Industry news

  • 27 Sep 2016 12:00 AM | Anonymous

    Since the referendum, the UK has been attracting a lot of interest from foreign buyers according to Mergermarket. The UK has over 120 inbound deals since the referendum on the UK’s place in Europe, worth nearly £50 billion. It is believed that the low value of the pound, which bounced around 5 week lows against competitors, has encouraged foreign buyers to purchase UK business. It is quite a turnaround for the M&A market in the UK, which prior to the referendum was struggling.

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    Related news: Big Business Plans for Life After Brexit

  • 27 Sep 2016 12:00 AM | Anonymous

    Investors are feeling less confident of the business cycle according to an Absolute Strategy Research survey. Many of the respondents to the survey believe that business confidence will continue to fall over the next 12 months. Many argue that the uncertain conditions of Brexit, the weak European banking system and the race to the White House as reasons for this drop in confidence, however many investors do not believe that we are on the precipice of the next recession.

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  • 27 Sep 2016 12:00 AM | Anonymous

    With Brexit still dominating the headlines the GXP summit beginning on the 16th October will be looking into the matter alongside other topics. With topics like the cloud, BPO innovations and global expansion being discussed at the event along with many VIP speakers the event is the perfect opportunity to understand the landscape of business after Brexit. The event is only a few weeks away so now is the time to book, plan your future.

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  • 27 Sep 2016 12:00 AM | Anonymous

    The South African BPM Summit is fast approaching, offering a three-day summit for potential investors to learn more about South Africa. The event is an opportunity to meet members of the South African political establishment, international and national BPO stakeholders and many more while networking and learning more about the potential of South Africa. The event takes place in Cape Town and will feature many businesses that have already set up in South Africa. To learn more, click here.

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  • 27 Sep 2016 12:00 AM | Anonymous

    Situated on the south east of the Indian Peninsula and probably best known to most Brits as an idyllic holiday destination, Sri Lanka is also gaining recognition as being an interesting and exciting alternative destination for businesses considering offshoring.

    With a population of just over 20 million by most recent surveys, of which maybe 10 million are of working age, Sri Lanka is looking to complement other destinations by offering high skilled and niche professional services, but also be more competitive on quality.

    Education and Sector Skills

    Sri Lanka has well established legal and financial service sectors among others thanks to its well educated workforce. The country’s 15 state universities and over 20 private educational institutes are creating a highly educated and multi-skilled workforce with close to 100,000 students graduating every year. Already equipped with a fantastic grasp of English having been a former colony until its independence in 1948, Sri Lanka also has a multilingual workforce, capable with many European languages as well as Japanese and Chinese thanks mainly to the growth of the tourism industry. What’s more, the Sri Lankan government is committed to maintaining the fantastic education that the country offers having launched programs to increase IT usage and literacy in schools over the past few years.

    Impressively, the IT/BPM industry in Sri Lanka currently boasts over 300+ Companies employing more than 60,000+ employees with a 17% year-on-year employee growth rate. The export revenue generated by the industry stands at 847 Million USD – an average revenue growth of 12% annually. Sri Lanka’s attractiveness as a global destination for IT/BPM services has been gaining steady ground with the country winning many awards and accolades from highly reputed international industry-related bodies such as the National Outsourcing Association of UK, AT Kearney, Gartner, Tholons, and among others.

    The Economy and Government Support

    The Sri Lankan economy has been growing at pace since the early 2000s, with GDP growth of 3%-6% a year since 2012. Inflation in Sri Lanka is around 4% - 6% which for an emerging economy is very attractive, the central bank has recently been raising interest rates in an attempt to reduce pressure on the balance of payments.

    Since Maithripala Sirisena took office as president in January 2015, the government has been striving to reduce the massive debts after profligate borrowing by the previous government. In 2015 Sri Lanka had a budget deficit of 6.7% of the GDP and has a target to reduce this to 5.4% this year and 4.7% in 2017 with ongoing assistance from the IMF’s Extended Fund Facility.

    The government is also building its reputation as a pro-business and pro-investment administration by allowing 100% foreign ownership in almost all sectors, which has seen Sri Lanka ranked appreciatively in the World Bank’s Doing Business Index. Given its location in the Indian Ocean, Sri Lanka has a strong trading relationship with India, with nearly a quarter of imports (2015) come from its neighbor, whereas Sri Lanka’s key export markets are the United States and the European Union. This has reinforced Sri Lanka’s desire to act as a complement to the industries that traditionally use India as an outsourcing destination.

    ‘Vision 2022’ envisioned, created and backed by Sri Lanka’s government has set an ambitious yet achievable export revenue target of US$ 5 billion, a skilled and competent workforce of 200,000, and 1000 new startups. This also ensures that any investor hoping to set up IT or BPM operations in Sri Lanka will be provided with state-endorsed benefits.

    Labour costs

    The cost of labour in Sri Lanka remains comparatively low when looking at emerging markets. Despite the high skill level, wages remain lower than most competing countries offering attractive value for money when it comes to employment. Many positions, such as IT programmers and accountants cost lower to employ in Sri Lanka, than say India or China, giving the country an attractive quality. Sri Lankan IT and BPM professionals also tend to stay longer in their employment which also contributes to a total lower cost of employment. Real estate costs are also low, with offices in Colombo, Sri Lanka’s largest city, being among the lowest in the region, whilst offering world class spaces.

    After the problems during the conflict, Sri Lanka is now considered a secure country which has boosted tourism and investment in the economy. Terrorism is low threat in Sri Lanka and the political situation is looking stable.

    Sri Lanka can provide a skilled and professional workforce and is therefore a popular choice for niche investment. Thanks to its stable economic and political environment, the country is a more prosperous and less risky destination for foreign capital. With a strong investment in infrastructure spending and extensive international air links, the country is competing strongly for investment in the crowded Southern Asian area and with a stable

    economic growth and low costs, the location is emerging as a frontrunner in the outsourcing space.

    The NOA is co-hosting a Trade Visit by the Sri Lankan Export Development Board in November 2016. If you are interested in finding out more about Sri Lanka as an outsourcing destination, or would like to register your interest in the Trade Visit to explore outsourcing options in the region, you can register here.

  • 26 Sep 2016 12:00 AM | Anonymous

    Due to the increasing demand for IT professionals in virtually all sectors of the economy, and also to the deficiencies in local labour markets, the outsourcing of IT services through the nearshore model is growing in popularity. However, companies often hesitate before deciding to utilize outsourcing in the scope of body and team leasing with foreign companies, fearing the associated risks. The way to overcome these fears is to find a business partner who is experienced in the implementation of outsourcing projects to jointly develop an effective model for project management. Also important when it comes to cooperation is to ensure an effective onboarding process for incoming employees at the client’s company.

    Onboarding in sunny Valencia

    The recent launch of JCommerce’s support project for the Dutch company Helloprint is excellent proof that the onboarding process greatly facilitates further cooperation. The outsourcing contract in this case includes the maintenance and development of the QlikView platform for the rapidly growing international online printing service. In accordance with the customer’s wishes, Łukasz Czajka, Business Intelligence specialist, spent two weeks in one of the company’s offices located in beautiful and sunny Valencia.

    Łukasz said of his trip: “In June, at the invitation of the customer, I went to Valencia, the third largest city in Spain. The trip was to meet the client directly, to get to know the company and discuss the work that I was to do. The trip should certainly be considered a success, because apart from the tourist attractions (plenty of incredible sights to see and the wonderful de la Malvarrosa beach), I had the opportunity to take a closer look at the style of work at the client’s premises, to assuage misconceptions or doubts and get to know the business “from the inside.” Thanks to my trip, after returning to Poland, the task is much easier thanks to the contact established there and the fact that I met the people who I’m working with on a daily basis.”

    As you can see, thanks to the well-thought-out onboarding process, the employee has the opportunity to learn about the project requirements, the users, and build the relationships and trust which are the basis for long-term and effective cooperation.

    Onboarding – the first step to quality cooperation.

    Those responsible for the decision to begin cooperation in terms of the outsourcing of IT services usually indicate the following questions and concerns:

    • communication problems (language barriers, remote communications – video conferencing, teleconferencing, lack of face-to-face meetings);

    • difficult contact;

    • lack of integration with the outsourced team;

    • lack of involvement of the outsourced team;

    • loss of control over the quality and speed of the project (risk of dissatisfaction of the final customer);

    • coordination problems;

    • cultural differences;

    • the risk of a bad reception within the company to the decision to cooperate with a third-party vendor (a bad effect on the atmosphere within the team);

    • the risk of an ‘us’ and ‘them’ mentality developing within the project;

    • bad experiences of one’s own or other companies in terms of IT offshoring;

    • unpredictability and ‘surprises’ which may pop up during cooperation.

    Without a doubt, these concerns are reasonable, and therefore the organization of such collaboration is especially important in order to minimize the potential risk. From the very beginning honest communication and clearly defined rules should be established, and – perhaps most importantly – the two parties involved must be able to get to know each other better. If it should prove possible, both parties should move toward the process of onboarding, which initiates cooperation and consists of meeting people directly engaged in the execution of the project. Normally, onboarding should last between 3 and 5 days, during which the client managers on the client’s side, such as the Project Manager, Product Owner and Software Architect, meet with the team put together by their business partner: the Project Manager, Technical Leader and developers.

    Onboarding is designed to:

    • help with understanding the business objectives of the client and the project itself;

    • establish the principles and tools of communication;

    • establish roles within the team;

    • prepare hardware and software for use in the project;

    • get to know colleagues through initial integration.

    Ideally, onboarding is done on-site at the customer’s premises. Thanks to this process, the whole team has the opportunity to get to know and understand the “client organization”, as well as the people who they will work with. The integration process is of great importance, especially in the team extension model where the project and the work of particular outsourced employees are managed by the client. If onboarding and subsequent integration are carried out effectively, it may even lead to a situation in which the employee will identify more with the final customer than with the organization in which he is formally employed. Strong identification with the client means greater loyalty and engagement from the employee, which translates into greater efficiency and the satisfaction of both parties.

    In the case of foreign projects, it sometimes turns out that the onboarding stage can be extended by up to several weeks – as it was in the case of Helloprint. Why do customers from Germany, Finland and the Netherlands choose to extend this initial stage? It gives them a sense of control and security – during those first few weeks, it is possible to get to know the staff, to present their expectations, and finally to verify whether cooperation in the form of the outsourcing model will be feasible. At this stage, understanding and trust are built, without which fruitful cooperation cannot be ensured.

    What comes next after onboarding?

    Of course, integration and building good relationships do not end with onboarding itself. We realize that over the course of the project, some topics should be discussed face-to-face from time to time. It is also important to remember the need to maintain proper motivation and integration within a team, or people working together. That’s why JCommerce takes care to regularly organize such meetings for their employees.

    Depending on the needs of the client, on-site visits and work can also take place regularly. The proportion of on-site work (at the customer’s premises) often constitutes up to 25% of foreign projects. As an example, the team can spend an entire week on-site at the customer’s premises each month, and spend the rest of the time working remotely. From this perspective, nearshoring is no longer something distant, unknown and difficult to manage. Fortunately, Polish developers are increasingly mobile, amenable and willing to undertake foreign travel. Through the experience gained during such trips, they build self-confidence and improve their communication skills, not to mention taking the opportunity to gain international experience and visit interesting places. With the proper organization of cooperation, both parties can gain a great deal.

    Anna Nowicka,

    International Business Development Manager, JCommerce

  • 26 Sep 2016 12:00 AM | Anonymous

    In a survey by KPMG, three quarters of CEO’s at large companies (revenues more than £100 million) have considered moving headquarters to outside the UK following the Brexit vote. Most believe that Britain leaving the EU will be bad for business with KPMG saying 72% of CEO’s had voted to remain in the EU. The pound has hit a week low on Friday against the dollar as the uncertainty of Britain’s conditions of leaving remain unanswered. “CEOs are reacting to the prevailing uncertainty with contingency planning," said Simon Collins, KPMG UK chairman.

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    Related news: Lloyd’s Considers EU Move

  • 26 Sep 2016 12:00 AM | Anonymous

    The Football Association (FA) is considering options to outsource the process of player discipline. The FA is considering removing its current panel who judge in cases of player/manager misconduct and outsource responsibility in the hope of gaining accountability with clubs after receiving complaints that it’s 99% conviction rate was harsh. With many high profile cases due to the constant coverage of UK football, if the considerations are followed through, it will be under scrutiny from football fans around the country.

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  • 26 Sep 2016 12:00 AM | Anonymous

    Next week will be the European Summit and Awards in Sofia, Bulgaria. It promises to be an exciting event for the sourcing community as the NOA announces some big changes. The celebration of the European sourcing community starts on the 5th of October with the first ever 24-hour Hackathon. On the 6th of October will be the Leadership Conference followed by the Awards ceremony and dinner. With a long list of world class speakers, including the President of Bulgaria, it’s not to be missed. Register now!

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    Related news: EOA in Bulgaria Only a Few Weeks Away

  • 23 Sep 2016 12:00 AM | Anonymous

    Small business confidence is in negative territory for the first time in four years according to the most recent study by the Federation of Small Businesses. Their key indicator for small business confidence, the Small Business Index (SBI) fell to -2.9 in Q3 2016 from +21.4 in Q4 2015 which may be driven by key policy changes like the National Living wage and changes in the treatment of tax dividends affecting small business owners as over the past year the index has steadily declined. “Although it is clear that overall small business confidence has declined, the underlying picture in this survey is decidedly mixed” said Mike Cherry, FSB National Chairman.

    To read more, click here.

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