Archive for April, 2010

Genpact Q1 net dips 6%, says GE stays a client

April 30th, 2010

Genpact Ltd, India’s largest business process outsourcing (BPO) company, on Thursday reported a 6% drop in its net profit for the quarter ended March, but asserted that its largest revenue contributor, GE, continues to remain with the firm despite offloading a good part of its holding in the company.

Net profit fell to $28.2 million, or 13 cents a share, from $30 million, or 14 cents a share, a year ago.

Revenues, however, rose 8.4% to $288.2 million.

Net income margin declined to 9.8% from 11.3% in the same period a year ago.

The company recently raised $580 million through secondary offering as investors such as GE, General Atlantic, Oak Hill and Wells Fargo sold 32.2 million shares, or 14.5% of the stock.
GE alone sold 20 million shares, reducing its holding by half to 9%.

Notably, Genpact had started in 1997 as the India-based BPO unit of GE Capital, the financial services business of General Electric (GE). GE spun off Genpact in 2005 but remains its largest client.
Analysts covering the company were concerned that GE, which contributes about 40% to Genpact’s sales, might drastically reduce its business with the firm.

However, the company dismissed the concerns.

“GE continues to stay with us. I know that its share from the total sales is going down each year, but that is all planned. GE sales are exceeding by a big number compared to minimum contributions. I am sure they will continue to remain with us,” Genpact chief operating officer Tiger Tyagarajan said in a conference call.

Genpact recently renegotiated its contract with GE, which extended the minimum revenue commitments by two years, but provided for better pricing for GE. The company expects GE to contribute about 33-35% by end-2010.

Genpact also reaffirmed its guidance for the year, with revenue-growth expectation of 14-17%, to about $1.28-1.31 billion.
Employee attrition rate for the quarter, measured from day one of employment, was 23%, up from 21% in the same period in 2009.
The Gurgaon-based company plans a capital expenditure of 5-5.5% of total sales during 2010.

It has about $341 million in cash and cash equivalents, and is looking for acquisitions and opening of delivery centers across geographies.

Tyagarajan, however, did not provide any detail on any definitive acquisition plan.

Source:http://www.dnaindia.com/money/report_genpact-q1-net-dips-6pct-says-ge-stays-a-client_1377154

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IAOP recognizes freeborders as rising star for IT Outsourcing

April 30th, 2010

Freeborders, Inc., a global provider of consulting, technology and outsourcing solutions to financial services and Internet based businesses, today announced that the International Association of Outsourcing Professionals™ (IAOP™) has ranked Freeborders to the “Rising Stars” category of the 2010 Global Outsourcing 100® list for the 3rd consecutive time. Freeborders achieved high scores for business growth, executive leadership, and industry recognition.

News ImageThe Global Outsourcing 100 is an independently judged, opt-in ranking of the world’s best outsourcing service providers and advisors. Freeborders was named to several industry and region lists, including:

* Best 10 Rising Stars: Overall Revenue Growth
* Best 20 Rising Stars: Financial Services by Industry Focus (Banking Markets)
* Best 20 Rising Stars by Regions Served

“We are honored to be named a Rising Stars in the outsourcing industry by IAOP,” said Jean Cholka, CEO of Freeborders. “The award validates our strategy to focus on the industries and regions where we can provide the deepest industry expertise and technology knowledge for our customers. In the past year, our fastest growing vertical industries were financial services, Internet services and retailing.”
The global industry-leading IAOP ranking evaluates IT outsourcing providers from around the world based on their growth, executive leadership, global presence, customer references, recognition, certifications, and employment.

Source:http://www.prweb.com/releases/freeborders/RisingStar/prweb3918684.htm

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Prahalad: The brains behind the outsourcing boom

April 30th, 2010

Two weeks ago, professor C K Prahalad died after a short illness. If you have never formally studied management or business administration, then you might not have even heard of him, but if you have a job – especially in IT – then you probably know about some of his ideas.

Prahalad was born in India but lectured in corporate strategy at the University of Michigan since the 1970s. He taught management guru Gary Hamel, then a doctoral student, in the 1980s. Originally the pair clashed and disagreed frequently. But they published an article together in the Harvard Business Review in 1990 entitled The Core Competence of the Corporation.

In 1994, this article was developed into a book titled Competing for the Future. The heart of the book focuses on the theory of core competence. This is the idea that a company performs many functions. Some are visible to customers and directly influence the competitive advantage of the firm in the market it operates in, while others are hidden below the surface, such as human resources, IT, finance, marketing and accounts – the functions every firm needs just to keep the lights on.

Core-competence theory advocates that the chief of the company should identify those functions or actions that are actually improving its competitive position: what is it that the organisation is doing that the competition cannot easily copy? Then, once those particular skills are identified, the rest of the company functions should be contracted out. That means outsourced to experts.

For example, if managing your payroll is not going to differentiate you from your main rival then why are you spending time doing it? Every firm has to have a payroll but there are payroll experts out there to take the task off your hands, leaving your company more focused on doing the things that really do make a difference.

It sounds obvious today, doesn’t it? Look around at the IT industry and just about every big services firm is doing technology development, support, maintenance, or operations for clients who don’t consider that managing technology is a core competence of their firm.

Outsourcing, contracting out, or facilities management had all been written about and examined before Prahalad described the theory of core competence, but no one had ever enunciated such a unified theory of how a company should be structured for maximum performance.

I had the pleasure of meeting Prahalad in 2009, when I attended a lecture he gave in Mumbai on one of his other big ideas – the fortune at the bottom of the pyramid. He saw this as a pragmatic method of helping the poorest people in the world by changing the way large companies target them with goods and services.

This humble and softly spoken academic had one major idea that reshaped the way all major companies do business – especially in our sector, technology. His other major idea is gathering momentum and could one day improve life for billions of people. They broke the mould when this academic came into the world.

Source:http://www.silicon.com/technology/it-services/2010/04/29/prahalad-the-brains-behind-the-outsourcing-boom-39745761/

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2009 top print and publishing business process outsourcing vendors, black book survey 2009 results – new market report published

April 30th, 2010

In 2009, the publishing and print BPO client/user survey investigated over 550 contracts held by 1,888 of the top outsourced BPO spending corporations and organizations globally.

Key findings

Key finding: most important customer satisfaction KPIs Customization, interfaces, reliability and deployment are the most important attributes influencing client companies’ satisfaction with their publishing and print BPO providers.

Key finding: BPO vendor satisfaction is highest among US publishers using mature Indian suppliers Strong satisfaction in the offshore segment among US clients surged to 85.9% in 2009, while offshore BPO satisfaction remained strong in 71.8% of all non-US publishing clients.

Source:http://www.officialwire.com/main.php?action=posted_news&rid=137431

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Business process outsourcing – the unique way to gain business momentum

April 29th, 2010

Today, offshore business process outsourcing has emerged as a happening trend. It refers to the process of getting a job done from another agency, which is generally known as offshore outsourcing service provider. Earlier, the concept of process outsourcing wasn’t well recognized by all. But slowly this trend started gaining momentum taking the shape of an industry in certain countries.

Business process outsourcing has become the highly recognizable phenomenon. At the initial stage, small and low grade jobs were outsourced from the United States. Currently, some of the most critical jobs like customer care, IT services and solutions, web design and development services, graphic designing services and others are being outsourced. In fact, every possible business processes are being outsourced these days.

Jobs being outsourced are usually those which need to be done on a daily basis. Today the BPO buyer companies are not doing any tasks on their own. They hire consultant companies to impart training to their new recruits. Even the job of carrying out advertisements is being outsourced from an offshore process outsourcing company.

Outsourcing of business processes has become the most preferred strategy for conducting international businesses of today. It is even considered to be the perfect tool for conducting business activities during the period of economic slowdown. Recession is such a situation when the chances of earning sufficient revenue dwindle dramatically. So it becomes very important to cut down costs and save as much money as possible. Here outsourcing stands as the only means to overcome such horrific situation.

Business process outsourcing offers numerous advantages to the overseas corporations. First of all, it enables the foreign companies to lay focus on their core business processes. There are certain non core processes that can even eat up valuable resources and time and this forms to be a major reason why the overseas clients have now decided to outsource their non core processes from a third party firm or consultancy located in third world countries such as China and India.

Companies that are based in Europe or United States can enjoy huge cost benefit from outsourcing their non core jobs from countries like India, China and Philippines. There is no shortage of skilled and cheap manpower in these countries. Despite the fact that they charge much less for their service India, Philippines are known to maintain quality output as per the international standards. This is a major reason why the phenomenon of outsourcing has become famous in these days.

Today’s BPO firms are offering variety of offshore outsourcing services such as software development services, Telecommunications, IT, insurance, accounting and finance. At present, every possible processes of a business are being outsourced. The sheer joy of getting high work at lower cost drives the overseas corporations to look for more BPO partners in the third world countries. Some of the corporations have even decided to set up their own center in countries offering outsourcing services since this concept has impressed them a lot. It seems clear that the outsourcing industry is growing at a rapid pace and shows enough potential to bloom in future as well.

Source:Today, offshore business process outsourcing has emerged as a happening trend. It refers to the process of getting a job done from another agency, which is generally known as offshore outsourcing service provider. Earlier, the concept of process outsourcing wasn’t well recognized by all. But slowly this trend started gaining momentum taking the shape of an industry in certain countries.

Business process outsourcing has become the highly recognizable phenomenon. At the initial stage, small and low grade jobs were outsourced from the United States. Currently, some of the most critical jobs like customer care, IT services and solutions, web design and development services, graphic designing services and others are being outsourced. In fact, every possible business processes are being outsourced these days.

Jobs being outsourced are usually those which need to be done on a daily basis. Today the BPO buyer companies are not doing any tasks on their own. They hire consultant companies to impart training to their new recruits. Even the job of carrying out advertisements is being outsourced from an offshore process outsourcing company.

Outsourcing of business processes has become the most preferred strategy for conducting international businesses of today. It is even considered to be the perfect tool for conducting business activities during the period of economic slowdown. Recession is such a situation when the chances of earning sufficient revenue dwindle dramatically. So it becomes very important to cut down costs and save as much money as possible. Here outsourcing stands as the only means to overcome such horrific situation.

Business process outsourcing offers numerous advantages to the overseas corporations. First of all, it enables the foreign companies to lay focus on their core business processes. There are certain non core processes that can even eat up valuable resources and time and this forms to be a major reason why the overseas clients have now decided to outsource their non core processes from a third party firm or consultancy located in third world countries such as China and India.

Companies that are based in Europe or United States can enjoy huge cost benefit from outsourcing their non core jobs from countries like India, China and Philippines. There is no shortage of skilled and cheap manpower in these countries. Despite the fact that they charge much less for their service India, Philippines are known to maintain quality output as per the international standards. This is a major reason why the phenomenon of outsourcing has become famous in these days.

Today’s BPO firms are offering variety of offshore outsourcing services such as software development services, Telecommunications, IT, insurance, accounting and finance. At present, every possible processes of a business are being outsourced. The sheer joy of getting high work at lower cost drives the overseas corporations to look for more BPO partners in the third world countries. Some of the corporations have even decided to set up their own center in countries offering outsourcing services since this concept has impressed them a lot. It seems clear that the outsourcing industry is growing at a rapid pace and shows enough potential to bloom in future as well.

Source:http://aprilbowser.lavendrama.com/2010/04/29/business-process-outsourcing-the-unique-way-to-gain-business-momentum/

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The cost of accounting outsourcing

April 29th, 2010

The cost of accounting outsourcing like swansea accountants is quite low compared to the savings the company will incur. Companies no longer need to hire in-house accountants like swansea accountants. They no longer need an accounting department to maintain the books of the company. And so training is no longer needed as well. Outsourcing companies do the work for their clients. They will maintain the books and they will even make each transaction visible to everyone as they are done in real time. There will be no delays in reporting. Most software interfaces are easy to follow. And they can customize it to facilitate a better and a smoother integration. They will do the work as the company needs them to. And they will produce outputs as they are instructed.

Source:http://www.marketingforvictory.com/business/the-cost-of-accounting-outsourcing/

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The growing popularity of outsourcing IT

April 29th, 2010

Nowadays, you will hear outsourcing a lot of times in the business world. Why? This is because outsourcing can provide quality jobs for companies at a very fast rate and at a very cheap price. This is the reason why many companies in the United States, Canada, and as well as in European countries are now considering to outsource some of their IT jobs.

Outsourcing is a very large industry in developing countries, such as India, Philippines, and China. Outsourcing creates jobs for these countries for their talented and qualified IT professionals.

Today, software companies are required to produce a lot of different kinds of software product for their clients. The products they produce are usually for large organizations, such as financial institutions, large corporate houses, and government bodies. The software IT companies produce are used by these companies or organizations for their everyday work and for business solutions.

However, with more and more demand for these kinds of software, you have to realize that it will require IT software companies a lot of investment capital in infrastructure and as well as large manpower to work on these software.

The IT industry is a very competitive industry where you want your IT company to be the best in the industry and the number one producer of software for large organizations and companies. But because of the huge amount of investment you need to build your company and also because of the increasing numbers of IT companies worldwide, it will be difficult for your company to grow.

However, there is one way you can let your company be one of the best in the industry and allow it to grow at a very low price. Today, outsourcing is one of the best business solutions in your IT company. You will now be able to save a lot of money if you consider outsourcing. Developing countries, such as China, Philippines, and India have a lot of qualified IT professionals working in an outsourcing company. You can hire a particular IT outsourcing company in these developing countries in order to let your company grow.

First of all, outsourcing your IT jobs will enable you to save a lot of money on infrastructure and manpower because the outsourcing company will be able to provide both. They have talented and skilled IT professionals qualified to do your company’s job. Secondly, outsourcing can also let your company’s resources focus more on the company’s development and growth. You will be able to set aside these jobs to outsourcing companies and concentrate on more important factors in your company. And lastly, you will be getting quality work as outsourcing companies in these developing countries have the required skills to do the job.

Most of the jobs that IT companies in Europe, Unites States, and Canada outsource are creating software in .Net, database solutions, Java/J2EE, smartcard solution and also in wireless application developments. Help desk, and call centers are also one of the most popular jobs outsourced by large companies in the United States.

In order to get the best company to outsource your company’s project, you have to consider that the company you will hire should be able to provide good quality work in order to get your money’s worth. The country that the company is in should also have favorable government policies and should be willing to invest in the IT and outsourcing industry.

This is why outsourcing is one of the hottest trends in businesses today.

Source:http://www.softwareshop.net/the-growing-popularity-of-outsourcing-it/

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