Archive | Business

Cloud Computing to Transform African IT Industry

In Australia 45% of major companies see the cloud as a significant influencer to outsource
Aust. BPO report 2012 – Editor

The inaugural Cloud Summit East Africa, proudly supported by the Kenya ICT Board, will be held in Nairobi from 5 to 6 June 2012. The strategic 2-day invitation-only event is hosted by international business-to-business conferencing company, Kinetic Events.

The event is aimed at IT professionals, senior decision makers and cloud computing experts from top companies in East Africa with a focus on how cloud computing is reforming the African IT market place. As a cost effective solution for businesses to acquire and use, the event will explore debatable issues currently associated with the global cloud initiative.

International investors have played a major role in boosting the African IT industry. By tagging along on Africa’s major broadband initiatives, investors can establish clouds that are strategically located in major cities across Africa.

In recent research; South Africa is considered fairly mature in cloud development, with total IT spending expected to reach an estimated $12bn (US) by the end of 2012.

Cloud computing trends will have a major impact on IT industries globally as an effective means to collaborate with peers internationally and offers longevity to information stored in the cloud.

Shannon Mackrill, Joint Managing Director of Kinetic Events says, “Cloud computing is rapidly changing the African IT industry and the way companies do business. The move from capital spending to operational spending, will offer an affordable way to access services globally.”

Undersea fibre optic cables have been implemented in recent years, resulting in the cost of broadband decreasing. African entrepreneurs are taking full advantage of this development by providing superior applications and services that were seemingly impossible to consider only 5 years ago.

With a global focus on computing, security and continuously evolving technologies, Africa has been placed in the middle of a global IT revolution. The summit will place the spotlight on cloud computing in Africa as one of the key global emerging markets for cloud services.

For more information, comment or photographs, visit www.cloud-eastafrica.com or contact Shaunei Meintjes on +27 21 555 0866 or shaunei@kineticevents.net. Follow @ITLeadersAfrica and @KineticEventsSA on Twitter for daily updates and news feeds.

Posted in Cloud Computing, Industry Reports, IT OutsourcingComments (0)

I got gouged: the horrors of outsourcing

By David Wilson

With many smaller firms now being attracted to outsourcing or micro sourcing via sites like guru.com and freelancer.com this article serves as a timely warning that one must tread carefully and look to work with firms and individuals that that domain experience and a track record.
- Editor

Fiona Lewis was once fleeced in outsourcing and now puts potential contractors through interviews.

Love it or loathe it, outsourcing means risk. That accountant, typist or coder you hire may prove flaky or dishonest.

According to the security software developer Lieberman, 77 per cent of respondents believe their outsourcers have made up work to earn more money.

In one memorable blog post, entrepreneur Shane Snow complains about once getting billed for seven hours of work when just 20 minutes were spent on a project. Instead of saving you money, outsourcing can waste it.

Two Australian entrepreneurs with outsourcing horror stories now know how best to avoid getting gouged.
Sydney-based tech entrepreneur Fiona Lewis runs several businesses including the internet marketing consultancy, Internet Marketing Profit Centre.

But in “the early days” of late 2008, Lewis made her worst outsourcing blunder when she contracted to have a website designed for a key client.

Production lagged and eventually cost $2500 – double the quoted price, for nothing.

“The coding was so bad that I couldn’t possibly deliver it to the client,” Lewis says.

Worse, the designer proved not to be a one-man-band, as she thought, but a slippery firm that refused to provide a refund.

The outsourcing agency stonewalled, claiming Lewis had not cancelled the project during production. But she contests she could not tell that the site did not work because she only had access to screenshots.

Eventually, she paid another developer $1000 to build the site from scratch.

The ordeal made her feel “very stressed” and “appalled” at the lack of support for entrepreneurs stung by dodgy providers.

Now, after fine-tuning her hiring process, she has some advice.

First, get referrals. “I find that, once you’ve got somebody who’s good, they tend to know somebody else who’s got good work ethic and skill.”

If you cannot get referrals, Lewis says, try an agency you have found trustworthy. She uses vWorker.com, seeking talent on a regional basis.

Eastern Europeans are hot on the technical side and industrious, she says, adding that Filipinos excel at administration and online marketing.

Lewis interviews possible hires rigorously, asking them to answer technical questions she sends via Google Docs. She also conducts a Skype interview, which obliges the applicant to think on his or her feet. If an applicant gets past that stage, the final filter is a quick, paid trial assignment.

Lewis says regardless of who you hire, never let a web developer host a site on their server. By doing so, you lose control. Businesses might find that the site is never even transferred, as has also happened to Lewis.

Whitsundays-based virtual assistant Emma Wilson offers a cloud-based service to clients across Australia. Wilson’s work involves hiring cloud-based subcontractors, which has given her a file full of ordeals over deadlines, dud quality, inexperience and poor value.

In late 2009, she had a stack of audio files that needed transcribing.

Thinking she was being business-savvy, she looked overseas and found an online admin business that seemed efficient, judging by the email conversations she had with her contact. Certainly, the fee was attractive.

“Needless to say,” she says, “the quality of transcription I received back, due to the English not being their first language, was horrific.”

Each of the files, which she sent together, came back with mistakes throughout.

She had told her client she would deliver “come hell or high water”. So she had to redo the transcripts.

“Many sleepless nights followed,” she says.

Wilson says she felt cheated because, after negotiating a discount, she still had to pay half the fee for the useless work. The cock-up cost her $2000.

“But most of all it cost me hours and hours,” she says, adding that other work wound up “on the backburner”.

After the fiasco, she raised her game and devised a list of tips.

Emma Wilson’s top outsourcing tips for small business:

1. Spend time on the service firm’s website to gauge if it is legitimate.
2. Seek client testimonials and examples of previous work.
3. If outsourcing overseas, remember that English may not be the firm’s first language, so if you want accuracy, forget it.
4. Remember that Australia has a strong virtual assistant presence – reputable people running their own businesses offering services ranging from copy writing to graphic design.
5. Stick with trusted providers – ask your friends/ colleagues’ advice on who they have used.

Read more: http://www.smh.com.au/small-business/growing/i-got-gouged-the-horrors-of-outsourcing-20120409-1wk4o.html#ixzz1soO3N3I3

Posted in Outsourcing, StrategiesComments (0)

The next stop in outsourcing: Accountability

By David Kruzner, senior vice president, iGATE Patni (Network World)





This vendor-written tech primer has been edited by Network World to eliminate product promotion, but readers should note it will likely favor the submitter’s approach.

With the nation’s focus on the need to create jobs, the habit of outsourcers to cite the traditional value of cheap labor will no longer be of adequate value for an increasingly sophisticated clientele.

This is forcing outsourcers into a new age of value-based solutions and accountability. Accountability involves more stringent control of services delivered based on an overall business outcome (value-based) — not according to time and materials. Relationships are structured as long-term consultations and management, not short-term labor arbitrage projects. The workforce is more skilled, as domain or vertical experts and located across the globe, including increasingly in the U.S.

These pressures create a tremendous opportunity for the IT industry. Here are a few things your organization should know about how to take your vendor relationship to the next level.

* Think about creating value, not lowering cost: In a traditional outsourcing engagement, IT examines a particularly manual or cumbersome process and then evaluates the options for conducting it more efficiently and frugally. But, chances are, your business has already taken that step — you probably took it years ago. The next step is about technology-driven engineering and productivity. This productivity is measured on one key tem — business value.

In a value-driven engagement, vendors are evaluated based on the business outcome they create, not the time and materials they consume. It’s about the final output from the client’s success, which is a mutually beneficial relationship for both parties. The risk is shared among both parties — and when risk is involved, it’s not just about pricing and cost. The key currency in a vendor relationship is value, which can be a welcome change for any company that’s seen an outside party run up the bill based on number of FTEs.

* Align the vendor with your business: In order for an outside vendor to deliver business value, the vendor needs to have a clear idea of both the business’ and IT’s overall business goals and strategy. In these visibility-driven engagements, they’re handled as long-term consultations, not short-term cost-cutting projects.

Outsourcers embed themselves in the IT department, using their technology expertise to suggest ways the business could be run more efficiently. In many cases, this uncovers problems or opportunities a client did not know existed. It’s an additional level of sophistication, evaluated not by the needs of the outsourcing client, but by the needs of the client’s client. When overall business goals are met, this creates a relationship of optimum value to the customer.

* Focus on management: In a particularly uneasy and pressure-packed time in the economy, your biggest ally in a vendor relationship is organized and strict management practices. These aren’t traditional benchmarks; they’re best practices that align directly to a business outcome. If a vendor is held to a particularly high standard in a business context, that vendor will utilize its full array of expertise and resources to ensure client success.

But effective measurement does not come without visibility and clarity in the beginning. One shortfall from the “gainsharing” days in the 1990s was that these types of projects failed because of their lack of structure and true visibility. The outside party tied its work to client success, but the projects were structured in a way that never articulated what success was and the attributes of the success were not visible. If success is tied to solid, measurable business outcomes, then the vendor and client can march toward the same goal as true partners, with shared risk and investment.

We are at a crux point in the IT services industry. The traditional days of labor arbitrage are over, leading to a more sophisticated level of vendor-client relationship. With change comes opportunity, and savvy clients can use these pressures to create a more productive and long-term engagement.

An accountable outsourcer is not just a marketing term; it represents the next step in a 35-year-old business idea. With additional accountability, we see a future where both vendor and client is set up well for success.
Kruzner is a senior vice president, iTOPS Solutions and consulting at iGATE, an outcomes-driven outsourcing provider and systems integrator based in Fremont, Calif.
http://www.techworld.com.au/article/421627/next_stop_outsourcing_accountability/?fp=16&fpid=1

Posted in Outsourcing, StrategiesComments (0)

SG: Outsourcing Market Cooled in First Quarter

1Q / 12 Global TPI Index shows ‘hangover effect’ following two robust quarters –Restructurings up 82 percent, account for increasing share of market

Information Services Group (ISG a technology insights, market intelligence and advisory services company, released TPI Index data showing that the value and number of outsourcing contracts awarded globally dropped during the first three months of the year in a familiar pattern of market cooling following two robust quarters in a row.

The 1Q / 12 Global TPI Index, which covers commercial outsourcing contracts valued at $25 million or more, measured total contract value (TCV) of $18.7 billion, a decline of 22 percent from the same quarter a year ago and 35 percent from the previous quarter. The 184 contract awards during the first quarter represented a drop of 31 percent year-over-year and 18 percent sequentially.

A key factor affecting the market’s first-quarter performance was the presence of only one mega-deal, defined as a contract with TCV of $1 billion or more. However, the market awarded seven mega-relationships, contracts with average annual TCV of at least $100 million. Furthermore, TCV from restructurings, which accounted for most of the mega-relationships, rose 82 percent year-over-year.

The weak first quarter comes on the heels of a record second half for the outsourcing market. In the last six months of 2011, global TCV rose 29 percent year-over-year to a record $55.8 billion.

“This first-quarter slowdown follows the strongest half for outsourcing in a decade, making for difficult comparisons,” said John Keppel, Partner & President, Research and Managed Services, ISG. “We saw this same hangover effect in early 2010 as well as in early 2006. So there is historical precedent for the industry taking a breather after two robust periods.”

The TPI Index, presented by ISG, provides a quarterly snapshot of the sourcing industry for clients, service providers, analysts and the media. Now in its 38th consecutive quarter, it is the industry’s authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider metrics.

The 1Q12 Global TPI Index showed first-quarter declines in both IT outsourcing (ITO) and business process outsourcing (BPO). With weakness in all functional areas, ITO TCV fell 20 percent year-over-year and 37 percent sequentially. In BPO, TCV dropped 27 percent year-over-year and 30 percent sequentially despite an uptick in activity in Finance & Accounting, Contact Centers and Procurement.

By region, the Americas turned in the best quarterly performance. Bolstered by the global market’s lone mega-deal, Americas TCV during the quarter was flat year-over-year and up 8 percent sequentially. Europe, the Middle East & Africa (EMEA) slowed significantly, due in part to uncertainty stemming from fiscal concerns in the Eurozone. First-quarter TCV in EMEA fell 32 percent year-over-year and 53 percent sequentially. Asia Pacific TCV fell 36 percent year-over-year and 33 percent sequentially.

An ISG analysis of historic market data found the number of outsourcing transactions has increased dramatically over time even as the average duration of contracts has declined. As a result, contract expirations are now occurring at twice the rate they did five years ago, and they now account for a larger share of TCV awarded in every region of the world. TPI Index data show a record 570 outsourcing contracts worth at least $25 million were scheduled to expire in 2011, and record contract expirations are expected again this year.

ISG anticipates the number of contracts restructured will rise 20 percent in 2012, the third time in four years it has grown at that pace, while the value of restructured contracts should rise 10 percent.

Said Keppel: “Looking ahead, we foresee a soft first half and a reviving second half to 2012, mainly because of the impact of an anticipated upswing in restructuring performance in the second half of this year.”

ISG will discuss the 1Q12 Global TPI Index during a conference call for media and analysts today at 11:00 a.m. Eastern. For more information, including dial-in instructions, audio replays and presentation slides, please visit http://www.isg-one.com/web/research-insights/tpi-index/ .

About Information Services Group

SOURCE Information Services Group (ISG)

Copyright (C) 2012 PR Newswire. All rights reserved

Posted in Industry Reports, IT Outsourcing, OutsourcingComments (0)

New Ozi BPO Research Report Shows Global Expansion Main Driver for BPO

Today, The Sauce published the landmark Australian BPO Report 2012 (ABPO Report), which investigates the current state of business process outsourcing in Australia and points to future trends. Global expansion is seen to be the key driver and benefit of outsourcing decisions amongst 71 percent of organisations surveyed. The report also showed significant anticipated growth in business process outsourcing activity among large organisations with between 500 to 5,000 employees (this constituted one-third of all respondents). This group of Australian organisations is expecting an increase of 20 percent over the next two years. The report was sponsored by IBM and Fuji Xerox Australia.

“The report reflects the rapid pace of change and maturity that the BPO industry has undergone over the last decade. It has evolved from pure cost cutting, to improved efficiency, to strategic transformation and an important part of business strategy,” said Russell Ives, Director, Global Process Services, IBM Growth Markets.

“The report highlights that Australia’s senior business community are aware of the benefits of outsourcing and decision-makers are looking towards higher order benefits, such as improving financial flexibility, driving free cash flow, strengthening customer satisfaction, increasing market penetration, expanding into emerging markets and taking advantage of the opportunities with a global economy,” said Ives.

Most outsourced business processes
The report highlights that while outsourcing decisions in the contact centre and customer service functions were by far the most widely reported, customer service functions are actually not among the top three of most outsourced activities. Human Resources, and Printing/Document Management were found to be the most outsourced functions (15 and 18 percent), followed by Finance and Accounting (13 percent). In the next 12 to 24 months, HR outsourcing is expected to grow to 23 percent.

Marketing and customer relationship management
Outsourcing of marketing processes including CRM (Customer Relationship Management) is predicted to grow by 21 percent within organisations that already outsource elements of this function. Of particular note is that online marketing is expected to nearly triple, growing from 6 percent to 17 percent, signalling major opportunities for organisations offering these kinds of services.

“CRM outsourcing services enables organisations to solve their complex customer-facing challenges by applying analytics-driven methodologies with measurable outcomes. In some instances, implementing multi-channel support models that enable real-time monitoring of customer interactions can result in 15 percent improvement in customer satisfaction,” said Peter Monk, Partner and BPO Solution Leader, IBM.

Cloud computing and outsourcing
Another trend emerging in the outsourcing sector is the increased use of cloud services. A large number of organisations are now considering cloud computing (35 percent) when making the decision to outsource, yet a marginal proportion (15 percent) of organisations have adopted cloud computing at an enterprise level as part of their outsourcing strategy.

The report highlights that increased mobility and Cloud will create a ‘free agent’ revolution in service outsourcing as the ability to work from almost anywhere in Australia becomes possible using remote mechanisms. This is particularly relevant for the mining industry which operates over vast distances. In these scenarios, the value of Cloud services is even greater when it can be tailored to accommodate the unique elements of a particular industry.

Martin Conboy, President of the Australian Business Process Association and editor of The Sauce, comments: “There is tremendous pressure on companies from shareholders to reposition their capital in their business, change the make-up of their balance sheets and move to an operating expense environment. Interestingly, we are seeing different types of outsourcing opportunities being requested by Australian organisations particularly for non-voice back office projects. By and large they want access to skills not readily available in Australia and this allows them to focus on their core competencies and support their specialist higher level employees in Australia.”

About the Report
This Australian-first report jointly sponsored by IBM and Fuji Xerox Australia was produced by The Sauce and endorsed by the Australian Business Process Outsourcing Association. The purpose of the report is to deliver intelligence around outsourcing in Australia in order to better understand the drivers, economic realities and why so many organisations in today’s business environment are choosing to outsource their non core business processes.

To download a full analysis of the BPO Research 2012 results visit: http://thesauce.net.au/sauce-research/australian-bpo-research-report-2012-overview/

Posted in ABPOA, BPO, Industry ReportsComments (0)

Woolworths Nearshores to NZ

By Madeleine Heffernan
with Ruth Williams

HUNDREDS of Australian jobs have been shifted to New Zealand as local producers try to avoid the impact of high wages, a soaring Australian dollar, and restrictive labour laws.

Woolworths is the latest to transfer jobs across the Tasman. It transferred 40 contact centre jobs to Auckland this week. Imperial Tobacco has also announced it will move cigarette manufacturing from Sydney to New Zealand.

The companies are following in the footsteps of the food production industry, which has been shifting jobs out of Australia to take advantage of New Zealand’s lower wages.

Heinz Australia recently scrapped more than 300 jobs across three states in favour of its large plant in Hastings, New Zealand’s largest food processing and food producing centre.

The International Labour Organisation says Australian manufacturing workers earned more than $US35 an hour in 2008. In New Zealand the rate is under $US20 an hour.

Average weekly earnings for manufacturing workers in Australia are higher than those in Canada, Britain, New Zealand and the United States, says a study which put Australian earnings at more than $1000 a week, versus about $700 in NZ.

Simplot Australia is the last remaining vegetable processor in Tasmania after its rival McCain shifted production to New Zealand in 2010, citing a better return on investment.

Callum Elder, the executive general manager of quality and innovation at Simplot, said penalty rates and wage inflation make Australian processing much more expensive.

”Penalty rates are a significant cost difference to manufacturers, particularly in the agricultural game where you’re unable to properly plan,” Mr Elder said.

This has combined with wage rises that are not matched with productivity improvements, and instead stoked by high salaries in the mining sector and infrastructure projects, he said.

”Our productivity hasn’t increased in the past three to four years, as an industry, but yet we’ve been paying 3 to 4 per cent increases [in wages], which is a large part of the cost. It’s very expensive to put people into Australian factories.”

Mr Elder said base pay of $60,000 a year can leap to $100,000 when overtime, payroll and other costs are included. ”The average base salary is probably around $60,000 and there’s probably another $20,000 in penalty rates, and the rest comes from surcharges and taxes.”

High wages, penalty rates and productivity of Australian workers has come under attack in recent months. Toyota Australia’s chief executive, Max Yasuda, has criticised the culture of his workforce at Altona, Melbourne, where he said absenteeism can be as high as 30 per cent.

Earlier this year the New Zealand Finance Minister, Bill English, told Business Day his country was benefiting from a more flexible industrial relations environment, a lack of infrastructure bottlenecks and stable energy prices.

”The IR environment is pretty flexible and has enabled quite a lot of flexibility to our manufacturing sector, which has in the last while been growing, despite the high dollar,” he said.

The mayor of Hastings, Lawrence Yule, believed New Zealand’s ”more holistic view on employment” appeals to Australian companies.

He cited New Zealand’s lower levels of unionisation, ability to operate outside traditional daytime hours, and greater use of seasonal employees. ”Our labour laws are more relaxed, as I’m told,” he said. ”I’ve been advised that’s part of the mix.”

Peter Burn, director of public policy at the Australian Industry Group, said New Zealand has not followed Australia in ”tightening” industrial relations settings, and labour laws could prove to be ”the straw that breaks the camel’s back” for some firms. ”Labour laws in themselves aren’t going to be the ‘knock them down’ difference, but could make a difference at the margins.”

Agrifood consultant David McKinna said penalty rates during peak times were putting pressure on the sector.
”If you take the cost of labour, it can run anything up to $50 an hour, whereas in New Zealand it’s probably $20,” said Dr McKinna, principal at strategic business consultancy McKinna et al.

Jessica Ramsden, spokeswoman for HJ Heinz Co Australia, said the now-closed plant in Girgarre, Victoria, was small by global standards, and the investment to make it competitive was too great. Differences in labour conditions between the two countries did not affect the company’s decision.

Jason Hefford, from the Australian Manufacturing Workers Union, said shifts to New Zealand were a concern, but pointed to the high dollar and health and safety obligations over the high wages.

Read more: http://www.smh.com.au/business/australian-jobs-on-the-move-to-nz-20120417-1x5jv.html#ixzz1sKfhCVJm

Posted in Labour, OutsourcingComments (0)

Serco Launches New Global BPO Division

Heralds the creation of a formidable top-tier player with 2012 revenues that will reach in excess of USD 1 Billion KEY HIGHLIGHTS OF THE NEW BPO DIVISION: Successfully transitions acquisitions including Intelenet Global Services in India, The Listening Company in UK and Excelior in Australia to fold into a larger BPO capability Potentially amongst the top 10 BPO players globally, top 5 BPO players in Europe, top 4 India based BPO players and the largest supplier of services in the domestic India BPO market. Now has one of the strongest on-shore capabilities amongst Indian BPO players To engage new markets like Africa, China, Latin and South America.

Serco, the international service company, announced the launch of a new global BPO division that will improve the services Serco provides to its customers and enable it to target global opportunities both in the public and private sector. Also referred to as the Global Services division within Serco, it heralds the emergence of a formidable top-tier BPO player, both within the international and Indian markets, with revenues in excess of $1 billion by the end of this year. Serco’s new BPO division reflects scale, depth of capabilities and the creation of a larger global delivery platform.

Incorporated as one of four business divisions within Serco, it brings together a number of BPO related operations and capabilities currently reported and managed in different Serco divisions. Thus it is an amalgamation of the contracts and companies that deliver business process services globally within Serco including Intelenet Global Services in India – a leading provider of business process outsourcing (BPO) services to the private sector around the world and a predominant player in the domestic Indian market; The Listening Company in UK; and Excelior in Australia – all leading providers of outsourced contact centre services in their respective domestic BPO markets.

The Global Services division has a workforce of around 50,000, over 150 clients, and a diversified footprint with a presence in 10 countries, 98 locations. The business will focus on five vertical markets – namely Banking, Financial Services & Insurance; Travel, Hospitality & Transportation; Healthcare, Utility, Retail & Manufacturing; Telecom, Technology & Online Services; and Media, Education & Government.

Tom Riall, CEO Designate, Global Services, Serco, said, “The evolution of the Global Services division supports Serco’s vision to create a leading international Business Process Outsourcing Company. We will now be reckoned as an end to end service provider offering the complete spectrum of business services to customers in the public and private sector around the world, by combining Serco’s front end service capabilities along with world class middle and back-office capabilities. Furthermore, the Global Services division will work alongside other regional divisions in order for Serco to deliver fully integrated services for our customers, thereby making us a one-stop destination for existing & potential clients.”

Posted in BPO, Expansions, GrowthComments (1)

Australian banks prefer mature model for BPO

By Deepti Krishnan, Research Analyst – Value Notes

As the credit market slows, Australian banks are under pressure to maintain profits. The four largest banks in Australia by market capitalization are planning on a major restructuring through outsourcing. Westpac and the Australia and New Zealand Banking Group (ANZ), two of the big banks, are already on the outsourcing path. The initial trend is predominantly ITO, including system maintenance. Infosys is currently fulfilling Westpac’s need for IT services. A successful outsourcing relationship here could mean a foot in the door for its BPO service line, thus opening up the field for other BPO service providers.

The worldwide banking sector and BPO
The HfS report “Banking BPO Services: Getting Back to Basics”, co-authored by ValueNotes, concluded that worldwide demand for core banking processes is increasing. These core processes include asset management, mortgages, and cards and payments. Banks are also looking to consolidate and streamline back-office processes by outsourcing horizontal services. These horizontal services are Finance & Accounting, Human Resources (HR), Supply Chain Management (SCM), and Reporting & Analytics. The exhibit below, titled “BPO services in demand by banks”, lists these horizontal services, and their sub-services. They are repetitive and not unique to an individual business, for instance payroll. On the other hand, some sub-services are more ad-hoc and knowledge-driven. They require significant client interaction, and thus, are categorized under knowledge process outsourcing (KPO).

According to the HfS report “Banking BPO Services: Getting Back to Basics” only 2% of the BPO deals by banks, from 2008 to 2011, were from the APAC (Asia-Pacific) region. As banks in this geographical location become more comfortable with outsourcing, this could mean an increase in the number of BPO deals.

Outsourcing models favored by banks

Banks can choose from various outsourcing models for BPO. The degree of affinity to their choice of outsourcing model is depicted in the exhibit titled “Outsourcing models deployed by banks”. The initial phase in the lifecycle of an outsourcing service provider is the captive center model. The goal shifts to better customer experience as the captive center model evolves to a shared services model. This evolution requires SLAs for all processes and sub-processes, and with clearly defined responsibilities for both the client and service provider. A shared services model lets the banking organizations retain some functionality based on their own unique requirements. A service provider must be an expert in process management to evolve to the last stage depicted in the exhibit.

The Australian Business Process Outsourcing Association (ABPOA) is releasing a research report titled “The Sauce Australian BPO Report 2012”, sponsored by IBM and Fuji-Xerox Australia. It investigates the current and future adoption levels of BPO by organizations in the BFSI sector. The report, analyzed by ValueNotes, further illuminates the current adoption levels of outsourcing models, including shared services, preferred offshore locations, and operating models adopted for BPO.

While the aforementioned BPO report provides insights for the BPO sector, ValueNotes’ upcoming study on the KPO industry will illuminate the KPO service offerings of a range of service providers in India, and their capabilities to cater to the market.

Posted in Industry Reports, News ArchiveComments (0)

Page 3 of 4612345...102030...Last »