Recent Offshoring and Outsourcing Headlines – April 29
Standard Chartered Plans To Double India BPO Staff By Mar 2010
April 27th, 2009
Source: WSJ
Standard Chartered plans to double their employee base in India by March 2010.
Currently the company has around 1100 call center staffers in Bangalore and Chennai
Infy BPO to buy captive operations of clients
Source: EconomicTimes
Infosys BPO, the back-office arm of India’s second-biggest software exporter Infosys, plans to acquire captive operations of customers, Top Indian outsourcing cos as the company seeks to grow its share of the $80-billion global BPO market.
Almost two years ago, Infosys BPO acquired back office operations of Philips, which assured around $250 million in revenues over the next few years. The acquisition helped Infosys gain entry into Poland and other European countries.
More….
Early detection helped Genpact tackle slowdown
April 25th
Source: EconomicTimes
Everything was hunky-dory for India’s business process outsourcing industry back in 2007. Business was growing at a breathtaking pace;
prestigious contracts were being announced every other day, and all top-notch BPO firms were adding employees by thousands . So when the country’s largest BPO firm, the Gurgaon-based Genpact, started belt-tightening , several eyebrows were raised.
The company kept salary hikes in the range of 7-8 %, compared with the industry norm of 10-12 %. Entry-level salaries were frozen. To control infrastructure costs, it took up space in SEZs at rates 50% lower than market rates and expanded into tier-II cities, where costs were 25% lower. Critics who missed the point then got their answers two years later when Genpact announced a 122% increase in its annual net profit to $125.1 million for the financial year ended December 2008. Revenues grew by 26.4% to $1.04 billion. While it got increased business from existing clients, cuts in the selling , general and administration (SG&A ) expenses helped Genpact increase profitability—at a time most of its peers struggle to stay profitable.
TCS to focus on offshoring, to move staff back to India
April 25th, 2009
Source: EconomicTimes
TCS is looking to increase their offshore percentage for delivery of projects to manage cost and get onshore folks back to India. The company plans to do fresher hiring but no lateral hiring for FY10. Like any other outsourcing firm, TCS is looking at all levers to manage cost as top line slows down.
TCS aims to double India Revenues
24th April
Source: IndiaTimes
TCS earns about $500 million of revenue from domestic markets (8.2%) of their overall revenue and plans to double it. A number of other vendors are looking to domestic markets to grow their market share. Interestingly though the largest outsourcing vendor in India is IBM and other Multi National Firms have developed a strong foothold in Indian domestic markets. Some deals which TCS is bidding for are from the Indian government and public sectors including – Indian Post, Indian Railways, ONGC, LIC and SBI.
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Indian IT firms try to reduce or push out benched staff
27th April 2009
Source: Business Standard
A large bench (people without assigned work) is generally considered to be an asset, a tool to control attrition. But with the global slowdown hitting the sector, it is proving to be a liability.
This is forcing companies to devise ways to reduce bench strength, by posting in other areas and paying them less till they become productive assets.
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Top 3 IT cos see revenue growth despite slowdown
26th April 2009
Source: The Hindu Business
The article compares the revenue growth overall from 2008 to 2009 and certain key verticals where the growth has happened for TCS, Infosys and Wipro. North America still remains the dominant revenue source for the offshoring vendors and the growth for the offshoring vendors is happening more in the non ADM areas such as BPO and Infrastructure services.
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Co-operative Financial Services picks Infosys for major overhaul
27th April 2009
Source: ComputerWorld UK
Infosys to replace back-office and sales channel systems in its retail banking and corporate banking operations.
The Co-op bank will also implement Finacle core banking, CRM, which will link both CFS banking and insurance businesses, to enhance cross selling, and e-banking solutions for its home-market operations.
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Tech Mahindra hit by BT woes
27th April 2009
Source: LiveMint
Tech Mahindra has seen a sharp decline in revenues from it’s largest client BT Group Plc (16.8% drop). This is on top of a 18% drop last quarter. Tech Mahindra also has to deal with the Satyam integration during these tough economic times.
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HCL BPO signs 5-yr deal with UK water utility
28th April 2009
Source: Business Standard
HCL BPO, a division of HCL Technologies, has signed a five-year deal with a Britain-based water utilities client that has around 5,000 employees. As of now, the company has less than 100 people working for the client, but it expects to add more by June-end.
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