Outsourcing Times

Forest Service to be outsourced

It seems the outsourcing fever has spread to other areas of governance. You many not believe this but the US Forest Service is busy studying how viable is to outsource two-thirds of its work by 2009. For this the committee has come out with a new outsourcing plan.

The decision comes closely after the announcement of the Bush administration to sell 3,00,000 acres of forest service land. It is also said that the agency is looking at privatizing large portions of its environmental, law enforcement, fire-fighting and research operations.

The Forest Service employs a total number of 31,625 personnel and when the directives are going to be out, 21,350 full-time jobs would come under the scanner of possible replacement by private sector firms.

Back in 2003, the committee had drawn out similar reports but had to wrap it up due to opposition from the Congress. Close to $360 million were spent on studies and reports without any productive results. Read more about the spendings here.

Key points of the plan:
• During the current fiscal year, 500 fire-fighting jobs in the aviation program, including the famed smoke-jumpers, will be examined for outplacement to interested contractors;

• In FY 2007, approximately half of the agency's law enforcement agents and rangers (600 positions), the jobs of all of its geologists (500 jobs) and 1,100 biologists who prepare environmental studies on the impacts of timber sales, oil and gas leasing and other actions on national forest lands may be put out to bid;

• In FY 2008, the agency's entire network of scientists and other researchers (2,000 slots) and 3,000 foresters and range conservation staff positions will be reviewed for outsourcing potential.

Outsourcing not hampering job prospects

According to a new study conducted by the Association for Computing Machinery (ACM), there are more jobs available in the US IT industry than it was during the boom period and despite the hullabaloo of outsourcing.

The body through its research has found out that though the job loss due to outsourcing is close to two to three percent, there is a much higher level of job creation. The body has also predicted that in US IT jobs will be the fastest growing occupations in the US over the next decade.

The report said:

Current data and economic theory suggest that despite offshoring, career opportunities in IT will remain strong in the countries where they have been strong in the past even as they grow in the countries that are targets of offshoring.

Students of IT and workers in the industry looking for long term relationship in the industry would be given strong foundation education and will also help them in updating their skills et al reports silicon.com

Outsourcing needs to grow

In a full blown interview given to Financial Express, Shiva Nadar, the chief of HCL, a company `Forbes’ describes as India’s largest infotech conglomerate has said that outsourcing deals has to grow out of software pieces and get into complete outsourcing.

He states that though few companies have managed to move away from discrete outsourcing to complete outsourcing, it isn’t picking up as it ought to be.

Companies’ intending to bag a complete deal of outsourcing needs to have a very strong infrastructure in place. Strong pricing methodology, device based support, practice on application optimization and finally development and maintenance. 

About HCL
HCL is one of the leading global Technology and IT enterprises with annual revenues of US$3.0 billion. The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India.

Read the complete interview here.

X-ray results to be available in 30 minutes – thanks to outsourcing

According to a new outsourcing deal struck between the Singaporean government and an Indian outsourcing firm, x ray results will be provided within 30 minutes. The deal will also save costs and benefit patients, doctors.

Under the National Healthcare Group's (NHG's) agreement with India's Teleradiology Solutions, a polyclinic has been sending about 700 X-rays a month to Bangalore.

Trained people at Teleradiology Solutions will analyse each report, diagnose the same and send them back within 30 minutes so that patients can receive their reports the same day itself. Normally, a person has to wait minimum for two weeks to get his report.

Another reason that these are works coming to India is because of the detailing provided in each report reports Hindustan Times.

Sai Winnie Soon, a senior family physician on outsourcing work to India:

The Indian reports are quite detailed. This is very helpful to patients who want to know more.

Vanco seals outsourcing deals with Euromaster and Total

The three-year outsourcing deal between tyre company Euromaster and Vanco, the largest single deal for Vanco worth £19.6 million, will result in the management of Euromaster's telecom services by Vanco. This deal comes soon after Vanco's agreement with oil and gas company Total to provide an internet VPN connecting sites across five continents. Silicon.com reports:

Allen Timpany, CEO and founder of Vanco, said the high-profile contract wins show that the VNO model - which involves effectively reselling network capacity at the lowest price by passing traffic around different carriers - is putting pressure on asset-heavy telcos such as BT.

AMC report: Offshoring computing jobs not a real threat to US economy and job situation

There has been a near-panic situation because of the outsourcing of computing positions from the US. However, according to a study published in the New York Times, this fear is largely unfounded.

The study, conducted by the Association for Computing Machinery (ACM), has shown that the forecast regarding job losses because of the movement of computing work outside the US is baseless. While only about 2-3 percent of jobs are likely to move overseas, the number of new jobs created far exceeds this figure. In fact, IT hiring is at a higher pitch than during the dotcom boom in the 1990s. Moshe Y Vardi, co-chair of the study group and Rice University computer scientist, believes that there is more competition, but IT jobs are not dwindling in the US.

The AMC study, titled "Globalization and Offshoring of Software", details the various factors operating in this arena, such as the economics of offshoring computing jobs, the logic of offshoring from the national and company perspectives, the globalization of research, the risks and exposures in offshoring, the lessons leaned from offshoring, and the political forces that operate behind offshoring.

StarTrek trekking heights

StarTek, Inc provider of Business Process Optimization services for outsourced customer interactions and listed on the New York Stock Exchange has been chosen by WildBlue Communications to provide customer care to subscribers of high-speed satellite internet service across rural America.

WildBlue Communications, Inc. established to provide broadband access to consumers and small offices in rural areas and small cities today has a large customer base in rural America. StarTrek will have the challenge to provide world class customer service to a growing customer base.

The three-year contract leverages StarTek's leadership position in providing integrated customer care services, as well as builds momentum for StarTek to gain market share in industries such as media/entertainment, financial services and healthcare.

StarTrek is supposed to provide WildBlue with:

• VoIP connectivity, development/training services, quality assurance management.
• Customer care functions for sale, service and technical support
• Technology deployment of computer telephony integration (CTI), interactive voice response (IVR) and customer relationship management (CRM).

David Leonard, WildBlue Communications' chief executive officer says on the tie-up:

With an estimated 10-15 million homes and small offices that are not wired for terrestrial (DSL or cable modem) service, WildBlue and StarTek will work seamlessly to connect rural America, further building WildBlue's rural market segment sales channel. StarTek's vision, capabilities and strategy will enable us to meet our business goals.

RBI’s plan to outsource hits a roadblock

Reserve Bank of India’s (RBI) plans to outsource some of its retail functions to a few corporate entities hit sentry post when the Communist Party of India (CPI) raised voices against the idea. The party has said that the matter will be taken up in Parliament.

Earlier, party spokespersons disseminated documents containing detailed information the works that RBI intends to outsource. The document allows commercial banks and regional rural banks to use the services of NGOs, micro-finance institutions and self-help groups, among others.

According to the paper, the works that could be outsourced are: recovering of principal and collection of interest, identification of borrowers, post-sanction monitoring, processing and submission of loan applications et al.

The CPI has taken objection to such a decision by the RBI because party workers believe that such a move would reduction of bank’s manpower and impairment of profits. CPI leader Gurudas Dasgupta has even said this is careful planning towards privatization of retail banking.

Business Standard reports.

One more Indian BPO in the Top 100 list

More good news hits Indian shores. Knoah Solutions, a leading offshore outsourcing company with multiple facilities in Hyderabad, India has been named the one of the Rising Stars in the Global Outsourcing 100 list by the International Association of Outsourcing Professionals (IAOP).

Knoah Solutions is an ISO 9001:2000 certified company founded in the year 2001. The company offers offer world class support for voice, e-mail, and chat communications, as well as high quality, low cost offshore business process outsourcing (BPO). 

About IAOP
The International Association of Outsourcing Professionals (IAOP) was formed in early-2005 by a consortium of leading companies involved in outsourcing as customers, providers, and advisors. Today, its global membership encompasses almost 200 organizations from around the world representing almost every industry type and functional activity. In total, more than 37,000 individuals working in the field of outsourcing are members or subscribers.

Ralph Barletta, Knoah Solutions' vice president of operations on the inclusion of Knoah in the Top 100 list:

Knoah Solutions is extremely proud to be included in The Global Outsourcing 100. IAOP's recognition of Knoah as a Rising Star serves as powerful validation of our growing role as an industry leader. Knoah is excited to be receiving global recognition for our world-class, multi-channel service delivery, commitment to quality, and client satisfaction.

Onshore vs. Offshore Competition

Competition between offshore team and onshore team can either be good or bad based on how you manage it. Hence it is important to recognize it and plan accordingly. But first let’s take a look at the how the competitive spirit plays out at various stages of offshore engagement. Please note that this discussion applies equally well to captive offshore team as well as offshore outsourced team.

The relationship between onsite and offsite team evolves during the life cycle of the engagement. During the initial planning phase of the engagement it is very important for the onsite team to work closely with the management and personnel of the offshore team to produce a plan that is workable and provides a good chance at making the offshore effort succeed. One of the leading causes of failure in offshore outsourcing engagements are problems relating to the extent and quality of the client-vendor planning sessions prior to commencing the engagement. Often, there is mistrust amongst the participants at this stage. And this results in the two parties not forming an effective team and fight on misperceptions and missed expectations. This in turn leads to the significant issue of maintaining the support of the internal team during offshore outsourcing engagement. It is a fact that offshore strategies are difficult and will require onsite employees to be active participants willing to help address issues as the management implements the offshore strategy. And this leads to a sense of unfair competition on non-level playing fields for the two teams.

In all offshoring initiatives, there are varying degrees of competition between the onshore and offshore teams. The onshore team will try to prove they are still needed and the offshore team will posture for greater responsibilities. It is for the enterprise management to first recognize that this is an issue and not to deny it. Once this happens it will allow the management to take an active approach in mitigating this problem. Otherwise management will have a dysfunctional global team incapable of delivering any product. Instead, the team, will engage in squabbling and sweating the small stuff.

On the other hand, this competitive spirit can also be harnessed to produce great results from both the teams. The management can get more productivity along with higher morale levels. The secret to this is to separate the tasks within the teams clearly in such a fashion as to reduce overlap of responsibilities and functional areas between the two teams. As a rule of thumb, management should be the one pushing for greater clarity throughout the entire engagement and afterwards and not wait for the offshore team to ask for management to step up.

By shankar@webkiran.com