Archive for February, 2011

IT major to pump in over $500 m to ramp up India operations

February 8th, 2011

Cognizant Technology Solutions, the US-based provider of information technology, consulting, and business process outsourcing services, will invest in India over $500 million through the end of 2014. This is to expand its owned campus footprint with the addition of over eight million sq ft to help the company accommodate nearly 55,000 employees, according to a company press release.

The real estate development programme will create additional software development and training facilities in regions designated as Special Economic Zones in Chennai, Pune, Coimbatore and Kolkata.

In addition to the construction of owned facilities, Cognizant will continue to actively lease additional facilities throughout India to meet its future staffing requirements

The expansion programme is part of its ongoing strategy to invest in people, processes, systems and infrastructure to support the long-term growth,” said Mr Gordon Coburn, Chief Financial and Operating Officer, Cognizant.

“We will continue to evaluate opportunities for further construction expansion over the coming years.”

Source:http://www.thehindubusinessline.com/industry-and-economy/info-tech/article1165339.ece

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Kenya seeks slice of the lucrative BPO industry

February 8th, 2011

The landing of the fibre optic cable boosted Kenya’s thrust to get a slice of the lucrative outsourcing business. Several months later, Financial Journal’s James Ratemo caught up with Information PS BITANGE NDEMO on the developments in the sector so far

QUESTION: How far is Kenya as regards fibre optic cable connectivity?

A: With the arrival of the undersea optic cables, bandwidth costs are no more a hindrance in doing business. We are currently building on the last mile connectivity, which will be an open access platform. The constraint is to get to people’s homes. Fortunately, we already have many investors working on this front.

Q: On last mile connectivity, what is the progress?

A: The Government has installed more than 5,000Km of fibre countrywide, from Isebania to

Moyale, from Lamu to Lokichoggio, from Garissa to Busia and traversing all the other towns in-between.

Combined with what private investors have done, we have over 20,000km terrestrial cable, criss-crossing the country.

In general, Kenya has several fibre cables forming a formidable network. They include East African Marine System, Teams, Seacom, Eassy, Telkom’s Lion and satellite network.

Q: How far is the rollout of digital villages in the country?

A: Kenya ICT Board is facilitating the establishment of digital access centres, to be known as Pasha (Swahili for information) Centres across the country.

Private investors like Safaricom are also rolling out digital villages across the country to complement Government efforts.

Through Family Bank, the Government grants a loan of up to Sh3 million to an entrepreneur to set up set up a digital centre or expand an existing one.

The Kenya ICT Board is liaising with the public sector and content providers who may want to access the public through the Pasha network.

Information PS says Kenya is on track to transiting into a completely ICT economy. Photo: File/Standard

The board will also provide a consultant to support the technical set up and management. The Board will also offer branding and communication support in order to manage the Pasha Brand and drive consumer interest and usage.

Q: What makes Kenya a preferred destination of

Business Processing and Outsourcing (BPO)?

A. Outsourcing business is the next ‘big thing’ and as a country, we have staged an aggressive marketing campaign as a suitable BPO destination.

Kenya’s highly educated, largely English-speaking population is also a plus for the country.

Kenyans have the right education and the right accent, which is pre-requisite for success in the sector.

The sector has all the opportunities to grow as envisioned in Vision 2030, which identifies ICT as a key pillar for growth with BPO taken as a flagship project.

Q: How have we utilised ICT to cut down the number of licences involved to start a business?

A: So far, digitisation of company registry has made registering a business much faster. Cases of corruption due to manual systems in the company registry, Lands registry and the Judiciary will be a thing of the past as digitisation of all records enters final stages.

Q. Is e-government a reality yet or it is still a pipe dream?

A: E-Government is a reality and has been a reality for more than five years now. There are human resources, systems and structure that support the e-government functions. The website www.e-government.go.ke for instance reveals some of the services on offer and what the Government envisages to achieve by going digital.

The Government of Kenya Shared Services Project is the first step in building a platform to enable the Government to deliver improved services to citizens.

The IT Shared Services Centre will be implemented over a number of years according to the Shared Services Roadmap.

Q: What will the Government achieve by going digital in her services?

A: An IT Shared Services Centre will allow Government to focus on core responsibilities and enable them to operate more efficiently with IT services being provided by a dedicated organisation.

Q. How far is the country from completely shifting from analogue to digital broadcasting?

A. We are on track. By 2012, the country plans to completely switch over to the digital platform ahead of the global deadline of June 2015 spearheaded by the International Telecommunication union.

Kenya is one of the few countries in Africa to embark on migration, having set 2012 as the deadline for the analogue television switch-off.

Source:http://www.standardmedia.co.ke/sports/InsidePage.php?id=2000028497&cid=14

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Latin america redifines Outsourcing, emerging as a critical player In IT

February 8th, 2011

While the term ‘outsourcing’ can mean different things to different people, it is generally not a friendly word in the eyes and ears of U.S. companies.
To most, outsourcing means the removal of jobs and business. But in 2010, one region began to emerge, gaining increased exposure in the U.S. and started to help redefine what U.S. companies thought about outsourcing: Latin America.

Rise of Latin America and its Redefinition of Outsourcing

The consequences of outsourcing jobs or the risk of sub-par quality have made American companies hesitant about engaging in business with traditional hubs like India and China, especially as it relates to IT functions. As a result, many U.S. companies have begun to leverage foreign supplier relationships, specifically found in Latin America, for business support and to build new markets.

Latin America is changing the typical mindset around outsourcing as it plans to return partnerships and superior quality back to U.S. soil. The region is climbing the ranks as a major IT player with thriving economies and industries in Chile, Brazil, and Argentina.

According to a study issued by the Brookings Institute and the London School of Economics late last year, Santiago ranked #5 in the world’s 10 best economic performing cities, behind Lima and in front of Shanghai. Additionally, Latin America is ripe for the picking for partner companies by American firms with its cultural similarities, time-zone compatibility and tech-savvy demographic.

The notion of outsourcing is no longer about the removal of jobs and business, it’s about forming a global partnership in order to maximize performance and costs for U.S. companies. Outsourcing is a race to the bottom for both quality and value but internationalization is about leveraging and offering companies’ top quality resources.

There are organizations in Latin America who bring those resources to the U.S. soil and allow a trade among technology companies and businesses, building long-lasting partnerships. This is a model the U.S. business community will see more of in this coming year.

In February of last year, one of Latin America’s most thriving nations, Chile, was hit with one of the most devastating earthquakes of our time. Not only an 8.8 on the Richter scale, but one that took hundreds of lives, positioning Chile as one of the most destroyed countries in the world at the time. Almost a year later, Chile has recovered and is using its $3.3 billion dollar and 500+ IT companies-strong IT industry to show the world, the U.S. in particular, that the country is a trembling force in the global technology space. In order to do this, Chile’s IT industry is taking a concerted, government-backed effort in 2011 to help redefine outsourcing and
what it means for U.S. companies.

Chile: The Latin American Nation Advancing the Notion of Outsourcing

Chilean IT companies work with a large network of companies throughout Latin America; therefore, they are able to leverage this partnership to work faster, more efficiently, and scale up and down as necessary. Small businesses especially benefit from the Chilean IT network because, unlike the large outsourcing ‘factories’ (as some may call them) that other countries offer, Chile possesses a smaller, more focused industry that provides high-value service and a personal touch and interaction that small businesses need.

Some of the top technology industries in Chile that are forthcoming in the U.S. and will be important global resources for U.S. companies in 2011 include: security (managed security systems), mobile banking, green technology, data center and control room architecture and web design. Take internet and mobile banking for instance, a trend that has peaked interest in the U.S. in recent years and is still growing, has been around for more than 20 years in Latin America with companies like Excelsys, founded in 1988.

You’ve Got a Partner, Not Outsourcing Vendor

The emergence of Latin America as a critical player in IT and business on a global level has truly redefined how we think about outsourcing – It’s not about having providers abroad support a certain IT function or service in a cost-effective way anymore, it’s about the globalization of resources. The integration of national economies into international economies holds unprecedented longevity for companies that can capitalize on this transition. The idiom, “two heads are better than one” will hold true as countries realize the limitless possibilities of a fully global marketplace.

Source:http://www.businessinsider.com/redefining-outsourcing-in-2011-2011-2

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Philippines drops to rank 9 in BPO listing

February 7th, 2011

The country dropped two rungs on the list of countries most attractive for offshore-business activities, management consulting firm A.T. Kearney bared.

However, its Global Services Location Index (GSLI) for 2011 avoided citing specific reasons for the drop, saying only that, in general, the “fallout from the financial crisis shook up the rankings, as once-expensive countries moved up.”

The Philippines was at seventh place in the firm’s 2009 ranking, now held by Thailand, which also dropped three rungs. The Philippines’ ninth place in the current ranking was previously assigned to Jordan, which plunged 13 rungs to 22.

“While a sluggish recovery continues to create the kind of pressure for economies that drive business outsourcing, an increasingly complex global economic environment has led to major changes in the ranking of the most attractive offshoring destinations,” the Chicago, Illinois-based A.T. Kearney said in a statement.

India, China and Malaysia remained in the top three spots—positions they’ve occupied since the inaugural Global Services Location Index in 2003. A.T. Kearney cited a combination of human resources and low cost as reasons for this consistent ranking.

With Vietnam rising two notches at eighth place, it has overtaken the Philippines; while Chile dropped to the 10th place, having dropped also two rungs in the ranking.

Vietnam was given strong scores in terms of financial attractiveness (3.27), people skills and availability (1.19) and business environment (1.24) for a total score of 5.69, which is just 0.04 point ahead of the Philippines’ overall score of 5.65.

India, the leader, was given a total score of 7.01, while Chile, the 10th, 5.52.

Even in terms of financial attractiveness, Vietnam outpaced the Philippines and the other 48 countries included in the ranking with an overall score of 8.17.

A.T. Kearney gave more weight to financial attractiveness, citing that “financial factors constitute 40% of the total weight in the Index…because cost advantage is typically the primary driver behind location decisions.”

The consulting firm said financial attractiveness included costs in compensation of employees, rent and other infrastructure-related elements, and tax burden and other regulations, as well as of corruption.

Nonetheless, A.T. Kearney used the Philippines as a model for two Asian countries in the top 10.

“With increased promotional efforts and removing crucial roadblocks, Indonesia and Thailand could repeat the Philippines’ success.”

A.T. Kearney added that it still considers the Philippines as “an offshoring behemoth, employing half a million people in the BPO [business-process outsourcing] sector and generating $7.2 billion in revenues in 2009.”

“The Philippines’ long-established tradition of providing leading call-center support continues to be strong.”

A.T. Kearney noted that call centers make up the majority of the country’s operations, at $5 billion in revenues, “but growing BPO niches such as services catering to the health care and pharmaceutical industries help fuel overall growth.”

“The Philippines, an early entrant into the service sector, is also relatively well-rounded. It has had more than a decade to hone its capabilities, and by now has moved into ITO [information-technology outsourcing] from being primarily a contact-center hub.”

A.T. Kearney said, “Amid fierce competition from other regional players, the Philippine government has launched a plan to build a virtual BPO university and extend training in call-center skills to an additional 10,000 students to retain its competitive edge.”

A.T. Kearney said the 50 countries included in this year’s GSLI “were selected on the basis of corporate input, current remote services activity, and government initiatives to promote the sector.”

Source:http://www.abs-cbnnews.com/business/02/06/11/philippines-drops-rank-9-bpo-listing

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Squeezed groups mull outsourcing

February 7th, 2011

Please respect FT.com’s ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article – http://www.ft.com/cms/s/0/1869b4ac-3092-11e0-9de3-00144feabdc0.html#ixzz1DF3Twq5m

Asset management profitability is being squeezed by rising regulatory costs and competition from low-fee passive products, forcing groups to consider outsourcing parts of their business, a new study reports.

More than half (59 per cent) of respondents to the study by RBC Dexia and Accenture forecast their companies’ return on equity will fall below 15 per cent as early as this year, down from an average 20 per cent before the collapse of Lehman Brothers in 2008.

Please respect FT.com’s ts&cs and copyright policy which allow you to: share links; copy content for personal use; & redistribute limited extracts. Email ftsales.support@ft.com to buy additional rights or use this link to reference the article – http://www.ft.com/cms/s/0/1869b4ac-3092-11e0-9de3-00144feabdc0.html#ixzz1DF3WFPBj

About 14 per cent of participants expect their companies’ ROE to even dip below 10 per cent.

Liquid, low-fee products like index trackers are in favour as transparency now ranks highly as a consideration for investors. And “falling market prices and a general move away from high-margin products” has hit asset managers’ revenues, said Rob Wright, global head for product and client segments, with RBC Dexia.

To cut costs, the asset management industry will embrace outsourcing over the next three years in areas such as fund accounting, custody and back-office technology and risk management, predict 77 per cent of the fund managers surveyed. But in some cases, “near-shoring” – where work is shifted to a cheaper location within the same country or continent – remains the superior option.

More asset managers, for example, are shifting funds registered in the Caribbean to better regulated locales in response to scrutiny from clients. Outsourcing strategies could reduce managers’ costs by 20-25 per cent, according to RBC Dexia and Accenture’s research. India is still sought after for outsourcing, but the popularity of near-shoring in North America and western Europe is growing.

Product launches are also in vogue, with 86 per cent of fund managers claiming to have brought a new product to market in the past three years to compete in a crowded market and woo discriminating investors.

Copyright The Financial Times Limited 2011. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web.

Source:http://www.ft.com/cms/s/0/1869b4ac-3092-11e0-9de3-00144feabdc0,dwp_uuid=d8e9ac2a-30dc-11da-ac1b-00000e2511c8.html#axzz1DExdIGWw

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

Clarksville job seeker victim of outsourcing

February 7th, 2011

The recession provides a dark economic backdrop for the telecommunications industry, where job losses and the growth of outsourcing have been rife for the last decade.

Many people in that industry, such as Seth Daniel Hotchkin, have been greatly affected.

Hotchkin, a Clarksville resident, was laid off from his job as a technical support representative for Asurion in October 2008. At Asurion, he assisted customers with equipment malfunctions and damage as the firm dealt with everything from cell phones to computers.

“I have had a hard time finding work because the jobs in my field are not here; they’re overseas,” Hotchkin said.

Before the layoff, and then afterward, he also worked part-time for Dragonfly Enterprises in Nashville as a science-research consultant. That job ended when the owner died in August.

Since then, Hotchkin hasn’t been able to find a new job. His unemployment benefits have run out, and he is now reduced to selling coins from a childhood collection to make ends meet each week.

“I’m resourceful,” he said. “I use the local library, where I get movies for no charge. I use their computers for work.”

Hotchkin moved from Florida to Tennessee in 1993 when he was 13. He attended Austin Peay State University for about three years until he ran out of money for tuition. He then got a job at Convergys representing AT&T Wireless.

“Companies have always given me better work, better jobs,” Hotchkin said of his overall career experience. “I was moving up in the world until this happened. I was doing quite well, actually.”

Since his layoff, Hotchkin said he has turned in hundreds of applications, averaging about five a week. He has had some luck in getting interviews, but offers with extremely low pay have been a problem.

“A lot of days, you know, I just feel like giving up,” he said. “I just think, ‘I have got to do something on my own, start my own business or something.’”

Since Hotchkin has worked in telecommunications for 10 years, including a gig at T-Mobile, he said he would prefer to go back to doing technical support for a mobile phone company.

However, he also has crossover skills that he thinks would make him a good candidate for doing warehouse inventory. He was once a project leader for a company called Communications Test Design Inc. There, he coordinated equipment repairs and managed inventory levels for the firm’s warehouse.

“I would think a warehouse would have the highest amount of interest in me for inventory control,” he said. “They need people to talk to their customers. There’s got to be an intelligent person there to communicate with their customers. Why not me?”

Hotchkin has gained fluency in creating databases and running multiple reports with charts, graphs and metrics. He knows a variety of Microsoft computer programs, including Excel, PowerPoint and Microsoft Access.

“I have a ridiculous amount of experience,” he said. “I’ve worked with online databases, offline databases, company intranets and various companies’ systems software.”

If he gets a job, he’s staying put for the long haul. But if he can’t find work in Clarksville, he will leave.

“If Clarksville can’t provide jobs, then people should move away,” he said. “That’s how I feel.”

His other plan, if there’s no job on the horizon by August, is to return to college.

“I would make a complete change and go into the medical field, because there’s always going to be a need for that,” he said.

For now, he continues to hope and to look for that job, any job. But he does have a “dream job” in mind.

“It would involve helping customers and working with computers,” he said. “And having my own office would be nice. I’ve had that before, and there’s nothing better.”

JOB LISTINGS, CAREER ADVICE

# Jump start your job search with help from the experts at Career Builder. In today’s Leaf-Chronicle, Page A6.

THE JOBS PROJECT

# This is part of a special 12-week project to attack the core problem of the lingering U.S. economic struggle. This project on unemployment in Montgomery County is designed to connect those who are out of work with job opportunities.

Source:http://www.theleafchronicle.com/article/20110206/NEWS01/102060331

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks

IT sector fuels job boom with 3 lakh hires

February 4th, 2011

The eight per cent-plus growth clocked up by the economy is beginning to show up where it matters most for the common man-in jobs.

India’s infotech (IT) and infotechenabled services (ITES) sector is shrugging off its post-meltdown caution and going on a hiring spree. The result: a deluge of well over two lakh jobs over the coming months. Fresh hires in the IT-BPO sector alone will reach 2.40 lakh, the apex IT and BPO trade body Nasscom revealed on Thursday.

This will come on top of the estimated one lakh hires done in January alone, a peak hiring time for the IT and BPO sectors in India as it coincides with the start of a new financial year in the countries from which the sector secures its outsourcing jobs.
What’s more, the pace of fresh hiring is expected to sustain well into 2012-13 as well. “The sector will continue with the hiring spree in the coming years. The fresh hiring in IT-BPO alone will reach 2.40 lakh in this fiscal. In the next fiscal the sector will be hiring two lakh more people,” said Som Mittal, president of Nasscom.

According to Mittal the improving demand from the US market and selected European markets will drive the high recruitment.

“The markets in the US and Europe are improving. The Indian software and service export sector is expected to grow by 15-17 per cent, which is our conservative estimate keeping in view the Euro crisis and Rupee appreciation. So there will be more hiring,” Mittal said.

That is because Indian IT continues to derive a bulk of its revenues from outsourcing. Global outsourcing spends grew by 10 per cent in 2010, compared to a mere four per cent growth in overall technology spends worldwide, according to data from Everest Research and IDC. And India continues to get a lion’s share of this particular pie.

“India’s share in the global sourcing has gone up from 51 per cent in 2009 to 55 per cent in 2010, which is a good sign,” said Mittal. India’s IT-BPO sector currently accounts for 26 per cent of the country’s total exports and 11 per cent of all services revenues. Services account for more than half of India’s GDP.

IT services continue to comfortably outpace the rest of India Inc in the pace of growth, growing by 22.7 per cent. The BPO sector has been slower, growing at just 14 per cent, as new competition from cheaper geographies eats away India’s share.

Nevertheless, improving domestic and overseas business is responsible for the high hiring numbers, said Mittal. Another big factor has been attrition. After a two-year slowdown in pay hikes and bonuses, employees are ringing up job changes at a rapid clip as they switch jobs to improve their pay. The industry has seen a high attrition rate varying from 10-20 per cent.

This has led to rising demand for those with more experience as well, although the big numbers are coming from campus hires. Companies like Infosys, Wipro and TCS have been on a hiring spree in campuses since December. Due to the growing order books, most firms have increased their hiring expectations from their earlier targets.

However, experts feel that as the industry grows, the sector will face a talent crunch. “The sector is already facing a talent crunch in more specialised areas, which will become severe in future. There will always be demand for specialised IT professionals,” said Kamal Karanth, chief executive officer (CEO) of Kelly Services.

That is the reason why companies have increased hiring of non-IT candidates. According to Nasscom, in 2005, the number of hires from non-technical backgrounds was around two to three per cent, which went up to 12 per cent in 2010.

Talking about the hiring trend for the IT sector, Mittal said, “A good number of BPO staff change their fields after two to three years, so there is always high hiring in this segment.”

According to him, as Indian IT moves up the IT value chain, companies are targeting more specialised services and typical low-end BPO jobs are going to countries like the Philippines.

“For IT and IT-enabled services, the industry is going through a paradigm shift. Clients are now looking for application-based solutions. So, there will be a fair demand for specialised applicationbased software developers,” Mittal added.

The industry already directly employs over 2.54 million professionals, making Indian IT one of the world’s largest technical labour forces. This upward trend is likely to stay. While revenues are expected to grow by an estimated 18.7 per cent this financial year, employee strength is expected to grow by 10 per cent.

Source:http://indiatoday.intoday.in/site/Story/128635/business/it-sector-set-to-give-big-boost-to-indian-job-market.html

Share and Enjoy:
  • Twitter
  • FriendFeed
  • LinkedIn
  • Google Bookmarks
  • Facebook
  • MySpace
  • Digg
  • del.icio.us
  • Sphinn
  • Mixx
  • Blogplay
  • Yahoo! Buzz
  • Live
  • Posterous
  • Technorati
  • Add to favorites
  • RSS
  • email
  • Print
  • Tumblr
  • Identi.ca
  • Hyves
  • IndianPad
  • Yahoo! Bookmarks
Get Adobe Flash playerPlugin by wpburn.com wordpress themes