Archive for August, 2011

Oswegoland Park Board not empowered to impose term limits

August 26th, 2011

The Oswegoland Park District will not be placing term limits on its board members because it does not have the authority to do so.

The board met Thursday to discuss the option of limiting the number of six-year terms members of the board could serve, a proposal brought to the board by a resident and added to the agenda by newly elected Commissioner Len Wass.

But according to the opinion of the district’s attorney, Derke Price, the board does not have the authority under Illinois statues to impose term limits.

“There is no statutory basis for imposing term limits on the office of Park Commissioner,” wrote Price. “The Park Code sets forth the powers of the District and while the District is authorized to choose between five and seven commissioners and four- and six-year terms, it is not authorized to impose term limits.”

Still, Wass said that pursuing a change in the law at the state level would benefit the district by bringing new ideas to the board.

“It may be out of our purview, but if we feel strongly, why don’t we try to get that changed?” Wass said. “It’s our country, or it used to be anyway.”

But other commissioners said they had no interest in attempting to change the state law.

“I have to be honest. I have no interest in looking at this,” said Board President Bob Mattingly. “I think there was a good unofficial referendum on this last April 5 when I won another six-year term. I was elected to my fourth term, so I think the community spoke on it.”

Mattingly has been a commissioner for 18 years, of which he has spent eight years as board president.

Deb Krase has served on the board since 1989, including an eight-year stint as board president.

Danielle Ebersole was first elected in 2003.

Wass and Commissioner Roy White were elected to the board in April.

Oswegoland Park Board members are now elected to six-year terms, though the option of shorter four-year terms could be a topic for discussion at board workshop at a to-be-determined date in the next month.

But as early as next week, another park board proposal — outsourcing management of Fox Bend Golf Course — will be brought to the Golf Committee for discussion on whether outsourcing could cut costs.

“I am not a proponent of outsourcing, neither am I against it,” said Wass. “I would like to see movement to gather information.”

Commissioner and golfer Roy White said he’d first like to see opinions gathered from the golfers who use the course, rather than from potential course management companies.

But if you’d prefer to ignore the stress of taxation versus recreation, the Park District has a suggestion for that, too. Conditions at Fox Bend are “coming around” after a soggy summer, according to staff.

The course is investigating a possible Groupon deal to get the word out that the greens are, well, green again.

The Golf Committee will meet at 5 p.m. on Monday at the Prairie Point Center, 313 E. Washington St., Oswego.

Source:http://beaconnews.suntimes.com/news/7277058-418/oswegoland-park-board-not-empowered-to-impose-term-limits.html

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Indirect Outsourcing Overview from Archstone

August 26th, 2011

So you may have outsourced your IT infrastructure, your application development and maintenance, even some of your finance functions — but have you considered outsourcing your indirect procurement? Procurement outsourcing is increasingly becoming a priority business strategy for organizations around the world as they react to global market dynamics and execute their business objectives. Though many companies have or are considering IT and finance outsourcing, some are now looking at indirect procurement as a value driver for increased bottom line savings. Indirect procurement outsourcing savings usually exceed savings from other towers, such as finance, exponentially. To truly achieve those savings and create an environment for additional value creation with a third party provider, detailed effort and proper contractual requirements need to be applied to develop statements of work, service level agreements, agreed-to savings calculation methodology and other contractually required documents to ensure a successful partnership.
Choosing the Right Provider
It is important to understand the overall outsourcing strategy when identifying possible partnerships. Many providers have global service delivery capabilities and ability to perform multi-tower (finance, IT, HR, procurement) processes, thus reducing your supply base and governance support should other functions in your organization decide to outsource. However, some providers are solely focused on sourcing and procurement in specific geographical markets representing a best of breed solution for your specific category requirements such as MRO or advertising.

Statements of Work
Statements of Work need to be very detailed and contain a responsibility matrix to avoid confusion and finger pointing as to who is responsible for a given task. All too often, SOWs are too general and lead to relationship problems, where the client believes the work is covered under the agreement and the service provider feels it is additional scope, wants a change order and increase in pricing. This is where the relationship begins to break down.

Service Level Agreements
Service levels should be only high enough to deliver the expected value. Gold plating SLA’s leads to unnecessary added cost with limited to no additional value. Specific and targeted SLA’s should also have financial penalties that are meaningful to ensure the service provider is focused on those performance areas that truly affect the business.

Identified vs. Realized Savings
Many service providers will perform a sourcing effort to “identify” potential savings. Although this process is required to contractually buy the goods at lower prices, they are only savings on paper. It is imperative to “realize” those savings at the bottom line, which means driving compliance and demand management. Reducing budgets accordingly is one way of ensuring those savings are realized. A contractually agreed to, detailed savings methodology is essential to any outsourcing contract to ensure both parties agree to how the savings are calculated. Service providers should have their fees at risk for missing savings targets.

Governance Organizational Structure
Governance organizations should, at minimum, have individuals that align with the service provider’s structure. Individuals responsible for the relationship management and communications, as well as contract, finance, and performance managers are required with any governance model. The governance team must be empowered to either resolve or quickly escalate issues to senior management to avoid minor issues from becoming major problems. Furthermore, the governance team should have a clear view of business strategies, objectives and future requirements that may affect the agreement. And, as in any BPO arrangement, it is imperative that a strong governance executive effectively communicates not only issues and strategies associated with the agreement but also corporate objectives. Outsourcing is not abdicating responsibility; it is simply one aspect of an effective service delivery model.

Source:http://www.spendmatters.com/index.cfm/2011/8/25/Indirect-Outsourcing-Overview-from-Archstone

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Government relents on new IT security rules, exempts BPOs

August 26th, 2011

After the angst expressed by the $14-billion Indian BPO industry over the new data protection rules this year, the government has finally relented. It has clarified that the new rules won’t apply to outsourcing providers located in India.

After Nasscom’s submission, the government this week issued a clarification stating that BPOs located in India will be governed only by specific contracts signed with their global and Indian customers.

The rules, in their previous form, were impacting a large number of BPOs that collect credit card or financial information from companies and individuals in US or Europe. Sensitive information here refers to physical, physiological and mental health condition, medical records and history. All medical transcription firms operating out of India have to have access to medical records of patients in US.

The new Section 43A of the Indian IT Act stated that a corporate shall have to obtain permission through letter or fax or email from each client before collection of sensitive information. Thus, BPOs would have to inform the client regarding purpose of usage before collection of such information, if they went by the IT rules 2011.

Nasscom and Data Security Council of India have welcomed the clarification issued by the IT ministry on the notified Rules under Section 43A of the IT Act. The government has added that consent can now given by any mode of electronic communication, such as SMS or call, and not restricted to consent provided through letter, fax or email.

“The rules issued recently had created possible interpretation issues for outsourcing companies. We thank the government for their support in issuing the necessary clarifications,” said Nasscom president Som Mittal.

The rules related to implementation of reasonable security practices by body corporate for sensitive personal information, which here refers to financial details related to bank account, credit card or other payment instruments.

A large number of BPOs in India have clients such as American Express, Citibank, HSBC, Bank of America and collect financial information before undertaking any transaction. The government’s clarification, however, advises the service providers to follow ‘reasonable security practices’ for protecting sensitive personal information processed by them.

Source:http://economictimes.indiatimes.com/tech/ites/government-relents-on-new-it-security-rules-exempts-bpos/articleshow/9739251.cms

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It’s BPOs’ turn to enter the Dragon

August 26th, 2011

After information technology, it’s now the turn of Indian business process outsourcing (BPO) services companies to harness China as a delivery location.

With a large talent pool yet to be tapped and a growing number of English speakers coming out of colleges in recent years, China is becoming an attractive offshore destinations for the Indian BPO sector. Many BPO majors, including Aegis, TCS BPO and Hinduja Global Solutions (HGS), are either looking at entering or expanding their presence in China.

Indian IT majors such as TCS, Infosys, Wipro, HCL Technologies and Mahindra Satyam, are already present in China. These companies are mostly servicing global clients from these centres. Recently, Infosys said it was setting up its own campus in China, the first by any Indian IT company there. However, BPOs were maintaining a cautious approach.
“We have been trying to enter China through a joint venture, as it is difficult to enter the market on your own. Thus, it is taking a long time. However, we hope to close the JV in China by the end of this year,” said Partha Desarkar, global CEO, HGS. The company had been trying to crack the China market for long.

TCS employs about 500 people in China across two centres for its BPO business. It is planning to expand its presence. TCS BPO global head, Abid Ali Neemuchwala, says Indian BPO firms are no longer merely cost-centric but are focusing on harnessing talent from across the globe for enhancing domain capability.

According to Nasscom, China has the potential to develop a large IT-BPO industry. Underlying this is substantial domestic market potential, a sizable educated workforce and strong government support on developing the IT-BPO sector, says a Nasscom report.

“In non-voice BPO services, China will take over India as an attractive destination. In the next four years, you will see a generation of English-speaking Chinese coming up. They have worked really hard in the last 10 years to improve on this,” said Aparup Sengupta, CEO & MD of Aegis.

Aegis did not have a presence in China so far and is is now thinking of centres in the country. “We are looking at it,” said Sengupta.

A few BPO companies still maintain a cautious approach. Said Rohit Kapoor, president and CEO of EXL Services, “We did explore China last year. We have decided that it’s not the best time for us to go there. The markets more interesting to us right now, in terms of onshore capability, are the US, South Africa and Latin America.”

Genpact, among Indian BPOs, has considerable presence in China. The company owns five centres there, which employ a little over 3,000 people. Some analysts, however, feel the IT -BPO industry in China is still in its early phases. Frequent comparisons with India and commentary positioning China as a substitute destination is misplaced, they say.

Source:http://www.business-standard.com/india/news/its-bpos-turn-to-enterdragon/447110/

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TN to come up with restructured BPO policy

August 26th, 2011

The Tamil Nadu government’s Information Technology department plans to create employment opportunities for the rural youth in the IT sector by setting up more Business Process Outsourcing (BPO) centres in rural areas.

According to the department’s note, an enhanced, restructured rural BPO policy will be devised so as to attract entrepreneurs to set up their centres in rural areas. By establishing these centres, job opportunities will be created in rural areas on par with the urban areas.

As a first step, ELCOT would set up a rural BPO centre would be set up at Tiruchirapalli in the Srirangam Assembly Constituency from where chief minister J Jayalalithaa won her Assembly seat.
A Disaster Recovery Centre (DRC) would be set up at Madurai at an estimated cost of Rs 60 crore. It would be a mirror image of the State Data Centre (SDC) and is expected to ensure zero data loss in real time application service delivery.

Among other measures, cloud computing based personal computers would be provided to village administrative officers and revenue inspectors. The pilot e-districts of Krishnagiri, Ariyalur, Perambalur, Thiruvarur, Coimbatore and the Nilgiris would be covered at an approximate one-time cost of Rs 1.5 crore and a recurring cost of Rs 1.7 crore.

The government would also set up a citizen contact centre at Chennai at a cost of Rs 6 crore. It would offer services like grievance redressal, clarifications on government schemes, contact details of government offices and status of applications/petitions seeking services.

The e-district project piloted in Krishnagiri district aims at taking the government services to the last mile with the departments like revenue, social welfare, backward classes and most backward classes, Adi Dravidar and tribal welfare departments have started providing services at the village-level through common service centres (CSC).

Source:http://www.business-standard.com/india/news/tn-to-come-uprestructured-bpo-policy/447033/

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Clarification on new IT Act Rules brings relief to Indian outsourcing firms

August 26th, 2011

The IT Department has clarified that overseas clients, who outsource work to Indian service providers, will not be required to take additional consent from their own customers on collection and usage of personal data.

The move comes as a relief to the Indian outsourcing industry, as the rules that were earlier notified in April this year under Section 43 (A) of Information Technology Act, had created confusion in the BPO industry and led to interpretations that such a permission may be required.

In effect, the latest clarification means that although the Indian service provider will be required to implement reasonable security practices, it will not have to inform the individual customers (of the overseas client, say, a US bank) about the purpose of usage of data while collecting it.

It has been clarified that overseas customers of IT and BPO industry will continue to be governed by the data protection legislations in their respective countries and that the service providers in India, will, in turn, be governed by contract signed with the entity that has outsourced the work.

“The April rules were leading to misinterpretation as if they imposed an additional consent burden on outsourcer…This was seen as a disincentive for the outsourcing industry. The Department has clarified that this was not the intent and that the rules (on sensitive personal data or information) are not applicable to companies outside India,” says Dr Kamlesh Bajaj, CEO, Data Security Council of India.

In a statement, Mr Som Mittal, President of Nasscom said that data security and privacy were key enablers for the growth of the global sourcing sector. “However, the rules issued (earlier this year) had created possible interpretation issues for outsourcing companies and we thank the government for their support in issuing the necessary clarifications,” Mr Mittal said.

Source:http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2397172.ece

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Infosys BPO Renews Contract With Alcoa

August 26th, 2011

Infosys BPO, a leading player in the outsourcing services sector, today announced a five year renewal of its contract with Alcoa Global Business Services (GBS). Alcoa is the world’s leading producer of aluminum and alumina with over USD 21 billion in revenues. Infosys BPO’s partnership with Alcoa started in 2004 and has grown to include services across Finance and Accounting (F&A) and Knowledge Services (KS) processes.

Ritesh Idnani, COO, Infosys BPO, said, “We at Infosys BPO greatly value our long association with Alcoa, which is known for being a best-in-class finance organization. As a key partner enabling this, we continue to work with Alcoa to explore avenues of continually adding business value. The contract renewal for five more years is testimony to our collaborative partnership and delivery excellence.”

Today, Infosys BPO’s engagement with Alcoa has reached a level of excellence and sustained performance that has helped enhance the competitive edge for Alcoa GBS; thereby enabling it to provide different types of services to Alcoa business units in a timely, accurate and cost-effective manner. This in turn, translates into profitable business for the company and good relationships with existing and potential customers.

Source:http://www.marketwatch.com/story/infosys-bpo-renews-contract-with-alcoa-2011-08-25?reflink=MW_news_stmp

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