Posts Tagged ‘BPO’

Value of IT outsourcing deals in the UK up 15%

February 16th, 2015

The total value of IT outsourcing contracts agreed in the UK last year rose 15% on 2013 figures, according to new research.Outsourcing70

IT outsourcing (ITO) contracts agreed in 2014 totalled £3.44 billion in value, with nearly a third of that value accounted for by deals struck in the energy and utilities sector.

Those deals were worth £1.05bn and accounted for most of the 187% year-on-year rise in the sector on £373 million spent on all outsourcing deals in the sector in 2013.
The figures were revealed by BPO provider arvato in its UK Outsourcing Index for 2014. The data was based on information complied by outsourcing analysts NelsonHall.

According to the report, the UK’s outsourcing market was worth £6.65bn in 2014, with £3.1bn of contracts agreed business process outsourcing (BPO) deals. Contracts worth £109 million were agreed representing a mix of ITO and BPO arrangements.

“The most in-demand ITO services were multi-scope infrastructure management, with £899 million of spend, application management, worth a combined £772 million and network management contracts totalling £485 million,” arvato said.

The report revealed that public sector outsourcing contracts agreed in the UK last year had a total value of £2.49bn and that just 8% of all outsourcing deals in the public and private sectors signed by UK-based organisations in 2014 “involved work being delivered entirely offshore”.

Debra Maxwell, managing director of arvato UK, said: “Outsourcing has mistakenly become synonymous with offshoring, yet our research demonstrates that UK delivery is continuing to play a fundamental role in the industry as customer requirements become more sophisticated.”

“Offshoring will always have a role to play in meeting certain business’ needs but the demand for more sophisticated solutions, combined with salary inflation in traditional offshore locations, means UK-based delivery is set to continue to dominate,” she said.

The report also highlighted changes in the way that customer relationship management functions are being delivered by organisations. More than 60% of third parties delivering these services now provide “multi-channel” services, up from 40% in 2013.

NelsonHall said. “Whereas relatively recently contact centre outsourcing contracts in the UK were typically for voice only services, in 2014 it was the norm for customer management services contracts to be multi-channel in nature, with email, web chat, and even social media support commonplace. This was true across both the private and public sectors, with the e-government initiative ensuring that all local government customer services contracts announced were widely multi-channel in nature.”

In the financial services sector there was a rise in the number of outsourcing contracts entered into for platform-based services. In 2013, a quarter of all UK outsourcing contracts in the sector were for platform-based services, but this rose to 40% last year, according to the report. New outsourcing deals agreed in the sector in 2014 had a total value of £1.1bn, making it “the most active private sector”, it said.


Infosys to provide outsourcing services to Dutch insurance company

February 9th, 2015

Infosys BPO today said it has secured an IT services deal with Dutch insurance services firm a.s.r. for supporting back-office operations.Outsourcing5

The BPO services arm of the Bangalore-based firm, Infosys BPO, will supply back-office services for the a.s.r. labelled pensions administration system from April 1, 2015, Infosys said in a statement.

Eighty seven employees of a.s.r. will be transferred to Infosys BPO. The contract was signed at the end of January by a.s.r. CEO Jos Baeten and from Infosys BPO CEO and Managing Director Anup Uppadhayay, it added.

a.s.r. also offers a wide range of financial products covering non-life, life and income protection insurance, group and individual pensions, health insurance and travel & leisure and funeral insurance. It also invests in developing and operating real estate.

“To support our vision on continuous improvement of our client services and to be more cost effective, we have selected Infosys BPO to run our pensions back-office administration,” Baeten said.

Uppadhayay said Organisations like a.s.r. need to be focused on their core business and are therefore looking to partner with experts like Infosys BPO to streamline their operations and enable seamless running of business processes.


Why IT Honchos are Queuing up to Meet Barack Obama

January 27th, 2015

The US is the biggest market for India’s over $100-billion outsourcing industry and it also contributes to the creation of lakhs of jobs in the IT sector. Unsurprisingly, the delegation of Indian CEOs meeting US President Barack Obama is packed with IT honchos. Infosys founder NR Narayana Murthy, current CEO Vishal Sikka, M&M chief Anand Mahindra, who is also the chairman of Tech Mahindra, and Cyrus Mistry, who as head of Tata Sons is also the chairman of India’s biggest outsourcer TCS, are all representing India Inc at the meeting with President Obama on Monday.Outsourcing57

Here’s why the IT industry is key to Indo-US trade:

1) The IT industry is estimated to contribute nearly 25 per cent to total domestic exports (merchandise plus services).

2) Indian firms get a lot of business from US, while American companies benefit from lower costs in the country; they also gain access to extensive intellectual capital, which enables them to concentrate on their core competencies.

3) Initially, Indian IT firms provided low-cost technical support and fixed software bugs, but now they optimise financial transactions and develop advance technologies. So, companies are moving up the value chain.

4) Indian firms are increasingly expanding their presence in the US by setting up onshore businesses. Most of the leading Indian IT companies have set up their sales and marketing offices and delivery operations in various US cities.

5) Till 2010-11, Indian IT-BPO sector supported 2.80 lakh jobs in the US, according to Nasscom. Over the last few years, the trend has picked up. Infosys hired 2,000 employees in Wisconsin in 2012; TCS hired 1600 in 2013-14 and plans to add another 2,000 in 2014-15.

6) The IT industry leads in total merger and acquisitions with US companies. Between October 2012 and December 2014, the IT sector led the M&A pack with 29 out of 71 total outbound acquisitions in the US, according to a study by EY on behalf of industry body Ficci.

7) US is likely to continue to be the favourite destination for Indian IT-BPO players because of large scale reforms in the healthcare segment (being undertaken by the US government) and Big Data and automation wave is luring tech companies.

8) According to a study by Egon Zehnder, in 2011 S&P 500 companies had more Indian CEOs than of any other nationality except American. Shantanu Narayen (CEO, Adobe Systems) and Satya Nadella (CEO, Microsoft) are some of the leaders heading global US tech firms.

9) People of Indian origin dominate US-based tech-start-ups funded by immigrants. According to an EY-Ficci study, India-born entrepreneurs represented 33 per cent of such companies.

10) A significant number of workforce in tech companies such as Google and Microsoft are of Indian origin. Sundar Pichai is leading Google’s Android, Chrome and Google app divisions; Amit Singhal is heading Google’s core ranking team and Krishna Bharat is leading Google’s news product team.


Kakinada SEZ opens rural BPO

January 22nd, 2015

In an attempt to promote the Business Process Outsourcing (BPO) business in rural pockets, the Kakinada Special Economic Zone (KSEZ) has opened a state-of-the-art Rural BPO at Kotha Mulapeta village of Uppada Kothapalli mandal on Wednesday.Outsourcing51

The KSEZ, in association with the Tata Business Support Services Limited (TBSSL), one of the largest domestic BPO services companies in India, has set up the centre for which 20 youths from the relief and rehabilitation colony have been recruited.

The BPO was inaugurated jointly by GMR-KSEZ president Prasanna Challa and TBSSL MD Srinivas Koppolu at a programme at Kotha Mulapeta.

Mr. Srinivas Koppolu said the centre had the capacity to provide job to 200 youths and its operations would commence from the next month. Mr. Prasanna Challa said that the KSEZwould provide world-class infrastructure, including digital connectivity to the Rural BPO.

“Unemployed youth from the villages in and around the KSEZ will be imparted with pre-employment training by the GMR Varalakshmi Foundation, the CSR wing of the group,” he said.

“Priority will be given to the evacuees in and those which have parted their land to the KSEZ while providing employment,” he said.

Around 200 local youths will be given employment in the project.


Tax break compromise may hurt BPO industry’s provincial push

January 20th, 2015

The country’s business process outsourcing (BPO) association said a proposed change in tax incentives will make it tougher for the industry to expand outside Metro Manila and major urban areas.Outsourcing49

The finance and trade departments this month said they broke a more than 15-year impasse on income tax holidays, an exemption from income tax for up to eight years meant to attract investors.

The departments, which are concerned with tax collection and with attracting investment respectively, said they will propose to Congress that the incentive be scrapped from the Board of Investments’ list of perks in exchange for a 15 percent income tax — lower than the regular rate of 30 percent — for 15 years.

They also said the Philippine Economic Zone Authority, where most BPOs get their incentives, can continue to give income tax holidays but only up to 4 years. The PEZA currently gives up to 6 years for BPOs in less developed areas. This has helped the fast-growing industry expand even after tapping out potential recruits in more developed areas.

“The change will make us less competitive,” Jomari Mercado, president of the IT and Business Processing Association of the Philippines (IBPAP), said in a phone interview. “When you have a country like Malaysia getting more and more aggressive, and with ASEAN integration, that adds to the risk. Our incentive program will pale in comparison.”

Mercado said 30 percent of BPO operations are now in less developed areas. But he says there’s a benefit to ending the debate.

“In the worst-case scenario, I would rather the rules are clear,” he said.

Mercado said IBPAP will press a partnership with the Commission on Higher Education (CHED) and state colleges and universities to make up in human resources what the industry will lose in tax breaks.

He said the first 600 participants in a CHED program tailored for BPOs are now in the 4-month internships that end the 2-year program.

He said under the program, college students sign up for an additional 21 units, including a 6-unit, 600-hour internship, meant to improve communication, critical thinking and other skills.

Mercado said the program now has 3,000 students in 12 colleges and universities, and the target is 20,000 students in 17 institutions.


Sri Lanka’s ICT, BPO SECTOR targets $1 B revenue in 2015

January 13th, 2015

The Information and Communications Technology (ICT) and the Business Process Outsourcing (BPO) sector in Sri Lanka is eyeing revenue of $1 billion by 2015 and $5 billion by 2020, and poised to become the country’s largest foreign exchange earner, a report in the government website showed.Outsourcing43

Quoting figures from the Institute of Business Process Outsourcing (IBPO), the report also said the sector generated more than $400 million export income in 2014.

Set up by the Youth Affairs and Skills Development Ministry in collaboration with the National Youth Corps (NYC), IBPO is the country’s first training institute for Business Process Outsourcing, which aims to attract as many youth to join the industry in the next two years.

It offers skills training in back office operations, customer care, finance and technical support in industries such as hotels, travel, telecom, BPO, call centres and financial services.

According to the IBPO, the industry forecast for revenue growth can be realised only if his industry can increase its BPO talent-pool annually by at least 15,000-20,000  for the next two three years.

“Looking at the prospects in the BPO sector, the Sri Lankan government is all set to provide an environment that is conducive for the growth of BPO industry,” it said in its website.

Meanwhile, the Sri Lankan Association of Software and Service Companies (SLASSCOM) is also committed to supporting the growth of the industry.

Last November, Sri Lanka won the National Outsourcing Association (NOA) Offshoring Destination of the Year Award 2014 in London, which SLASSCOM said validates that the country as a destination for outsourcing of information technology and Business Process Management.

Jayantha De Silva, Chairman of SLASSCOM, said in a news release that  winning theaward for two years in a row has put Sri Lanka on the map, especially in niche markets of Product Engineering and FAO.


IT firms seek to ensure talent pool to tap SMAC technologies

January 8th, 2015

It’s back to school for India’s information technology firms, working with academic institutions and setting up in-house institutes to groom the right talent as these companies move to social media, mobility, analytics and cloud, or SMAC, technologies. Outsourcing38

Tech Mahindra Ltd, India’s fifth largest software services exporter, is talking to the Indian Academy of Sciences-Bangalore, Indian Institute of Technology-Bombay and Indian Institute of Technology-Hyderabad to co-develop courses in cyber robotics and predictive analytics, said a company spokesperson.

In 2013, Tech Mahindra had set up the Mahindra École Centrale in Hyderabad along with École Centrale Paris university of France to train students in contemporary industry practices. In 2014, it started a programme similar to Infosys Ltd’s campus connect programme that allows fresh recruits to interact with the management once a month.

Tech Mahindra’s infrastructure management services academy set up last year has inked partnerships with five universities—Chandigarh University, JSS Mahavidyapeetha in Mysore, Kalinga Institute of Industrial Technology in Bhubaneswar, Karpagam University in Coimbatore and Dr. Mahalingam College of Engineering and Technology in Pollachi—to hire students trained on a co-developed curriculum.

The company will shortly form partnerships with other colleges also, the spokesperson added. Similarly, in 2013, Hexaware Technologies Ltd, a mid-tier software services firm, set up Hexavarsity in Chennai.

Persistent Systems Ltd, another mid-tier software services firm, launched the Persistent Computing Institute on 11 November 2014 in partnership with two colleges in Pune for training in new digital technologies, said Sunder Sarangan, chief marketing officer.

Meanwhile, industry body Nasscom has launched pilot programmes at 8-10 engineering colleges and IT services companies to create a curriculum that capture 64 unique entry-level job profiles identified by the IT and business process outsourcing (BPO) industry, through its National Skill Development Council.

“While work is in progress, we hope to see these unique courses go mainstream within the next two years,” said Sangeeta Gupta, senior vice-president of Nasscom.

The need to train fresh graduates in new skills and ensure that they remain employable is important since the $118 billion Indian IT industry added about 180,000 new employees in 2013-2014, 70% of which were fresh hires, according to Nasscom.

Though seven out of ten candidates from the Indian Institutes of Technology (IITs) are employable, only 55% are ready for their job, said Harpreet Singh Grover, chief executive officer and co-founder of Co-Cubes, one of India’s largest assessment and campus hiring firms, in a National Employability Analysis Report released 18 November.

“Training requirement still exists to develop the required skillset for the rest 15% of IIT graduates. When it comes to the National Institutes of Technology (NITs), the number falls to 35%, with only 22% readily employable and the remaining 13% training requirements. Assessments and online proctoring are fast becoming the go to tools for corporates and educational institutes,” Grover said in the report.

IT services companies are also resorting to innovative hiring methods.

HCL Technologies Ltd, India’s fourth-largest software services firm, launched Hiral Videos (which stands for “hire” and “viral”), a recruitment campaign through videos with select job profile descriptions to find the right talent. The company says it has received over 9,000 job applications through this route within a month of its launch.

“In the coming year (2015), social media, virtual networks, campus connect engagements and employee references and networks are just few of the tools recruiters will use to find the right talent,” said Prithvi Shergill, chief human resources officer, HCL Technologies.

“Hiring quality talent will be a focal point, and the use of non-traditional methods for recruitment like mobile technology will be one trend to look out for in 2015. Also, we will see a move towards hiring for particular skills as opposed to capacity or just numbers,” said Richard Lobo, vice-president and head of human resource development units for Infosys.


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