm Cap Gemini SA for an undisclosed sum”Hindustan Unilever has now divested its 49 per cent stake in Capgemini Business in favour of Cap Gemini SA,” HUL said in a filing to the Bombay Stock Exchange .
    • Indian BPO market to grow 25% in 2010
      The business process outsourcing market in India is estimated to grow 19 per cent through 2013, according to IT research and advisory firm Gartner. .The domestic India BPO services market grew by 7.3 per cent year-on-year in 2009 primarily due to the global economic uncertainty which led to some price and volume pressures.
    • Desi BPOs expand in US
      Indian back-office processing firms are planning to expand operations in the US following a fall in real estate prices and labour costs and a rise in anti-outsourcing sentiments there.The industry, which traditionally followed the offshoring model, is now looking to open facilities and hire locals in low-cost locations in the US. Their aim is to woo first-time outsourcers and win projects in highly-regulated sectors.
    • Wipro extends global footprint with Brazil centre
      Inaugurating a new global delivery centre in Curitiba, the Bangalore-based IT behemoth Wipro extended its global footprint in Brazil.Mayor of Curitiba, Beto Richa, and the Consul General of India in Brazil Jeitendra K Tripathi inaugurated the new centre taking the company’s four-year long operations in the country to the next stage.
    • India, China, Australia, New Zealand, Singapore & Malaysia R Top 5 Outsourcing Locations: Gartner
      Although India continues to grow in terms of IT services being exported, its relative share of the overall worldwide total has declined as a result.The country is also starting to face some challenges including wage inflation, local attrition rates, geopolitical issues and financial irregularities, which are opening opportunities for other countries that are also improving their capabilities to target local service demands of more-mature regional Asian clients.
    • LPO industry shows interest in onshore delivery model
      Many law firms are choosing to send work to delivery centers in the UK, over centers in India or South Africa, says a Fronterion survey.The survey shows that around 300 legal professionals are being put to use in delivery centers in Scotland, Wales and Southwest England.The survey also notes that of the top 17 global vendors, 10 per cent of their legal delivery staff is based in the UK. The study says that the onshore outsourcing industry will grow significantly, even though it is only a small percentage of the offshore outsourcing industry. This change will lead to new opportunities for legal professionals in the UK.
    • Legal offshorers challenge law firms
      Law firms are in for a stiff out-of-court challenge. A legal firm may sound good on a student’s resume when he starts his career, but better growth opportunities and flexible working hours may clinch the argument in favour of a shift to a legal process outsourcing firm.Sreyashi Sen, who has been working with a Mumbai-based LPO firm for the past one year, believe professionals working in such firms have chosen a better life for themselves. “The money is good, working hours are fixed (eight-hour shifts), and one can rise to managerial levels,” she says.
    • Wipro sees outsourcing potential in France
      Indian IT services provider Wipro said it is keen to expand its footprint in France as the country offers huge potential for growth and has stepped up its investment in the region.”We invested in a senior leadership team. We are seeing excellent progress and we are extremely confident of our future in France,” Wipro CFO Manish Dugar said in a statement here.
    • Patni sets up North American BPO hub in Texas
      Global IT and BPO services provider, Patni Computer Systems, on Tuesday said it has set up a new North American hub for Business Process Outsourcing operations in El Paso, Texas.The establishment of the El Paso site follows Patni’s recent move to open a nearshore center in Queretaro, Mexico, to serve North American and Latin American markets and augment the company’s global delivery capabilities, a company release stated in Mumbai.
    • Aditya Birla Minacs acquires UK’s Compass BPO
      Aditya Birla Minacs, a leading BPO services player in India and part of the Aditya Birla Group, has acquired the UK-based firm Compass BPO for an undisclosed sum.Compass BPO provides services in the area of finance and accounting (FAO) with presence in the UK, the US, UAE and India. It employs around 600 people.
    • Sequoia Hikes Stake To 9.7% In KPO eClerx
      It has picked up an additional 2.9% stake via an open market transaction in the BSE-listed entity.Sequoia Capital is increasing its stake in knowledge process outsourcing firm eClerx Services Ltd.The venture and growth capital investor has picked up an additional 2.9% stake in the BSE-listed eClerx through an open market transaction for Rs 29.7 crore ($6.53 million). With this deal, Sequoia now holds 9.7% in the firm, making it the largest institutional shareholder.
    • Telco price wars hit BPO margins
      The plethora of new pricing schemes from telecom companies, like ‘one paisa per second’ billing, has squeezed the margins of their business process outsourcing partners.Telcos typically outsource work on customer service (voice) and some back-office operations. BPOs get 70 per cent of their revenue from voice alone. However, Indian telcos are witnessing a dip in volumes and calls due to the pricing and other wars for customer share in an already crowded market. Telcos are now asking their BPO partners for price reductions of 9-15 per cent to protect their own margins.
    • EXL to open BPO units in Noida and Jaipur SEZs
      ExlService Holdings, Inc., a leading provider of outsourcing and transformation services, on Monday announced plans to set up two new delivery centers in Noida and Jaipur in India. These centers will expand EXL’s global services capacity, support new client acquisitions and enable greater flexibility to meet client requirements. It will also strengthen EXL’s ability to provide a stronger business continuity framework.The new facilities are located in Special Economic Zones (SEZ). The cost and tax structures of SEZ facilities would help sustain EXL’s competitiveness in the global market.
    • The Awakening Of Rural India: Welcome to the Village BPO
      When Source for Change – an initiative of the Mumbai based Piramal Foundation sought to set up a call centre in rural Bagar in Rajasthan, the most common query from the menfolk was whether their women could really learn to use a computer. Back then, the men used to accompany their wives or daughters to the training centre and then wait around until they were ready to return home.Today, men do drop by occasionally unannounced, but it is to enquire about jobs for their womenfolk at the call centre. The men have begun to realize that the centre offers two of the most valuable elements of social status: English and computers. The women, some of whom earn more than the men in their families, now have a say at the family table. And that is a tremendous leap forward in empowerment.

Also see news archives

Latest Columns

Generation gap: A crucial factor in the working environment

The latest generation of the workforce in outsourcing companies was born in the period 1980—2000, and they go by the name, the Gen Y employees. It has been alleged that they are not very motivated and are less involved in their work. Some have, in fact, claimed that they are lazier than the previous generations. […]

Financial Services: Insourcing trends gain momentum in 2013

About a decade back, when the BPM industry was witnessing an upswing in outsourcing operations, nobody would have anticipated that the process would come full circle. But the inevitable is happening now. Many Western companies are increasingly looking at insourcing as part of their business strategy to improve profits. This idea has been gaining ground […]

Speak Your Mind