News reports over the past two weeks highlight the movement of midsized Indian service providers, Firstsource Solutions, WNS Global Services, and Intelenet Global Services deeper into North America instead of Europe. Others are moving deeper into Latin America and China. China’s outsourcing providers are taking hold in North America. Over the years I’ve followed and written about outsourcing, I’ve pointed out that competition in the service provider landscape is good for the buyers.
But maybe not. Let’s look at the bigger picture.
When a competing provider enters a market, an incumbent provider’s customers are vulnerable. The “hunters” on the new… Read the rest
For more than 10 years, it has been my privilege – and my fascination – to interview the world’s leadings service providers and analysts about their predictions as to how outsourcing will change in the coming year.
Years ago, the articles started with an overview of how accurate the prior year’s predictions turned out to be. Except for the growth predictions, the predictions were often not on the mark – except for two years where the industry observers predicted massive change – one due to the beginnings of BPO and the other was the year everyone talked about the impact… Read the rest
Three statistics caught my eye as important outsourcing news today: #1, 3/4, and 24.
#1 - Congratulations to Océ Business Services!
The Black Book of Outsourcing’s 2010 “State of the Industry” survey ranked Océ as the leading document process outsourcing provider among the Global Top 50 Outsourcing Providers. Océ Business Services received the highest scores of any DPO provider in the three criteria that 6,500 respondents considered to be the most important. These include awareness of requirements, closely followed by the ability to resolve problems as and when they arise, and the skills and resources that providers can bring to the work they… Read the rest
In tracking what’s been pulsating through the outsourcing world recently, two items rose to the top of my list of developments that buyers of outsourcing services should keep on their radar screens.
First is the launch of OPInvoice, Outsource Partners International’s new on-demand end-to-end solution for the Source-to-Pay cycle. This is important not only because of the solution’s capabilities to reduce costs and provide visibility into the process but also because it is OPI’s entry into the world of Platform BPO offerings.
It’s part of a significant trend in providing more predictable value in outsourced services. Look… Read the rest
WNS was featured on the show titled Making it Big – 2010 on CNBC last week. The program chronicled WNS’s growth story from its origins as a captive back-office unit of British Airways through its transformation into a leading third-party provider of BPO services across many industries.
The program covered WNS’s history, its pioneer status in the BPO industry, and its leadership position as the first India-based BPO company to list on the NYSE. Most importantly, the show highlights WNS’s focus and strategic programs for the future as it evolves for its next phase of growth.
If you’re interested in viewing the show,… Read the rest
In Rome, do as the Romans do! This popular proverb has a strong application as corporations expand across international locations. Most of us are aware of the initial failures that some of the top brands in the world have encountered when they have rushed to penetrate a new geography/country without understanding the local nuances fully.
As an example, the Coca-Cola name in China was first read as “Kekoukela,” meaning “Bite the Wax Tadpole” or “Female Horse Stuffed with Wax,” depending on the dialect. Coke then researched 40,000 characters to find a phonetic equivalent to “kokoukole” translating into “Happiness in the… Read the rest
In tracking what’s been pulsating through the outsourcing world recently, what rose to the top of my list are a few choice words in quotes that shaped the news and come under the category of “just when I thought it couldn’t get worse” –
- chop shop
- whipped cream and cherry on top
U.S. Senators Charles Schumer and Claire McCaskill proposed a Border Security Bill to collect $600 million to fund beefing up security at the U.S.-Mexican border by increasing fees that inevitably will penalize some outsourcing service providers. The proposal seeks to increase fees for H-1B and L-1… Read the rest
Headline news recently has highlighted several areas of the world where outsourcing is taking a different turn.
Midsized companies are demonstrating a trend of accepting offshore services in outsourcing. Companies in the United States, Europe, and leading banks in Africa, are offshoring to India’s outsourcers.
Wipro is targeting domestic business in China, Korea, and South Africa.
Wipro also established its first data center in Europe, taking over a Citibank center in Germany.
DbyDx Software, an application development firm headquartered in India, is starting to expand its global footprint and announced it’s opening a delivery center in Sunnyvale, California.
The adoption of outsourcing legal functions is booming, especially for offshore service providers. An article in the Deccan Herald points out there are more than 140 legal outsourcing companies in India, some charging one-third less than American law firms’ hourly billable rate. And they’re recruiting North American and European lawyers with experience.
How long will this movement last and how far will it go? The Deccan Herald says it’s “here to stay.”
But a New York Times blogger points out a potential problem that has already impacted other business processes commonly outsourced to India.