Posts Tagged ‘BPO’

Global BPO Market in the Public Sector 2015-2019

April 17th, 2015

Research and Markets has announced the addition of the “Global BPO Market in the Public Sector 2015-2019″ report to their offering. Outsourcing28

The analysts forecast the Global BPO market in Public sector is set to grow at a CAGR of 6.0% over the period 2014-2019

BPO is a segment of outsourcing, which consists of subcontracting certain business processes of an organization to a third-party vendor that has expertise in the required domain. The Public sector refers to government services such as the military, police, public education, public transit, healthcare services as well as employees working for government organizations. The BPO services in Public sector support governments to perform various functions such as e-governance initiatives, taxation, asset registration, pensions, and welfare programs, including financial assistance for the unemployed, and in a cost-effective manner.

The Global BPO market in Public Sector can be categorized into four segments: F&A Outsourcing, CRM BPO, HR Outsourcing, and Procurement Outsourcing. This report covers information about the market share of the Global BPO market in Public sector by services and by geography.
One of the major trends upcoming in this market is the shift to omni-channel to increase the accessibility of end-consumers and to strengthen customer relationships. The omni-channel helps governments to synchronize and store detailed information about customers which eventually leads to easy tracking of complaints and customer queries.

According to the report, the Global BPO market in the Public sector is witnessing high growth because of the increased collaboration of IT services in the BPO sector. IT has facilitated the automation of various activity segments such as procurement, orders to pay, invoicing, accounts receivable, payroll outsourcing, and many others. Automation is increasingly being adopted to mitigate productivity problems and to control rising costs.

Further, the report states that one of the major challenges for the Public sector organizations is the need to spend cautiously because of market dynamics and the need to withstand budgetary pressures. These factors have forced government agencies to revise their outsourcing budgets, which eventually reduces contract sizes and number of contracts.

Key Vendors

Serco Global Services

Other Prominent Vendors

3i Infotech
Amadeus IT Group
ATS Group
HCL Technologies
NCO Financial Systems
Northrop Grumman


Gov’t lauded for support of BPO sector

April 3rd, 2015

President of the Business Process Industry Association of Jamaica (BPIAJ), Yoni Epstein, has lauded the Government for its support of the Business Process Outsourcing (BPO) sector, and the impact this is having on its growth and development.Outsourcing17

He said that he attended Parliament on March 17 to hear the Prime Minister’s Budget presentation and “I must commend her outstanding mention of the BPO sector, which continues to show that the Government is in full support of the sector.”

Epstein, who was among presenters at a recent BPO-focused forum, put on by the Montego Bay Free Zone Company as part of its 30th anniversary celebration at the Montego Bay Community College, also lauded Ministers of government for their facilitation of BPOs.

“They have really propelled the sector from where we started…to where we are today, of over 17,000 jobs,” he noted.

Epstein shared his 10-year vision for the sector, with the BPIAJ being the catalyst for the investment of over US$100 million for the provision of more than two million square feet of new space, the creation of 50,000 new jobs and the development of a “real local BPO sector” that has a stronger foothold in the sector because of the dominance of Montego Bay Community College and University of the West Indies-trained entrepreneurs within the sector, by the year 2025.

“I also want to be able to say that cybercrime …(and) lottery scamming are non-existent because of the work and the framework that have been put in place by the Government, to ensure that we knock out all of the things that impede us from growing,” the President envisioned.

Epstein said this is necessary for his dream of Jamaica becoming a world- leading BPO destination to be a reality.

Jamaica, he said, has the human resources with the skill sets and wherewithal to outdo the Silicon Valleys of the world with innovative software development, cutting- edge technology and a trained workforce.

“If we can work together as a team, everything that I have said is possible and very much a reality and not (just) talk. But, as we grow the sector, as we collaborate more…. share best practices, get rid of the ‘crab in the barrel mentality’, we have to look at how we can help each other to grow,” Epstein emphasised.


Philippines BPO ‘Coping Well’ with Wage Hikes

April 3rd, 2015

The Philippines is a popular destination for offshore BPO. However, experts have suggested that recent wage hikes in the BPO sector could make the country a less cost-effective outsourcing option.Outsourcing21

Roman Romulo, a district representative from the city of Pasig, said ‘we do not see the P15-increase in the daily minimum wage [for private sector workers in Metro Manila] influencing the decision of BPO players to either step up, or slow down hiring.

‘Fair wage increases will not diminish the country’s global competitiveness. If we look at India and our other competitors in the BPO space, their wages are rising faster than ours.’

In a recent study conducted by real estate consultant Cushman & Wakefield, the Philippines was named as the second most appealing destination for offshore BPO, closely following Vietnam. In terms of actual market size, India remains the world’s largest BPO destination.


Adoption of Value Added BPO Services to Drive Gains in the Business Process Outsourcing Market, According to a New Report by Global Industry Analysts, Inc.

April 3rd, 2015

Business Process Outsourcing (BPO) involves contracting of specific business functions to third party service providers. Though cost arbitrage remains the primary growth driving force in the BPO industry, businesses are realizing the importance of outsourcing as a strategy to lower product development cycle and boost innovation within an enterprise. Focus is rapidly shifting from the traditional model that lays emphasis on achieving labour cost reduction to now providing comprehensive sector specific value-added services. Another factor driving growth is the increase in outsourcing by mid-size companies in a bid to address the issue of rising costs associated with regulatory and compliance requirements.Outsourcing20

Plagued by decreasing margins from traditional outsourcing activities, BPO providers are now focusing attention on adoption of new generation technologies such as process automation,Big Data & Analytics, secure private cloud infrastructure and BPaaS (business process as a service) among others. Use of robotic process automation (RPA) software solutions that replicate some of the manually operated processes is gaining significance. Companies are also embedding analytics-based BPO solutions in processes to offer all rounded actionable insights and help customers build powerful brands and business strategies. Further, growing security concerns are expected to prompt companies to prefer the private cloud model over its counterpart public cloud. The transition to new platforms is to help companies explore new opportunities by offering advanced services such as robotic process automation (RPA), secure private cloud infrastructure and BPaaS (business process as a service).

As stated by the new market research report on Business Process Outsourcing (BPO), the United States represents the largest market worldwide. Asia-Pacific ranks as the fastest growing market with a CAGR of 10% over the analysis period. India remains the most lucrative destination for BPO services, while Philippines emerges as a strong competitor.

Key players covered in the report include Accenture Plc, Aon Hewitt, Automatic Data Processing, Inc., Capgemini, Capita Plc, Ceridian HCM, Inc., CGI Group, Inc., Cognizant Technology Solutions Corporation, Computer Sciences Corporation, Dell Inc., EXLService Holding, Inc., Genpact Limited, Hewlett-Packard Development Company L.P, Infosys BPO Ltd., International Business Machines Corporation, KARVY Global Services Limited, NTT DATA Corporation, NGA Human Resources, Randstad Holding nv, Serco Group, Plc, StarTek, Inc., Sopra Steria Group, Syntel, Inc., Tata Consultancy Services Limited, TriNet Group, Inc., Wipro Limited, WNS (Holdings) Limited.

The research report titled “Business Process Outsourcing : A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of the market, industry overview, trends, growth drivers, issues, and recent industry activity. The report provides market estimates and projections for BPO in US dollars for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (Australia, China, India and Rest of Asia Pacific), Latin America (Brazil and Rest of Latin America) and Rest of World. Key horizontal segments analyzed for the global and regional markets include Finance & Accounting, Customer Services, HR, KPO and Procurement. End-use markets analysed include Manufacturing, Telecommunications & Technology, Banking, Insurance & Finance Services, Retail and Others.


More Space For BPO Sector

March 26th, 2015

Factories Corporation of Jamaica Limited (FCJ) is to spend $705 million this fiscal year on capital works, which will include the construction of 120,000 square feet of additional space in Naggo Head, St Catherine.Outsourcing19

In addition, the FCJ is to retrofit approximately 66,000 square feet of existing factory space at the Montego Bay Free Zone for use in the information communication technology/business process outsourcing (BPO) sectors.

Similarly, the Montego Bay Free Zone says it plans to continue focusing on being the leading provider of space that supports the BPO sector in Jamaica. The entity said it intends to expand its operations through the construction of 63,000 square feet of rentable space.

“The projected development will partially satisfy the increased demand for space from existing and prospective operators in the BPO sector,” the entity said.


Business Process Outsourcing Sub-Industry To Drive Growth

March 26th, 2015

The business process outsourcing (BPO) sub-industry has been identified as an area which will drive significant economic growth and employment generation.Outsourcing18

“A national five-year strategy for the expansion of the sector which, all things being equal, should increase employment from the current levels of 15,000 to 30,000 by 2020 will be submitted to Cabinet shortly,” Dr Peter Phillips, the country’s finance minister, said in Parliament.

“A strategic objective is to move Jamaica up in the value chain in the BPO industry from simple call centres up to knowledge processing centres, outsourcing more professional services such as legal and accounting support, software development and technical support service,” Phillips added.

He said in recent months, there have been the construction and lease of 50,000 square feet of space in the Barnett Tech Park, and plans are being finalised for construction and lease for another 100,000 square feet.

Additionally, a 70,000-square-foot facility in Kingston (formerly the Claro building) is now being used for BPO operations on the basis of a local investor purchasing the building.

Phillips also said that a 70,000-square-foot BPO facility has been completed in Mandeville.

“All told, the sector is expected to add at a minimum another 6,400 jobs in 2015-2016,” the minister said.

He told Parliament that in order to enhance the employment-generating capacity and profitability of the investments of the BPO sector, the Growth Agenda Subcommittee of Cabinet will be giving oversight to JAMPRO in the provision of financing support for infrastructure development and training, as well as an aggressive marketing strategy.

Audley Shaw, the opposition spokesman on finance, agreed that the BPO sector offers significant potential for exponential growth in job creation.

“This sector must be treated as an emergency creator of jobs in the economy. The target of creating 20,000 by 2018 is far too modest, this must be doubled to 40,000 jobs,” Shaw said.


Infosys, Accenture in last lap for Rs 900-crore deal in Australia

March 23rd, 2015

Infosys and Accenture have entered the final lap to clinch a Rs 900-crore ($150 million) IT outsourcing contract from Australia-based financial services provider Macquarie Group. The five-year contract will include application development, testing and infrastructure management services (IMS), said sources privy to the development. Outsourcing13

Macquarie provides banking, financial, advisory, investment and funds management services. It employs more than 13,900 people in 28 countries. As of last September, Macquarie had 295 billion euro worth of assets under management. When TOI contacted Infosys and Accenture, they declined to comment on the deal. Both Accenture and Infosys have engaged with Macquarie in the past. Accenture has assisted Macquarie in its core banking implementation, while Infosys had won a $25-million procurement and account payable BPO deal in 2012.

Sources told TOI that HCL, Cognizant and Genpact-Headstrong are some of Macquarie’s incumbent IT service providers.

“Under Vishal Sikka (Infosys CEO), and with his focus on digital technology, design thinking and automation, Infosys could well be positioning itself to return to its former glory, especially in the financial services sector where it is still a very strong performer,” said Phil Fersht, chief executive officer of US-based IT advisory firm HfS Research.

“There is a cut-throat race to close out deals like Macquarie – much will depend on which provider wants it more and is prepared to take a risk on the margins down the road. It also depends on how much ancillary business the providers think that can glean if they win the application development and testing pieces,” Fersht added.

Infosys’s cross-town peer Wipro has bagged an IT contract from Greater Cincinnati Water Works (GCWW) to transform the utility’s CRM (customer relationship management), billing and service bureau operations. GCWW provides about 133 million gallons of water a day to over 1 million people across the states of Ohio and Kentucky in the US.

Hewlett-Packard (HP) has won three multi-million dollar IT outsourcing contracts with sizable work expected to be done offshore (much could come to India). It has signed a seven-year infrastructure and applications services agreement with Dutch retailer Ahold, which has presence in the US and Europe and which did net sales of 32.8 billion euro last year.

“This is a major deal renewal. Originally it was an EDS contract (EDS was acquired by HP), but HP pulled out all the stops to provide end-to-end services. This was not easily won as the Ahold team sought concessions for giving HP more of its business but should be a win-win for both companies,” said Ray Wang, CEO of US-based Constellation Research.

When TOI contacted Ahold on the deal, spokesperson Tim van der Zanden said, “We do not disclose all the partners we work with, and cannot comment on speculation regarding contract values.”

HP has won a $52-million (Rs 312 crore) IT contract from Victoria Police. HP pipped IBM, Fujistu and Capgemini to bag the five-year deal to provide application development, workload and cloud solutions and managed mainframe services. HP has also bagged an over $3.2 million (Rs 18 crore) contract from JP Morgan where HP will support critical processes for its investment banking business and trading floor for securities services. When TOI contacted HP for comments on the Ahold and JP Morgan deals, the company said, “Request you to direct your enquiry directly to the organizations concerned.”


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