Posts Tagged ‘Jobs’

Insourcing of IT jobs gains popularity

September 22nd, 2014

In a major reversal of the outsourcing trend, enterprises across verticals have started to build and strengthen their internal IT teams. They don’t want to depend on outsourcing service providers any more to gain the ‘India advantage’ in terms of low cost and talent, say experts.Outsourcing12

Companies like General Motors, AstraZeneca and Dun & Bradstreet (D&B) have started to set up their own captive units or build on the existing ones to do IT work that was earlier outsourced to external vendors. The ‘in-sourcing’ trend has started and is here to stay, said David Smoley, chief information officer of AstraZeneca.

“It is a silent trend. Companies like General Motors are on it for the last three years. This is unlike the earlier outsourcing trend, which had people shouting from rooftops. So nobody is talking about ‘insourcing,’ at least not yet,” he added.

Global pharma major AstraZeneca inaugurated its offshore IT development centre at the Ramanujan IT City SEZ in Chennai last Tuesday. Starting with 60 people, the company plans to scale up to 300 by end of the first year. The overall strategy is to bring outsourced IT work back into the company’s fold to improve efficiency and time-to-market.

Eight global vendors including Cognizant, TCS, HCL and Wipro have been providing IT services to AstraZeneca.

The company’s aspiration is to cut down the amount of work outsourced to external vendors over the next 3-4 years, he added. For 2013, the pharma major spent about $1.3 billion on IT projects and services.

Large companies have started to recruit directly in India to build their captive units. They seem to have learnt from IT vendors how to go all-out to find the necessary talent.

“Our vendors focused on their profit margins and not ours. On an outsourced model, there are three or four arm links by way of vendors’ people working on projects, teams managing them and further teams from our side managing overall activity. By ‘insourcing’ work, we will have fewer handoffs and simpler controls,” Smoley said.

“We see a decisive trend in which large companies including the big four consultants have started to hire directly from colleges. They recruit students from across streams for their IT operations pretty much the way the IT vendors do it. They are trying to cut costs by hiring freshers directly from colleges to build their in-house IT teams,” said Sekar Viswanathan, vice president of VIT University.

Cost, though, is not the only reason for insourcing, said Vinod Baya, director- technology and innovation at PricewaterhouseCoopers (PwC). As more businesses go digital, IT products become intellectual property, which cannot be outsourced.

“What is true is that IT is increasingly becoming a source of competitive differentiation. As a company, you’d want to own it because your vendor won’t know your business enough. As a critical part of the digital enterprise, technology becomes your business and not your vendor’s,” he added.

Outsourcing started to gain steam when companies set out to find experts to do non-core work. However, for most B2C businesses that have gone digital, IT has become a part of their core activity. For example, a company like FedEx uses a lot of technology and its IT is its intellectual property and a market differentiator.

“Even non-digital native companies have become tech players and they sure want to own their future,” Baya reiterated.

However, insourcing may not be the death knell for the Indian IT industry. From being vendors, they can now become partners, said S Ganesh, chief executive officer of D&B Technologies and Data Services.

“It is a great opportunity for Indian IT players. More so for the mid-size IT companies, which can now reach out to large enterprises with flexible pricing policies. We ourselves are setting up a captive unit and are more comfortable with mid-size vendors.

“The vast pool of talent was, is and will continue to be India’s biggest advantage. It is so difficult to build even a 20-member IT team in Europe. Enterprises including Standard Chartered, Pfizer and Goldman Sachs have their captives in India and continue to strengthen them mainly for this reason,” he added.

Indian companies will have to change their pricing methods, account management and delivery models to deliver services within India. IT work will become more collaborative and in future, vendors may even go up to the level where they can jointly own intellectual property, Ganesh said.

Source:http://www.mydigitalfc.com/opportunities/insourcing-it-jobs-gains-popularity-832

The benefits of outsourcing for a small business

September 19th, 2014

So your business is flourishing, and you’re taking on an increasing workload; the question is, how do you maintain this steady growth without compromising its core values and quality of service? There comes a time in every business’s life cycle when the issue of staff constraints begins to raise its head, and the question of outsourcing becomes a serious consideration.Outsourcing7

Firstly, why do businesses outsource? One of the main reasons is simply time – or lack of it. Small businesses, ones that are growing quickly and juggling lots of plates, simply cannot afford to have key members of staff overstretched to the point of ineffectiveness. Outsourcing offers a spare pair of hands to help manage busy periods, bringing in specific skills on a temporary basis, to help support the company and maintain the success it has built from the launch onwards. Using expert outsourcing organisations essentially frees up your staff to concentrate on the core of the business and to concentrate on developing their own skills.

Outsourcing can provide further multiple benefits. It can also help control capital costs by reducing overall spend on staff; hiring a full time specialist is much more expensive than using a freelancer to do the same job, who can be hired on and off dependent on the needs of the business.

Outsourcing also allows companies to turn on new projects quickly, reacting to market demands and fulfilling customers needs much more effectively. Customers can often request work that the core business might not be able to provide – outsourcing can help to meet this demand and draw in new revenue streams, which might not have been part of the existing model in the first place.

Further benefits which are important for all businesses, not just those at the early stage of their lifespan, are the expertise that outsourcing tasks can bring, and the risks it can mitigate respectively. Utilising external specialists can help breathe fresh life into a venture and offer a different perspective to a particular challenge, which can be vital when maintaining growth in a small business. In terms of mitigating risk, take hosting or working in the cloud for example; if you’re a small business utilising sensitive data, it can be much more effective to use an expert cloud hosting provider to look after it. Not only will they have the skills to do this effectively, they will also be much more aware of regional regulations and legal requirements, which in turn reduces the legal risk that could threaten your company in the case of a data breach.

Pitfalls of outsourcing
So now that we’ve covered some of the benefits of outsourcing, what are some of the pitfalls that can be encountered when working with external partners at this stage in the business?

One of the first points I would raise is the loss of control to an extent. When outsourcing to a partner, you are placing a huge amount of trust in the ability of their team to deliver on your brief. If the brief is poor, misunderstood, or the team working on it are not the strongest, then you run the risk of results being delivered that are not up to par. And in many cases you will still have to pay for these. This can be hugely damaging, especially in the early stages of a business when budgets are tight.

The second are hidden costs. When outsourcing, especially to service providers, there will be a limit to the amount of work that you are paying for, and so anything extra that arises will often be subject to further outlays. Being at arm’s reach with your external partner can often mean costs are not necessarily transparent when you first begin working together.

And finally, confidentiality can be an issue. No matter how much you trust an external partner, if you share data with them then essentially you are increasing your risk by relying on their security systems. In most cases this is never an issue, but as soon you share your data with another organisation the likelihood of a breach increases as it’s now in a location that is not under your immediate control.

While outsourcing can offer risks, for most businesses in early development stages it is a vital ingredient to success. Every business needs support at certain times in its life cycle, and so choosing the right partner can be the difference between triumph and failure.

Source:http://www.smallbusiness.co.uk/running-a-business/business-management/2470972/the-benefits-of-outsourcing-for-a-small-business.thtml

First IT jobs went offshore, now they’re being automated

September 3rd, 2014

The US and European IT roles that were pushed to offshore service providers will increasingly be automated, as the outsourcing giants look to preserve their margins. outsourcing30
By 2016 almost 1.1 million IT jobs are expected to have been sent offshore by major US and European companies.

The drive to send jobs abroad has, in part, been fuelled by low labour costs relative to western countries, with recent entry-level salaries for engineers in India falling between $4,200 and $5,900.

However, after years of double digit growth in Indian IT workers’ wages and with western customers demanding more for less, offshore service provider margins are being squeezed.

To protect their profits, major providers are beginning to automate an increasing number of roles traditionally carried out by systems adminstrators.

Milind Govekar, VP with analyst firm Gartner specialising in IT operations, said the push towards automation is partly being driven by the complexity of IT systems these service providers run on behalf of their clients.

“I often call IT an archaeological science, because nothing dies. You have generations of applications and infrastructure buried in an organisation. There’s a bank in the UK that has applications running from 1957. You can imagine the complexity that particular environment has,” he said.

“It’s a combination of old systems, new systems and everything co-existing. At the same time demand is going up as well, as almost all organisations have launched digital business initiatives.”

Customer expectations of service providers are also rising. Govekar referenced a large European bank outsourced to India’s largest IT services company TCS that expects demand on its systems to grow by 25 – 30 percent each year but wanted its costs to increase by no more than five percent.

“A lot of these service providers are saying ‘It’s just not sustainable to hire people and get them to maintain these systems’.”

For example, the CEO of TCS recently said in an interview the firm is working on up to 15 platforms to automate different aspects of its work. For its part Wipro is building its FixOmatic framework, which it says will enable automation of up to 40 percent – 45 percent of all level 1 and level 2 support tasks, reduce downtime and lower operational cost.

What sort of roles are being automated?

Automation software maker IPSoft has deals with some of the largest IT companies operating in India – such as Wipro, Cognizant, Infosys and Accenture. The firm is one of a growing number of businesses providing automation technologies for running and maintaining an IT estate.

A look what IPSoft does demonstrates the types of tasks that are being automated. The firm’s main product is IPcenter, a software platform that is designed to monitor and automate the running of IT infrastructure, and respond appropriately when a problem arises.

“If you’re driving a car a light will come on to tell you to go to the garage. What IPSoft is doing with their technology is basically trying to solve any issues before it gets to the stage where the warning light needs to come on,” said Martijn Gribnau, chief change officer at IPSoft.

IPcenter relies upon “virtual engineers”, autonomic software that can handle incidents across the corporate infrastructure – from configuring a misbehaving firewall to reducing the load on a server running virtualised machines. Virtual engineers control their own operations, monitoring the network for incidents and are able to adapt and change tasks if a higher priority incident occurs.

“It’s basically a third generation expert system. It’s not cognitive yet, but it’s smart automation of virtual engineers. What we basically do is look at what an engineer is doing and automate it,” said Gribnau.

The product is designed to automate what Gribnau referred to as level one and two support engineers, as well as part of level three engineers’ responsibilities, as defined under the Information Technology Infrastructure Library service management practices.

IPSoft says that IPcenter autonomically resolves an average of 56 percent of incidents without human intervention and up to 90 percent of level one support incidents.

What effect is it having on IT hiring?

Fierce competition for the hundreds of thousands of newly qualified engineers India’s universities produce each year has pushed up salaries and encouraged service providers to poach staff from competitors.

Gartner’s Govekar said as demand grows for outsourcing and external services, including cloud, providers are looking at automation as a way of “not hiring more people”.

“They are also using automation as a way of buffering themselves against this huge turnover of people, where people are jumping from one organisation to the other. They look at automation as a way of filling those gaps, of making sure that certain repeatable tasks that systems administrators undertake are very much automated.”

The desire to control labour costs is already evident at the major service providers. After years of paying engineers double-digit salary increases, Infosys and its competitors are offering no more than 10 percent this year, in spite of projections by the Indian IT association Nasscom that the industry will grow by 15 percent, an improvement on 2013.

When contacted, Wipro had no comment to offer and Infosys declined to share its views.

Source:http://www.techrepublic.com/article/first-it-jobs-went-offshore-now-theyre-being-automated/

Online marketing to create 1.5 lakh jobs in India

August 14th, 2014

About 1.5 lakh jobs are expected to be created in the digital marketing space within a couple of years as more companies tap the Internet and the social media platform to bolster business, say HR experts. India is emerging as a digital outsourcing hub for diverse services including online advertising, social media and website design, they said.

“With both businesses and consumers increasingly shifting their focus to the digital medium, there will be 1.5 lakh jobs available by 2016,” Manipal Global Education Services Executive President V Sivaramakrishnan said.

Going by estimates, around 25,000 new job opportunities are likely this year itself in digital marketing space. The rising demand is also spurred by increased use of the Internet and mobile phones besides fast growing e-commerce businesses. However, the availability of talent is less than demand.

“Almost every single brand has put in place a digital marketing strategy and are struggling to hire people to execute the same,” Trivone Digital Services Founder & CEO L Subramanyam said. Reflecting similar sentiments, CareerBuilder India MD Premlesh Machama said there is a dearth of skilled and experienced professionals for digital marketing.

HR firm Randstad India CEO Moorthy Uppaluri said there has been a huge proliferation of technology that has changed the way companies engage with their clients and employees. “Hence, the focus of companies to enter new digital channels of engagement is driving up the demand for digital (marketing) professionals,” Uppaluri said.

According to MeraJob India CEO Pallav Sinha said, India is also becoming a potential outsourcing hub for digital marketing services, with many entities taking up projects from clients in the United States, Canada and the United Kingdom.

Unison International MD Udit Mittal said the requirement for more skilled and efficient digital marketing professionals is rising at an exponential level. Among the business areas, e-commerce is turning to be a major recruiter of digital marketing professionals.

Lighthouse Partners Managing Partner Rajiv Burman said the digital space offers opportunities to professionals working in marketing departments of corporate as well as fresh graduates. Echoing similar views, Advaiya Solutions’ Founder and CEO Manish Godha said growth of digital marketing segment is very promising and would create many job opportunities.

“Other areas for digital marketing growth include social marketing, content creation and management, search marketing, email marketing, analytics and video production,” he added. As per Randstad India estimates, the starting salary for digital marketing professionals is in the range of Rs 4.5-5.5 lakh.

Source:http://www.bgr.in/news/online-marketing-to-create-1-5-lakh-jobs-in-india/

EGS Centris to create 2,000 new BPO jobs

June 13th, 2014

Business process outsourcing company Expert Global Solutions (EGS) is looking to add 2,000 new employees to its newly inaugurated building at Eton Centris in Quezon City.Outsourcing34

The 21-storey building, EGS Centris, is expected to be home to 6,000 employees once it is fully occupied.

EGS Philippines president Bong Borja said most of the employees occupying the new facility were transferred from its former site at the ELJ Communication Center along Mother Ignacia St.

EGS Centris, which serves as the firm’s flagship site in the Philippines, has an estimated 4,000 seats.

The firm expects the building to be fully occupied by the end of the year.

Borja described EGS Centris as the “most modern BPO facility in the Philippines” servicing most of the company’s global operations.

The building also houses the firm’s Global Command Center to monitor its global services in the Latin America and the United States.

“In that Global Command Center, we don’t only monitor the performance of our people here servicing our clients in the US, but it also monitors the performance of our other locations in the world like Uruguay and Guatemala,” said Borja.

Aside from advance technology, the facility also features a recreation area and a gym for its employees.

The building is located at the Three Cyberpod Centris-South Tower in Eton Centris, a 12-hectare mixed use township project. It is the third office building developed in Eton Centris.

Expansion plans in the Philippines

EGS executive vice president and chief operating officer Jack Jones said EGS will continue to expand its network in the Philippines,

Jones said the Philippines is “the best BPO destination in the world” because of its abundant talent pool.

“The Philippines is a key strategic location for our company. We have about 45,000 people worldwide. The largest single concentration of staff outside the United States is in the Philippines with about 14,000. It is the best BPO destination in the world, bar none. So adding a world class facility in this location for us is consistent with our strategy, and our client requirements,” he said in a press conference after the inauguration of EGS Centris on Wednesday.

Jones added that EGS will be looking to offer employment opportunities in shared services such as information technology and human resources.

“It’s a career path. You don’t want to just have a huge call center staff, you also want to have the ability for people to move out from call center jobs on to more day shift-type work,” he said.

Borja, meanwhile, said EGS is set to launch a new site in Northern Luzon within the year.

“There’s a new site that we’re hoping to launch this year, another provincial location, and it’s going to be in the north. We’re going to be one of the first movers there,” he said.

EGS has facilities in Cubao, Marikina, Alabang, Bonifacio Global City, and Clark.

Borja said the firm is looking to build more facilities not only in “next wave cities” but in emerging cities as well.

“We are big believers that talent in the Philippines is not concentrated in Metro Manila. There’s a lot of talent in the provincial locations,” he said.

EGS, the holding company for APAC Customer Services Inc. and NCO Financial Systems Inc., earns approximately $1.5 billion in annual revenue.

Source:http://www.abs-cbnnews.com/business/06/12/14/egc-centris-create-2000-new-bpo-jobs

Pay packet outsourcing plan scrapped

June 4th, 2014

FEARS of significant NHS job losses in Oldham have been eased after the scrapping of plans to privatise payroll preparation.Outsourcing19

The Pennine Acute Trust was considering giving thr job to to private companies oversees, which could have led to significant job losses in the borough.

NHS staff and union Unison developed alternative plans. Unison North-West regional convenor Angela Rayner said: “It’s a great relief that the Trust has seen sense. Privatisation would have cost jobs but no savings or service improvement.”

The campaign against privatisation has attracted widespread support and a 3,000 name petition, signed by Oldham West and Royton MP Michael Meacher among others.

But Jean O’Donnell, Unison branch secretary, has warned the struggle isn’t yet over: “The Trust hasn’t yet taken a final decision on whether to privatise human resources. We are hopeful the board’s careful deliberations will again lead them to back the in-house bid.”

Source:http://www.oldham-chronicle.co.uk/news-features/8/news-headlines/86202/pay-packet-outsourcing-plan-scrapped

Automation Transforms the IT Skill Set

May 28th, 2014

The rising prevalence of automation in every aspect of work, from so-called knowledge work to software development itself, is eliminating the need for many lower-skilled jobs but driving demand for IT workers with strong leadership and communication skills.Outsourcing13

“Technology is biased. It is affecting some groups differently than other groups. Unskilled and middle skilled workers are more likely to see their tasks automated,” according to economist Erik Brynjolfsson, director of the MIT Center for Digital Business at the MIT Sloan School of Management. “Routine information processing is in the bulls eye of automation,” he said during an interview. “I think that’s only going to accelerate.”

On the other hand, demand will grow for people with communication and leadership skills, and with backgrounds in diverse areas of knowledge such as anthropology.

According to Roberto Masiero, head of innovation at payroll processor Automatic Data Processing Inc.ADP +0.57%, companies increasingly need a broad mix of people to ensure that their technologies don’t run afoul of cultural mores. As companies leverage social media and analytics to draw increasingly precise portraits of their customers, “there’s a fine line between adding value and being creepy,” he told CIO Journal. Anthropologists could help determine “from a humanistic perspective, will this be acceptable,” he said.

For example, Nissan Motor Co.7201.TO +0.11% Ltd.’s Silicon Valley research facility, which is spearheading research into self-driving cars, is hiring a team of anthropologists to study how people use vehicles, Dr. Maarten Sierhuis, the leader of the R&D facility, told CIO Journal last year. It is part of his push to establish a more open-ended and data-driven approach to product development at Nissan. Instead of taking a top-down approach that begins with specifications, he said he would hire a team of anthropologists to observe human drivers in the field, and use that data to shape designs for self-driving cars that are based on how people actually behave. Said Dr. Sierhuis: “You immerse yourself in the community that you are studying and let the data tell you, from the bottom up. What is the right way.”

Marc Berman, president of outsourcing firm Vector Technical Resources, says “the coding part [of typical IT jobs] is almost a thing of the past.” He says businesses need IT staff who “have a personality” and aren’t “just a regular geek… They need to be able to talk to the customer’s clients.”

Source:http://blogs.wsj.com/cio/2014/05/27/automation-transforms-the-it-skill-set/

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