Saturday, January 28th, 2012

News & Analysis

  • Philippines’ Attrition is Spiking – Is Latin America Next?

    attrition ohno 300x199 Philippines Attrition is Spiking – Is Latin America Next?By Luke Bujarski

    High employee turnover is something that sourcing managers have learned to put up with when offshoring IT and BPO tasks to India. But now the Philippines has also begun showing signs of overheating. Given Latin America’s relatively small labor pools, we worry that the region might follow suit and succumb to the same pressures that have pushed the Philippines to its limits. So far, rampant turnover has not been a major problem with LatAm markets. But just in case, we decided to take another look at some of the details around attrition and other symptoms of hot labor market conditions.

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  • What Sluggishness? TCS Exec Sees Robust Nearshore Momentum

    tcs prakash 2g 262x300 What Sluggishness? TCS Exec Sees Robust Nearshore Momentum

    Prakash: Customers want "mobility, big data, business intelligence."

    By Robert L. Scheier

    Days after Tata Consultancy Services (TCS) announced a 14 percent growth in quarter-over-quarter revenue, Ankur Prakash, Vice President and COO for TCS-Latin America talked with our affiliate Global Delivery Report about prospects for the Nearshore amid continued economic uncertainty.

    Prakash, who is ranked number 15 on the Nearshore Americas Power 50 list, lauded for being “a strong supporter of Latin American services,” does not see the slowdown in demand for outsourcing that some analysts are forecasting.

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  • Don’t Let Stagnation Kill Your Shared-Services Operation

    brad dement 300x198 Dont Let Stagnation Kill Your Shared Services Operation

    Speed is of the essence, DeMent says.

    By Patrick Haller

    Success of a shared-services operation depends upon more than just a good plan and solid execution – like any good relationship, it requires constant monitoring and regular maintenance. Without a serious, ongoing commitment by the CEO, CFO, CIO, and managers throughout the company, shared services will implode. The entire corporate way of thinking has to change.

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  • Staff Reduction: How to Make the Most of a Painful Situation

    layoff woman 300x198 Staff Reduction: How to Make the Most of a Painful SituationBy Daniel Berthiaume

    A crucial aspect of many IT outsourcing and BPO initiatives is internal staff reduction. Despite the cost savings and more efficient operations that might result, few managers look forward to determining who stays and who goes when a department outsources certain functions. But properly evaluating employees in the event jobs need to be terminated is absolutely critical to BPO success.

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  • Pereira’s Perils on the Way to Call Center ‘Promised Land’

    By Patrick Haller

    pereira colombia G 300x219 Pereiras Perils on the Way to Call Center Promised LandPositioned in Colombia’s lush Coffee Triangle region, the city of Pereira has been called “Paradise.” However, it has probably not seemed that way to some of the local population. In 2009 the city was hit by the highest unemployment in the nation at 24%, despite being home to a Suzuki motorbike plant, Busscor (the main manufacturer of vehicles for Colombian mass transit systems), textile plants and, of course, coffee production. As a possible remedy to that situation, the government of Pereira – like that of its smaller sister-city Manizales – has created a stream of incentives to attract IT companies and call centers.

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Why Europe’s Debt Crisis is Stalling the Brazil Engine

‘Working in Paradise’ Contest: Give Us Your Best Shot

Latin America’s Ranking Reflects ‘Intensifying’ of IT, BPO Skills

NEARSHORE NEXUS: Why It’s “Invitation Only”

Take a Deeper Data-Dive into Mexico’s Second-Tier Locations


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GUEST POST BROUGHT TO YOU BY: Ci&T

To Capitalize on IT Consumerization, Shore Up Your Mobility Strategy

In my previous post, I discussed how IT consumerization – the introduction of consumer devices into the workplace – is already having a significant impact on Nearshore software development as CIOs rush to capitalize on the trend. But adapting to new devices alone isn’t enough. To truly get the most out of their consumerization efforts, companies have begun to incorporate Mobile Device Management (MDM) and Mobile Application Management (MAM) into their enterprise mobility strategies.

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Expert Views & Commentary

Investment Data Reveals State of Interest in Latin America Locations

By Reshaad Durgahee

lima Peru 222g 300x229 Investment Data Reveals State of Interest in Latin America Locations

Lima, Peru: Surprisingly emerging.

In the period 2003 through 2010, Europe and Asia were the largest recipient regions of foreign investment projects in shared services and BPO activities, accounting for 46% and 29% respectively. Meanwhile, interest in Latin America has clearly been growing. The number of shared services and BPO foreign investment projects in Latin America rose year on year until 2010, when the total number of projects entering the region decreased by 15%.

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India-Centric Management Consulting Does Not Meet Goals

By Stephanie Moore

stephanie moore India Centric Management Consulting Does Not Meet GoalsWhen Forrester published its first Indian vendor consulting Wave in 2005, Indian vendors were just starting their journey into management consulting. At the time, none of these vendors could compete with traditional management consultants – such as Accenture and Deloitte – from a scale, brand, or experience perspective. Given the rapid growth that these vendors achieved in the pure IT services space, however, it seemed only a matter of time before they would challenge vendors such as Accenture in the IT management consulting arena. Six years have gone by and these ambitious Indian IT service providers are still trailing the traditional management consultants.

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US Congressional Bill Would Penalize Offshoring

peter ryan foto G US Congressional Bill Would Penalize OffshoringBy Peter Ryan

The US Congressional initiative House Resolution 3596 (HR 3596) is the most recent effort on the part of certain US legislators to inhibit the offshore outsourcing of contact center services. However, no matter how sincere the spirit of this and other previously proposed and similarly worded resolutions, Ovum believes such a law would badly hurt outsourcers and ultimately impact the US consumer negatively. Therefore, vendors need to come out swinging against such initiatives.

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