India's leading software exporter Tata Consultancy Services (TCS) has won a five-year contract from Singapore Airlines Cargo (SIA). SIA Cargo, factually, is fourth largest cargo airlines in the world in terms of weight carrying. However, the size of the deal has not been disclosed. It is believed that the deal may be worth over 100 million dollars.
Girija Pandey, Executive Vice-President and Regional Director (TCS Asia Pacific), said that Singapore Airlines and TCS have always enjoyed a long lasting relationship which can be termed more as a partnership in progress rather than a customer-service provider relationship. Admittedly, in the year 2004, SIA had outsourced its back-office revenue A/C processes to the TCS.
Reports published in media show the deal another achievement in terms of outsourcing. According to them the top Indian outsourcing companies Infosys, Wipro and TCS are more frequently being invited to bid for large deals now. These Indian firms now are increasingly competing against other top players in the world such as IBM, Accenture and EDS for mammoth deals globally.
Sunday, September 7, 2008
Thursday, September 4, 2008
Rolta set to acquire Chicago IT firm for up to $50 million
MUMBAI: Mid-size IT and engineering services firm Rolta is close to acquiring a Chicago-based software firm. The deal size is expected to be around $40-50 million. Although the identity of the target company could not be ascertained, sources said the acquisition was in the area of business intelligence software. An announcement to this effect is likely to made in the next few days, they said.
When contacted, Rolta's chairman and managing director K K Singh said the company continued to evaluate acquisitions that were strategic to its business, but declined to comment on whether it had closed an acquisition deal with a Chicago-based IT firm.
"We are exploring a number of opportunities. But there is nothing to announce," he said.
However, a market analyst said an acquisition could be round the corner. "I won't be very surprised if they announce another acquisition. They had raised about $150 million through FCCBs about one-and-a-half year ago, specifically for the purpose of acquisitions," said the analyst who did not want to be named.
"Rolta has primarily been in GIS (geographic information systems) technologies. The acquisitions will broadbase its customers. The TUSC acquisition was high-end — two of the founders of TUSC sit on the Oracle's strategy committee," he added. GIS technologies currently contribute around 50% of its revenues, while IT services contribute around 20%.
Business intelligence software helps organisations mine information from databases and provides value-addition using statistical and analytical tools to help intelligent decision-making.
Companies that offer business intelligence software consulting typically operate at the premium end of the business. Satyam Computer Services had acquired Bridge Strategy, a Chicago-based firm operating in a similar business, in the fourth quarter of the last fiscal for $35 million.
"Satyam had acquired around 30-40 consultants through Bridge. The Rolta deal will be larger with around 80 consultants," the source said.
In May, ET had reported that Rolta was looking for potential acquisitions in the area of business intelligence to complement its earlier acquisition of Broech Corporation. Broech, which is also based in Chicago, is well-known under the brand name TUSC, as an IT firm specialising in ERP (enterprise resource planning) applications and Oracle database technologies. The Broech acquisition, made earlier this year, was for around $45 million.
When contacted, Rolta's chairman and managing director K K Singh said the company continued to evaluate acquisitions that were strategic to its business, but declined to comment on whether it had closed an acquisition deal with a Chicago-based IT firm.
"We are exploring a number of opportunities. But there is nothing to announce," he said.
However, a market analyst said an acquisition could be round the corner. "I won't be very surprised if they announce another acquisition. They had raised about $150 million through FCCBs about one-and-a-half year ago, specifically for the purpose of acquisitions," said the analyst who did not want to be named.
"Rolta has primarily been in GIS (geographic information systems) technologies. The acquisitions will broadbase its customers. The TUSC acquisition was high-end — two of the founders of TUSC sit on the Oracle's strategy committee," he added. GIS technologies currently contribute around 50% of its revenues, while IT services contribute around 20%.
Business intelligence software helps organisations mine information from databases and provides value-addition using statistical and analytical tools to help intelligent decision-making.
Companies that offer business intelligence software consulting typically operate at the premium end of the business. Satyam Computer Services had acquired Bridge Strategy, a Chicago-based firm operating in a similar business, in the fourth quarter of the last fiscal for $35 million.
"Satyam had acquired around 30-40 consultants through Bridge. The Rolta deal will be larger with around 80 consultants," the source said.
In May, ET had reported that Rolta was looking for potential acquisitions in the area of business intelligence to complement its earlier acquisition of Broech Corporation. Broech, which is also based in Chicago, is well-known under the brand name TUSC, as an IT firm specialising in ERP (enterprise resource planning) applications and Oracle database technologies. The Broech acquisition, made earlier this year, was for around $45 million.
Wednesday, September 3, 2008
TCS Australia chops 15 staff
Citing a slow down in financial services, IT outsourcing firm Tata Consultancy Services has chopped 15 SAP specialists from its Australian financial services division.
"Because of the situation in the global financial industry, we have had to make some adjustments in the financial solutions area of our business," a TCS spokesperson said in a statement today. They confirmed the number of staff to go was 15.
TCS boosted its financial services capabilities in SAP systems in 2006 when it acquired Sydney-based firm Financial Network Services, for around $26 million, now called TCS Financial Solutions.
Attempting to allay concerns about the business, TCS claims that it had hired 100 staff in the past 12 months, which brought the total to 265, now 250.
"Our Australian operation continues to perform very well in our core IT business areas," the spokesperson said. "This change in no way impacts any of our current customers in Australia and we will continue to recruit skilled professionals here according to the needs of the business."
Tata's local clients include the Commonwealth Bank and airline Qantas, which in 2006 awarded TCS a seven-year deal worth $120 million. CommBank late last year awarded TCL, HCL and IBM spots on the bank's panel of application development providers for work worth almost $200 million a year previously held by EDS.
Tata's SAP-focused financial services division, however, lost out to Accenture for the SAP work involved in the CommBank's $580 million core banking refresh it announced in April this year.
The retrenchments should not come as a surprise, with India's three major outsourcing companies — Infosys, TCS and Wipro — in July reporting sluggish growth for the year. TCS' profit was up just two per cent to US$296 million — lower than the 55 per cent rise for the same period in 2007.
"Because of the situation in the global financial industry, we have had to make some adjustments in the financial solutions area of our business," a TCS spokesperson said in a statement today. They confirmed the number of staff to go was 15.
TCS boosted its financial services capabilities in SAP systems in 2006 when it acquired Sydney-based firm Financial Network Services, for around $26 million, now called TCS Financial Solutions.
Attempting to allay concerns about the business, TCS claims that it had hired 100 staff in the past 12 months, which brought the total to 265, now 250.
"Our Australian operation continues to perform very well in our core IT business areas," the spokesperson said. "This change in no way impacts any of our current customers in Australia and we will continue to recruit skilled professionals here according to the needs of the business."
Tata's local clients include the Commonwealth Bank and airline Qantas, which in 2006 awarded TCS a seven-year deal worth $120 million. CommBank late last year awarded TCL, HCL and IBM spots on the bank's panel of application development providers for work worth almost $200 million a year previously held by EDS.
Tata's SAP-focused financial services division, however, lost out to Accenture for the SAP work involved in the CommBank's $580 million core banking refresh it announced in April this year.
The retrenchments should not come as a surprise, with India's three major outsourcing companies — Infosys, TCS and Wipro — in July reporting sluggish growth for the year. TCS' profit was up just two per cent to US$296 million — lower than the 55 per cent rise for the same period in 2007.
Cisco buys into e-mail with $215 million PostPath acquisition
Cisco is buying PostPath, a maker of e-mail and calendaring software, for $215 million and plans to add those capabilities to its on-demand Web Ex Connect collaboration platform.
PostPath makes PostPath Server, an e-mail and collaboration server the company touts as a replacement or supplement to Microsoft Exchange. An archiving edition of the software is available to store e-mails in a less cumbersome fashion than Exchange does with its journaling of old e-mails. The company also offers a version of PostPath Server for VMware. (Watch a slideshow of the hottest M&As of 2008.)
Cisco plans to put the server in the cloud and sell an e-mail and calendaring service to its customers. "Our 'cloud-based' delivery model offers our customers rapid deployment and compelling economics," says Doug Dennerline, senior vice president of Cisco's Collaboration Software Group (CSG).
PostPath is all about requiring no middleware to interoperate with Microsoft Outlook, Exchange, Active Directory, ActiveSynch and BlackBerry Enterprise Server, among other applications. But it also promotes itself as a Linux-based replacement for Exchange that gets around some of the Microsoft platform's shortcomings, including larger data stores and higher performance in terms of how many hits per minute the platforms can handle.
Cisco bought WebEx last year to deliver software-as-a-service (SaaS) offerings, including instant messaging, team spaces for collaboration, wikis and document sharing.
Privately held PostPath was founded in 2003.
Cisco says it expects to close the deal by the end of October and add PostPath's 67 employees to its Collaboration Software Group. CSG is part of Cisco's recently established Software Group that oversees the IOS network operating system, network and service management, unified communications, policy management and SaaS offerings.
PostPath makes PostPath Server, an e-mail and collaboration server the company touts as a replacement or supplement to Microsoft Exchange. An archiving edition of the software is available to store e-mails in a less cumbersome fashion than Exchange does with its journaling of old e-mails. The company also offers a version of PostPath Server for VMware. (Watch a slideshow of the hottest M&As of 2008.)
Cisco plans to put the server in the cloud and sell an e-mail and calendaring service to its customers. "Our 'cloud-based' delivery model offers our customers rapid deployment and compelling economics," says Doug Dennerline, senior vice president of Cisco's Collaboration Software Group (CSG).
PostPath is all about requiring no middleware to interoperate with Microsoft Outlook, Exchange, Active Directory, ActiveSynch and BlackBerry Enterprise Server, among other applications. But it also promotes itself as a Linux-based replacement for Exchange that gets around some of the Microsoft platform's shortcomings, including larger data stores and higher performance in terms of how many hits per minute the platforms can handle.
Cisco bought WebEx last year to deliver software-as-a-service (SaaS) offerings, including instant messaging, team spaces for collaboration, wikis and document sharing.
Privately held PostPath was founded in 2003.
Cisco says it expects to close the deal by the end of October and add PostPath's 67 employees to its Collaboration Software Group. CSG is part of Cisco's recently established Software Group that oversees the IOS network operating system, network and service management, unified communications, policy management and SaaS offerings.
Tuesday, September 2, 2008
Satyam BPO names new COO
India-based Satyam Computer Services has appointed Vijay Rangineni as the COO of its outsourcing arm Satyam BPO as the company strengthens its focus on specialty offerings.
Rangineni has 20 years of experience in the services industry. He was previously COO of GE Money, India. He is an alumnus of Kellogg's School of Management, Illinois, and holds a Masters' degree in Industrial Engineering from the University of Texas.
Rangineni said: "Satyam BPO's strong foothold in the specialty sphere has made the organization a leader. My focus will be on taking this leadership position forward by looking at creating more such leadership opportunities, especially in operational excellence."
Rangineni has 20 years of experience in the services industry. He was previously COO of GE Money, India. He is an alumnus of Kellogg's School of Management, Illinois, and holds a Masters' degree in Industrial Engineering from the University of Texas.
Rangineni said: "Satyam BPO's strong foothold in the specialty sphere has made the organization a leader. My focus will be on taking this leadership position forward by looking at creating more such leadership opportunities, especially in operational excellence."
Business process outsourcing in India
The sector witnessed considerable activity during 2004–05, including a ramping up of operations by major multinational corporations players and Indian organizations stepped up hiring. The domestic BPO market, catalyzed by demand from the telecommunications and BFSI segments, matched the growth of BPO exports. The market experienced maturity and consolidation, a result of numerous mergers and acquisitions taking place within the sector. There were over 400 companies operating within the Indian BPO space, including captive units (of both MNCs and Indian companies) and third-party services providers. The key enabler for this has been cheaper bandwidth leading to low telecom costs for leased lines and availability of educated English speaking workforce in India.
The Indian BPO industry remains on a growth path, emerging as one of the key investment markets in the country.
It is also referred to as Information Technology Enabled Services or ITES, and high end work with specialisation is referred to as Knowledge Process Outsourcing or KPO. There are other variants in use such as Legal Process Outsourcing (LPO).
NASSCOM is a chamber of commerce that represents this body and lobbies for it, as well as creates a platform for members to take up common issues. NASSCOM services both the Indian Software and the Indian BPO industry.
Note : As of 20 May 2008 all Indian on-shore workers in the UK and EU are now entitled to the full wage and benefits packages enjoyed by their European counterparts Uk Government brings in equal pay for Agency Workers
Contents
* 1 History
o 1.1 Airlines
o 1.2 Amex
o 1.3 General Electric
o 1.4 Third party BPO’s
o 1.5 Entry of IT majors
* 2 Size of industry
* 3 From a PricewaterhouseCoopers survey
* 4 Leading BPO-ITes cities in India
o 4.1 Captive
* 5 Companies Outsourcing to India
* 6 References
* 7 See also
* 8 Further reading
* 9 External links
//
History
Airlines
In the early 1980s several European airlines started using Delhi as a base for back office operations, British Airways being one among them. The BA captive was finally spun off as a separate organisation called WNS Global Services in 2002.
Amex
In the second half of the 1980s, American Express consolidated its JAPAC (Japan and Asia Pacific) back office operations into New Delhi. This center was headed by Raman Roy, and has been a source of several leading names in the Indian BPO Industry.
General Electric
In the 1990s Jack Welch was influenced by K.P. Singh, (A Delhi based realtor) to look at Gurgaon in the NCR region as a base for back office operations. Pramod Bhasin, the India head of G.E. hired Raman Roy and several of his management from American Express to start this enterprise called GECIS (GE Capital International Services). Raman for the first time tried out voice operations out of India, the India operations also was the Beta site for GE Six sigma enterprise. The results made GE ramp up their Indian presence and look at other locations. In 2004 GECIS was spun off as a separate legal entity by GE, called Genpact. GE has retained a 40% stake and sold a 60% stake for $500 million to two equity companies, Oak Hill Capital Partners and General Atlantic Partners.
Third party BPO’s
Till G.E most of the work was being done by “captives”- a term used for in house work being done for the parent organisation. In 2000 Raman Roy and some team members from GECIS quit , and with VC funding from Chrysalis Capital started Spectramind. At the same time an organisation called EXL started in Noida and Efunds started in Mumbai and Gurgaon, and Daksh in Gurgaon. However, recently most of the Indian BPO’s even smaller and mid-sized ones are actually setting-up their onshore presence. Most of the serious players are actually improving the outsourced business processes by leveraging on years of experience and now some of them are directly competing with their own older clientbase by marking this transition to KPO ’s.
Entry of IT majors
In 2002 Spectramind was bought by software major Wipro, and BPO by then had become mainstream like the IT Industry in India. The team that had setup Spectraming went on to start Quatrro in 2006, a BPO specialising in high end BPO/KPO services. By 2002 all major Indian software organizations were into BPO, including Infosys(Progeon), Inforlinx, HCL, Satyam( Nipuna)and Patni. By 2003 Daksh was bought out by IBM, and later in 2006 MphasiS was acquired by EDS. Even international 3rd party BPO players like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then service arms of organizations like Accenture, IBM, Hewlett Packard, Dell also set up shop in India.
Size of industry
The industry has been growing rapidly. It grew at a rate of 38% over 2005. For the FY06 financial year the projections is of US$7.2 billion worth of services provided by this industry. The base in terms of headcount being roughly 400,000 people directly employed in this Industry. The global BPO Industry is estimated to be worth 120-150 billion dollars, of this the offshore BPO is estimated to be some US$11.4 billion. India thus has some 5-6% share of the total Industry, but a commanding 63% share of the offshore component. The U.S $7.2 billion also represents some 20% of the IT and BPO Industry which is in total expected to have revenues worth US$36 billion for 2006. The headcount at 400,000 is some 40% of the approximate one million workers estimated to be directly employes in the IT and BPO Sector.
The related Industry dependent on this are Catering, BPO training and recruitment, transport vendors, (home pick up and drops for night shifts being the norm in the industry). Security agencies, Facilities management companies.
From a PricewaterhouseCoopers survey
An Indian call center
Table 1: Global BPO Market by Industry
Industry
Percentage (%)
Information Technology
43
Financial Services
17
Communication (Telecom)
16
Consumer Goods/ Services
15
Manufacturing
9
Table 2: Global BPO Market by Geography
Country
Percentage (%)
United States
59
Europe
27
Asia-Pacific (incl. Japan)
9
Rest of the World
5
Table 3: Size of Global Outsourcing Market
Year
Size (USD Bn)
2000
119
2005
234
2008 (est.)
310
Table 4: Size and Growth of BPO in India
Year
Size (US$ Bn)
Growth Rate (%)
2003
2.8
59
2004
3.9
45.3
2005
5.7
44.4
Currently the Indian BPO Industry employs in excess of 245,100 people and another 94,500 jobs are expected to be added during the current financial year (2005-2006)
Table 5: Call Center Employee cost
Country
Cost (USD/yr)
USA
19,000
Australia
17,000
Philippines
9,050
India
7,500
Nearly 75% of US and European multinational companies now use outsourcing or shared services to support their financial functions. 72% of European multinational companies have outsourced financial functions over the past two years.
Additionally, 71% of European companies and 78% US companies plan to use these services in the next 12-24 months. Overall, 29% of US and European companies expect to increase their use of outsourcing of financial functions, with spending expected to be nearly 16% higher than current levels.
Growth in this sector will get a further impetus as Indian BPO companies have robust security practices and emphasis is laid in developing trust with clients on this score. While earlier there were varying quality standards on this aspect, today there is focus on standardization of security, such as data and IP security.
Leading BPO-ITes cities in India
Bengaluru, Chennai, Hyderabad, NCR (New Delhi, Delhi, Gurgaon, Faridabad, NOIDA, Greater Noida, Ghaziabad), Pune, Mumbai and Kolkata are Tier I cities that are leading IT cities in India.
With rising infrastructure costs in these cities, many BPO’s are shifting operations to Tier II cities like Mangalore, Mysore, Hubli-Dharwad, Belgaum, Coimbatore, Madurai, Hosur, Nagpur, Kochi, Trivandrum, Chandigarh, Mohali, Panchkula, Ahmedabad, Bhubaneshwar, Jaipur, and Vishakapatnam.
Tier II cities offer lower business process overhead compared to Tier I cities, but may have a less reliable infrastructure system which may hamper dedicated operations. The Government of India in partnership with private infrastructure corporations is working on bringing all around development and providing robust infrastructure all over the nation.
Source : dqindia.ciol.com/dqtop20/2007/sas&bpo07/
Captive
* Motorola
* Nokia
* Option One
* Prudential
* Principal Financial Group
* Reuters
* Siemens
* Standard Chartered Bank
* Tesco
* UBS AG
* United Health
* Yahoo
* aMarketForce
Bootstrap Technologies Pvt Ltd.,
Companies Outsourcing to India
This is a list of companies sending work to 3rd parties in India, or having partners to run their centers.
* Aetna
* Alcoa
* Aviva
* Barclays
* BBC (in planning stages)
* Blue Cross and Blue Shield Association
* BT Group
* Capital One
* Cisco
* Delta Air Lines
* Experian
* Helion-prime
* Hewitt Associates
* HSBC (HSBC Data Processing India Pvt, Ltd)
* Mercer
* Norwich Union
* Verizon
References
1. ^ a b c d e “The Evolution of BPO in India” (PDF). PriceWaterHouseCoopers (April 2005).
uhc (united health care)
See also
* Globalization
* Software Technology Parks of India
* Nalini by Day, Nancy by Night — 2005 documentary on outsourcing in India
* Business process outsourcing in the Philippines
* Call center security
* Tidel Park
* HITEC City
* InfoPark, Kochi
* Technopark Kerala
* Silicon Valley of India
* Azim Premji — Father of the Indian Outsourcing phenomenon
* Jack Welch — Pioneer of Outsourcing to India
* Medical Transcription
Further reading
* Friedman, Thomas L. (2005). The World is Flat: A Brief History of the Twenty-First Century. ISBN 0-374-29288-4.
* Kobayashi-Hillary, Mark. Building a Future with BRICs: The Next Decade for Offshoring. ISBN 978-3-540-46453-2.
* Kobayashi-Hillary, Mark. Outsourcing to India: The Offshore Advantage. ISBN 3-540-20855-0.
* Kobayashi-Hillary, Mark. Global Services: Moving to a Level Playing Field. ISBN 978-1-902505-83-1.
* Sengupta, Arunabha. Labyrinth - A Novel about the Software Industry. ISBN 0-595-39697-6.
* Sengupta, Arunabha. Big Apple 2 Bites. ISBN 8-188-81198-X.
* Davies, Paul. What’s This India Business?: Offshoring, Outsourcing, and the Global Services Revolution. ISBN 1-904838-00-6.
* Aalders, Rob. The IT Outsourcing Guide. ISBN 0-471499-35-8.
* Das, Gurcharan. India Unbound: The Social and Economic Revolution from Independence to the Global Information Age. ISBN 0-385720-74-2.
* Brown, Douglas. The Black Book of Outsourcing: How to Manage the Changes, Challenges, and Opportunities. ISBN 0-471718-89-0.
External links
* NASSCOM (National Association of Software & Service Companies)
* Ministry of Communications & Information Technology, Department of Information Technology, India
Articles
* “Middletons looks forward to an Indian free trade deal”, by Chris Merrit, Legal affairs editor, The Australian, May 23, 2008
* “India being Bangalored by China”, by Venkatesan Vembu, Daily News & Analysis, 27 May 2007
* The Rise Of India, Business Week Online
* Inside Outsourcing in India, CIO.com
* India’s New Faces of Outsourcing, The Washington Post
* Outsourcing: Silicon Valley East, MSNBC
* Where the Good Jobs Are Going, Jyoti Thottam, Time.com
* Out Of India, CBS News
* Some U.S. hospitals outsourcing work: Shortage of radiologists spurs growing telemedicine trend, Associated Press
* U.S. homework outsourced as “e-tutoring” grows, by Jason Szep, Reuters
* BBC Will Outsource Accounting to India, Associated Press
* Strategic application of Offshoring in a CPA Practice , by Dev Purkayastha
* Radiology Outsourcing In India: IMC Breaks New Ground, medicalnewstoday.com
Videos
* The Other Side of Outsourcing, Discovery Times Channel
* Exporting IT: Austin to India, News 8 Austin
* Will India’s outsourcing boom ever bust?: Infosys Chairman N.R. Narayana Murthy talks outsourcing, News.com
* India 101 on eweek Video Seminars hosted by Stan Gibson
* 30 Days - Outsourcing In India
* The Rise of India, ABC News
Retrieved from “http://en.wikipedia.org/wiki/Business_process_outsourcing_in_India”
The Indian BPO industry remains on a growth path, emerging as one of the key investment markets in the country.
It is also referred to as Information Technology Enabled Services or ITES, and high end work with specialisation is referred to as Knowledge Process Outsourcing or KPO. There are other variants in use such as Legal Process Outsourcing (LPO).
NASSCOM is a chamber of commerce that represents this body and lobbies for it, as well as creates a platform for members to take up common issues. NASSCOM services both the Indian Software and the Indian BPO industry.
Note : As of 20 May 2008 all Indian on-shore workers in the UK and EU are now entitled to the full wage and benefits packages enjoyed by their European counterparts Uk Government brings in equal pay for Agency Workers
Contents
* 1 History
o 1.1 Airlines
o 1.2 Amex
o 1.3 General Electric
o 1.4 Third party BPO’s
o 1.5 Entry of IT majors
* 2 Size of industry
* 3 From a PricewaterhouseCoopers survey
* 4 Leading BPO-ITes cities in India
o 4.1 Captive
* 5 Companies Outsourcing to India
* 6 References
* 7 See also
* 8 Further reading
* 9 External links
//
History
Airlines
In the early 1980s several European airlines started using Delhi as a base for back office operations, British Airways being one among them. The BA captive was finally spun off as a separate organisation called WNS Global Services in 2002.
Amex
In the second half of the 1980s, American Express consolidated its JAPAC (Japan and Asia Pacific) back office operations into New Delhi. This center was headed by Raman Roy, and has been a source of several leading names in the Indian BPO Industry.
General Electric
In the 1990s Jack Welch was influenced by K.P. Singh, (A Delhi based realtor) to look at Gurgaon in the NCR region as a base for back office operations. Pramod Bhasin, the India head of G.E. hired Raman Roy and several of his management from American Express to start this enterprise called GECIS (GE Capital International Services). Raman for the first time tried out voice operations out of India, the India operations also was the Beta site for GE Six sigma enterprise. The results made GE ramp up their Indian presence and look at other locations. In 2004 GECIS was spun off as a separate legal entity by GE, called Genpact. GE has retained a 40% stake and sold a 60% stake for $500 million to two equity companies, Oak Hill Capital Partners and General Atlantic Partners.
Third party BPO’s
Till G.E most of the work was being done by “captives”- a term used for in house work being done for the parent organisation. In 2000 Raman Roy and some team members from GECIS quit , and with VC funding from Chrysalis Capital started Spectramind. At the same time an organisation called EXL started in Noida and Efunds started in Mumbai and Gurgaon, and Daksh in Gurgaon. However, recently most of the Indian BPO’s even smaller and mid-sized ones are actually setting-up their onshore presence. Most of the serious players are actually improving the outsourced business processes by leveraging on years of experience and now some of them are directly competing with their own older clientbase by marking this transition to KPO ’s.
Entry of IT majors
In 2002 Spectramind was bought by software major Wipro, and BPO by then had become mainstream like the IT Industry in India. The team that had setup Spectraming went on to start Quatrro in 2006, a BPO specialising in high end BPO/KPO services. By 2002 all major Indian software organizations were into BPO, including Infosys(Progeon), Inforlinx, HCL, Satyam( Nipuna)and Patni. By 2003 Daksh was bought out by IBM, and later in 2006 MphasiS was acquired by EDS. Even international 3rd party BPO players like Convergys and Sitel had set up shop in India, swelling the BPO movement to India. Then service arms of organizations like Accenture, IBM, Hewlett Packard, Dell also set up shop in India.
Size of industry
The industry has been growing rapidly. It grew at a rate of 38% over 2005. For the FY06 financial year the projections is of US$7.2 billion worth of services provided by this industry. The base in terms of headcount being roughly 400,000 people directly employed in this Industry. The global BPO Industry is estimated to be worth 120-150 billion dollars, of this the offshore BPO is estimated to be some US$11.4 billion. India thus has some 5-6% share of the total Industry, but a commanding 63% share of the offshore component. The U.S $7.2 billion also represents some 20% of the IT and BPO Industry which is in total expected to have revenues worth US$36 billion for 2006. The headcount at 400,000 is some 40% of the approximate one million workers estimated to be directly employes in the IT and BPO Sector.
The related Industry dependent on this are Catering, BPO training and recruitment, transport vendors, (home pick up and drops for night shifts being the norm in the industry). Security agencies, Facilities management companies.
From a PricewaterhouseCoopers survey
An Indian call center
Table 1: Global BPO Market by Industry
Industry
Percentage (%)
Information Technology
43
Financial Services
17
Communication (Telecom)
16
Consumer Goods/ Services
15
Manufacturing
9
Table 2: Global BPO Market by Geography
Country
Percentage (%)
United States
59
Europe
27
Asia-Pacific (incl. Japan)
9
Rest of the World
5
Table 3: Size of Global Outsourcing Market
Year
Size (USD Bn)
2000
119
2005
234
2008 (est.)
310
Table 4: Size and Growth of BPO in India
Year
Size (US$ Bn)
Growth Rate (%)
2003
2.8
59
2004
3.9
45.3
2005
5.7
44.4
Currently the Indian BPO Industry employs in excess of 245,100 people and another 94,500 jobs are expected to be added during the current financial year (2005-2006)
Table 5: Call Center Employee cost
Country
Cost (USD/yr)
USA
19,000
Australia
17,000
Philippines
9,050
India
7,500
Nearly 75% of US and European multinational companies now use outsourcing or shared services to support their financial functions. 72% of European multinational companies have outsourced financial functions over the past two years.
Additionally, 71% of European companies and 78% US companies plan to use these services in the next 12-24 months. Overall, 29% of US and European companies expect to increase their use of outsourcing of financial functions, with spending expected to be nearly 16% higher than current levels.
Growth in this sector will get a further impetus as Indian BPO companies have robust security practices and emphasis is laid in developing trust with clients on this score. While earlier there were varying quality standards on this aspect, today there is focus on standardization of security, such as data and IP security.
Leading BPO-ITes cities in India
Bengaluru, Chennai, Hyderabad, NCR (New Delhi, Delhi, Gurgaon, Faridabad, NOIDA, Greater Noida, Ghaziabad), Pune, Mumbai and Kolkata are Tier I cities that are leading IT cities in India.
With rising infrastructure costs in these cities, many BPO’s are shifting operations to Tier II cities like Mangalore, Mysore, Hubli-Dharwad, Belgaum, Coimbatore, Madurai, Hosur, Nagpur, Kochi, Trivandrum, Chandigarh, Mohali, Panchkula, Ahmedabad, Bhubaneshwar, Jaipur, and Vishakapatnam.
Tier II cities offer lower business process overhead compared to Tier I cities, but may have a less reliable infrastructure system which may hamper dedicated operations. The Government of India in partnership with private infrastructure corporations is working on bringing all around development and providing robust infrastructure all over the nation.
Source : dqindia.ciol.com/dqtop20/2007/sas&bpo07/
Captive
* Motorola
* Nokia
* Option One
* Prudential
* Principal Financial Group
* Reuters
* Siemens
* Standard Chartered Bank
* Tesco
* UBS AG
* United Health
* Yahoo
* aMarketForce
Bootstrap Technologies Pvt Ltd.,
Companies Outsourcing to India
This is a list of companies sending work to 3rd parties in India, or having partners to run their centers.
* Aetna
* Alcoa
* Aviva
* Barclays
* BBC (in planning stages)
* Blue Cross and Blue Shield Association
* BT Group
* Capital One
* Cisco
* Delta Air Lines
* Experian
* Helion-prime
* Hewitt Associates
* HSBC (HSBC Data Processing India Pvt, Ltd)
* Mercer
* Norwich Union
* Verizon
References
1. ^ a b c d e “The Evolution of BPO in India” (PDF). PriceWaterHouseCoopers (April 2005).
uhc (united health care)
See also
* Globalization
* Software Technology Parks of India
* Nalini by Day, Nancy by Night — 2005 documentary on outsourcing in India
* Business process outsourcing in the Philippines
* Call center security
* Tidel Park
* HITEC City
* InfoPark, Kochi
* Technopark Kerala
* Silicon Valley of India
* Azim Premji — Father of the Indian Outsourcing phenomenon
* Jack Welch — Pioneer of Outsourcing to India
* Medical Transcription
Further reading
* Friedman, Thomas L. (2005). The World is Flat: A Brief History of the Twenty-First Century. ISBN 0-374-29288-4.
* Kobayashi-Hillary, Mark. Building a Future with BRICs: The Next Decade for Offshoring. ISBN 978-3-540-46453-2.
* Kobayashi-Hillary, Mark. Outsourcing to India: The Offshore Advantage. ISBN 3-540-20855-0.
* Kobayashi-Hillary, Mark. Global Services: Moving to a Level Playing Field. ISBN 978-1-902505-83-1.
* Sengupta, Arunabha. Labyrinth - A Novel about the Software Industry. ISBN 0-595-39697-6.
* Sengupta, Arunabha. Big Apple 2 Bites. ISBN 8-188-81198-X.
* Davies, Paul. What’s This India Business?: Offshoring, Outsourcing, and the Global Services Revolution. ISBN 1-904838-00-6.
* Aalders, Rob. The IT Outsourcing Guide. ISBN 0-471499-35-8.
* Das, Gurcharan. India Unbound: The Social and Economic Revolution from Independence to the Global Information Age. ISBN 0-385720-74-2.
* Brown, Douglas. The Black Book of Outsourcing: How to Manage the Changes, Challenges, and Opportunities. ISBN 0-471718-89-0.
External links
* NASSCOM (National Association of Software & Service Companies)
* Ministry of Communications & Information Technology, Department of Information Technology, India
Articles
* “Middletons looks forward to an Indian free trade deal”, by Chris Merrit, Legal affairs editor, The Australian, May 23, 2008
* “India being Bangalored by China”, by Venkatesan Vembu, Daily News & Analysis, 27 May 2007
* The Rise Of India, Business Week Online
* Inside Outsourcing in India, CIO.com
* India’s New Faces of Outsourcing, The Washington Post
* Outsourcing: Silicon Valley East, MSNBC
* Where the Good Jobs Are Going, Jyoti Thottam, Time.com
* Out Of India, CBS News
* Some U.S. hospitals outsourcing work: Shortage of radiologists spurs growing telemedicine trend, Associated Press
* U.S. homework outsourced as “e-tutoring” grows, by Jason Szep, Reuters
* BBC Will Outsource Accounting to India, Associated Press
* Strategic application of Offshoring in a CPA Practice , by Dev Purkayastha
* Radiology Outsourcing In India: IMC Breaks New Ground, medicalnewstoday.com
Videos
* The Other Side of Outsourcing, Discovery Times Channel
* Exporting IT: Austin to India, News 8 Austin
* Will India’s outsourcing boom ever bust?: Infosys Chairman N.R. Narayana Murthy talks outsourcing, News.com
* India 101 on eweek Video Seminars hosted by Stan Gibson
* 30 Days - Outsourcing In India
* The Rise of India, ABC News
Retrieved from “http://en.wikipedia.org/wiki/Business_process_outsourcing_in_India”
Monday, September 1, 2008
Tech Mahindra enters strategic partnership with Veracode
Tech Mahindra enters strategic partnership with Veracode
India’s leading IT and Business solutions provider for the telecommunications industry, Tech Mahindra, has entered into a strategic partnership with US-based Veracode Inc., the world’s leader for on-demand application security testing solutions.
With this partnership, Tech Mahindra will develop a practice through which it will expand its service offerings beyond telecom, into enterprise market also, including banking and financial services, manufacturing, retail and online service provider organizations. Veracode will be a technology partner with Tech Mahindra and a joint application security portfolio will be developed to cater for the needs of the end customers.
Tech Mahindra will leverage Veracode’s on-demand SecurityReview service to enhance the company’s application security offering for both new and existing customers.
With SecurityReview, Tech Mahindra aims to broaden its portfolio of application security services by leveraging Veracode’s patented static binary testing technology and dynamic web scanning analysis to obtain a completely independent and fully automated assessment of the security of its client’s software applications.
Market analysts expect that this strategic partnership with Veracode will give Tech Mahindra access to a unique, on demand application security technology, which allows the company to further strengthen its application security capability as they expand into new market. The stock was trading strong today and crossed Rs 900 level at 3 pm.
India’s leading IT and Business solutions provider for the telecommunications industry, Tech Mahindra, has entered into a strategic partnership with US-based Veracode Inc., the world’s leader for on-demand application security testing solutions.
With this partnership, Tech Mahindra will develop a practice through which it will expand its service offerings beyond telecom, into enterprise market also, including banking and financial services, manufacturing, retail and online service provider organizations. Veracode will be a technology partner with Tech Mahindra and a joint application security portfolio will be developed to cater for the needs of the end customers.
Tech Mahindra will leverage Veracode’s on-demand SecurityReview service to enhance the company’s application security offering for both new and existing customers.
With SecurityReview, Tech Mahindra aims to broaden its portfolio of application security services by leveraging Veracode’s patented static binary testing technology and dynamic web scanning analysis to obtain a completely independent and fully automated assessment of the security of its client’s software applications.
Market analysts expect that this strategic partnership with Veracode will give Tech Mahindra access to a unique, on demand application security technology, which allows the company to further strengthen its application security capability as they expand into new market. The stock was trading strong today and crossed Rs 900 level at 3 pm.
Subscribe to:
Comments (Atom)