In fact, of the entire amount of £1.2 billion work outsourced by the BT Group every year, approximately 70 per cent is bagged by the IT and ITeS services providers in India . The sources said that the Indian firms employed as many as …
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Numerous outsourcing companies released results following the end of the quarter, with Accenture (NYSE:ACN) leading the pack. It was currency volatility, problems in Europe, and attrition which were some of the major issues that were raised with the release of results. The general flavor in the outsourcing space has been that business in outsourcing is steadily on the rise with business process outsourcing and IT outsourcing coming into major play, with the big winners being Indian companies, Tata Consultancy Services Ltd (NSE:TCS), and HCL Technologies (NSE:HCLTECH), as well as company Xerox Inc (NYSE:XRX). Management consulting, technology and outsourcing company, Accenture , was the first of its peers to release results on the 24th of June . The company reported 3Q Fiscal 2010 Results period ending May 31, 2010. Accenture did not disappoint analysts after reporting higher than expected quarterly results, rising 8% in revenue compared to the previous year, above analysts’ expectations. As the first of its Indian outsourcing peers, expectation was high for Infosys (NASDAQ:INFY); unfortunately the company failed to deliver, and released disappointing results for the quarter on the 13th of July. The company posted a 2.6% drop in profit to $318 million. The company’s CEO, S When people say outsourcing, a select few countries would immediately come to mind. But while the economy continues its recovery and business continues to thrive, more and more places are being tagged as ‘the best’ or ‘the hottest’ outsourcing destination. Not all outsourcing destinations however were created equal, which is why many outsourcing providers have branched out in one place or another, some obviously preferring that destination, some to sample the local flavor to see if they’ll prosper there. June Signals Expansions Into Different Regions For June, three big companies announced expansions, all in different parts of the world. First of which is French company Teleperformance (EPA:RCF). The company announced on the 7th of June that they are expanding their presence in the Asian market by establishing an Asian regional headquarters in Makati City, Philippines. Known for the reliable source of quality manpower in terms of customer relationship management, the Philippines has long been one of the preferred outsourcing destinations, primarily because of the talent, and quality of manpower that can be found in the country. Commenting on the development, David Rizzo, President of Teleperformance Asia Pacific said, “The new center and Asia/Pacific regional headquarters are in an ideal setting for us. It offers access to the highest caliber of talent to help meet and exceed the quality of service goals of our Clients and partners.” Notably, Teleperformance had only just this January announced another center opening in the Philippines, which speaks volumes of just how much the company views the Philippines as an outsourcing destination. New deals and renewals in the IT outsourcing space dominated the news last June and July, but other industries also fared well. In terms of companies, it was company, Accenture (NYSE:ACN), who was able to score multiple deals, signing contracts mostly from the US but also in the UK and China. Other companies, such as HP, also signed multiple deals. Here’s a run-down of the notable deals signed last June and July 2010. In the US, Accenture signed on the 3rd of June, a contract with the US Department of the Navy for an indefinite delivery/indefinite quantity (IDIQ) contract to provide financial management services. The contract is for a one year base period with four one year options, which will gain Accenture approximately $181 million. Following that, on the 14th of June, Accenture signed a contract with Henkel to deliver application management services for their North American operations. According to the press release, the contract was written to complement an existing seven year global application maintenance and support agreement last August 2009 It was a year ago when analysts were estimating that IT will begin to move back to the US and IT outsourcing to other countries such as India, and China, will wane. But weathering through challenges such as language barriers, and political opposition, IT still remains as one of the most viable outsourcing services to date. Just these past two months, a number of outsourcing deals have come through from major and minor players alike – a testament to the viability of the IT outsourcing business . On the 1st of June, Xerox company (NYSE:XRX) ACS, and greeting cards giant , Hallmark signed a long term IT outsourcing contract renewal. The agreement, slated as a five year extension of an original $230 million, seven year deal between the two companies, is for the continued IT infrastructure and support services of ACS to Hallmark. If you’ll recall the original ACS-Hallmark contract, which was signed in 2004, had been of particular interest since ACS had specifically established a Kansas City based data center for the contract. With the recent renewal of the deal, ACS will still continue with the Kansas data center, as well as establish support offices and facilities in Missouri, Connecticut and other Kansas cities. Meanwhile, tech giant IBM (NYSE:IBM) closed two deals in the IT outsourcing space. The first deal , which was initially signed last March, was officially announced on the 3rd of June. The deal is with Opus Software Solutions’ subsidiary, ElectraCard Services (ECS) and is a ten year multi-million dollar agreement for providing business continuity services to ECS. This includes management of ECS’ disaster recovery site in Bangalore, and their IT infrastructure in Mumbai, India. The second deal is a five year Integrated Managed Services (IMS) agreement with Indian company, Quippo-WTTIL, and had been initially signed last May. IBM will be providing them with a technical support system for their India operations, including helpdesk and end-user services. The deal was announced on the 17th of June. Software outsourcing to India has been growing over the years and there is no doubt that India till this date remains unmatched in this field. With over two decades of rich software development experience, sound IT infrastructure and … Now, to win new clients and take on more sophisticated work, legal outsourcing firms in India are actively recruiting experienced lawyers from the West. And U.S. and British lawyers — who might once have turned up their noses at the … Software Outsourcing to India has grown tremendously in the last few years. India boasts of the one the finest software professionals on the earth and world-class IT infrastructure. There are many Indian software development companies … Software Outsourcing to India has grown tremendously in the last few years. |
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