Belarus IT outsourcing market to grow at 17.78% CAGR by 2018

September 2nd, 2014 by Manmohan No comments »

IT Outsourcing Market in Belarus 2014-2018 discusses the attractiveness of the market in the country. The report contains of all the important information regarding the economic system and the aspects related to doing business in the country.

Cloud computing allows end-users to store their data in a vendor’s data center. Cloud resources are not only shared by multiple users, but are also dynamically reallocated to meet demand. Users of cloud computing resources do not have to invest in infrastructure and other resources; they only have to pay for the services that they use, based on pay-per-use subscription model, which helps them save cost and time and to focus on their core competencies. Cloud computing can be divided into IaaS, SaaS, and PaaS. Belarus companies have strong expertise in providing cloud computing via SaaS.
According to the report, the growth of the IT Outsourcing market in Belarus is driven by several factors. For instance, Belarus lies in close proximity to Western Europe and hence shares similar business principles. Moreover, the transportation costs associated with outsourcing can be reduced because of easy accessibility to Europe and other countries.

Analysts forecast the IT Outsourcing market in Belarus will grow at a CAGR of 17.78 percent over the period 2013-2018.

Covered in this Report

The IT Outsourcing market in Belarus discusses the attractiveness of the market in the country. The report contains of all the important information regarding the economic system and the aspects related to doing business in the country. It includes the various economic forces that affect the IT Outsourcing industry such as currency and tax laws. The report also compares Belarus with other popular IT outsourcing destinations.

IT Outsourcing Market in Belarus 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the IT Outsourcing market in Belarus landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.


Outsourcing firm looks to ride on global growth

September 2nd, 2014 by Manmohan No comments »

A leading outsourcing service provider, Servic Engine BPO, aims to more than double its workforce over the next two and a half years, a top official said.

The recruitment drive will create around 600 new jobs at the company’s Dhaka office as it expands operations to cater to growing demand for outsourcing services.

“We want to exceed the 1,000 employee mark by 2016 from the existing 400 workforce if the present growth trend continues,” ASM Mohiuddin Monem, chairman of the company, said in an interview with The Daily Star recently.

The US-Bangladesh joint venture company has registered 35-40 percent growth of revenue a year since its inception in 2006, he said.

The company checks backgrounds of customers for financial institutions and provides medical appointment assistance for US hospitals.

Interactive marketing, quality assurance, software and web development, back-office processing and digital advertising are also among the services it provides, he said.

The company’s outstanding performance did not go unnoticed: It has been adjudicated as one of the Top 100 Global Outsourcing Service Providers in the world by the International Association of Outsourcing Professionals (IAOP) in 2014.

IAOP, the global standard-setting organisation and advocate for the outsourcing profession, also ranked ServicEngine as the 12th best outsourcing company in the Rising Star category.

These rankings are based on applications received and evaluated by an independent judging panel organised by the IAOP, which has more than 120,000 members and affiliates worldwide.

“This is a tribute to the exceptional service delivered by our employees. I am proud of our employees who have shown the world the talent we have in our country,” said Monem.

The accolade will help the outsourcing industry of Bangladesh to reach new heights globally as ServicEngine is the first Bangladeshi company listed among TOP 100 BPO (Business Process Outsourcing) companies, he said.

“It will benefit the entire BPO industry in Bangladesh,” he said adding that the country has some 10-15 outsourcing companies which are doing well and the number is growing.

ServicEngine faced several challenges as business process outsourcing is new in Bangladesh, said Monem. “It was not a very easy ride.”

The company had to compete with an Indian vendor to receive its first ever work project, he said.

The country’s biggest strength for BPO industry is its large young population base, he said.

Earlier, India and the Philippines were considered the best outsourcing destinations, but the global perception is gradually changing due to rising labour costs, he said.

Bangladesh has the potential of becoming a leading outsourcing destination due to cost competitiveness and scope for capacity development, he said.

Monem, also the deputy managing director of Abdul Monem Group, a leading diversified company that engages in construction, beverage, and ice-cream business, expects a bright future for the outsourcing industry.

Global market of BPO and IT Services stood at $952 billion in 2013, of which $304 billion was BPO based, according to HfS Research, an American consultancy firm.

“The country will be able to earn at least $15 billion if it can grab only 5 percent of the global outsourcing market,” he said adding that it is not too late to try as yet.

The area of BPO activities are widening globally, said Monem, who earned his bachelor’s degree in industrial engineering in 1991 and a master’s in engineering management in 1994, both from Northeastern University of the US.

“When BPO started, it was concentrated on payroll and human resource management but that is changing,” he said.

Monem said there will be huge demand for heath care and legal process outsourcing globally. “The market is opening up especially in the hearth care sector due to a favourable policy of the Obama Administration in the US.”

ServicEngine, which has offices both in the US and Bangladesh, provides outsourcing solution mainly to the Fortune 500 companies, he said.

The work rates charged by the company are either on a per-hour or project based, depending on the service offered, and the applicable business model. The rates can range from $7 to $40 per hour.

The company that employs graduates in business studies, computer science and other IT studies pays its employees in Dhaka Tk 20,000 to Tk 200,000 a month depending on job profiles, he said.

The country registered robust growth in exports of IT and IT-enabled services in the last couple of years.

Local software and IT vendors exported services and products worth $124.72 million in fiscal 2013-14, up 22.71 percent from the previous year, according to data from the Export Promotion Bureau.

Bangladesh Association of Software and Information Services has set a target to earn $1 billion from such exports and create 1 million professionals in five years.


Essar sells Kenyan operation yuMobile

September 2nd, 2014 by Rahul Jain No comments »

Investment fund Essar Group has reached an agreement to offload its Kenyan telecom business to African carriers Safaricom and Airtel for $120m.outsourcing28

The Kenyan service provider operates under the yuMobile brand in Kenya and will split its assets, divesting the network, IT and office infrastructure to Safaricom while Airtel will acquire the company’s subscribers. Almost 90 per cent of yuMobile’s employees will be absorbed by Safaricom and Airtel.

The transaction has received approval from the Communication Authority (CA) in Kenya and is expected to conclude during the fourth quarter of 2014. yuMobile will continue to operate and serve customers, offering uninterrupted services.

yuMobile’s Chief Executive Officer, Mr Madhur Taneja said: “We would like to reassure our customers that they will continue enjoying our products and services uninterrupted. We have structured the transaction such that our customers will not need to change their mobile numbers or sim cards, post this transaction. Moreover, we expect that the intended transaction will bring bigger benefits through an expanded product bouquet to the customers.”

Essar said there was some much needed consolidation in the Kenyan mobile telecommunications market to provide customers with fewer mobile operators, better equipped to enhance service delivery and provide customers with greater product offerings.”

The sale is Essar’s second significant portfolio exit in the last few months, following the sale in July of its US-based outsourcing company, Aegis US, to Teleperformance for $610m.


Gov’t approves use of IT outsourcing by enterprises, organisations

September 2nd, 2014 by Rahul Jain No comments »

The government has given approval to enterprises and organizations to use information technology (IT) outsourcing, but many businesses remain hesitant to use such services.outsourcing27

FPT, the Vietnamese largest IT group, has signed a cooperation agreement with the Vietnam Railway Corporation on the development of a new ticket distribution system, according to Ha Noi Moi newspaper.

Under the agreement, FPT will build a modern e-ticket distribution system which allows people to buy tickets through different channels, either via websites, messages, or sale agents.

With the new system, which will replace the current one, people will be able to book tickets at any time convenient to them and update information about the ticket distribution process, itineraries and schedules.

It is expected that the project will be operating within seven years in three development stages, which will cost nearly VND200 billion.

FPT will regulate the system and share profits with the Vietnam Railway Corporation, earning profit equal to one percent of the revenue.

The business cooperation agreement, which by nature, is an IT service outsourcing contract, remains unfamiliar to many Vietnamese.

Commenting about the IT service outsourcing contract, experts said this is a wise move which can bring benefits to both sides.

Under such an agreement, FPT, the service provider, has a new client which allows it to take full advantage of its existing resources. Meanwhile, the railway corporation can have a ticket booking system without having to spend a lot of money and time on it.

Ngo Tuan Anh, deputy chair of BKAV, an Internet security firm, agreed that it would be better for enterprises and organizations to use outsourced services.
“You’d better use the services provided by professional units than do things yourself,” he noted.

However, there have not been many contracts like the one between FPT and the railway corporation.

The IT outsourcing service market in Vietnam is still tiny because Vietnamese enterprises still prefer following the “traditional investment mode” – setting up systems, and running and maintaining the systems themselves.

Thanh Nien newspaper quoted a report from Grant Thornton International Business Report (IBR) as saying that only 12 percent of businesses in Vietnam are open to outsourcing.

While the cost savings that outsourcing can provide are widely recognized, many business leaders worry about losing control of key processes. In other words, clients fear that the loss of control may cause information security problems.

Meanwhile, IT outsourcing service providers themselves can see problems that might make state agencies hesitate to use outsourcing.

Do Cao Bao, chair of FPT IS, a service provider, noted that state agencies have annual budgets for IT development, but the budgets only serve regular spending. Meanwhile, the State does not allocate budgets for IT outsourcing services.

However, analysts believe that IT service outsourcing is inevitable, and that it will facilitate the development of SMAC (Social Mobility Analytics Cloud), which is being used widely worldwide.


Health IT Workers in High Demand

September 2nd, 2014 by Rahul Jain No comments »

To satisfy the demand for desired workers, HIMSS discovered that health care employers use multiple approaches to recruit qualified IT professionals.outsourcing26

The high demand for qualified health IT professionals continues, with more than 84 percent of respondents to a HIMSS study reported their organization hired at least one staff member in the past year, a finding consistent with the 2013 survey (86 percent).

Clinical application support staff (58 percent) is the most sought-after position provider organizations plan to hire in the next year, an increase from 34 percent, as reported in the 2013 survey results.

To satisfy the demand for desired workers, the study discovered that health care employers use multiple approaches to recruit qualified IT professionals.
In addition, respondents considered IT recruiters and executive search firms to be the most effective resource to leverage in meeting their hiring demands.

“The lack of qualified health IT workers is primary related to experience.  With many academic programs centered on health informatics, there is no shortage of trained talent,” JoAnn Klinedinst, vice president of professional development at HIMSS North America, told eWeek. “However, there is a shortage of experienced talent. And how does one get experience without a position? This is a very difficult conundrum to solve.”

Klinedinst said ways to address the lack of talent include cooperative programs, apprenticeship programs like the U. S. Department of Labor recently announced, and even volunteering in an organization to learn more.

With hiring in 2014 expected to continue at the 2013 pace, 82 percent of survey respondents planned to hire at least one full time employee (FTE) in the next 12 months, a slight increase from the 79 percent of respondents planning the same in 2013.

Health care provider organizations expect to continue use of outsourced services in the next year, with more than two-thirds (70 percent) of respondents reporting at least one area of anticipated outsourcing.

Use of outsourced services decreased this year, since the 2013 survey found 93 percent of health care provider organizations planned at least one outsourced service.
The benefits of outsoucing health IT staff include supplementing existing staff talent and providing resources that existing staff can learn from, Klinedinst explained.

From a drawback perspective, however, she said there must be a plan in place to ensure that the knowledge is transferred to those within the organization when the outsourcing agreement has ended.

“Mobile technology, while enjoying tremendous popularity, causes a multitude of challenges for health IT professionals, such as access, privacy and security, patients bringing their own devices, and so on,” Klinedinst said. “Health IT professionals must be alert to the latest trends and be prepared to accept changes of this rapidly changing landscape.”

Even though the reported hiring of– or plans to hire–IT staff are quite high, the findings point to a 5 percent increase in staff layoffs between 2013 (8 percent) and 2014 (13 percent).

“With the focus shifting to the use of data, there are jobs today that will be needed in the future that we have not yet defined,” she said. “There will always be projects, implementations, re-designs, and many other tasks to focus on.  It’s an exciting time to be in health IT because of the focus on the patient, the processes, and the technologies.”


Look To ICT For Growth, Say Experts

September 2nd, 2014 by Rahul Jain No comments »

Despite noted growth in the agriculture and tourism sectors, it appears that the future of jobs in Jamaica will be in sectors closely linked to information and communications technology (ICT). Running a close second in the job-creation line-up is the business processing outsourcing (BPO) sector, experts say.outsourcing25

Edison Galbraith, general manager of loan origination and portfolio management at the Development Bank of Jamaica (DBJ), told The Gleaner that the ICT and business processing outsourcing sectors are now of significant focus for the institution.

Speaking at a recent Gleaner Editors’ Forum, Galbraith said that these industries were expanding rapidly and that the DBJ was not averse to investing in these areas.

“As it relates to the ICT and BPO sectors, those are areas that the DBJ has started to look into, and over the last two years we’ve had approvals of over US$23 million to create about 500,000 square feet of space for the sectors and that is expected to generate up to 11,000 new jobs,” Galbraith said.

PIOJ expects upswing

Colin Bullock, director general of the Planning Institute of Jamaica (PIOJ), said at a recent press briefing, he expected to see an upswing in the fortunes of the ICT and other sectors going forward.

Anthony Hylton, minister of industry, investment and commerce, said work has already started to ensure that the BPO industry expands beyond Montego Bay, St James and Kingston, where it has largely been confined.

“The BPO sector is poised to generate, this year, in excess of 3,000 jobs. That sector is growing, the demand is strong, and our constraint now is how rapidly we can create space for it,” Hylton said, adding that one particular company has decided to invest in excess of US$15 million to create a BPO centre in Manchester by year end.

The main services offered in the BPO centres currently operating in Jamaica range from finance and accounting, receivables and debt collection, inbound customer service, telesales, and marketing and technical support.

Statistics from JAMPRO indicate that in 2013, there were some 30 BPO companies operating in the country, employing close to 14,000 persons. The Government’s plan is to double the size of the industry by 2016, with provision of 1.2 million square feet of BPO space.


Infosys, Wipro on the prowl, light up M&A Street

September 2nd, 2014 by Rahul Jain No comments »

Vishal Sikka at the helm of Infosys and Rishad Premji as head of strategy at Wipro scouting to pick up stake in startups focused on disruptive technologies have made investment bankers optimistic that country’s moribund outsourcing sector could see more deals in the coming months. outsourcing29

However, both foreign and domestic bankers believe that the small acquisitions and partnerships would not be enough and a big buy-out has to be done before the rainmakers who help companies merge and raise capital could raise a toast.

“The mood certainly has changed,” said the head of a Mumbai-based investment bank, adding “and changed for the better”. “We have seen Wipro picking stakes in small companies. Infosys too has decided to follow a similar approach. So it’s just a matter of time before one of these make a big buyout.”

Infosys, which last acquired Swiss management consultant Lodestone for $350 million in 2012, has strutted when it comes to buyout during this time, making many believe that change in leadership could help the company shun its conservative approach.

“Certainly, the outlook has changed and we have started getting calls,” said a senior executive from Infosys merger and acquisition team. “We won’t go for making a big ticket deal unless there is absolutely a compelling rationale. (For now) our sweet spot remains $100-250 million.”

Wipro too is adopting a similar approach, with chief executive TK Kurien telling ET last month that the way ahead for the company is having a more “asset light approach”, with a senior executive adding that the company will look to have more buy-outs in $100-200 million space.

For now, both Wipro and Infosys maintain that they will look at partnerships and buyouts in disruptive technologies, including artificial intelligence and big data as they do not want to be saddled with a heavy workforce. Both these companies are looking to scale up their presence in healthcare and retail space and partnership or a buyout with start-focused on these newer technologies could be done in the coming months, according to bankers and company executives.


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