IBM eyeing $1.5 billion Reliance Communications outsourcing deal

Posted on January 30, 2012 by admin

Samuel J Palmisano, Chairman, President & CEO of IBM will personally meet chairman of Reliance Communications Anil Ambani and pitch for an outsourcing deal worth $1.5 billion. In case IBM lands up with the deal it would be the third major contract for the company in India. IBM has a strong presence in India and is looking forward to focus on IT outsourcing contracts. As of now both the companies have declined to comment on the any developments taking place between them. It is expected to be a ten year contract and four companies had been ahortlisted for this purpose – Accenture, EDS, IBM and T-Systems. Reliance Communications is looking forward to outsource its wireless business to a service provider for bringing down it’s projected IT spending and also remains asset light. The company would save to the tune of twenty percent and as a result also concentrate on its core competencies. image Via business-standard

European technology sector facing threat from outsourcing

Posted on January 29, 2012 by admin

As per a latest report though the job opportunities in the European technology sector look quite good but it is facing threats from outsourcing. One of the biggest problems being encountered by the technology sector is the shortage of skills. Despite the requirement for further skills a number of jobs in this sector are facing threats from countries such as China and India which are one of the favorite outsourcing destinations. Not only traditional jobs but even low cost centres are under the risk of being outsourced. There seems to be a fear looming in this industry in Europe. A survey undertaken demonstrated that more than half of the people believed that tech manufacturing jobs were at the risk of being lost to the outsourcing wave. One person’s gain is another person’s loss. Outsourcing cannot be wholly blamed for this as the companies need to strengthen themselves if they would not like to become the fodder for outsourcing companies. Via theregister

Indian advertising companies focusing on outsourcing

Posted on January 29, 2012 by admin

The outsourcing bug has bitten Mudra which is considered to be the fourth largest advertising agency in India and the company is now looking forward to setting up a strategic business unit which would be focusing on outsourcing business. Madhukar Kamath, Managing director & CEO, Mudra, told Business Standard stated: There is a lot of back-end work that can be outsourced. We are on the verge of bagging a large outsourcing project. It seems now the Indian advertising companies are looking forward to get a slice of the advertising outsourcing business but this path will be tough to follow since this area is highly competitive and there are a number of companies which are looking forward to create a mark in this arena. Probably India will play the cost card in order to beat everybody else in this game. Via agencyfaqs

Air New Zealand drops longstanding plans of outsourcing to India

Posted on January 29, 2012 by admin

Air New Zealand now does not want to take the course of outsourcing and has decided to go against the idea of outsourcing jobs to India believing that it would not meet their needs. Earlier the airlines was ready to forego around seventy finance jobs in the company so that it could save out around $NZ20 million by outsourcing these jobs. Earlier the company had plans to outsource jobs to Fiji but the political instability over there caused them to shift their plans to India. The airline issued a statement: We have now formed a view that India would not meet our requirements, so the outsourcing proposal has been withdrawn and this was communicated to staff earlier this week. Fearing that they might lose their jobs the employees’ gave their node for changing the work conditions and SFWU Jill Ovens stated that this move was a nice step forward for the finance staff. It is being said that the airlines dropped its plans after facing difficulties in outsourcing work and government pressure. To me the latter reasoning looks correct though. Image Via livemint

Compliance and regulatory issues affecting financial outsourcing

Posted on January 28, 2012 by admin

financial outsourcing could have picked up but thanks to the regulatory issues which have inhibited its growth. This issue has caused a burden on the companies and it is acting as a roadblock to outsourcing finance and outsourcing business. This was revealed in a study conducted by LogicaCMG which is a leading consulting firm. The reason attributed to slow growth in the financial outsourcing arena is increasing regulation and importance on governance. The study stated that just seven percent of the companies were only outsourcing their finance and accounting functions. Sixty eight percent of the firms studied stated that the current financial regimes were holding them back and the strict sanctions were was an overriding criteria in the desire of the CFO’s to retain direct control of their finance function. Probably the companies should try and request the government for relaxation of certain issues if they would like to gain benefit from the world of outsourcing. Via pr-inside

Is Asian outsourcing the reason behind product recall in UK?

Posted on January 27, 2012 by admin

UK has seen a significant jump in the number of product recalls and this is being linked to outsourcing to developing countries. Experts say that since most of the manufacturing is being outsourced to China and other nations it is becoming quite difficult to maintain control over quality. The trade associations of US and Europe have taken a serious note of this issue and they are condemning the regulatory authorities for poorly regulating the foreign active pharmaceutical ingredient manufacturers. The pharma industry has taken the biggest hit in this regard. As a result the credibility of the companies are taking the toll and with the market being highly completive they risk losing their customers and even their brand image could be hit badly. I believe the outsourcing companies should pull up their socks or risk losing their business as no company would like to sell products which start affecting their markets. Via drugresearcher

Convergys finds a place in global outsourcing top hundred list

Posted on January 27, 2012 by admin

Convergys is regarded as one of the world’s best outsourcing service providers and in order to honor its commitment to the outsourcing industry International Association of Outsourcing Professionals’ has selected the company as one of the world’s best outsourcing service providers. The list has some of the biggest names serving the outsourcing industry. Dave Dougherty, President and Chief Operating Officer, Convergys stated: We are honored to be named to this select list of global outsourcing companies. This distinction is a true reflection of the emphasis we place on providing exceptional solutions for our clients, helping them keep their customer relationships positive and profitable. Convergys was judged on the basis of the following criteria: The depth and breadth of the company’s competencies demonstrated through industrial recognition and investment in development of people. The value it brings to its clients’ customer experience. The accomplishments and experience of the executive team of Convergys and investment in management system which ensures outsourcing success. Congratulations to you Convergys!! Via crm2day

Walter Reed Center’s substandard care blamed on outsourcing

Posted on January 27, 2012 by admin

Outsourcing is being labeled as a culprit at the Walter Reed Army Medical Center. Local veterans are putting the blame on outsourcing for neglect of veterans’ contribution to the substandard care for wounded soldiers at the Walter Reed Army Medical Center. Competitive outsourcing is being blamed by the lawmakers. For bringing down the costs private companies are being allowed to compete for jobs which were earlier held by federal employees at Walter Reed. It is being said that the staff reductions were so high that they came down from the figures of three hundred to sixty. One of the veterans stated that if care facilities were to be outsourced they should go to the best providers and not one which is cheap. They say the situation would worsen since American forces are engaged in varied conflicts worldwide. Whatever be the case it has certainly left the veterans high and dry. Via postbulletin

What do you think about elderly outsourcing?

Posted on January 27, 2012 by admin

Deborah Moggach who is a known screenwriter and novelist has made a very exciting proposition that the U.K elderly should be outsourced to India since the weather is not that pleasant out there, pensions are reducing and it is easier to go on a holiday to Goa rather than catch a train from London to Edinburgh. The elderly would surely enjoy basking in India, the respect for elders prevalent in the Indian culture and low costs out there. The idea seems pretty good since India is the land of outsourcing but I am not pretty sure whether the elderly would like to leave their motherland permanently and shift to India since emotional attachment to their soil might stop them from leaving their native land but the idea seems to be really good and it might make some entrepreneurs think about starting an old age home for outsourced elderly. Via thehindubusinessline

Costs acting as a dampening factor for BPO sector in Dubai

Posted on January 27, 2012 by admin

Now Dubai is also looking to emulate the success of India in the field of BPO but high costs in bringing up the BPO centres is acting as a roadblock for the city. Amazingly the economy of UAE has been adjudged as the most competitive Arab economy by the World Economic Forum. It has received strong praises for its entrepreneurial skills but has lost out due to heavy dependence on migrant workers and lack of educational reforms. Lately UAE has been witnessing rising costs due to increasing rents and inflationary pressure which has been affecting business in Dubai. India is a leader in outsourcing and will continue for a long time since it has the basic communication skills coupled with low costs and with its expertise in IT and BPO makes it a natural choice for companies outsourcing. Now Dubai is targeting high end outsourcing operations and with its close proximity to Africa, East and South Europe, Central and South Asia will surely offer it a geographical advantage but only if it can control its costs since this is a vital factor in the outsourcing game. Via hindu