Outsourcing Times

Qantas Workers may oppose outsourcing plans

Qantas is contemplating outsourcing while at the same time it's maintenance workers are deciding to go on strike to pursuade the management to relook at the outsourcing issue. If this action occurs, it will be a major setback for Qantas as it could leave some of it's aircraft out of action leading to inconveniences for it's passengers. ABC Online reports:

Earlier this month, Qantas made a commitment to keep its heavy maintenance work in Australia, by closing its repair base in Sydney and shifting the jobs to its base in Avalon near Melbourne.

Philippines is the Rising Star of Outsourcing

Philippines is taking advantage of it's strengths rather than looking at it's obvious economic problems to drive the outsourcing industry to greater heights. This 90 million nation is subject to a "not to be proud of" economic situation but it has a population where 95% speak English which is a natural advantage to grab a share of the US outsourcing market.

Further, the high literacy rate and a talented pool of IT professionals makes outsourcing one of the biggest earners for the nation. The cheap telecommunications infrastructure stands Philippines in good stead when it comes to playing a major role in the highly competitive outsourcing market. The Age Australia reports:

Outsourcing is another important earner for the Philippines. The US accounts for at least half the world's potential outsourcing and the Philippines, a former US colony, is well placed to benefit.

Large Pharma companies rely on outsourcing to reduce costs

Large pharmaceutical companies are facing tough times with rising research and development costs coupled with slowing sales. The outsourcing sector is gearing up to combat these tough times and it is expected that there will be increased dependence on outsourcing by the pharma companies for reduction in costs as well as help the companies to minimise development cycle duration. Genetic Engineering News reports:

Pharmaceutical spend on outsourcing faces double-digit growth for the next three to five years and yet, if outsourcing is to meet these challenges, new models of collaborative and cooperative working are needed now.

The Indian Outsourcing Story is growing bigger and bigger

India has garnered 44 per cent of the market share in the international Software Outsourcing for Software development and back office related jobs. India is witnessing huge momentum in its outsourcing story due to it's easy availability of highly skilled manpower along with the obvious advantage of English speaking IT professionals.

The costs associated in maintaining a certain lifestyle is also the added advantage India has over other developed nations. The Indian government is committed to the growth of IT and recognises the importance of this sector in the overall development plans which is furthering the cause for outsourcing to India. The benefits of outsourcing to India is being reaped by several organizations and has become an integral part in their corporate strategy. TransWorldNews reports:

Promotion of the IT by Government: Indian government is stable for IT; the policies, economy, GDP growth, taxation, power, telecom, industrial parks & special zones have been useful in improving the communication as well as infrastructure in Software Outsourcing solutions.

Convergys is making it a habit

Fortune Magazine gives Convergys due recognition as one of "America's Most Admired Companies" as decided by a survey comprising of 10,000 industry experts. The call center outsourcing company has been recognized for the sixth consecutive year which gives ample proof of it's role as a committed player in the outsourcing arena. TMCnet reports:

Convergys (News - Alert) was rated second overall nationally for the Diversified Outsourcing industry.

Capgemini is eying acquisitions

The non-voice BPO arena and the financial services sector are all set to witness a shake up as Capgemini Consulting India Pvt Ltd is already in talks with certain firms to acquire them. The company has extensive plans to take it's growth to a new level organically
as well as through acquisitions.

The news of such acquisitions will probably come sooner rather than later as the company sees huge growth opportunities in the Indian market. However, the company will face stiff competition in the battle for inorganic growth as other players like Atos Origin have similar sentiments when it comes to Indian firms in the IT sector. Calcutta Telepgraph India reports:

“Capgemini’s operations in France employs the highest number of people, which is 21,000, for the company. However, the growth there would be much lower than in India where plans are afoot to ramp up the workforce from 4,128 to 10,000 by the end of 2007. This shows how important India is in our scope of business.

U.S. looks at Outsourcing Security Procedures

The U.S. is considering options to outsource the security procedural work involved in the inbound transfer of cargo from foreign ports. The department is concentrating on the validation process for it's outsourcing plans which will mainly amount to on-site inspections of ships and cargo but it won't be easy as it has to consider several issues when it comes to third party outsourcing. World Peace Herald reports:

The program, which would give speedier entry to U.S. ports to ships and suppliers that meet the security standards, is now in the hands of 80 Homeland Security inspectors who have to plow through more than 10,000 applicants.

North America and Europe will be the stage for Outsourcing Forum

Alsbridge will initiate the Outsourcing Leadership Forum on April 19,2006 in Texas. The forum will focus on BPO trends for 2006 and more specifically on Finance and Accounting best practices. The Forums will provide a sound platform for knowledge sharing and at the same time develop a network of recognised experts in the field to interact and know key players in the industry.

The forums will take the outsourcing industry a notch higher as the platform will give rise to new ideas and practices for implementation to derive greater successes. Alsbridge, the outsourcing consulting firm will present real world case studies to drive home the benefits of outsourcing and make industry players more knowledgeable in their implementation of outsourcing strategies. PRWeb reports:

The April 19th event will provide attendees with comprehensive information on outsourcing from three different perspectives: outsourcing consultancy, global law firm, and BPO analyst group. Upcoming Outsourcing Leadership Forums will be held on May 19 in Dallas with Oracle, and May 23 in New York City with international law firm, Mayer Brown Rowe & Maw LLP.

Capgemini goes on an expansion spree in India

Capgemini, a leading outsourcing services company is increasing its staff strength by 2000 in 2006 and another 4000 by 2007 thereby expanding its total headcount to 10,000 from its current 4000. It has recently initiated a 500 seat center in Kolkata which will address BPO and web based software development. NewKerala reports:

Capgemini provides business and IT solutions to companies in 30 countries across the world. It reported global revenues of 6,954 million Euros in 2005 and employs around 61,000 people worldwide.

Vishesh Infotecnics Initiates Knowledge Process Outsourcing Operations

Vishesh Infotecnics Ltd, IT products and solutions provider estimates it's initial KPO order to rake in $20 million during the first year itself. EchoStar Communications Corporation will be shelling out the money to receive the services. Echostar is a US based Fortune 500 company is a giant in it's field with revenues in excess of $7 and has been in existence for 24 years.

Vishesh is planning to enhance its capacity after witnessing initial success in the KPO outsourcing sector. It is already looking at other clients and negotiations are underway. The company is aiming big and has extensive plans to grow organically as well as in-organically through the acquisition route. It is also planning to offer premium services with a higher technical know-how which will have higher margins. DQ Channels India reports:

The KPO operations of Visesh Infotecnics commenced recently under its new business division for outsourcing, 'V-Connect'. Keeping inview the initial success of its marketing efforts, the company is planning a fast ramp-up of operations, which could touch over 2,000 seats capacity by March 2007.