On my list of what’s been pulsating through the outsourcing world recently are a bold move and some notable quotables. There’s also some news that begs the question: what’s wrong with this picture?
Bold Move
For the past two quarters, MphasiS, a leading Indian ITO and BPO service provider and subsidiary of HP, has been deducting 5 – 20 percent from its employees’ salaries and giving it back as “variable pay.” Employees receive the variable pay quarterly, based on performance of the employee as well as the company. It’s improving the cash flow but also notably reducing attrition.
What’s… Read the rest
I read this week an article in eWeek that pointed to a labor problem that impacts outsourcing. The gist of it says:
While reluctant to join labor movements in the past, information workers may be fed up with offshore outsourcing and restrictive contracting rules, analysts and unions say. Is the IT workforce ripe for union membership? . . . Growing IT pessimism and the increasing strength of offshore outsourcing are fueling new efforts to attract information workers, insiders say. There may be growing support among the workforce for such union representation. A union-backed survey revealed “increasing pessimism” among United
Jordan just launched a new outsourcing program –” Turn to Jordan…your Smart Shore Destination” – predicted to create 3,000-10,000 new outsourcing jobs by November 2011.
The country also estimates that the initiative will grow its outsourcing business to reach $168 billion by the end of 2012, despte competition from Egypt and UAE. Outsourcing in the Middle East is expected to increase by 20-50 percent.
A study by the Conference Board and Duke University on offshoring trends among U.S., European, and Australian firms, found a slowing in the creation of new captive offshore operations and greater interest in the benefits of outsourcing to large offshore service providers.
Nearly two-thirds of the surveyed respondents are planing new offshoring initiatives during the next three years.
The report on the study (“Financial Services Offshoring: Moving Toward Fewer Captives and Global Cost competitiveness,” issued May 28) also found financial insitutions are considering nearshore alternatives in Argentina and Costa Rica as well as lower-cost alternatives in U.S. cities such as Jacksonville (Florida) and Raleigh/Durham/Chapel Hill (North… Read the rest
Making the Pulse List today are some areas where there’s a new beat with potential wide ramifications for the outsourcing world. The outcomes of these trailblazing activites remains to be seen, but players are plotting new courses throughout the world.
(1) Germany. A report from PricewaterhouseCoopers and NASSCOM (India’s National Association of Software and Services Companies) focuses on business-growth opportunities for India’s outsourcing service providers in Germanic countries. Nearly all of the companies in these nations are small or midsize businesses. Most have a severe shortage of IT and engineering talent, and many are among the early adopters of outsourcing. However, they prefer nearshore rather than offshore providers. India’s outsourcing providers with… Read the rest
Surfing the net a couple of days ago to stay on top of industry news as it happens, four articles caught my eye and took me off auto-pilot long enough to read every word.
The article in Gulf Times, a Qatar newspaper, began with this statement made by Azim Premji, the renowned Indian entrepreneur and chairman of Wipro:
“India is far from where it needs to be …. Country after country is stepping ahead.”
It seems to me that for a long time the media has treated the words “India” and “outsourcing” almost as though they were synonymous. That… Read the rest
Ever heard of Amethi? You might want to make sure it’s on your radar screen. Microsoft Chairman, Bill Gates, accompanied India’s Congress general secretary, Rahul Gandi, on an unannounced visit to Amethi yesterday.
In his address at a meeting of women’s self-help groups, Gates stressed the importance of computer education. He added that he will “do his best to develop Amethi as an IT hub.”
Infosys is looking to acquire companies in the UK, France and Germany.
A new study reveals that 500,000 public sector jobs will likely be outsourced by 2015 in the UK in its efforts to combat inefficiencies and reduce government spending.
Convergys, Stream Global Services, Sutherland Global Services and Sykes Asia are assembling Spanish-speaking talent pools in the Philippines.
China’s hiSoft Technology International has taken over U.S. cloud computing provider Echo Lane, a top solution provider for Salesforce.com.
Irish BPO provider Abtran is adding 200 new jobs in its research and development area serving sales, customer service,… Read the rest
What were a bunch of start-up firms in India a decade ago grew into a multi-billion dollar industry. Now those same companies face new threats from within and without India. The Economic Times discusses the need for fresh thinking, which is driving the changing of the guard in BPO firms across India.
Clinical trial outsourcing is set to overtake the call center boom in India. The IndianExpress.com highlights why India ranks third in attractiveness as a location for clinical research but also highlights potential regulatory issues.
What would happen if China and India were to stop competing and start cooperating instead? An article in Business Standard, an Indian newspaper, explores the possibility and concludes:
There is considerable scope for joint projects as we master the practice of working harmoniously together. … We strongly feel that the India-China relationship is grossly under-realised and the capacities for expansion are enormous.
An article in The Huffington Post takes a broader look and concludes:
Cooperation on the global level is a new requirement in the history of our civilization, and we are not prepared for it. Our institutions and organizations were
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