Outsourcing Times

Vantage Point Consulting makes a foray into the U.S. outsourcing market

Vantage Point, an associate of HeiTech Padu Bhd and a certified SAP Services Partner, already has a long list of clients including Telekom Malaysia, Celcom, TMNet, PNB, Mimos, Jaring, Putrajaya Corp, Takaful Malaysia and Kota Kinabalu City Hall.

However, the company has tied up with U.S.-based EA CAP Inc to try and make the most of outsourcing opportunities in the U.S. Malaysian National News Agency Bernama.com reports:

Abdul Rahim [Vantage Point chief executive officer] said that as EA CAP was strategically located in the Western part of the U.S, Vantage Point would be able to penetrate the American business community as a whole.

Sustainability Issues in the Philippines BPO Industry

Experts are still not convinced over the long-term viability of the BPO industry. According to a recent study conducted by the Philippine Institute for Development Studies, the sustainability of this outsource industry is in doubt. Intermittent threats to physical security still continue to discourage BPO investors.

Industry experts in Philippines have pointed out to the country's high electricity rates that could deter the BPO companies from carrying out their operations. These BPO companies are mostly dependent on uninterrupted power supply for their computers, servers and other network equipments. As most of the BPO companies operate on twenty-four hours a day and seven days a week, it might be a concern for them. INQ7.net reports:

BPO encompasses several sub-sectors including contact centers, medical and legal transcription, animation, managed services and software development.

Samsung plans to invest $18.5 billion on outsourcing

Samsung has plans to expand its outsourcing to mainland China in a bid to take advantage of the opportunities that the region provides for companies. Samsung has budgeted $18.5  billion for outsourcing to China to reap the benefits of reduction in production costs. ChinaTechNews.com reports:

In order to enlarge its outsourcing on the Chinese mainland, Samsung has moved its international outsourcing center from Hong Kong to Shanghai and renamed it the China International Outsourcing Center.

Textiles Outsourced from India

Orient Craft will be responsible for supplying textile products worth between $1 and 1.5 million in its role as exclusive supplier for the Japanese buying house Sumukin Bussan Corporation (SBC). The exporter from India has signed an outsourcing agreement with SBC, which is a buying subsidiary of Kashiama, Japan, which licenses famous brands like Calvin Klein, DKNY, and Ralph Lauren.

Auto Manufacturers Outsource Too

Your car may have rolled off the assembly lines in Denver or Germany, but its safety systems, Bluetooth applications, headlamp infrared vision, and remote diagnostics services are just a few applications that are being developed in India. Yes, automobile manufacturers are among the latest to have jumped into the outsourcing fray. Indian organizations such as Wipro Technologies, Satyam Computer Systems, and Genpact are a few of those who take care of finance, accounts, payable analytics, supply chain management, and procurement tasks for auto manufacturers all over the world.

Philippines' English Lapse

Amidst all the talk of the Philippines catching up to India as the favorite outsourcing destination, there's a survey that reveals that English proficiency is on the decline in the country. A poll conducted by Social Weather Stations found that only 32 percent of the respondents said they spoke English, a significant drop from the 54 percent in 2000 and the 56 percent in 1993. While 65 percent said they understood the language, 14 percent admitted they were ignorant of even the basics of the language. The number of those who thought in English dropped to27 percent from 44 percent in 2000 and 42 percent in 1993. The survey, which was sponsored by the "Promoting English Proficiency Project", a program introduced by the American Chamber of Commerce of the Philippines and the Makati Business Club, polled 1,200 participants with a margin of error of 3 percent.

China Looks to India For Help

China is looking to India for guidance in getting a share of the software outsourcing pie. The country with the world's largest population already has all its fingers deep in the hardware outsourcing market, but is hoping to cash in on the software boom as well. The president of the India-China Software Association is banking on the China-India Friendship and Relationship Year to enhance cooperation between the two countries in the IT outsourcing industry. China is hoping to get a head start with the establishment of the Sino-India Software Research, Education and Training Center in the country. Only time will tell how much success this venture will bring the Chinese.

Freeborders to organize outsourcing seminar in New York

Freeborders will host "Outsourcing Strategies in China" seminar in New York on April 25th, 2006. The seminar will be a platform which will bring together leading analysts speaking about outsourcing with a focus on China.

The single day event will explore the advantages of outsourcing to China as opposed to India. The attendees will be given a comprehensive view through presentations and discussions as to how organizations can benefit from the huge talent pool in China. Freeborders provides industry expertise and is a leading provider of technology solutions. The San Francisco headquartered Freeborders has made a name for itself in the outsourcing arena through high quality services meeting global standards. TMCnet reports:

The event, entitled 'Outsourcing Strategies in China: Perceptions, Realities, and Best Practices', brings  together leading outsourcing analysts and practitioners to explore why North American and European companies are looking to China for IT outsourcing.

Phillipines grabs a foothold in the outsourcing pie

A study sponsored by the trade department’s Board of Investments and the industry groups Business Process Association of the Philippines, and the Commission on Information, Communication and Technology estimated outsourcing revenues taking a quantum jump with 52 per cent growth in 2006. The study further projected that upto 1.2 million people would be employed in the sector showing a staggering growth from the 2,33,000 people as of now. Daily News and Analysis India reports:

While call centres are now at the forefront, other big business process outsourcing firms are expanding their operations beyond call centres in the English-speaking Southeast Asian country.

Philippines Edging Out India?

The Philippines is catching up with India as a favorite outsourcing destination due to performance issues and low cost solutions. But increasing pay packets in India are not the only reasons cited for shifting favor to the Philippines. Global corporations say that the Filipinos have a better customer service mindset and are more comfortable with Western culture, but the fact is that Indians are waking up to the hazards of working late night shifts, and are either demanding higher salaries or more perks as compensation or are quitting their jobs. Asia Pacific News reports:

This provides a window for the Philippines to prove itself as a worthy or even better option for companies looking to outsource operations offshore. This does not mean, however, that the Philippines has overtaken India and that the latter has somehow “gone bad,” according to Richard Mills, chairman of international management consulting firm Chalré Associates. “India proved to the world that offshore outsourcing was viable; the Philippines has a BPO opportunity today because of India.”