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.