Archive for October, 2010

70% of businesses record supply chain disruptions in 2010

October 30th, 2010

The research, which covered 35 countries, looked into the impacts of the supply chain on business continuity.

It showed that while awareness of risks in the supply chain is increasing, businesses remain exposed to high levels of risk.

Adverse weather conditions were found to be the main cause of disruption.

Unplanned IT and telecommunication outages was the second most likely disruption, according to 35 percent of those surveyed, up from 20 percent last year.

The failure of service provision by outsourcers was identified as the third likely disruption. The research found that outsourcing, in IT and manufacturing particularly, often reduces cost benefits through greater exposure to supply chain disruption.

As many as 20 percent of the businesses surveyed went so far as to say that their brand or reputation had suffered damage due to supply chain disruptions.

In fact, outsourcing was continually identified by organizations as having disrupted the supply chain. Those businesses that had shifted production overseas to low cost countries were more likely to be on the receiving end of disruptions. In this instance, transport networks and supplier insolvency were the main reasons for interruptions in the supply chain.

Source:http://www.supplychaindigital.com/tags/bci/70-businesses-record-supply-chain-disruptions-2010

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BPO firm offers 4,000 new jobs in Manila, Baguio

October 30th, 2010

Business process outsourcing firm Sitel has opened 4,000 new jobs in its Manila and Baguio sites to support additional business from existing clients and the requirements of new customers.

In a statement issued Friday, Sitel recruitment director Joan Laquindanum said the company secured new clients just this year and, at the same time, many of its existing customers also expanded the services that they outsourced to the company.

This prompted Sitel to open new positions, as many as 4,000 in one go, just to support the new client requirements, she said.

Recognizing the fierce competition for BPO talents, she said Sitel provided “attractive compensation and benefits packages” to its employees, even including in-house pharmacies where medicine and supplements could be ordered on a noncash basis.

“Our associates enjoy generous leave entitlements, health, life, bereavement and retirement insurance plans. For example, our bereavement benefits are extended to all family members of associates, considered the first in the industry. As we continue to grow, giving only the best to our associates is a welcome challenge for Sitel,” she said.

According to the Business Processing Association of the Philippines’ “IT-BPO Road Map 2011-2016: Driving Global Leadership,” a $20-billion industry could be achieved by 2016 with continued concerted industry effort and strong government support. By then, the industry should employ as many as 900,000 individuals.

With strong public-private partnerships, the road map showed that the industry had the potential to generate revenue of as much as $25 billion and employment for as many as 1.3 million people.

Laquindanum said the 4,000 new jobs that Sitel was now offering would be followed by even more job openings in the future as the company also planned to further expand its operations in the country.

Sitel has 11 sites in the Philippines that provide services such as acquisition and sales, back-office, collections, customer care and technical support.

The Philippine sites serve customers in North America, the United Kingdom, Australia and New Zealand, and support English, Mandarin, Cantonese and Spanish languages.

Source:http://business.inquirer.net/money/topstories/view/20101029-300498/BPO-firm-offers-4000-new-jobs-in-Manila-Baguio

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Government to spend $20 billion on IT in five years

October 30th, 2010

Sam Pitroda, the prime minister’s advisor on public information infrastructure and innovations, said India is likely to end up spending around $20 billion on the current overhaul of its IT infrastructure.

The estimate by Pitroda, who has a unique perspective of government’s IT-related expenditure due to his unique position at the centre, is the first estimation of the quantum of investment that is going into different government-funded IT related projects.

It is also higher than the $8.2 billion estimate given by the government for the various ‘digitisation’ projects currently underway at its various ministries and bodies.

“We have 15,000 people working on government software, at the central level,” Pitroda said, speaking at this year’s PanIIT conference in Delhi. Pitroda said investments into IT, at the current scale, is unprecedented in the country and rare even when compared to other countries.

“We are putting up national knowledge networks, connecting panchayats, creating e-goverance facilities, software, UID (unique identification number), GIS (geospatial information system), applications. When we put all this together we would probably spend $20 billion over the next five years on IT infrastructure,” he said.

Pitroda added that the government is currently working on ‘lighting up’ the lakhs of kilometres of unused fibre-optic cable lying in the country to bring high-speed connectivity to even small villages.

Pitroda, an IITian who made his fortune in the US in 60s and 70s, urged Indians to look at the outsourcing issue in the right perspective.

“I was recently in Detroit. When you drive around, you see all these homes boarded up. It is a depressing feeling, because lots of jobs have been lost all of a sudden. As a result, everyone’s focus in the US is on job creation,” he said, when asked how India should react to Obama’s anti-outsourcing stance.

That said, he added, trying to turn back the clock by bringing manufacturing jobs to the US was not the right way to go about correcting the situation.

“You have got to think forward and not backward. It’s not about going back to what it was. It’s about creating a new future,” he said, urging the US administration to think of new ways to create jobs in the new global situation.

Finally, he said, outsourcing is not going to be killed off or saved by US government actions, but by business imperatives, and India does not have anything to worry as long as business fundamentals favour outsourcing.

“If it makes business sense to them (companies), they will do it. If it doesn’t, they won’t. It’s that simple,” he pointed out.

Source:http://www.dnaindia.com/money/report_government-to-spend-20-billion-on-it-in-five-years_1459663

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Global outsourcing industry grows 20%

October 30th, 2010

On the back of revival in the outsourcing of IT services, the growth in the global outsourcing industry stood at 20% in the quarter ended September compared to the same quarter last year. This is quite in contrast to the preceding April-June quarter when the growth was led by the BPO services.

According to the latest report by the global management consulting firm Everest Group, the July-September quarter experienced a 89% increase in the annual contact value (ACV) in IT services and a 50% decline in the ACV of BPO deals compared to the same quarter a year ago.

“The reasons behind the growth in ITO is the increase in discretionary spending by companies. This kind of spending automatically influences investment in application development and system integration. There was slowness in the discretionary spending in the first half of the year, but this pick up is expected to continue till the next two quarters and the whole of FY 2011,” said Amneet Singh, vice-president, Everest Group.

Quite in contrast the April-June quarter had witnessed a 33% increase in the average contact value (ACV) in the BPO segment and a marginal decline in the contract values of ITO on a yearly basis.

Analysing India’s share in global outsourcing, the report observed that the Indian buyers constitute 5% of the total transactions globally. The Indian service providers cater to 60% of the global IT market and 35-40% of the BPO segment.

The overall value in deals increased from $2.3 billion to $3.4 billion on a year-on-year basis. Even on a sequential basis, the IT services signified 3% growth in the ACV compared to the April- June quarter, whereas the contract value of back office declined on a marginal basis.

Source:http://www.financialexpress.com/news/Global-outsourcing-industry-grows-20-/704602/

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Attracting Outsourcing

October 30th, 2010

Business process outsourcing (BPO) services have been growing steadily in Poland for the last couple of years. Today Poland, though still seen as a market with untapped potential, is home to more than 370 BPO and Shared Service Centers operating and expanding across the country. It is estimated that by the end of this year about 60,000-70,000 people will be employed in this sector.

Major global players are already active in BPO and R&D centers in Poland. They include IBM, Accenture, GE, HP, Microsoft, Siemens, UPS, JP Morgan Chase, CapGemini, Unilever, Thomson Reuters, Motorola, Google, and Samsung.

A delegation of officials from Poland’s southern Silesia province made a trip to New York to promote Poland and the Silesia region from Oct. 12 to 14. The delegation, aided by officials from the Polish consulate in New York, were working to convince U.S. businesses and potential investors to consider Poland as a valuable business partner.

The delegation was assisted by Michał Urbankowski from the Trade and Investment Section of the Polish consulate in New York, and Wanda Łopuch, president of the Global Sourcing Council, a nonprofit organization for people and organizations with an interest in the social and economic effects of outsourcing.

The delegation took part in the Global Outsourcing Conference prepared by the Outsourcing Institute, a U.S.-based organization that brings together professionals dedicated to outsourcing. The event was broadcast via the internet to 12,000 venues around the world, and was covered by The New York Times. Mateusz Skowroński of Katowice’s City Hall briefed U.S. businesspeople on business opportunities available in the Silesian region and promoted the city of Katowice as a reliable business partner.

The Polish consulate in New York Oct. 14 hosted an event related to ongoing efforts to portray Poland as an attractive destination for BPO, information technology outsourcing (ITO) and knowledge process outsourcing (KPO). The event was organized by the consulate’s Trade and Investment Section, which is tasked with promoting the Polish economy. The meeting, held in the historical premises of De Lamar Mansion, which houses the Polish consulate, attracted over 160 executives from leading American companies, including JP Morgan Chase, Citi Group, Accenture, Barclays Capital, Chartis Insurance, Thomson Reuters, and Deloitte.

The consul-general, Ewa Juńczyk-Ziomecka, outlined opportunities and resources available to companies wanting to outsource various business services to Polish specialists. Henryk Sanecki, head of the Trade and Investment Section, said, “The high number of attendees confirms that Poland is already considered a recognized and established investment destination. This is a natural consequence of the positive GDP growth that was registered in Poland last year.”

The Trade and Investment Section’s Paweł Pytlarczyk said, “Poland has been portrayed very positively in the press and was highly ranked in numerous league tables, just to mention AT Kearney’s Foreign Direct Investment Confidence Index, which ranked Poland sixth worldwide, an improvement from 22nd place a year earlier. It is a perfect opportunity to promote Poland as a reliable partner.”

Source:http://webcache.googleusercontent.com/search?q=cache:http://www.warsawvoice.pl/WVpageTest/pages/article.php/22664/article

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US knows India’s value: NASSCOM

October 29th, 2010

Obama administration know the vitality India is creating through our contributions, and making US

companies competitive and prosper, Harsh Manglik Chairman of National Association of Software and Services Companies (NASSCOM) and managing director of Accenture India, said on the sidelines of Bangalore IT.biz 2010.

To a question on the US protectionism, Manglik said it has entered government level negotiations and it would not be appropriate for him to make a comment.

However, he said, “We live in a global environment that has political and economic dynamics. There were many comments from people on how they see the protectionism environment. Our view has always been economies, societies and countries are best served when there is free access to market, free exchange of ideas, open markets and free trade. Mutual economic relationship is the key to growth.”

The Indian IT sector, which gets 60 per cent of its export revenue from the US, has raised concerns against US moves to ban outsourcing.

The country’s concerns on outsourcing and the steep hike in visa fees are expected to be raised during Obama’s visit to India in November.

Source:http://www.mydigitalfc.com/it/us-knows-india%E2%80%99s-value-nasscom-620

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Rural businesses tapping into outsourcing benefits, expert says

October 29th, 2010

IT outsourcing providers are increasingly recognising that rural areas represent a growth market, it has been claimed.

Writing for IT Business Edge, industry commentator Ann All claimed that the increased availability of modern IT solutions – potentially delivered via broadband – has led to a rise in the number of companies needing IT support.

She claimed that many outsourcers are now focusing on expanding in smaller provincial towns, rather than simply concentrating on providing IT support in London and other major cities.

Ms All claimed that changing demographic trends, with more skilled IT professionals now living in the countryside, are also supporting this trend.

In her view, a “significant shift” in business practices and employment trends is currently occurring, driven by modern technology innovations.

Last week, Pyramid Research reported that the popularity of communications solutions such as VoIP has increased significantly in emerging markets during the last year.

Source:http://www.ihotdesk.com/article/800202056/Rural-businesses-tapping-into-outsourcing-benefits,-expert-says

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