| IT Outsourcing Industry Stabilizes In US |
 |
| |
| 24th July: Even IT outsourcing is suffering during the present economic meltdown, according to a report issued Tuesday by outsourcing advisory firm TPI. It said that the number of outsourcing awards fell 7.5% from the first quarter to the second quarter to a total of 135. |
| |
| The TPI Index, which follows commercial outsourcing contracts of $25 million or more, found that the market in the first half of 2009 had some 11% fewer contracts with 22% lower total contract for the period of six months in 2008. |
| |
| It was seen that the first half of 2008 was extremely strong for the outsourcing industry, which makes the comparisons tough year after year. Mark Mayo, partner and president of TPI Global Resources Management quoted in statement that over the past six months, companies have been more tentative and tactical about making sourcing decisions as they try to navigate these present economic recession. |
| |
| Mayo said some very early signs of stabilization have been seen in information technology and outsourcing industry in the U.S. This gives them a lot of encouragement that they may be seeing a bottom to the current slump. |
| |
| Additional encouraging signs were reflected in IT outsourcing demand that is increasing in some vertical markets like telecom, finance, logistics, transportation, and retail sectors. The steady IT outsourcing market has tended to stabilize the broader market as said by TPI. The Network Services segment has been strong in particular, accounting for about half of the major deals and relationships to date in 2009. |
| |
|
| IT Companies In UK Planning To Outsource |
|
| According to a research, one-third IT companies in UK have offshored more than half of their operations over last six months. |
| |
| Some 79 percent of companies that opted for off shoring have moved their IT functions to India, while 64 percent of 298 companies have shipped some of their IT set-up abroad. |
| |
| Half of the companies polled by recruitment firm "The IT Job Board" said their companies were planning to offshore over a period of six months and 79 percent of the respondents said that this could affect software developer job, programmer and IT support jobs. |
| |
| Some 83 percent of the respondents said that, off shoring decisions could create a negative impact on the quality of their IT. This was commented on the business implications of off shoring. Some 40 percent said that the main issue is the lack of business knowledge. While 76 percent also felt that the model represented no long term benefit to the economy. |
| |
| A separate study suggests that accessibility to knowledge is the main driver for outsourcing that could involve an offshore element. 59 percent of 100 UK IT leader said claimed that the model allows them to tap into skill pool that would be difficult to create in-house. |
| |
| Brian Stones, European executive vice-president at Patni Computers, quoted that "clearly the messages about the benefits that outsourcing can bring are getting out there and reaching the ears of other directors, not just the people in charge of technology." |
| |
| Mr. Stones also added that, the innovation and higher value outsourcing can bring is often critical to competitive success and it now falls to the outsourcing |
| |
| |
|
| BPO's Focus On Quality Of Life Incentives |
|
| |
| Manila, 24th July: Despite the present economic condition, budget restraints and job cuts the companies in the business process outsourcing (BPO) sector can retain their valuable employees. This is possible by focusing on "quality of life" incentives, according to a study carried out by XMG Global ICT Research and Advisory. |
| |
| After completing a multi-client study covering three established outsourcing countries-namely India, the Philippines and China- research findings by XMG Global showed a common trend. These were high-performing supervisors, team leaders and mid-managers employed in BPOs and call centers can be retained without huge additional spending. |
| |
| According to a research it is true that, high compensation in the form of cash is still the "most essential" incentive for key talents. However, the interest in strictly cash compensation is starting to shrink, specifically among high-level employees working in the BPO industry. |
| |
| XMG said in a report that, while the use of cash rewards is consistent with or slightly behind the levels than last year, some categories of non-monetary rewards, or what XMG Global calls "quality of life" incentives, increased by an astounding 18%. The examples of these incentives include flex hours, additional paid time off, telecommuting, stress management and family counseling |
|
|
| |
| |
| |
|
|
|
|
|
|
Accenture Seals BPO Deal
July 07, 2010 : BPO giant Accenture clinched a 5-year deal with Statoil ASA, a Nigerian company. The business process outsourcing biggie will be providing financial services to Statoil. According to the deal, Accenture will revamp their accounts processes, along with their global financial network. The project will kick-start in September, 2010.
With this project, the BPO firm will be able to reach out to a wider clientele of global business firms. Needless to say, this is an important step, both for Accenture as well as the business process outsourcing fraternity in general.
|
 |
|
|
| |
 |
| |
| |
|
|
