Archive for October, 2009

Medical records sale scandal is ‘data, not outsourcing issue’

October 20th, 2009

The National Outsourcing Association has defended the industry following revelations on ITV’s Tonight programme about the sale of UK medical records in India.

The programme showed how easy it was to buy private medical data from criminals in India.

Reporter Chris Rogers was shown getting a sample of 100 medical records was offered a further 10,000 if he went to India. The programme found data could be bought for £4 per individual record. All the data identified in the programme was from private medical organisations, not the NHS.

Responding to the revelations, Mark Kobayashi Hillary, NOA Offshoring Director said, “It is useful for programmes like Tonight to be exposing these crimes, but not to disparage a largely trusted and successful outsourcing and offshoring industry.

“It’s important that this is understood to be a data crime, not an offshoring crime.”

Kobayashi Hillary said data security was not dependent on location. “Such data theft could occur just as easily in Aberdeen as in Mumbai. The expose shows there are still some contact/processing centres behind the times which are letting the industry down and fuelling bad perceptions.”

The NAO said the expose highlights the importance of the users of outsourcing employing “credible, reputable and mature suppliers”.

Good suppliers now have very strict policies to avoid any data theft, said Kobayashi Hillary. “These include no USB or external email access, no paper and pens allowed; basically all avenues for data removal are taken away.”

The NAO also called for more transparency about where data is processed. “Information theft is a fact of life in this modern age, but if we demand transparency from our suppliers it can at least be reduced,” said Kobayashi Hillary.

Source : http://www.computerworlduk.com/management/security/data-control/news/index.cfm?newsid=17187

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Siemens IT wins German publishing group outsourcing deal

October 20th, 2009

Siemens IT Solutions and Services has won a six-year outsourcing contract from Germany-based publishing group Ernst Klett to provide IT infrastructure operation services. Financial terms of the deal were not disclosed.

Under the contract, Siemens will operate IT services for the service desk, networks, desktop services, and take over server services. It will operate the IT infrastructure of Klett Systeme und Service and will analyze existing processes, software and IT networks to generate an appropriate implementation program.

Additionally, Siemens’ outsourcing services for Klett Verlag includes server services, desktop services, LAN/WAN services and operation of the IT service desk. It will implement business processes and service tools. The system management will provide server monitoring
, reporting and alarm services.

The deal follows the company’s five-year E19m ($27m) outsourcing contract in August from industrial services provider Man Ferrostaal to provide IT infrastructure services. In July, the Siemens consortium won a seven-year E100m ($141.36m) contract from Eurocontrol to provide IT services, operational management and service desk, as well as management of networks, servers, storage systems and business applications.

Source: http://www.tradingmarkets.com/.site/news/Stock%20News/2588854/

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Philippines BPO Industry Expects Slower Growth In 2009

October 20th, 2009

The Philippine business process outsourcing industry’s target to generate $12 billion in annual revenue will be pushed to 2011 as a result of the global economic downturn, a senior industry executive said Tuesday.

“We made a little adjustment to our growth target. We now expect 20%-23% growth this year, from 26% to 30% (as previously forecast). So industry revenue would be around $7.3 billion-$7.5 billion,” said Oscar Sanez, president and chief executive of the Business Processing Association of the Philippines.

“We will be back to 26% (growth rate) next year, then hitting $12 billion in revenue by 2011 instead of 2010,” Sanez told reporters on the sidelines of the two-day International Outsourcing Summit in Manila.

But a weaker U.S. dollar and the large labor overhang in the U.S.–source of around 60% of offshore jobs–pose the biggest risks to the future growth of the BPO industry not just in the Philippines but elsewhere in the world, said Peter Schmitt, chief executive and chairman of DPC Data Inc.

Schmitt noted a Rutgers University estimate that the U.S. jobs deficit should reach 9.4 million by the end of this year. Factoring in annual employment growth of 920,000 in the private sector, the deficit will only disappear by August 2017, Schmitt said. “It’s a terrible labor overhang,” he said, noting this could stoke some form of protectionism in the U.S.

He said the continued depreciation of the U.S. dollar could also undermine the attractiveness of offshoring jobs as well as undermine profitability of BPO companies around the world.

On the bright side, Schmitt said he estimates that only 1 million of the 30 million “exportable” jobs from the U.S. are now offshore.

Ganesh Natarajan, vice chairman and chief executive of Zensar Technologies of India, said the global BPO industry, now worth around $600 billion, could grow to $1.2 trillion by 2020. The Philippines could secure around 10% of that future market if its industry tracks the growth experienced by its Indian counterpart over the last two decades. India’s BPO industry is now worth $71 billion compared with only $70 million during its fledgling years when it served mainly the domestic market, he said.

Source: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200910200546dowjonesdjonline000174&title=philippines-bpo-industry-expects-slower-growth-in-2009

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SEI doubles private equity outsourcing business

October 20th, 2009

SEI (Nasdaq: SEIC) today announced that the company’s private equity business has more than doubled in the past 18 months, as more firms adopt operational outsourcing to focus resources on core business functions. New clients include private equity funds from Hamilton Lane and Garrison Capital Management, among others. SEI’s private equity business now totals more than 200 funds and more than 15 billion pounds sterling.

In recent years outsourcing has gained traction in the private equity sector as closed-ended products become more prevalent and managers face pressure from investors demanding independent administration. In addition, the challenges during the market downturn have led managers to focus even more on their core areas of expertise and rely on outsourcing non-core functions as a way to gain an institutional-quality operating environment.

SEI’s private equity fund services include accounting, treasury, investor servicing and performance reporting for both general partners (GPs) and limited partners (LPs). In addition, SEI’s innovative technology, including workflow and document management capabilities, has been a key competitive distinction as managers seek ways to increase transparency, standardisation and automation.

“As more private equity managers look to outsource, they are seeking out experienced partners that have an institutional-quality operation and reputation,” said Jim Cass, Vice President, SEI’s Investment Manager Services division. “We’ve continued to invest in technology applications that really set us apart. This growth momentum is a testament to our industry-leading solution and the value we bring to managers.”

Source: http://www.albawaba.com/en/countries/UAE/255661

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Outsourcing option considered for Library and Technology Services

October 20th, 2009

Library and Technology Service’s recent strategic plan for 2010 to 2014, a review of the costs and values of the various services offered by LTS, mentions further outsourcing as a way to reduce costs, although members of the LTS senior management team have since said that this possibility is unlikely.

LTS service that may be outsourced include Computer Help, Database Administration and Student and Faculty Administrative Systems Support, as stated in the report.

LTS has already outsourced jobs including book cataloguing, building wiring and book purchasing to the cable operator Comcast. These types of jobs involve routine processing work, whereas LTS has reserved its more technical roles for in-house staff. In 2000, for example, LTS used outsourced labor to deliver cable television to student dorm rooms, according to Hanson.

However, Vice President and Vice Provost for Libraries and Information Technology Perry Hanson and Chief University Librarian Susan Wawrzaszek believe it is unlikely that any more jobs in LTS will be outsourced.

“There’s no guarantee that outsourcing saves money,” said Hanson.

“It’s an issue of looking at the most cost-effective way to provide services to the University, so we’re looking to see whether we really need to own the service or whether outsourcing makes more sense,” said Wawrzaszek.

LTS releases a strategic plan every five years. The senior management team, including Hanson and Wawrzaszek, began reviewing finances in January when it learned of new budget constraints. It presented a first draft of the document in May to the LTS Advisory Committee, made up of faculty, staff and student representatives. In June, they submitted a final version to the senior administration, according to Hanson.

The plan, which was released in June, takes into account the current financial crisis and the University’s increased budget constraints. The senior management team intended to cut costs by making the recommendations included in the plan.

During two phases of reorganization, one in January and another in June, the senior management team at LTS reviewed each “core service” offered.

The core services available through LTS include Computer Help and Library Operations.

Each evaluation included a cost-risk-benefit summary for its respective services.

The plan’s authors directly addressed their concerns over budgetary constraints.

The plan states, “We shall seek all and any ways of reducing operational costs.”

In constructing the plan, LTS also took into account recent developments in computing and information availability, according to Hanson. The challenge LTS faces, the plan states, “is to determine the most cost-effective way of providing technology resources without compromising security of data and information or stifling creative use of new technologies.”

Also included in the plan is a summary of reductions LTS has made since 2008, including a 14-percent reduction in operating expenditures and a 16-percent reduction in staff.

LTS currently employs 98 people, as opposed to 117 last July, according to the plan. These job losses include employees who quit or were laid off when the University reduced its staff last January.

“We feel fairly secure [about our positions in LTS], but one never knows,” said LTS employee Ani Hovsepian.

“[Staff reductions] are certainly an unpleasant thing; you worry about your colleagues and feel bad for them, but you feel lucky that you’ve stayed on.”

The next step for LTS is to meet with its advisory committee again to review the plan post-publication. “This is a strategic planning process, so it’s ongoing,” said Hanson. “By presenting this plan, we are saying what we think is important to Brandeis.”

“This plan is meant to be a conversation, a transparent process with community,” said Wawrzaszek.

Source: http://media.www.thejusticeonline.com/media/storage/paper573/news/2009/10/20/News/Outsourcing.Option.Considered.For.Library.And.Technology.Services-3807498.shtml

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Outsourcing firm readies to hire, expand

October 20th, 2009

A London-based company started by the former head of Arthur Andersen’s outsourcing business is setting up its U.S. headquarters at the O’Hara Plaza on Higgins Road in Chicago, and intends to hire and expand rapidly.

The outsourcing company, called Xchanging, is the largest processor of insurance claims in the U.K., and it sees an opportunity to get involved in this country’s health care reform, as well as in fields where it handles other companies’ back-office work, such as banking, procurement and human resources.

Xchanging consolidated several offices and moved 15 of its European managers here, bringing the Chicago office at 8755 W. Higgins Rd. to 150 employees.

“We’re looking to take it as high as possible as fast as possible,” with job growth in everything from clerical staff to experts in bank trades and insurance claims settlements, said founder and CEO David Andrews.

The company chose Chicago as its U.S. headquarters, where it has set up a teaching center and a “claims office of the future,” because of Chicago’s infrastructure, dedication to the arts, nightlife, and livability, Andrews said.

“I used to come to Chicago for training and lived there for a couple of months. I liked Andy’s Bar, the nightlife and the whole social scene and infrastructure, said Andrews, whose last position at Arthur Andersen was managing partner, West Europe. He left Andersen in 1999, three years before its collapse.

Xchanging, which sets up 50-50 partnerships with its clients, will also set up a processing center in the Midwest, but its location hasn’t been decided.

Source: http://www.suntimes.com/business/1834332,CST-FIN-XCHANGING20.article

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RP again cited as top outsourcing site

October 20th, 2009

The Philippines was again named the world’s top outsourcing
destination by the National Outsourcing Association (NOA), an industry body based in the United Kingdom.

Held last October 15 in London, the annual NOA awards also awarded Cebu City as this year’s “Best Emerging Offshoring City” while Manila was ranked third among top global outsourcing cities, behind two cities in India.

NOA is an outsourcing trade association that advocates best practices in outsourcing and recognizes excellence in the industry. The Philippines earned the same award in 2007.

Commission on Information and Communications Technology (CICT) chair Ray Anthony Roxas-Chua III believes this recent recognition boosts the country’s claim of being a close second to outsourcing powerhouse India.

The country’s business process outsourcing (BPO) industry last year generated $6.1 billion in export revenues and employed about 400,000 workers, according to latest figures from local industry body Business Processing Association of the Philippines (BPAP).

BPAP chief executive Oscar Sanez said the industry continues to grow between 30-40 percent and remains “unscathed from the global recession”. The industry also continues to operate despite the recent disasters brought about tropical storms, which affected Metro Manila including areas that have outsourcing operations.

In the next two years, Sanez said the industry continue to grow at a rate of 23 to 26 percent and employ about a million Filipinos.

The BPAP and CICT will spearhead a Philippine delegation in attending two outsourcing summits in the UK this November.

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