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Outsourcing marriage counselors'
need of the hour: Niche vendors rising in
India
A recent Computacenter sponsored
survey questioned 100 CIOs from banking, pharmaceutical,
manufacturing and the public sectors, found three
quarters of CIOs identified difficulty in managing
relationships with partners as their biggest outsourcing
headache. Despite the relationship headaches, the survey
found that in the next two years, nine out of 10 CIOs
plan to maintain or increase spending on outsourcing,
with their reasons for choosing outsourcing including a
desire to reduce operational costs (69 per cent), focus
on core business (59 per cent) and gain access to
specialist IT skills (54 per cent).
According to another independent
study by Accenture, China and India are the two most
preferred offshore destinations with the near-shore
locations forming a significant second tier. Although
rated less than China in terms of cost, quality and
delivery reliability, the study portrays India as a
valued supply market for services and IT. The major
reasons cited for choosing India include established
quality preference, good exposure of MNCs, and
superiority in skill-intensive segments. According to
Accenture's estimates, 50 percent of the companies,
covered under the survey, that currently do not
outsource their work to low cost countries will begin
doing so in the next two to three years.
So far, tier-one Indian IT vendors
have been the primary beneficiaries of this massive
growth. The tier-one category comprises large vendors
with multiple service lines in multiple verticals, along
with offices and delivery capabilities in countries
other than India and the U.S. Some of these vendors
include HCL, Infosys, Satyam, TCS, Wipro, and
Cognizant
'But these vendors may not be
appropriate for all classes of service and all classes
of customers. Fortunately, the Indian IT services market
is maturing, fragmenting, and diversifying - resulting
in the emergence of numerous, qualified specialist
players,' a report by Forrester Research
said.
While the earliest providers in the
Indian IT industry gained the most from the off-shoring
boom, the maturity of smaller players and customers is
changing market dynamics. 'Emerging vendors can now more
legitimately offer services to North American and
Western European customers. For example, small vendors
such as Aztec Software, ITC Infotech and Persistent
Systems have developed more mature customer management
capabilities.
Forrestor report listed out
Flextronics Software Systems, i-flex Solutions, Kanbay,
L&T Infotech, Mahindra British Telecom and Polaris
Software Labs as vertical specialists; and Aditi
Technologies, Aztec Software, Hexaware Technologies,
Ness Technologies, Persistent Systems and Symphony
Services as research and development and support
specialists. The report also listed Sapient,
ThoughtWorks and Valtech as agile/iterative development
specialists.
Hence, it is those organizations,
which constantly reviews its suppliers and develop
skills to manage these multiple culturally diverse
relationships, who will get the most out of outsourcing
/offshoring. |
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BPOs
profit from US online ads
The growth of
online advertising in the United States is opening up
new avenues for Indian business process outsourcing
companies.As a number of US companies prefer outsourcing
all back-end tracking to Indian subsidiaries opened
specifically for this purpose.
Intuit
setting up development center in
Bangalore
The Mountain View, Calif.-based
financial software vendor Intuit Inc. is setting up a
product development center in Bangalore,
India
Network
Rail signs 5-year 48 million IT outsourcing
deal
The agreement is an addition to the
existing contract between Atos Origin and Network Rail,
under which, Atos Origin, as the Information Technology
Partner, is supporting Network Rail to develop its
Information Management function in line with its
business plan.
Oracle
buys Citigroup’s 41% stake in banking software company
i-flex Solutions
Oracle already has a solid
footing in banking and financial services via sales of
its flagship database software plus non-banking-related
applications, and now with this acquistion of Iflex, it
hopes to leverage that position into sales of
applications -- and services -- as banks move to replace
aging data systems, some 30 or 40 years old. The upgrade
bill could total some $70 billion, making it one of
technology's richest prizes.
Next
outsourcing arm signs Indian call centre
deal
Ventura, the customer contact services
subsidiary of UK retailer Next, has signed a three-year,
£7m deal with Cable & Wireless (C&W) to provide
a fully managed call centre facility in India.
Metaldyne,Awarded
10-Year IT Contract to Perot
systems
Metaldyne, a leading global designer
and supplier of automotive industry components, has
selected the company to provide network management,
service desk and data center operations as part of a
10-year Information Technology services contract.
Danka
Outsources HR and Payroll to Gevity
Danka
Business Systems PLC, an independent global provider of
office imaging systems and services has awarded a
contract to Gevity under which Gevity will be
responsible for all HR and Payroll operations. Gevity
will also manage Danka's US health, welfare and benefits
programs, and provide additional HR programs and
capabilities.
Call
center work at ATA goes to phillippines
ATA
Airlines' outsourcing of 450 jobs will result in some
call center work being sent to the Philippines and
possibly in the vacating of ATA's maintenance hangar at
Indianapolis International Airport. |
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SA,
India in call centre agreement
Global
outsourcing trend now demands that companies spread
their risk, which means they do not want all of their
outsourced support services in a single country. Many
European companies also require multi-language call
centre support and India can only provide English. The
agreement covers cooperation across areas such as the
sharing of information, publications and research
reports, joint surveys, sharing of contacts, the pursuit
of mutual business opportunities and the facilitation of
alliances with companies in each country.
India
ranks second in Brainbench
certification
According to Brainbench's 2005
Global Skills report, India is second to the US. Drawing
on the employment skills certifications of over 300,000
people from 179 countries, the report said that the US,
India, and Russian Federation have consistently been the
countries with the most Brainbench certifications. This
indicates that they may represent the largest pockets of
competent and available IT resources, the report said.
Xansa
and NHS Shared Business Services been awarded contract
of Hampshire and Isle of Wight Strategic Health
Authority
Xansa and NHS Shared Business
Services (NHS SBS), the first public/private sector
Joint Venture undertaken by the Department of Health,
are pleased to announce that NHS SBS will provide
finance, accounting and payroll services to
organisations within the Hampshire and Isle of Wight
Strategic Health Authority (SHA).
EDS
selects Cognizant as alliance member for its global
application delivery organization
Alliances
with best-in-class companies, robust enough to meet our
client demands, are an integral part of our growth
strategy,' said Mike Jordan, EDS chairman and CEO.
'Cognizant is a premier offshore application services
provider. An alliance with Cognizant will give us
additional speed and flexibility to meet growing client
demand, while making our cost base flexible.'
US
FI invests $5 mn in TWS
Business processing
outsourcing company TWS has received an investment of $5
milion for setting up a new centre by the end of the
year for focussing on the receivables management
vertical.
Summit
Corporate Services, Inc. Signs Contractual Agreement
with Bacterin International
Summit Corporate
Services, Inc. (SUMMIT), the nation's leader in
customized business and outsourcing solutions for the
medical industry, announced it has signed an agreement
to provide services for the Biologic Division of
Bacterin International Inc. (BACTERIN). The services
will include call center support, customer service,
inventory management, billing/collections, logistical
support, distribution, and records
maintenance.
Freeborders,
Provider of Technology Solutions and Outsourcing From
China, Opens New York Office
The company
provides technology solutions from its facility in China
to U.S. and European companies in three vertical
markets: retail/consumer goods, financial services and
software/technology. |
