Industry news

  • 8 Mar 2010 12:00 AM | Anonymous

    BPO firms in the Philippines are hiring new personnel on expectations of strong business growth from the United States and Europe, the Asian Times has reported.

    Amongst the companies planning to expand are Convergys Corp, which plans to expand its 20,000 workforce by 6,000 employees this year and Stream Global Services which says it plans to add 5,000 workers this year.

    With its English-speaking population and cultural affinity with the United States - the world's biggest off-shoring client - the Philippines accounts for between seven per cent and 15 per cent of the global BPO market. The country lags only India, which accounts for between 35 per cent -50 per cent of the global market.

    Gigi Virata, information and research director of the Business Process Association of the Philippines (BPAP), explained: "The back-office and KPO sector has been growing at a faster rate than the voice-based sector and we believe this trend will continue."

  • 8 Mar 2010 12:00 AM | Anonymous

    French nuns have received the news that their sacramental bread may be replaced by cheaper Polish hosts, it has been reported.

    Authorities are contemplating buying the cheaper wafers, according to The Guardian, as the religious bodies at French shrine Lourdes were contemplating buying cheaper hosts from Poland – which are made by a secular workforce.

    However, the Lourdes church has since announced it would continue to buy wafers made in France – but only after negotiating a price reduction.

    Sister Marcelline, from the Carmelite convent at Carmel de Saint Germain-en-Laye just outside Paris, told The Guardian: "Foreign producers, namely those from Poland, have undercut the market."

  • 8 Mar 2010 12:00 AM | Anonymous

    Back in late January, an entry on the NASSCOM India Leadership Forum blog caused a bit of a brouhaha. In it, Vishal Gondal, CEO of mobile games company Indiagames, accused Indian IT companies of failing to adapt to the world of social networking.

    "This is surely one 'social' cause [that] the Indian IT leaders should wake up to," he wrote.

    His posting attracted a stream of comments - some rather less measured, and more caustic, than others. On the whole, however, those who left comments appeared to agree with Vishal Gondal: there is still much work for such companies to do if they're really going to reap the benefits of Web 2.0.

    I broadly agree, but with certain caveats. First, I think it's true of outsourcing companies everywhere in the world, not just India. Second, I think we need to recognise that the measures that Mr Gondal suggests for social networking success - a Facebook page, a Twitter account - don't necessarily translate well to the world of IT services and outsourcing.

    It's a subject I thought I'd discuss with Raj Datta, chief knowledge officer at Indian IT and R&D services company MindTree. I first met Raj in London about three years ago and think he's a great person to speak to about social networking. That's because Raj's work at MindTree is driven by the belief that humans are "wired to share" and because social networking takes centre stage in helping Mindtree's workforce to share ideas and knowledge. In fact, the company has been using social software since 2003 and its overall philosophy has been "socio-technical" from the very beginning.

    "I remember in 2006, I was chairing a panel at a conference in India, which featured Jimmy Wales of Wikipedia," Raj recalls. "Following his presentation, I asked the audience a simple question: 'Who here is working with wikis in the enterprise?' Only about 5% of hands went up," he says.

    If he performed the same ad-hoc poll today, the story would be different, he believes. "The last two to three years has seen a tremendous hype around social software, social networks, Web 2.0 and Enterprise 2.0 as buzzwords, which has demanded attention from various departments."

    But have Indian companies been able to transform Web 2.0 hype into action, I wonder?

    "Most Indian IT companies today are dabbling it. However, they are early in their discovery process and are grappling with typical issues, ranging from technology, to policy, to process," Datta says. In general, he believes, companies are not easily making the shift to a more open, social, collaborative environment - but there is no way to avoid social software as it is fast becoming part of the "natural habitat" for many people who want to share ideas, whether they're at home or at work.

    Perhaps it's just not realistic to judge a company's enthusiasm for social networking by whether they're experimenting with it publicly?

    At MindTree, for example, internal corporate communications have provided an ideal platform for early experimentations with social networking. Instead of a one-way, 'top-down' approach - where the CEO or other top executive addresses the workforce in the same way that a general might dictate a battle plan to the troops - Web 2.0 creates conversations where communications can flow in multiple directions.

    The systems and tools that Raj and his team have built have social features that also allow 'bottom-up' and 'lateral' communications, too, he says. "For example, our Neuron idea management system allows for ideas to percolate upwards in the organisation to the senior-most people, and in parallel, allow for peer-to-peer lateral communications where people can comment on an idea, rate it, build links between ideas and so on," he says. But top-down communication still take place, because senior executives use the system to issue requests for ideas along a particular theme or to solve a specific challenge, he says. Now that's really tapping into 'the wisdom of the crowd'.

    Social networking is also key to how MindTree communicates with its clients about the progress of projects. The company's collaborative ProjectSpace portal allows for effective collaboration between project teams, clients and subject-matter experts so that they can track issues, build project-specific knowledge bases in wiki formats, and establish discussion forums for questions and clarifications.

    Raj tells me that he and his team are now working on a next-generation system that will allow MindTree to tap into social networks outside of the company - but in a "planned and seamless" manner, of course.

    So it seems to me that there's probably a lot going on behind the scenes at outsourcing companies. Just because a provider doesn't have a Facebook page or a Twitter account, that doesn't mean it's not interested in social networking or failing to explore Web 2.0 it in some part of their business.

    IT companies - whether they're in India or anywhere else in the world - are by their nature focussed on business-to-business (B2B) communications, not business-to-consumer (B2C). In other words, they're not trying to sell a new chocolate bar, washing detergent or hatchback car to the general public.

    For them, the true value of social networking lies in finding better ways to tackle client challenges and track project progress. These are the things that set them apart from their competitors. So internal social networking initiatives are the best way for outsourcing providers to experiment with new tools and approaches, long before they dip their toes into the dangerous waters of public forums.

  • 5 Mar 2010 12:00 AM | Anonymous

    NBN Co Limited, the company established to deliver the national broadband network in Australia, has awarded Accenture a five-year contract to provide its core HR administration services.

    Under the terms of the contract, Accenture will provide HR administration, records management, recruitment administration and performance and rewards administration to NBN Co.

  • 5 Mar 2010 12:00 AM | Anonymous

    The Main Street America Group, a provider of insurance products to individuals, families and small businesses in 24 US states, has signed a seven year strategic ITO agreement with Wipro.

    Under terms of the agreement, Wipro will manage Main Street America’s IT organisation. The contract aims to achieve faster time-to-market capabilities and reduce operating costs by utilising economies of scale.

    Ronald James, Main Street America’s chief information officer, commented: “As The Main Street America Group continues to increase scale and productivity, we need to implement more efficient processes while reducing our operating costs”.

  • 5 Mar 2010 12:00 AM | Anonymous

    This week sourcingfocus.com has been deluged with industry research which, for a change, is broadly positive. Firstly Everest Consulting has assured us that the Finance and Accounting Outsourcing (FAO) market is expected to grow at almost 20 per cent this year. Then ProBenchmark, the pricing subsidiary of outsourcing consultancy Alsbridge, conducted research showing that costs for most outsourced IT services look set to fall in 2010. ProBenchmark have attributed this price plummet to the economic downturn as well as the increase in uptake of remote infrastructure management. Nice to hear some positive aspects of the economic downturn.

    But it was not all good news. Although they claim to have ‘got your number’, the UK public haven’t returned the favour by using 118 118’s number. The directory firm whose famous advertising featured two men in 70s style jogging outfits has announced plans to close its Plymouth call centre. This move is expected to result in the loss of nearly 200 jobs.

    Playboy on the other hand released yet more plans to outsource more of its business functions. Known for not shying away from controversy, the men’s magazine brand has thrown itself full throttle into using the sourcing industry to its advantage. I don’t know about you, but if its good enough for Hef…

    2010 is looking good as far as I am concerned. I look forward to seeing what next week has in store for the industry.

  • 5 Mar 2010 12:00 AM | Anonymous

    Costs for most outsourced IT services look set to fall in 2010 due to the economic downturn as well as the increase in uptake of remote infrastructure management (RIM), research has indicated.

    While the economic climate remains uncertain, IT outsourcing prices this year look set to remain on the downward trend which began last year, though at a less dramatic pace, according to the first quarter IT service price analysis from ProBenchmark, the pricing subsidiary of outsourcing consultancy Alsbridge.

    However, the prices of some service categories including virtual server support could increase.

    "How long the economy will be like this and how long client companies will continue to more aggressively [offshore] infrastructure remains to be seen," says Chris Pattacini, ProBenchmarks's director. "It is clear that RIM will continue to proliferate in the market, continuing that downward price pressure, but not as much as last year."

  • 4 Mar 2010 12:00 AM | Anonymous

    Romania has been topped to be the new popular outsourcing destination, following research that indicated the country had jumped from 39th to19th place in an outsourcing location poll last year.

    The numbers of outsourcers and employees operating within the country have increased during to the economic downturn, thanks to the country’s high language capabilities, good solid IT skills and a location in a compatible time zone to the UK - an ideal location for call centres, help desks and back office processes..

    Meanwhile Europe’s leaders, including Poland, the Czech Republic and Hungary, have fallen as increasing costs for companies erode their competitiveness.

  • 4 Mar 2010 12:00 AM | Anonymous

    Telephone directory firm 118 118’s call centre in Plymouth, is expected to close in June, leading to the loss of nearly 200 jobs, it was reported in Personnel Today.

    The company has begun a 90-day consultation process with staff, and is reportedly offering its 180 workers voluntary redundancy.

    Meanwhile, some staff were applying for positions at the company's Cardiff call centres. It also has offices in London.

    The increasing popularity of the internet has led to a fall in business since the centre’s opening in 2003.

  • 4 Mar 2010 12:00 AM | Anonymous

    The UK Government has signed an ITO contract worth £600m with Tata Consultancy Services (TCS) to manage a state-sponsored pension scheme which is still being formulated, it was reported.

    The UK's Personal Accounts Delivery Authority has confirmed that TCS is a successful bidder for a ten-year arrangement to set up and administer the National Employment Savings Trust, a scheme to be launched by 2012.

    The Personal Accounts Delivery Authority said in a statement: “The contract is divided into two stages and runs for 10 years, with possible extensions for up to a further five years. The first stage will run to October 2010, allowing TCS to begin the activity required to set up and administer the National Employment Savings Trust.”

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