June 2010 BPO News

  • BPOs dial rural women for global trip
    A rice-and-coconut farmer in Tamil Nadu’s Salem wouldn’t allow his daughter who studied engineering to venture out for work. But 22-year old Alphonsa was resolute. She dragged her father to a ‘Family Day’ organised by a new BPO run by NextWealth Entrepreneurs, 27 km from Salem in Mallasamudram. He went around the centre, saw computers, other women at work, their managers and other people who manage the office. He was somewhat convinced his daughter too could work.
  • Hinduja Global Acquires UK-based BPO Firm
    This deal will act as a launch pad for HGSL to enter the large UK and European markets.Outsourcing serviceprovider Hinduja Global Solutions Limited (HGSL) has,through its European subsidiary, acquired 100% stake in UK-based customer relationship management company, Careline Services.Careline Services is a leading contact centre provider servicing more than 20 marquee customers across verticals such as government, FMCG, financial services, automobiles, Ttelecom & retail.
  • 9 ways to keep your outsourcing efforts on track
    Offshoring elements of a business can make sound business sense, giving companies access to cheap, highly qualified labor, writes former TransUnion executive John Parkinson. Still, there are risks to any outsourcing effort, Parkinson notes, and it’s vital to consider factors such as language, time zone and business culture before you pick a partner and take the plunge.
  • Offshoring: The 25 Most Dangerous Cities for Outsourcing in 2010
    Karachi, Pakistan, Medellin, Colombia, and Juarez, Mexico will top The Black Book of Outsourcing’s 2010 list of the most dangerous cities for offshoring when it’s released later this month.CIO — What a difference a year makes.
  • The World’s Most Unusual Outsourcing Destination
    Think of North Korea, and repression, starvation and military provocation are probably the first things that come to mind. But beyond the geopolitical posturing, North Korea has also been quietly building up its IT industry.IDG News Service — Think of North Korea, and repression, starvation and military provocation are probably the first things that come to mind. But beyond the geopolitical posturing, North Korea has also been quietly building up its IT industry.
  • Wipro bags 10-year total outsourcing deal from TVS
    Wipro Ltd, and automobile and parts distribution company, TV Sundram Iyengar & Sons, on Thursday announced that they have signed a 10-year total outsourcing contract. The partnership aims at leveraging IT across all business units and functional areas of TVS & Sons.The scope of services includes the suite of IT infrastructure and applications across the enterprise. In the initial transformation phase, Wipro will reengineer the current IT systems to achieve business IT alignment, backed by processes and tools.
  • Rural BPOs to drive growth in coming years
    BPOs located in rural areas and tier 2 and 3 cities are expected to drive the growth of the Indian BPO sector in coming years, experts said on Wednesday.”The domestic market is growing”, Nasscom President Som Mittal told reporters during the BPO Strategy Summit which began here on Wednesday.
  • Indian IT-BPO firms hot on acquisitions
    Unfazed by the sovereign debt crisis in Europe and political protests in the US against offshoring, Indian information technology (IT)-business process outsourcing (BPO) companies are busy acquiring more companies, data reveal.Consider this: The share of IT & ITeS (IT-enabled services) in the overall merger and acquisition (M&A) deals during the January-June period went up by 40 per cent, according to data compiled by Venture Intelligence, a research service focused on private equity and M&As. The IT & ITeS M&A deals had jumped 26 per cent in the same period last year.
  • IT/BPO firms increase hiring but exercise caution
    With business showing signs of normalcy returning and projects increasingly getting the green signal from clients, the information technology/business process outsourcing sector has started increasing its hiring after a lull of almost two years.India’s second-largest software services company, Infosys Technologies, for instance, plans to hire close to 30,000 this financial year.
  • Firstsource to open new contact centre in Middlesbrough, UK
    India-based BPO player, Firstsource will set up a new contact centre in Fountain Court, Middlesbrough employing over 500 people.Firstsource has three contact centres in UK that collectively employ over 1,900 people in Belfast and Londonderry.
  • Lack of talent will plague BPOs soon
    The BPO scenario in India has changed from helping and supporting the clients to understanding the core business of clients and transforming their business. Though there is a huge potential in the segment, creating BPO-ready people is the need of the hour. Speaking at the Nasscom BPO Strategy Summit, D Swaminathan, CEO of Infosys BPO said that the understanding of what is happening in the industry and how it will evolve in the future is poor among many universities and educational institutions.
  • Column : Delete ‘offshoring’?
    What’s in a word? Ask the IT industry lobby Nasscom and they would hint that changing circumstances require more sensitive words. So the word ‘offshoring’ is now outdated and better deleted from our collective consciousness. What has gone wrong with a word that is the essence of India’s IT-BPO industry? The word implies relocation of work to a foreign country to access cheap labour. However, Indian IT has moved up the value chain over the years. While cost arbitrage remains the economic basis for shifting work to India, the industry no longer wants to be seen as providing ‘cheap’ resources. It would much rather be viewed as a provider of highly skilled resources unavailable elsewhere.
  • BPO firms eye next-gen growth
    Like with most other industry segments, the BPO (business processoutsourcing) sector too is beginning to look up, after the trough brought on by the global slowdown.Global deal pipelines are slowly warming up. But there are also worries on account of the European debt crisis.
  • Nasscom rules out threat from US bill on Indian BPOs
    India’s apex association of IT & BPO companies Nasscom feels US Senator Charles Schumer’s plans to introduce a bill, which looks at taxing outbound BPO calls, will not have any impact on the $12.4-billion Indian BPO industry.In a bid to restrict call centre jobs going overseas, Senator Charles Schumer from New York State said on Sunday that he plans to introduce a bill that will levy a 25 cents tax on each outbound call originating from US but going overseas.
  • Anti-outsourcing bills now a fashion on Capitol Hill
    India’s apex association representing IT and BPO companies, Nasscom, does not see an impact of a proposed bill to tax outbound BPO calls from US going offshore on the $12.4-billion Indian BPO industry.In a bid to restrict call centre jobs going outside the US, senator Charles Schumer from New York State said on Sunday that he plans to introduce a bill that will levy a 25 cents tax on each outbound call originating from US but going overseas.
  • IT, BT firms flock to Karnataka to invest Rs 12,353 cr
    As many as 55 companies have proposed to invest over Rs 12,353 crore in Karnataka, India’s knowledge hub and a favourite destination of IT and biotechnology (BT) sectors.”We have received investment proposals worth Rs 11,000 crore from IT firms and Rs 1,353 crore from biotech firms. Among them are Infosys, Wirpo, TCS and Tata Elxsi,” state IT and BT minister K Subramanya Naidu told reporters here on Tuesday.
  • More Offshoring Will Help Preserve Accenture’s System Integration Margins
    Accenture (NYSE:ACN) competes with IBM (NYSE:IBM), HP (NYSE: HPQ), and Indian IT services players like Infosys (INFY), Wipro (WIT) and TCS in the System Integration (SI) business which entails implementing IT infrastructure and application softwareto increase operational efficiency for clients.Accenture’s SI revenues for 2009 were close to $2.6 billion, down 10% from 2008, in part due to increasing demand for SI, though at reduced costs. We expect Accenture’s billing rates per hour to decline to $57.5 in 2010. However, we believe shifting more work to offshore locations will protect Accenture’s SI margins.
  • IT-BPO revenues may grow to $10 bn by 2020
    Indian information technology and business process outsourcing sectors may get almost $10 billion from Germany, Switzerland and Austriaby 2020, up from the $2.6 billion they earn from this region across the IT, BPO and engineering services space, against the addressable market size of more than $53 billion.Business from this region, which is the largest market in Europe, has the potential to grow so much, provided Indian companies take the strategic and tactical steps required to succeed in this market, according to the latest report by Nasscom and consulting firm PricewaterhouseCoopers.
  • India can help make Pak BPOs stronger: Murthy
    Indian companies can help Pakistan strengthen its IT-BPO industry by sharing expertise and best practices with their Pakistani counterparts, Infosys Chief Mentor NR Narayana Murthy said.Speaking at an Indo-Pak business meet, Murthy said Pakistan, like India , has a talented pool of workers who speak English and can be hired at competitive cost.
  • Indian LPOs all set to tap $21-bn Australian mkt
    After American and Japanese markets, home-grown legal process outsourcing firmsare now gearing up to tap the $21-billion Australian legal market.Pegged at $21 billion in terms of industry revenue in 2009, the Australian legal market is projected to grow by about 1 per cent year-on-year.
  • Axis Bank inks largest ATM outsourcing deal
    In what is the largest ATM outsourcing deal in the country, Axis Bank has entered into an agreement with two third-party service providers to increase its ATM count to more than 9,000 within the next 18 months.The country’s third-largest private sector lender has signed contracts with Prizm Payment Services and AGS Infotech to set up and manage 5,000 ATMs on a purely variable model, according to a person with knowledge of the development.
  • New US law may make outsourcing tough for MNCs
    American lawmakers plan to make it less attractive for the country’s multinational giants IBM and GE to expand their workforce in cheaper locations such as India by taxing their income from international markets, and encourage job creation by renewing several expired tax breaks for local R&D.Last week, the House of Representatives approved the ‘American Jobs and Closing Tax Loopholes Act’ on a 215-204 vote, clearing the way for the US Senate to hold final discussions in June.

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