Author Archive
Posted on September 6, 2011 by Atul Vashistha
Winds of change whistles through outsourcing industry
December 28th 2010 – Tuesday
By Atul Vashistha
Staffing augmentation, labour arbitrage and India. For many out there, outsourcing seems to be defined only by the above – people working for low compensation in locations such as India helping the client save significant monies.
That is outsourcing to them. However, the recent and continuing downturn in 2009 and 2010, has upset many notions and models that have been in place for over a decade. What was considered to be the norm or the normal as far as outsourcing is concerned, is now in flux and so requires different responses.
Take for instance, the call centre business. There was a time when India was the only market given due consideration, as far as setting up call centre operations was concerned. That notion has been dispelled by other markets such as the Philippines and Costa Rica, which have showcased themselves in exemplary fashion as far as the provision of voice-based customer support services is concerned. In similar manner, we see the rise of engineering services and local players in Brazil and Russia, increasingly emerging as a premier destination for the outsourcing of complex engineering and applications activities.
The above instances are just some of the many shifts and changes we are likely to continue to witness. In particular, they point towards an endeavour to be on the lookout for markets with newer skill sets, and not just go by established norms wherein predestinated markets such as India have long been considered to be the haven for any and every kind of outsourcing.
Spreading risk
In the same breath, it is vital that markets with access to equal or better technology processes are also identified. The situation is akin to the age old maxim wherein stock diversification is key to a healthy nest egg; depending on just one or more markets for all of one’s outsourcing needs is really not a very good idea. Increased attrition and competition for resources point to the need for geographic diversification. Besides skill sets and technology, there are other reasons for which alternate markets also need to be actively considered.
1 2 3 Next Page
via Outsourcing – Features – Winds of change whistles through outsourcing industry.
Posted on September 6, 2011 by Atul Vashistha
Samba nation plays the right tune
June 13th 2011 – Atul Vashistha & Sudeep Misra take a look at sourcing trends, traps and opportunities in BrazilDiversify your stock portfolio – this is a mantra we have been hearing for ages. Well, it is now ringing true in sourcing too! As global sourcing continues to grow, so does the interest in new locations. Companies are interested in new locations to diversify risk but also to better serve their own diverse operations or diverse needs.One of these rising destinations is Brazil. The nation is emerging as an alternative or complementary location to other offshore locations, with an interesting combination of characteristics that are similar but also very different from the traditional low-cost locations, such as India and Philippines. Brazil has a very a strong economy domestically, which was one of the least affected in the world by the economic downturn. Many of its Latin American neighbours are also experiencing strong growth in their GDP. The Latin America services market will reach US$31 billion in 2010, with a 10.4% CAGR through 2013. Brazil comprises about 40% of this total, with an expected growth rate that is higher than the regions average.Growth Rate Forecast for IT Spending 2009-2014 - Latin America Leads Spending GrowthSeveral US and European based suppliers are active in the country. IBM, Unisys, HP-EDS, Accenture, Capgemini and TelePerformance have offshore centres in Brazil. Even Indian firms such as TCS and Infosys are present here. More importantly, several strong local firms seem to have a head start, such as Stefannini, Tivit, BRQ, CPM Braxis, Ci&T and Politec to name a few. TRENDSThe IT services market in Brazil is characterised by the emergence and growing maturity of local service providers, continuous investment in Brazil-based operations, the growth of all major global providers participating in the Brazil market, and the arrival of the leading Indian players into Brazil notably TCS, Infosys, Wipro, and to a lesser degree HCL and Cognizant.All these players have always expressed that they could not afford to be absent in the promising Brazilian market. In fact, Capgemini’s recent partial acquisition of CPM Braxis and Chilean IT Company Quintec’s plans to merge with Brazil’s Politecis a clear signal to Brazil’s and LatAm’s potential. The various players have also indicated that they expect a solid, steady growth of the internal market in the next one to two years, with a long-term perspective that more-decisive support from the government will make service costs more competitive abroad.
via Outsourcing – Features – Samba nation plays the right tune.
Posted on August 21, 2011 by Atul Vashistha
Survey: Is Brazil IT for sale? | IT Decisions.
CPM-Braxis with capgemini; Politec now with Indra ….
Why are Indian majors not there in a big way yet? In fact one would expect to see more USA players in there. Accenture and IBM of course are there but others are still missing!
Posted on July 13, 2011 by Atul Vashistha
Forbes India Magazine – How Chandra Helped TCS Climb To The Top.
Worth reading. One of the “Built to Last” firms.
Posted on May 14, 2011 by Atul Vashistha
Tech talents from India, other countries leaving Silicon Valley – USATODAY.com.
How do we stop this brain drain? Our immigration policies do not reflect the needs. We are exporting innovation with these skills leaving our shores.
Posted on April 26, 2011 by Atul Vashistha
Home | Swell.org.
Love the idea and so wanted to share it!
Swell.org, an online community of people in business eager to get involved with philanthropic causes around the world. By identifying your strengths and areas of interest, Swell.org, in partnership with Executives Without Borders, aims to leverage the same skill sets that are used to make business successful with humanitarian projects that alleviate suffering.
Posted on April 24, 2011 by Atul Vashistha
Learning from Amazons cloud collapse – CNN.com.
A must read! Basic principles remain the same. For critical systems, one needs to have a solid BCP and DR system in place.
Posted on March 26, 2011 by Atul Vashistha
Global Services – Accenture Raises Outlook, Shares Rise.
The market is showing strength for global players that are well positioned to go beyond labor arbitrage savings. - Atul Vashistha
Accenture said it expects earnings per share for the full fiscal year to be between $3.22 to $3.30 — above a December forecast of $3.08 to $3.16. The outlook also beat the average analyst forecast of $3.14 per share, according to Thomson Reuters I/B/E/S.
Accenture helps companies cut costs and improve operations through consulting, outsourcing and other services. Clients who had cut back during the recession have recently begun investing again, to position themselves for an economic recovery and to keep up with new technologies like cloud computing.
Chief Executive Pierre Nanterme said demand for the company’s services was strong, with bookings in the second quarter totaling $7 billion. Bookings in the previous quarter had been $6.3 billion.
Quarterly revenue before reimbursements rose to $6.5 billion from $5.5 billion a year earlier. Consulting revenue rose 20 percent year-on-year to $3.5 billion, while outsourcing revenue rose 13 percent to $2.5 billion, the company said.
Quarterly net income rose to 75 cents per share from 60 cents per share a year earlier.
Gross margin, however, fell to 31.7 percent from 32.7 percent a year earlier. The company blamed higher compensation as well as costs of hiring and training new employees to meet higher demand.
Shares in Accenture rose to $54.80 following the report, after closing at $51.96 on the New York Stock Exchange, up 2.5 percent during the regular session.
Source:Reuters
