India expected to be third largest IT & BPO service provider by 2008

Kumar Mahadeva – chief of Cognizant Technologies – which supplies application outsourcing services and enterprise consultation solutions to various Fortune 500 and Blue Chip companies in the US and Europe has mulled that by 2008, BPO & IT sector in India is expected to be the third largest in the world after US and Japan. The business process outsourcing services in India are gaining high due to massive shift over by US corporate sector in search of economical resources.

Outsourcing business process services as a sector along with IT services is expected to register seven percent market holding from the current two percent mark. Mahadev was speaking at a formal lunch ceremony organized by India-America Chamber of Commerce in New York. The political side of Business Process Outsourcing sector in India is certainly heating up Mahadev had added in his remark.

Outsourcing by European FI up for 18% CAG: Datamonitor

The decision to outsource business process by corporate firms has witnessed a gradual increase over last few years especially in the US market. Amongst the other sectors outsourcing in financial services is as well rapidly growing. Though outsourcing in the financial services is nothing new, the revolution is the outsourcing to offshore location.

While reading an article by Benjamin Beasley-Murray in Global Finance [http://globalf.vwh.net/] it occurred to my knowledge that outsourcing in British market is prevailing since 1968. Outsourcing business process by Financial Institute (FI) in Europe to offshore locations will generate revenues worth $240 million, which is CAG of 18% estimates DATAMONITOR.

IBM bags P&G BPO deal worth $400 m

Household goods producer Proctor & Gamble has offered a 10-year deal to IBM for business process outsourcing (BPO) of its Human Resource functions. The deal worth $400 million would enable IBM to support 98,000 P&G employees with payroll processing, benefits administration, compensation planning, expatriate and relocation services, travel and expense management and HR data management.

The move comes in wake of the rapid moves by companies outsourcing their business process in order to stay focused on core business issues. With the deal approximately a staff of 800 will transfer to IBM, likely from January 1st next year when IBM will take operational control of three HR shared service delivery centers in Costa Rica, the UK and the Philippines.

BPO to yield $25.7 billion by 2009: Frost and Sullivan

The up surging growth in business process outsourcing market has been phenomenal over the years. Frost and Sullivan claim the outsource business process market to harvest revenues worth $22 billion with projections of $25.7 billion by 2009. Another report suggests that global outsourcing spending is projected to top $1.2 trillion by the end of 2003.

India has emerged as the leader in outsource business process industry by extracting more than 65% worth of outsourcing trade. But recently countries like South Africa and Asian markets as the Philippines and Malaysia has been making waves in tapping business process outsource market. E-Centric a South African based call center has undertaken seven call center campaigns for UK and Dutch companies over the past six months. These are the clear indications of the growth in the sector as more and more companies are looking ahead to outsource their business processes.

Outsource to India in motion. But at some cost

Outsourcing business process walks into a new facet as outsourcing churns into a wider segment of activities. WeP Peripherals – which is a division of Wipro Infotech is set to launch India’s first business printing outsourcing service. WeP Peripherals would provide anytime, anywhere printing and includes not only onsite printing, but also offsite printing and from outside at print kiosks.

But even as US firms are happy enough to outsource business process to India – it seems the US government have other ideas. Perhaps due to outcry – erupted in US against outsourcing to India sometimes ago the visa-norms are somewhat restricted by US embassy. But the government is more concerned about the security issue. Several business process-outsourcing firms from India are facing blockades to send their employees to US on temporary work.

Previously the US embassy would automatically clear visas of its employees to travel between the US and India. Now each employee is being asked to appear personally before the embassy officials for checking antecedents. US Companies outsourcing business process to India are likely to get bothered with such a move.

P & G strike outsourcing deal with IBM Corp.

Procter & Gamble – in production of household products and other variants is planning to outsource its business process services to IBM Corp. in order to provide HR services to its employees. Procter & Gamble – which markets more than 300 products to-date has made its presence felt in 140 countries and provides employment to over 98,000 people. The company is negotiating a deal with IBM to outsource its business process activities in order to focus on other key areas as improving delivery and transmitting their resources towards its core business.

Outsourcing business process services in catching the grip as more and more companies are trying to focus on their core business performance. The move by Procter & Gamble is in the similar circumstance. Though the details of deal is not yet disclosed – analysts estimates it to be around $500 million. Procter & Gamble will be transferring about 700 of its employees to IBM in context of its outsourced business process.