|
India
seen as hot spot for F&A outsourcing
India, along with
Sri Lanka,
China and the UK, is emerging as a hotspot
for finance and accounting outsourcing (FAO) activities, according to a
latest report by investment and advisory firm, Tholons. 'Mumbai, Delhi, Philippines, Sri Lanka, Central Europe, Latin America,
UK, Singapore, Shanghai, and Toronto will be the preferred
destinations for FAO,' the report by Tholons
said.
India’s financial
hub Mumbai currently houses companies such as Morgan Stanley,
Lehman Brothers, WNS, Principal, Citibank and JP
Morgan.
Delhi is another alternative with the
largest scale of skilled workforce among key offshore destinations. Genpact, EXL Services, Fidelity
Investments, Xansa, and IBM
have centres there. Chennai
has historically been the financial and business hub of South India, and has the F&A operations of Accenture and TCS,” it
said.
The largest
providers in the FAO market include Accenture, Capgemini, WNS,
IBM, Genpact,
ACS, Infosys, Xansa and EXL Services. Tholons expects some larger
companies to lose a percentage of their market share as SMEs jump into the
bandwagon, going forward.
‘When evaluating a city to outsource FAO work, companies need to
consider various factors, with security and privacy being amongst the most
important. Specifically, the
companies need to evaluate the cities for labour cost arbitrage,
compliance environment, data security environment, scalable talent pool,
cultural compatibility, existing finance and accounting (F&A) process
capabilities and proximity to financial centres,' Tholons chairman &
CEO Avinash Vashistha
said.
Tholons said
that while there were growing concerns that labour arbitrage may become
minimal over the next few years; FAO would remain significant for the next
15 years. While offshoring of
common transactional processes generally yields a 20-25% cost reduction in
the overall F&A processes, offshoring higher-end key processes could
reduce costs by 35-45%. |
|
US federal IT
outsourcing market set to grow
A study by
Input has found that the federal IT outsourcing sector will enjoy compound
annual growth of 5.8% until 2011, bringing spending in the sector up from
$13.3bn in 2006 to $17.7bn in 2011.
It is thought that with many members of the US government's IT
workforce approaching retirement age and with the staff coming through
unlikely to be able to deal with the increasingly sophisticated
technology, specialist IT firms will be in greater
demand.
In-house
skills in high demand
Compliance and competition
are driving huge IT changes in the financial sector. But new
technology will not necessarily mean new technical IT jobs, at least not
in-house.
Peter Redshaw, research director at analyst
firm Gartner, says most financial-sector IT will eventually be
outsourced.
SME IT outsourcing
set to increase
Research by Forrester
suggests that the integration of IT support in to SMEs will become a boom
area for IT outsourcers over the next five years, Forrester claims that
companies offering IT support services will have to adapt their business
models to meet the expected influx of SMEs requiring outsourcing
services.
Security, storage and
disaster recovery are top priorities for IT managed services customers:
CompTIA
One-third of the 322
organizations surveyed (all current users of managed services) said that
they plan to increase their spending on managed security services in
2007. 33% also said that plan
to increase spending on data storage, backup and disaster recovery
services.
Medical
transcription sector rakes in $75M in revenues
The medical transcription
(MT) sector is expected to grow faster than the call centre industry after
generating an estimated $75M in revenues in 2006. India gets nearly 80% of the offshore MT
market while the Philippines get about 10%. The US is the largest market for
local MT companies and the high demand for offshore services is driven by the passage of the Health Insurance
Portability and Accountability Act (HIPAA), a law that requires medical
institutions to archive records in digital
format.
Westpac
outsourcing core banking system redevelopment
Westpac is entering year
seven of a 10-year outsourcing contract with IBM.
The contract was reconfigured in 2005 to reflect technology and
pricing changes. ...
GlaxoSmithKline
hands out $171M BPO contract
GlaxoSmithKline
(GSK) has decided to
consolidate all its human resources business process outsourcing (BPO)
services under the one umbrella in a contract valued at $171M
(€131M).
MetLife
Expected to Offshore US Jobs to India
MetLife, which has 30,000
employees in the United
States, already has a presence in India, where it sells policies
and has a small number of employees.
Some of the company's U.S. processing functions will be absorbed by the 350 jobs that will be added at
its new global operations support centre that is scheduled to begin
operating this year in India.
United
Bank outsources check processing
Fiserv, the
nation's largest third-party check processor, announced today that United
Bank, a $4bn institution in Charleston, W.Va., chose Fiserv for outsourced check
processing to complement its longstanding data processing
relationship.
Agricultural Bank of
China appoints ABN Amro-Mellon as custodian ...
ABN AMRO Mellon, a Dutch institutional asset
management services provider, has been selected
by Agriculture Bank of China (ABC) to provide global custody and securities
lending services for its assets spread across the
globe.
InterContinental
Hotels Group picks Baguio for call centre
operations
InterContinental Hotels
Group Plc of United
Kingdom is putting up a call centre in Camp John Hay
in Baguio City, the Philippines to handle the
reservations for its worldwide
operations. |
|
India
becoming a world-class manufacturer: US study
Highlights: •
India’s infrastructure
agenda — India is in the midst of the
most ambitious infrastructure upgrade in its history. Better roads, ports, power and airports could easily nudge the nation’s
annual GDP growth rate up to
a sustainable 8 per cent. • A
tale of two sectors — The failure of power sector reforms and the success
of telecom underscore the importance of foreign investment and competition
in India’s infrastructure
upgrade. • Beyond the back
office — India’s outsourcing providers
are moving up the value chain toward knowledge process outsourcing (KPO)
services, where specialised expertise, judgment
and discretion are the tools.
• Emerging stars — The story of Bharat Forge’s remarkable rise
illustrates the hurdles that Indian industry must overcome. Today, the company dominates
India’s $615M market for auto
parts.
RP
corners 1% global outsourcing market share in
2006
Philippines' overall revenue in
the outsourced ICT services is $2.54bn in 2006, higher by 41% than in 2005
which saw $1.8bn in revenues.
94% of the Philippines' business is
combined business process outsourcing and call centre revenues while
another five percent is from ICT services. In fact, China, which is a latecomer in the offshore
outsourcing business, has a higher market share percentage than the
Philippines with
3.56%.
India eyes bigger
slice of aerospace outsourcing
Indian
software firms say they are well placed to grab a
bigger share of the aerospace market as airplane makers and defence
companies look to control costs by outsourcing design and management
systems. Global spending on
engineering services was $750bn in 2004, with aerospace accounting for 8%,
and could rise to $1.1 trillion by 2020, according to NASSCOM. Analysts say Indian's 2005 offset policy, which
requires foreign aerospace firms to spend a percentage of the value of any
Indian orders in India, such as in establishing
a training centre or buying services and supplies from local companies,
was also likely to boost outsourcing.
Offshore Recruitment
Process outsourcing will underpin growth in
2007
Staffing Services
PLC has today launched a
trial which will see its InterSelect business ‘offshore’ part of its
talent management to OS2i in Pune, India. Initially InterSelect will be
offshoring 25% of its talent management function. Subject to successful results, the
firm will seek to outsource 100% of its talent function to OS2i to include
candidate searching, name gathering, vacancy management, and non core
recruitment administration activities.
TCS wins CFETS
trading systems contract; opens Chinese offshore
centre
India's
Tata Consultancy Services (TCS) has won a multi-million dollar deal to
implement a currency trading system for China Foreign Exchange Trade
System (CFETS), the interbank trading and foreign exchange division of the
country's central bank.
Vertex
to provide technology platform for Rooftop
Mortgages
Vertex financial services
has announced that it has agreed to provide outsourcing technology for
Rooftop Mortgages, the specialist mortgage lender that is majority owned
by global investment bank Bear Stearns.
State Street to
service Putnam assets
State Street Corp., a
provider of financial services to institutional investors, said that it is
going to provide servicing to Putnam Investments and the Putnam Funds for
$169bn in assets. State
Street will provide custody, fund accounting, and investment manager
operations outsourcing services in support of more than 450 retail,
institutional, trust, and offshore
portfolios.
SunGard buys Aceva
Technologies
SunGard today announced
that it has acquired California-based, Aceva Technologies, a provider of
receivables management software
solutions |
