Posts Tagged ‘BPO’

Cuisia woos American BPO firms

October 24th, 2014

Philippine Ambassador to the US Jose Cuisia urged the American information technology and business process management industry to consider the Philippines an ideal location for customer service and technical support outsourcing.Outsourcing39

“The IT-BPM industry has been the fastest-growing industry in the Philippines in the last 10 years,” he told  business executives and decision makers from Wall Street and Fortune 500 firms, who attended a networking event hosted by the Philippine Consulate General in New York and the Seven Seven Corporate Group in the US.

Cuisia in a statement stressed the 6.4-percent economic growth in the second quarter of 2014, urging executives from New York, New Jersey and Connecticut to seriously consider putting some of their investments in the Philippines.

Philippine Consul General Mario de Leon noted that the IT-BPO industry directly employed one million Filipinos and was expected to earn $18 billion this year.

He added the industry also supported 2.5 additional jobs for each direct hire.

“The Philippines, now recognized as the number one provider of voice services, is determined to increase its market share for more sophisticated outsourced operations in such areas as financial services, software design, medical and legal transcription, animation and gaming,” De Leon said.

The report noted that by 2016, the Philippine business process management industry was expected to expand further with projected revenues of $25 billion and direct employment for 1.3 million people, accounting for 7.8 percent of the Philippine gross domestic product.


BPO sector celebrates reduction in illegal activity

October 17th, 2014

A year ago, lotto scamming activities threatened to flat-line the business processing outsourcing (BPO) sector. Today, with a clampdown on the illegal activity, bolstered by the relevant legislation, there is now next to no reports of the illegal activities and the industry is thriving.Outsourcing31

“I would say a year or so ago that was the number one issue affecting not only the sector but more broadly and certainly in the last couple of months I have not heard that as a major issue anymore,” Julian Robinson, the state minister in the Ministry of Science, Technology, Mining and Energy, told the Jamaica Observer West.

Robinson attributed the reduction of complaints to Government’s introduction of legislation to battle the illegal sweepstakes, which not only posed a threat to the existence of BPO industry but has resulted in a spate of killings across western Jamaica.

In the past, scammers would get data from within some of the BPO companies. They then used that data to target their victims, mostly elderly United States residents. As the activity flourished local companies were at risk of losing their contracts from overseas entities.

BPO services target offshore or near-shore back-office operations such as accounting, human resource management and customer service (call-centre facilities).

Meanwhile, President of the Business Processing Industry Association of Jamaica (BPIAJ), Yoni Epstein confirmed that reports of scamming activities within the sector has fallen.

“The reality of it is it is on the decline. We have not heard of any instances, and to me more importantly, I haven’t heard any instances locally as the clients and prospective clients are asking about it less and less,” Epstein told the Observer West.

Both Epstein and Robinson were speaking to the Observer West following the historical signing of a deal between Columbus Communications and the BPIAJ to establish an incubator within the Montego Bay Freezone, which is expected to trigger growth, enhance market access and create new jobs.

The incubator, which is slated to be fully operational by December, will fast-track entry of new players into the business process outsourcing sector as well as facilitate short-term expansion for current investors.

The telecommunications firm — which trades as Flow and has been vigourously marketing its business brand Columbus Business Solutions (CBS) — will install, as part of its workstation solutions, screens and a combination of physical and so-called soft phones.

Columbus, which offers telephony, Internet and cable services, has ramped up its infrastructure to capitalise on businesses’ appetite for one-stop-shop, holistic technology solutions. “The partnership recognises the importance of the Business Process Industry to Jamaica’s national development and is intended to provide a solution that fast tracks new entrants to the local market, a problem that has often been cited by the Government and Industry players alike” said Sean Latty, head of the communications giant.

The BPO sector is a fast-growing industry which local economists and Government officials see as having great potential for growth, as business confidence rises and investment opportunities emerge.

Currently, there are approximately 40 BPO companies in operations, accounting for approximately 14,000 jobs in Jamaica, according to Epstein.

“We believe that this is a small portion of what the industry is capable of and the partnership with CBS will ease one of the challenges that has stifled the sector’s growth,” Epstein said. Epstein’s point is supported by JAMPRO, the government’s trade and investment promotion agency, that has indicated the sector could create 15,000 new jobs over the next five years.

“The BPO sector represents the fastest growing growth sector in the economy right now and we commend Flow as a private sector partner for coming on board and supporting this initiative,” he added.

As Jamaica seeks to improve its rankings in global competitiveness and the ease-of-doing-business indices, CBS’s initiative will help to expedite the entry of new BPO entrepreneurs, making the industry more dynamic and innovative.

Epstein was upbeat over the soon-to-be established incubator.

“The incubator is a 200 seat call centre that will be developed in the Montego Bay Freezone. The goal of the incubator is to attract foreign investors as well as local investors to start up businesses. Its cheaper access to entry, lower barriers to entry and faster uptime to get started into business. We want to make it as easy as possible for investors to want to come to Jamaica as well as for local investors and entrepreneurs to start businesses,” Epstein told the Observer West.

Epstein added: “It is also going to foster growth in existing businesses because if we have the space and someone can’t build out fast. Enough they will have access to the incubator to start-up grow their business while they develop their existing spaces.”


Capgemini, NetSuite launch ‘virtual company’ BPO toolkit

October 17th, 2014

French IT consulting firm Capgemini and cloud-based software provider NetSuite have teamed up to offer out-of-the-box, pre-configured software and applications to startups and organizations looking to scale or expand into disruptive environments. Outsourcing28

The bundled business process outsourcing (BPO) toolkit works by combining outsourced services, processes, technology and infrastructure to offer a pre-configured back office in the cloud.

It includes services such as HR and finance that the companies say can integrate seamlessly with the parent company’s existing technology. By doing so, users can lessen their go-to-market timeframe and focus on core business priorities, according to the two companies.

For example, when entering a new market, organizations are typically faced with a barrage of personnel and IT requirements. But with this virtual company model, organizations can cherry pick which business processes they wish to automate and outsource, theoretically increasing their agility when it comes to expansion.

“Many organizations generate new ideas but struggle to industrialize them due to the challenges of the administrative burden,” said Christopher Stancombe, CEO for Capgemini’s business process outsourcing. “Our Virtual Company solution was created in response to this growing demand for outsourced technology platforms to aid speed to market and reduce set-up costs. This is where the BPO market is evolving – helping solve some of the most pressing challenges in business today, by understanding what really affects the performance and culture of an organization.”


Golden Gate BPO Solutions, LLC Providing Customer Service for Multi-Channel Retailer of Exclusive Coins and Collectibles

October 16th, 2014

Today, Golden Gate BPO Solutions, LLC, a leading global customer management and Business Process Outsourcing (BPO) company, announced that is has secured a long-term agreement to provide customer service and other support on behalf of one of America’s leading retailers of coins, medals, collectible knives and die-cast models, a company established over 30 years ago that currently has over 10 million customers around the world.Outsourcing27

“First, we were thrilled back in June of this year when this unique retailer trusted us enough with their customers to provide customer care in a manor consistent with their product standards including commitment to quality, product authenticity and exclusivity. Our customer engagement centers play a vital role in delivering first class customer services for some of the world’s leading companies and we are so proud of the achievements of our team. Now, to be awarded a long-term agreement that will make us the primary outsourced provider of customer service for this phenomenal client, in addition to creating new jobs and opportunities for others, is a testament to the hard work of our agents, supervisors, quality assurance personnel, and operations and client service managers,” said Stephen Ferber, Managing Partner at Golden Gate BPO Solutions, LLC.


Penang invites Singapore firms to grow together

October 16th, 2014

Penang is vying to become the next hub for Singapore companies’ regional expansion, with the state government open to more opportunities for bilateral partnerships, its Chief Minister Lim Guan Eng said on Tuesday (Oct 14).Outsourcing24

“We are putting ourselves on the map – that Penang is open for business, and you can set up your plants here at very attractive rates,” said Mr Lim, who was in Singapore to unveil BPO Prime, a S$500 million mixed-use development project led by Singapore investment giant Temasek Holdings and Penang Development Corp (PDC) – the state’s development agency.

“We can complement the role played by Singapore. We have a technology and electronics cluster, and I believe you should use our core competencies in manufacturing to grow your services sector. The key is convergence,” he said.

“Singapore’s investment into Penang jumped from RM61 million (S$23.8 million) to RM622 million between 2012 and 2013. We feel there is room to grow – and what better way to grow than working together? That’s why we have asked Temasek to come in, not just as an investor but also as a player,” he added.


BPO Prime and Penang International Technology Park (PITP), the two Penang projects outlined in a memorandum of understanding that Temasek and PDC signed in May, will have a total development value of about S$4.4 billion.

The developments will be funded via a joint venture that is 49 per cent owned by Temasek.

BPO Prime will break ground in the first half of next year and construction will take two to three years. When completed, it will offer 1.6 million sq ft of residential and commercial space. The commercial element will focus on business process outsourcing.

“Penang’s outsourcing sector saw more than a 20 per cent increase in revenue last year. BPO Prime is a priority project that is part of the state government’s plans to transform Penang into an international outsourcing hub,” Mr Lim said.

Penang can be a sound alternative for Singapore companies to expand in Malaysia at a time when all eyes are on the nearby Iskandar region, said Mr Philip Yeo, chairman of Economic Development Innovations Singapore (EDIS), the project’s master development manager.

“I’m looking for skilled workers, in which case Penang has a better advantage … Iskandar is near enough – but I’ll go where the skill is,” Mr Yeo said, citing his own experience as a chairman of aerospace component manufacturer Accuron, which is planning to grow its workforce of 800 to 1,000 in Penang.

“I believe talent will be a strong selling point for Penang, where spaces such as BPO and PITP will be ideal for high-end activities from Singapore and elsewhere,” he said.


BPO revenues at $48 billion by 2020

October 14th, 2014

The country’s business-process outsourcing (BPO) industry is seen to increase its annual revenues to $48 billion by 2020, based on its growth trajectory since the past decade.

Vikrant Khanna, principal at consulting firm Tholons, said the compounded average growth rate (CAGR) of the Philippines from 2004 to 2014 was in the range of 9 percent to 12 percent.Outsourcing16

In a presentation at the Information Technology and Business Process Association of the Philippines (Ibpap) International Summit on Monday, Khanna said the global BPO industry’s CAGR, on the other hand, is at 5 percent to 7 percent during the same period.

If this CAGR continues in the coming years, Khanna said the Philippines could capture $48 billion in revenues from the global industry’s estimated value of $250 billion by 2020.

The Philippines’s $48-billion revenue projection by 2020 represents 20 percent of the global industry value.

The information technology and business-process management (IT-BPM) road map, crafted by the Department of Science and Technology with Ibpap, envisions revenues at $25 billion by 2016, with employment at 1.3 million.

The $25-billion revenues by 2016 will only represent 12 percent of the global industry.

According to Science Secretary Mario G. Montejo, the targets by 2016 are “easily achievable” and may be doubled by 2020. Ibpap, on the other hand, expressed confidence in reaching the road map’s goals by 2016.

Ibpap President Jose Mari Mercado clarified that the 9-percent-to-12-percent CAGR is the global outsourcing market projection of the Philippines’s CAGR across all sectors of the BPO industry.

The global outsourcing advisory firm added that in the surveyed period of 2004 to 2014, the Philippines had a twelve-fold growth in revenues and 10 times in terms of employment.

The consultancy company added that given the CAGR of the Philippines for the past decade, revenues this year would amount to $18.4 billion, coinciding with the target of the Ibpap for 2014.

Given the projection of Tholons for 2020, Mercado stressed the need to start building the IT-BPM Roadmap for 2020, with the view to disaggregate goals and targets per sector.

“The $48 billion is not my projection; it is Tholons’s. But the opportunity is there. Our capability to grab that opportunity and bring [revenues] to $48 billion is why we want to start working on a new revised road map with the government. Our current road map is at 2016, we want to update that to a road map 2020 with our own projections there,” Mercado said.

“When we complete the sectoral road maps such as the one for health care, for voice, for nonvoice, for example, when we total that, that’ll be the industry road map,” Mercado added.

A generic road map that is essentially a “one-size-fits-all” arrangement will not work because of specific requirements and changes per sector.  “The success we have achieved so far is because of the road map and we have the whole industry rallying behind a single road map that will get us to where we want to go,” Mercado said.

Employee count in the BPO industry has already breached the 1-million mark as of September 2014, and according to the Ibpap president, the industry is upbeat on hitting the target of $18 billion by end-2014, a 16-percent rise from 2013’s revenue tally of $15.5 billion.


IT spending by govt may reach $7.2 bn in 2015: Report

October 13th, 2014

Indian government spending on information technology (IT) will reach $7.2 billion in 2015, a 5% increase over 2014, said a report by technology research and advisory company Gartner Inc. on Sunday. Outsourcing12

The IT spend is likely to total $6.6 billion in 2014, including spending by state and central government agencies on internal IT, hardware, software, external IT services and telecommunications.

“IT services, which include consulting, implementation, IT outsourcing and business process outsourcing, or BPO, will be the largest overall IT government spending category through 2018,” said Anurag Gupta, research director at Gartner. “IT services are expected to grow 10.9% in 2014 to reach $1.8 billion in 2015, up from $1.6 billion in 2014—with the business process outsourcing segment growing 22% during 2014.”

While internal services, which include salaries and benefits paid to the information services staff of an organization, will achieve a growth rate of 9.9% in 2014, government spending on software applications unique to verticals will total $788 million in 2014, and it is expected to grow to $910 million in 2015.

“We expect a focus on expanding broadband penetration, accelerating digitization of core government processes, leveraging mobility to engage the citizens, cloud initiatives and public private partnerships,” said Gupta.


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