Posts Tagged ‘BPO’

India-based vendors bag 25 percent of IT deals: IDC

May 25th, 2015

India-based outsourcers bagged nearly 25 percent of the top 100 IT deals in 2012-14, global market research firm International Data Corporation (IDC) said on Wednesday.
Analysis of outsourcing deals worldwide in the past three calendar years revealed that top five vendors captured 50 percent of the total contract value as against 43 percent in 2013.

The top five top vendors with captive units are IBM, which bagged deals worth $13.8 billion, followed by CGI with $2.8 billion, Cognizant with $2.7 billion, Capgemini with $2.6 billion and Wipro with $2.3 billion.

“We have also seen a shift in the deals to commercial/private sector from state-run enterprises (pubic sector) in 2014, while an average deal size continued to shrink with fewer mega deals,a IDC vice-president for outsourcing & offshore services David Tapper said in a statement.

Noting that India-based global vendors were making inroads into the global top 100 outsourcing deals, he said leveraging the offshore model, incorporating new service delivery, investing in analytics, social media and mobility and local capabilities have enabled them to compete with established players in the outsourcing industry.

The analysis of top 100 deals across IT outsourcing and BPO (business process outsourcing) services markets provides guidance to outsourcers and service providers looking to optimise potential opportunities in capturing deals that rank at the top of the outsourcing market.


Sale of Serco BPO hits pricing stumbling block as PEs drop out

May 19th, 2015

The sale of Serco BPO, India’s third-largest business process outsourcing company, has seen some private equity firms drop out of the bidding, as the price being asked for by the BPO’s UK-parent is too high, leaving Blackstone as the main private equity firm in the fray, sources with direct knowledge of the matter told ET. Outsourcing39

Serco BPO, which has about 60,000 employees globally, was put up for sale by Serco Group late last year, to help fill a £1.5 billion hole in its balance sheet. The process was expected to be completed by May, but it may take a little longer, as buyers and sellers haggle over price.

“Serco Group has set a threshold that is just too high. Apax has dropped out and, though Blackstone is the front-runner, the deal over there too is being held up on the price,” a source with direct knowledge of the matter said.

Part of the problem is the kind of haircut Serco Group will have to take on the sale. It bought Intelenet, as the firm was known, for over $630 million in 2011. Nearly four years later, it is being valued at a little over $400 million.

“The parent is trying to lessen the blow they will have to take on the sale. It’s not an easy negotiation. It makes it worse than Blackstone is trying to buy the unit back for much less than it sold it to Serco for. Serco is looking at a price closer to $500 million,” a second source with knowledge of the matter said.

He added that it was unlikely the sale would fall through entirely because Serco Group is a ‘very motivated seller’. CVC Capital Partners is also in the final stages of the process.

Serco had not responded to a request seeking comment for this story at the time of going to press. Apax declined to comment and Blackstone could not be reached. Serco has mandated Citigroup to manage the sale. Blackstone had backed management buyout of Intelenet in 2007, with investment of about $260 million. It then sold the business to Serco.

In a strategy meeting in March, the group told analysts the process of selling its Entertainment and Leisure was ‘well advanced’ and in its Great Southern Railway business has confirmed diligence and definitive documentation is being negotiated.

“We think Serco could consider selling the Indian and UK BPO private sector BPO businesses separately,” Robert Plant, an analyst with JPMorgan, said.


BPO brings cheers to rural youths

May 14th, 2015

‘Local people can easily earn a minimum monthly pay after initial training’Outsourcing35

Fresh from college, rural youths used to migrate to cities and towns and join the ranks of unemployed in search of jobs even while pursuing crash courses.

This is not the case with those in Dubagunta and surrounding villages in Kandukur division as they are now assured of a good placement in the expanding Business Processing Outsourcing (BPO) industry thanks to Prakasam Incubation Centre started by technocrat Kancharla Srikanth.

Sd.Javid, one of the team leaders in the 200-seater rural BPO recalls that after completing B.Sc in Chemistry, he had been attending many number of interviews but failed to get a suitable job for his qualification in the past.

“Now, I am happy working as a team leader in the BPO involved in voice processing for a leading telecommunication firm working from my village itself ”, he adds with a sense of satisfaction.

Salima, an MBA graduate, joined the BPO a year ago. “Now I am confident of convincing any customer over the phone and solve their problems”, she says while overseeing a group of colleagues attending to customers complaints over phone at the rural BPO, an initiative of Prakasam Engineering College (PEC). “Earlier, we did not have any other option but to go to cities. Why should I work for the same salary elsewhere, when I can work from here itself ”, asks Ch. Anusha, a senior BPO staffer who hails from a remote Narasingolu village.


Local people in the age group of 18 to 30 years easily earn a minimum monthly pay of Rs. 6,700 after initial training, explains Mr. Srikanth whose firm had also tied up with the Andhra Pradesh Skill Development Corporation to eradicate rural unemployment by imparting right skills for rural youths without migrating to far away cities. Most of youngsters who join the BPO belonged to BPL families, he adds.

After working here, trained persons move out to seek better jobs in the BPO industry elsewhere making way for freshers, whose communication skills are honed from the start before they are absorbed as entry level assistants, adds Mr Srikanth, a post-graduate in Business Administration with a degree in Electrical and Electronics Engineering.

“I am determined to create at least 4,000 jobs to rural youth in the area in the next few years and contribute to eradication of rural unemployment” adds Mr. Srikanth, whose firm has joined hands with the Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) to train women for suitable jobs in the garment industry.

Students of the college also get an opportunity to earn while studying by working after college hours, adds PEC Correspondent K. Ramaiah.


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.


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