Will the New Healthcare Law Become the Ultimate Outsourcing Stimulus Package?
September 20th, 2010
High-minded rhetoric about protecting U.S. jobs and publicly bashing corporations who engage in offshoring has become a politically compulsive distraction from the real bottom-line driven issue of how US businesses will endure the potentially crunching consequences of the new Heathcare reform law. The $939 billion law, approved in March, is set to usher in assorted new costs for US businesses, while also eliminating tax exemptions many of them enjoyed previously.
The law is clearly reverberating throughout the offshore outsourcing industry where dozens of outsourcing providers continue to analyze how the law will trickle down and potentially help or hurt their operating models. We’d like to take a quick snapshot at two players in this drama, DialAmerica, an exclusively US-based contact center outsourced provider, and Patni Computer Systems, the sixth-largest India-based IT services firm which maintains a balance of nearshore, farshore and onshore operations.
Patni Sees Onshore as a Channel to Win More Business
April 8th, 2010
Patni Computer Systems has its eyes wide open about opportunities to build a strong onshore footprint in the United States. The global services firm – which generated close to $700 million in revenue last year – is hot on the onshore model and is actively seeking to expand beyond a recently opened center in El Paso, Texas.
“We are constantly evaluating locations in North America for investment,” Tony Viola, VP of Marketing for Patni Americas told Nearshore Americas this week. “This geography and locations within this country have become more attractive in the last two-and-a-half years because of what’s gone on with the economy.”
Indian back-office processing firms are planning to expand operations in the US following a fall in real estate prices and labor costs and a rise in anti-outsourcing sentiments there.
The industry, which traditionally followed the offshoring model, is now looking to open facilities and hire locals in low-cost locations in the US. Their aim is to woo first time outsourcers and win projects in highly-regulated sectors.Wo
As these firms boost their onshore presence and follow the IT services industry in hiring locals, their business model is set to shift from a primarily offshore-revenue model to an onsite-offshore model, companies and experts tracking the sector said.
“We see the BPO industry changing. Based on the availability of skill and cost, about 15-20% of work will eventually be done in local geographies,” said Sanjiv Kapur, senior VP and head of BPO at Patni Computer Systems.
This shift comes even as the more high-profile …
Patni Computer Systems (NYSE: PTI , BSE: PATNI COMPUT, NSE: PATNI), a leading global IT and BPO services provider, today announced the establishment of a new North American hub for Business Process Outsourcing operations in El Paso, Texas. The move was triggered by a multiyear, multimillion-dollar BPO services contract with a leading healthcare technology and services provider.
Adding the El Paso center follows through on the corporate strategy Patni announced earlier this year to invest in specific regions around the world and contribute towards generating economic opportunities in these regions. Patni has set a goal to increase the size and scope of its North American operations to adapt to market conditions that encourage the establishment of more on-shore delivery capabilities.
Establishing the new service hub expands Patni’s Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) delivery capability to service North American customers from domestic locations in a cost-effective manner, deliver …
Patni Plans Opening of New Delivery Center in Queretaro, Mexico
March 11th, 2010QUERETARO, Mexico – (Business Wire) Patni Computer Systems , a leading global IT and BPO services provider, will host a ribbon-cutting ceremony Friday, March 12, to unveil a new state-of-the-art IT business center in Queretaro, Mexico, that will expand Patni’s global delivery initiative and serve as the hub of the company’s expansion efforts in Latin American markets.
Patni is moving from its temporary facility into a permanent location in a high-rise building at ITESM Technological Park of Tech de Monterrey. The new center occupies 11,000 square feet on two floors in ITESM Technological Park –- more than eight times the capacity of its temporary location. Patni currently employs 40 in Queretaro. The company has plans to increase employment in the local facility to 200 by the end of 2010, with the bulk …
