Global Services Blog

U.S.-Colombia Trade Agreement | Office of the United States Trade Representative

Posted on October 23, 2011 by AtulNo Comments

U.S.-Colombia Trade Agreement | Office of the United States Trade Representative.

Finally, a key partner is recognized!

Outsourcing Resolutions Vendors Should Make in 2011  – Services – Business Issues

Posted on January 5, 2011 by AtulNo Comments

Outsourcing Resolutions Vendors Should Make in 2011  – Services – Business Issues. By Stephanie Overby

Think it is right to kick off 2011 with some resolutions. Suggest buyers look at these too since they can do the same!

Outsourcing market: Too much dependence on India is seen to be a risk – The Economic Times

Posted on November 27, 2010 by AtulNo Comments

This is the reason why in mid 2009, Neo Group launched its “Global Supply Risk Monitor” service. Too much geographic concentration is not healthy, just like how many us diversify our stock or investment portfolios.

BANGALORE: The Mumbai terror attack of 2008 created a term that is increasingly coming into the lexicon of IT outsourcing, India plus one. Some attribute the origin of that term to Forrester Research , which, following the terror attack and the Satyam scandal, recommended that companies should derisk by spreading their outsourcing operations beyond India, to at least one other country. Recently, Hewlett-Packards VP of enterprise services Robb Rasmussen said in an interview to CIO.com that a lot of HP clients want an India-plus-one strategy. “Historically, theyve had a presence in India, but to mitigate risk,theyd like to have some assets somewhere else,” he said. Tom Georgens, CEO of storage company NetApp , told TOI last month that the company needed to diversify from India, which is currently its second biggest site, the first being its California headquarters. “There are risks of inflation, the infrastructure may not catch up, and there are any number of things that are beyond our control,” he said. India currently dominates the outsourcing market. A survey by Capgemini, in partnership with Harris Interactive, which was released in September this year, found that more than 60% of the US companies surveyed were outsourcing to India. China came in second at 27% and Latin America at 25%. Most estimates indicate that India has well over a 50% share of the total outsourcing market. But current trends suggest this figure will come down. John C McCarthy, VP and principal analyst in Forrester Research, says clients are increasingly looking at an India-plus-one strategy to hedge geopolitical risks. Firms are also seen to need to curry favour with local governments for local licenses and business, and with more and more countries jumping on the offshoring bandwagon and offering themselves as competitive locations, global firms are being compelled to give some of the outsourcing business to those geographies.

via Outsourcing market: Too much dependence on India is seen to be a risk – The Economic Times.

An IAOP Achievement: Certifications are now recognized by DOL

Posted on November 13, 2010 by AtulNo Comments

Certification Details for Certifications by Keyword Search – Certification Finder – Americas Career InfoNet.

IAOP certifications and trainings are now approved by and listed with CareerOneStop which is sponsored by the U.S. Department of Labor, Employment and Training Administration. IAOP certifications are listed in the online directory, Certification Finder.  IAOP is included as a Workforce Eligible Training Provider (ELT), which is established in compliance with Title 1 of the Workforce Investment Act (WIA) of 1998 to present a broad and diverse selection of training choices to support employment goals of individuals.  WIA funding for full or partial reimbursement of training, education or certification is administered and approved at the state level and varies by needs of each individual, who must apply at their local OneStop Center.

WIA services and funding are available to job seekers, laid off workers, youth, incumbent workers, new entrants to the workforce, veterans, persons with disabilities and employers.

All IAOP certifications (COP, aCOP, COS-HR, COS-TP, COS-F& A) as well as the Online COP Master Class and the Online Outsourcing Governance Workshop (NEW!) are now recognized and approved by the Dept of Labor and CareerOneStop network.   This means, that funding is available to qualified candidates, on a state-by-state level to pay for some or all of the cost of training or certification. New York State has us fully listed and approved as a Workforce Eligible Training Provider (ETPL). Washington State approves anything approved in other states especially NY, without us having to separately apply and list.  Acceptance/approval at the state level will be a state by state thing, depending on demand.

The Cohen Group: Outsouring Benefits USA

Posted on October 25, 2010 by AtulNo Comments

The Cohen Group:

The Wall Street Journal

OCTOBER 12, 2010

Obama and the Politics of Outsourcing
For every job outsourced to Bangalore, nearly two jobs are created in Buffalo or other American cities.

By William S. Cohen

In the opening scene of the new NBC comedy “Outsourced,” lead character Todd Dempsey arrives at work to find the call center he is supposed to manage has been moved to India. Suddenly a brick flies through the window with an angry anti-outsourcing message attached. Todd’s boss laughs and adds it to a pile of bricks beside his desk.

In recent weeks, Congress and the AFL-CIO have thrown some bricks of their own through the windows of American businesses. Last Thursday the union unveiled a new searchable database of more than 400,000 U.S. companies and subsidiaries it says have shipped jobs overseas. The database is part of organized labor’s campaign to harness anti-outsourcing sentiment to energize union voters for the midterm elections. Meanwhile, the Senate voted 53-45 last month to raise taxes on companies that move operations abroad and lower payroll taxes for jobs created in the U.S.

The Senate vote was seven shy of the 60 needed to get the “Creating American Jobs and Ending Offshoring Act” past a filibuster, but the angry message was received loud and clear: Protectionist sentiment is taking hold in America and in Congress. If this sentiment is allowed to grow unchecked, the damage to our economy and relations with key allies could be severe.

A Wall Street Journal/NBC News poll released Sept. 28 found that outsourcing was the top reason cited by Americans as the cause of the country’s economic problems—and that for the first time in years a majority (53%) of Americans say free-trade agreements have hurt the U.S.

Politicians are responding to this antitrade sentiment by enacting protectionist measures. In August, Congress voted to raise fees for H1-B and L1 visas to discourage skilled workers from India and other countries from coming to the U.S. That same month, the state of Ohio banned the use of public funds for offshore services—including IT services from India.

Most people treat outsourcing as a zero-sum game—one foreign worker replaces one American worker. But this is not how the dynamic global economy works. In 2007, Matthew Slaughter, an economist at Dartmouth’s Tuck School of Business, published a comprehensive study of the hiring practices of 2,500 U.S.-based multinational companies.

He found that when U.S. firms hired lower-cost labor at foreign subsidiaries overseas, their parent companies hired even more people in the U.S. to support expanded operations. Between 1991 and 2001, employment at foreign subsidiaries of U.S. multinationals rose by 2.8 million jobs; during that same period, employment at their parent firms in the U.S. rose by 5.5 million jobs. For every job “outsourced” to India and other foreign countries, nearly two new jobs were generated here in the U.S.

Those new U.S. jobs were higher-skilled and better-paying—filled by scientists, engineers, marketing professionals and others hired to meet the new demand created by their foreign subsidiaries. Todd, the American call center manager transferred to India in “Outsourced,” keeps a framed picture of an executive suite back home on his desk—a reminder of the more prestigious job he is working towards. That job is more likely to be created because of the call center in India.

Putting up protectionist barriers against outsourcing also risks retaliation by foreign trading partners, whose businesses also hire workers abroad—including here in the U.S. A 2004 study by Prof. Slaughter titled “Insourcing: The Often Overlooked Aspect of Globalization” found that the number of American jobs created by the subsidiaries of foreign-based multinationals has more than doubled over the past generation.

In 2002 those subsidiaries employed over 5.4 million American workers, nearly 5% of total private-sector employment. They also paid American workers 31% more than their American nonsubsidiary competitors—an average of $56,667 per year. If Congress enacts legislation to stop American companies from outsourcing, foreign governments could do the same—and that could put at risk millions of high-paying jobs in the U.S.

During difficult economic periods, people are tempted to seek refuge in the false promise of protectionism. This is true of both America and India. Today, India maintains protectionist limits on foreign direct investment in such areas of its economy as infrastructure, insurance, retail and defense. And Indian politicians continue to put up obstacles to foreign investment in nuclear power. If India wants the U.S. Congress to resist protectionism, New Delhi has a responsibility to remove barriers against American investment.

Politicians are not above exploiting an issue by appealing to popular sentiment even when that sentiment is belied by economic reality. President Obama has succumbed to this temptation, warning that we should not tell U.S. companies that they will be treated the same “if you create a job in Bangalore, than if you create one in Buffalo.”

That may play well in Buffalo. But the fact is that for every job outsourced to Bangalore, nearly two jobs are created in Buffalo and other American cities. That’s a good deal for America—and something our president, and even Todd from “Outsourced,” should understand.

Mr. Cohen, a former U.S. secretary of defense, is CEO of The Cohen Group, a business consulting firm.

Colombia: Understanding the Nation’s Passion for Outsourcing | Nearshore Americas | Latin America Outsourcing Analysis and Expert Commentary

Posted on September 28, 2010 by AtulNo Comments

Colombia: Understanding the Nation’s Passion for Outsourcing | Nearshore Americas | Latin America Outsourcing Analysis and Expert Commentary.

“Colombia is Passion” is the brand the Colombian government at the helm at pro-export chose to brand the nation.  What one soon discovers in this beautiful country of beautiful people is a passion for business, music and family.  One also soon realizes that a passion for outsourcing already exists here too!

Colombia is a rising star in Latin America. Once perceived to be unsafe, the country has, over the last decade, transformed itself as one of the best locations to do business in Latin America, ranking higher by the World Bank in 2010, than countries such as Peru, Panama, Brazil, Chile and Mexico.

Citi, Henkel, Wyatt, Abbott and HP have captive centers here that serve as regional centers. International firms such as Telefonica, Telmex, Avianca, Greyhound and Tracfone leverage outsourcers such as Telemark, Teleperformance, Assenda, Avanza, Unisys, ACS and IQ Outsourcing.  Domestic firms such as Carvajal, Bancolombia, Suramericana, Banco Agrario and even the Colombian government are not much behind in leveraging outsourcing. Interestingly, Bancolombia leverages not just local suppliers like Assenda but also leverages global suppliers such as ACS, TCS andInfosys.

ROOM FOR IMPROVEMENT: While the country has a large population, the level of maturity of ITO and BPO operations is limited. No CMM 5 providers or six-sigma black belts are found easily. Call center operations are advanced but process discipline in other business process needs scale. So, if you are going to setup or outsource here, suggest that you invest in ongoing training and process discipline.

What makes Colombia such a passionate adopter and attractive destination for outsourcing?

A country with a population of 46 million with outsourcing friendly labor pools in multiple cities such as Bogota, Medellin, Cali, Baranquilla and even Periera, presents multiple options for buyers and suppliers. Thirty cities have a population of 100,000 or more.  Bogota produces 67,000 graduates every year, of which, 17,000 are technical graduates. At present, the combined workforce of IT and BPO industry in Bogota exceeds 50,000.

Labor costs in Colombia are very attractive with Bogota being one of the least expensive cities in the region. Labor cost for bi-lingual while higher than Spanish speaking employees, is 15-25% lower than comparable employees in Monterrey or Buenos Aires. Real estate costs are lower too than Mexico City and Sao Paulo.

More …. at Nearshore Americas

Outsourced: The NBC TV Series

Posted on September 24, 2010 by AtulNo Comments

Outsourced. Full disclosure first!

I am not an advisor to the TV show. The producers of the movie, Outsourced, who are now Executive Producers to the TV show, asked me about two years ago to advise them. We had fun thinking about how to leverage the movie for corporate training etc.

The movie is fantastic and think the TV show is warming up and could be a great series.  Will a US audience see this as too close to the downturn/personally or see the exaggerated humor?

I loved the first episode. While most call centers in India would not see a cow outside the window or have the social drama we saw, it reflected life in parts of India.

Let’s break it down.

US firm moves jobs to India. Check!

Asks a manager from here to help establish it in India. Check!

Eclectic group of employees. Check!  There are many races, languages, foods etc. in India. It is probably the most diverse country in the world.

The talker. Check!

The beauty. Check!

The American who is living in India and not immersing himself. Check!

Spicy food. Revenge of Monte…. Check!

Lack of American context. Check!  This is the reason why firms have to provide not just language but also provide cultural training.

All in all, this is going to be a fun show!  Loved the first episode!

Atul Vashistha

Genpact Celebrates Ten Years in China – MarketWatch

Posted on September 12, 2010 by AtulNo Comments

Global coverage matters in BPO and few have the coverage that Genpact does. More below!

Genpact Celebrates Ten Years in China – MarketWatch.

Oracle to Acquire Major IT Services Firm, In Our Opinion

Posted on September 9, 2010 by AtulNo Comments

I am posting this as I believe that thus is overdue!

Oracle to Acquire Major IT Services Firm, In Our Opinion.

Read more: http://www.softwareadvice.com/articles/enterprise/oracle-to-acquire-major-it-services-firm-in-our-opinion-1090910/#ixzz0z4RrLbS4

Outsourcing: Brazil Blossoms as IT Services Hub – CIO.com

Posted on September 9, 2010 by AtulNo Comments

Outsourcing: Brazil Blossoms as IT Services Hub – CIO.com.

CIO — CapGemini’s announcement last week that it would invest $298 million in Brazilian IT service provider CPM Braxis attracted a lot of attention in outsourcing circles. The move will give the Paris-based company a 55 percent stake in CPM Braxis, the option to buy the company outright within three to five years of the close of the deal, and the chance to leapfrog its global competitors already entrenched in the country.

“CapGemini is visionary, getting into the market ahead of its global competitors,” says Atul Vashistha, president of offshore outsourcing consultancy Neo Advisory. “This is a very promising strategic move.”

Meanwhile, CPM Braxis—a major South American outsourcer with 5,500 employees—is predicting 20 percent growth and $450 million in revenue in 2010.

The Brazilian company’s financial outlook is emblematic of the Latin American market for outsourced services, which is expected to grow 12 percent in 2010 to $8 billion, according to Forrester Research. That’s on top of the $19 billion that local companies will spend on IT consulting services.

Brazil—with its 250,000 IT professionals, 23,000 annual IT graduates, and infrastructure capable of supporting double-digit growth—is at the heart of the IT services supply chain in the Southern Hemisphere.

In fact, most major U.S. players including HP, Accenture and Unisys (UIS) have an escalating presence in Brazil, which has been largely unaffected by the recent global economic slump. In June, IBM (IBM) announced plans for its first South American research center, located in Brazil, as part of its strategy to sell technology and services to large, fast-growing emerging nations.

Indian outsourcers such as Satyam, Infosys and Wipro have been aggressively expanding in Latin America. Tata Consultancy Services (TCS), for example, has three global delivery centers, including an Oracle (ORCL) center of excellence and more than 1,500 employees working in Brazil. Home-grown providers, like Politec, Ci&T and Stefanini, have been expanding rapidly.

“They are looking to grow regionally and also tap the U.S. market, hiring resources in the U.S. and other South American [countries],” says Vashistha.

According to the Brazilian Association of Information Technology and Communication Companies (commonly known as BRASSCOM, an allusion to NASSCOM, which worked to fuel India’s IT industry), Brazil’s offshore outsourcing market hit $1.4 billion in 2008, rising 75 percent in a single year. An October, 2009 report from Gartner states that “Brazil’s economic footprint combined with having the largest domestic IT consumption in all of Latin America, as well as international recognition as one of the most promising and rapidly emerging economies, makes it a natural destination to evaluate for IT services.”

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