Outsourcing Alert 23/08/2006
Agarwal, Anish
COMPANIES INSIGHT
Genpact to hire 80 in Lucknow
Genpact is planning to hire over 80 associates from Lucknow and Kanpur. The company has announced it will host walk-in interviews, to hire candidates for its Associate Trainee Programme, in the two cities. The programme is based on the "Learn while you Earn" concept for students who have completed class XII, where they spend two days of the week on campus for their education and three days working at Genpact to gain work experience. The programme allows students to study for a Bachelor of Commerce and Bachelor of Arts (English Honours) degree from Delhi University while working at Genpact. Genpact, provider of business and technology services, delivers business impact through operational excellence, helping global enterprises improve their revenue, cash, costs, margins, speed and customer relations. The company has been recently ranked as the number one third party BPO Company in India by Nasscom.
Infosys m-cap hits Rs 1 lakh cr
Here's another milestone for tech behemoth and IT biggie, Infosys Technologies. It had the distinction of seeing its market capitalisation (based on the NSE price) cross the magical Rs 1 lakh crore mark on Tuesday. The Infy scrip which started the day in the green, however, ended the day lower at Rs 1,
781.15, though the intra-day high was Rs 1,809. The intra-day low was Rs 1,775.2. While it crossed the coveted Rs 1 lakh crore milestone at the day's high figure, by Tuesday's close, the Infy scrip was valued at a shade over Rs 98,000 crore as against the TCS market capitalisation of Rs 95,450 crore. ONGC continued its dream run and retained the top spot ending Tuesday with a market capitalisation topping Rs
1.7 lakh crore, partly driven by the interest the market saw in oil and petro-companies. Reliance Industries closed Tuesday with a market capitalisation of Rs 1.48 lakh crore. Infosys came in fourth behind NTPC. It must, however, be mentioned here that the market capitalisation calculation would be different if one took the prices on the BSE-based sensex. The reason being that the sensex is based on the free-float mechanism which indicates that the market capitalisation is calculated without the promoter's holdings.
INDUSTRY INSIGHT
India Can Earn $4.7Bn from the US Legal Offshoring Business by 2011 – Study
According to a study by CRISIL, an Indian credit rating organization, India has an opportunity to garner revenues worth USD
4.7 billion by 2011 from the US legal offshoring business. The study has placed the US legal offshoring market at USD 25 billion. India will need to add about 33,000 lawyers to its present base to achieve the revenue targets. The study cited an estimate by NASSCOM, a trade body for the Indian software industry, which placed the current market size of the legal offshoring component of the Indian BPO industry between USD 60 million and USD 80 million. The large differences in the cost components for manpower and infrastructure between the US and India will help the country in meeting the revenue targets. In addition, presence of a large number of law graduates in the country will also play an important role in achieving the revenue targets. The study states that the Indian legal firms should try to target the mid-size and large law firms of the US before tapping the US corporations.
Many Enterprises Are Frustrated with their BPO Relationships
50 percent of organizations involved in business process outsourcing (BPO) relationships will experience cost overruns and unacceptable service delivery quality, according to Gartner, Inc. Gartner analysts attribute this frustration by enterprises to a lack of understanding of their specific BPO offerings in terms of market hype versus true market maturity. In the Gartner report "Hype Cycle for Business Process Outsourcing, 2006", two distinct BPO services stand out for their transformational impact: core banking, and comprehensive finance and accounting (F&A) BPO. However, they are both far from mature (each is more than five years away). When they mature, they will assert a pervasive influence on basic service delivery approaches for their sectors. In the more immediate time frame (less than two years), contact center outsourcing, which is expected to plateau in less than two years, appears capable of reaching maturity and providing high-level impact. Contact center outsourcing has a high potential for business impact, since these services improve or drive business functions for interacting with a wide range of constituencies, including customers, partners, employees and suppliers. Driven by the provider's functional process expertise and industry-specific capabilities, contact center outsourcing can deliver on the promise of BPO enterprise-wide.
Outsourcing in China on the rise
Outsourcing companies are expanding into China as the country's swelling economy leads to more demand and an increased need for IT support, according to reports. In addition IT companies within China are beginning to grow and add to the global success of the sector. As China's economy continues to grow, specialist services are becoming increasingly in demand. Recently the Chinese government revealed that limits on production output would be brought in to control the country's fiscal growth. However, currently China is expanding into various sectors at an impressive rate and outsourcing IT support can help maintain economic development. Many companies looking for IT support in London look to outsourcing for improved service and the ability to meet demand. Outsourcing as a global sector is continuing to go through a boom and many analysts argue that the sector will continue to grow into new fields.