Archive for July, 2011

IT Outsourcing: Resolve Minor Disputes with Your Provider

July 14th, 2011

Every relationship has its ups and downs, and IT outsourcing partnerships are no different. Unfortunately, most IT services contracts aren’t built to handle the day-to-day disagreements that will occur during the course of the deal. “They choose litigation or relatively complex forms of arbitration,” says Robert Kriss, a partner at law firm Mayer Brown. “Both are slow and expensive for minor disputes.”

Left unresolved, the small spats–whether over price, scope, performance, delays or requirements–mount. “These disputes don’t tend to go away on their own,” says Mayer Brown partner Brad Peterson. “Instead, they fester and hurt the relationship or grow until they are major disputes.”

IT outsourcing customers shouldn’t just assume they will be able to work through disagreements because they have a good relationship at the start. “If you have a successful approach between the people running the deal, put it in the contract,” Kriss advises. “Contract-based and relationship-based methods both work, but what’s in the contract survives changes in people and work better under stress.”

Inserting some general rules for minor dispute resolution into the contract can help IT services buyers and suppliers keep the peace and avoid painful and costly conflicts.
Some minor dispute resolution mechanisms that Kriss and Peterson suggest negotiating into your outsourcing deal include:

An agreement to keep a shared log of all disputes.

A requirement that the parties exchange written statements on all disputes.

A governance structure that names the people responsible for addressing the issues that lead to a disagreement.

An allowance that either party can escalate a dispute to the other parties’ management structure.

An obligation to set up technical, management and executive committees that will meet regularly and work to resolve disputes.

A small disputes arbitration clause that allows each party to present its position in ten pages and one hour, and requires an arbitrator to rule on the dispute within ten days with no appeals and the loser paying all fees.

If you have no mechanisms for minor dispute resolution built into your existing outsourcing contract, there are still options for dealing with disagreements and preventing long-term discord and discontent. But timing is everything. For example, a customer might agree to discuss withholdings on a disputed invoice if the supplier is willing to discuss a dispute over the scope of services.

“A contract that is weak on dispute resolution likely is weak for both parties,” Peterson says. “So, if you want to force the other party to discuss a dispute, you can wait until the other party has something to discuss also.”

Source:http://www.networkworld.com/news/2011/071311-it-outsourcing-resolve-minor-disputes.html?hpg1=bn

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Outsourcing: Cost Effective or Unrealistic Expecations?

July 14th, 2011

Monday night, the Trenton Public Schools Board of Education voted to outsource the IT department. While I don’t think they reached this vote easily, the decision doesn’t feel right. Having been in the field as a professional for several years, outsourcing might not be as cost-effective of a solution as mentioned.

During the last Board of Education meeting I attended where Plante & Moran representatives discussing the current technological upgrades, none of the responses given or questions asked hinted that this has been a smooth transition to the new Windows based network. While it is a massive project that will cause far more frustration than receive adulation, bringing in outsourced staff to replace on-site techs during a switch of this nature sounds wrong.

After experiencing companies that had no other choice than to outsource their IT department, I’ve seen the challenges. What about the potential for overtime, weekends, and nights? Can the cost of this contract increase similar to the mileage of a leased car? Can the outsourced techs pick up and go at the end of their shift, regardless of pending issues? Probably not, but we don’t have the full details yet.

In this industry, nothing ever goes according to plan. What if the district requires 50-70 hours per week instead of the reported 40 or even have to bring in another tech for larger projects? If outsourcing ends up costing the district closer to the IT department’s 2011-12 budget, how was this a cost effective decision?

It was wrong for the Board not to at least hear the department out with their counter-proposal first. Instead, they made a motion to vote on the decision and directed them to the public comments section of the night. While they may have had their reasons not to hear them out first, it seemed unprofessional considering their jobs were on the line.

The outsourced employees do have the choice to interview for jobs that opened as a result of the contract, but if the two techs provided through inaCOMP are acting on a “break-fix” model, where does this leave the three technology positions? In the tradition of the industry, the district could pass on the experienced employees and hire entry level graduates instead.

Regarding the company itself, inaCOMP is a successful company with two divisions, one dedicated to small and medium businesses while the other provides sales and service to educational and government entities. They’ve been around for twenty-five years and have a great reputation in the industry. They are not to blame for submitting their bid.

While no one is to blame as districts everywhere are making extreme cuts, some students and most faculty will be affected, too. The relationships the IT department formed with everyone, especially those that may have been helped with their own personal IT problems, are important and appreciated. As a tech, it’s not just about providing service, but quality customer service. It’s always sad to see employees that seemed to have been so well trusted for so many years let go without a fight.

Source:http://trenton.patch.com/articles/outsourcing-cost-effective-or-unrealistic-expecations

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Prasar Bharati staff protest against outsourcing in DD, AIR

July 14th, 2011

Employees of Prasar Bharati held a protest meeting to protest the decision of the Board to what they term outsourcing of the direct-to-home platform DD Direct Plus, outside broadcast of cricket on Doordarshan and All India Radio, and procurement and projects under the strategy for New Year.

The National Federation of Akashvani and Doordarshan Employees (NFADE) chairman Anilkumar S told indiantelevision.com that if employees remained silent, both All India Radio and Doordarshan would be sold out to private agencies.

However, DD sources said there was no plan to outsource DD Direct Plus and the e-auction will be completely transparent.

As a first step, the NFADE resorted to a gate meeting at the Akashvani Bhavan in Parliament Street. This will be followed by similar action at all Kendras across the country on 27 July.

Emphasizing that the proposed amendment to the Prasar Bharati (Broadcasting Corporation of India) Act 1990 would not help the broadcaster or its employees, Anilkumar reiterated the stand of the NFADE for repeal of the Act as it did not have any relevance in a scenario where there were over 700 TV channels in the country.

Earlier in a letter to Prasar Bharati Board Chairperson Mrinal Pande in March, Anilkumar and other office bearers expressed happiness that “the Board and the Government finally agrees that the concept of Prasar Bharati is irrelevant/redundant and DD and AIR should be governed directly by the government by repealing the Prasar Bharati Act 1990″.

The letter had been sent on the basis of a newspaper report that the Information and Broadcasting Ministry had asked the Board to reverse its order of selections for the posts of DG for Doordarshan, thus placing Tripurari Sharan at the top, and putting Leeladhar Mandloi (currently holding additional charge as DG of DD) at the top spot for AIR DG, though the Board had put his name at number three in its selection.

Source:http://www.indiantelevision.com/headlines/y2k11/july/july102.php

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IT Outsourcing: How to resolve minor disputes with your provider

July 14th, 2011

Every relationship has its ups and downs, and IT outsourcing partnerships are no different. Unfortunately, most IT services contracts aren’t built to handle the day-to-day disagreements that will occur during the course of the deal. “They choose litigation or relatively complex forms of arbitration,” says Robert Kriss, a partner at law firm Mayer Brown. “Both are slow and expensive for minor disputes.”

Left unresolved, the small spats—whether over price, scope, performance, delays or requirements—mount. “These disputes don’t tend to go away on their own,” says Mayer Brown partner Brad Peterson. “Instead, they fester and hurt the relationship or grow until they are major disputes.”

IT outsourcing customers shouldn’t just assume they will be able to work through disagreements because they have a good relationship at the start. “If you have a successful approach between the people running the deal, put it in the contract,” Kriss advises. “Contract-based and relationship-based methods both work, but what’s in the contract survives changes in people and work better under stress.”

Inserting some general rules for minor dispute resolution into the contract can help IT services buyers and suppliers keep the peace and avoid painful and costly conflicts.

Some minor dispute resolution mechanisms that Kriss and Peterson suggest negotiating into your outsourcing deal include:
An agreement to keep a shared log of all disputes.

A requirement that the parties exchange written statements on all disputes.

A governance structure that names the people responsible for addressing the issues that lead to a disagreement.

An allowance that either party can escalate a dispute to the other parties’ management structure.

An obligation to set up technical, management and executive committees that will meet regularly and work to resolve disputes.

A small disputes arbitration clause that allows each party to present its position in ten pages and one hour, and requires an arbitrator to rule on the dispute within ten days with no appeals and the loser paying all fees.

If you have no mechanisms for minor dispute resolution built into your existing outsourcing contract, there are still options for dealing with disagreements and preventing long-term discordand discontent. But timing is everything. For example, a customer might agree to discuss withholdings on a disputed invoice if the supplier is willing to discuss a dispute over the scope of services.

“A contract that is weak on dispute resolution likely is weak for both parties,” Peterson says. “So, if you want to force the other party to discuss a dispute, you can wait until the other party has something to discuss also.”

Source:http://www.cio.com/article/686147/IT_Outsourcing_How_to_Resolve_Minor_Disputes_with_Your_Provider

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Moving up the BPO chain

July 14th, 2011

THE Philippines, already No.1 in the voice contact center business, is moving up its competency to the next level to become the global leader in multilingual business process outsourcing (BPO).

Cristino Panlilio, managing head of the Board of Investments, said the agency has partnered with IBM in a bid to cash in on the Philippines’ multilingual talents as more and more companies, particularly from Europe and Asia-Pacific, expand outsourcing activities.

Panlilio said IBM itself will be the biggest catcher of those multilingual talents as it plans to fill in 3,000 more jobs over a one-year period.

Panlilio said IBM currently has 10,000 workers in the Philippines.

According to a DTI briefer, “The Philippines as the Global Leader in Multilingual BPO,” the number of local multilingual talents in the Philippines is three times the number of foreign multilingual talents and that number is growing by 8.7 percent annually.

Aside from an already rich pool of multilingual talents from the BPO sector itself, the DTI said other sources of multilingual talents include the academe, government and the hospitality industry.

The briefer also said IBM has the largest contingent of multilinguals with more than 200 local and cross-border talents supporting 15 languages.

This number is expected to double in three years.

According to Panlilio, a training facility will be set up at the Ortigas Center.

On the academic side, the partnership hopes to increase the quantity and improve the quality of graduates proficient in Nihongo, French, German and Spanish.

OFWs will be encouraged to return and practice at work the language they have learned abroad.

There is also an initiative to simplify and integrate processes and policies on work permits for foreign nationals and visa applications for local talents going on knowledge-transfer abroad.

According to the project brief, there is a need to develop a research and development program focusing on multilingual capability since growth markets are in Europe and Asia Pacific.

Today, the briefer added, multilingual talents in the Philippines mostly handle non-sales activities such as on customer services, document analysis, technical support and teaching.

“IBM’s capabilities and best practices in multilingual BPO business, coupled with strong and strategic cooperation from the BOI, will further establish the Philippines as an upcoming leader in the global multilingual BPO arena. Today, our local BPO business supports over one million client employees in 15 languages from Manila and provides global support to 84 countries in North and South America, Asia and EMEA, all delivered in their natural time zones,” said James Velasquez, country general manager of IBM Philippines.

Panlilio said the Philippines “continues to lead the global IT and BPO evolution with a strategic engagement with IBM that will cement the position of the country as a center of excellence in multilingual BPO.”

“What we are witnessing is an acceleration of our country BPO industry service offerings that would help attain our industry targets of creating 1.3 million jobs and $25 billion in revenues by 2016,” Panlilio said.

“This is also part of BOI’s commitment to further reinforce our reputation as a preferred destination for niche BPO services,” he said.

Trade Secretary Gregory L. Domingo said chief executive officers of companies in Britain have cited investment opportunities in the Philippine BPO industry during a recent executive briefing on Philippine outsourcing in London.

The briefing was organized by the founding members of the British Philippine Outsourcing Council and the Philippine Trade and Investment Center.

The Philippines was the recipient of the Offshoring Destination of the Year Award by the UK’s National Outsourcing Association in 2007, 2009, and 2010.

“We see higher growth and more opportunities for the BPO industry in markets such as the UK. Over the past decade, the Philippine BPO industry has grown to achieve $11 billion revenues and employs close to 526,000 people. These numbers show that the industry is a major contributor to exports,” said Domingo.

Britain is one the Philippines’ top markets in the European Union. Exports amounted to $395 million in 2010. Industry data also showed total investments from Britain amounting to $146 million last year.

Rob O’Malley, head of telecommunications, retail, and travel of Aegis Global BPO, said the availability and quality of the Philippine talent pool is one of the advantages why his clients choose the Philippines as the location of their outsourcing operations.

Pete Graf, global head of the service desk of leading global courier services firm DHL, also joined the executive briefing through live video link from Prague to discuss the quality of services provided by their outsourcing partner Merlin Information Systems.

Graf was impressed with the “multi-lingual services agents available in the Philippines.”

Merlin Information Systems has an operational center in the Philippines providing 24/7 quality customer support.

Others who attended the Philippine Outsourcing briefing were Dr. Bharat Vagadia of O2PI and board member of the UK’s National Outsourcing Association, and executives from Onshore-Offshore, British Telecom, RBS Insurance, Parker Hannifin, Unishores, iGatePatni, Supply Weaver, Staffey, Stravencon, xChanging, Charles Annon & Co Solicitors, Altatech Creative, and Obrar Limited.

Under the proposed Philippine Export Development Plan, services exports which include IT and BPO are expected to increase their market share to 24 percent by 2016.

The British Philippine Outsourcing Council, an organization based in the United Kingdom, provides outsourced services to the Philippines.

Source:http://www.malaya.com.ph/july14/busi1.html

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SPi Global Stands Out Among Top 100 Outsourcing Companies

July 14th, 2011

SPi Global, the largest Filipino-owned BPO company, has ranked among the top 100 outsourcing service providers in the world, according to two of the most reputable international outsourcing industry organizations.

The company was included in the International Association of Outsourcing Professionals’ (IAOP) 2011 Global Outsourcing 100 list, and the Global Services’ 2011 GS100 list.

IAOP is the global standard-setting organization and advocate for the outsourcing profession, whereas Global Services is a highly-regarded online and digital publication dedicated to the outsourcing industry.

Maulik Parekh, SPi Global’s president and CEO, said, “This is the sixth consecutive year that SPi Global was included in the Global Outsourcing 100 list. We scored high marks in the areas of customer references, company recognitions, management capabilities, and employee management. Those are critical credentials for a BPO provider and strongly show our commitment to excellence and value creation for two of our most important stakeholders — our clients and our employees.”

“Making it to the GS100 list is another source of pride and honor. Our competitors are giants in the industry. With our hard work and dedication, we have proven that we can be on par with them in terms of the services that we provide.”

The Global Outsourcing 100 and its sub-lists are essential references for companies seeking new and expanded relationships with the best companies in the industry.

SPi Global was cited due to its demonstrated capabilities in the areas of document management, customer relationship management, and transaction processing.

Aside from its ranking, SPi Global also listed prominently in the sub list of honors including: Best 20 Leaders by Industry Focus – Entertainment & Media, Best 20 Leaders by Industry Focus – Financial Services (Insurance), Best 20 Leaders by Industry Focus – Health Care, Best 10 Leaders by Service Provided – Document Management Services, Best 10 Companies by Service Provided – Document Management Services, Best 20 Leaders by Service Provided – Customer Relationship Management Services, Best 20 Leaders by Service Provided – Transaction Processing Services, Best 20 Leaders by Region Served – UK.

In the GS100 list, SPi Global was also included in two category lists: the top 15 companies in the category “Top Global Mid-Tier BPO Vendors,” and top nine firms in the category “Top Mid-Tier Industry-Specific BPO.” There were no exact rankings provided; the companies were listed alphabetically.

Source:http://www.marketwire.com/press-release/spi-global-stands-out-among-top-100-outsourcing-companies-1537635.htm

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Analyst Report Positions ACS, A Xerox Company, as a Leader in Desktop Outsourcing

July 14th, 2011

ACS, A Xerox Company XRX +0.55% , has been placed by Gartner, Inc. in the ‘Leaders’ Quadrant of the 2011 Magic Quadrant for Desktop Outsourcing Services, North America.’(1)

Desktop management services provide businesses a comprehensive approach to managing all end-users IT platforms and devices, including desktop and laptop computers. ACS works with clients to design and execute a desktop management strategy, focusing on preventive and remedial maintenance as well as proactive programs.

“Our desktop management services enable organizations to manage devices faster and more cost-effectively than is possible with in-house support,” said Derrell James, executive vice president and group president, ACS IT Outsourcing Solutions. “We believe placement in Gartner’s Magic Quadrant reaffirms our customer responsiveness, the technical skill set of our staff, and the high level of innovation based on our virtualization solution and security.”

ACS was positioned in the leaders quadrant based on the evaluation criteria of ability to execute and completeness of vision. According to the report, “Leaders deliver their service solutions skillfully, have a clear vision of the direction of the desktop outsourcing services market, and are actively building and improving their competencies to sustain their leadership positions. The Leaders quadrant indicates the maturing desktop outsourcing services market. However, the continuing changes in the delivery model capabilities will continue to drive continued change in the market. Leaders have demonstrated their many years of experience in delivering desktop managed services, and understand the requirements to successfully deliver these services. They have proven their ability to execute their strategic visions. This was particularly evident during the reference-checking portion of the analysis.”

The Magic Quadrant is a proprietary research tool developed by Gartner that offers visual snapshots of a market’s direction, maturity and participants, and evaluates companies on completeness of vision and ability to execute.

Source:http://www.marketwatch.com/story/analyst-report-positions-acs-a-xerox-company-as-a-leader-in-desktop-outsourcing-2011-07-13?reflink=MW_news_stmp

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