Archive for the ‘Outsourcing’ Category:
How Outsourcing Drives Business Process Improvements
More than ever, business and IT must collaborate to meet current business realities. Significantly, CIOs must map out long-term strategies that address business plans over the next three to five years, with the delivery of high-quality IT services as a key element of strategic planning.
Success depends, in no small measure, on effectively addressing what IDG Research Services has identified as the top IT challenges:
* Reduce enterprise costs
* Improve workforce productivity
* Increase information use
* Optimize business processes
These priorities are rated as critical or very important; in the IDG 2009 survey of senior IT executives at companies with 5,000 or more employees, 70 percent of the respondents expect these priorities to increase in importance over the next three to five years.
This white paper explores:
* Top challenges that CIOs and IT leaders face today
* How to address business and technology challenges
* Business / IT value-add of IT outsourcing
* Proven success strategies for working with an IT outsourcing partner Read more…
Some of resources: CAD Services, Handwriting Experts
Obama’s Plan on Corporate Taxes Unnerves the Indian Outsourcing Industry
NEW DELHI — President Obama’s proposal to change the American corporate tax system is winning few fans in India, where some say it is aimed at curbing the country’s outsourcing industry.
Perhaps that is because Mr. Obama specifically struck out at the epicenter of Indian outsourcing.
The president vowed Monday to overhaul a tax code that allowed companies to pay less tax, as he put it, to “create a job in Bangalore, India, than if you create one in Buffalo, New York.” One element to that change could be the elimination of a deduction for American companies when they invest in subsidiaries outside the United States.
American companies have tens of thousands of employees in India in wholly owned subsidiaries. Many of these Indian operations handle customer service and back-office functions, particularly for banks and credit card companies. American businesses employ thousands more in India by contracting work to local technology and outsourcing companies.
And recently, many American corporations have also expanded their sales, marketing and distribution in India to take advantage of the country’s fast economic growth and expanding middle class.
Many business people in India were upset by Mr. Obama’s tax proposal. The president of the Associated Chambers of Commerce and Industry of India, Sajjan Jindal, said it could “kill the spirit of competition.”
The Indian affiliate of CNN spent Tuesday afternoon asking economists and politicians whether Mr. Obama was “anti-India.” An editorial in The Times of India said Bangalore had become a “catch-all term to hang U.S. economic woes on.”
What is unclear, though, is what, if any, impact Mr. Obama’s proposed tax plan will actually have on jobs in India.
“It’s a tax disincentive to discourage outsourcing to countries like India,” said Uday Ved, head of tax issues at KPMG India. But according to Mr. Ved and other international tax experts, companies do not move jobs to India because the tax rate is lower; they do it because labor costs less. Read more…
Some of resources: CAD Services, Handwriting Experts
Outsourcer to Outsource Its Ownership
With consolidation expected in the outsourcing industry in the next two years, what’s a midsize outsourcer to do?
For Jerry Rao, the chief executive of MphasiS, an Indian outsourcer, the answer is: embrace it.
This week, Electronic Data Systems, the information technology consulting giant, made a $380 million offer for a 52 percent stake in MphasiS. The company’s board was receptive to the offer. The potential for a deal was put in place last year when Barings Private Equity Partners decided to sell its 35 percent stake in MphasiS.
The company, with headquarters in Bangalore and New York, has a work force of 12,000 and $170.44 million in 2005 revenue. MphasiS specializes in information technology services and business process outsourcing.
The outsourcer made news last year when three former employees at one of its call centers were arrested for stealing passwords from Citibank. Mr. Rao said the incident gave him restless nights, but that it was an important learning experience and subsequently Citigroup increased its business with MphasiS. Read more…
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INTERNATIONAL BUSINESS; Western Outsourcing Lifts Profits at Two Indian Companies
India’s two largest outsourcing companies, Tata Consultancy Services and Infosys Technologies, announced healthy growth in quarterly profits on Tuesday, indicating that Western corporations continued to vigorously outsource technology and back office operations.
India’s $17.2 billion outsourcing industry is flourishing as companies hire skilled yet inexpensive English-speaking programmers and call center workers to carry out technology projects and provide customer support for their American and European clients.
Tata Consultancy, which provides software services, said that its quarterly profit rose 20.5 percent while its closest rival, Infosys, said its profit rose 36 percent.
In results announced this week, smaller outsourcing companies like iGate Global Solutions and Aztec Software said they had nearly or more than doubled their quarterly profits.
Tata Consultancy, which is based in Mumbai, said Tuesday that its profit rose to 6.94 billion rupees ($155 million) compared with 5.76 billion rupees in the period a year earlier. Revenue rose 23 percent, to 29.83 billion rupees. Infosys said its earnings rose to 6.06 billion rupees from 4.47 billion rupees a year earlier. Revenue grew 31 percent, to 22.94 billion rupees. Read more…
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India tries outsourcing its outsourcing
MYSORE, India — From across India, thousands of recruits report to the Infosys Technologies campus here in India’s deep south. Amid the manicured lawns and modern buildings, they learn the finer points of software programming.
But lately, packs of foreigners have been strolling the campus. Many are Americans, recently graduated from college. Some had been pursued by coveted employers like Google. Instead, they accepted a novel assignment from Infosys, the Indian technology giant: Fly here to learn programming from scratch, then return to the United States to work in the Indian company’s back office.
Now India is outsourcing outsourcing.
One of the constants of the global economy has been companies moving tasks - and jobs - to India, where they could be done at lower cost. But rising wages for programmers here, a strengthening currency and companies’ need for workers in their clients’ time zones or for workers who speak languages other than English are challenging that model. Read more…
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U.S. firms outsource legal services to India
NEW YORK — Bruce Masterson, the chief operating officer of Socrates Media, asked his outside counsel to customize a residential lease for all 50 U.S. states in 2003. About $400,000 was the firm’s estimate. He rejected that cost and hired QuisLex, a firm in Hyderabad, India, that did the work for $45,000.
“It was good quality,” said Masterson, whose company, which is based in Chicago, publishes legal forms on the Internet. “We’ve been working together ever since.”
Clients are pushing law firms like Jones Day and Kirkland & Ellis to send basic legal tasks to India, where lawyers tag documents and investigate takeover targets for as little as $20 an hour. The firms are part of a trend that will move about 50,000 U.S. legal jobs overseas by 2015, according to Forrester Research in Boston.
“The objective is to have only the most valuable people in London or New York, and the others in India, China or Columbus, Ohio,” said Robert Profusek, co-head of the mergers and acquisitions practice at Jones Day in New York.
Profusek sends low-end work to the cheapest locations and plans to open a document center in India.
“Lawyers are service providers,” he said. “We are not gods.”
Companies with in-house legal departments in India include DuPont, Cisco Systems, and Morgan Stanley, according to ValueNotes Database, which is based in Maharashtra, India. Read more…
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Global BPO Services Corporation
Stream Global Services, Inc. (SGS), formerly Global BPO Services Corp., is a provider of customer relationship management (CRM) and other business process outsourcing (BPO) services. The Company provides services to companies in the technology, software, consumer electronics and communications industries. CRM solutions encompass a range of telephone, e-mail and Internet based services and technical support programs designed to maximize the long-term value of the relationships between its clients and their customers, or end users. Technical support programs include technical troubleshooting (including game support), hardware and warranty support, hosted services, data management, telecommunications services and professional services. Customer service programs consist of activities, such as customer setup/activations, up-sell or cross-sell programs, revenue generation, customer billing inquiries, win-back programs, and customer retention initiatives. Read more…
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Special effects outsourcing grows in India
MUMBAI, India (AP) — Outsourcing to India, long dominated by software engineering and back-office work, is expanding in new terrain: special effects for movies.
India’s rise comes at a difficult time for U.S. special effects outfits, some of which have buckled as the 2008 L.A. writers strike cut productions and the financial crisis curtailed financing. Executives in India say cost pressures are pushing studios to send more work to India, where special effects projects are up to 40 percent cheaper than in the U.S.
To be sure, Indian shops are, for now, minor players. Hollywood’s special effects industry is still dominated by U.S. companies like Industrial Light & Magic. Production standards are generally lower in India, and many moviemakers still won’t send creative work thousands of miles (kilometers) away.
But the distance between Hollywood and Bollywood is narrowing, and many say it’s only a matter of time before the gap in skills, trust, and quality is closed. The domestic market is also maturing as Indian audiences develop a taste for high-tech Hindi flicks. Read more…
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Accenture Profit Beats Estimates on Demand for Outsourcing
June 25 (Bloomberg) — Accenture Ltd., the world’s second- largest technology-consulting firm, reported third-quarter profit that beat analysts’ estimates as customers outsourced work to curb costs in the recession.
Net income was $444 million, or 68 cents a share, compared with $469.1 million, or 74 cents, a year earlier, Accenture said today in a statement. That exceeded the 64-cent average estimate of analysts in a Bloomberg survey. Sales fell 16 percent to $5.54 billion.
Accenture’s customers are farming out tasks such as accounting or management of software applications to reduce costs in the worst global recession since at least World War II. The outsourcing business accounts for up about 40 percent of the Hamilton, Bermuda-based company’s revenue. Read more…
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`BPO will lead IT recovery’
The BPO industry which, for long, was seen as the poorer cousin to the IT services industry, may be leading recovery from the recent economic slump. This stems from decision makers needing to cut costs on the operations front, as well as on the technology front. And, across the outsourcing spectrum, first-time outsourcers are trying out India vendors. This is the gist of what Phaneesh Murthy, CEO, iGate, had to say, among other things, when eWorld met him recently.
Aftermath of economic turmoil
There a few trends here. First, the Financial Services companies in the US have reached the end of their M&A work and consequently are starting to make decisions. That’s a positive. Normally, you would have expected a flush of projects in the January-March quarter but because of the M&A work, no decisions were made at that time. The most important thing now is that the decisions are getting to be made.
The second trend is that recovery in the outsourcing space will be BPO-driven. Fortune 1000 CIOs spend 17-19 per cent of their IT dollars in India, while the F1000 COOs spend only about 2-3 per cent of their operations dollars in India. With the need to dramatically restructure costs, I see the operations dollar tracking upwards quite significantly now and a big wave of BPO work coming to India. The challenge, on the negative side, is that one never knows if the operations work is going to land in captives (owned by those clients) or with third-party vendors. (Typically, the bulk of IT work always lands with third parties.) Read more…
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