Posts Tagged ‘Outsourcing’

Belarus IT outsourcing market to grow at 17.78% CAGR by 2018

September 2nd, 2014

IT Outsourcing Market in Belarus 2014-2018 discusses the attractiveness of the market in the country. The report contains of all the important information regarding the economic system and the aspects related to doing business in the country.

Cloud computing allows end-users to store their data in a vendor’s data center. Cloud resources are not only shared by multiple users, but are also dynamically reallocated to meet demand. Users of cloud computing resources do not have to invest in infrastructure and other resources; they only have to pay for the services that they use, based on pay-per-use subscription model, which helps them save cost and time and to focus on their core competencies. Cloud computing can be divided into IaaS, SaaS, and PaaS. Belarus companies have strong expertise in providing cloud computing via SaaS.
According to the report, the growth of the IT Outsourcing market in Belarus is driven by several factors. For instance, Belarus lies in close proximity to Western Europe and hence shares similar business principles. Moreover, the transportation costs associated with outsourcing can be reduced because of easy accessibility to Europe and other countries.

Analysts forecast the IT Outsourcing market in Belarus will grow at a CAGR of 17.78 percent over the period 2013-2018.

Covered in this Report

The IT Outsourcing market in Belarus discusses the attractiveness of the market in the country. The report contains of all the important information regarding the economic system and the aspects related to doing business in the country. It includes the various economic forces that affect the IT Outsourcing industry such as currency and tax laws. The report also compares Belarus with other popular IT outsourcing destinations.

IT Outsourcing Market in Belarus 2014-2018, has been prepared based on an in-depth market analysis with inputs from industry experts. It covers the IT Outsourcing market in Belarus landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market.

Source:http://www.whatech.com/market-research-reports/press-release/it/28474-belarus-it-outsourcing-market-to-grow-at-17-78-cagr-by-2018

Outsourcing firm looks to ride on global growth

September 2nd, 2014

A leading outsourcing service provider, Servic Engine BPO, aims to more than double its workforce over the next two and a half years, a top official said.

The recruitment drive will create around 600 new jobs at the company’s Dhaka office as it expands operations to cater to growing demand for outsourcing services.

“We want to exceed the 1,000 employee mark by 2016 from the existing 400 workforce if the present growth trend continues,” ASM Mohiuddin Monem, chairman of the company, said in an interview with The Daily Star recently.

The US-Bangladesh joint venture company has registered 35-40 percent growth of revenue a year since its inception in 2006, he said.

The company checks backgrounds of customers for financial institutions and provides medical appointment assistance for US hospitals.

Interactive marketing, quality assurance, software and web development, back-office processing and digital advertising are also among the services it provides, he said.

The company’s outstanding performance did not go unnoticed: It has been adjudicated as one of the Top 100 Global Outsourcing Service Providers in the world by the International Association of Outsourcing Professionals (IAOP) in 2014.

IAOP, the global standard-setting organisation and advocate for the outsourcing profession, also ranked ServicEngine as the 12th best outsourcing company in the Rising Star category.

These rankings are based on applications received and evaluated by an independent judging panel organised by the IAOP, which has more than 120,000 members and affiliates worldwide.

“This is a tribute to the exceptional service delivered by our employees. I am proud of our employees who have shown the world the talent we have in our country,” said Monem.

The accolade will help the outsourcing industry of Bangladesh to reach new heights globally as ServicEngine is the first Bangladeshi company listed among TOP 100 BPO (Business Process Outsourcing) companies, he said.

“It will benefit the entire BPO industry in Bangladesh,” he said adding that the country has some 10-15 outsourcing companies which are doing well and the number is growing.

ServicEngine faced several challenges as business process outsourcing is new in Bangladesh, said Monem. “It was not a very easy ride.”

The company had to compete with an Indian vendor to receive its first ever work project, he said.

The country’s biggest strength for BPO industry is its large young population base, he said.

Earlier, India and the Philippines were considered the best outsourcing destinations, but the global perception is gradually changing due to rising labour costs, he said.

Bangladesh has the potential of becoming a leading outsourcing destination due to cost competitiveness and scope for capacity development, he said.

Monem, also the deputy managing director of Abdul Monem Group, a leading diversified company that engages in construction, beverage, and ice-cream business, expects a bright future for the outsourcing industry.

Global market of BPO and IT Services stood at $952 billion in 2013, of which $304 billion was BPO based, according to HfS Research, an American consultancy firm.

“The country will be able to earn at least $15 billion if it can grab only 5 percent of the global outsourcing market,” he said adding that it is not too late to try as yet.

The area of BPO activities are widening globally, said Monem, who earned his bachelor’s degree in industrial engineering in 1991 and a master’s in engineering management in 1994, both from Northeastern University of the US.

“When BPO started, it was concentrated on payroll and human resource management but that is changing,” he said.

Monem said there will be huge demand for heath care and legal process outsourcing globally. “The market is opening up especially in the hearth care sector due to a favourable policy of the Obama Administration in the US.”

ServicEngine, which has offices both in the US and Bangladesh, provides outsourcing solution mainly to the Fortune 500 companies, he said.

The work rates charged by the company are either on a per-hour or project based, depending on the service offered, and the applicable business model. The rates can range from $7 to $40 per hour.

The company that employs graduates in business studies, computer science and other IT studies pays its employees in Dhaka Tk 20,000 to Tk 200,000 a month depending on job profiles, he said.

The country registered robust growth in exports of IT and IT-enabled services in the last couple of years.

Local software and IT vendors exported services and products worth $124.72 million in fiscal 2013-14, up 22.71 percent from the previous year, according to data from the Export Promotion Bureau.

Bangladesh Association of Software and Information Services has set a target to earn $1 billion from such exports and create 1 million professionals in five years.

Source:http://www.thedailystar.net/outsourcing-firm-looks-to-ride-on-global-growth-39759

Gov’t approves use of IT outsourcing by enterprises, organisations

September 2nd, 2014

The government has given approval to enterprises and organizations to use information technology (IT) outsourcing, but many businesses remain hesitant to use such services.outsourcing27

FPT, the Vietnamese largest IT group, has signed a cooperation agreement with the Vietnam Railway Corporation on the development of a new ticket distribution system, according to Ha Noi Moi newspaper.

Under the agreement, FPT will build a modern e-ticket distribution system which allows people to buy tickets through different channels, either via websites, messages, or sale agents.

With the new system, which will replace the current one, people will be able to book tickets at any time convenient to them and update information about the ticket distribution process, itineraries and schedules.

It is expected that the project will be operating within seven years in three development stages, which will cost nearly VND200 billion.

FPT will regulate the system and share profits with the Vietnam Railway Corporation, earning profit equal to one percent of the revenue.

The business cooperation agreement, which by nature, is an IT service outsourcing contract, remains unfamiliar to many Vietnamese.

Commenting about the IT service outsourcing contract, experts said this is a wise move which can bring benefits to both sides.

Under such an agreement, FPT, the service provider, has a new client which allows it to take full advantage of its existing resources. Meanwhile, the railway corporation can have a ticket booking system without having to spend a lot of money and time on it.

Ngo Tuan Anh, deputy chair of BKAV, an Internet security firm, agreed that it would be better for enterprises and organizations to use outsourced services.
“You’d better use the services provided by professional units than do things yourself,” he noted.

However, there have not been many contracts like the one between FPT and the railway corporation.

The IT outsourcing service market in Vietnam is still tiny because Vietnamese enterprises still prefer following the “traditional investment mode” – setting up systems, and running and maintaining the systems themselves.

Thanh Nien newspaper quoted a report from Grant Thornton International Business Report (IBR) as saying that only 12 percent of businesses in Vietnam are open to outsourcing.

While the cost savings that outsourcing can provide are widely recognized, many business leaders worry about losing control of key processes. In other words, clients fear that the loss of control may cause information security problems.

Meanwhile, IT outsourcing service providers themselves can see problems that might make state agencies hesitate to use outsourcing.

Do Cao Bao, chair of FPT IS, a service provider, noted that state agencies have annual budgets for IT development, but the budgets only serve regular spending. Meanwhile, the State does not allocate budgets for IT outsourcing services.

However, analysts believe that IT service outsourcing is inevitable, and that it will facilitate the development of SMAC (Social Mobility Analytics Cloud), which is being used widely worldwide.

Source:http://english.vietnamnet.vn/fms/science-it/110736/gov-t-approves-use-of-it-outsourcing-by-enterprises–organisations.html

Infosys, Wipro on the prowl, light up M&A Street

September 2nd, 2014

Vishal Sikka at the helm of Infosys and Rishad Premji as head of strategy at Wipro scouting to pick up stake in startups focused on disruptive technologies have made investment bankers optimistic that country’s moribund outsourcing sector could see more deals in the coming months. outsourcing29

However, both foreign and domestic bankers believe that the small acquisitions and partnerships would not be enough and a big buy-out has to be done before the rainmakers who help companies merge and raise capital could raise a toast.

“The mood certainly has changed,” said the head of a Mumbai-based investment bank, adding “and changed for the better”. “We have seen Wipro picking stakes in small companies. Infosys too has decided to follow a similar approach. So it’s just a matter of time before one of these make a big buyout.”

Infosys, which last acquired Swiss management consultant Lodestone for $350 million in 2012, has strutted when it comes to buyout during this time, making many believe that change in leadership could help the company shun its conservative approach.

“Certainly, the outlook has changed and we have started getting calls,” said a senior executive from Infosys merger and acquisition team. “We won’t go for making a big ticket deal unless there is absolutely a compelling rationale. (For now) our sweet spot remains $100-250 million.”

Wipro too is adopting a similar approach, with chief executive TK Kurien telling ET last month that the way ahead for the company is having a more “asset light approach”, with a senior executive adding that the company will look to have more buy-outs in $100-200 million space.

For now, both Wipro and Infosys maintain that they will look at partnerships and buyouts in disruptive technologies, including artificial intelligence and big data as they do not want to be saddled with a heavy workforce. Both these companies are looking to scale up their presence in healthcare and retail space and partnership or a buyout with start-focused on these newer technologies could be done in the coming months, according to bankers and company executives.

Source:http://timesofindia.indiatimes.com/tech/tech-news/Infosys-Wipro-on-the-prowl-light-up-MA-Street/articleshow/41440373.cms

Gartner Names IBM a Leader in the Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services

September 2nd, 2014

IBM today announced that Gartner, Inc. has once again recognized IBM as a leader, placing the highest for ability to execute, in the newly published “Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services” reports for North America(1) and Europe(2).outsourcing28

IBM’s cloud leadership, as well as its focused strategy on mobile, social and security – which are further fueled by extensive R&D and technology investments in analytics and automation – are key differentiators that enable the company to seamlessly integrate and orchestrate infrastructure services across hybrid environments spanning both cloud and traditional IT models.

Gartner evaluates the top providers of data center outsourcing (DCO) and infrastructure utility services (IUS), which are often enabled by remote infrastructure management (RIM) services and increasingly include cloud computing components. Gartner includes in its evaluation cloud infrastructure as a service (IaaS) and platform as a service (PaaS) offerings that are part of IUS and data center managed services.

“As clients look to grow their business with innovative technologies such as cloud, analytics and mobile computing, they are looking for a trusted partner to help them integrate the new IT solutions with their existing investments,” said Philip Guido, General Manager, IBM Global Technology Services, North America. “We believe this recognition from Gartner reaffirms IBM’s market leadership in assisting clients to evolve their IT infrastructure and meet their business demands.”

IBM delivers a full spectrum of infrastructure services that enable organizations to capitalize on the transformative power of cloud and hybrid IT environments. The company draws upon its vast technical resources and global delivery network – spanning 330 delivery services data centers; 40 cloud data centers, including new SoftLayer data centers in Toronto and London; 11 security operations centers; and 145 business resilience centers – to provide clients with fast, reliable, security-rich data center services.

According to Gartner, “growth in data center services has shifted from traditional to new models, such as cloud IaaS and PaaS, reflecting a shift in competitive delivery models. Gartner predicts it will deliver a global compound annual growth rate of 12.4% for the period 2012 through 2018.” The research firm also “predicts the key business indicators of data center service providers will improve significantly during the next five years and make them a more competitive outsourcing choice.”

(1) Gartner, Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, North America, William Maurer, David Edward Ackerman, Bryan Britz, July 31, 2014

(2) Gartner, Magic Quadrant for Data Center Outsourcing and Infrastructure Utility Services, Europe, Claudio Da Rold, Gianluca Tramacere, Frank Ridder, DD Mishra, Gregor Petri, July 16, 2014

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Source:http://myhostnews.com/2014/09/gartner-names-ibm-a-leader-in-the-magic-quadrant-for-data-center-outsourcing-and-infrastructure-utility-services/

Outsourcing firm looks to ride on global growth

September 2nd, 2014

A leading outsourcing service provider, ServicEngineBPO, aims to more than double its workforce over the next two and a half years, a top official said.outsourcing24

The recruitment drive will create around 600 new jobs at the company’s Dhaka office as it expands operations to cater to growing demand for outsourcing services.

“We want to exceed the 1,000 employee mark by 2016 from the existing 400 workforce if the present growth trend continues,” ASM Mohiuddin Monem, chairman of the company, said in an interview with The Daily Star recently.

The US-Bangladesh joint venture company has registered 35-40 percent growth of revenue a year since its inception in 2006, he said.

The company checks backgrounds of customers for financial institutions and provides medical appointment assistance for US hospitals.

Interactive marketing, quality assurance, software and web development, back-office processing and digital advertising are also among the services it provides, he said.

The company’s outstanding performance did not go unnoticed: It has been adjudicated as one of the Top 100 Global Outsourcing Service Providers in the world by the International Association of Outsourcing Professionals (IAOP) in 2014.

IAOP, the global standard-setting organisation and advocate for the outsourcing profession, also ranked ServicEngine as the 12th best outsourcing company in the Rising Star category.

These rankings are based on applications received and evaluated by an independent judging panel organised by the IAOP, which has more than 120,000 members and affiliates worldwide.

“This is a tribute to the exceptional service delivered by our employees. I am proud of our employees who have shown the world the talent we have in our country,” said Monem.

The accolade will help the outsourcing industry of Bangladesh to reach new heights globally as ServicEngine is the first Bangladeshi company listed among TOP 100 BPO (Business Process Outsourcing) companies, he said.

“It will benefit the entire BPO industry in Bangladesh,” he said adding that the country has some 10-15 outsourcing companies which are doing well and the number is growing.

ServicEngine faced several challenges as business process outsourcing is new in Bangladesh, said Monem. “It was not a very easy ride.”

The company had to compete with an Indian vendor to receive its first ever work project, he said.

The country’s biggest strength for BPO industry is its large young population base, he said.

Earlier, India and the Philippines were considered the best outsourcing destinations, but the global perception is gradually changing due to rising labour costs, he said.

Bangladesh has the potential of becoming a leading outsourcing destination due to cost competitiveness and scope for capacity development, he said.

Monem, also the deputy managing director of Abdul Monem Group, a leading diversified company that engages in construction, beverage, and ice-cream business, expects a bright future for the outsourcing industry.

Global market of BPO and IT Services stood at $952 billion in 2013, of which $304 billion was BPO based, according to HfS Research, an American consultancy firm.

“The country will be able to earn at least $15 billion if it can grab only 5 percent of the global outsourcing market,” he said adding that it is not too late to try as yet.

The area of BPO activities are widening globally, said Monem, who earned his bachelor’s degree in industrial engineering in 1991 and a master’s in engineering management in 1994, both from Northeastern University of the US.

“When BPO started, it was concentrated on payroll and human resource management but that is changing,” he said.

Monem said there will be huge demand for heath care and legal process outsourcing globally. “The market is opening up especially in the hearth care sector due to a favourable policy of the Obama Administration in the US.”

ServicEngine, which has offices both in the US and Bangladesh, provides outsourcing solution mainly to the Fortune 500 companies, he said.

The work rates charged by the company are either on a per-hour or project based, depending on the service offered, and the applicable business model. The rates can range from $7 to $40 per hour.

The company that employs graduates in business studies, computer science and other IT studies pays its employees in Dhaka Tk 20,000 to Tk 200,000 a month depending on job profiles, he said.

The country registered robust growth in exports of IT and IT-enabled services in the last couple of years.

Local software and IT vendors exported services and products worth $124.72 million in fiscal 2013-14, up 22.71 percent from the previous year, according to data from the Export Promotion Bureau.

Bangladesh Association of Software and Information Services has set a target to earn $1 billion from such exports and create 1 million professionals in five years.

Source:http://www.thedailystar.net/outsourcing-firm-looks-to-ride-on-global-growth-39759

Outsourcing And BPO Projects From Philippines Are Coming Back To India

August 28th, 2014

Philippines has realized that Outsourcing is not just about English speaking; but it involves several more factors as well. In a major fight back demonstrated by Indian BPO players, projects are now returning back to India from Philippines as American and European companies discover that their expectations are not being met there.outsourcing23

ASSOCHAM Warning

In the month of April this year, The Associated Chambers of Commerce and Industry in India (Assocham) notified us that India is losing it’s steam in the outsourcing industry as countries such as Philippines may take away upto 70% of businesses from India.

The notification clearly stated that, “It is estimated that in the ongoing decade India might lose about $30 billion in terms of foreign exchange earnings to Philippines which has become the top destination for Indian investors, thus the need to reduce costs and make operations leaner is increasingly becoming significant across the BPO industry.”

Not only Indian investors but MNCs based in America and Europe have started preferring countries in East Europe and Philippines along with Malaysia and Thailand to outsource their projects as the spoken English of citizens of these countries are neutral and easily understood by Americans.

As per the warning, “Employees in Philippine call centers speak English fluently with a neutral accent which is what customers look for and that is something missing in Indian accents.”

Indian Cities Slip in Ranking of Outsourcing Destinations

Tholon, which is a reputed advisory for outsourcing companies all over the world released their annual ranking of the top outsourcing destinations. Although India secured top spot, but several important Indian cities lost their rankings as cities in Philippines such as Manila and Cebu quickly climbed the charts, and several major outsourcing contracts were shifted from India to these locations owning to lower costs and better ‘English speakers’.

Not only Philippines, but cities in Vietnam (Hanoi) , China (Beijing, Shanghai, Shenzhen), Singapore and Hong Kong emerged as the new destinations for outsourcers. Indian cities such as Mumbai, Chennai, Gurgaon and Pune lost several places in the rankings and the Indian BPO industry started to feel the heat.
The Fight Back of Indian BPO Players

Yes, speaking neutral and fluent English is important for any outsourcing projects, but besides that, there are several other factors which contribute to the success of such campaign. To start with, having technical knowledge certainly helps, as most of the outsourcing projects belong to the technical industry.

Then there is sales skill – ability to understand the customer, perform some basic sales evaluation techniques and pitch the right product. Being able to calculate and display analytical skills to solve business problems along with the ability to ‘write’ good English. Today, major companies are looking for customer support experts who can talk and write both at the same time.

It seems that BPO employees in East Asian countries such as Philippines and Vietnam are miserably falling short on these skill sets, as attrition rates are climbing as high as 60% in some big companies.

As a result, companies are now turning back to India, where all the above mentioned skills are found easily, and attrition rates are lower as well.
A senior Vice President at Consultancy firm Gartner recently said, “India has always been a large delivery centre with size and the ability to scale and we are seeing the pendulum starting to swing back to India.”

Sandip Sen, CEO of Essar Group’s BPO arm Aegis shared, “We have a large e-commerce company that asked us to move some jobs to India because there are better skills here to both sell and upsell services. We moved 600 jobs to India from the Philippines for this client,”

Another senior manager at a Call Center in Philippines said, “It will not all move back, because companies have invested in centres in the Philippines. But now India as an option is back on the table and clients are looking at it, which was not the case two years ago. Some incremental work is definitely coming here.”

KS Viswanathan, vice-president at industry body Nasscom said, “The Philippines had an edge in pure voice customer service. But if you have technology-enabled services for customer support, or for services like technology support, for that we see the centre of gravity moving back here,”

Telstra and BestBuy are other outsourcers who have moved back major projects from Philippines to India, as sales skills of Indians are much better than those from Philippines.

The writing is clearly on the wall now – Outsourcing has evolved, and so has the skill set requirements. There is a reason India has outpaced other Asian countries in the IT industry, and the same reason is now helping us to regain lost ground in Outsourcing as well.

Source:http://trak.in/tags/business/2014/08/27/outsourcing-bpo-projects-philippines-india/

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