India Now Outsourcing IT Jobs to North America
May 27th, 2011US President Barack Obama rode to power on the promise of stopping American jobs from being outsourced to India.
Ironically, the Indian IT and IT services companies targeted by him may actually be bailing out unemployed Americans by hiring thousands in BPO jobs, in a US economy still struggling to cope with the aftermath of the worst recession since World War II. Outsourcing has come full circle.
Take Aegis, the BPO arm of the Mumbai-based conglomerate Essar Group. Aegis is one of the largest Indian employers in the US. It has over 5,000 US citizens on its payroll and plans to hire 10,000 more over the next three years.
“We have 10 centres operating in the US and more than 97 per cent of our employees are US citizens. Our clients are happy to have locals attend to their calls and we will be hiring many more,” said an …
Employee Protectionism: Not Made in the USA
March 11th, 2011
Compared to nations where US companies send work, US employee protection laws are nearly nonexistent
By Ken Hess
The mere mention of laws to protect US workers from losing their jobs to cheaper labor locations incites strong opposition from US corporations, from companies involved in helping to move jobs offshore, and, of course, from cheap labor locations. However, the US is behind the rest of the world in protecting its valuable tax base — i.e., its workers. Employee protectionism is a dirty term when referring to preventing American jobs from being bled off to offshore locations.
So, where are the protectionist laws in place? You’ll be surprised to know that the popular cheap labor locations have the most employee protection laws.
Source: Press Trust of India
BANGALORE — The country’s leading software exporter Tata Consultancy Services (TCS) on Monday said it has an “optimistic” outlook on demand for outsourcing in the next fiscal year as the “demand pipeline is looking good.”
“What I see on the ground is the spend is increasing and 2011-12 will be a better year for the industry… better for growth,” TCS Chief Executive Officer N Chandrasekaran said in Bangalore.
“Demand is quite robust” and the company is seeing opportunities in banking, financial services, retail, manufacturing, high tech, overall across the board. The type of deals are either related to driving efficiency or driving growth or compliance, he said.
“From the industry point of view the situation we have today compared to the situation we had last year is much much better. Last year, people were not expecting significant growth, people were not really expecting for demand to pick …
Foreign Investment into India Drops Dramatically
February 24th, 2011MUMBAI, India — India’s rise has captured the world’s imagination, as the economy grows at nearly 9 percent a year and a growing consumer class buys cellphones, cars and homes. Yet foreign businesses and investors, once increasingly eager to tap that stunning growth, have started looking elsewhere.
Foreign direct investment in India fell more than 31 percent, to $24 billion, in 2010 even as investors flocked to developing nations as a group.
And in the last two months, foreign investors took $1.4 billion out of the Indian stock market, helping drive the country’s Nifty 50 stock index down 17 percent from the record high it set in early November.
The decline in foreign investment highlights the challenges outsiders still face in India, two decades after policy makers started opening up the country to …
India’s Intelenet Global Services Lands in Guatemala
February 23rd, 2011Blackstone-backed Intelenet Global Services is expanding into Guatemala to provide nearshore business process outsourcing to North American clients, the Indian company says.
The new operation will provide multi-lingual support in English, French, and Spanish.
“Guatemala has emerged as an important BPO destination as the local population has a very good understanding of the American culture and the country has an abundance of English-speaking people. It offers a strong blend of multi-lingual skill sets, talent, and a favorable business climate, making it an ideal location to service clients in America,” said Susir Kumar, Managing Director and CEO of Intelenet.
Intelenet delivers business process outsourcing services to Fortune 500 companies in 36 facilities in the UK, United States, Australia, Philippines, Mauritius, Poland and India in industries in a variety of industries, growing from a handful of employees to more than 32,000 …
From ‘Where Next’ to ‘Best-Fit Portfolio’
February 21st, 2011
By Anand Ramesh, Research Director, Global Sourcing, Everest Group
The maturation of the offshore market – in terms of service provider capabilities, viable delivery locations, and buyer sophistication – is driving up the number of buyers with multi-location and multi-geography footprints. In fact, per a late 2010 Everest Group survey, one in three buyers plan to expand in at least one more offshore geography. As a result, buyers are increasingly focusing efforts on improving the effectiveness of their service delivery location investments.
Footprint versus portfolio
In order to achieve this objective, buyers must begin thinking about locations as a “portfolio” rather than a “footprint” – a critical distinction. A footprint represents the collection of service delivery locations, each of which is commonly characterized by scale, captive and service provider mix, types of services supported, etc. A portfolio is fundamentally different, and …
Indian Executives Say Their Move to Cloud Services is Hindered by Reliability Concerns
February 1st, 2011Seventy-five percent of C-level executives surveyed in India cite reliability concerns as a significant reason they are not adopting cloud computing, according to the fourth Global Status Report on the Governance of Enterprise IT (GEIT)—2011, conducted by the nonprofit, IT Governance Institute (ITGI), ISACA’s research affiliate.
While more than 45 percent of respondents use or are planning to use cloud computing for mission-critical IT services, those who do not plan to use cloud computing list reliability concerns, followed closely by security and privacy concerns, and existing IT investments as barriers to adoption.
Over 50% of respondents said their practices related to IT governance have led to improved management of IT-related risk. Other key benefits included improved business competitiveness (over 44% of respondents) and improved return on IT investment (over 34% of respondents).
“Issues such as cloud computing and …
The Indian government wants to snoop on every Indian citizen who uses the Internet, even if he or she has never been even a suspect in any illegal activity — and that includes you.
Internet service providers have been asked to put in place solutions to track any specific Internet Protocol (IP) address and identify it as soon as any user logs on to the Internet, according to Rajesh Chharia, president of the Internet Service Providers’ Association of India (ISPAI).
Everyone is at risk
The difference this time is that the government would like to snoop on every Indian citizen who uses the Internet, even though he or she may never have been even a suspect in any illegal activity whatsoever. The Department of Telecom (DoT) has conveyed this to the ISPAI, at the behest of the Union Home Ministry and the Intelligence Bureau (IB), …
Capgemini announces promotion of three Indian leaders to new global positions.
Capgemini, one of the foremost providers of consulting, technology and outsourcing services, has announced the promotion of three Indian executives – appointment of Salil Parekh as Chief Executive Officer of Application Services North America, UK, Asia Pacific, and global Financial Services, Aruna Jayanthi as the new Chief Executive Officer of Capgemini India and Baru Rao as the Chief Operating Officer of Application Services Europe.
Salil Parekh who was the CEO of global Financial Services, Asia Pacific, and India offshore will now become the CEO of Application Services businesses of Capgemini that include the North America and United Kingdom geographies, the Financial Services (FS) across the world, along with local business units in India and Australia. This strategic business unit (SBU) spans across 12 countries, and has …
What Does Mexico Have that India Doesn’t?
January 11th, 2011The benefits and risks of IT outsourcing to Latin America will be explored in-depth during a special one-hour webinar coming January 25th at 2 p.m. EST. “The Agile Alternative: What Does Mexico Have that India Doesn’t?”, hosted by the premiere IT offshoring blog – Nearshore Americas, examines the value proposition of relying on ‘nearshore’ partners to provide custom application development services. Interested Attendees are Invited to Register Today
Geared toward IT decision makers and managers responsible for software development, testing and Q/A, the webinar will address a series of critical issues, including:
Getting the most from your Oracle investment
Value added benefits achieved for custom SDLC
Methods to use to evaluate nearshore vs. farshore providers and outcomes
How to use agile to pinpoint weaknesses in development cycles
Examining Mexico-based agile opportunities
The webinar will feature Debra Ferber, Vice President of Development at software firm 4th Source, …
