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Archive for August, 2011

TCS becomes official technology partner of Amsterdam Marathon

August 26th, 2011

The country’s top outsourcing firm Tata Consultancy Services (TCS) today said it has become the official technology partner of the Amsterdam Marathon for a period of five years, from 2011 to 2015.

In addition to the title sponsorship, TCS will support the marathon by providing technology services and has set up a special purpose team to look at enhancing the performance and experience of the sport, TCS said in a statement.

“This sponsorship will further strengthen the relationship between the city and TCS, therefore we look forward to the new TCS Amsterdam Marathon,” the Mayor of the city of Amsterdam, Eberhard van der Laan, said.

Started in 1975, this event is one of Europe’s leading marathons and is expected to have 33,000 participants from 80 countries. This year, the marathon is being held on October 16, 2011.

“The TCS Amsterdam Marathon (as it will now be known) has grown from being an intimate event in earlier years to a global one. We are pleased to have Tata Consultancy Services as our strategic partner as we look to expand the event and also deepen our use of technology,” Simone Richardson, the Director of Stichting Sportevenementen Le Champion (the entity that organises the event), said.

TCS’ significant portfolio of sports partnerships includes tie-ups with Formula-1 racing team Ferrari, pro-cycling team Garmin-Cervelo and several marathons in major cities worldwide, including Bangalore, Boston, Chicago, Mumbai and New York.

“Given our significant and growing presence in major markets such as the US, UK and Europe, we always looking at ways to engage with and give back to the communities we work in,” TCS President – North America, UK and Europe Surya Kant said.

TCS has been operating in the Netherlands since 1992. The company operates a head office in Amsterdam, a global delivery center in Eindhoven and has over 2,000 experts catering to leading companies such as KLM, ABN AMRO, Rabobank and the ING Group.

Source:http://economictimes.indiatimes.com/tech/ites/tcs-becomes-official-technology-partner-of-amsterdam-marathon/articleshow/9745080.cms

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Ten Tips for Outsourcing Projects Overseas

August 26th, 2011

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The task of outsourcing projects overseas can prove challenging for online retailers. Ben Liau from Mooo offers his advice for productive global partnerships.
Outsourcing work overseas is a challenge faced by many online retailers and e-commerce startups. These days, however, marketplace platforms such as Odesk, Guru and Elance have made it much easier to find overseas professionals with the skillset you require.

But managing a person or team overseas is definitely not a walk in the park, and there have been countless horror stories of overseas outsourcing gone wrong. Speaking from my own experience, I have created a list of important things to consider when outsourcing projects overseas.

Here are my top tips to consider when outsourcing work overseas:

1. Clearly scope out and schedule your project and define deliverables

Be very clear on the scope of your project; define your project requirements so that service providers know exactly what the deliverables are and when the deadlines are scheduled. For some service providers you have to literally spell it out, as they will do the absolute minimum based on the project scope.

2. Be very choosy when hiring

Be very picky when you are hiring, there are many service providers out there, so you don’t need to be in a rush. Also don’t choose a service provider based solely on price – examine at other aspects as well and choose based on a balance of good value and quality results.

3. Look for the right experience fit

Make sure the service provider specialises in what you need them to do, and make sure they have specific experience with the type of project you want them to complete. A lot of service providers will be able to do many tasks, but will specialise in none.

4. Review ratings, statistics and feedback

When choosing a service provider it is important to review all the statistical information that is available on their marketplace platform. Most of the platforms will show their work history, how many hours they have worked, what tests they have taken, and any feedback from previous clients.

5. Review portfolios and sample work

Ask the service provider to provide you with a portfolio of work they have done previously, or get them to do some sample work to show that they actually do have expertise in that area. This will ensure they have the right skills to compete the project tasks.

6. Arrange a call or SKYPE interview

It is always best to talk to someone face to face before you employ them, but it’s not so easy if they are in a different country. Thanks to SKYPE you can easily have a face to face discussion with them to make sure they are who they say they are, and gauge how effective they will be at communication and handling the project.

7. Base payment on clearly defined milestones

Define your scope into a plan with defined milestones and base payment on the completion of each milestone. Always pay by hour rather than by project – this will ensure that the project isn’t rushed and ensures quality.

8. Test a few providers before you make your selection

Don’t rush to hire a service provider and stick with them the whole way. Start interviewing a few candidates and give them small portions of work to test them out. This will allow you to pick the best out of the lot. Also do not sign a one year contract before testing out the relationship and their performance. Start small and commit gradually.

9. Have everything documented in writing

Make sure you have everything documented and in writing. Be clear on who owns the resulting work and make sure there is an understanding from both parties on the intended use of the deliverables. Also keep a written record of project goals, pay schedules and any changes made.

10. Make sure you sign an NDA

It is very important to have an NDA (non disclosure agreement) signed by both parties, especially if the provider has access to sensitive company information that could be used in an unethical way. Any refusal to sign an NDA should be a sign of bad things to come.

Source:http://www.powerretail.com.au/pureplay/ten-tips-for-outsourcing-projects-overseas/

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BPO industry sees growth despite macro challenges

August 26th, 2011

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The business process outsourcing (BPO) industry in India, which is as export-oriented as the information technology services industry, is unperturbed despite the macroeconomic challenges and problems that are haunting the US, its biggest market.

The overall mood at the Nasscom annual BPO strategy meet in Gurgaon was reflecting this. Industry chieftains, strategists and analysts were unanimous that a slowdown, if at all happens again, won’t affect the prospects of the $17-billion industry. This is given the fact that global clients have already undergone significant restructuring with no headroom for further cost reduction.

The impact, if at all, will be positive since the clients will be forced to outsource more to optimise the costs and the benefits of that will come to the global outsourcing services providers, say industry leaders.

INDUSTRY AT A GLANCE
* India is number one in the global BPO landscape with 37% market share
* Over 500 companies offer services in India
* Over 200 MNCs and captives are doing business out of India
* The Indian BPO sector serves 66 countries in 36 languages
* The sector registered export revenue worth $17 billion with $14.1 billion from exports and $2.8 billion from the domestic markets

“In 2008, when the economic slowdown happened, we and the customers went through a fair amount of adjustment. We effectively moved from one pricing model to the other. The customers gave us far more flexibility than they gave before and that led to a different kind of relationship. Given all these, we think that the business for us will continue to be good,” Nasscom President Som Mittal said on the sidelines of the two-day event that started on Wednesday.

Besides, he said the BPO industry was more insulated as compared to some other industries, as it was not directly linked to the global uncertainties. Seconding his view, Pramod Bhasin, the non-executive vice-chairman of Genpact said the sector would go at a steady pace in the long term.

According to rating agency Crisil, while the IT sector grew by seven per cent during the downturn, the BPO sector expanded by 20 per cent. “Those numbers speak of a very interesting dynamics and what lies ahead for the BPO industry,” said MD and CEO Roopa Kudva. Moreover, in case of IT projects, the companies have to make payments upfront and wait for the benefits to accrue. But a BPO project is productive from day one, according to Manish Choudhury, VP and MD of Pitney Bowes Software India.

The software body said it remains confident about its projection for 16-18 per cent growth of the Indian IT industry in 2011-12 despite economic uncertainty in the US and European markets.

Source:http://www.business-standard.com/india/news/bpo-industry-sees-growth-despite-macro-challenges/446961/

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PAL sends out termination notices to employees

August 26th, 2011

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Philippine Airlines (PAL) is pushing through with its outsourcing plan despite threats by the affected employees to strike and possibly paralyze company operations.

In a statement on Thursday, PAL said it had started sending termination notices to the estimated 2,600 employees in its in-flight catering, call center reservations and airport service departments.

This followed the affirmation earlier this month by the Office of the President of PAL’s plan to outsource some its job requirements as a legal exercise of “management prerogative” aimed at cutting costs.

“We need this for the long-term survival of PAL. We need to spin off these operations so we can focus on our core business,” PAL president and chief operating officer Jaime J. Bautista told reporters.

The terminations will take effect on Sept. 30, while those who agree to be absorbed by the outsource companies would have to report to their new jobs on Oct. 1.

“We assure the affected workers they will receive their separation pay and other benefits that are at par, if not better, than industry standards. Guaranteed employment also awaits them at our third-party service providers,” he said.

Severance package

SkyKitchen and SkyLogistics, companies owned by Cebu-based businessman Manny Osmeña, will take over the airline’s catering and airport service operations, respectively.

Philippine Long Distance Telephone Co.-owned business process outsourcing firm SPI Global, meanwhile, will take on the airline’s call center operations.

PAL will spend about P2.5 billion on the severance package. Based on the Oct. 29, 2010, ruling of Labor Secretary Rosalinda Baldoz, PAL workers affected by the spinoff would receive the following: Separation pay of 125 percent of their basic monthly salary for every year of service; P50,000 gratuity pay; 100 percent commutable-to-cash vacation and sick leaves; and trip pass (travel) benefits.

On appeal in the Office of the President, the Department of Labor and Employment’s ruling was affirmed but slightly modified with an increase in the gratuity pay of another P50,000 per worker. Employees have up to Sept. 9 to accept the package.

PAL expects to save between $10 million and $15 million a year from the outsourcing plan.

Workers to appeal

The PAL Employees Association (Palea), which represents the workers to be displaced, said it would file a motion in the Court of Appeals on Friday to stop the outsourcing plan.

The union’s position is that until the courts shall have ruled with finality, the airline should not implement the spinoff.

“The union will exercise and exhaust all available remedies,” said Palea president Gerry Rivera. “If management (implements the outsourcing), we will construe that as a… direct challenge to the strength of the union.”

He declined to say if Palea would go on strike, as it had tried to do earlier this year, but said, “We will explore all our options.”

PAL’s Bautista warned Palea members against participating in a work stoppage. “They might be joining an illegal strike and they can be terminated because of that. They will lose all their retirement benefits,” he said.

He stressed that the outsourcing plan would bring some relief to the company and give it the financial flexibility to improve operations and compete in the crowded air travel market.

New planes

In a letter to shareholders on Thursday, Bautista said the company was planning to replace several of its aging aircraft with more efficient planes.

“To stay competitive, our fleet of Boeing 747s, Airbus 340-300s, A330-300s and A320-200s need to be replaced with newer technology and more fuel efficient aircraft over the next few years as they reach the end of their economic lives,” he said.

He said most planes in the company’s fleet of 36 were acquired in the early to mid-1990s. “Among local carriers, PAL has the widest network, a competitive advantage that we need to leverage and reinforce,” he said.

He said having more efficient planes would allow the company to offer lower fares and attract more passengers.

Source:http://newsinfo.inquirer.net/47929/pal-sends-out-termination-notices-to-employees

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US, India win from outsourcing of services

August 26th, 2011

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Outsourcing of services has been a persistent cause of panic and protectionism in recent years, especially in the United States since the 2004 presidential election.

Back then, the Democratic candidate, Senator John Kerry, upon hearing that digital x-rays had been outsourced from Massachusetts General Hospital in Boston for examination by radiologists in India, denounced firms that outsourced as Benedict Arnolds, the most infamous traitor in US history.

Kerry’s misstep was followed by alarm over outsourcing across the West. If free trade is to regain the support of statesmen who now hesitate over liberalising trade with developing countries, the myths that turn outsourcing into an epithet must be countered.

Myth 1: Outsourcing will be like a tsunami

While even a shrewd economist like the former US Federal Reserve Board member Alan Blinder thought this, it is not likely for several reasons, both “natural” and manmade. Consider just two. First, it is simply not possible to outsource everything. For example, the fact that I can call someone in Bangalore to tell me how to fix a computer problem presupposes that I can understand her instructions.

I tried this with a Dell computer and gave up after repeated attempts. I was so desperate that I asked Michael Dell, whom I met at the World Economic Forum in Davos, for a replacement. That is a remedy unavailable to others, of course. So Dell has now given up relying on call centers. Besides, many “electronic plumbers” have emerged who will come to your computer and fix the problem while you while away the hours working where your competence lies.

Second, there are manmade restrictions to outsourcing particular types of expertise: professional organisations often intervene to kill outsourcing simply by requiring credentials that only they can provide. Thus, foreign radiologists need US certification before they are allowed to read the x-rays sent from the US. Until recently, only two foreign firms qualified.

Myth 2: Outsourcing will be only from rich to poor

There is a lot of two-way trade in manufactures, even within a single industry. Economists call it “intra-industry” trade. But when it comes to services, the popular fear is that outsourcing will go in only one direction. This fear is baseless.

Indeed, there has been substantial growth in “reverse outsourcing,” i.e., “insourcing.” Indian firms like Infosys and Wipro, giants in the information-technology sector, are now looking for cutting-edge services and highgrade talent as they compete for local markets such as the US. At IQor, the hugely successful outsourcing entrepreneur Vikas Kapoor now has 12 US locations, which account for half of its 11,000 employees.

Source:http://economictimes.indiatimes.com/opinion/guest-writer/us-india-win-from-outsourcing-of-services/articleshow/9726603.cms

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Georgia CIO Calvin Rhodes Discusses Outsourcing and Cloud Computing

August 26th, 2011

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alvin Rhodes, CIO of Georgia, is part of a growing number of state IT chiefs who have spent most of their careers in the private sector. Prior to becoming state CIO in January, Rhodes served as managing partner at Paladin Investments, a private firm he established in 2009. The bulk of his career – 27 years – was spent at Fulton Paper Company, where he served as executive vice president. Rhodes spoke to Government Technology about his move to the public sector and the challenges he’s facing.

What tops your list of priorities?
We just finished with our budget issues and the Legislature, and that became a priority because of timing since we have a part-time Legislature. And being new to state government, it’s not only trying to learn the process, but making sure we got the right message to the right people in the Legislature so we addressed any concerns they had.
Our state has embraced outsourcing of our IT infrastructure, which has been a five- to six-year effort. So that’s where a lot of my attention and focus is on a daily basis — focusing on the strategy and really trying to leverage where we have had some great successes.

The state has been a leader in outsourcing. What is your assessment so far?
We spent a lot of energy on a reassessment to improve how we get things accomplished. We’re trying to keep agency buy-in and keep them at the table, which is really important. I think you have to show them accomplishments and that you’re moving through their priorities. That’s why you have to keep the communication up. Even when you think you’re doing a great job communicating, they have so many other areas they’re focused on that you truly have to keep coming back and driving the message. We have to work together to be successful in an outsourcing environment.

Are there certain technologies that particularly intrigue you?
From a technology standpoint, the whole focus on cloud computing and trying to figure out policy-wise where that fits comes to mind. We have been more focused on the private cloud as far as concerns about security and in continuity of services. I think you have some agencies that look at the cost and think they can provide a Gmail solution. But then you lay that against open record requests and those types of things, where you have to be able to respond quickly. In government you have to make sure that you meet regulatory requirements.

If there is one thing you could change about how government works, what would that be?
I’d put some distance between the new administration coming in and our part-time Legislature meeting — it started at the same time and it was like, “Turn on the fire hose and absorb as much as you can.” You’re at all the briefings trying to absorb all this information. At the same time, you’re feeling like the Legislature thinks you are maybe not as prepared as you would like to be.

Source:http://www.govtech.com/budget-finance/Georgia-CIO-Calvin-Rhodes.html

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Telecom trade unions issue strike ultimatum

August 26th, 2011

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Trade unionists have given South Africa’s top telecommunications companies two weeks to address the issue of reduced benefit packages for retired workers and other grievances or face “total shutdown” industrial action.

Among other demands of the Communication Workers Union (CWU) sent to Telkom, Vodacom and South African Post Office (Sapo) is outsourcing which the union claims is cutting jobs.

CWU Chairman for Gauteng Aubrey Tshabalala said the union would host its General Shop Stewards Council following the dispute on substantive negotiations at Sapo and Telkom SA.

“As CWU in Gauteng, we consider what has been tabled at the negotiations by Sapo and Telkom SA an insult, and we note that there are allegations of corruption in the ICT sector in general. As Gauteng we’re calling for a total shutdown (strike) at Sapo; Telkom and subsidiary companies of Vodacom should address our demands by end of this week,” said Tshabalala.

He said the looming strike would include Vodacom SA subsidiary companies arguing that there was reduction of benefits for workers as a result of outsourcing of some departments in Vodacom.

“Our members are ready to go on the streets and it will be one of the biggest industrial actions ever experienced in the industry.To us one job lost is one too many,” said Tshabalala.

About 6 000 workers were either retired or persuaded to go on retirement by Telkom and Vodacom with the unions accusing outsourcing as the root cause of job losses.

Source:http://www.itnewsafrica.com/2011/08/telecom-trade-unions-issue-strike-ultimatum/

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