What is Outsourcing?
Asia-Pacific Sees Slow Outsourcing Activity in First Half of 2010
by: Karen Cayamanda
Thursday, July 29, 2010 | Outsourcing News | Comments (0)
The Asia-Pacific region posted a total contract value (TCV) of US$2.3 billion for the first six months of the year. This is significantly lower than 2009’s US$5.5 billion TCV for the same period.
According to TPI Index Asia-Pacific, this can be attributed to the slow outsourcing activity in the region, particularly the significant drop in the number of mega deals and contracts amounting to more than US$200 million, though Michael Rehkopf, partner and director of North Asia at TPI, said the market can still improve the figures. "In order to reach 2009 level, the industry will require a record US$8.7 billion TCV in the second half of 2010."
The region needs to close several mega outsourcing deals worth over US$200 million within the year to reach US$11 billion. While the industry had secured 18 BPO contracts and another 10 deals will be awarded within the year, these are considered small contracts when it comes to calculating TCV.
Source:
http://www.zdnetasia.com
RP BPO Urged to Penetrate European Outsourcing Market
by: Karen Cayamanda
Tuesday, July 27, 2010 | Outsourcing News | Comments (0)
The European Chamber of Commerce and Industry in the Philippines (ECCP) urged BPO stakeholders in the country to tap and maximize the European outsourcing market.
According to ECCP Executive Vice President Henry Schumacher, the Philippines can have a bigger piece of the market compared to what India currently has. “Since Europe is also aggressively looking at opportunities from emerging countries in the East, now is the time for the entire Philippines to explore Europe since it is also the largest business process outsourcing market.”
Web design, IT, human resources, and back-office functions are some of the processes that can be outsourced to the Philippines. To take advantage of the European outsourcing market, Schumacher said the Philippines must initiate campaigns that will enable Filipino workers to have a better understanding of the European culture. He added that branding and highlighting what Filipinos can do will play a big role to help the country in tapping the foreign market.
Source:
http://www.mb.com.ph
Egypt becoming more and more Attractive to IT Firms
by: Karen Cayamanda
Monday, July 26, 2010 | Outsourcing News | Comments (0)
In a relatively short span of time, Egypt has become a very favorable outsourcing location for IT companies.
With its low cost of living and a pool of highly skilled workers, the country now offers value similar to that of India when it comes to outsourcing costs, although the former still has its own advantages such as its geographic location, large number of graduates, and language skills. Banks like HSBC, IT firms such as Microsoft, and telecommunications companies including Vodafone and France Telecom have already set up operations in Egypt.
“Factors such as the stability and growth of the Egypt economy; a concentrated pool of talent in Egypt and our historically strong relationship with the Egyptian government have all led to a favourable environment for the technical support of Microsoft Xbox to be located in Egypt,” said Aly Kamal, a spokesman for Microsoft Egypt.
Source:
http://www.thenational.ae
RP BPO Fuels Expansion of Fastfood Chains
by: Karen Cayamanda
Friday, July 23, 2010 | Outsourcing News | Comments (0)
The rapid growth of the business process outsourcing (BPO) industry is driving the expansion of fastfood chains in Metro Manila.
CEO and President of Binalot Food Fiesta Rommel Juan said fastfood chains see a 15 percent sales increase particularly in known BPO areas such as Makati, Libis - Eastwood, Sucat, Ortigas, and Alabang. Surge in sales and expansion can also be attributed to the fact that the industry operates 24/7.
“This has boosted the local economy, creating more jobs and business opportunities not only for services catering to the increasing number of BPO workers,” Juan said.
Based on a different report, the country’s BPO industry is on its way to reaching its revenue goal of $9.4 billion for 2010. After six months, the industry had already posted $4.7 billion in revenues.
Source:
http://www.mb.com.ph
BPOs Urged to Reduce Job-related Stress, Stop High Attrition Rate
by: Karen Cayamanda
Thursday, July 22, 2010 | Outsourcing News | Comments (0)
To stop the high attrition rate, which can be attributed to work-related stress, in the business process outsourcing (BPO) industry of the Philippines, the International Labor Organization (ILO) urged BPO companies in the country to implement policies designed to give employees more flexible decision-making opportunities and eventually reduce stress brought about by their working conditions.
ILO senior researcher John Messenger said there is also a need to implement stringent ways to ensure the health and safety of BPO workers who are on night shifts. "This is a rapidly growing industry worth and approximate $90 billion. A lot has been written about this phenomenon and its implications for economic growth and employment. However, very little is known about the working conditions in the BPO industry," Messenger said.
Messenger added that in the study they have conducted, 49.2 percent of Filipino BPO employees noted that stress is a major concern. This can be due to harassment from clients, too much workload, monotony, and/or night shifts.
Source:
http://www.malaya.com.ph
Survey Reveals Slow IT Outsourcing Growth in Europe
by: Karen Cayamanda
Wednesday, July 21, 2010 | Outsourcing News | Comments (0)
According to the recent survey by sourcing consultancy firm Equaterra, the demand for IT outsourcing in Europe registered a slow growth rate of five percent in the second quarter of 2010.
Compared to 45 percent in the first quarter, only 40 percent of global sourcing advisers surveyed believed that the demand for IT outsourcing in Europe had increased. Moreover, 55 percent (36 percent in the first quarter) said there is slow activity in the economic environment, making business owners think twice about their outsourcing plans.
BPO demand, IT outsourcing and services, and internal process improvements were some of the factors that were considered in this survey.
Source:
http://www.computerweekly.com
RP BPO Reaches Half of Projected Revenue Goal for 2010
by: Karen Cayamanda
Monday, July 19, 2010 | Outsourcing News | Comments (0)
According to the Business Processing Association of the Philippines (BPAP), the country’s BPO industry had already posted $4.7 billion in revenues for the first half of the year. This is half of the $9.4 billion revenue goal projected for 2010, so the industry is right on track towards achieving that revenue projection.
Oscar Sanez, president of BPAP, is confident that with the present revenue growth, outsourcing will be the biggest service export for the country. He said the Aquino administration needs to find ways to attract foreign investors for the continuous growth of the country’s economy. "Over the past years we have fallen behind Asean in FDIs [foreign direct investments]. We need to promote (ourselves more). FDIs will feed our future growth or else we have to rely on what we have," Sanez said.
Sanez added that in a survey conducted in the second quarter, more than half of BPAP members said they are expecting a growth rate of 6-50 percent in revenues and workforce.
Source:
http://www.malaya.com.ph
China Dethrones India as Top Outsourcing Destination
by: Karen Cayamanda
Friday, July 16, 2010 | Outsourcing News | Comments (0)
A survey from accounting firm KPMG revealed that for Asia-Pacific firms, China had surpassed India as the top location of choice for offshoring and outsourcing.
Out of 280 senior business leaders in Asia, 42 percent said they have established shared services centers in China, while 41 percent said they have an outsourcing partner in the country.
"Though at the moment the country has still not reached the level of maturity seen in India, the growth of China's outsourcing market is significant. Many Western companies may still see India as their location of choice, but for executives within Asia Pacific the message is clear - China is now leading the way," said Edge Zarrella, global head, IT Advisory, KPMG China.
Singapore was the second most popular outsourcing destination (29 percent), followed by India (25 percent).
Source:
http://english.peopledaily.com.cn
Study Shows most Outsourcing Players do not Manage Associated Risks
by: Karen Cayamanda
Thursday, July 15, 2010 | Outsourcing Research / Trends | Comments (0)
In a survey recently conducted by learning-based solutions provider ESI International, it was found out that more than half of outsourcing buyers and service providers are not able to effectively manage associated risks.
Out of the 615 respondents from North and South America, UK, Asia, Middle East, and India, 55 percent said their company is “not very effective” or “somewhat effective” when it comes to risk management. Thirty-five percent said their organization is “effective” and six percent noted that they are “extremely effective” in assessing the risks associated with outsourcing.
The study also reveals that only one-third of organizations define their financial goals to outsourcing partners, while 32 percent said they fail to continually assess outsourced work based on the goals they have set.
“With nearly two-thirds of organizations spending up to half of their budgets on outsourcing, there is a need to refine risk management capabilities in order to positively impact bottom line performance,” ESI International said.
Source:
http://www.property-casualty.com
Everest Report Shows Increase in Offshore Outsourcing Activity
by: Karen Cayamanda
Tuesday, July 13, 2010 | Outsourcing News | Comments (0)
Things are looking up again for the offshore outsourcing industry. As the economy bounces back from the global financial crisis last year, a report by Everest Research Institute shows the industry sees an increase in offshore outsourcing activity.
According to Anand Ramesh [CQ}, research director at Everest, US-based companies are now considering to transfer more work offshore, while other firms that have not outsourced work offshore before are now planning to do so in destinations with relatively low labor costs.
Based on the report, about 75 percent of small and medium-sized companies and 90 percent of large firms intend to expand outsourcing operations by more than 500 full-time employees over the next two years.
Meanwhile, Forrester Research principal analyst Sudin Apte [CQ] said this uptick in offshore outsourcing activity will increase demand for workers in offshoring locations. The Everest report added that more than 70 percent of buyers choose India as the location for their business expansion, followed by the Philippines and China.
Source:
http://www.pcworld.com
