Archive for October, 2009

Ghana to be re-branded business outsourcing destination

October 29th, 2009

The Ministry of Communications, has hired a US-based Business Processes Outsourcing (BPO) advisory company, Avasant, to re-brand and market Ghana as a preferred BPO destination.Mr. Alhassan Umar, Executive Secretary of the Ministry’s Information Technology Enabled Services (ITES) Secretariat, disclosed this to GNA in Accra on Tuesday.He said: “Avasant is on a two year contract to gather data on the BPO market in the country and design promotional tools to market Ghana’s BPO potential both here and abroad.”

Mr Umar explained that the BPO industry comprises companies from which other banks, insurance companies, telecommunication operators and governments outsource their back office jobs such as customer care call centre, business enquiries, data entry and other customer assistance services.

He said the BPO industry generated some US$45 million into Ghana’s economy yearly and in the short term the country was targeting between 60 and 70 million dollars a year and one billion dollars per annum in the long term.

Mr Umar said the global leader in the BPO industry has more than two million workers and was generating billions of dollars as revenue per annum.

“We hope to attract at least 10 major BPO companies from Europe and US to Ghana and we also want to get more local entities like banks and insurance companies, as well as companies from within the sub-region to transfer their back office jobs to BPOs in Ghana,” he said.

Mr Umar said ITES had developed a special academic programme to train Ghanaians in BPO skills at the polytechnics and universities to produce enough personnel to engender investor confidence in the country’s BPO market.

Mr. Muralidhar Thata, Avasant Country Manager for Ghana, said the country’s advantage as a potential BPO destination depended on the availability of huge redundant fibre optic cables (SAT-3, Glo one and Main one), government’s initiative in building ICT parks, political stability, smooth business registration system, tax incentives and the good attitude of BPO staff towards customers.

“We also find many educated Ghanaians and lots of French-speaking folks waiting to be absorbed into the job market – all these people have the potential to be retrained to work as BPO staff in Ghana,” he said.

Mr. Thata said Ghana had huge potentials for establishing French call centres, to attract BPO jobs from French speaking countries, potentials in graphic design, business enquiry and legal processes outsourcing among others.

He noted that challenges currently facing the country were lack of visibility, lack of public awareness about the BPO potential and lack of cohesion between the various sectors of the economy in the area of ICT.

“In the second phase of our work, Avasant will facilitate a series of workshops in Ghana to focus on how to maximize the potentials and deal with the challenges and promote the E-Ghana brand,”Mr Thata said.

The contract awarded to Avasant forms part of the World Bank funded E-Ghana project, which seeks to establish electronic governance, electronic voting and other such systems in Ghana.

The deal was sealed in August this year, on the heels of President Barack Obama’s visit to Ghana, and would last till November 2011.

But Avasant started actual work from October 12, 2009 towards developing a strategy report and a road map for the re-branding and promotion of the E-Ghana brand first to companies in Ghana, other West African countries, East Asia, Europe and the US.

In the first phase, which spans over the next two to three weeks, Avasant would come up with a mixed-bag of promotional packages that would include websites, magazines, flyers and postcards among others to promote Ghana’s BPO potentials.

Source:http://www.ghananewsagency.org/s_economics/r_8946/

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Indian IT companies look to LatAm for buys

October 29th, 2009

India’s top outsourcing companies are now exploring acquisition opportunities in the Latin American countries, as more
customers demand nearshore delivery capabilities for physical proximity and ease of managing an outsourcing relationship.
Smaller service providers in Brazil, Argentina and Mexico such as Globant, which counts Adidas, LinkedIn and Citi among its top customers and has around $100 million in revenues, are increasingly being approached by some Indian tech firms, officials told ET on condition of anonymity.

“Even as we hire more locals, we continue to look at focused nearshore companies such as Globant for strategic alliances,” said a top executive of an Indian tech firm. He did not wish to be quoted because his company does not want to disclose its acquisition plans before they materialise. While customers such as GE and Citi continue to send more IT work to offshore locations such as India, some customers and vendors are discovering that nearshore locations in Latin America are offering almost similar cost advantages for back-office projects apart from better proximity to customers.

Customers such as HNI Corp, one of the biggest American office furniture manufacturers, recently chose a nearshore partner in Brazil instead of an outsourcing vendor from India because it was not comfortable with the time zone difference.

“While there is no doubt about Indian companies’ ability to serve customers across time zones, some customers still prefer to work with a vendor located nearer,” said an outsourcing consultant familiar with HNI’s decision.

For Indian companies seeking to serve customers locally and from nearby locations, outsourcing companies in Brazil, Mexico and Argentina offer lucrative M&A opportunities.

Source:http://economictimes.indiatimes.com/articleshow/5174902.cms

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Outsourcing Event Netherlands – Outsourcing & Setting up a ODC in India

October 29th, 2009

01 Synergy – The Indian Outsourcing Experts are organizing personal presentation(s) on how to start Outsourcing & setting up a Offshore Development Center (ODC) in Inda.

Starts: Friday November 06, 2009, 04:00PM
Ends: Friday November 06, 2009, 07:00PM
Event Type: Training/Seminar
Location:
01 Synergy
Kromstraat 1
Delft, ZUID-HOLLAND 2611 NL
Price: FREE

Website: http://www.01synergy.nl

Industry: computer software

Keywords: Software, Outsourcing, India, ODC, Offshore Development Center, Offshore, BPO

Intended For: CTO, CEO, COO, IT Consultants

Source: http://www.linkedin.com/osview/canvas?_ch_page_id=1&_ch_panel_id=1&_ch_app_id=30&_applicationId=2000&appParams=%7B%22referrer%22%3A%22events%22%2C%22go_to%22%3A%22events%2F155230%22%7D&_ownerId=2911511&completeUrlHash=cr9x

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Ghana to be re-branded business outsourcing destination

October 29th, 2009

he Ministry of Communications, has hired a US-based Business Processes Outsourcing (BPO) advisory company, Avasant, to re-brand and market Ghana as a preferred BPO destination.

Mr. Alhassan Umar, Executive Secretary of the Ministry’s Information Technology Enabled Services (ITES) Secretariat, disclosed this to GNA in Accra on Tuesday.

He said: “Avasant is on a two year contract to gather data on the BPO market in the country and design promotional tools to market Ghana’s BPO potential both here and abroad.”

Mr Umar explained that the BPO industry comprises companies from which other banks, insurance companies, telecommunication operators and governments outsource their back office jobs such as customer care call centre, business enquiries, data entry and other customer assistance services.

He said the BPO industry generated some US$45 million into Ghana’s economy yearly and in the short term the country was targeting between 60 and 70 million dollars a year and one billion dollars per annum in the long term.

Mr Umar said the global leader in the BPO industry has more than two million workers and was generating billions of dollars as revenue per annum.

“We hope to attract at least 10 major BPO companies from Europe and US to Ghana and we also want to get more local entities like banks and insurance companies, as well as companies from within the sub-region to transfer their back office jobs to BPOs in Ghana,” he said.

Mr Umar said ITES had developed a special academic programme to train Ghanaians in BPO skills at the polytechnics and universities to produce enough personnel to engender investor confidence in the country’s BPO market.

Mr. Muralidhar Thata, Avasant Country Manager for Ghana, said the country’s advantage as a potential BPO destination depended on the availability of huge redundant fibre optic cables (SAT-3, Glo one and Main one), government’s initiative in building ICT parks, political stability, smooth business registration system, tax incentives and the good attitude of BPO staff towards customers.

“We also find many educated Ghanaians and lots of French-speaking folks waiting to be absorbed into the job market – all these people have the potential to be retrained to work as BPO staff in Ghana,” he said.

Mr. Thata said Ghana had huge potentials for establishing French call centres, to attract BPO jobs from French speaking countries, potentials in graphic design, business enquiry and legal processes outsourcing among others.

He noted that challenges currently facing the country were lack of visibility, lack of public awareness about the BPO potential and lack of cohesion between the various sectors of the economy in the area of ICT.

“In the second phase of our work, Avasant will facilitate a series of workshops in Ghana to focus on how to maximize the potentials and deal with the challenges and promote the E-Ghana brand,”Mr Thata said.

The contract awarded to Avasant forms part of the World Bank funded E-Ghana project, which seeks to establish electronic governance, electronic voting and other such systems in Ghana.

The deal was sealed in August this year, on the heels of President Barack Obama’s visit to Ghana, and would last till November 2011.

But Avasant started actual work from October 12, 2009 towards developing a strategy report and a road map for the re-branding and promotion of the E-Ghana brand first to companies in Ghana, other West African countries, East Asia, Europe and the US.

In the first phase, which spans over the next two to three weeks, Avasant would come up with a mixed-bag of promotional packages that would include websites, magazines, flyers and postcards among others to promote Ghana’s BPO potentials.

Source: http://www.ghananewsagency.org/s_economics/r_8946/

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Outsourcing looms large: CPA Global in talks with potential investors

October 28th, 2009

CPA Global is in talks with potential investors who are keen to take an equity stake in the legal outsourcing company. LDC, the private equity unit of Lloyd’s, is rumoured to have offered to purchase the company for £400m.

A spokesman for CPA Global declined to comment on market speculation but confirmed that the company is currently in discussion with a number of potential investors. Shareholders are, no doubt, thrilled with the strong interest from the investment market but the potential for growth in the legal outsourcing market spells trouble for law firms.

Earlier this year, Rio Tinto made the decision to engage the services of CPA Global and outsource its lower-end legal work to 12 low-cost lawyers in India. The deal resulted in significant cost savings for Rio Tinto and outsourcing low-end legal work enabled its in-house counsel to work on more complex and challenging legal matters which may otherwise have been sent to external legal counsel at significant cost.

Source:http://asia.legalbusinessonline.com/news/breaking-news/outsourcing-looms-large-cpa-global-in-talks-with-potential-investors/38196

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Slower pace, lower wages leave ‘rural offshoring’ a niche

October 28th, 2009

Atlanta-based Xpanxion, LLC began as an offshore software development company over a decade ago, but in 2006 it opened a facility in Kearney, Neb. Why Nebraska? The reasons include a cost of living and wages that are lower than in other parts of the country.

Xpanxion has about 300 employees, with about 180 in Pune, India. Its Kearney facility has about 30 workers and is expanding. Its employees provide quality assurance directly to U.S. customers, who don’t have to call overseas to collaborate. Working at a distance from major metro centers also helps reduce customer costs. Hiring a quality assurance leader in Atlanta could cost as much $95,000 to $115,000 a year; In Kearney, the pay would be closer to $60,000 or $70,000.

Eric Trettle, an Xpanxion vice president who heads the Kearney office, said Nebraska was picked because the state is “quietly tech savvy” and has good telecommunications infrastructure for businesses. Kearney was particular attractive because of the nearby branch of the University of Nebraska, which is working with the company on course development. For employees, the location offers a slower pace of life in a town of just under 30,000 people, he said.

But what’s often called “rural offshoring” is not expected to make much of a dent in the overall push to offshore outsourcing. In India, the salary for a quality assurance leader might be $20,000 — at most — said Anand Ramesh, research director at Everest Group in Dallas.

Ramesh believes rural outsourcing will remain a small portion of the overall offshore market, providing direct customer support where needed — as in the case of Xpanxion — and for work that requires understanding of the cultural context or knowledge of a specific product that may not be widely available overseas.

Other companies, such as Perot Systems Corp., have built operations in rural areas , such as in Lincoln, Neb., as part of low cost strategy. But Perot has also have shifted work overseas, as well.

Another model that can cut costs is homeshoring. It’s used used by Arise Virtual Solutions Inc., a Miramar, Fla. company that has grown as companies bring back work from overseas or shift it from their own centers to Arise’s work-at-home or homeshoring model, said CEO Angie Selden. Arise has 9,000 people who provide call center services. That’s up from about 5,000 two years ago, said Angie Selden, its CEO.

Arise hires independent contractors to provide call center services, and requires people to incorporate and pay for their training. About 20% of the jobs are technical support jobs, such as DSL support, and may pay $12 to $16 an hour.

Andrew Kokes, a vice president at Sitel Corp, a business process outsourcing company in Nashville, Tenn., said that when the costs associated with salaries and infrastructure to support call centers, including offices, are added up, work can still be done more cheaply overseas. According to Kokes, the 25% to 40% cost difference remains a powerful incentive for offshoring.

Sitel employs 60,000 people worldwide, with 12,000 based in the U.S.

Kokes said he sees no evidence that there’s any return of jobs from overseas back into the U.S. “I would say that there is zero reversal and it’s growing (offshore) faster than ever,” he said.

Source:http://news.idg.no/cw/art.cfm?id=9AF3E269-1A64-67EA-E4671923D426A136

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BAA cites outsourcing in plans to reduce losses

October 28th, 2009

BAA has reported a large loss as the airport operator is forced to sell its Gatwick airport in Sussex, but has stated it will continue to focus on using IT to reduce costs across the company.

BAA has also been hit by falling passenger numbers as the credit crunch has reduced the amount of flying, especially amongst customers using the low cost airlines like Ryanair, which flies from Stansted, a BAA airport in Essex. BAA reported that passenger numbers at its flagship airport Heathrow were down 2.3 per cent, whilst up for sale Gatwick has seen passenger numbers deplete by 7.2 per cent and Stansted is most heavily hit with a drop of 12 per cent.

BAA announced today a pre-tax loss of £784.7 million for the first nine months of 2009. For the same period in 2008 it had losses of £519m. BAA says the increase in losses is due to £225m it has lost in the sale of Gatwick.

Last December the Competition Commission told BAA, which is Spanish owned, to sell three airports, in particular Gatwick, Stansted and Edinburgh.

CIO at BAA Philip Langsdale has been an early adopter of Windows 7. BAA said today in its results that it will “continue to identify opportunities to reduce costs” and listed IT outsourcing as a prime target for this strategy.

Source:http://www.cio.co.uk/news/3205019/baa-cites-outsourcing-in-plans-to-reduce-losses/

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