Planet Outsourcing

RPO or recruitment process outsourcing has started to gain steam in India. RPO is generating revenues worth $92 billion in India and this figure is only expected to go north. The people involved in this work look for clients worldwide and handle the task of finding talent for various jobs.

Overseas companies find it quite suitable since the cost of recruiting a candidate works out to $100,000 per year in U.S. By 2008 RPO is expected to generate revenues worth $ 30 billion. The companies are able to bring down their recruitment costs by more than one third with RPO.

RPO involves work ranging from candidate searching, corporate intelligence research to market trend analyses and market recruiting. The RPO model is proving out to be a big hit therefore it is being regarded as the next big thing in the world of outsourcing.

Via hindustantimes

It is expected that logistics services spending would increase across the pharma, automotive, consumer and technology industries over a period of five years as the outsourced logistics market is expected to grow by nearly thirty three percent. Experts are warning that third party logistics providers must themselves make a greater effort for benefiting from this opportunity since it would now not be possible to rely on greater outsourcing penetration and sustaining margins for recognizing growth.

If outsourcing companies would like to benefit from this industry then they must be associated with their customer in a close manner and develop a better understanding of the variations in the national cultures and regional market characteristics. Growth will be witnessed in retail markets due to consumer demand and supply chain trends. The major growth is expected in online shopping and recycling of electrical products.

Via prweb

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

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

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

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

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

India is known to undertake a lot of U.S outsourcing work and now Archaeological Survey of India or ASI is facing the stick for outsourcing the digitization of its archive of photographs to American Institute of Indian Studies, Gurgaon which is an American funded organization receiving grants from the Smithsonian Institution, Washington.

This was done even though procedural cautions were stated in a report which was presented by a standing parliamentary committee. This report had questioned the locus standi of American Institute of Indian Studies.

The report observed:

Adequate care should be taken while finalising such kind of deal (sic) so the expenditure to be occurred... is spent in the best interest of the nation and valuable information about Indian antiquities and monuments are not handed over to foreign hands. It further stated that ASI would prepare estimates and compare the estimates with other eligible parties after the sanctions are obtained. The report also highlighted the demoralisation of ASI’s own professional cadre and the urgency of having a professional archaeologist head the organization.

Despite all this the contract was awarded to American Institute of Indian Studies. It seems all the report findings were overlooked while handling the contract. When C Babu Rajeev, Director-general, ASI was asked for an explanation he said that he did not owe an explanation. Is the ministry sleeping over this issue?

Via organizer

It is said that India rules the outsourcing industry and though India is mainly involved in back end IT related work but now pre media aspect has been added to its kitty. In this area up till now India used to tackle basic jobs such as DTP, word processing etc but now it has moved further in this area and now a number of companies are offering design and creative work to Indian companies.

Indian companies have been able to prove their superiority in strategic design and branding work. Companies are either working for clients directly or through international consultancies and are even performing work such as typesetting or identity implementation.

It seems that India is expected to garner a bigger share in this arena too and lead from the front.

Via agencyfaqs

This budget has not brought any good news for the Indian outsourcing industry. In the finance budget presented the export revenue of a number of Indian outsourcing companies was brought under the tax scanner and this seems to be the first measure by the government for bringing down the tax benefits to these companies.

Reacting to this, N. Ramachandran, CFO, iGATE Global Solutions stated:

Prices that outsourcers charge their customers are unlikely to go up as a result, but profit margins will be affected.

Before the budget the Finance Minister of India had stated that incomes under tax exemption would now be covered under the minimum alternate tax or MAT. A number of other tax issues are expected to trouble the Indian outsourcing industry which is already facing competition in the wake of other countries offering their services at low prices. It seems Indian outsourcing industry has a tough time ahead.

Via techworld