Indian cities best for outsourcing, As per latest Survey by Nasscom.
New Delhi is the most attractive city in the world for companies looking to set up offshore back office operations thanks to its cheapness and a large pool of skilled labour, a new survey by a US-based consultancy says.
The next six slots in the league table produced by outsourcing consultancy neoIT are also filled by Indian cities -- Bangalore, Hyderabad, Mumbai ,Pune,Chennai and Kolkata.
"The labour pool remains a huge advantage in India -- you don't have to spend lots of money training people up," Sabyasachi Satyaprasad, a senior director at neoIT, told reporters in New Delhi.
Vietnam's Ho Chi Minh City is the most attractive non-Indian destination for off shoring jobs, followed by Manila, Shanghai and Moscow.
NeoIT, which has offices in India and the Philippines, used feedback from more than 60 of its clients to rank outsourcing destinations based on their infrastructure, costs, talent pool, language skills and other factors.
New Delhi edged above other Indian cities due to its relatively low cost of living and, by Indian standards, fairly good infrastructure.
Friday, September 25, 2009
Wednesday, September 16, 2009
BPOs eye global footprint to meet customer needs
The Indian business process outsourcing industry is following in the footsteps of information technology service firms, increasing its global footprint as it eyes bigger and more complex work from clients.
The demand for global solutions is pushing Indian BPOs to grow aggressively into global centres, said a senior executive. For instance, in the past 18 months, WNS has expanded its presence in the Philippines, Romania, and now Latin America.
"All the important wins that we've talked about have a non-India component to them. This is very important from our perspective, as we talk about our global footprint, global strategy and global operations strategy," recently said Neeraj Bhargava, CEO of WNS.
Analysts believe the trend will only increase in the days ahead, as clients look for outsourcing partners that can support critical processes from multiple delivery centres.
"Gone are the days when you could deliver from just one geography. The multi-geography need is arising out of de-risking geography presence, need for specific skill and language capability. For instance, we have seen many clients prefer having a presence in the Philippines as a de facto to India," said Sabyasachi Satapathy, partner Tholons Advisory.
N V Tyagarajan (Tiger), COO of Genpact, believes that with global customers on board, Indian BPO players will have to expand their operations in other geographies.
He explains that if one is serving the Eastern European market, the service provider will have to be present in a country like Romania for language capabilities, "if you are serving the US financial sector, where English is the prevalent language then you can serve from India and the Philippines. Rather, clients are asking for work to shift to the Philippines, due to cultural affinity," added Tiger.
Genpact has centres in China, Guatemala, Hungary, India, Mexico, Morocco, the Netherlands, the Philippines, Poland, Romania, South Africa [ Images ], Spain and the US.
"We have seen customers from the really badly hit economies, i.e. the US and UK, asking if a certain work can be done onshore. Besides, as relationship with existing clients deepen and as we do more complex work, we need to have onshore presence," said Tiger. Genpact also has ramped up its US centre numbers, especially high-end work.
Satapathy adds that clients were earlier more concerned about cost reduction, but now its about domain knowledge and skills. "Take procurement BPO. Indian players have not been able to succeed in taking this to an offshoring model. The reason being lack of right capability and skill of delivering. Nowadays nearshore, onsite capabilities are as important as offshore," he added.
Anando Mukerji, CEO of Firstsource, feels not having a nearshore or onsite presence means on business opportunity. The company has close to 4,000 employees in the US.
Its biggest centre, in Buffalo, has close to 600 employees. "We are ramping our numbers in the US. This quarter, we will add 100 more in the US as demand for work increases. One of the reasons for this is customers asking for higher onshore presence due to the protectionist environment, but for us, it is also coming from business needs," said Mukerji.
However, Sudin Apte, senior analyst, Forrester, believes that while clients are asking for Indian-plus-one geography, India will continue to get the bulk of work.
"The trend is across segments like IT services and product engineering, as well as BPO. This is happening due to the political environment and the need for derisking; constantly working at different hours is impacting quality and language and cultural issues. But 70 to 80 per cent of work will continue to be delivered out of India," added Apte.
The demand for global solutions is pushing Indian BPOs to grow aggressively into global centres, said a senior executive. For instance, in the past 18 months, WNS has expanded its presence in the Philippines, Romania, and now Latin America.
"All the important wins that we've talked about have a non-India component to them. This is very important from our perspective, as we talk about our global footprint, global strategy and global operations strategy," recently said Neeraj Bhargava, CEO of WNS.
Analysts believe the trend will only increase in the days ahead, as clients look for outsourcing partners that can support critical processes from multiple delivery centres.
"Gone are the days when you could deliver from just one geography. The multi-geography need is arising out of de-risking geography presence, need for specific skill and language capability. For instance, we have seen many clients prefer having a presence in the Philippines as a de facto to India," said Sabyasachi Satapathy, partner Tholons Advisory.
N V Tyagarajan (Tiger), COO of Genpact, believes that with global customers on board, Indian BPO players will have to expand their operations in other geographies.
He explains that if one is serving the Eastern European market, the service provider will have to be present in a country like Romania for language capabilities, "if you are serving the US financial sector, where English is the prevalent language then you can serve from India and the Philippines. Rather, clients are asking for work to shift to the Philippines, due to cultural affinity," added Tiger.
Genpact has centres in China, Guatemala, Hungary, India, Mexico, Morocco, the Netherlands, the Philippines, Poland, Romania, South Africa [ Images ], Spain and the US.
"We have seen customers from the really badly hit economies, i.e. the US and UK, asking if a certain work can be done onshore. Besides, as relationship with existing clients deepen and as we do more complex work, we need to have onshore presence," said Tiger. Genpact also has ramped up its US centre numbers, especially high-end work.
Satapathy adds that clients were earlier more concerned about cost reduction, but now its about domain knowledge and skills. "Take procurement BPO. Indian players have not been able to succeed in taking this to an offshoring model. The reason being lack of right capability and skill of delivering. Nowadays nearshore, onsite capabilities are as important as offshore," he added.
Anando Mukerji, CEO of Firstsource, feels not having a nearshore or onsite presence means on business opportunity. The company has close to 4,000 employees in the US.
Its biggest centre, in Buffalo, has close to 600 employees. "We are ramping our numbers in the US. This quarter, we will add 100 more in the US as demand for work increases. One of the reasons for this is customers asking for higher onshore presence due to the protectionist environment, but for us, it is also coming from business needs," said Mukerji.
However, Sudin Apte, senior analyst, Forrester, believes that while clients are asking for Indian-plus-one geography, India will continue to get the bulk of work.
"The trend is across segments like IT services and product engineering, as well as BPO. This is happening due to the political environment and the need for derisking; constantly working at different hours is impacting quality and language and cultural issues. But 70 to 80 per cent of work will continue to be delivered out of India," added Apte.
Friday, September 11, 2009
Why Outsourcing Services are Becoming Popular
That would be worth mentioning that there are plenty of reasons as to why outsourcing services have become so very popular. However, if we were to identify the most prominent of those reasons, it would certainly include the ability of outsourcing service providers, especially those that are based in developing countries such as India, to achieve, sustain and deliver the requisite cost and efficiency benefits as per client demands. Competitive pressures have increased considerably in recent years and since reducing costs and improving efficiency makes it a lot easier to face up to the competition, outsourcing has become the preferred choice for businesses worldwide.
Apart from the benefits described above, there are other reasons as well that justify the ever-increasing popularity of business process outsourcing. Another good reason for the growing popularity is that offshore outsourcing services allow businesses to concentrate more on their core processes such as production, sales, business expansion, mergers & acquisitions etc. When businesses have enough time and resources required to optimize core processes, it becomes easier for them to achieve targeted organizational goals and objectives. This naturally allows them to build competencies, something that is a prerequisite for emerging a winner in today's highly competitive market. It is not surprising then to know that more-and-more businesses are now choosing offshore outsourcing in order to boost their business interests.
Since competition is anticipated to intensify in the near future, it would be correct to assume that demand for business outsourcing will increase as well. That bodes well for the outsourcing services industry, as far as its future is concerned.
Apart from the benefits described above, there are other reasons as well that justify the ever-increasing popularity of business process outsourcing. Another good reason for the growing popularity is that offshore outsourcing services allow businesses to concentrate more on their core processes such as production, sales, business expansion, mergers & acquisitions etc. When businesses have enough time and resources required to optimize core processes, it becomes easier for them to achieve targeted organizational goals and objectives. This naturally allows them to build competencies, something that is a prerequisite for emerging a winner in today's highly competitive market. It is not surprising then to know that more-and-more businesses are now choosing offshore outsourcing in order to boost their business interests.
Since competition is anticipated to intensify in the near future, it would be correct to assume that demand for business outsourcing will increase as well. That bodes well for the outsourcing services industry, as far as its future is concerned.
Wednesday, September 2, 2009
How to make Call Center Outsourcing Businesses
Contact center outsources can help to set your company apart from your competitors. With the right kind of call center outsourcing for small businesses you can reach your customers better with the outsource call center message you deliver and assist customers with an inbound call center that will bring them back to your business. Begin making the most of call center outsourcing by turning to a call center business to market your company.
Call center outsourcing companies can perform market surveys to find out you’re your customers want. Use a specialized outsource call center that has proven results with telemarketing efforts. Whether you use call center outsourcing providers fro marketing, as a help desk center or to direct client inquiries, make the most of call center outsourcing dollars with measurable results in a variety of ways.
1. Make sure you’re using the best call center operations
2. Hire an inbound call center to get you on track.
3. Measure the results of your call center
Action Steps
The best contacts and resources to help you get it done
Avoid waste with good information about call center outsourcing providers
Outbound call center management can take up a good chunk of your budget so you should make sure that you are putting your resources into call centers that work. Through client surveys, and ultimately through your sales figures, you should have a good handle on the most appropriate outbound call center management for your company.
Bring in call center operations to increase sales
After the surveys and plans are in place, the next step is to find the best place to put your calling requirements. An call center outsourcing for small businesses can help sort though all the choices as well as design your marketing pitches and recommend other lines of communication that could help increase your business profitability.
Measure call center business results
Keep track of the number of calls taken by the inbound call center and make sure you get reports of the disposition of those calls to ensure that you're getting your money's worth from the vendor. With the right kind of call center operations, you can be sure that your resources are being used in the best way.
Tips & Tactics Helpful advice for making the most of this Guide
Try a short-term contract with an outsourced call center if you're not sure the service can help your business. Look at the results before making along term commitment.
Call center outsourcing companies can perform market surveys to find out you’re your customers want. Use a specialized outsource call center that has proven results with telemarketing efforts. Whether you use call center outsourcing providers fro marketing, as a help desk center or to direct client inquiries, make the most of call center outsourcing dollars with measurable results in a variety of ways.
1. Make sure you’re using the best call center operations
2. Hire an inbound call center to get you on track.
3. Measure the results of your call center
Action Steps
The best contacts and resources to help you get it done
Avoid waste with good information about call center outsourcing providers
Outbound call center management can take up a good chunk of your budget so you should make sure that you are putting your resources into call centers that work. Through client surveys, and ultimately through your sales figures, you should have a good handle on the most appropriate outbound call center management for your company.
Bring in call center operations to increase sales
After the surveys and plans are in place, the next step is to find the best place to put your calling requirements. An call center outsourcing for small businesses can help sort though all the choices as well as design your marketing pitches and recommend other lines of communication that could help increase your business profitability.
Measure call center business results
Keep track of the number of calls taken by the inbound call center and make sure you get reports of the disposition of those calls to ensure that you're getting your money's worth from the vendor. With the right kind of call center operations, you can be sure that your resources are being used in the best way.
Tips & Tactics Helpful advice for making the most of this Guide
Try a short-term contract with an outsourced call center if you're not sure the service can help your business. Look at the results before making along term commitment.
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