What is Outsourcing?
Global outsourcing market up 40%
by: Carlo Abadilla
Wednesday, October 28, 2009 | Outsourcing Research / Trends | Comments (0)
The global outsourcing market recorded a total contract value (TCV) of $24.7 billion in the 3rd quarter; up 40% from the same quarter of last year. The Global TPI Index, conducted by advisory firm, TPI (Technology Partners International), created the quarterly report based on outsourcing contracts worth at least $25 million.
Asia-Pacific earned 24 outsourcing contracts in the third quarter, totaling $6.4 billion. The Americas earned 47 contracts ($12 billion). Europe, West Asia and Africa earned a total of 68 contracts worth $6.5 billion.
As many as 139 transactions were recorded this quarter with the strong numbers being caused mostly by network outsourcing (Telco-to-Telco) contracts. TPI noted that Telco-to-Telco contracts represented over 30 percent of the total market value. Excluding these contracts, the global outsourcing market showed sluggish growth patterns that have typified the last four quarters.
Megadeals both inside and outside network outsourcing deals supplemented growth; with BPO demand remaining high as the current context proves IT outsourcing more feasible than large finance and accounting, HR, and facilities management outsourcing transactions.
Source:
http://www.thehindubusinessline.com
BPOs now outsourcing facilities management
by: Carlo Abadilla
Tuesday, October 13, 2009 | Outsourcing Research / Trends | Comments (0)
A study by Jones Lang Lasalle on eight leading global organizations in the business process outsourcing (BPO) industry has revealed BPO companies are, themselves, outsourcing. In the Philippines, this is practiced in areas such as housekeeping, security maintenance, and car fleet management.
According to head of Integrated Facilities Management in Southeast Asia, Marina Krishnan, companies are outsourcing due to the high “cost of a seat” in these areas. In addition to saving on costs for maintaining administration, outsourcing companies are able to avail of expertise and innovations that are not their core competency:
“Our clients in the Philippines – like a global pioneer in outsourced solutions and technology services and a leading financial services company – have outsourced management of services like reception and mail room services, as well as critical facilities like data services, networking and telephone systems that support around-the-clock operations,” commented Krishnan.
Krishnan further added that “the aim of facilities management is to maximize opportunities for a facilities portfolio. This includes engaging in proactive analysis, contingency planning and preventative maintenance programs to reduce facility downtime and mitigate risks.”
Source:
http://mb.com.ph/
Gartner Predicts Some BPO Vendors Won't Make it in 2012
by: Karen Cayamanda
Wednesday, October 07, 2009 | Outsourcing Research / Trends | Comments (0)
A quarter of service providers today may no longer exist come 2012, according to a recent Gartner research.
Robert Brown, VP for research, said that the current economic crisis, loss-making contracts, and failure to adapt to standardized delivery models are factors that will affect service providers in their efforts to keep the business going. "Some will be acquired and some will exit the market completely to be replaced by dynamic new partners delivering BPO as automated, utility services."
Gartner noted that BPO buyers must take caution before venturing into any new outsourcing contract, and should be aware of these signs: unprofitable outsourcing deals, inability to get new projects, loss of major contracts, inability to get enough capital to bid on new BPO deals, exposure to banking sector, and increasing levels of contract cancellation.
Source:
http://wistechnology.com