Posts Tagged ‘BPO’

EXL to open BPO units in Noida and Jaipur SEZs

March 9th, 2010

ExlService Holdings, Inc., a leading provider of outsourcing and transformation services, on Monday announced plans to set up two new
delivery centers in Noida and Jaipur in India. These centers will expand EXL’s global services capacity, support new client acquisitions and enable greater flexibility to meet client requirements. It will also strengthen EXL’s ability to provide a stronger business continuity framework.

The new facilities are located in Special Economic Zones (SEZ). The cost and tax structures of SEZ facilities would help sustain EXL’s competitiveness in the global market. With the addition of these two facilities, EXL will have 16 delivery centers and offices spread across ten locations in six countries.

“It is essential for EXL to provide our clients with a world-class infrastructure that meets their multi-shore global delivery requirements. The expanded service delivery will effectively sustain our leadership position while creating new value propositions for our clients,” said Rohit Kapoor, President and Chief Executive Officer of EXL. “Noida and Jaipur are strategic locations because both these regions offer rich talent pools, robust support infrastructure and are in close proximity to several other EXL delivery centers.”

The new Noida facility will have a capacity of over 800 seats spread over 100,000 square feet in the first phase and another 1400 spread over 120,000 square feet in the second phase. The first phase is expected to be operational in the third quarter of 2010. Noida is currently home to EXL’s six delivery centers.

The Jaipur facility will be EXL’s first center in a tier two Indian location. This facility will have a capacity of approximately 500 seats spread over 38,000 square feet and is expected to be operational in the second quarter of 2010. EXL will focus on providing finance and accounting and transaction processing services from this facility.

Source:http://economictimes.indiatimes.com/infotech/ites/EXL-to-open-BPO-units-in-Noida-and-Jaipur-SEZs/articleshow/5660061.cms

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Tags: BPO EXL IT Jaipur Noida

2009 Top Business Intelligence Data Warehousing Information Technology Outsourcing Vendors, Black Book Survey Results

March 8th, 2010

In 2009, BI data warehousing industry IT outsourcing (ITO) user survey investigated over 258 contracts held by ITO users.
In order to rank the organizations, 18 key performance indicators (KPIs) or criteria were employed, with each respective vendor scored by client type and ranked on a 0-10 scale per KPI.

Key findings
Key finding: most important customer satisfaction KPIs
Client relationship and cultural fit, innovation, reliability and data backup/security are the most important attributes influencing BI and data warehousing services clients’ satisfaction with their 2009 outsourcing providers.

Key finding: vendor dissatisfaction is uncommon in BI/DW outsourcing among top-ranked suppliers Strong dissatisfaction is uncommon in end-to-end BI and data warehousing IT vendors, occurring in less than 2.5% of US client types and 7.7% of UK and European customers.

Key finding: BI/DW services vendor arrangements from a comprehensive/end-to-end ITO niche vendor produced the highest satisfaction rates in 2009 Full-service BI/DW/decision support and enterprise reporting vendors attained the top client experience and satisfaction ranking in 2009. The top three performers, Oracle, IGate and Accenture, championed customer satisfaction and top honors in the individual functions of BI/DW as well.

Source:http://www.officialwire.com/main.php?action=posted_news&rid=108785

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Tags: BPO IT Outsourcing

India plans big telecom revolution in NE

March 8th, 2010

The Government of India has begun an ambitious programme to wire up the entire northeast and remote border regions with telecom, wimax and broadband connectivity and unleash an IT revolution in the region, Minister of State for IT and Communications Sachin Pilot said.
“I believe that the northeast can become a big centre for attracting investments from the private sector – in business process outsourcing (BPOs), knowledge process outsourcing,” Pilot said.
“Young people there have a lot of talent and are easier to train and impart skills to for this kind of work. If we can have rural BPOs then I am sure we can have BPOs in the northeast,” he added.
A bulk of the money under what is called universal service obligation fund, collected by the government from private players to meet the demands of rural connectivity, will be deployed in the northeast, he said.
At the start of this fiscal, more than Rs 18,000 crore was available under this fund.
On a mission to do a “lot more” in the northeast that “has not been done so far”, Pilot said Assam, for example, will see optical fibre cables laid across the state — seen as a must for large data transfers required by such service providers.
“We are launching optical fibre cables at the panchayat level in Assam soon. This will be the first state in India to have it,” Pilot said, adding Wimax services had already been unveiled there last month.
“We launched Wimax in Chaygaon, on the outskirts of Guwahati in Assam. It’s a wireless, high speed internet broadband connectivity — such that people living in a radius of 15 kilometres can access the internet easily,” he said.
Moving beyond Assam, Pilot said the government is also planning a software parks project at Itanagar in Arunachal Pradesh, which will be an export-oriented scheme for developing computer software and extending related professional services.
“I have already met the Chief Minister of Arunachal Pradesh. We are hoping to start this project soon. The state will then have a lot more money from the government of India, which it can’t afford now,” he said.
India’s northeastern region covers the states of Assam, Meghalaya, Manipur, Mizoram, Tripura, Nagaland, Arunachal Pradesh and Sikkim.
Pilot said he is also planning to give the satellite phone facilities to villages in the northeast, which are cut off from others due to their location, along with a much-subsidised tariff.
“There are some places of Arunachal Pradesh, which are 12,000 feet to 14,000 feet high — no spectrum, no mobile phones. Therefore, besides the paramilitary forces, I am trying to give satellite phones to these villages and reduce the call charges,” he said.
In Sikkim, Pilot said, the IT ministry has helped in the setting up of a small business process unit and launched 3G services through the state-run Bharat Sanchar Nigam.

Source:http://www.igovernment.in/site/india-plans-big-telecom-revolution-ne-37069

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Tags: BPO NE Telecom

Telco price wars hit BPO margins

March 6th, 2010

The plethora of new pricing schemes from telecom companies, like ‘one paisa per second’ billing, has squeezed the margins of their business process outsourcing (BPO) partners.

Telcos typically outsource work on customer service (voice) and some back-office operations. BPOs get 70 per cent of their revenue from voice alone. However, Indian telcos are witnessing a dip in volumes and calls due to the pricing and other wars for customer share in an already crowded market. Telcos are now asking their BPO partners for price reductions of 9-15 per cent to protect their own margins.

Since the revenue model of BPOs is subscriber or call-linked (the more calls they take in a day, the higher their revenue), a fall in these impacts their bottom line. Hinduja Group’s BPO arm, Hinduja Global Solutions, is a case. Its net profit for the third quarter (October-December 2009) was down 20 per cent sequentially. It said one reason was the pricing war among telcos.

Firstsource reported a similar quarterly dip. Bank of America Merrill Lynch said operating margins were down three per cent more than expected due to slippage in Indian operations.

Analysts say the dips in calls are because of the way schemes are structured. For instance, many firms provide a SIM card free or allow you to create a special group for low talk-time. A majority of users have at least two to three SIM cards. “Callers just use those SIMs for a particular service. That, in turn, impacts the volumes.”

The variation in this regard can be very high, with the number varying between 30 and 300, says a source from a leading listed BPO firm. And, the ‘per second’ call rates are directly impacting the average revenue per user (ARPUs) of telecom companies. “We have seen telcos retendering business with existing service providers to get better price points,” says Milind Godbole, President, Asia Pacific, Aditya Birla Minacs.

“The cost of service two years back was Rs 2.9 to 3.2 per connect minute (cm). In 2008-09, it came down to Rs 2.2 to 2.7 per cm and today the rates being quoted are Rs 1.5 to 1.7 per cm,” said a source.

BPO firms are, therefore, changing their delivery models. Hinduja Global Solutions and Aditya Birla Minacs are moving to tier-3 and tier-4 cities. ABM’s Godbole says their strategy works on a hub-and-spoke distributed delivery model. “The hub, located out of a Tier-2 city, has 800-1,000 seats and handles 20-25 per cent of volumes across various telcos. The rest of the volume is distributed among the six to seven spokes, the seat capacity in each around 200.”

He says these spokes are in rural areas, so it takes care of issues like attrition, wage inflation and real-estate costs. Partha Sarkar, CEO Hinduja Global Solutions, also feels moving to smaller cities is the only way. “We are reducing volume from tier-1 cities and increasing these from tier-3. This immediately acts as a cost advantage and helps maintain our margins. We are also trying to see if we can consolidate common language capabilities like English and Hindi.”

Source:http://www.business-standard.com/india/news/telco-price-wars-hit-bpo-margins/387691/

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Tags: BPO IT Outsourcing Telco

SAP, Swicon360 and Vodacom business unveil local hosted BPO cloud service

March 5th, 2010

Business technology and international human capital management (HCM) solution provider, Swicon360 has unveiled a new business process outsourcing (BPO) service called HCM Spectrum in the Cloud, in partnership with software group SAP and hosting partner, Vodacom Business.
Swicon360’s HCM Spectrum in the Cloud supports SAP ERP HCM application and completes the company’s range of HCM-focused solutions, now locally hosted in the cloud by South African partner, Vodacom Business.
“In association with industry leaders SAP AG and Vodacom Business, we have introduced a solution that takes human resource management to a new level in making services available as a virtual and easily accessible platform. It is essentially offered as human resources as a service”, said Markus Bucher, CEO at Swicon360.
The new solution allows enterprises and SMEs to cost-effectively access best practices in HCM, without upfront investments in hardware and infrastructure, with cost savings from 30% upto 60%, according to Bucher.
The full-setup includes forecasting, planning and hiring management, SAP support services, HCM on demand services, plus IT services provided by Novell and technical support backed by BasisOne.
HCM Spectrum in the cloud will be distributed throughout Africa in association with business partners and payroll companies such as Deloitte, A&O, TIS.
“We are focusing first on SADC region and Africa. We are in discussion with a partner in Nigeria and with 2 more international partners”, added Bucher.
William Hart, Head of Outsourcing for UK, Ireland and South Africa at SAP, told ITNewsAfrica.com that, although launched in South Africa, the solution would “extend to other African countries in the regional SAP hubs in East Africa, West Africa and SADC. This is the first SaaS platform completely hosted on African soil, with Swicon360 having data centers in South Africa”.
Swicon360 is a SAP-certified provider of BPO services. The company operates in the BPO market with clients like Bosch, Roche, Holcim or Telecom Namibia.

Source:http://www.itnewsafrica.com/?p=5773

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Tags: BPO SAP SWICON360 VODACOM

Tuxedo Money Solutions improves business processes with the help of MSM Software

March 4th, 2010

Tuxedo Money Solutions (Tuxedo) is improving the efficiencies of its IT department and customer support operation, after outsourcing over 50 per cent of its IT function to MSM Software.

MSM Software, which has traditionally specialised in application design and management, has extended its relationship with Tuxedo, following the successful design and support of its bespoke online banking platform. MSM will now be acting as an extension of Tuxedo’s IT team: offering first line support to corporate customers, second line support to call centres, troubleshooting and co-ordination of all other tech suppliers to ensure more efficient and cost effective processes.

David Monty, IT and Operations Director at Tuxedo comments, “We have been working with MSM for four years and have always been impressed with the company’s commitment to our organisation. The team at MSM are highly skilled IT professionals, with a deep understanding of our unique needs so, after reviewing existing infrastructure and processes relating to our IT management, it felt like a natural progression to ask MSM to work with us on a larger scale.

“Outsourcing business functions to specialists has always been part of our business model and, at a time when Tuxedo is growing so rapidly, we didn’t want to waste time by inviting other companies to tender, when we knew MSM was the best the market had to offer. With MSM’s expertise and proven track record, I’m confident that we will see a tangible return on our investment.”

Following a successful few months working with Tuxedo, MSM Software will be offering this extended service to other customers. MSM’s Business Process Outsourcing (BPO) service has been designed to add value to an organisation’s IT service management structure, whilst reducing risk and cost implications.

Thomas Coles, managing director of MSM Software, explains, “With many organisations focusing on core business issues to remain competitive in a challenging climate, IT operations often take a back seat. Yet a proficient IT service management structure is an underlying business critical requirement – and one which many organisations struggle to maintain in-house, without the expertise or man-power available.

“Our BPO service offers an alternative to businesses that recognise the importance of a well-oiled IT service management structure but lack the resources to sustain an in-house function. We’re looking forward to working with both existing and new customers to help them see a genuine return on investment, from handing over the reins to the specialists.”

The BPO offering, which can range from content management of an extranet right through to full IT department function, will form the first step of a change programme, where all processes will be reviewed, documented and streamlined to improve cost efficiencies and reduce risk. In addition, staff and assets may be transferred, with new and broader career paths created for employees, which will add value to the overall operation of the IT function.

Source:http://www.realwire.com/release_detail.asp?ReleaseID=17357

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Tags: BPO IT Software

Outsourcing’s latest trend: Companies should give KPO a chance

March 2nd, 2010

Knowledge process outsourcing (KPO) has reached something of a revered status over the past year or two, hailed as the exciting progression of business process outsourcing (BPO) into better and brighter arenas. But it often feels like the sector isn’t as well developed as some would have us believe.

At last year’s NOA Sourcing Summit, for example, a speaker asked the audience how many delegates could call their existing relationships KPO. Out of a room of 300, only two put up their hands. This doesn’t bode well for the sourcing industry’s next big thing.

In brief, KPO is generally described as the next step for BPO as traditional outsourcing climbs the service value chain. In KPO suppliers in the field are expected to have deeper domain knowledge and the ability to carry out much more complex tasks, moving closer and closer to a company’s ‘core’ business functions.

Until now outsourcing professionals have always been told to hang on to core business functions. In this sense, KPO represents a real evolution in outsourcing rather than a simple transition.

But does it work? In theory, by using skilled workers that were not previously available to them, organisations can enable new services they might not have been able to offer previously.

Extending existing services in this way is where much of the KPO success is coming from. An example is expanding claims processing BPO into more complex fraudulent claim investigation. This method of climbing the value chain has a lot of potential for growth.

The benefits for outsourcing buyers looking into KPO are obvious. Accessing increasingly skilled workers at reasonable costs is, of course, very attractive. When skills are scarce domestically, certain types of KPO are likely to become increasingly popular. It is also clear that the high levels of service from a KPO provider can rarely be matched by an oft-distracted internal department.

Those companies dealing with KPO services also stand to benefit from the increasing complexity of tasks. The more complex and challenging the task, the more likely workers are to be mentally engaged – and thus the more able companies are to attract high-quality staff. For those companies expanding out of traditional BPO, KPO would naturally increase the opportunities for career progression and reduce attrition as a result.

Looking at KPO in such a positive light, it is difficult to see why it has not taken off more forcefully. In 2005 Nasscom predicted Indian KPO would grow from $1.2bn in 2003 to $17bn by the end of this year. According to a new Nasscom report, released in January this year, the Indian KPO market currently stands at $4bn. Even accounting for the recession, this is still significantly wide of the mark.

Though the skills are most certainly there for KPO to take off, something is clearly holding companies back. A central stumbling block seems to be the ‘don’t outsource your central business’ aphorism. Many companies are still unwilling to engage in these kinds of relationships for fear of giving too much away.

The other important hindrance is that companies may be unable to transition to this new outsourcing model. Where existing suppliers push back, it can be easier to hand over higher-value services. But entering into new KPO relationships is a much bigger step.

The governance time involved in KPO can also increase quite significantly which can be a shock for the unprepared. Worries also persist about data, infrastructure and continuity issues, especially when looking offshore.

With existing apathy towards KPO the outlook often appears bleak but the potential is great. The supplier market is currently populated by a large amount of niche players looking for specialised opportunities. But this looks set to change going forward as some consolidate and more established BPOs get in on the act. When you consider the global BPO market may grow to $450bn by 2012, according to predictions by analyst NelsonHall, there is clearly a big opportunity for up-sell.

Now the recession looks to be ending (double dips permitting), the opportunities for companies to grow and enhance through KPO look much more achievable. All that’s left is for suppliers to keep pushing and end-users to work at overcoming their qualms. Advisors, analysts, associations and suppliers all have a part to play here; and though it’s a long road, KPO will make it in the end.

Source:http://www.silicon.com/technology/it-services/2010/03/02/outsourcings-latest-trend-companies-should-give-kpo-a-chance-39745532/

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Tags: BPO IT KPO Outsourcing

Outsourcing your bussines processes in the philippines

March 1st, 2010

As the need for manpower and services in companies around the globe continually increase, so has the number of service providers worldwide offering solutions for business processes. In the Philippines, the business process outsourcing industry has experienced rapid growth since its establishment.
The Philippines has been endowed with a huge competitive, multi-skilled workforce delivering high quality, but cost-efficient services. These attributes resulted in making the Philippines a constant choice of multinational companies as their top source of service providers. All throughout the years the Philippines has embarked into business process outsourcing, many countries have seen and experienced the potentials and capabilities of Filipino workers. The reputation of easily available knowledge-based and skilled workers has gained the country numerous awards recognizing BPO in the Philippines as a flourishing industry that attracts foreign investors to explore the many possibilities of putting up business operations in the country.

In response, the Philippine government has been continually supporting the BPO sector by providing business parks or IT sites in key locations all throughout the country. At this point, the workforce sector is not the only one benefited. As business sites arise, the real estate industry is experiencing significant growth at the same time. Many of these major sites are located in Metro Manila and Cebu. Other minor sites are located in Bacolod City, Cagayan de Oro, Davao City, and some in Dumaguete, Iloilo, and Iligan City. Skilled workers from remote areas can then be easily reached and the vast resource tapped.

Despite negative speculations and oppositions, it is still expected that the outsourcing industry will continue to be a major key player in the Philippine economy in the coming years, helping the country boost up its reputation worldwide. In fact, a number of small service providers has demonstrated evidence of expansion by the circulating series of job ads posted in newspapers and in the internet.

In Cebu Province, PhilWebServices is strategically located in the constantly unfolding city of Mandaue. The company offers web-based solutions such as web design and development, web hosting, online marketing, and outsourced IT services, and caters to both local and international clients since 2003. If you are interested in making us your business partner, PhilWebServices has the competency, proficiency and the resources to deliver viable solutions to help you propel your business to new heights.

Source:http://pr-usa.net/index.php?option=com_content&task=view&id=341432&Itemid=96

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Tags: BPO Outsourcing Philippine

Indian IT jittery, disappointed

February 27th, 2010

The Union Budget 2010 has left the IT industry disappointed and rushing to the finance minister seeking clarifications over the continuance of
the STPI status for software companies.

The apex organisation of IT companies, the National Association of Software and Services Companies (Nasscom) initially did not issue any comment for hours after the Budget speech. A Nasscom spokesperson also indicated that the Association would be seeking certain clarifications from the government.

The Finance Minister, in his Budget speech, did not mention anything about the Indian IT industry’s long-standing demand of granting extension to Software Technology Parks of India (STPI) scheme beyond 2011.

In its Budget last July, the government had extended tax benefits for units in STPI by a year to March 2011. Units set up in these parks are eligible for a 10-year tax holiday, besides other perks.

A number of small and mid-size outsourcing companies function from designated STPI units. As things stand, tax benefits to such units will be phased out after the fiscal year 2010-11.

The BPO industry, in particular, could not hide its dismay. “I am disappointed that the tax holiday under Sec 10A and 10B has not been extended. The BPO industry is a young industry as compared to the IT industry. A longer term extension of the tax holiday would have certainly been beneficial considering our export-oriented revenues have been affected by the global recession as well as pressure on price,” said Ramachandra Panickar, Chief Financial Officer, Intelenet Global Services.

However, many large outsourcing firms have set up shop in special economic zones (SEZs) and will not be impacted significantly. Exports from SEZs are eligible for exemption for a period of 15 years in all – 100% of profits are tax exempt in the first five years, 50% in the next five and 50% in the last five years provided the profits are invested in specified areas.

“The top 50 software companies contribute 60-65% of the revenues of the industry and 90% of the profits. When they grow their business, they will grow into SEZs. Many of the older units have already come out of the purview of tax benefits offered under STPI because they are older than 10 years. It is the smaller firms that have set up STPI units in last few years that will be hit though the government will not gain much in terms of tax inflows,” according to a Nasscom executive.

Noting that the IT industry had hardly found any mention in the Budget this year, Infosys director TV Mohandas Pai said that the industry’s “main request to extend the STPI exemptions had not been considered.”

In its official reaction, Nasscom too noted that there was no move towards announcing parity of incentives between the STPI and the SEZ scheme which is necessary for small companies and development of tier 2 and tier 3 cities. “In line with our recommendation, the IT Taskforce formed by Department of Technology (DIT) had also strongly recommended that the STPIs be brought at par with the SEZs,” read the statement.

“Tax benefits under the STPI Scheme are available till March 31, 2011 and we will engage with the government and through the Ministry of IT to represent for an equitable benefit to the SME sector,” it added

According to Munish Gupta, vice-president, India Operations, GlobalLogic, “IT industry has nothing really to look forward. Though during the
current fiscal year, the IT sector witnessed a significant revival in revenue and the growth is upbeat for the coming calendar year, also there was no mention of extension of a tax holiday scheme for software firms in the minister’s speech.”

The government had introduced the Software Technology Parks of India (STPI) scheme in 1991 to encourage software exports, which helped make India one of the world’s leading hubs for software and business process outsourcing.

While hailing the Budget as “positive overall”, Nasscom also expressed disappointment that the increase in Minimum Alternate Tax (MAT) will result in a burden on small and medium businesses who are still struggling with the impact of the global recession.

According to Pai of Infosys, “The increase in MAT will not impact the larger companies as much but will impact smaller and medium enterprises (SMEs), particularly in the IT sector, as they would have to pay more.”

Source:http://economictimes.indiatimes.com/Infotech/Software/Indian-IT-jittery-disappointed-/articleshow/5621732.cms?curpg=1

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Tags: BPO India IT Jittery

Sri Lanka to gain from Silicon Valley technologies

February 26th, 2010

The import of technologies from Silicon Valley will empower businesses, helping entrepreneurs to raise revenues and boost profits, said Latitude 655 chief execrative officer Shanil Fernando.

It will also assist Sri Lanka to gain a fair global market share in Business Process Outsourcing (BPO), he added.

He was speaking at the launch of Latitude 655, a new company.

Silicon Valley has remained the leading high-tech hub for the past several years with a large number of entrepreneurs investing in the IT engineering fields.

However, Sri Lankan companies have so far been unable to gain major benefits from these latest technologies, innovations and insights, Fernando pointed out.

There are around one million online users in Sri Lanka at present and the growth rate has been phenomenal over the years. Most of the technology and services used overseas are not available in Sri Lanka, a vibrant market,

“Sri Lanka is at the early stages of an economic boom, and our analysis in the past three years has shown that the economic boom will be followed by a technology boom,” he said.

The CEO also said that Latitude 655 had assembled a world-class team to form this partnership. “Our partners are veterans in the global IT industry and have been instrumental in luring high potential talent from local as well as foreign companies and universities.”

Source:http://www.lankatimes.com/fullstory.php?id=25191

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Tags: BPO IT

MPHASIS: Expansion drive could lift valuation

February 26th, 2010

MPHASIS has continued to report impressive numbers for the three months ended January 2010. New contracts, through its parent HP and direct sales

channel, along with improved profitability and consolidation of its recently-acquired insurance portfolio from AIG, are the major highlights of its performance.

Sales rose sequentially by 5.2% to Rs 1,191.6 crore during the January 2010 quarter, which is also the first financial quarter of the current fiscal for MphasiS. Its net profit rose by 9.5% to Rs 268.3 crore.

Despite such a resilient performance, the company’s stock fell sharply by 8% in a flat broader market on Thursday. What is of concern to investors is the fact that MphasiS is heavily relying on its parent company HP for a major chunk of business and also dwindling billing rates and margins in its technology outsourcing and BPO segments.

Investors need to note that the nature of relationship between MphasiS and HP should not be confused with that between a client and a vendor. HP had acquired MphasiS’ parent EDS in May 2008. Since then, HP has been leveraging MphasiS’ strength in applications development and BPO. Today, The company generates over 71% of business through HP’s sales channel. What this means is that MphasiS provides IT and BPO services to HP’s global clientele and this relationship is only expected to strengthen in future.

Further, MphasiS is keen on developing business through its own sales channels. For instance, two out of every five new projects in the January quarter were through its own channel.

The management has clarified that the fall in its BPO revenue is due to an internal consolidation of the work it used to carry out for EDS. This is no more treated as part of revenue after HP acquired EDS. The significant fall in its IT outsourcing business, which contributes over 16% to total revenue, may raise concerns. However, according to the management, this is mainly on account of rate reduction for one of its biggest clients and should not be considered as an indication of a trend.

The company appears to be geared up for the next phase of growth, given its expansion plans. It has close to Rs 1,200 crore in liquid assets. It has chalked out plans to deploy this cash for acquisitions most probably in its strongest vertical banking and finance. It is also in the process of rolling out at least four development centres in Europe and Asia to cater to its growing client base in these regions.

At Thursday’s closing price of Rs 677, the stock trades at 14.7 times its trailing twelve months earnings per share. This valuation is likely to improve, given its future plans, and also the fact that the company is closing in fast on Tech Mahindra, excluding Mahindra Satyam, and may well be on course to pip them as the fifth-largest IT company to be listed in India.

Source:http://economictimes.indiatimes.com/Stocks-in-News/MPHASIS-Expansion-drive-could-lift-valuation/articleshow/5617526.cms

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Tags: BPO IT MphasiS

IT sector looks for additional tax benefits

February 22nd, 2010

The country’s IT services and BPO firms, that have been facing tough time with client budget cuts and increasing political pressure in the US and Europe, are looking forward to additional tax benefits in the Union Budget 2010-11. This time, it isn’t just the IT services and outsourcing firms that are seeking clarity on extension of 10A/10B tax holiday, but also IT software product firms too are looking at similar exemptions.

Recently, ministry of IT and communications secretary R Chandrashekhar said the IT ministry has recommended the finance ministry to align the benefits of the software technology parks of India (STPI) with those under the special economic zones (SEZ) in the forthcoming Budget. Chandrasekhar said, “In the software sector, they have been asking for continuation of benefits, which are due to expire on March 31, 2011. On the hardware side, they have been asking for greater stability in taxation so that they can plan in terms of customs, excise and corporate taxes,” he said. V Balakrishnan, CFO, Infosys Technologies said, “The STP tax holiday should at least be extended to smaller companies whose group turnover is less than Rs 100 crore as larger companies have the ability to manage it well.” Surjeet Singh, CFO, Patni, views that the expiry of STPI provision coupled with the anti outsourcing political legislation in the US could make India an uncompetitive offshoring destination.

Section 10A of the Income Tax Act provides for 100% deduction for 10 years of export profits made by units set up in any STPI. This tax benefit is due to expire on March 31, 2011.

Also, the industry is expecting abolition of minimum alternate tax (MAT) that was increased from 10% to 15% last year. Mukesh Aghi, chairman & CEO, Steria India said that increase in MAT has impacted the cash flows of companies, at a time when liquidity is critical and therefore the government could look at abolition of MAT on book profits of units operating in an STP/EoU. Tax experts feel that the government wouldn’t take a long-term call for the next two to three years for STPI. S Madhavan, ED, tax and regulatory services, PricewaterhouseCoopers, said, “Tax exemptions have a finite shelf life and we don’t expect the government to take a long-term decision on these benefits for the next two-three years.” At the same time, Indian software product companies that develop intellectual property and largely cater to the domestic market.

Source:http://www.financialexpress.com/news/IT-sector-looks-for-additional-tax-benefits/582549/

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Tags: BPO IT Outsourcing Tax

‘Extend tax sops to IT sector’

February 22nd, 2010

Auditing experts have favoured extension of tax sops being enjoyed by the IT-ITeS sector so far to help the industry retain its
competitiveness. In its Budget wishlist for the IT industry, auditing firm PwC said, “with rising rupee leading to realisation dips in export consignments, the government can consider extending the tax holiday for a longer time-frame in the forthcoming Budget for SMEs in the IT-ITeS sector irrespective of their location of operations.” Toeing the line, KPMG said the sector is hoping that the stimulus package would continue at least for another six months.

since the industry is not yet fully recovered from the slowdown. The sunset clause under Sections 10A and 10B of the Income-Tax Act gives tax holiday to IT/BPO companies operating under the STPI scheme, which expires in 2011. “The extension of tax holiday for STPI/EoU units by one year provided the timely succour to the industry which was reeling under tight margins, increased competition and rupee appreciation,” KPMG said.

While software export from the country is projected to grow by 15 per cent in the coming fiscal, it needs continued Government support to achieve this objective, KPMG said, adding in the current fiscal, IT and ITeS exports are expected to grow at 5.5 per cent only.

The continuity of tax holiday for STPI/EoU units by two-three years is of prime importance now, especially for SMEs. Whilst IT companies are no more zero-tax companies due to introduction of MAT, the removal of the tax holiday would hit their post-tax margins.

Patni Computers chief financial officer Surjeet Singh said, “in terms of the IT industry, we would like to suggest extension of tax holiday referring to Section 10(A). The expiry of this provision coupled with the anti-outsourcing legislation in the US could make India an uncompetitive offshoring destination.”

Industry body Nasscom has submitted its Budget wishlist to the Government, wherein it recommended that the software technology parks of India initiatives be at par with special economic zone schemes. “The SEZ anomaly should be removed retrospectively,” it said.

It also called for higher tax incentives for the BPO sector, besides introduction of a legal cell for litigation.

Source:http://economictimes.indiatimes.com/news/economy/policy/Extend-tax-sops-to-IT-sector/articleshow/5600999.cms

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Infosys BPO sets for 700 lawyers

February 22nd, 2010

In a press briefing, Infosys BPO Chief Operating Officer Ritesh M. Idnani said the company is planning to build a new facility to host expanded operations, by the end of the year or in the first quarter of 2011.

“We are excited about the prospect of growing and the demand is going up. We are planning to open new facilities and we have short-listed three places in Metro Manila with [a capacity of] more than 1,000 seats,” said Mr. Idnani.

The company is considering sites in Quezon City and the Clark free port in Pampanga.

Infosys BPO has 13 delivery centers around the world, with three in the Asia-Pacific region. The company provides customer services and contact center services as well as finance, accounting and legal process outsourcing. Many of its clients are based in the United States.

The Philippine center of Infosys handles about seven companies. The company made $316.2 million in revenues for the fiscal year 2008-2009, of which the Philippines contributed 8% to 10%.

Mr. Idnani said the expansion would mean more employees.

“Currently we have 650 employees but we see based on our delivery we can have 3,000 new employees within 18 to 24 months,” he said.

Once the company reaches its critical mass of 3,000 employees, growth would be much faster, he added.

But Infosys BPO is not just looking for contact center agents, but also for lawyers. Mr. Idnani said “legal process outsourcing is the fastest-growing practice for the company and we are looking for upwards of 700 lawyers.”

The Philippine BPO industry was able to reach revenues of $7.2 billion, employing around 442,000 employees in 2009. This represented a 19% increase over 2008 revenues of $6.06 billion. The industry is expecting around $9 billion in revenues and a growth of 26% for 2010 as more markets become confident in outsourcing to the Philippines.

Source:http://www.bworldonline.com/main/content.php?id=6658

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Tags: 700 lawyers BPO Infosys Outsourcing

Business Process Outsourcing services with savings up 60% cost

February 20th, 2010

IT Outsourcing Service provide quality BPO services like Data Entry Services, Data Processing, Data Conversion, Call Center Services, Web Research, HTML and XML Conversion, Forms Processing, Medical Billing Services.

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Outsource to IT Outsourcing Services and benefit from our world-class BPO Services with savings up 60% cost.

Benefits of BPO services are as follows:
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So what are you waiting for, contact IT Outsourcing Services right away and detail us about your detailed requirements. Let us worry about your attending to your requirements, while you can take some time off and spend it with your loved ones or use it to boom your business.

It all depends on you how you decide to use the money and time saved by choosing to work with IT Outsourcing Services.

Source:http://www.prfire.co.uk/press-release/business-process-outsourcing-services-with-savings-up-60%20percent%20-cost-7421.html

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CSC wins six-year sunshine state BPO deal

February 20th, 2010

(Source: Datamonitor)IT services vendor Computer Sciences Corp (CSC) has won a six-year extension to its business process outsourcing (BPO) contract with Florida-based Sunshine State Insurance Company. Financial terms of the deal were not disclosed.
Under the deal, CSC will support Sunshine State’s personal and commercial property business from an upgraded technology platform that automates more of the underwriting process. The extension will provide technology and services for improved risk management and selection, business analytics and advanced Web 2.0 capabilities.

The company’s processing services cover Sunshine State’s underwriting, rating, policy issuance and administration, agency point of sale automation, customer service, print and imaging, financial accounting and reporting to bureaus and industry databases. It has been providing the services since 2000. It currently administers the property business on the latest versions of its POINT IN policy administration system and front end automation software Agency Link.

Jim Cook, president of Business Solutions and Services at CSC, said: “By incorporating process innovation and the latest technologies within our BPO operations, we are able to provide cost-effective property and casualty insurance operations, now serving more than 45 companies including 10 based in Florida.”

Last month, CSC won a five-year outsourcing contract from Indiana-based insurance and annuity provider Conseco Services to provide on- and off-shore technical resources to maintain and support two of Conseco’s insurance administration systems. In November, it won a $2.9bn contract from Zurich Financial Services Group to provide data center and IT infrastructure managed services.

Source:http://www.istockanalyst.com/article/viewiStockNews/articleid/3880651#

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Tags: BPO CSC IT Outsourcing

Financial BPO sets up shop in Philippines

February 17th, 2010

Global financial technology solutions provider FIS is setting up shop here in the Philippines, with its first-ever call center in Pasong Tamo, Makati.

President Gloria Arroyo attended the inauguration of the facility, which currently has 150 employees to start with, but is expected to house a total of 1,000 seats in the next 18 months.

“We like to get a strong foothold in a country and build around that in the years to come. The Philippines is a strategic location,” says FIS Chief Operating Officer Gary Norcross.

Ram Chary, FIS SVP for Global Commercial Services, says about $5-million was spent for the facility, which will three major areas including integrated solutions, IT outsourcing, and business process outsourcing. Clients include banks such as Allied Bank, BDO, and ADB.

Norcross points out that while bulk of revenues come from US-based banks, FIS sees strong growth in Asia.

“Our goal is to broaden capabilities in this region,” he stresses.

The company posted revenues of around $5-billion in 2009, a flat growth from the previous year, due to the adverse impact of the global financial crisis. Norcross notes that, as was the worldwide trend, appetite for BPO services was dampened by a cautious environment. But this year, he says the outlook is much rosier.

“In the early part of 2009, we saw financial institutions in the world slow down their IT spending. It was a global phenomenon, but in the latter half, we saw FIs investing in IT technology again. That’s what we see continuing in the first quarter this year, and we expect to start seeing the economic benefits of growth in the latter half of 2010,” he says.

FIS supports over 14,000 financial institutions in more than 100 countries worldwide, through its 30,000-strong workforce. Bulk or 67% of its operations involve US banks, while 16% account for the international financial institutions, including Asia’s. The balance of 17% comes from non financial institutions such as healthcare and government services.

Source:http://www.abs-cbnnews.com/business/02/17/10/financial-bpo-sets-shop-philippines

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Tags: BPO IT Philippines

MphasiS aims for buys in sub-$100 m range

February 16th, 2010

Bangalore-based IT services and business process outsourcing (BPO) firm MphasiS is looking at a string of acquisitions in the sub-$100 million range to strengthen capabilities in areas of business support, package implementation, BPO and remote infrastructure management (RIM).

The erstwhile parent of MphasiS, EDS was acquired by American technology giant HP in 2008. MphasiS currently gets around 70% of its revenues from HP and the acquisitions are aimed at increasing revenues from direct clients other than HP, which currently contribute 30% to its topline.

Ganesh Ayyar, CEO, MphasiS told FE that the company was scouting for firms to strength the company’s existing portfolio and verticals such as banking, financial services, healthcare, life sciences and pharma. “We plan to fund these acquisitions from cash in hand. Our cash position had increased to $200 million at the end of 2009 from about $10 million at the end of 2008,” said Ayyar.

He added that the jump in the company’s cash position was largely on the back of increased focus on RIM and application-led services other than BPO, cost optimisation and reducing days of sale outstanding from 83 days in October 2008 to 72 days in October 2009. In August last year, MphasiS acquired the captive unit of AIG (AIG Systems Solutions) which provides IT services and solutions to AIG companies worldwide for an undisclosed amount. However, he refused to divulge details on the revenue contribution from the acquisition since then.

Ayyar added that the company was looking at increasing revenue flow from direct customers. “We have been working with a set of clients for a long time and want to grow our footprint with existing clients. At the same time there are markets that HP may not be addressing and we would want to capture those,” he added. MphasiS, which gets 12% of its revenues from HP as a direct client and 58% as a partner, is also simultaneously looking at increasing the share of joint-go-to market-led revenues with HP, and tap into new revenue streams in HP such as implementation services for its software products.

A significant portion of the company’s future investments will also go into expanding its geographical presence.

“We are looking at accelerating our efforts in India, Australia and Europe,” he said. In the offing are more offshore and near shore centres by the company in these emerging geographies.

The company, which is yet to announce its financials…

Source:http://www.financialexpress.com/news/MphasiS-aims-for-buys-in-sub–100-m-range/580101/

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Consolidation to hit BPOs

February 15th, 2010

The business process outsourcing sector should start consolidating soon, as the need to take advantage of economies of scale increases and clients’ desire to deal with just one firm grows.

Scott Murray, chair and chief executive of BPO service provider Stream Global Services Inc., said bigger companies would gobble up smaller players—something that was already happening in the industry.

“Companies want to deal with larger (BPO) companies. Companies are looking for one-stop shops that provide consistent work and that have long-term employees.”

To take advantage of the consolidation trend, Murray said his company was on the lookout for new acquisitions, both here and in other countries.

Stream Global completed late last year its consolidation with eTelecare Global Solutions Inc., which gave it a total of 11,000 seats spread among eight sites in the Philippines.

Murray said Stream Global was poised to further expand its Philippine operations in 2010, starting with the hiring of 1,500 individuals in the next 60 days and the establishment of one or two new sites within the first half.

While companies such as Stream and a number of others believe in the Philippines enough to invest significant amount of resources here, Trestle Group chief executive Ralph Shonenbach said the country had to step up its marketing efforts if it wanted to maintain its edge over other BPO locations.

“There are a lot of good companies here, but what we’re missing is these companies telling others how good the Philippines is at BPO

Source:http://business.inquirer.net/money/topstories/view/20100214-253192/Consolidation-to-hit-BPOs

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Tags: BPO Consolidation Outsourcing

Arroyo praises Cebu’s BPO industry

February 14th, 2010

President Gloria Macapagal-Arroyo commended Wednesday the achievements of Cebu’s Information Technology-business process outsourcing (IT-BPO) sector.
Arroyo was all praises as she visited Cebu as part of her tour of the “Super Regions,” which featured various locations of the “Cyber Corridor.”
The corridor is composed of the “strongest potential locations for ICT investments,” such as BPOs, software development, animation and game development.
“Wow, it’s like we entered a First World!” she exclaimed, upon entering Asiatown I.T. Park.
Arroyo said she was impressed at how developed Cebu has become in terms of its advancements in technology and the BPO sector, noting that Metro Cebu has even outdone India in terms of providing BPO services.
“Cebu City remains a top spot in the Global Services survey on the ‘Top 50 Emerging Global Outsourcing Destinations’ mainly due to its scale and quality of workforce, modern infrastructure, business catalyst, risk profile, cost and quality of life,” said Arroyo, addressing the media, members of the IT and BPO sector and employees of Qualfon Quality Contact Services.

Source:http://www.sunstar.com.ph/blogs/citizenwatch/?p=2179

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Xerox Finalizes Acquisition of Affiliated Computer Services

February 13th, 2010

Xerox Corp. said it has completed its acquisition of Affiliated Computer Services.

ACS is a diversified business process outsourcing (BPO) firm. Its expertise is in automating work processes and providing BPO and IT outsourcing services that range from processing over 1 million credit card applications and 12 million student loans each year to providing HR services for more than 4.4 million employees and retirees annually.

“For the past 50 years, Xerox has fortified its leadership in document management, creating new markets through our renowned innovation,” said Ursula M. Burns, Xerox chief executive officer. “With ACS, we take another step forward, expanding our leadership to include business process outsourcing that helps simplify document-driven work. The new Xerox provides the technology and services to help our customers reach new levels of efficiency and effectiveness, giving them the freedom to focus on what matters most: their real business.”

“Xerox’s brand recognition, global presence, and superior innovation give us a powerful competitive position and offers our customers a trusted partner they can rely upon for the back office support that makes their front offices successful,” said Lynn Blodgett, president and chief executive officer, ACS. “We’re quickly taking full advantage of becoming part of Xerox with plans to expand our business to more global markets this year. And, through its proprietary categorization and advanced document imaging software, Xerox technology will help us differentiate our offerings by providing faster, more automated ways to manage our clients’ business processes.”

According to a release, ACS will initially be branded ACS, A Xerox Company. It will continue to be led by Lynn Blodgett, who has been elected by the Xerox Board of Directors as an executive vice president of the corporation. Blodgett will report to Burns.

“The breadth of ACS’ offerings – from HR benefits management and IT support to automated toll collection and electronic health records – is a significant competitive advantage and one we will continue to leverage through investments, innovation and global expansion,” said Burns.

“Xerox is working aggressively toward becoming more focused on information management and business processes and less reliant on printed documents,” said Angele Boyd, group vice president/general manager, document solutions, IDC. “With this acquisition, Xerox becomes a significant player, and has an opportunity for growth, in the growing business process outsourcing market.”

Xerox said that through a combination of services, technology and innovation, the combined company will pursue a $500 billion market focused on document and process management for businesses and governments.

Source:http://www.tradingmarkets.com/news/stock-alert/acs_xrx_xerox-finalizes-acquisition-of-affiliated-computer-services-776075.html

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IT, BPO companies bond over Valentine’s Day

February 13th, 2010

which is celebrated as Valentine’s Day, is one of those very few dates in a year when the 24X7 information technology (IT) and business process outsourcing (BPO) firms allow their employees to let their hair down.

This year, the date falls on a Sunday, which is a holiday for most companies. But it has not deterred BPO firms from celebrating in advance.

Either a big party or a simple dress code in reds, pinks, whites or blacks are being observed in BPO offices across the country by fun-loving employees, within office hours. The festivities began a couple of days back with dress codes and competitions and rose auctions — all in a bid to increase camaraderie and have some fun amid a hectic schedule, say company managers and human resources (HR) heads.

“We are setting up the floor and getting ready for the V-day celebrations. We have rose auctions that take the celebration to a different competitive level. The highest bidder wins all the five roses, one from each business and that person presents them to his loved one. In the previous year, our highest bid was Rs 4,800 and five roses were auctioned for Rs 17,000. This year we expect the figure to go higher,” says Prabhat Ranjan, manager, operations with Sitel in Hyderabad. Sitel also had a disco night last year with a live disc jockey, and the employees have similar plans this time too.

The IT-BPO hub of Pune is not far behind in its Valentine’s Day celebrations. WNS Global Services employees are observing a pink and white dress code, while the company’s Mumbai office has a red dress code. Says Human Resource Executive Arun Thapar: “We don’t really have the time to do extra activities for celebrating Valentine’s Day. But we observe a dress code to add a little zing to life at work.”

Gurgaon-based BPO major Genpact, though, does not have any official celebrations on the cards. “We do not have any official party or celebrations for Valentine’s Day. But, we celebrate holidays like Diwali in office. Our employees are free to celebrate V-Day the way they want within the broad guidelines that the company has,” says Piyush Mehta, senior vice-chairman, human resource.

Tata Consultancy Services has different rules for Valentine’s Day celebrations for its different offices. Its Mumbai set-up is observing a red colour dress code along with fun at work activities, refreshments and games, says CRM consultant Santosh Asbe.

HCL’s BPO office in Delhi is having a Valentine bash at work on Friday like many other BPOs since the weekend begins tomorrow, meaning off days for most employees. Vishal Ajmera, a trainer, says: “Here for each process we have an assigned fund. For example, for a process of close to 60 people the budget would be between Rs 4,000 and Rs 5,000 from the client. Around this time the clients are on the floor and they take keen interest in the fun. Decorations are done but only suggestive. An in-house team selects the best decorated floor and they get gifts, etc.”

Another outsourcing company, 3G, in Pune is also going great guns to have V-Day celebrations for its employees. Rahul Deshpande, team leader, says: “Yesterday we distributed greeting cards to employees. The employees will give those cards to people they like. The person who receives the maximum number of cards will be announced Mr and Ms Valentine in our office. Such competitions are on and the company has sponsored red roses which are also distributed.”

Source:http://www.business-standard.com/india/news/it-bpo-companies-bond-over-valentine%5Cs-day/385595/

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Outsourcing firm to hire 5,000 workers

February 13th, 2010

Business process outsourcing company (BPO) Stream Global Services said it would expand operations this year by hiring 5,000 more employees.

Stream Global Chief Executive Officer Scott Murray told reporters the company is aiming to be the second largest BPO employer in the Philippines in three to five years.

“We are going to hire 1,500 new employees until March and depending on the economic conditions, we can easily hire 5,000 people for 2010 alone. With this we could be the second largest employer in the country,” said Mr. Murray.

The company is planning to open one or two new facilities in the first half of the year and is considering opening more in the last two quarters of the year. It is also looking at new sites for expansion like Cavite.

Stream Global merged with the Ayala-led eTelecare BPO firm in August 2009. The company has 12,000 employees in five centers in the country. Globally, the firm has 30,000 employees in 22 countries. Mr. Murray said Stream Global would be opening centers in Japan, China and Brazil in the second quarter of 2010.

“We see $1 billion in revenues for 2010 with acquisitions; the growth depends on new clients and acquisitions. But in three to five years we could be making $5 billion in revenues,” said Mr. Murray.

He added the company is always on the lookout for mergers because “there are many struggling BPOs that are prime for acquisition and these mergers are driven because companies want to deal with bigger centers that can offer one-stop-shop services.”

In 2008, Stream Global was able to net revenues of $800 million, with 20% coming from Philippine centers.

Since the merger in 2009, Stream Global has invested around $5 million in new technology for its Philippine centers, executives said. The company said that it would double investments for technology in the next few months.

Mr. Murray said the industry would continue to grow if the “new administration is as pro-business as the current administration. Without support the industry would disappear.”

The BPO industry was able to post $7.2 billion in revenues in 2009, a growth of 19% from $6.06 billion in revenues in 2008. The industry employed around 442,000 employees last year. The industry is expected to make $9 billion in revenues and grow by a quarter for 2010 as the global economy recovers from a downturn.

Source:http://www.bworldonline.com/main/content.php?id=6242

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Tags: BPO Global services Ooutsourcing

India’s IT firms adapt

February 12th, 2010

In the face of staffing cuts and client changes, the industry looks to maintain growth.

Last year was perhaps the most difficult on record for India’s IT and Business Process Outsourcing (IT/BPO) sector. Between 1998 and 2008 the industry grew at annual rates of up to 40%, increasing its sales from $4.8 billion to $52 billion. Yet several major firms had to cut their staffing levels in 2009 after clients canceled large contracts.

Further concerns were raised last month when U.S. President Barack Obama, in his State of the Union speech, reiterated his commitment to changing U.S. tax law, eliminating incentives to ‘offshore’ jobs in favor of measures to support domestic job creation. Nonetheless, industry executives at this year’s summit organized by the NASSCOM trade body do not appear daunted. The expectation is for a steady return to growth, albeit at a more moderate pace than in past years.

Source:http://www.forbes.com/2010/02/11/india-it-growth-business-oxford-analytica.html?boxes=Homepagelighttop

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BPO industry geared for growth

February 10th, 2010

The business process outsourcing (BPO) sector expects sales to grow by a quarter to $9 billion this year as the industry rides the wave of a general economic recovery,

The industry’s revenues of $7.2 billion last year — a 19% increase — came in at the lower end of its target of $7.2 billion to $7.4 billion due to the caution that prevailed among businesses in the first half. In 2008, sales went up by 24%.

The head of the Commission on Information and Communication Technology (CICT), says the industry should prepare for an expected pickup in business this year. “What we need to do is to maintain our supply of talent and focus on infrastructure. We expect the BPO industry to grow more as our markets emerge from the recession,” said CICT chief Ray Anthony Roxas Chua III.

Source:http://www.itweb.co.za/index.php?option=com_content&view=article&id=30192:bpo-industry-geared-for-growth&catid=69:business&Itemid=58

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