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Posts Tagged ‘Industry’

Eton to build more BPO space amid shortage in industry

September 30th, 2011

Eton Properties Philippines Inc. is stepping up the construction of five to seven business process outsourcing office buildings to take advantage of an industry shortage that is seen to last until the end of next year.

In an informal briefing, Eton president Danilo Ignacio said the firm is currently completing designs for two new BPO buildings in Eton Centris in Quezon City as prospective tenants jostle to secure more space for expansion.

Ignacio said BPO 3 and BPO 4 comes after the first building, 13-storey One Cyberpod Centris, has been fully leased out to some of the most successful Business Process Outsourcing (BPO) companies.

Tenants include Wipro Technologies, Genpact Services LLC, Unisys Philippines Limited, Integrim BPO Solutions, and Pascual Laboratories among others.

The entire 18,063 sqm office space in Two Cyberpod Centris, the second building set for completion by year-end, has been fully leased to a Fortune 500 company.

He said BPO 1 is fully leased out to several tenants while they have already negotiated with several prospective tenants who want to lease space in BPO 3.

“We have not signed up any of them yet but some are willing to advance payments just to secure the lease,” Ignacio said adding that rates have also gone up to around P500 per sqm from about P250 to P300 three years ago.

The 3rd and 4th Cyberpod Centris buildings are at the design stage and are scheduled to be completed by end of 2012. “Given the strong demand for office space, the buildings are expected to be pre-leased even before turnover,” said Ignacio.

Ignacio said BPO 3 and BPO 4 will be bigger buildings with each having 20 storeys and one basement each. Total area will be 42,000 sqm while gross leasable space amounts to 34,000 sqm per building.

“We can add more buildings if demand remains strong. Maybe 3 to 5 more before the end of next year,” he said noting that the masterplan for Eton Centris has space for 7 BPO buildings.

He added that, “if the market for office space continues to be strong, we are considering some adjustments in the Eton Centris masterplan to accommodate future demand for office space. There is a marked increase in demand for office space in the northern part of Metro Manila, given the outsourcing industry’s thrust to tap the manpower pool in the area.”

Ignacio said there is currently a shortage of office space since property firms had stopped building new office towers in 2008 even though demand did not slow down and continues to be at 300,000 sqm a year.

Office space is currently the company’s strongest contributor of recurring income as it continues to develop its property portfolio.

Source:http://www.mb.com.ph/articles/336125/eton-build-more-bpo-space-amid-shortage-industry

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Skilled people non-negotiable asset in F&A BPO industry

September 5th, 2011

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Finance and accounts BPO EXL, part of the global transformation and outsourcing company EXLService Holdings, foresees India emerging as a global destination for the high-end outsourced finance and accounts operations. According to Sanjay Gupta, global HR head of the company, the possibility arises from the phenomenal performance capability of Indian workforce beyond the commoditised delivery like simple extraction of data from accounting spreadsheet to distinguished higher functional abilities like financial planning and analysis. But what bogs down the higher billing potential is the issue of employee stickiness, he tells S Saroj Kumar of FE.
Tell us how low employee stickiness quotient hits workforce delivery capability?

There is a paradigm shift in our performance capability with clients willing to outsource some of their hardcore operations like financial planning and analysis, financial reporting and process documentation. It may be a surprising to know that finance and accounts (F&A) BPOs have a very high appetite for CA and ICWA professionals other than MBA Finance in the job market.

We need workforce stickiness to build traction in high-end task delivery as it involves high degree of domain training and unskilling and reskilling the team to meet the specific objectives of the client task.

Losing stickiness comes as the painful part of the outsourcing story where attrition and poaching kill the ripening of human resource to hone themselves for higher order tasks in the industry.

One needs to build incremental skills to metamorphose the talent for comprehensive global outsourcing engagement. Ironically, F&A workers armed with CA, ICWA and CFA degrees are lured with higher compensation and other rewards like promotion from the competing companies in the market. For F&A BPO and KPO companies people are the non-negotiable asset and attracting and retaining the requisite talent is the most challenging task.

How do you go about talent management?

Talent management is a top most priority of any growing company. In a F&A BPO business delivery model people’s cost is 60% of the sales followed by the IT cost and other infrastructure costs.

The cost of people to the company is the single largest expenditure factor that calls for diligent management of people asset. Prolonged working hours, very few holidays on yearly planner and anxious performance reviews are a passe at the present industry HR standards. With employee stickiness at stake, the industry is emerging as employee-friendly sector with a lot of pro-employee initiatives. We offer job rotation for those who wish to take a break; this could be a child-bearing women or a yuppie who wishes to go for higher studies. There is lot of attention to detail studies on employees’s work-life balance and taking the right intervention for course correction.

How do you see the fitment in the recent Outsource Partners International(OPI) acquisition?

OPI is a $100 million all-cash deal buyout aimed at boosting out footprint in the southern market. We are quite concentrated in the northern and western markets with presence in cities like Noida, Pune, Jaipur and Gurgaon. This acquisition is poised to establish a toehold in the south region with OPI’s 3,700 workers.

OPI operationally would boost our sales force, account management engine and client management engine. More on south, we are building a 700-seat delivery centre at Kochi.

The multilocational foray in a way serves the purpose of derisking which the clients are all the time concerned about.

Source:http://www.financialexpress.com/news/skilled-people-nonnegotiable-asset-in-f&a-bpo-industry/841720/0

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Opportunities before the gaming industry in India

August 1st, 2011

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An exciting segment for the gaming industry is the ‘iSegment,’ says Dhiren Shah, MD and CEO, Mile Nine Studios, Mumbai . Hinting at the opportunity for games that target exclusively iPhone and iPad in India, he adds that this refers to the premium segment, comprising passionate gamers, who may be less price-sensitive, but tech-savvy and high-earning. “The size of this iSegment is 100 million globally, and the size of iPhone4 alone is 1.8 million in India. If you go by the growth of Apple, this segment is growing very fast, importantly, with the same demographic structure,” avers Dhiren, during a recent interaction with Business Line. Our conversation continues over the email.

Excerpts from the interview.

How do you see the opportunities before the gaming industry in India?

In the last 15 years, India has witnessed considerable economic growth. This, in addition to its demographic structure, offers immense potential for the gaming industry. An amalgamation of our culture, rising urban incomes, education, IT development and telecom growth offer the perfect platform for the gaming industry. IT and telecom considerably drive the gaming industry. In fact, by 2013, the telecom subscriber base is expected to increase to 725 million with a mobile penetration of 60 per cent.

While the global gaming industry is growing at 22 per cent, the Indian gaming industry is valued at Rs 10 billion and is expected to grow to reach Rs 38 billion by 2015. India offers a huge pool of talent in the IT and programming sector which plays a substantial role in the development of quality games at reasonably lower costs. Additionally, while the gaming industry is picking up, serious players and investors are entering into the industry, consequently facilitating its further growth.

Recently, 3G rollout in India, an increasing number of high-end mobile phone users, and broadband and DTH penetration into homes, contributed to the strong market currents that the Indian gaming industry is now riding on. Over the years, the price of games has come down significantly, making games more affordable to Indian gamers.

High-end mobile phone consumers, for instance, a growing iPhone consumer base, point towards a promising future for the mushrooming gaming industry. These buyers thus become a very lucrative segment which includes a premium, tech-savvy population which, evidently, has higher disposable incomes.

Would you like to specify a few key areas of gaming in which India has the right potential?

Outsourcing came as a big break for the Indian gaming industry. Primarily, India’s outsourcing businesses cater to the US and the UK gaming market. With its existing IT infrastructure and talent, India can be a dominant player in the global games production segment. The strong infrastructure and capability to deliver high quality work can act as driving factors to increase our outsourcing pie in the international gaming market.

India offers a significant cost advantage to the global gaming industry. When the global market witnessed an economic slowdown, expenditure reached the top of the priority lists of game manufacturers in developed countries. Indian gaming industry can take the advantage of the present global economic environment as it offers significant cost reduction to the gaming production houses while maintaining the global standard of work.

However, content plays an important factor in the gaming world. An industry which is primarily dominated by mid- to small-sized players is not doing enough to create and distribute its own content. Intellectual property (IP) is one of the core areas where our gaming industry needs to work with greater focus. Furthermore, for the international market, it is also very important to understand their culture and interests while creating gaming content. Content localisation and distribution can play a vital role in the industry.

These factors coupled with extensive industry support in the form of funding, and an environment for domestic market development, can steadily further the progress of an emerging gaming industry.

Are Indian companies leveraging gaming for building their brands and business?

At the moment, the gaming industry is an emerging segment in India. It also offers innovation in brand building and a new way of interacting with the target groups of customers in any brand campaign. Brands can reach their audience with an option of multilevel interactions, which help create high recall value.

Some big business houses have already carried out in-game advertising campaigns for their brands. (Recently, Mile Nine Studios developed a game for Tata Indica Vista called Paint Ball Hitch to bring out the brand proposition effectively and build steady recall in the consumers’ mind aligned with the company’s current communication.)

Currently, around 45 per cent casual gamers in India are women; and women are increasingly and more frequently playing games in India. Therefore, advertising in any gaming content developed for targeting women gamers can be a very attractive proposition for a women’s brand to reach the TG with customised interaction. Success of in-games advertising will be a win-win situation for both the brands and the gaming companies.

What are the factors that stand in the way of India realising its potential in gaming and what are the antidotes?

Indian gaming industry will only be negatively affected if the growing demand of gaming professionals is not met. Going by the industry’s growth rate, India needs a large number of skilled gaming professionals. Talent is the key to achieving the true potential of the gaming industry in India.

Along with quantity, the quality of games produced is just as crucial. Highly skilled professionals are required to produce stunning designs and fresh concepts using the best in technology. Training and development programmes for the gaming industry professionals are crucial to meet future demand and supply needs. There is a scarcity of skilled gaming professionals in India and this is restricting the growth of the industry.

Piracy is another important threat, as in any other entertainment segment. It discourages investors and professionals to take necessary risk for the growth of the industry. If incentive gets reduced by the piracy, the growth story of the gaming industry can be derailed. The Government should address the piracy issue through effective policy and regulations.

In addition, tax and customs duty imposed on the gaming industry are considerably high in India. A sound Government policy that focuses on the reduction of taxes can be a strong catalyst for this industry. It can reduce the production cost, making the Indian gaming industry more competitive at the international level.

To those who aspire to be the part of the gaming industry, your tips on the skills they should have.

The success of the gaming industry largely relies on an ideal blend of technology, talent, creativity, marketing, and distribution. The people who want to be a part of this advancement have to find their niche in these fundamental areas. But the technical professionals who are into production and development need a high level of creativity and technical skill, in addition to a strong passion to produce stunning games for the world of gamers.

Source:http://www.thehindu.com/business/Industry/article2311020.ece

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Phl seen as next ‘dragon’ in BPO industry

June 6th, 2011

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The information technology – business process outsourcing (IT-BPO) industry in the Philippines is growing by about 25 percent a year, and investors see the country as the “next Asian dragon,” Commissioner Ivan John Enrile Uy of the Commission on ICT (information and communications technology) said last week.

Uy said many of the world’s largest companies operate the biggest services centers in the Philippines, which is why the IT-BPO industry here continues to grow.

As of last year, the industry employed about 525,000 people and had generated more than USD9.1 billion in export revenues, he added.

Uy, who was in Bacolod for the Negros Occidental First ICT Summit last Thursday, lauded Bacolod for being cited as the 3rd Next Wave City in the Philippines and Tholons International’s top 100th city in the world for outsourcing.

“That is a very, very good accomplishment for Bacolod to be ranked among the top 100th out of thousands of cities around the world,” he said.

Uy foresees that with the support of local officials the growth of the IT-BPO industry in Negros Occidental and Bacolod City will progress very fast.

Uy said it is the goal of CICT to strengthen the readiness of cities and regions outside Metro Manila to become preferred destinations for IT-BPO investors.

“With this strategy, we will decongest Metro Manila, spread economic growth opportunities to other parts of the country, and capitalize on the abundant and globally competitive workforce available in many parts of the country,” he said.

Approximately 20 percent of the IT-BPO industry is now located outside the main metropolitan areas of Manila and Cebu and this trend is expected to continue, he said.

The country is now witnessing the impact of the IT-BPO industry on rural communities, as other cities outside Metro Manila emerge as new IT-BPO hubs or the Next Wave Cities, he said.

Uy pointed out that Tholons, a renowned international research firm, in its 2010 Top 100 Cities in the World for Outsourcing ranked Manila as No. 4 and Cebu as No. 9.

The country’s Next Wave Cities that also made it on the list, are Davao – No. 69, Sta. Rosa (Laguna) – No. 88, Iloilo – No. 98 and Bacolod – No. 100.

Meanwhile, Gov. Alfredo Marañon said the construction of IT buildings on lot properties owned by the Negros Occidental provincial government is expected to create about 41,000 new BPO jobs here.

SM Prime Holdings has proposed to put up 10 buildings for BPO companies on a provincial government property along Gatuslao St. that will provide 40,000 jobs, he said, adding that the buildings will surround a convention center that SM plans to build in the area along with two hotels.

The provincial government is also establishing the Negros First CyberPark, a mixed-used complex consisting of more than 12,000 square meters of space for BPO services at a three-story building to be built at the Paglaum Sports Complex, which will provide more than 1,000 jobs, he added.

Rep. Alfredo Abelardo Benitez (Neg Occ., 3rd District), who was also at the summit, said he will help tap government resources for infrastructure and academic support for the IT-BPO industry.

Benitez also said he is supporting the efforts to create a Department of ICT, and the passage of bills to ensure data privacy and to curb cyber crime.

Source:http://www.abs-cbnnews.com/business/06/05/11/phl-seen-next-dragon-bpo-industry

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Tags: BPO Industry

Can agencies pay enough to attract top IT talent?

April 19th, 2011

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In the various debates about outsourcing, insourcing and federal pay, one issue almost always comes up: The tough competition for IT talent.

Although federal agencies have the advantage of doing some very cool projects, they still have a difficult time competing for up-and-coming IT workers, many readers say. The problem is that techies working in hot fields – developing enterprise smartphone apps, for example — demand pay and perks outside the range of the General Schedule system.

“Our agency’s IT department is having to create non-supervisory 14s to hire system administrators because we can’t compete with private industry in pay,” wrote an FCW reader who called himself or herself Fed Up. “In three years, we’d probably only be able to hire a system admin only if we open the position as an SES position.”

Those young Turks are more likely to end up working for a software vendor or systems integrator already working in the sweet spot of the IT industry, rather than a federal agency, the theory goes.

That was the case of an information security expert who had recently left the Defense Department after just two years on the job. At first, the reader was willing to accept the fact that former colleagues in the private sector were making a lot more money. But then rumors of a pay freeze began and that was too much.

“I really want to serve (I have 15 years of previous state and local government experience on top of my private sector experience), but I refuse to be a punching bag for the politicians while my family suffers,” IT Sec wrote. “Take note, new feds: Your elected officials don’t care about you. If you can do better for yourself on the outside, go for it. I’m happy I did.”

If agencies cannot attract top talent, how does that affect their insourcing/outsourcing strategies? Should agencies simply cede the competition and spend more money on contractors any time new technology is involved? Or is that giving up too much control?

What do you think?

Source:http://fcw.com/blogs/insider/2011/04/fcw-challenge-federal-agencies-it-contractors.aspx

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Tags: Industry IT

2010 proves eventful for IT industry

December 29th, 2010

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The government was wise to target three sectors with huge domestic market demand without allowing monopolies to form. Still, Chinese firms can’t compete yet with Microsoft on software and Intel on computer chips. China ranks No. 1 in the supercomputer sector

In the middle of November, China’s Tianhe-1 topped the world’s supercomputer rankings. The machine features thousands of graphics chips and is capable of achieving a sustained performance of 2.5 petaflops, or 2,500 trillion calculations per second. It was the first time China surpassed the United States in the sector. US-based Oak Ridge Leadership Computing Facility’s Jaguar system ranked No. 2.

The supercomputer, which requires high-end chips and server computing technologies, is a serious measure of a nation’s advanced IT technology and research ability. A supercomputer works for both industry and public sectors.

The use of a supercomputer can help an aircraft or auto manufacturer shave up to 60 percent off the research period for developing new cars or planes, for instance. The machine will also be used to crunch population trends and environmental protection data and produce weather forecasts. Debut of the iPad

Apple started selling the iPad on the Chinese mainland in September and it has proven to be more than just “a bigger iPod Touch.” The success of the iPad – shipments totaled more than 7 million by October worldwide – have attracted many rivals, including Samsung, RIM, Toshiba, Acer, Huawei and ZTE to either release iPad-like products or make plans to do so soon. Most firms have adopted Google’s Android operating system for their tablet PCs.

Analysis group Gartner has forecast that tablet sales worldwide will reach 54.8 million units in 2011. And they will displace around 10 percent of PC units by 2014.

The iPad is the first successful device in a third category between a laptop and a smart phone. With mobility and application store business models, Apple has helped create another product category.

A wide variety of tablet devices, with updated iOS 4.2 by Apple now have multitasking and wireless printing functions and Google’s new Android 2.3 having much improved user experience, will challenge the dominance of Microsoft and Intel. Overseas IPO wave

Six Chinese stocks started trading on the New York Stock Exchange and Nasdaq this month, the most ever in a single month. The IPOs were issued by Youku, known as China’s YouTube, and Dangdang.com, which has been likened to Amazon. Thirty-eight offshore IPOs this year raised US$4 billion, accounting for about 25 percent of first-time share sales in the United States, according to data firm Dealogic.

Shares of Youku rose 161 percent in the first day of trading on the New York Stock Exchange. E-commerce firm Dangdang gained 87 percent after its IPO on the same day.

Source:http://english.peopledaily.com.cn/90001/90778/90860/7245307.html

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Tags: Industry IT

Global outsourcing industry grows 20%

October 31st, 2010

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On the back of revival in the outsourcing of IT services, the growth in the global outsourcing industry stood at 20% in the quarter ended September compared to the same quarter last year. This is quite in contrast to the preceding April-June quarter when the growth was led by the BPO services.

According to the latest report by the global management consulting firm Everest Group, the July-September quarter experienced a 89% increase in the annual contact value (ACV) in IT services and a 50% decline in the ACV of BPO deals compared to the same quarter a year ago.

“The reasons behind the growth in ITO is the increase in discretionary spending by companies. This kind of spending automatically influences investment in application development and system integration. There was slowness in the discretionary spending in the first half of the year, but this pick up is expected to continue till the next two quarters and the whole of FY 2011,” said Amneet Singh, vice-president, Everest Group.

Quite in contrast the April-June quarter had witnessed a 33% increase in the average contact value (ACV) in the BPO segment and a marginal decline in the contract values of ITO on a yearly basis.

Analysing India’s share in global outsourcing, the report observed that the Indian buyers constitute 5% of the total transactions globally. The Indian service providers cater to 60% of the global IT market and 35-40% of the BPO segment.

The overall value in deals increased from $2.3 billion to $3.4 billion on a year-on-year basis. Even on a sequential basis, the IT services signified 3% growth in the ACV compared to the April- June quarter, whereas the contract value of back office declined on a marginal basis.

source:-http://www.financialexpress.com/news/Global-outsourcing-industry-grows-20-/704602/