Outsourcing Times

Banks "strike" out at outsourcing!

In an older post titled Outsourcing opposed by RBI employees in India, I had mentioned the strong reaction by RBI employees against outsourcing. This fire of opposition is now spreading across almost all public sector banks in India.

On July 28, all public sector banks—with the exception of the State Bank of India—went on a flash strike, drawing banking services to a screeching halt across the country. But the buck didn't stop there. The country's politicians painted an even more sinister picture of outsourcing.

Take the statement of the Communist Party of India, which looks at outsourcing as a threat to the political stability of the country. In the midst of this opposition, the government attempted to diffuse the situation with a statement that outsourcing in the RBI was only limited to "non-core activities.”

However, as The Hindu reports, the left parties refused to bite on this statement. While the political tussle goes on, we wait and watch which way outsourcing is going to go in the Indian banking sector.

Gaming in outsourcing: No longer a child's play

Gaming in outsourcing is serious business. A few years back, the trend to outsource production in the gaming industry had caught up like a whirlwind, and I have drawn attention to the phenomenon in an earlier post. As in so many industries, India is emerging as a leading destination for outsourcing in gaming as well.

But what do outsourcers say on the success—or lack of success—of outsourcing gaming requirements? The recent Amritt Venture Report has specific answers. Out of 317 gaming professionals from the U.S who participated in the survey, 58% believe that outsourcing in the gaming industry is played on a rough turf; the process is not as smooth as they expected in the beginning.

Quite a few respondents say that they are disappointed with the quality and delivery schedule churned out by the vendors. Some respondents had to turn to new vendors, while others had to opt for a second vendor. These reactions notwithstanding, 94% of the respondents are committed to tread the outsourcing path; according to them, it is a rough, but must-traverse path.

Game Daily has more on the fiscal benefits achieved by gaming companies through the outsourcing model.

It takes two to tango: Wipro and Motorola in joint telecom venture

When two leading and highly successful companies form a common front to offer a service, it makes you stop and ponder, However, you must keep in mind that every company has its business focus and strongpoints, and when the strongpoints of two companies are complementary to each other, there lies a potential team-up of resources and expertise.

Wipro has excelled in delivering managed services, while Motorola has its expertise in mobility. The new venture, called WMNetServ, is a strategic move to combine their forces and provide viable telecom services to public and private network customers. Hindustan Times reports:

The joint venture will host a global network operation centre platform in India to integrate seamlessly with Motorola's network operating centers in North America and Europe to provide 24/7 network monitoring capabilities to customers.

Hard times, outsourcing times: Can outsourcing bail out San Diego?

A decade back, authorities in the county of San Diego were faced with a financial crisis, and saw privatization as a way out. But it obviously hasn't worked, because San Diego is in an even worse financial crisis than before. The resources are drying up, and "job hunt" is the keyword among its employees.

The Mayor is talking about opting for the outsourcing model to save up to $10 million per annum, but the picture is totally blurred about the specifics: what is going to be outsourced? According to Mayor Jerry Sanders:

We've not looked at any one area. Right now, we're more interested in getting the ballot proposition passed. . . . It's our goal to make sure each function we have in this city is as effective and streamlined as it could possibly be.

It is a guessing game right now, but whatever City Hall decides ultimately, it has to be substantial. The memory of the failure of outsourcing street repairs in San Diego is still fresh in the minds of the people, and the Mayor will have to spell out the areas clearly in order to ensure a positive response this time round.

BPO-focused Indian firm debuts at the NYSE

If you are keen to invest in an out-and-out BPO company that handles the entire gamut of business functions, the opportunity is going to come knocking later this week. India-based WNS Holdings is slated to go public soon at the New York Stock Exchange.

The timings couldn't have been more in sync with the times; market research firm International Data Corporation has predicted that the global outsourcing market will grow to $641 billion by 2009. Other major Indian players in the BPO industry have recorded outstanding success rates—I have already recorded the growth rate of Infosys in an older post—WNS becomes the first solely BPO-based firm to go public. CNN Money reports:

While WNS serves a diverse group of clients—including Virgin Atlantic Airways, insurer Marsh and British grocer Tesco—its five largest clients accounted for a staggering 41 percent of its revenue in the most recent fiscal year.

India: The new-age design board for global players

There was a time when Indians looked to the West, more particularly Paris, for fashion and design. However, India is now riding on the outsourcing wave, and this has more or less reversed the trend. Now, global brands are turning to Indian designers to sketch for their latest product lines.

In fact, global players such as Whirlpool, GE, LG, Philips, and Bosch have already initiated steps to set up design centers in India. Some others, like Reckitt Benckiser, are offshoring their design work to Indian designers. In its India Business report, The Times of India quotes Anuj Prasad, chief designer at Delhi-based Desmania Design:

Outsourcing design jobs to India started in a small way, but is going to be big. This is the latest trend in the world of manufacturing. A product is today conceived in the US, designed in India, manufactured in China and sold in markets across the globe.

Indian designers are now part of the global phenomenon, and are set to cater to diverse fields, including 3D modeling and plant engineering in aerospace, automotive, and industrial design for clients in Europe and America.

China to Promote Outsourcing Business

China has become one of the major outsourcing destinations for the companies that are doing off shore business. Although China is still lagging behind India on outsourcing, it has made significant progress over the past few years. In order to give a boost to its outsourcing industry, the Chinese government has decided to prioritize service outsourcing in the coming years. The government will establish specific policies to encourage service outsourcing in China.

For long, the Chinese government has been seen opposed to outsourcing. However, the situation has changed to a great extent. The government will also provide enterprises with financial support such as low-interest loans and insurance of credit for large-scale offshore projects. The government has also decided to persuade 100 multinational corporations to transfer their outsourcing businesses to China. If everything goes as per the schedule, China will definitely become a major hub for outsourcing activities.

Official Certification for Outsourcing Experts

Quality and security issues have forced companies to hire skilled and experienced professionals who can make significant contribution to their outsourcing business. The International Association of Outsourcing Professionals says that companies will look to establish relationship with professionals who have earned official certification on outsourcing. This may look strange, but true. Ask yourself, won't you feel confident about your company's outsourcing relationship if they were overseen by some outsourcing experts with professional certification? Certainly, your answer would be 'YES'.

The International Association of Outsourcing Professionals (IAOP) has the mission of building outsourcing as a profession and an industry. It has recently graduated its first group of certified outsourcing professionals. The IAOP's move is seen as revolutionary for the outsourcing industry. More organizations are expected to follow suit. However, it is yet to be seen whether the certified outsourcing professionals really provide an added advantage to the outsourcing business or not.

Is the Future of BPO Industry Secure in India?

The issue seems to be controversial, yet sensitive. Answer to this question will determine the fate of millions of youngsters in India who opt call center jobs as their career. The arrest of Nadeem Kashmiri in the HSBC call center fraud has raised a big question mark on the reliability and security of Indian BPO industry. Sadly, this is not the single incident of security breach in call centers. In the past couple of years, several cases of data fraud have been reported in call center facilities in Pune, Mumbai, Gurgaon and Bangalore.

We admit or not, such incidents are bound to affect the booming BPO industry in India. Experts believe that cases of security breach in India are minimal as compared to that abroad. However, here the question is why should not we provide hundred percent secure services to our foreign clients who heavily rely on us for the efficiency and effectiveness of their processes?

Outsourcing in Gaming Industry

Gaming industry has been in the news for some time now. Although outsourcing has become a buzzword in the industry, the outsourcing of gaming industry grabbed special attention of the consumers worldwide. According to a report prepared by Amritt Venture, offshore outsourcing has witnessed a sharp increase in the gaming industry. However, inconsistency of the service providers forced the companies frequently change their vendors. Several companies have expressed disappointment over the results from outsourcing. It is difficult to say whether the gaming industry benefited from outsourcing or incurred losses. Only the concerned companies can reveal the truth.