Curtains went up on the Black Book of Outsourcing list. The survey of global service users aims to identify the 50 best-managed global outsourcing vendors through surveying client experience and assessing industry developments.

The 2008 issue of the annual list released by US-based Brown-Wilson Group once again proved the fact that change is the only constant in the dynamic outsourcing industry.

The 2008 list saw last year’s leaders Infosys, Hexaware, EXL Service and ICICI Firstsource failing to feature in the Top 50 this year due to low client approval ratings, a fact which clearly shows that Indian BPOs need to work on their delivery levels. IBM Global also lost its position this year. Firstsource (formerly ICICI), a four-year top ranked performer fell the most of any BPO to 1550 of 1690.

The top 50 list this year comprises six Indian companies Wipro, Satyam, TCS, HCL, NIIT and Patni. Interestingly, the survey shows that outsourcing is no longer seen as a refuge of the financially weak or technically-deficient enterprise, nor is it a stick to threaten US workers. It is increasingly being accepted as a strategic tool. As the outsourcing Juggeranaut rolls on, we bring to you the top 10 best BPO vendors globally.  read more

IT and BPO industry is poised to grow 15 to 20 per cent in the next five years and direct employment likely to go up to eight million, a recent survey by NASSCOM has said.

The survey has revealed that prospects of the industry growing in 50 cities in the country were bright if the state governments concentrate on developing infrastructure in these cities.

MUMBAI: The Indian BPO sector may also feel the heat of double-digit inflation, causing vendors to increase prices for their services, a study published in June by research firm DataMonitor seems to indicate.

The study that tracked pricing for contact centre services globally found that one of the largest influencers on price shifts in the outsourcing sector relates to changes in inflation in the delivery locations.
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DUBLIN, Ireland–(BUSINESS WIRE)– Research and Markets has announced the addition of the “Global Delivery Locations for BPO - Focus on Latin America (Strategic Focus)” report to their offering.

Introduction : A detailed analysis of Latin America’s capabilities as a sourcing location for IT outsourcing and BPO services.

Scope : - This report looks at the opportunities available to IT and BPO vendors in major Latin American locations such as Mexico, Brazil and Argentina.

- It also covers developing markets such as Costa Rica, Chile and Uruguay.

- It contains analysis of the leading players in the Latin American market, including both local and international providers.

- The report also offers recommendations to vendors about how best to utilize Latin America as part of a coherent sourcing strategy.

Report Highlights : - Latin America is becoming an increasingly popular destination for IT services and BPO vendors who are looking to provide low-cost services to clients. (more…)

Outsource Partners International (OPI), a business process outsourcing company that provides finance and accounting services to clients in the US and UK through offshore resource centres in India, plans to target Indian global firms to scale up business.

The US-based company, which started operations in India in 2002, has set up centres in Bangalore, Delhi and Kochi and employs around 2,500 people with accounting backgrounds. The company is all geared to tap the Indian accounting market which has been witnessing hectic activity.

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India, May 13 - 2008: Infosys BPO, the business process outsourcing subsidiary of Infosys Technologies, today announced that three of its top-level executives have been superstars named in FAO Today’s global Superstars List, now in its fourth year. Amitabh Chaudhry, MD and CEO, Infosys BPO, Ritesh Idnani, VP and Global Sales Head, Infosys BPO, and Michel de Zeeuw, Vice President, Infosys (Former SVP, Global Finance, at Philips) have been ranked superstars, along with global leaders of the industry.

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The economic recession in the United States has affected the BPOs in India. But this has not totally fractured the outsourcing industry, as there are scopes opening up beyond US like Europe and Australia or changing client exposure.

THE BUSINESS Process Outsourcing (BPO) vendors having United States based clients share mixed reactions due to the temporary slump in the US economy. This will be further heightened till the time final election results are not out and the new president doesn’t announce some relief with string of measures to combat the credit crunch heat.Those BPOs or KPOs, which focus on large US companies or big ticket outsourcing contracts, are facing the recession crisis as seen by the delays in contract renewals or temporary freeze in awarding of new contracts. One of the associated factors is the lengthened decision-making time with a lot of top heads losing their jobs under the recession pressure.

Large companies have now focussed their energies on restructuring their companies through vertical acquisitions or major divestitures besides analysing their internal processes. This has chiefly been observed with IT and financial service companies. It seems that ’outsourcing’ is now on the back-burner for them, as they focus more on meeting their budgeted business targets first.

But there’s some hope in these tough times. The economic crisis has forced the small to mid-sized US companies to assess outsourcing as an option as they struggle to survive against the big mammoths. They are re-evaluating their internal processes to find solutions within tight business budget constraints. This, in fact, opens up a galore of opportunities for BPOs and KPOs from India, which focus on small to mid-sized US clients with revenues lesser than $5 million.

There are few other smart choices available too, like looking beyond the US to stretch the sights to Europe and Australia or changing the client exposure from the typical IT and financial service clients to other industry verticals.

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Prominent BPO firms like Essar Group’s Aegis BPO, WNS and Capgemini are designing in-house curricula to suit the sector’s requirements while others like Wipro and HCL Technologies are partnering key universities for certified courses.

The broad idea is to help freshers and high-potential employees develop soft skills not generally taught at universities, and simultaneously increase retention rates in an industry that has attrition rates between 30 and 50 per cent. The industry, according to Nasscom estimates, accounts for almost $11 billion and employs slightly over 700,000 professionals (in terms of direct employment).

MANILA, Philippines — Despite the depreciation of the US dollar, the effect on profit margins for business process outsourcing (BPO) companies remains insignificant, according to a top official of PLDT.

A recent survey of BPO executives noted that further depreciation will take its toll on industry competitiveness once it moves down to P37 per dollar.

“The margins are still deeper,” said Ray Espinosa, president and CEO of ePLDT, when asked by INQUIRER.net to comment on the matter at the sidelines of PLDT’s financial briefing this week.

At present, Espinosa estimates BPO companies are still able to deliver 40 to 45 percent operational cost-savings to offshore clients.

ePLDT, the information and communications technology arm of the PLDT Group, reported P2.6 billion in revenues for the first quarter, 85 percent of which is contributed by its BPO businesses Ventus and SPi.

The two companies have a combined employee base of 14,000 located in 22 delivery centers.

The peso appreciation has more impact in its voice-based or call center business where revenues are dollar-denominated. Dollar revenues grew 21 percent but in peso terms the growth is only seven percent.

“But our voice-based business remains promising with new contracts in the pipeline and expansion of existing contracts,” Espinosa said.

ePLDT currently pumps in six percent of PLDT’s total revenues. The goal in the near-term is to increase that share to 10 percent, Espinosa said.      Source/courtesy

Indian IT and BPO sectors will ramp up its staff by four times from its existing workforce of two million to eight million by 2018, with Tier 2/3 cities contributing two million of the target, according to a recent study.

Currently, the top 7 IT-BPO locations in India contribute almost 90% of the workforce, but in a decade’s time, trade body Nasscom and management consultant A T Kearney expects that to move down to 75% and the rest by the other cities.

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