Thursday, May 17th, 2012

What are the winning locations for captives in LatAm and which operators are ready to sell? Rodrigo Slelatt of AT Kearney gives comprehensive update on current market drivers.

 

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Young professionals explain why ethics and innovation are key motivators.

 

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john fafian When the Deal Goes Sour: How Morgan Stanley Manages Troubled Outsourcing Relationships

Fafian: Don't kill the deal if you don't have to.

By Bob Scheier

John Fafian, executive director of firmwide Sourcing at Morgan Stanley, believes in trying to fix broken outsourcing relationships before ending them. Listen to his views on why it’s often better to stick with the provider you already have, where legal and procurement fit in and the process of analyzing in-sourcing options if you are looking to bring work back on-shore.

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trowbridge ben g Shared Services Week Spotlights Co Sourcing, FAO Wins, Agility Risks

Trowbridge tells conference: Agility is "good news, bad news."

By Dan Berthiaume

Attending the 16th annual North American Shared Services & Outsourcing Week hosted by SSON in Orlando last week was an opportunity to catch up on trends and innovations in shared services and BPO. It was also a reminder that outsourcing is a truly global phenomenon and a key driver of international commerce. The exhibit floor included representatives of groups promoting outsourcing in emerging BPO delivery destinations such as Lithuania and Costa Rica, as well as several established Indian providers, and a poolside cocktail reception was hosted by Scottish Development International.

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sharedservices hands 300x199 Clients Breaking New Ground with Shared Services InnovationsBy Dan Berthiaume

Shared services, or the combining of similar outsourced functions, provide BPO customers the opportunity to create savings and spur improvements in specific areas of the company. However, end users are now going further and are applying shared services across different sectors of the company and using them to get a better analysis of the future, improve their management of human resources, among other solutions.

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Black White Box 300x225 Outsourcing Clients Face Tough Choice: White Box or Black Box?By Dan Berthiaume

Most IT outsourcing and BPO relationships boil down to one of two models: staff augmentation or managed services. “Staff augmentation is where the client defines a specific skill and pays the provider based on the number of hours and days successfully worked,” explains Dave Borowski, senior associate of outsourcing advisory firm Pace Harmon. “There are service levels, but you still pay by the number of hours and bodies.”

And while staff augmentation is currently more popular with clients, particularly in the case of BPO, there is a shift toward more adoption of the managed services approach.

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By Dan Berthiaume

Maersk Maersk Counts on IT Outsourcing to Spur Growth, FlexibilityOperating in 100 countries and transporting goods around the globe, at first glance it would appear Danish shipping company Maersk Line is already handling all the cargo it can manage. But when Maersk determined that the volume of most of the goods it was shipping had not grown to full capacity, the company decided information technology outsourcing (ITO) would be a crucial part of rectifying the situation.

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plant with hands 300x199 Latin American BPO Suddenly Facing Growing PainsBy Dan Berthiaume

Most BPO services offered by providers based in Latin America have been delivered by global companies who established a regional delivery center. However, the Nearshore’s burgeoning shared services industry holds the promise of the “next wave” of Latin American BPO: one driven by homegrown providers. But along with that wave comes a boatload of pressures and demands.

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small man big pen 300x199 Small Outsourcing Deals Pose Their Own Big RisksBy Dan Berthiaume

Driven by needs such as lower costs or specialist expertise, more and more BPO and IT outsourcing customers are turning to smaller contracts with a larger number of providers. According to the 2011 ISG TPI Index, the number of contracts in the $25 million to $99 million range grew considerably in the past year compared to those worth $100 million and more.

Ah, but smaller deals don’t necessarily mean smaller worries for clients.

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santiago bpo 300x199 Upstarts Threaten Big Players in Potential LatAm BPO Boom

Santiago: Sustained vertical drive.

By Dan Berthiaume

Latin American nations make up about one-quarter of the 2012 list of Top 100 outsourcing locations compiled by global outsourcing research/advisory firm Tholons, and that is no accident. As Manuel Ravago, president for research at Tholons, explains, Latin America is an up-and-comer in the world of BPO. And more agile smaller countries might make the most of that.

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