Friday, December 01, 2006

Deloitte to Increase Indian Headcount

Deloitte Touch Thomatsu, a New York-based accounting services provider, has announced its plans to increase its Indian headcount from the present 7,500 to 12,000 professionals by 2010. According to Manoj Singh, CEO–APAC, Deloitte, the company is planning to invest about USD 50 million by 2010.

According to William G Parrett, CEO, Deloitte, the company has offices in about 13 locations across India and the company is investing in personnel, technology, and infrastructure sectors in the country and Asia Pacific region. The company provides various services, including audit, tax, consulting, and financial advisory services.

Tuesday, November 21, 2006

After the BPO and telecom consolidation, various small firms in the Knowledge Process Outsourcing (KPO) industry are expected to merge with each other by 2008. At present, the KPO industry is worth about USD 650 million, as compared to USD 400 million in 2005.

According to a Frost & Sullivan report, KPO is expected to be a USD 32.5 billion industry by 2014 and will employ about 4,00,000 professionals with a CAGR of about 63 percent. The industry employs about 10,000 professionals currently. The KPO industry provides services to various verticals such as financial services, retail, manufacturing, telecom, and healthcare services. In addition, the KPO industry is likely to have a shortage of skilled professionals in the next few years.
Westpac Drops Outsourcing Plans to India

The Australia-based Westpac Banking Corporation has dropped its decision to offshore about 300 administrative jobs to India from its Concord West-based transactions and unsecured lending operations center. The center processes dishonored checks, electronic payrolls, Internet banking, and deceased estates. According to a statement by Westpac, the offshoring proposal did not meet their financial and stakeholder criteria.

The bank also reported that offshoring would not save as much as estimated earlier. The outsourcing plan would have affected about one-third of the center’s 1,000 member staff. The Finance Sector Union of Australia had earlier stated that about 50,000 jobs of the industry’s 280,000 jobs could be offshored.

Friday, November 10, 2006

US HRO to reach USD 19 Billion

According to a report titled, 'Worldwide and US HR BPO 2006 Vendor Analysis: The Answer is in the Margin' by IDC, the HR BPO segment of US HR services will grow at a CAGR 16 percent to reach USD 18.9 billion by 2010.

It also reports that with the growth in the HR BPO segment, the obstacles for the new entrants in the market will also increase. However, the trend might change in the future with the entry of new Indian HR firms. The major reason for the growth of HR BPO services is that most companies, including the mid-sized companies, are aiming at global recognition. As a result, most of the firms are establishing their operations outside their headquarter country. Among the key findings, about 37 percent of the US HR services spend in 2004 was spent on HR BPO services and is expected to reach 46 percent by 2010.

via: GlobalOutsourcingNow

Sunday, October 29, 2006

Source: Nelson-Hall study

Wednesday, October 18, 2006

BPO Sector in 3Q ’06 on the Rise – NelsonHall

NelsonHall, a US-based BPO analyst firm, has reported growth in the BPO sector contracts. The level of BPO activities is more in Europe as compared to North America. Europe showed an increase of about 36 percent, while North America reported a decrease of 26 percent, in the first nine months of 2006.

The major reasons for this increase in the BPO market include the outsourcing of HR, F&A, and procurement services. The value of about 36 percent of BPO contracts depended on the types of the services provided by the company in the quarter ending September 2006, as compared to 24 percent in the corresponding year-ago period. The BPO contract value for the back-office services has increased by 36 percent, as compared to the decrease in the industry-specific services contract value by 28 percent by the end of September 2006.

The BPO contract value of outsourcing HR, F&A, and procurement services accounted for 40 percent in North America, as compared to 31 percent in Europe by the end of September 2006. The manufacturing and retail BPO contracts accounted for 27 percent by the end of September 2006, as compared to 13 percent in the corresponding year-ago period.

Source: GlobalOutsourcingNow

Monday, October 16, 2006

India And U.S.A.: Top Destination for R&D


Sunday, October 15, 2006

Top 100 Outsourcing Deal Value Down to $67.9Bn - IDC

More Globally-Scaled Deals, More Network and Desktop Outsourcing, and Reduced Combined Deal Value.

The tenth annual IDC study of the top 100 worldwide outsourcing deals reveals fundamental changes in the outsourcing marketplace, including an increase in deals with more global reach, an increase in the number of serious competitors, a dramatic rise in network and desktop outsourcing, and a reduction in combined deal value. These developments demonstrate increased competition and customer demand for greater provider capabilities, and create pressure for outsourcers to alter their business models in order to successfully compete and expand in the coming years.

The total contract value (TCV) of the 100 worldwide outsourcing deals decreased by 3.1% from $70.1 billion in 2004 to $67.9 billion in 2005. The study finds a reduction in the number of both megadeals and deals ranging from $500 million to less than $1 billion TCV. However, the number of deals with less than $250 million TCV has seen a dramatic increase from eight in 2004 to 23 in 2005. The study also finds that the number and value of business outsourcing deals declined in 2005, while the value and number of IT outsourcing deals increased. Within IT outsourcing, the share of network and desktop outsourcing deals climbed substantially from 14.6% of total IT outsourcing deal value in 2004 to 32.4% in 2005.

The study found that while six players captured 54% of the top 100 contract value in 2004, it took just five players to capture nearly the same amount (53.5%) in 2005, with IBM Global Services leading the way, followed by EDS, BT Group, CSC, and T-Systems.

Source: IDC Press Relase

Thursday, October 05, 2006

ICICI OneSource Launches New BPO Facility in Argentina

ICICI OneSource, an Indian outsourcing services provider, has announced the launch of a new BPO facility in Buenos Aires, Argentina. This is the fourth overseas delivery center for the company. Apart from the overseas centers, the company operates 10 delivery centers in India.

The company will initially use the center to provide back-office transaction processing services to one of its US-based telecom clients. It is expected to leverage the new center to add Spanish language capabilities to its services portfolio. The new center has a capacity to accommodate 400 employees, and is a part of the company’s strategy to capture a pie of the telecom outsourced services market, which it expects to grow at a CAGR of 10.7 percent in the next five years. At present, the telecom vertical contributes about 30 percent to the company’s revenues.

Source: GlobalOutsourcingNow

Tuesday, October 03, 2006

Watson Wyatt has won a GBP 1.2 billion mandate with the Whitbread Group. Watson will provide investment advisory services for a pension plan of the group.
According to a Capgemini survey at the IDC Midwest Conference, outsourcing results in a substantial return on investment. Around 85 percent of the respondents stated that they managed to save at least the expenses which they had incurred on outsourcing, with 26.4 percent reporting their savings quantum to be about twice the size of their investment on outsourcing. In terms of investments, around 60 percent of the respondents reported having spent up to USD 50 million on outsourcing, while 18 percent of the respondents reported having spent up to USD 100 million.

About 9 percent of the respondents had invested between USD 100 million and USD 200 million, while an equal percentage of respondents had invested more than USD 500 million. Cost reductions, increased productivity, along with opportunity to redeploy the resources for executing core functions were identified as the prime underlying drivers of outsourcing decisions.

About 94.8 percent of respondents stated that outsourcing helps in augmenting the shareholders' value. About 70 percent of respondents stated that the US is their preferred choice for outsourcing.

Monday, September 25, 2006

International Technology Alliance (ITA), has won a ten-year, USD 135.8 million contract to provide research services for the US Army Research Laboratory and the UK Ministry of Defence.
ITA will provide research and development services to investigate advanced technology for secure wireless and sensor networks. The alliance will work towards enhancing the effectiveness of military establishments by contributing to their capabilities pertaining to the collection, interpretation, and distribution of battlefield information among themselves.

Monday, September 18, 2006

According to a study by Boston Consulting Group (BCG), Multinational Pharmaceutical Companies (MPCs) are increasingly exploring India and China as they are seeking various offshoring options for their R&D function.
The upcoming trend is attributed to the improving regulatory and competitive environment in the two countries. Amongst the findings, almost all the top 20 MPCs have outsourced their chemistry work to China.
The report states that the MPCs wishing to establish successful offshore R&D operations in India and China should adopt an integrated strategy, as against the ad-hoc strategies which are currently being followed by some of the companies operating in the domain.
The offshoring strategy should be flexible enough to incorporate the changes in the R&D capabilities of the two countries.

Thursday, August 03, 2006

Genpact, a business services and technology solutions company will acquire Irvine-based MoneyLine Lending Services, a specialized provider of end-to-end mortgage origination and fulfillment services. Established in 1996, MoneyLine is a provider of outsourced mortgage services for more than 50 financial-institution clients. Terms of the deal, expected to close in August, were not disclosed.

Read the press release here

Thursday, July 06, 2006

Lessons Learned from Diamond Cluster Global Outsourcing Study:

In the qualitative portion of the research, DC asked Buyers and Providers to share their insights and experience with their peers. The following is a representative sample of their first-hand observations from the front lines of outsourcing.

• Outsourcing is always harder than you originally thought.
• Cost savings alone is not a good reason to outsource.
• Leverage resources with experience and skills in outsourcing to help you develop your own sourcing strategies and execution roadmaps.
• Clearly define your goals, measurement metrics and exit strategies up front.
• Well-defined governance structures and proactive management and communication are the keys to success.
• Structure your vendor relationships as win/win propositions.
• Outsourcing your problems won’t solve them. You should fix potential problems first before you hand over the process to someone else.
• Establishing very specific and measurable SLAs is crucial for evaluating performance.
• Give providers a chance to be successful. Transitions take time.
• Due diligence on providers is essential if you want to avoid surprises.
• Internal resistance to outsourcing can be managed but you have to foster proactive and candid communications to succeed.

• Successful outsourcing requires strong buyer commitment.
• Be prepared to talk to buyers in terms of business value.
• Buyers and providers need to be long-term partners.
• Buyers should recognize that providers need time to be effective. Bringing on an outsourcer can’t happen over night.
• Buyer expectations and objectives are always evolving. Make sure you understand them at the outset and are nimble enough to satisfy them when they change.
• Resistance to outsourcing and uncertainty about its value are still issues in many organizations.
• Contracts and negotiations need to be customized for each situation.
• It’s still difficult for outsourcing firms to differentiate themselves and cost is still very important to buyers.
• You’ve got to be able to work closely and communicate clearly with buyer management to be successful.
• Cultural differences need to be acknowledged and managed.
• Establishing a mutual understanding about governance structures, SLAs and performance expectations is critical.

Profile of the Participants:

DiamondCluster’s Global Outsourcing Study includes the insights of 210 buyers and 242 providers of outsourcing services.

All of the participants are either directly involved or highly aware of their company’s outsourcing-related decisions.

The number of total employees in the participating companies ranged from 100 to more than 50,000. The number of IT employees on staff ranged from less than 100 to more than 50,000. IT budgets of participating companies ranged from less than $5 million to more than $500 million. Buyers participating in the survey conduct business in the financial services, professional services, insurance, consumer products, retail, telecommunications and public sectors.

The providers participating in the study range in size from less than 100 to more than 10,000 employees. Many of the outsourcing providers had operations in multiple locations, including Brazil, Canada, China, Egypt, France, Germany, Hungary, India, Malaysia, the Netherlands,Romania, Russia, Spain, Ukraine, the United Kingdom, the United States, and Vietnam.

Source: DiamondCluster Research

Wednesday, July 05, 2006

Now, It is CEOs' Attrition in India

Several top-level executives in the frontline offshoring companies have quit in the last one year drawing attention to the attrition in this segment. The good news, however, is that the movements are within the industry, in almost all cases, proving that it is just some readjustment and not a cause for concern...

Raman Roy who had started Spectramind in 1999, that soon became the No 1 BPO company in India and was sold off by Roy to Wipro.
Now Mr.Roy's planning his new venture QuatrroBPO.

Rizwan Koita and Jagdish Moorjani, who started Transworks, which was later acquired by Indian business group, AV Birla. The two have already started a company focusing on the healthcare space.
(Called ‘1shore’, the new company will offer end-to-end healthcare services and also provide financial services. They are currently in talks with a couple of US firms to provide end-to-end healthcare BPO. Read the story here)

Prashant Sahni quit as CEO Tecnovate-eBooker to start something fresh.

The Other CEOs/country heads who have quit in the last few months include...

Rakesh Chopra, as head of Amex offshore operations to EXL services
Romi Malhotra, as head of StanChart's offshore operations to Dell offshore Ops
RK Rangan, as head of Prudential offshore operations to Lehman's offshore

Convergys has lost two country heads in the past 12 months with Jaswinder Ghumman and Rakesh Chopra leaving, for some BPO heads movement has become par for the course.
Mr Chopra has travelled from Genpact to American Express, EXL, Convergys and back to Genpact.(Meanwhile Dr. Bawa Singh is the interim Vice President and Country Manager of Convergys India Press release)

Sunil Mehta, vice-president, Nasscom, told EconomicTimes India:

The industry is growing at 38-40% annually. Considering the growth, senior level
movement is not surprising.

Need more?

Aparup Sengupta GTL-Mumbai
K R Viswanath - CEO Epicenter (Mumbai based Collections co.)
R Mohan - CEO of Hinduja TMTR Venkatesh Iyer - President, NIIT SmartServe

The following fellows have remained in this industry...

Sujit Baksi - President vCustomer India - joined Lehmen Brothers - quit- joined Tech Mahindra
Ravi Chandaran quit HP to head ANZ Grindlay’s back office
Kiran Shah - moved from Bank of America to join Goldman Sachs BPO
Ravi Bhatia quit World Bank BPO to join Genpact
Rakesh Kumar - President Global VantEdge ( joined IntelliRisk )
Anshuman Kankan - Head India Ops ePhinay (F&A BPO) (joined COLT Telecom India Offshore Center)
Shailaja Puranik - COO/Head India ops. Sitel ( Now COO Vertex India )

There are instances of top honchos in BPOs leaving to explore options in private equity. Sanjeev Agarwal leaving IBM Daksh for Helion Venture Partners and Akshay Bhargav leaving Progeon to join 3i are cases in point.

The good news, however, is that the movements are within the industry, in almost all cases, proving that it is just some readjustment and not a cause for concern.

I like the comment of Shyamanuja about this trend ...

... we blame the 20-somethings for changing jobs because they prefer the canteen
of XYZ to that of ABC... They are at least are clear about why they are doing

Source: Global Services, Convergys Corp, EconomicTimes, The Time Magazine, GoldmanSachs, McKinsey & Co Alumi, Managing Offshore

Friday, June 30, 2006

R&D Investment Heads East: Booz Allen Hamilton-INSEAD Study

Picture/Research crtsy: Booz Allen Hamilton, Global Services

Sunday, June 18, 2006

The winners for the 2006 Everest Grp. Outsourcing Excellence Awards!

Best BPO - Hughes and ACS
Best ITO - Vanguard Car Rental and Perot Systems
Best EU - Invista and Freeborders
Best Financial Services - Channel Life and Alfinanz
Best Healthcare - St. Vincent Health System and Eclipsys
Best Business Challenge - Citrix and HP Global Services
Best Offshore - Delta Airlines and Wipro
Best Partnership - BT and Accenture HR Services

source: , Everest Group

Thursday, June 15, 2006

TCS Looking to Buy Vertex
reported by Global Services

India’s Tata Consultancy Services (TCS) is looking to buy Vertex, the outsourcing arm of U.K.’s United Utilities, in a deal valued at $800 million to one billion, the Times of India reported citing company sources.

Vertex – the company which has interests in back-office functions like customer services, human resources, procurement, finance and accounting – is perceived by the parent company as a non core business, and hence the decision to sell.

TCS already has an existing relationship with United Utilities, with the latter having signed a multiyear IT maintenance contract, the newspaper noted.

Vertex has about 9,000 employees across U.K., Ireland, Switzerland, U.S.A., Canada and India. The company reported a turnover of approximately $748 million in 2005-06 and a profit of approximately $38 million for the same time period.

Wednesday, June 14, 2006

Canadian Small Businesses to Spend $9Bn on IT in 2006 – Study

According to a study by AMI-Partners, a US-headquartered market intelligence firm, Canadian small businesses are expected to spend about USD 9 billion for the IT related products and services in 2006. This reflects a 9 percent growth over the previous year. The firm expects a majority of the projected spend to be on storage, security, Internet, and IT services.

Amongst the findings, the total spend for basic support relating to computing, networking and software, as well as professional services such as IT management and consultancy, is expected to account for about 25 percent of the total IT spending by Canadian small businesses. The data back-up and disaster recovery are also given strategic importance by the Canadian small businesses. In 2005, these businesses spent about USD 359 million on storage components. In addition, enhanced data security is also amongst the most strategic issues.

Source: GlobalSourcingNow

Tuesday, June 06, 2006

Apple finds Indian jobs too pricey

India might still be the outsourcing apple in the eye of American businesses, but in Steve Jobs’ mind, the country looks too pricey these days.
US companies are even now offshoring work to India at the rate of knots, but the industry buzz is that the legendary founder of Apple pulled out of the world’s Back Office Central last week after facing rising costs and difficulties in hiring and retaining talent.

‘‘The turnover is high, and the competition for good people is strong.’’ The company feels it ‘‘can do it more efficiently elsewhere.’’ According to industry mavens, entry-level wages have climbed by as much as 13% annually from 2000 to 2004, while salaries for mid-level managers have gone up 30% annually during the same period to a median of $31,131.

Apple’s decision came even as the US behemoth IBM announced it would triple its investments to $ 6 billion over the next three years. IBM, which already employs some 42,000 people in India and is the country’s largest multinational employers, plans to hire thousands more, its CEO Sam Palmisano said during an analysts conference in Bangalore, the first time Big Blue has held such a meet outside the United States.

According to sources, the center had to be closed as it was not financially feasible. The company, however, will continue to provide technical support to its clients from a Bangalore, India-based third-party BPO services provider, TransWorks.

Still can't figure out what went wrong with India? Don't know - prob'ly Apple's tie-up with HCL Infosystems?

Whatever... The support would be no better and possibly worse if it was moved back. The training curve would need to start over again... The longer support stays in India, the better it gets...’’

Anyways Apple is "Thinking Differently ..."

source: ET/GlobalOutsourcingNow/Apple/Transworks/IBM

US High-End IT Job Losses Lower than Reported – Study

According to a study by the American Sentinel University, the chances of the US losing high-end IT jobs due to the fast development of IT and related industries in low-cost destinations such as India are much lesser than what was being reported by various private studies. IT offshoring is primarily limited to low-end occupations such as programmers, coders, and support specialists.

According to the study, high-end IT positions are growing at a pace which is at par with the levels experienced by the country during the boom period in the 1990s. A majority of the job losses that took place in the US during and after the recession period of 2000-01 were cyclical in nature and have been won back.
Though the low-end IT jobs have shown a marginal decline of 1.5 percent during the post-recession period of 2002-04, high-end IT jobs have shown a robust growth of 18.1 percent during the same period. Network system and data communication analysts lead the growth in the high-end IT group with a growth rate of 32.5 percent, followed by computer software engineers for systems software at 25.9 percent. The trend is supported by the fact that the total value of import of IT services in the US is less than 2.5 percent of software publishing and information services produced by the country.

The study titled, Offshoring of Information-Technology Jobs: Myths and Realities, defines low-end IT occupations as the jobs which are intensive, easy to codify, and require less face-to-face interaction. High-end IT jobs are the ones requiring advanced degrees in computer science or information systems and an understanding of management and business processes.

Sunday, June 04, 2006

India’s IT, ITeS Exports Soar 33% to $23.6 Billion

The overall growth of the industry including both exports and the domestic market registered a 31% increase to reach $29.6 billion

Exports of Indian IT and IT enabled Services (ITeS) continued to grow for the fourth year in a row with an increase of 33% to touch $23.6 billion in ’05–06, according to reports by India’s industry association, Nasscom.

The overall growth of the industry including both exports and the domestic market registered a 31% increase to reach $29.6 billion according to the annual Nasscom report.
Though the projected growth in the exports for the year ’06–07 will continue to outstrip the growth in the domestic market, the industry is expected to meet its target of being a $60-billion industry by 2010.

Nasscom has also projected that exports will grow 27%–30% in ’06–07 to $29–$31 billion, while the overall industry is expected to grow 25%–28% to $36–$38 billion.

Of the total exports in ’05-06, IT software and services grew by 33% to $17.3 billion, while exports of the BPO industry grew 37% to $6.3 billion. For the year ’06-07, Nasscom has estimated that exports of software and services will increase to $21–$22 billion, while BPO exports will touch $8–$8.5 billion.

The domestic market for software is estimated to reach $6 billion in the current year from $4.8 billion in the previous fiscal year.

Wednesday, May 31, 2006

India's Offshore Advantage to Last for 30 Years

A recent 2006 Global Sourcing Market Update by Everest has brought to light that India will maintain its low-cost IT skills advantage in the offshoring market for at least another 30 years.
The update claims that fears of rapid wage inflation and skills shortage quickly reducing India’s offshore cost advantage are “greatly exaggerated.”

verest Research Institute conducted the sustainability analysis using a three-step approach.

1. In-depth Illustration: analyzed the sustainability of labor arbitrage for offshoring of select processes from UK to India
2. Generic analyses: explored expected labor arbitrage sustainability among a comprehensive list of source-destination country pairs

Source countries: US, UK, France, Germany, Japan

Destination countries: Indian, China, Philippines, Czech Republic, Poland, Mexico

3. Sensitivity to variations in key factors

Methodology takes into account that there are multiple factors affecting the longevity of labor arbitrage.
1. Current wage Diffential

2. Compensation increase in SOURCE Country

3. Compensation increase in DESTINATION Country

4. Exchange rate movements

5. Wage differential hurdle rate

Low-cost offshore locations such as India and the Philippines are aggressively making moves to minimize the impact of wage inflation by encouraging the expansion of the quality and size of the relevant workforce and by developing more low-cost offshore locations, states the report.

IT suppliers in India, for example, are lowering their costs by moving to Tier 2 cities — away from traditional high-tech centers such as Bangalore — and opening delivery centers in other countries.

for more information and full report visit

Tuesday, May 30, 2006


Major Insurers Who Have Outsourced to India :

AA Insurance ... Aetna ... Abbey Insurance Services ... Admiral Insurance ... Allianz Cornhill Captive ... Aviva ... Axa Captive ... BCBS companies (a few) ... BUPA ... Cigna ... CNA ... Conseco ... Friends .... GE Financial ... Genworth ... MetLife ... Pacific Care ... Principal Group ... Prudential Financial US ... Prudential UK Captive ... Sentera Sesame (MIFAS) .... Standard Life .... Swiss Re Captive ... Royal/Sun Alliance ... UnitedHealth ... WellPoint .... WillisCAPTIVE .... Zurich Re ...

Top Employers ( Insurance BPO India )

Rank ... Company ... Employees

1 Lason India 2603

2 EXL* 2450

3 WNS 215

4 Gecis 1800

5 AXA* 1800

6 ICICI Onesource 1790

7 Hinduja TMT 1500

8 MphasiS BPO 1500

9 24/7 Customer 1400

10 Prudential* 1000

11 Wipro BPO 1000

*Source: Global Services

Monday, May 29, 2006

Study Finds Direct Correlation Between Satisfaction and Investment In Outsourcing Management

According to a study by EquaTerra, there is a direct relation between a satisfactory outsourcing agreement and that of investments made in Outsourcing Management and Governance (OM/G).
The conclusion was based on a survey of 250 IT and BPO decision makers by the US-based outsourcing advisory firm. The firm advises a four to seven percent range in terms of the total value of contract as the optimum level of expenditure on OM/G to ensure maximum satisfaction on outsourcing deals. Executives outsourcing for process improvement than cost-savings are also expected achieve higher satisfaction levels. High-Tech Products and Services, Pharmaceuticals and Automotive/Manufacturing experienced the most satisfying results in terms industries while IT and CRM were the best verticals due to matured process.

The survey also finds that outsourcing satisfaction improves over time (respondents whose engagements had been in place more than two years were consistently more satisfied); IT and CRM executives cited the highest satisfaction levels.
While satisfaction was greatest for companies that spend 4%-7% on OM/G, over 48% of respondents spend between 1%-4%. Interestingly, HR executives were the least satisfied at this 1%-4% spend-level.

The study also indicates that organizations were using a wide range of software tools to support their outsourcing efforts. There was no clear consensus on which software applications or class of software vendors has the most compelling OM/G tools.

However, organizations clearly identified that value for the money and ease of use are the key desired functional attributes of a quality OM/G tool, and that providing timely, relevant and actionable data was the more important deliverable from an OM/G tool.

Source: Global Services, EquaTerra

Sunday, May 28, 2006

Sprint Files Lawsuit against IBM

BusinessWeek has reported that Sprint is suing IBM, saying Big Blue did not live up to its claims three years ago that it would save the telecommunications company money by taking over some of its computer programming.
Instead, Sprint said the deal ended up costing the company. It claims IBM Corp. now owes Sprint at least $6.4 million for 119,000 hours of uncompleted work - or 57 years for a single employee.
In a lawsuit filed this week in U.S. District Court in Kansas, Sprint/United Management Co. - a subsidiary of Sprint Nextel Corp. - said IBM didn't provide "contractually promised productivity improvements for 2005."
BusinessWeek reports that IBM, according to court documents, said Sprint is using an incomplete formula for measuring productivity and the amount of hours owed.
The suit focuses on a five-year, $400 million contract that went into effect in 2004. The deal, which was extended by a year, called for IBM to develop and oversee software applications for the Overland Park-based company.
Sprint transferred around 1,000 of its computer workers to IBM as part of the outsourcing agreement.

Friday, May 19, 2006

ACS to Acquire Intellinex, LLC to Enhance Learning Solutions HRO Capabilities

Affiliated Computer Services, Inc. (NYSE: ACS), a premier provider of business process outsourcing and information technology solutions, announced today that it has signed an agreement to acquire Intellinex, LLC, an Ernst & Young LLP enterprise and leader in integrated learning solutions. The transaction is expected to close within 30 days and is subject to Hart-Scott-Rodino approval as well as other customary closing conditions.

"We expect all of ACS/Intellinex's customers, including Ernst & Young, will benefit from their combined knowledge and expertise," said Mike Hamilton, Americas Chief Learning and Development Officer for Ernst & Young LLP. "Ernst & Young was recently ranked third in Training magazine's Training Top 100, and we believe this transaction will allow us to focus even more of our efforts on the development and implementation of world-class learning content and programs for our people."

"Intellinex has demonstrated its value to our global organization through the services and technologies it offers," said Pierre Hurstel, Ernst & Young Global Managing Partner -- People. "Through its affiliation with ACS, I believe Intellinex will become even more effective in the delivery and implementation of our learning programs. I look forward to a continued relationship and am confident that the innovation and commitment Ernst & Young has received from Intellinex can only strengthen."

Ernst & Young LLP has entered into a multi-year learning services agreement with ACS/Intellinex to use its technology and administrative training support, as well as its learning design, to facilitate the delivery of the training content developed by Ernst & Young to its people.

Established in 2000 by Ernst & Young LLP, Intellinex has been recognized in the Leader Quadrant by the Gartner Group, most recently in its 2005 Learning Management System Magic Quadrant. More than 300 Intellinex employees at its headquarters in Cleveland, Ohio, and at locations in Irving, Texas, Lakewood, Colorado, and Europe, will become part of ACS when the transaction closes.

Visit for more information

Wednesday, May 17, 2006

Dubai Outsource Zone to Start Operations by July ’06

According to media reports, Dubai Outsource Zone (DOZ), a free zone for the outsourcing industry, is expected to be operational by July 2006. The zone is aiming to account for a 5 percent share in the global outsourcing industry and expects to have 200-300 companies in the first five years of its operation. The zone is targeted at the companies providing mid- to high-end IT and BPO services in sectors, including finance, accounting, IT, payroll processing, graphic design, engineering, biotech, R&D, and design.

In a related development, the Arab bank has signed an agreement with DOZ to move its back-office operations to the DOZ. The new facility of the Arab bank, Arab Company for Shared Services, will conduct back-office work, including processing for fund transfers and retail and commercial loans.
Taiwan III Launches Offshore Development Center in India

The Institute for Information Industry (III), Taiwan, has announced the launch of its offshore development center in Chennai, India. The III is expected to invest about USD 1.5 million towards the center in 2006, with the figure slated to reach about USD 6.7 million by 2008.

The center will recruit about 60 IT professionals in 2006, with the strength expected to go up to 200 by 2008. The center will undertake software development and provide research and development for the Taiwanese Information, Communication and Technology (ICT) companies. It will also act as an information exchange center between India and Taiwan. The III stated the availability of skilled manpower as the primary reason behind selecting Chennai as the location for its center. The institute provides assistance to the Taiwanese government for the development of the local IT industry.

Monday, May 15, 2006

When Pearl, one of the UK's oldest insurers, hived off 950 jobs last month to an Indian outsourcing company, it could have been just another chunk of a historic industry disappearing offshore. After all, April had already seen announcements from Prudential and ABN Amro of hundreds more jobs to go in the UK financial sector, with India picking up the gains.

Tata Consultancy Services (TCS), Pearl's chosen outsourcer, has been clocking up the big deals of late. ABN Amro signed a £140m contract with the company in September to offshore 200 jobs, and Deutsche Bank is in final-stage negotiations to outsource even more in a deal worth at least £280m.

But the Pearl deal is different. Instead of shipping jobs to steamy Mumbai, TCS set up a joint venture with Pearl called Diligenta, and employees processing closed-book claims will remain at their desks in Peterborough.

Worth £486m over 10 years, the contract, which was first announced last October, is the largest-ever deal for an Indian outsourcer, and a potential IT deathtrap. Pearl has 11 legacy systems which TCS plans to combine before touting its solution to other insurers. "It's a very high-risk process," says Catherine Schmitt from research firm Celent. "A lot of the industry are holding their breath and saying 'let's see what happens'."

TCS hopes Diligenta will help it to woo a clutch of European insurers that are struggling with high operating costs but are culturally biased against sourcing out. "The UK has always been more open in insurance for offshoring but the Continental market is much more nationalistic," says Schmitt. "Tata is reacting to that by setting up an office in Hungary because there is less of an issue if you have a base in the EU."

TCS now has 4,500 employees outside India, and as the trend continues it will change how we define Indian companies, says Seturaman Mahalingam, the company's global finance director.

"If you look at the regional scene, in Europe we have capability in Budapest and in South America we have Sao Paulo. In Asia we are in China, Yokohama, and Melbourne, those kinds of places. So does that make us an Indian company? I don't know. What is an Indian company? IBM? They have 35,000 people in India. Accenture, with 16,000 people there? That distinction has blurred."

As befits an economy with 500m workers that is growing at 8pc a year, India's largest IT companies - the "big three" - are starting to bulk up. In recent results, Wipro and Infosys both reported revenues above $2bn for the first time while TCS's were just short of $3bn. The company's next target is to beat $10bn by 2010 with sales increasing 36pc a year. Not only are revenues growing, but Indian firms are doing it on margins of 25pc to 30pc, more than double those of mature players such as Accenture and IBM.

Of course, growing so fast presents its own problems. Last year TCS almost doubled its workforce by recruiting 27,377 people - 75 a day - and once took out 1,000 job ads in a single morning.

"There are issues," says Mahalingam. "For example the wages in India will go up. There is a tendency towards it already because it is a competition amongst everyone and everyone is recruiting." This has already driven up prices in the labour market, with IT wage inflation already at 10pc to 15pc a year. "And there will be currency appreciation because our functional currency is still the rupee. So there are dangers."

These dangers are the other force driving TCS's expansion on to Western shores. With costs at home going up, the company can now grow fastest by taking over existing workforces overseas. And as well as working with Indian university faculties to squeeze out more graduates, it is recruiting directly from prime British universities such as York and Queen's, Belfast.

The biggest prize for TCS is to break into higher-value business consulting work in the UK and US. Completing a blockbuster engagement like Pearl may get the firm on to a few more shortlists for this sort of work.

"I think people possibly underestimate TCS," says Schmitt. "There has been a lot of criticism of the Indian providers for being good at the technology but not really understanding the business, but that is changing. Companies like Accenture have moved down the value chain from highbrow strategy work to systems. The Indian guys are coming from a background as engineers and they are meeting and starting to compete in the middle."

Mahalingam responds to talk of the company's growing international recognition with a wry smile. He first came to the UK in the early Seventies to work on a systems migration job for Burroughs, and TCS has been quietly carving out a sizeable niche in systems here ever since.

"We have been here since 1974," he says. "It's just now, we are being noticed."
According to FAO Research, the proportion of procurement outsourcing element in the finance and accounting outsourcing (FAO) contracts is increasing. The report observed a 33 percent rise in the number of companies considering including procurement services as a part of FAO contracts. The main drivers propelling the trend are improved financial performance, better process efficiency, and access to specialized expertise. There has been a potential 100 percent increase in the number of FAO contracts involving procurement services in this year compared with those signed in 2004 and 2005 combined. The report finds that IBM has won most of the full-scale procurement outsourcing contracts, with Accenture closely succeeding.

Friday, May 05, 2006

Dow Jones Considering Outsourcing IT, Accounting Jobs

Dow Jones & Co. Inc. is considering cutting jobs in its finance and information technology divisions as the media company seeks ways to reduce expenses in the face of higher newsprint costs, reports Reuters.

According to Reuters, Dow Jones has told its employees in a memo last week that it was considering whether to outsource some of the jobs. No newsroom positions are to be cut.
Dow Jones, which also runs Dow Jones Newswires, Barron’s, MarketWatch and the Ottaway community newspapers, in April reported a higher quarterly profit but warned that second-quarter results would fall short of expectations.

Monday, May 01, 2006

Wipro Eyes Amex, BoA Contracts

According to media reports, Wipro has placed its bid for an outsourcing deal, with an expected value in excess of $ 1 billion, with American Express (Amex). Amex is offering this contract as its seven-year, $4 billion outsourcing deal with IBM expires next year. Wipro is also reported to be in pursuit of another deal of approximately $1 billion with the Bank of America (BoA).

Wipro’s attempts to win the contracts are in line with its strategy to increase its presence in the financial segment.

Thursday, April 27, 2006

Onyx Software Corporation (Nasdaq:ONXS), a worldwide leader in customer management solutions for the enterprise, today announced a strategic alliance with Cognizant, a leading provider of business process outsourcing and IT services, in which Cognizant will provide consulting services for Onyx implementations in rapidly growing vertical markets worldwide, including financial services and healthcare.

Cognizant helps large enterprises to manage increasingly complex business processes, improve operational efficiencies, and achieve compliance with regulatory changes. It also assists customers with IT-based initiatives such as self-service portals, consumer-driven healthcare, behavioral health, data warehousing and business intelligence.

As a leader in CRM, Onyx recognizes the critical importance of consulting
services in the successful implementation of effective customer relationships
said Peter Grambs, Vice President of Customer Solutions Practice for Cognizant.

Our expertise in key vertical markets combined with Onyx' strengths and focus on customer-centric data and actionable analytics provide our customers with the ability to make their CRM processes a powerful differentiator and a strong competitive advantage. Both Onyx and Cognizant have excellent levels of customer satisfaction, further complementing our combined approach to service delivery.

"Onyx is delighted to partner with Cognizant," said Jack Denault, Senior Vice President of the Americas at Onyx Software. "Working with Cognizant, we complement our professional services staff with their vertical expertise and offshore capabilities to enhance our ability to meet the complex needs of enterprise clients worldwide. This enables our services sector customers to address the challenges of managing costs and creating competitive advantage, while allowing us to extend the full range of capabilities we bring to their urgent issues."

Friday, April 21, 2006

Lack of Planning and Objective Consensus Hampering ITO – Study

According to a study by PA Consulting, a UK-headquartered consultancy firm, the lack of sufficient planning as well as proper understanding of the objectives of an IT outsourcing (ITO) agreement are the main factors hampering the achievement of strategic value from IT outsourcing. The differences in interpretation and the lack of planning were found to result in poor realization of returns, lost opportunity, and failure to achieve transformational objectives. The study covered about 300 executives, major IT outsourcing suppliers, and legal advisors.

Suppliers quoted cost reduction, followed by access to IT skills and IT investment as the clients’ desired results from ITO. Clients, however, quoted access to skills as the most important objective. According to the study, about 42 percent of the clients undertook proper planning before the initiation of the deal. About 68 percent of the clients wished to have an increased focus on the suppliers abilities.
Misinterpretation was a major drawback that hindered the derivation of maximum value from the project. Only 21 percent of the suppliers and 38 percent of the legal advisors receive complete information about the deal from the clients.

Wednesday, April 19, 2006

TCS Wins $500Mn ITO Contract with Citigroup; to Hire 2,200

TCS, the Indian IT services provider, has won a USD 500 million IT outsourcing (ITO) contract with Citigroup. The contract is based on the take-or-pay principle, under which TCS will receive a fixed amount if the work is completed within a stipulated period of time. The duration of the contract has not been disclosed.

Under the terms of the contract, TCS will provide application maintenance and development services to Citigroup. In the first year, the company will employ about 2,200 people for contract execution.

Tuesday, April 18, 2006

BearingPoint, a US-headquartered IT services provider, has established its Global Development Center (GDC) in the South Indian city of Bangalore. The investment for the new center was not disclosed. The center is expected to be transformed into the global development hub for BearingPoint in the future

In addition to Bangalore, BearingPoint also has a facility in Chennai, which it operates in conjunction with one of its partners. The new center will provide services in industry segments such as, banking, insurance, telecom, retail, oil, manufacturing, hi-tech, life sciences, and software product development. The center will also support software development, ERP implementation, application integration and management, and BPO services.

The center will initially employ 100 professionals and is expected to reach 1,000 over the next couple of years.

Monday, April 17, 2006

TCS Expected to Win $1Bn IT Outsourcing Contract

According to media reports, Deutsche Bank is expected to award a USD 1 billion IT outsourcing contract to TCS, the Indian IT services company. The deal is expected to cover sales and collections as well as the processing of financial data.

The proposed contract by Deutsche Bank is a part of its restructuring efforts to offshore more than fifty percent of its back-office work to India by the end of 2007. The bank is also planning to shift sales and trading operations by increasing its offshore services staff to 2,000.The deal, if concluded, would be the largest outsourcing deal for any Indian IT company.
Metavante, ICICI OneSource in Outsourcing Agreement

Metavante, the US-headquartered financial services provider, has entered into an outsourcing agreement with ICICI Onesource, an Indian outsourcing services provider. The company has also acquired a 11.5 percent stake in ICICI One Source for an undisclosed amount.
Under the terms of the agreement, Metavante will get exclusive distribution rights for ICICI OneSources’ BPO services to the North American Banking and Financial market. Also, as part of the agreement, ICICI OneSource will get recognition as exclusive offshore delivery partner and preferred onshore delivery partner for BPO services to financial institutions serviced by Metavante.

Tuesday, April 11, 2006

Worldwide Talent Management Market to Surpass $4Bn by 2009 – Study

According to a study by Yankee Group, a US-based market research firm, the worldwide talent management market will exceed USD 4 billion in revenue by 2009. The major vendors of the market may expect growth rates of 50 percent to 100 percent. The main reason attributed to the growth is increasing demand for developing competitive human capital. HR outsourcing and new service delivery models are also key contributors to market success.

The other major factors contributing to the growth are an increased focus on retaining talent, continued convergence of organizational expertise, renewed focus on acquiring and managing talent, and the mobilization of the global workforce. The report also found that talent management landscape is highly fragmented and comprises vendors of all sizes and capabilities. However, consolidation in the industry is expected to be in the offing and will be a major trend during the next 2 to 3 years because of market maturation.

The talent management market includes recruitment management, performance management, compensation management, succession management, learning management and other HR processes that can be outsourced to third-party services providers.
Watson Wyatt Appointed by InBev as Pensions Administrator

Watson Wyatt, the Virginia-based HR services provider, has been appointed by InBev UK, a brewery brand, as its defined benefit pensions accounting functions administrator. The financial terms and contract period have not been disclosed.

InBev’s Pension Plan has an overall defined benefit membership of around 5,000, including 2,400 active members, and a fund size of GBP 295 million. The quality and cost competitiveness of Wattson Wyatt’s services are the main reason for its appointment.

TUPE Not to Have an Adverse Effect on Indian BPO Firms – UK DTI

The UK Department of Trade and Industry (DTI) has issued a clarification that the latest version of the country’s Transfer of Undertakings Protection of Employment (TUPE) regulations is not targeted to adversely affect outsourcing to India.

TUPE regulations are applicable when an employee from a company is transferred to a contractor as part of a procurement deal. At present, during such a transfer, the contractor bears responsibility of ensuring the rights of the transferred employee and is also liable to pay damages if these rights are not respected. However, the DTI stated that UK employers are unlikely to move their employees to India while outsourcing business functions to Indian firms. They are most likely to be either re-assigned in UK only or the employees might agree to be made redundant. In addition, DTI pointed out that the new regulations apply only to UK companies and not to Indian firms.

Tuesday, April 04, 2006

EDS makes $380m offer to buy 52% in MphasiS

EDS has made a conditional offer to buy 52% controlling stake in Bangalore-based MphasiS for about $380m as the world’s second-largest software services company seeks to compete better with arch-rival IBM and also expand its offshore presence in India. EDS will make a formal conditional open offer to all shareholders of MphasiS on Tuesday, seeking to buy 52% or 83m shares of the company at Rs 204.5 per share.

If the deal goes through, it will be the second-largest purchase by an overseas company in the domestic software services sector after Oracle's buyout of i-Flex.

Oracle’s acquisition of i-flex from Citigroup was the first at about $593m. EDS’ open offer will also be applicable to Barings Private Equity Partners (34.90% stake), the management (8.6% stake) and the remaining shareholders.

The price that EDS is paying — Rs 204.5 per share — represents an approximate 30% premium to the 26-week average price of MphasiS, according to EDS. MphasiS shares rose 3.6% to Rs 215.80. They have climbed 7.93% over the past week and 20.76% in the past month.

The rationale behind MphasiS’ acquisition is that EDS wants to ramp up its financial services practice to compete with IBM Global Services.

Monday, April 03, 2006

According to a study on Finance and Accounting Outsourcing (FAO) segment conducted by FAO Research, there has been a 40 percent increase in the number of FAO contracts signed in 2005, as compared with 2004. Further, by the end 2006, an additional 60 percent growth is expected in the number of FAO contracts signed, as compared to 2005. The report reveals that 67 long-term, multi-process FAO agreements have been signed in the past two years, with 39 of them in 2005 and 28 in 2004. Accenture and Capgemini have acquired a majority of the new contracts. Other major providers mentioned in the report are IBM, Progeon, ACS, Genpact, Xansa, EDS, HP, EXL Service, and WNS. The study includes contracts, which are worth above USD 50 million with terms ranging from three to ten years.

Wednesday, March 29, 2006

NDTV and Genpact Align to Provide Media Outsourcing Services

NDTV, an Indian television content provider, has entered into an agreement with Genpact, an Indian IT and BPO services company and a former GE subsidiary, to offer media outsourcing services. The agreement is one of the first between television content provider and a BPO company to tap the potential of outsourcing in the filed back-end media services.

By leveraging this partnership, the two companies will focus on providing media-related services, such as editing, digitization and closed captioning. They will target media and entertainment customers worldwide.

The entire Global Media & Entertainment Industry was estimated at $1,340 bn at the end of 2005 and is expected to grow to $1,777 bn by end of 2009. In addition, there are a number of drivers that are changing the dynamics for the industry, such as the increasing prevalence of HDTV, digital content and on-demand programming. The changing dynamics have created a need for media companies to ensure that their content is digitized and available for customers to access and use.

There is also pressure on media companies globally to cut costs and outsourcing is one of the established means to achieve this

The venture between NDTV and Genpact will be the first to offer tailored outsourcing solutions to the media industry, allowing companies to respond to these changes quicker, faster and cheaper than would otherwise be possible.

Read the Press Release Here

Tuesday, March 28, 2006

HCL to Support MSC’s Rollout of One-Oracle Applications

HCL America, the US subsidiary of the Indian software and applications management services provider, has signed a multimillion dollar contract with MSC Software, a global provider of simulation solutions, to support the latter’s rollout of ‘One-Oracle’.

According to the terms of the contract, HCL will upgrade Oracle 11i to 11.5.10 and also transfer 11.0.3 to Global 11.5.10. In addition, it will design and develop new RICE components and port existing RICE components with minor modifications.

for more visit

Sunday, March 26, 2006

Information Security Risk a Top Concern Among Outsourcing Executives

According to a recent survey by Booz Allen Hamilton, information security has become a top concern among companies evaluating current and potential outsourcing relationships. Also, most of the companies considering outsourcing, perceive a higher security risk in engaging offshore providers vis-à-vis the US-based providers. This results from the lack of transparency in the legal and regulatory frameworks installed at the offshore locations.

Read the full story here

Wednesday, March 22, 2006

General Atlantic LLC has agreed to invest $67.6 million in India-based IT & BPO services provider, Hexaware Technologies.
Under the terms of the proposed investments by GA in Hexaware the $ 67.6 mn investment would be through preferential allotment of 14.99% equity stake post conversion. The deal values Hexaware at a capitalization of $ 450 million.

for more info follow this link

Monday, March 20, 2006

"Indian Dude, you're gettin' a Dell! well 10000 More "

Computer maker Dell expects to double the company's headcount in India to 20,000 over the next three years, its Founder and Chairman Michael S Dell said on Monday. He told a news conference here that the company, with its headquarters at Round Rock in Texas, was aiming at continuing growing at the rate of 40 per cent in India. The $56 billion company was in talks with several state governments to set up its manufacturing unit in India, he added.

Tuesday, March 14, 2006

TPI-EquaTerra Honeymoon Over

TPI and EquaTerra, two of the industry’s leading providers of advice on the service delivery strategies for large enterprises, have announced that their merger agreement, signed in February 2006, has been terminated by mutual consent of the parties. The parties have agreed to go their separate ways as providers of expert advice related to the information technology and business process operations of their clients.
Salary of BPO Employees is More in India, Says Report

According to the Nasscom-Hewitt report, more than 80% of the organizations across the IT and ITeS sectors have reported a prevalence of short-term incentive plans and about 40% have reported prevalence of long-term incentive plans with stock options being the most favored.
IT professionals got an average salary increase of 16%, BPO professionals received an 18% hike in 2005. In terms of wage bills, IT companies spent more on Total Cost-to-Company (TCC) in contrast to BPO companies in 2005, according to the Nasscom-Hewitt Total Rewards Study.

The IT sector witnessed a 10% movement in compensation across levels on TCC. BPO companies witnessed less increase in wage bills at seven percent in terms of TCC. Both IT and BPO sectors are seeing a movement toward a higher cash-to-benefit ratio. The IT firms in 2005 revealed a 78: 22 cash orientation, as compared to the BPO firms at 76: 24.

Sunday, March 12, 2006

Outsourcing has become a key instrument for developers in the gaming industry for maintaining profitability in the wake of the rising costs of games development.

The size of the games outsourcing market is expected to reach USD 1.1 billion by the end of 2006 and further increase to USD 2.5 billion level by 2010. As a result, outsourcing will command 40 percent of the total games development spend. The projected growth will be realized due to the arrival of new games consoles, which demand higher resolution and better art, produced by major players, such as Sony, Microsoft, and Nintendo.

Consequently, the productions costs rise. The rise in production costs can be checked by adopting the outsourcing to as low as 20 percent from a projected figure of 50 percent. Already, it is estimated that 60 percent of the major games studios make use of it in their development strategies. However, the report reveals that the downside of outsourcing can be seen in the quality of output and communication gaps between the clients and the vendors.

The report's author, Rick Gibson, says:
Every transition to a new generation of consoles is painful, but this one is
proving much more difficult and more expensive than before. Outsourcing is one
of the few effective strategies in use today by the world's largest games
studios to keep costs, particularly resource costs, under control.

Key findings:
1. The global market for games outsourcing will reach $1.1bn by the end of 2006 and is set to grow to $2.5bn by 2010 – representing 40% of total games development spend
2. Outsourcing is already common – it is estimated that 60% of games studios outsource today, with this figure projected to rise to 90% by 2008
3. If left unchecked, production for games developed for the new generation of games consoles will increase by 50%
4. Demand for quality art and animation will soon outstrip supply by experienced outsourcing providers
5. Undersupply of skills will result in rising prices and the continued suppression of the number of new titles in development.

TOP Indian vendors: Dhruva Interactive, Applied Gravity, Satellier India, Toonz Animation and many many more

Wednesday, March 08, 2006

The ' R ' Factor

While the attractiveness of an offshore location is usually measured by the availability of manpower, skills, business environment and cost, political and economic risks are often not taken into account while choosing an offshore location. Risk management firm Aon’s political and economic risk map for 2006, gives an interesting insight into the risk profile of a location.

Interestingly, most of the tier 1offshore locations – India, China, Russia, and Mexico – are labeled medium risk locations.

And some Low Risk Locations : Czech Republic, Slovakia, Chile

Download AT Kearney Location Attractiveness Study


Thursday, March 02, 2006

Perot Systems Acquires eServ LLC

The acquisition launches Perot Systems’ expansion into outsourced engineering services, broadening the company’s suite of BPO services for the automotive, manufacturing and industrial-services segments .

Perot Systems Corporation (NYSE: PER) today announced that it has acquired eServ, LLC, a leading provider of high-end product engineering outsourcing services, for $21 million in cash, plus up to $7 million more if certain performance targets are met. The acquisition launches Perot Systems' expansion into outsourced engineering services, broadening the company's suite of BPO services for the automotive, manufacturing and industrial services segments.

"eServ is an excellent strategic fit for Perot Systems because of the company's depth of industry expertise, customer base, and the strong cultural fit,"
said Dave Sanders, Perot Systems vice president and Commercial Solutions group leader.
"We will now be able to provide high quality, cost-effective outsourced engineering services in addition to our range of applications, consulting, infrastructure and business process solutions."

eServ, located in Peoria, Illinois, provides product engineering services to leading industrial and manufacturing companies. The company reported 2005 revenue of $24.7 million, an increase of 58 percent over the previous year. In addition to its Peoria headquarters, eServ has offices in Rock Island, Illinois and Chicago, Illinois.

"eServ is very proud of its achievements, which includes an average annual revenue growth rate in excess of 50 percent since our inception in 1999," said James Richmond, chief executive officer of eServ.
"By joining the Perot Systems family, we can bring our customers end-to-end business solutions, and add a global dimension to our capabilities to achieve faster time-to-market, reduced costs and increased revenue for our existing and future customers."

By acquiring eServ, Perot Systems enhances its cornerstone outsourcing capabilities to the automotive, manufacturing and industrial customers. The company can now help customers gain a competitive edge by providing highly- skilled, fully-trained engineers delivering complete product engineering services at a faster rate and at a lower cost.

Wednesday, March 01, 2006

Satyam to Set-Up Center in Eastern India, Expand China Operations

Satyam, an Indian IT outsourcing service provider, has announced plans to establish a new development center in the eastern Indian city of Kolkata. The facility will be spread across 2.77 acres and built in two phases.

The facility will house around 2000 employees. Large local talent pool and good infrastructure facilities are the factors for locating the new center in Kolkata.

Satyam has also decided to set up operations in Guangzhou in China. The move is a part of establishing a full-fledged development center in China. Recently, another Indian IT major, TCS, had announced expansion of its operations in China. TCS already has large direct presence as well as indirect presence through its partnership with Microsoft in China.

for more check

Wednesday, February 22, 2006

Worlds most advanced Formula 1 track is onpaper.
Sounds intersting eh ? Any guesses who’s designing this high tech track ?
Somewhere in US obviously, right ?
Wrong .. Its there in Newdelhi ,the capital city of India !

Now Guess who’s doing all these designing and modelling ?
Cherry picked top 10 architects of India ? No it’s the generation next 20 something young architects from top Arch schools of India.

Welcome to the Next phase of Offshore Outsourcing,its Architecture Offshoring.Its here and its growing.

Delhi based Satellier LLC is considered as the pioneers in the Architecture off-shoring business. Headquartered in Chicago, Satellier maintains a 15,000 square foot studio in NOIDA, a suburb near New Delhi.

"None of our clients want to be open, because they are making a lot of money by working with us.
They don’t want anyone else to.” Jansen says his firm charges about $150,000 for production work that would cost a U.S. firm $400,000 to do in-house.”

Says Michel Janeson , CEO of Satellier LLC

Its really exciting ... Its really " Global Team Work " say what ?

Friday, February 10, 2006

Shopping Login Name : IBM Add to Cart : Viacore, Inc

IBM announced that it will strengthen its Business Transformation Outsourcing (BTO) capabilities in the $23.5 billion market for supply chain optimization and management services through the acquisition of Viacore, Inc., a leading provider of business process integration solutions for real-time supply chain visibility. Financial terms of the acquisition were not disclosed.

Business Transformation Outsourcing (BTO) transforms client organizations and delivers enterprise optimization through innovative business and technology approaches. Using its global network of expertise, industry-leading consulting methodologies, research and engineering capabilities, advanced technologies and analytical tools, IBM's BTO services standardize, streamline and improve business processes. IBM BTO services transform key business functions including Finance and Accounting, Customer Relationship Management, Supply Chain, Procurement and Human Resources.

IBM provides BTO services to many of the world's leading organizations, and over the last four years has made a number of strategic acquisitions and investments to expand and strengthen its capabilities, including the acquisitions of PwC Consulting, Daksh eServices, Liberty Insurance Services Corp., Maersk Data, Key MRO, Equitant and Healthlink.

for more info visit IBM

Friday, February 03, 2006

GM Outsources IT for $15B

Our primary goals are to avoid any business disruptions and ensure our efforts
fully support the company’s global operations

said GM CIO Ralph Szygenda.

General Motors signed five-year technology-outsourcing deals Thursday worth up to $15 billion with a group of systems integrators including Electronic Data Systems, Hewlett-Packard, IBM, Capgemini, Wipro, and Compuware Covisint.

“It’s a pretty big win for EDS,
” said Lorrie Scardino, a research vice president with Gartner.

They recorded that they won 70 percent of the work that they competed on. It’s a
nice healthy percentage. They were awarded more contract value than the other
five players.”

Shares of GM fell $0.79 to $23.71 in recent trading, while shares of IBM dropped $0.94 to $81.00, HP shares slipped $0.36 to $30.87, EDS shares rose $0.14 to $25.86, and Wipro climbed $0.21 to $14.87.

IBM, Wipro, and Compuware Covisint will continue to be strategic IT partners for GM.
Wipro said it is getting a $300-million five-year contract from GM.

Of critical importance is the focus we have had on driving innovation and
supporting future globalization and digitization of the company
said GM CIO Ralph Szygenda.

HP and Capgemini will increase their current business with GM. HP is receiving $700 million to help provide server management, application maintenance, and systems integration to GM. It will work with GM’s product development, manufacturing, GMAC customer and dealer information systems, and global SAP management support.
Capgemini is receiving a five-year contract worth more than $500 million to integrate applications in the areas of company strategy, quality control, purchasing, supply chain management, sales support, and marketing.

Thursday, February 02, 2006

Sutherland Global to Invest INR 2.5Bn in New BPO Campus

Sutherland Global Services, a US-based BPO service provider, is contemplating to setup a new campus in the South Indian city of Cochin (Kochi) with an investment of about INR 2.5 billion.
The new campus will initially provide jobs to about 3,000 people, which is expected to reach 7,500 over the next few years.

Sutherland got $30 million equity funding from Oak Investment Partners, which is a private equity firm with a total of $4.2 billion in committed capital.With the funding from Oak, Mr.Vellodi CEO of Sutherland, still holds the majority stake, with 10 percent stock available for the employees and the remaining with Oak.
Accenture to Increase Presence in India, China, Philippines

Accenture, the US-based IT and outsourcing major, will double its presence in the frontline outsourcing destinations of India, China and the Philippines from the current 24,000 to about 50,000 over the next three years.

The move, according to an Accenture spokesperson, would result in a major expansion drive in India. The company currently employs close to 16,500 people in the country in the IT, BPO and consulting divisions and account for 13 percent of the 126,000 staff across the world.

A number of major outsourcing service providers including Oracle, IBM, Dell have announced significant growth plans in India to take advantage of the low cost talent pool as well as to compete better against an increasing number of Indian outsourcing service providers like TCS, Wipro and others.

Tuesday, January 31, 2006

Labor Arbitrage Key Factor for Offshoring – Everest Research

According to Everest Research Institute , labor arbitrage, which is one of the main factors for cost-saving in the offshore outsourcing model, will continue to drive most of the offshore outsourcing deals for the next thirty years.
The report counters the growing opinion that labor arbitrage is going to lose its importance as the driver for outsourcing in the wake of rapid hike in wages and lack of easy availability of skilled resource in major offshoring destinations like India. Everest reveals that hike in wages is phenomenon for a select section of talent pool. Further, the shortage of skilled labor is not an industry-wide trend but only affects certain domains.

The report also predicts that the global offshoring market will exceed the USD 160 billion mark by 2009, growing at a rate of 33 percent. Also, the non-IT offshoring will constitute around 45 percent of the offshore market in the next three years.

Wednesday, January 25, 2006

Lufthansa to Provide Centrally Managed Medical Archive to PERmed :

PERmed, a Hannover-based medical services company, has selected Lufthansa Systems, a German IT services provider, for supporting the technology infrastructure for a Regional Digital Archive (RDA) medical data exchange project. Lufthansa had completed the first phase of the project in 4Q 2005.

Lufthansa will store and manage a central database containing all the imaging and diagnostic data in digital format. This will include management of results and reports of several medical tests. The purpose of the project is to allow doctors and clinics easier and faster access to information while saving them the expense of maintaining computer archives.

Tuesday, January 24, 2006

Satyam’s 3Q Revenue Rises by 39.5% to INR 12.65Bn

Satyam Computer Services, an Indian IT outsourcing company, has reported revenue of INR 12.65 billion for 3Q 2006, constituting a rise of 39.44 percent over the revenue for 3Q 2005. The net profit for the quarter increased by 63.6 percent over 3Q 2005 to INR 2.7 billion.

The company raised its revenue estimate for the fiscal year 2006 and expects it to be within a range of INR 47.8 billion to INR 47.86 billion, with an annual growth of 35.7 percent to 35.9 percent. The company generated around INR 1.6 billion from the sale of its stake in Sify, an Indian Internet solutions and e-commerce services provider. Around 35 new customers were added to Satyam’s clientele in 3Q 2006. The company increased its employee strength by 950 to a total of 23,432.

Nipuna, the BPO services arm of Satyam, recorded revenue of INR 220.6 million, a rise of around 21 percent over the previous quarter. The BPO services provider struck a EUR 7 million animation development deal with a German animation firm, 4K Animation, in the quarter. Nipuna employs around 1639 people.