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More AP outsourcing deals, but value drops
Thursday, 24 July 2008

While more outsourcing contracts were signed across the Asia-Pacific region in the first half of 2008, over 2007, the absence of mega deals meant the total value of these deals were significantly lower.

The number of outsourcing contracts with a total contract value (TCV) of more than US$25 million, grew 9 percent across the region in the first half of this year over the same period last year.

However, advisory firm TPI, noted the TCV and the annualized contract value (ACV) of these outsourcing deals were significantly lower than the previous year's. The TCV dipped by 44 percent to US$3.8 billion, while the ACV fell 49 percent in the Asia-Pacific region. ACV refers to the value of the contract divided by its duration.

Arno Franz, TPI's partner and Asia-Pacific managing director, noted in a conference call Wednesday, that the depreciation in value was due to a drop in mega deals inked in the region.

TPI defines a mega deal as one with a TCV of more than US$1 billion, while "mega relationships" are those with ACVs of over US$100 million.





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Orange calls back Indian BPO jobs
Wednesday, 23 July 2008

Source: infotech.indiatimes.com

British telecom service provider Orange has terminated its outsourcing contract with Bangalore-based BPO firm 24/7 Customer. The latter employed over 400 people to service Orange from Gurgaon.

24/7 Customer has received an official termination letter from Orange. The British company severed its contract with BPO firm Vertex a few quarters ago. But EXL Services, Convergys and IBM Daksh continue to work for it.

‘‘Orange plans to bring its outsourcing share to India to a bare minimum. Dropping 24/7 Customer could just be the beginning,'' said an industry observer. V Bharadhwaj, chief marketing officer, 24/7 Customer , told The Times of India, ‘‘ The client was extremely happy with us. It's just that the company has segmented their end-customers, as part of its new strategy, which preferred to be supported from the UK.''

Bharadhwaj said the company has taken steps to support all employees who worked on this account. "Instead of asking them to leave, we have given options like relocating to our offices in Hyderabad or Bangalore to work on other accounts or facilitating jobs with other BPO players in Gurgaon or Noida. Over 70 per cent of the people have either used these options or left us, while the process will be completed in a month's time,'' he said.

Orange's new CEO, Tom Alexander, had said recently that he would cut the share of the company's outsoucing to India and scale up domestic (UK) presence.

He had said that as part of Orange's new strategy, ‘‘we’re proposing to change the shape of the organization and the way the business works to serve the 21st century customer. These changes are designed to stop duplication within our organization, to ensure we are agile, able to deliver and react quickly to customers.''





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Last Updated ( Wednesday, 23 July 2008 )
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CSC extends outsourcing deal with Zuger Kantonalbank
Wednesday, 23 July 2008
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