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Outsourcing News for November 2010 | MicroSourcing

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NASSCOM Says Yes to Flexible BPO Atmosphere for Women

by: Karen Cayamanda

Tuesday, November 23, 2010 | Outsourcing News | Comments (0)

Improvement of Female Attrition in BPOs Probed

Indian IT and BPO industry body National Association of Software and Services Companies (NASSCOM) favored a flexible work atmosphere for women who are raising their own families. This is to reduce the drop-out rates and increase the number of Indian female workers in mid- and senior management level positions in IT-BPO companies.

According to NASSCOM chairman Harsh Manglik, there are instances when female workers take a break from work to raise their families. The “biggest barrier” arises when they come back to work after quite some time and they feel outdated and disconnected from the work atmosphere. They also feel “left behind” when it comes to technology competency. Manglik noted in the Diversity and Inclusivity Summit 2010 that the industry must offer an opportunity or a flexible atmosphere to keep them engaged. NASSCOM added that there are 600,000 women who are employed in the IT-BPO industry in India, but less than four percent have senior level positions.



Increase in IT spending

Research firm Gartner projected that IT spending by companies in the Asia-Pacific region will reach $312.3 billion next year, a 7.6 percent increase compared to 2010 figures.

Software is the fastest growing segment in the region with 11.3 percent. Hardware got 10.1 percent, IT services with 9.3 percent, and telecommunications segment with 7.6 percent. "Growth in 2010 has been strong, due in part to pent-up demand following budget freezes in 2009 and the need to replace ageing hardware," Gartner Senior Vice-President and Global Head (Research) Peter Sondergaard said.

Sondergaard also said after slowing down in 2009 as a result of the global financial crisis, manufacturing and supply chain industries in countries such as China and India showed an increase in activity in 2010. Moreover, it is projected that the healthcare sector, utilities, and education will show the strongest IT spending growth rate in the region.


China a Runner-up as Top Outsourcing Destination

Canada-based ICT research and advisory firm XMG Global said China is consistently narrowing the gap with India as the no.1 outsourcing location of choice.

China is expected to end 2010 with US$35.76 billion in outsourcing revenues, a 28.7 percent global market share. On the other hand, India’s outsourcing industry still has the lion’s share of the market with 43.7 percent.

China posted a 30 percent growth rate, while India only increased by 14 percent. XMG chief analyst Lauro Vives said the revenue gap between these countries is getting smaller. "India's weakening lead is due to the substantial efforts of China, the Philippines, and other offshoring destinations in building their capacity to attract significant amount of investment," Vives said, adding that India maintains its lead, but other offshore outsourcing destinations are starting to mature.

By the end of this year, the global outsourcing market is expected to post US$425 billion estimated total revenue.




PH BPO Likely to Miss 2010 Growth Target

by: Karen Cayamanda

Monday, November 15, 2010 | Outsourcing News | Comments (0)

India, China and Philippines Dominate Offshore Outsourcing

The Business Processing Association of the Philippines or BPAP forecasted that the BPO sector would end 2010 with $9 billion in revenues or a year-on-year growth rate of 26 percent. However, Canada-based XMG Global Inc. said revenues would only reach $8.85-billion. This accounts for only 23 percent growth rate, though it is faster compared to 20 percent seen in 2009.

On a global scale, outsourcing revenues would increase 13.9 percent this year - from $373.1 billion to $425 billion. XMG chief analyst Lauro Vives said the slower growth rate this year is “indicative of slow investment expansion in off shoring destinations and conservative increase in outsourcing demand from the US and European region.”

Vives added that India, China, and the Philippines still dominate the offshore outsourcing arena. For this year’s global revenues, India would get 43.7 percent share, China would have 28.7 percent, while the Philippines would get 7.1 percent.




Davao Aims to Tap Non-voice BPO Sector

by: Karen Cayamanda

Friday, November 12, 2010 | Outsourcing News | Comments (0)

Knowing that the non-voice BPO sector is growing in the global market, the Top Next Wave City is looking at expanding service offerings to include non-voice processes.

Davao has requirements needed in the BPO industry

Davao got the number 1 spot in the Top Ten Next Wave Cities list of the Business Processing Association of the Philippines (BPAP) and the Commission of Information Communication and Technology (CICT). Jason Magnaye, head of the Davao City Investment and Promotions Center, said the city has communication facilities, infrastructure, and manpower needed in the industry. He added that investments do not come to the province because clients are not interested in expanding operations outside Metro Manila, that is why they are focusing on the strong points of the city to attract IT investors.

According to BPAP, 20 outsourcing firms operate in Davao, with workforce consisting of 8,500 employees.



BPO companies: from optimization to transformation

From optimization to transformation: Infosys BPO CEO and Managing Director Swaminathan Dandapani said the IT-BPO industry is undergoing a paradigm shift. Executives in the outsourcing industry said their clients think that transformation of business is the “most compelling” benefit of outsourcing.

In the International Outsourcing Summit 2010 held last month, Dandapani said clients expect their service providers to identify new business opportunities and improve processes, adding that IT-BPO companies must think about ways on how to increase clients’ revenues.

On the other hand, Everest Group Managing Partner (India) Gaurav Gupta said the Philippines needs to increase awareness that it can deliver more complex services, and must be promoted as a destination for transformative processes. “Companies view the Philippines as the world leader in voice BPO. What they don’t realize is that it is also a significant provider of non-voice, complex services.”



26 IT & BPO Contracts in India Recorded in Q3

Indian buyers granted 26 IT and business process outsourcing (BPO) contracts in third quarter of this year, adding up to the annual contract value (ACV) of $290 million. According to global research firm Everest, this is more than double of the $129 million ACV posted in the same period last year.

“Indian companies are maturing to a level where they are handing out large outsourcing deals, transformational in nature. Companies are going global and at the same time competing in local market with MNCs (multi-national corporations), and hence they are looking to aggressively leverage technology for growth,” said Amneet Singh, Vice President-Global Sourcing, Everest.

Prominent deals granted to service providers include IBM’s outsourcing deal with Bharti Airtel and Jet Airways, and Wipro’s contract with Central Bank of India as well as UCO Bank.




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