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Outsourcing group proposes management core subject

THE BUSINESS Processing Association of the Philippines (BPA/P) will propose to the Commission on Higher Education (CHEd) the inclusion of a service management core subject in college.

The proposal comes as BPA/P and CHEd signed a memorandum of cooperation yesterday at Eastwood City, Libis to start a five-year partnership to revise college curricula, develop a training program for teachers and an assessment tool to determine a graduate’s readiness to enter the information technology (IT) and business process outsourcing (BPO) industries.

Noting the difficulty in finding qualified individuals to fill job openings in the industry, the group underscored human resource development as key to achieving the IT-BPO medium-term road map goals of generating $25 billion in annual export sales and creating 4.5 million jobs — 1.3 million directly and 3.2 million indirectly — by 2016.

“We believe that our partnership with CHEd will give a big boost to our efforts to tackle our number one challenge of improving the quantity and quality of our talent supply,” BPA/P Chairman Alfredo I. Ayala said on the sidelines of the memorandum signing.

“We do need help in developing human capital in the Philippines. At first, I was uneasy about pushing our college graduates to work in the BPO industry. But when I was introduced by the association to the broad nature of the BPO industry, I began to learn about opportunities the industry presents to our graduates in various fields,” CHEd Chairperson Patricia B. Licuanan told reporters.

“CHEd is throwing its full support behind the IT-BPO industry because we see this as a key long-term solution toward job creation and poverty alleviation. We are expecting that, through this collaboration, we can now give significantly more options to our future graduates so that they do not have to leave the country in order to win high-paying jobs where they can learn world-class skills.”

Under BPA/P’s proposal, colleges can incorporate a “BPO 101” in their core curriculum for all students, regardless of their specialization.

On top of this introductory subject, students can also make service management their minor course, said Martin Antonio S. Crisostomo, BPA/P external affairs executive director. Such students will be schooled in BPO culture, problem solving and other analytical skills, he added.

Source: BWorld Online

Posted in BPO, Business, IT Outsourcing, News Archive, Outsourcing, Partnership, Public Private PartnershipComments (0)

Multi-sourcing – the next evolution in outsourcing

By Jaroslav Cerny, CEO of RDB Consulting

Outsourcing has become an accepted model in the modern business, as increasing numbers of organisations begin to realise the advantage of procuring the skills of outside providers, particularly within the Information Communication Technology (ICT) space. Some of the tangible benefits of outsourcing include lowered costs, easier access to scarce skilled resources and improved turnaround times on issues, to mention a few.

However, the field of ICT is a complicated one with many different areas.

This makes outsourcing multiple aspects to one company somewhat problematic, and organisations are beginning to realise that if all services are outsourced to one provider, they are not guaranteed that service levels will be of the same standard across the board. This comes as a result of large outsourcing organisations absorbing smaller companies, which adds to their service stack but does not necessarily mean that these new areas will be specialities. Organisations end up locked into outsourcing contracts with providers who are not delivering according to their needs in certain areas.

As a result organisations are beginning to question the wisdom of placing all of their ICT eggs in one basket, so to speak. To address this challenge they are looking towards a strategy that involves multiple outsource partners for various niche areas, sourcing specialists who will provide high levels of service in each specific area. This has given rise to the next evolution of outsourcing, a trend that has become known as ‘multi-sourcing’.

Customers are beginning to demand better service levels in all industries, particularly in IT where any investment or service is a costly exercise.

When engaging with IT service providers, organisations now wish to ensure not only that they are addressing cost factors and achieving return on investment (ROI), but are also getting the very best levels of service without becoming locked into long-term service contracts.

By leveraging the multi-sourcing model companies can achieve smaller pockets of service capabilities that are easier to evaluate, which enables better fact-based decision-making regarding continuation of services.
With the outsourcing model, where multiple services are stabled with one provider, this switch becomes more difficult since it involves multiple processes and systems. Multi-sourcing on the other hand allows for certain services to be switched without much fuss should niche providers not deliver on these areas, and drives a more competitive environment between vendors as they strive to obtain the advantage by delivering better service levels and greater value adds.

The outsourcing model, and multi-sourcing in particular, falls neatly into line with modern business operations. The skills shortage in South Africa is a reality, and hiring full time resources in-house to manage all IT operations is simply not a cost effective option, particularly when the majority of administration is not in fact a full time job.

Outsource partners can deliver services quicker than internal IT departments, since Service Level Agreements (SLAs) ensure set response times to resolve issues, whereas internal resources are not bound by such agreements. Using outsourced providers also enables organisations to leverage economies of scale. In addition, they have access to a far wider pool of resources to find the best solution and deliver this in short order, on demand, without the need to pay the high cost of a full-time resource.

The multi-sourcing model can be used to find specialists in each area, which guarantees that a specialised service is provided in line with the latest technological innovations and evolutions.

Multi-sourcing as a model provides numerous benefits. Specialist skills are available when needed and costs can be negotiated easily. If similar services can be obtained from another provider for a better price, or an organisation is unhappy with service levels, the provider can easily be changed. These services can be obtained without the consistent expenditure of a full-time resource, and services can be scaled up and down depending on current and future needs. Organisations are not locked in to a single contract with a vendor who may not be delivering consistently across all areas, and using multiple service providers ensures that replacing one area can be achieved with relative ease to achieve better service levels.

On the downside, multi-sourcing does involve a lot more administration, as multiple contracts and SLAs need to be constantly managed. This requires an internal resource to review reports from providers and make decisions regarding performance in order to effectively govern the model. This model also increases potential for suppliers to play a blame game, with one service provider blaming another for bad service across the board. This makes effective management even more important, since the multi-sourcing manager will have the information needed to make decisions based on the facts of service provided.

Using one outsource partner for the entire ICT department involves a lot less administration, however it does increase the organisation’s risk since if that one provider experiences problems the entire IT system could potentially be compromised.

At the end of the day, outsourcing in its various models makes sense in today’s business world. When deciding between traditional outsourcing and the emerging multi-sourcing model, organisations need to weigh up between increased administration versus increased risk, as well as the benefits of obtaining specialist providers in each area when it comes to dealing with mission critical IT appliances.

Source: Developing Telecoms

Posted in IT Outsourcing, Multisourcing, News Archive, OutsourcingComments (0)

Consider five rules when outsourcing IT, says expert

Five golden rules for IT

Using a cloud platform to outsource IT operations is a big consideration for many businesses
at present. Cost reductions and a higher degree of flexibility are the primary drivers
behind companies taking the plunge with the new technology.

However, there are growing number of IT departments who are concerned over
its security and service levels.

IT expert Michael Robert of BusinessComputingWorld.co.uk says there are five key points
businesses should look at when deciding whether or not to outsource to the cloud.

Firstly, he wrote on the website, companies need to have an understanding of their IT
infrastructure and how it operates. If the companies runs a lot of file sharing operations or
phone switches then they may not be suitable for the cloud.

He added that some businesses, such as financial institutions, are governed by strict
regulations and as such some of their operations may best kept in house rather than
outsourced.

Secondly, he stated, weighing up current and future costs against the benefits on offer
is important. However, he was keen to note: “I’ve found that, in almost all cases of
outsourcing to the cloud, businesses that reduce their IT estate and centralise servers in
a third-party data centre still have ample processing power and storage to realise these
kinds of ambitions.”

Despite this, his third point is to look beyond the figures. Cloud should not be looked up
on just in terms or cost reduction and day to day operations, it can also work as an effective
back up the event of an unforeseen disaster.

Fourthly, he advised that your companies should optimise their networks for the cloud.
He stated that too often the network is an afterthought when outsourcing projects begin
and can impact on performance. Increasing bandwidth is another thing companies
neglect using a cloud-based platform.

Lastly, he said that a business should get to know its provider. He suggested speaking
to their other clients to find out whether they will be a good fit for your business.

Source: iHotDesk

Posted in Cloud Computing, IT Outsourcing, News ArchiveComments (1)

The Rise of Socially Responsible Outsourcing

By Michael Vizard

Outsourcing Fundamentals
Eleven tips on completing a successful outsourcing project.

Within some IT circles, Indian outsourcing firms have become the poster child for everything that’s wrong with globalization and the H-1B visa program.


But blaming a certain set of companies for taking advantage of business opportunities created by the American companies that use the services of these firms to lower their IT costs seems a little hypocritical. There’s no doubt that these Indian firms enjoy a cost advantage by primarily leveraging labor resources in India, but that’s not all that much different from all the manufacturing jobs that U.S. companies outsourced to China. Businesses shift work to where costs are lower unless other outside pressures are brought to bear.


According to HCL Technologies CEO Vineet Nayar, that’s exactly what’s starting to happen. At the company’s recent Global Meet 2011 conference , Nayar noted that the Indian outsourcing provider has created 1,200 jobs in the U.S. The company has been working in cooperation with local universities and state governments to ensure that there is a supply of IT talent for those projects. The reason for this, Nayar says, is that “socially responsible” companies in the U.S. want to make sure that IT work performed on their behalf is done in the U.S., so even though HCL Technologies is not sure how profitable these projects will ultimately prove to be, customer requirements are driving the company to invest more in U.S.-based IT talent. That effort, notes Nayar, is also part of a larger effort to have greater local presence in the U.S. market because HCL Technologies is getting involved in more complex projects that require more than just the availability of low-cost IT skills. In fact, the goal is to have 10,000 employees outside of India by 2015.


IT jobs are, of course, a hot-button issue. But Nayar says that between companies in the U.S. insisting that jobs be performed in the U.S., and the fact that more than half of all H-1B visa requests are being rejected, fundamental change in the way IT projects on a global basis are being managed is starting to take place.


Long term, the real question shouldn’t be so much about rolling back globalization as much as it should be about advancing the skills of the entire IT community in a way that promotes enough work for all concerned. But in the meantime, forces other than pure economics are starting to have an impact on where IT jobs are being distributed.

Source: Posted in IT Outsourcing, News Archive, Social ResponsibilityComments (0)

Market Snippets – Week 43

GlobalConnect changes name to AGC Networks. GlobalConnect was bought last August by Aegis Australia and over the past 12 months it has been integrated into the company.

The Philippines is the most cost-effective outsourcing destination in Asia, according to real estate advisory firm CB Richard Ellis. In a recent study by CBRE comparing 15 central business districts in Asia, the Philippines was ranked the second cheapest with lease rates at $19.1 price per square foot/annum, next to Jakarta’s $16.3. This despite an increase in office lease rates in Metro Manila and a decline in vacancy rates this year. The Philippines also ranked second in terms of office rental yields in Asia, at 10% in the third quarter of 2011, following India’s 11%.

Unisys Corporation announced that its Australian and New Zealand subsidiaries have signed agreements with McDonald’s to provide end-user IT support services to McDonald’s restaurants across Australia, New Zealand and the South Pacific. The five-year contracts have an estimated combined value of approximately AU$30 million (US$30.5 million) and represent new business for Unisys.Under the terms of the contracts, Unisys will provide service desk, on-site and remote support services to McDonald’s chain of more than 1,000 company-owned and franchised restaurants across Australia, New Zealand and the South Pacific region, including New Caledonia, Fiji, Tahiti, American Samoa and Samoa.

Posted in Acquisitions, Growth, Industry Reports, News ArchiveComments (1)

The future of work

By Martin Conboy, President – Australian BPO Association (ABPOA)

Last week I attended a symposium, which was hosted by Fuji Xerox called ‘Nextwork’. It was all about exploring the workplace of tomorrow. At the outset, I must say that it was one of the most stimulating and thought-provoking events that I have ever been to. Fuji Xerox had done their homework as they brought together some of the finest minds to share their views about tomorrow. I was amazed by the technology and trends that were presented. Suffice it to say it’s all about the Cloud, Mobility and Location, and there is some exciting new language evolving like, ‘Business colonies’, ‘Anticipatory Analytics’, ‘Cohort Theory’, ‘Disruptive Innovation’ and ‘Continuous Partial Attention’.

At the end of this report I have included some material from the Institute of the Future, which is essential for those interested in further reading.

Breakfast Panel

The Fuji Xerox NextWork symposium started with a scene-setting breakfast panel that included Peter Ulm, Desktop & Productivity Lead – (Microsoft), Steve Godbee, A/NZ Integration Leader & CIO- (IBM), Scott Mason, Director of Products – (Optus), Kevin Bloch CTO – (Cisco) and Beth Winchester Exec. GM HR – (Fuji Xerox), during the breakfast we were treated to a glimpse of the future of work.

There was a lot of discussion around the physical work space and what would that look like in the future and how we would not necessarily ‘own’ the space that we occupied in a concrete sense as there would be a lot more ‘Hot Desking’ that would cater for disparate work groups that would only come together for special events and projects. There was talk about using new technologies like Skype to video conference and people bringing their own internet connecting device to work, (smart phone/tablet/ laptop etc.) as companies of the future would not impose restrictions on the tools one needs to do one’s job – think converging technologies, cloud and thin clients, yet using your own internet access device.

Looking forward, the panel agreed that a lot more people would work remotely away from their employer’s physical location and that has implications for how real estate features into the mix: this will give metropolitan building owners and managers heart palpitations as in the future people will not go to where the work is, as we do now, in the future the work will go to where the people are. In Australia with the roll out of the National Broadband network (NBN) we will see the resurgence of rural and regional Australia as people opt for a work life balance and do away with the long commute and congested living.

Of course, if mobility is going to be one of the underlying trends then loss of the gateway devices (who has not accidently left a smart phone or laptop in a taxi?) will have to be a consideration and it was suggested by the panel that these devices would not actually hold data on them per se as all data would be housed in the cloud so that it can be accessed anywhere, anyhow, anytime by anything so long as one has the relevant access codes. In other words, data will be the most important asset in the future and being able to access it, not the devices that the data is on.

In order to make sure that we are offering services that our customers want and need, we will use tools like ‘crowd sourcing’ to engage with customers to solve business and marketing problems. We will have to get used to collaborating outside of the standard business framework and work with our own communities of interest, workgroups, and social networks to test our ideas.

If data is the key, the future will allow us to extract unprecedented analytical information. Therefore, there is the potential to get bogged down with data overload. The business issues will be around making sense of it all: how do we manage data; what business intelligence tools will we need; how will we extract data and use it in a meaningful way.

Presentation one

The first bespoke presentation was given by Mike Walsh, CEO of the innovation research agency, “Tomorrow”. Walsh determined that with new and different ways to interact with customers and more flexible ways for employees to work, there would need to be a rethink about how we create frameworks that bring out the best in people. “Unless you understand the underlying culture of what drives your employees, you cannot build the office of the future”, he said. He went on to say, “even though employees will work from remote locations like their home, they still crave social contact”. Walsh gave an example of a hotel in New York that offered Wi-Fi and an environment where freelancers would come together with others to have a sense of community and a collegiate atmosphere that would not be possible if they were working in isolation from home.

Walsh gave some other great examples that are already being used today in Japan, where people use their mobile phones to scan bar codes on posters in railway stations to buy their groceries. Perhaps his most important point was that the companies of the future would be built around a core of data. He also brought into the discussion some concepts around social anthropology as a prism to make sense of the future. He said that 56% of students nearing graduation would not work for a company that blocked FaceBook and Twitter.
Walsh also pushed ‘Cohort Theory’. Generational cohort theory argues that events, social change and even pop culture affects the values, beliefs, attitudes and ultimately behaviour of individuals. According to this perspective, a generation is less about the age of a group but more about their shared experience in their youth.

Another subject that he touched on was ‘Disruptive Innovation’. The term disruptive innovation as we know it today first appeared in the 1997 bestseller, ‘The Innovator’s Dilemma’. In the book, Harvard Business School Professor Clayton Christensen investigated why some innovations that were radical in nature reinforced the incumbent’s position in a certain industry. Christensen analysed extensively the disk drive industry because it represented the most dynamic, technologically discontinuous and complex industry one could find in our economy. Just consider that the memory capacity packed into a square inch of disk increased by 35% per year, from 50 kilobytes in 1967 to 1.7 megabytes in 1973, 12 megabytes in 1981 and 1100 megabytes in 1995.

Disruptive innovation will often have characteristics that traditional customer segments may not want, at least initially. Such innovations will appear as cheaper, simpler and even with inferior quality if compared to existing products, but some marginal or new segment will value it.

Operating under such a value network might lead a company to “listen too much” to its main customers. As a result, it will not recognise potentially disruptive innovations that serve only marginal customers. Secondly, large companies will not be interested in small markets; they hardly offer significant growth opportunities. Again this will lead companies to completely ignore the disruptive innovation or to wait until the market is “large enough to be attractive”. That is exactly when new entrants attack incumbent’s turf, and by that time it is usually too late.

The physical and digital worlds are converging at a speed predicted by very few. According to IDC, the world’s information is doubling every two years.

Walsh spoke about Continuous Partial Attention (CPA), which is the process of paying simultaneous attention to a number of sources of incoming information, i.e. customer feedback, warehouse withdrawals, and website hits, but at a superficial level.

The term was coined by Linda Stone in 1998. Author, Steven Berlin Johnson, describes this as a kind of multitasking: “It usually involves skimming the surface of the incoming data; picking out the relevant details and moving on to the next stream. You’re paying attention, but only partially. CPA lets you cast a wider net but it also runs the risk of keeping you from really studying the fish”.

Presentation two

Dr. Thomas Frey, a futurist and Executive Director at the DaVinci Institute and Google’s top rated futurist speaker, a man with a seriously bright mind gave a brilliant presentation around the secret language of the future. He presented his theory about how the future gets created. He explained how we could influence the future by using social media and other unusual techniques for both understanding and gaining control of our own futures.

Frey put forward a proposition that in the future, workgroups would come together in much the same way that Hollywood comes together to make a movie and then break up after the project is over. “The future gets created in the minds of everyone around us. Virtually everyone has a hand in it, but not all contributions are equal. As you might imagine, a small group of people armed with powerful ideas can make a disproportionately large impact.”

“But creating the future needs to involve much more than just ideas. The ideas create a starting point but need to be put into a visual context, massaged, enhanced, and somehow made to spring to life.”
Frey spoke about ‘Business Colonies’. Business colonies are an evolving, new kind of organisational structure designed around matching talent with pending work projects. The operation will revolve around some combination of resident people based in a physical facility and a non-resident virtual workforce. Some will forego the cost of the physical facility completely, opting instead to form around an entirely virtual communications structure.

Most will be organised around a topical area best suited for the talent base of the core team. As an example, a team of photonics engineers will attract projects best suited for that kind of talent. Likewise, a working group of programmers specialising in computer gaming applications will serve as a magnet for new gaming projects.

In some instances, large corporations will launch their own business colonies as a way to expand capability without adding to their headcount. Staffed with a few project managers, the company will use the colony as a proving ground for experimental assignments best performed outside of the cultural bounds of existing workflow.

Xerox Presentations

The next two presentations were given by ‘holograms’ (very cool) of the presenters, the first ‘hologram’ was Francois Ragnet from Xerox’s Technology Innovation, French-based Think Tank, and he spoke about a ‘less paper’ office. As Xerox is a ‘green’ company, he chose not to enlarge his carbon footprint by not actually coming to Australia in person, so he came as a ‘hologram’. Ragnet presented some scary statistics such as 20% of all documents that printed are not actually picked up and 40% are discarded the next day – imagine the impact on our forests if we eliminated such waste from our business processes!

Dr. Larry Rowe of Xerox’s Palo Alto, California Research Labs also beamed in as a hologram. Rowe laid out a presentation around the importance of fostering teamwork in a disparate mobile workforce and that collaboration was the key. He argued that combining low cost computing, storage, and communication with powerful mobile devices is changing the nature of work and everyday life today. Rowe also spoke about how organisations need to think about how to use the physical place itself as a part of the information toolkit along with laptops, mobile phones, and printers. The need to manage large volumes of complex visual information will lead to workplace design needs that expand the size and scope of digital displays.

In summary, the future is looming up very quickly, and the old command and control way of running our businesses is passing. For most of us, it’s a work in progress; some will still want to hang on to the old ways and resist change.

There is only one constant in business and that is change, as my first boss told me, “if you are not going forward, then you are gong backwards.”

To support your thinking, I found this – Institute of the Future – www.iftf.org

For every forecast there exists a litany of potential implications. By drawing out the most crucial implications from each of our six main themes, we attempt to address the complexity of the future with a set of pointers that will help organisations better prepare for what’s to come.

The following implications are a result of that work, and we thank the participants for their insight. Even though they are embedded within the narratives of The Future of Work Perspectives (SR-1092A) and are part of each story we tell in this set of forecasts, we’ve included the implications here as well, because recognising them is instrumental to getting there early. These are by no means the only implications. So take some time to reflect on them, and add to them as you plan your action steps to prepare for the future of work.

1. ORGANISATIONAL CULTURE AND DESIGN: PLAN FOR TRANSPARENCY

The evolution of technologies for ubiquitous, detailed, real-time reporting on everything means that almost every aspect of organisational life can be exquisitely documented and tracked. Organisations should plan for transparency from the outset in order to stay ahead; concealing anything will become increasingly difficult. Avoiding accountability will also get harder, and moving operations somewhere else in order to avoid accountability will not be a viable long-term solution. Companies that have tried to hide pollution by “outsourcing” polluting activities to subcontractors are likely to have to account for them. Organisations should err on the side of transparency, resorting to secrecy only when absolutely necessary and as a last resort. Now is the time to examine all aspects of your operations—from human resources to manufacturing and distribution—through the transparency lens.

2. TOOLS: PHYSICAL PLACE IS A PART OF THE TOOLKIT

An important outcome of the visible world will be the convergence of computational tools and the physical workplace. Organisations need to think about how to use the physical place itself as a part of the information toolkit along with laptops, mobile phones, and printers. The need to manage large volumes of complex visual information will lead to workplace design needs that expand the size and scope of digital displays, while also spreading access to “windows” on data into non-traditional spaces for computing hallways, social spaces like water coolers, and outdoors. Plan for workplaces that enable “progressive disclosure,” i.e., the ability to reveal higher-level functionality, as users are ready for them.

3. PHYSICAL SPACE: DESIGNING FOR HEALTH

Healthy workplaces are no longer just about a lack of harmful toxins, fluorescent lights and cubicles are giving way to green spaces and sunlight. Bio-Citizens will expect workplaces that reflect their understanding of health as a value. Successful future workplace design will bring together large-scale architectural understanding of the workplace community, healthy spaces, anthropological understanding of small group dynamics, and information science. Ergonomic consultations will go from optional to mandatory as employers strive to ensure that their employees are healthy and, as a result, productive. Sensors and other advanced technologies will help to make the “healthiness” of the work environment visible. Offering incentives for healthy behaviour could prove a good way to attract Bio-Citizens, but watch out for making such incentives coercive and, thus, perceived as paternalistic and intrusive.

4. RECRUITMENT: ATTRACTING – BUT NOT NECESSARILY HIRING – THE BEST

Achieving the diversity required to amplify organisations means tapping into multiple intelligences, work styles, skills, media choices, and geographies. The products of collective intelligence are successful because each person makes contributions in the area she chooses and in the manner that suits her best. For an organisation to amplify itself, it must tap the external network of non-employees and entice them to contribute in the areas of their expertise. Beyond hiring, the goal must be to attract, engage, and connect amplified individuals to the organisation so that they view it as the most important and powerful node in their highly networked and distributed career paths. Organisations need to think in ways that suit these individuals rather than traditional promotions and compensation packages—increased freedom, ability to choose particular projects, ability to publish outside, etc.

5. SKILLS: TRAINING IN VISUAL LITERACY

Organisations and individuals will have to use new types of highly sensory- rich interfaces—artistic visualisations, simulations, and ambient and other interfaces utilising sound, movement, colours, etc.—to take advantage of massive amounts of data flooding the workplace. The next generations of workers will need to possess visual literacy and have the ability to present, analyse, and interact with visual information. Visual acumen is a survival skill in the future workplace. Younger workers who have grown up in the world of video games and virtual reality will naturally be more adept at this, but just because someone is younger doesn’t mean they will automatically possess such skills. Think about how to promote visual literacy standards for your organisation, how to identify those with the best visual skills, and how to train employees to become proficient in dynamic, image-moderated collaborative explorations of data.

6. HUMAN RESOURCES: MATHEMATICIANS AND NEUROSCIENTISTS?

Hiring practices, training, and management will draw from a deeper understanding of neuroscience and complex behavioural algorithms. Already, start-ups have emerged that promise to train individuals to increase their mental acuity, focus, and efficiency based on brain science. Company- specific algorithms will be developed for software that vets new applicants based on detailed questionnaires. As science comes to work, human resource managers will need to become versed in these new sciences. While most HR personnel will likely not be scientists, they will need to be able to understand the language of these disciplines and collaborate with scientists in order to assess and implement some of the new tools. A manager may not know how to design Monte Carlo simulations to optimise workflow, but he must be able to speak the language of mathematicians to understand the theory behind suggested methods.

7. LEADERSHIP: GIVING VOICE TO THE COMMONS

The world of amplified individuals calls for a different type of leader—not ones who dictate and make pronouncements, and not necessarily those with the most charisma and unitary vision. Rather than assuming absolute authority, effective leaders in amplified organisations must work to understand the values and opinions of their employees to enable a productive dialogue about what the group embodies, what it stands for, and, thus, how it should act.

Good leaders will increasingly need to see themselves as “speakers for the commons”—those who are able to give voice to what the commons members, including non-employees, want, and to provide the infrastructure and resources for accomplishing this. It doesn’t mean the end of vision; the vision of amplified organisations is not enforced from the top but emerges in dialogue and conversations from the bottom up, dependent upon cooperation and support of constituents.

Institute for the Future www.iftf.org

Posted in ABPOA, Business, Cloud Computing, Conferences, Crowdsourcing, Environment, Events, News Archive, Working from HomeComments (3)

NelsonHall’s global ‘Targeting Payroll Outsourcing’ report

The latest report findings from NelsonHall, a leading BPO analyst and advisory firm, measured the transfer of operational responsibility for all payroll services, from the client to a services provider, for contracts of 12 months or more.

The report estimates the competitive Asia Pacific payroll outsourcing market to be valued at $431 million. Specifically, emerging markets such as China and India will experience strong growth whilst consistent growth in Australia will continue.

Mary Sue Rogers, Global Managing Director of Talent 2 HR Managed Services said:

“We know from market research that outsourcing is now being considered as a strategic solution for many oganisations, rather than just a cost-cutting tactic in response to the GFC. We are seeing steady growth in the Payroll outsourcing market despite the sluggish economy, with an increasing number of organisations looking for multi-country and consolidated domestic payroll.

The leading players are reflected in the table below:

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Outsourcing to impact 188 Westpac jobs

Australian bank Westpac confirmed 188 local jobs would be affected by a shift in its technology sourcing strategy which is slated to see some internal work handed off to external suppliers.

Last week the bank’s chief executive Gail Kelly revealed it was in the advanced stages of working through a change to its sourcing strategy for application development services. Although at the time Kelly acknowledged some jobs would be affected, the executive didn’t go into detail as to precisely what the bank’s new strategy would entail. Yesterday some of those details started to become clear, with the Financial Services Union, which counts some Westpac staff amongst its members, issuing a statement claiming the cuts were slated to affect 188 staff.

“Earlier this week Westpac announced to staff that we were changing the way we outsourced some roles for Enterprise Testing Services in one part of our technology business,” confirmed a statement by Westpac this afternoon. “As part of the initial consultation process, we outlined that there will be around 188 roles in scope as part of the new sourcing arrangements we are transitioning to.”

The union claimed the job cuts were part of “an 18 month-long program” of reducing Westpac roles, and replacing those roles with outsourced and offshore providers. And, it pointed out, the cuts came in the wake of Westpac announcing a record net profit of $6.9 billion.

Furthermore, the union claimed Westpac had attempted similar outsourcing initiatives previously, but failed. “What makes this announcement more surprising is that Westpac itself has recognised that past outsourcing and offshoring of jobs has failed, as evidenced by 600 jobs previously outsourced to HP in Adelaide being returned to Westpac,” the union wrote. “Short term cost savings don’t add up in the long run, and Westpac should recognise that this is also the case with this latest decision to outsource and offshore IT jobs.”

The bank said the future of its outsourcing initiative was not yet clear. “The final impact on our Full-time staff will not be known for a number of months as we work through the transition,” the bank said. “Where there are reductions in roles, we will use natural attrition where possible, redeploy employees to other roles, and reduce temporary/contract staff first to minimise the overall impact on our technology workforce. The majority of these in-scope roles will come from head-office in Sydney.”

Source: Delimiter

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