Posts Tagged ‘BPO’

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.”


Value of IT outsourcing deals in the UK up 15%

February 16th, 2015

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

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

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

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

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

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

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

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

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

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

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


Infosys to provide outsourcing services to Dutch insurance company

February 9th, 2015

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

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

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

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

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

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


Why IT Honchos are Queuing up to Meet Barack Obama

January 27th, 2015

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

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

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

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

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

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

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

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

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

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

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

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


Kakinada SEZ opens rural BPO

January 22nd, 2015

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

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

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

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

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

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

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


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