Industry news

All things considered, this has been a successful week for the outsourcing community, with a spate of newly signed projects and announcements arriving in all of our inboxes on a daily basis to warm the cockles of even the most hardened doom-and-gloom monger.

Don’t believe us? Well, take the announcement by BT that it had been awarded a contract by Nationwide to provide managed security services as an example.

Or even the engineering management contract signed this week by Meggitt with HCL or, come to think of it, the record 2nd quarter results announced by leading provider of information technology, consulting and business process outsourcing, Cognizant.

But before you start putting up the bunting, balloons and flags to celebrate the end of all your financial woes, it’s worth sparing a thought for those less fortunate. This week, the Co-operative announced that it was bringing 36 IT roles back in-house following its acquisition last year of supermarket chain Somerfield.

The roles relate to helpdesk and store systems support, with the company opting to re-create jobs previously outsourced by Somerfield.

Further proof, were it needed, that our economic woes are not yet at an end, came with the news that cancelled public sector contracts could precipitate a Double Dip Recession.

Although that may sound like an exciting new ride at Alton Towers, we’re fairly sure that it’s much, much longer, and far less exciting, so perhaps a little perspective is no bad thing.

Netcall plc has completed the agreed acquisition of Telephonetics plc.

The joining together of the two companies and the further integration of Q-Max, acquired by Netcall in 2009, delivers a wide and compelling suite of contact centre and enterprise communications solutions.

Henrik Bang

Organisations require a number of tools to plan and forecast demand and supply of agents, route calls effectively, automate appropriate transactions, deliver exceptional caller experience, and gather together disparate sources of data to provide valuable management information.

Henrik Bang, Netcall CEO, commented, ‘The enlarged Netcall group delivers an enhanced proposition for customer interaction solutions with a broadened and improved product offering. I am really excited about the future opportunities for the group to deliver the key benefits of improved customer experience and minimised costs to organisations.’

Infosys BPO completed the acquisition of US-based insurance and retirement business process solutions provider McCamish Systems LLC. The deal establishes Infosys BPO as a key player in business platform services for the insurance and financial services sector and will enhance companys capability to deliver end-to-end business solutions, according to a press release.

With this acquisition,Infosys BPO strengthens its presence as a global outsourcing services provider.We look forward to an exceptional relationship with McCamish Systems LLC and are delighted to be working with a dynamic and outstanding group of individuals", Ritesh Idnani, Head, World Wide sales and marketing and business Head, Banking, Capital Markets, Insurance, Healthcare and Emerging Markets and Americas Operations, Infosys BPO said.

J Gordon Beckhan Jr., President and CEO, McCamish Systems said "we as a part of Infosys BPO are excited to be associated with an organisation that is driven by an ethos of values and knowledge capital. Our customers would also benefit from this partnership at a global scale".

Meggitt have signed an engineering management outsourcing contract with HCL. The contract is worth $50 million and will see HCL providing engineering services for the companys global operations. The contract was awarded after a multi-vendor review which ran for several months. Terry Twigger, Meggitts chief executive says that this strategic initiative will help us respond to the current economic environment while successfully positioning us for future growth.

"With more than three decades of experience helping large corporations address complex engineering environments, HCL integrates the right capabilities and business models to ensure organizations such as Meggitt establish a competitive advantage," said Sandeep Kishore, senior VP and global head of sales and practice, HCL ERS.

"HCLs alignment to the key business imperatives of Meggitt and synergy with business objectives proved to be the biggest differentiators during the evaluation process and culminated in this strategic win," he added.

Headquartered in the United Kingdom, Meggitt PLC is an international group operating in North America, Europe and Asia, known for its specialised extreme environment engineering. Meggitt is a world leader in civil and military aerospace equipment, sensing systems, combat support and defence systems training, the release added.

Meggitt is a UK headquartered company with a presence in North America, Europe and Asia. It specialises in extreme environment engineering

C3/CustomerContactChannels, a global contact center provider, announced today that it is in the process of opening its newest contact center in Salt Lake City, Utah. The Company will bring 500 new jobs to the Region in addition to establishing its West Region technology hub.

Centrally located at 5215 Wiley Post Way in Salt Lake City, the new center is approximately 40,000 square feet in size. In addition to its efforts to fill several key local management positions, C3/CustomerContactChannels is actively recruiting for licensed insurance agents within the area and is offering a $500 bonus after employment to agents with licenses that expire in 2011 or later. Additionally, the Company is offering paid training and licensing to qualified applicants interested in obtaining their insurance license.

"Salt Lake City is ideal for C3/CustomerContactChannels to set up operations due to its highly educated workforce, strong work ethic, and multilingual capabilities," commented Bob Tenzer, SVP of Human Resources for C3/CustomerContactChannels. "The response thus far to our recruitment efforts has been quite strong and we are very happy that our Company's growth can bring so many new jobs to this area."

C3/CustomerContactChannels prides itself on a culture that encourages employee and leadership development, community involvement, and career advancement in an environment that is both fun and exciting. Qualified applicants can apply online by submitting a cover letter and resume at www.c3connect.com/careers .

The C3/CustomerContactChannels Management team founded Florida-based Precision Response Corporation (PRC) in 1982, a leading, global provider of contact center services which grew the Company to over 14,000 employees globally under their leadership, and sold in 2000 to IAC/InterActiveCorp. C3/CustomerContactChannels is uniquely positioned to offer boutique style client management in a global operating environment built upon proven operational best practices and a veteran leadership team.

Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, has been recognized by HP with the Application Implementation Partner of the Year Award at HP Software Universe 2010. Working together for more than 18 years, Capgemini and HP have leveraged their alliance to provide solutions for major financial services clients.

During the awards ceremony at HP Software Universe 2010, Capgemini’s sales and delivery teams were recognized for their application management services that satisfied stakeholders at leading financial services institutions. By leveraging its collaboration with HP, Capgemini has helped one Wall Street firm define a structured, enterprise-wide testing methodology with oversight and governance, allowing the company to better utilize its investment in HP testing products. Capgemini has also helped a major global banking company execute a successful HP Quality Center upgrade for more than 2,000 projects and 10,000 clients and users.

“The combination of Capgemini’s implementation experience and HP’s application testing products and services has offered critical solutions to a number of the world’s largest financial institutions,” said Roy Stansbury, managing director for Capgemini financial services in North America. “Capgemini’s alliance with HP has augmented our clients’ abilities, keeping them armed with the most relevant and cutting-edge application management and testing strategies.”

Other examples of success include Capgemini’s work with a major mutual fund company to configure their HP testing products in order to provide a CIO-level dashboard view of their testing operations, and realize the expected ROI on their tool set. Also, a major custodian bank with worldwide operations was able to define a clear, actionable plan for deploying an enterprise-wide test strategy, using HP testing products and Capgemini’s financial services expertise and strategic approach.

“For well over a decade, we have partnered with Capgemini to respond to client needs, and deliver solutions successfully into the market, resulting in high client satisfaction,” said Scott Strubel, vice president, HP Americas Alliances and Channels. “As HP’s Application Implementation Partner of the Year, Capgemini has effectively demonstrated how they help clients transform their businesses through the innovative use of HP products and services.”

SourceRight Solutions today announced that it has been named the top RPO provider in HRO Today's annual "Baker's Dozen" listing. Additionally, for the third consecutive year, SourceRight was recognized as the number one provider in the 'Quality of Service' ranking.

The HRO Today "Baker's Dozen" listing ranked the top providers of RPO services – both in the U.S. and internationally – and was based on three categories: breadth of service, size of deals and quality of service. In addition to being named the number one overall provider as well as number one in quality of service, SourceRight Solutions was recognized as a top provider across all three categories.

According to Elliot Clark, CEO of SharedXpertise, publishers of HRO Today Magazine, "SourceRight Solutions has been the top performer in our survey in Quality of Service for three years and has ascended to the top position as the No. 1 enterprise provider. They have demonstrated a clear commitment to their customer base, ongoing process improvement, and innovation in some of the largest and most complex programs in the industry. SourceRight's top rated performance on this year's survey is a tribute to their company and their dedication to excellence."

Rebecca Callahan, president of SourceRight Solutions, commented, "We are thrilled to be named the top enterprise provider of RPO services, as well as the number one provider of quality of service for the third year in a row. In this highly competitive field, more and more companies are looking for a recruitment partner that can deliver total workforce solutions delivered with high standards of service excellence. This prestigious recognition validates SourceRight's commitment to our client relationships and unmatched talent acquisition capabilities."

HRO Today's "Baker's Dozen" methodology is based on established standards for customer satisfaction research components. RPO buyers complete Web-based surveys that rate 50 providers from which the final Baker's Dozen is ranked on three dimensions related to the breadth of service or complexity of the programs, the size of the programs and the quality of the service they receive. These ratings are calculated into an overall index. The annual survey is confidential and uses buyers identified by the provider community and buyers who are contacted directly by HRO Today Magazine. There is a survey verification process. With more than 600 surveys completed by HR professionals who are current buyers of RPO services, the HRO Today RPO "Bakers Dozen" is the largest survey of RPO buyers conducted in the RPO industry.

Aviva UK General Insurance (UKGI) has partnered with Rostrvm Solutions to provide the technical expertise and innovation required in building a market-leading outbound operation.

Aviva UKGI is well accomplished in acquiring and retaining its customers. Nearly 170 people are employed in its outbound contact service, operating more than 130 workstations across two Centres of Excellence, based in Glasgow, Scotland.

The company needed greater functionality in its outbound operation, to make high-quality, tailored calls to meet a complex blend of acquisition, retention and additional business needs. Often driven from customer-initiated interactions, the calls need to be targeted to meet the ever-changing mix of both market and customer requirements – and focused to enhance the overall customer experience. The solution needed to accommodate this, while reducing the total cost to acquire/serve.

Shona Anderson, Technical Manager, Telephony, said, “Rostrvm Solutions exhibited a partnership ethos and flexibility that surpassed the traditional technology provider/client relationship. Equally, it was clear that Rostrvm had identified that the key to their success was being able to rapidly meet and anticipate the ever-evolving needs of their clients, in response to shifting market dynamics.”

Rostrvm has provided a strategic outbound dialling solution for initially up to 250 users, with the potential to expand to over 600. Although for Aviva, the rostrvm Outbound dialler is being hosted by Cable&Wireless and has been installed in their network for use as ‘software as a service’ by Aviva.

Alan MacEwan, Outbound Strategic Delivery Manager at Aviva, adds, “The Rostrvm solution has quickly become a pivotal component in Aviva’s General Insurance strategy across multiple brands, products and customer touchpoints. Rostrvm will continue to support our growth and their expertise will be crucial in allowing Aviva to innovate, drive greater efficiencies, maximise data usage and truly exploit the potential of a professional and experienced outbound solution.”

$22 million, federally-backed program aims to help outsourcers in South Asia become more fluent in areas like Java programming—and the English language.

Despite President Obama's pledge to retain more hi-tech jobs in the U.S., a federal agency run by a hand-picked Obama appointee has launched a $22 million program to train workers, including 3,000 specialists in IT and related functions, in South Asia.

Following their training, the tech workers will be placed with outsourcing vendors in the region that provide offshore IT and business services to American companies looking to take advantage of the Asian subcontinent's low labor costs.

Under director Rajiv Shah, the United States Agency for International Development will partner with private outsourcers in Sri Lanka to teach workers there advanced IT skills like Enterprise Java (Java EE) programming, as well as skills in business process outsourcing and call center support. USAID will also help the trainees brush up on their English language proficiency.

"To help fill workforce gaps in BPO and IT, USAID is teaming up with leading BPO and IT/English language training companies to establish professional IT and English skills development training centers," the U.S. Embassy in Colombo, Sri Lanka, said in a statement posted Friday on its Web site.

"Courses in Business Process Outsourcing, Enterprise Java, and English Language Skills will be offered at no charge to over 3,000 under- and unemployed students who will then participate in on-the-job training schemes with private firms," the embassy said.

USAID is also partnering with Sri Lankan companies in other industries, including construction and garment manufacturing, to help create 10,000 new jobs in the country, which is still recovering from a 30-year civil war that ended in 2009.

But it's the outsourcing program that's sure to draw the most fire from critics. While Obama acknowledged that occupations such as garment making don't add much value to the U.S. economy, he argued relentlessly during his presidential run that lawmakers needed to do more to keep hi-tech jobs in IT, biological sciences, and green energy in the country.

He also accused the Bush administration of creating tax loopholes that made it easier for U.S. companies to place work offshore in low-cost countries.

As recently as Monday, Obama, speaking at a Democratic fundraiser in Atlanta, boasted about his efforts to reduce offshoring. The President said he's implemented "a plan that’s focused on making our middle class more secure and our country more competitive in the long run -- so that the jobs and industries of the future aren’t all going to China and India, but are being created right here in the United States of America."

Obama in January tapped Shah to head USAID. At the time of his appointment, Shah—whose experience in the development community included senior positions at the Bill & Melinda Gates Foundation—said the organization needed to focus more on helping developing nations build technology-based economies. "We need to develop new capabilities to pursue innovation, science, and technology," said Shaw, during his swearing in ceremony.

Sri Lanka's outsourcing industry is nascent, but growing as it begins to scoop up work from neighboring India.

In addition to homegrown firms, it's attracting investment from Indian outsourcers looking to expand beyond increasingly expensive tech hubs like Bangalore, Hyderabad, and Mumbai. In 2007, consultants at A.T. Kearney listed the country as 29th on their list of the top 50 global outsourcing destinations.

BT has been awarded a contract by Nationwide, the world’s largest building society, to provide the organisation with managed security services.

The five year contract which was signed in June, strengthens BT’s existing relationship with Nationwide, building on an outsourced contract to provide networked IT services that was awarded to BT in 2008.

BT will provide Nationwide with a range of services including Managed Security Monitoring Services (to monitor and protect the network), security firewalls and managed email and web access. Together these services will transform the building society’s existing bespoke security infrastructure to a fully managed service.

Peter Stafford, IT Director at Nationwide, said: “Nationwide is seeking to introduce standard security services across its business, to reduce costs and to improve business agility. BT was chosen because it demonstrated a complete understanding of the security architecture needed to ensure delivery of these objectives”.

Andy Nicholson, president, global banking and financial markets, BT, said: “Like many organisations in the fiercely competitive UK financial services market, Nationwide is looking to improve its business agility and remain focused on its core activities. Outsourcing security presents a key area of opportunity and as BT is the market leader in providing enterprise security solutions, we are a perfect fit for Nationwide.”

Ray Stanton, Executive Global Head of business continuity, security and governance, BT Global Services, said: “Our existing security services and BT Counterpane threat monitoring services were the starting point for introducing wider depth and standard security services to Nationwide. BT Counterpane now forms the backbone of our overall value add service offering to Nationwide, bringing together analysis and reporting across a range of different services and technologies to help Nationwide mitigate further its risk profile and improve overall service and cost.”