Managed services, software on demand (SoD), software as a service (SaaS), knowledge as a service (KaaS)… and many, many more. They all have something common: they are all about outsourcing intangible assets. What about outsourcing tangibles, as IT hardware for instance? Well, there is also quite a new concept on the market. It is called Bring your own PC to work Read more
Every cloud comes with a silver lining. With the BPO industry this has come in the form of an improvement in the employee turnout rate. Slowdown has finally arrested attrition in the once attrition-plagued industry. Read more
1. What is a business process? Read more
I’ve read with interest, President elect Barrack Obama’s comments on outsourcing. There is nothing new in those comments. The fear psychosis has been with us for decades. During industrialization, the dominant fear was that machines would replace humans. Post telecommunication-internet boom, the fear is that tech workers from developing economies like India and China will make white-collared American workers redundant.
Many of us go for offshore advertising to save time and money. If we have someone else doing the work for us, then we will have more time to focus on other aspects of our business. It also saves us money because we can get the job done at a cheaper rate than what we would have, if we had to do it in-house or within our country. However, there are some serious risks involved in outsourcing and these should be carefully considered when choosing an offshore outsource provider.
There is a growing interest in outsourcing among businesses to outsource their business processes, started as a cost saving technique but now business process outsourcing is considered as a strategic initiative for companies to stay competitive in the global market. As the size and complexity of the outsourcing project grows, companies need to mange multiple outsource vendors, success of BPO depends on coordination between different vendors located in different countries and time-zones Read more
IBM’s India strategy of concentrating in the outsourcing and BPO services from Indian companies is working well for them. Last month IBM and Bharati Airtel signed an outsource agreement in which IBM will provide customer service support to Airtel’s top-end customers. Recently Bharati outsourced all the IT support and services to IBM for its Sri Lanka operation. For the 2008 third quarter, IBM reported a 24 percent increase in revenue from its Indian operations. Like IBM, HP’s Indian subsidiary won outsource deals with Godrej, Bank of India, Britannia, etc. Similiary MNC software companies like Oracle, Microsoft, and SAP won major outsource deals with the Indian companies.
The offshore industry of India is plagued by different issues and we have discussed a lot of them in our previous discussions. The situation in not better yet and there is bleak chance that it will recover soon—a long-term potential and perspective is what industry experts are relying on. At the same time, legal process outsourcing (LPO) companies are hiring a good number of new professionals because of the demand of litigations services from the USA is on all-time high. It is calculated that by outsourcing their legal and litigation back-office work to Indian vendors, US companies can save about 70 per cent in costs, which is quite considerable and demands much analysis of the future of this industry.
The future of KPO in India is deemed as quite bright. Though presently, it is in its infantile state, the experts and companies already well-established in this process declare that India will awake to the rising demands of KPO in near future and would be able to supplement and stabilize the meltdown of global economy and its impact on outsourcing industry. Legal Process Outsourcing (LPO) is one striking part of this huge potential and we have already discussed in our previous discussion that legal outsourcing to India is on rise. The present situation of global financial crisis only helps this cause and India is going to benefit from it.
Indian IT companies reduced their hiring phase due to international financial crisis, but the pure Indian BPO Companies are planning to increase their hiring, hoping that they will get more business from US and other western companies.