Outsourcing News for February 2012
Gartner Predicts IT Expenses in MEA Region to Reach $93bn
by: Sarah Joson
Tuesday, February 28, 2012 | Outsourcing News | Comments (0)
Research and consultancy firm Gartner predicts that overall IT spending in the Middle East and Africa (MEA) region will increase by 6.3 percent, from $88.51 billion in 2011 to $93.87 billion this year.
Peter Sondergaard, Gartner’s Senior Vice-president and global head of research, said the growth rate throughout the region was larger in 2011 compared to what it is now. He added that the cloud, social media, mobile, and information are four factors that will affect IT organizations and technology providers in the Middle East, but then again growth for the organizations could be hindered by challenges such as the market for cloud services, talent shortage, and large volumes of data to be handled.
These challenges will then push CIOs in the Middle East to outsource construction of infrastructure and application environments. With ample bargaining power and proper vendor management skills, CIOs are likely to land good outsourcing deals, added Sondergaard.
It is expected that the banking and securities industry, particularly in the Mena region, will post the fastest growth, followed by transportation and healthcare.
Source:
http://www.tradearabia.com/
Peter Sondergaard, Gartner’s Senior Vice-president and global head of research, said the growth rate throughout the region was larger in 2011 compared to what it is now. He added that the cloud, social media, mobile, and information are four factors that will affect IT organizations and technology providers in the Middle East, but then again growth for the organizations could be hindered by challenges such as the market for cloud services, talent shortage, and large volumes of data to be handled.
These challenges will then push CIOs in the Middle East to outsource construction of infrastructure and application environments. With ample bargaining power and proper vendor management skills, CIOs are likely to land good outsourcing deals, added Sondergaard.
It is expected that the banking and securities industry, particularly in the Mena region, will post the fastest growth, followed by transportation and healthcare.
Source:
http://www.tradearabia.com/
PH BPO Industry Eyes $13B in 2012 Earnings
by: Sarah Joson
Monday, February 27, 2012 | Outsourcing News | Comments (0)
The business process outsourcing (BPO) industry of the Philippines is targeting an increase of 19 percent in revenues reaching $13 billion this year. According to Martin Crisostomo, External Affairs Executive Director at the Business Processing Association of the Philippines (BPAP), this is about $2 billion higher than last year’s $10.9 billion.
Crisostomo said the organization is expecting an increase in earnings this year due to an escalation in demand for voice-based and non-voice processes by companies that are striving to remain competitive. Furthermore, he anticipates that the voice segment will grow and propel the country’s revenues. Also, most Filipinos are proficient in the English language, making the country a favoured outsourcing destination especially for call center work.
The non-voice segment is also predicted to grow due to an increase in the demand for high-end processes such as financial services or accounting, health services information management, and software development.
BPAP remains confident that the industry will reach its revenue goals. However, they are taking into account the pending bills in the US that urge firms to bring jobs back home.
Source:
http://www.abs-cbnnews.com/
Crisostomo said the organization is expecting an increase in earnings this year due to an escalation in demand for voice-based and non-voice processes by companies that are striving to remain competitive. Furthermore, he anticipates that the voice segment will grow and propel the country’s revenues. Also, most Filipinos are proficient in the English language, making the country a favoured outsourcing destination especially for call center work.
The non-voice segment is also predicted to grow due to an increase in the demand for high-end processes such as financial services or accounting, health services information management, and software development.
BPAP remains confident that the industry will reach its revenue goals. However, they are taking into account the pending bills in the US that urge firms to bring jobs back home.
Source:
http://www.abs-cbnnews.com/
PH still Far from Matching India’s BPO Industry
by: Sarah Joson
Saturday, February 25, 2012 | Outsourcing News | Comments (0)
Even with the Philippines’ recent win in the call center outsourcing segment, India remains ahead in terms of overall services exports. In fact, India’s business process outsourcing (BPO) industry is currently valued at $15 billion, while the Philippines is only at the $9 billion mark. Also, there’s a huge difference between the size of the industry and range of services of both countries.
According to research firm Everest Group, the call center sector accounts for $7.38 billion of the $9 billion BPO industry of the Philippines. This is slightly higher than India’s voice-based services exports valued at $7 billion. The country has dominated the voice-based sector due to the Filipinos’ cultural compatibility with the Western culture and better English accent.
However, even though the country’s BPO industry posts a faster growth rate, it will take more time before it reaches India’s current standing. Moreover, when it comes to non-voice processes, there’s a huge difference between both countries, said Amneet Singh, Vice-president, Global Sourcing, Everest Group.
WNS’ CEO Keshav Murugesh stated that when it comes to data-based work, India definitely surpasses the Philippines. On the other hand, Swaminathan D, CEO and MD of Infosys BPO, said the Philippines is the second outsourcing location of choice of clients because it is able to supply candidates with various skillsets. He cited that Manila alone can provide 100,000 certified accountants for the finance & accounting segment which is a strong suit if they want to delve into the F&A market.
Operational costs in India are 5-15 percent lower compared to what the Philippines offers. Another advantage of India is it has several domestic BPO hubs which can provide more flexibility, whereas the Philippines merely has two known locations which are Cebu and Manila, and offers limited alternatives for clients.
Source:
http://business-standard.com/
According to research firm Everest Group, the call center sector accounts for $7.38 billion of the $9 billion BPO industry of the Philippines. This is slightly higher than India’s voice-based services exports valued at $7 billion. The country has dominated the voice-based sector due to the Filipinos’ cultural compatibility with the Western culture and better English accent.
However, even though the country’s BPO industry posts a faster growth rate, it will take more time before it reaches India’s current standing. Moreover, when it comes to non-voice processes, there’s a huge difference between both countries, said Amneet Singh, Vice-president, Global Sourcing, Everest Group.
WNS’ CEO Keshav Murugesh stated that when it comes to data-based work, India definitely surpasses the Philippines. On the other hand, Swaminathan D, CEO and MD of Infosys BPO, said the Philippines is the second outsourcing location of choice of clients because it is able to supply candidates with various skillsets. He cited that Manila alone can provide 100,000 certified accountants for the finance & accounting segment which is a strong suit if they want to delve into the F&A market.
Operational costs in India are 5-15 percent lower compared to what the Philippines offers. Another advantage of India is it has several domestic BPO hubs which can provide more flexibility, whereas the Philippines merely has two known locations which are Cebu and Manila, and offers limited alternatives for clients.
Source:
http://business-standard.com/
US Congress Urged to Give Rewards to Firms that Create Jobs Locally
by: Sarah Joson
Friday, February 24, 2012 | Outsourcing News | Comments (0)
US President Barack Obama urged the Congress to grant tax rewards to companies that provide employment to US citizens. The President said the Congress needs to make adjustments in the country’s tax code for companies such as Boeing Co. So it will be easy for them to create more job opportunities to the country. In his recent visit to Boeing Co.’s jet factory in Everett, Washington, he was delighted that it had produced thousands of employment opportunities to US citizens.
The President noted that businesses in the US created 3.7 million new jobs in just two years, adding that even if labor and operational costs are way higher locally than in China, the quality of products will definitely be better, and that will be the country’s way to be globally competitive.
Furthermore, he said that companies that outsource jobs shouldn’t get tax breaks and help should be extended to technology companies and other businesses that set up operations in the country.
Meanwhile, the annual White House report indicates that the US will have a stronger economy this year and produce two million jobs. The report also predicts that the average unemployment rate for this year will be around 8 to 8.6 percent.
Source:
http://www.businessweek.com/
The President noted that businesses in the US created 3.7 million new jobs in just two years, adding that even if labor and operational costs are way higher locally than in China, the quality of products will definitely be better, and that will be the country’s way to be globally competitive.
Furthermore, he said that companies that outsource jobs shouldn’t get tax breaks and help should be extended to technology companies and other businesses that set up operations in the country.
Meanwhile, the annual White House report indicates that the US will have a stronger economy this year and produce two million jobs. The report also predicts that the average unemployment rate for this year will be around 8 to 8.6 percent.
Source:
http://www.businessweek.com/
Indian Workers to Get Highest Wage Hike in Asia Pacific this Year
by: Sarah Joson
Wednesday, February 22, 2012 | Outsourcing News | Comments (0)
According to a Salary Increase Survey done by consultancy firm Aon Hewitt, Indian employees will get an 11.9% salary increase in 2012. This is slightly lower than the 2011 hike at 12.6%, but India remains the top country in the Asia Pacific region to give the highest salary increase. Survey also indicates that the marginal drop in figures is brought about by a cautious approach of business owners towards economic uncertainty.
This would be the 10th consecutive year that India will dominate the Asia Pacific region for wage increases. Meanwhile, lagging behind India in terms of salary increases in the Asia Pacific region are China which is predicted to post 9.5%, and the Philippines with 6.9% for 2012. Other countries in the Asia Pacific region that are likely to have wage increases are Australia (4.6%), Hong Kong (5%), Japan (2.8%), Singapore (4.8%), and Malaysia (6.2%).
The Compensation Consulting Practice Leader of Aon Hewitt, Sandeep Chaudhary, said business views are recently indicating positive signs. Increase rates could mean that companies are prioritizing the talent of employees, while closely monitoring the economy.
The rates of salary increases in India are as follows: general/entry level workers are likely to get 11.8%, junior manager level at 12.3%, middle management at 12%, and senior management at 11.1% this year.
Source:
http://www.hindustantimes.com
This would be the 10th consecutive year that India will dominate the Asia Pacific region for wage increases. Meanwhile, lagging behind India in terms of salary increases in the Asia Pacific region are China which is predicted to post 9.5%, and the Philippines with 6.9% for 2012. Other countries in the Asia Pacific region that are likely to have wage increases are Australia (4.6%), Hong Kong (5%), Japan (2.8%), Singapore (4.8%), and Malaysia (6.2%).
The Compensation Consulting Practice Leader of Aon Hewitt, Sandeep Chaudhary, said business views are recently indicating positive signs. Increase rates could mean that companies are prioritizing the talent of employees, while closely monitoring the economy.
The rates of salary increases in India are as follows: general/entry level workers are likely to get 11.8%, junior manager level at 12.3%, middle management at 12%, and senior management at 11.1% this year.
Source:
http://www.hindustantimes.com