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With well-researched articles and reviews on the latest news and issues on outsourcing business, Outsourcing Opinions is your sure guide to making informed decisions for outsourcing your business challenges for success.

Ireland’s health sector and unions at odds over outsourcing

The Emerald Isle’s health service management is getting pressure due to its focus on outsourcing jobs as part of new talks between Ireland’s government representatives and labor union leaders on pay cuts and public sector reform.

Read more about this development here

Gartner & Ovum surveys show boost in IT outsourcing coming

Results from a recent Gartner survey show that 76% of organizations surveyed were optimistic about the economic recovery time frame and they were seeing recovery as early as 2009 or occurring in 2010.

With such confidence as boost, 85% of organizations anticipate their spending with IT service providers to increase or stay the same when the economy returns. Learn more here

A study by IT industry watcher Ovum show similar findings, about 33% of CIOs anticipate that their budgets on IT outsourcing  will increase through 2010-2011, more on  that here

Cebu to cultivate animation outsourcing

#1 emerging outsourcing destination Cebu will start nurturing animators to strengthen the province’s niche in animation.

Through the Cebu Educational Development Foundation for Information Technology (CEDFIT), in cooperation with  the Animation Council of the Philippines and Studio 2,  trainings in animation have started last February 2010, and a second batch of trainings is set for April. Look more into this news here

The Philippines has become a favorite outsourcing hub of many software game publishers due to the country’s significantly lower production cost, compared to United States and Japan.

Also, local companies aim to make their niche and take their share of the billion dollar global gaming industry with their products.

Most game development projects outsourced are end-to-end game development projects, character generation, concept art design,  in-game animation, testing, quality control and game community support. It is expected that there will be an increase in demand for development of virtual worlds, social networking functionality and massive multiplayer games.

Learn more about the emerging software games industry in the Philippines here

Outsourcing Opinions wishes the “(dot)com” domain a happy silver anniversary! 25 years and still popular!

Also, here’s the latest BPO updates in Cebu, a government agency and telecom giant forge new ways to modernize local agriculture practices while a bill that provides for an effective and functioning Public-Private Sector Partnership is being passed.

Farmers and Fisherfolk get their own call center for support services

The Philippines’ Department of Agriculture (DA) and the Philippine Long Distance Company (PLDT) signed last month an memorandum of agreement on forging together a project called the Farmers’ Contact Center (FCC),  through PLDT’s OnCall “managed contact center solution.”

The FCC project allows farmers and fisherfolk to talk extensively with the DA’s agricultural technicians to receive guidance and information, without the hassle of high call rates.

The DA is pursuing the project through its Agricultural Training Institute (ATI), as part of the government’s support program on food security, dubbed as FIELDS (Fertilizers; Irrigation; Education; Loans; Dryers and Seeds.)

ATI agriculture experts will answer queries received by the FCC, which has also established direct links to the various DA offices and attached agencies, including state universities and colleges.

Farmers and fisherfolk can receive information about current commodity prices, schedule of irrigation water releases, marketing of farm produce, and control measures for pest and disease incidents.

Cebu to become a provincial Economic Zone

House Bill No. 1319, otherwise known as the Cebu Economic Development Zone (CEDZ) proposal, aims to convert the entire Cebu province as an economic zone. The CEDZ is planned to a paradigm of an effective Public-Private Sector Partnership with the private sector takes initiative and pushes for innovation while the government provides infrastructure, institutional support and contributes part of the needed resources.

The private sector, led by the Cebu Chamber of Commerce and Industry (CCCI), is for pushing for this initiative to become law. The bill is already at the Senate level, however the CCCI has decided to re-file the bill in the next congress to avoid glitches.

References:

1. Cacho, Katlene. “Farmers’ ‘call center’ set up.” 16 March 2010. The Sun Star Daily. Accessed 16 March 2010. Link Here
2. Dagooc, Ehda. “Davide vows to support Cebu-wide ecozone bid.” 17 March 2010. Cebu’s The Freeman. Accessed 17 March 2010. Link Here

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The Philippines’ business process outsourcing (BPO) sector growth could accelerate in the first half this 2010 as global regions turn to the country as a premier and trusted outsourcing destination for higher-value services.

Catch up on the latest developments in the Philippines. More after the jump!

BPO service providers are in the process of recruiting more people not only to perform voice services, which was the source of the revenues last 2009, but also for  back-office work and higher-value services.

Not only the service providers, captive facilities and centers of multinationals based in the Philippines are also ramping up in their human resources from the local population of talents.

“People are really ramping up. There are recruitments left and right, so we’re seeing a very steep recovery in the first half. The growth will taper off by 2011.”

– Gillian Virata, Executive director for Information and Research, Business Processing Association of the Philippines.

Futher more firms from Australia and Canada are looking to outsource to the Philippines  as the BPO sector moves beyond voice and leaning more toward higher-value services.

According to Canadian Chamber of Commerce of the Philippines director Richard Mills, the Philippines is poised to take on higher-value jobs, after proving its worth as a premier destination for voice services.

As part of the initiative to develop the BPO sector to provide higher-end services, Microsoft Philippines offers a free training & software programme for local Web development firms.

Also, Microsoft’s WebsiteSpark programme is designed to set up a partner network by connecting Web professionals and hosters with customers, partners and other professionals with complementary technologies. The partcipating companies will receive professional support and training, access to community support, hosting partners and peers with complementary services and technologies, unlimited access to technical managed newsgroups on MSDN and unlimited program support for nontechnical issues.

As this growth spells for more careers for the local talent pool in the Philippines, Senior Vice President of the University of Asia and the Pacific and business columnist Bernado Villegas calls the attention of BPO firms and captive facilities not to repeat the mistakes of industrialists of the 19th century and just treat their recruits and employees as tools and commodities–or else, the industry will self-destruct.

To prevent this, Mr. Villegas calls for corporations in the BPO sector to take care of their employees by providing them information and means to live healthy, moderate and stress-free lifestyles to cope with the rigors of  their labors. Human resource managers and BPO companies should be sincerely interested and deeply invested in the welfare and happiness of their work force.

References:

1. Ho, Abigail. “No stopping growth of RP’s BPO industry.” 14 March 2010. The Philippine Daily Inquier. Accessed 15 March 2010. Link Here
2. Sallan, Edwin. “Wooing Web Developers, MS gives out free tools.” 14 March 2010. The Manila Bulletin. Accessed 15 March 2010. Link Here
3. Villegas, Bernado Ph. D. “Attention HRM of BPO enterprises.” 14 March 2010. The Manila Bulletin. Accessed 15 March 2010. Link Here

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Let’s check up on what’s happening now with India Inc.’s information technology (IT) outsourcing sector, what’s happening to it now that could give insight to its future.

India’s IT outsourcing companies’ stock prices fell into a trough during the downturn, however now with the recovery in developed markets– the stocks are up by as much as 300 percent. Here’s an evaluation on the stock health of India’s IT outsourcing sector and the companies that comprise it.

Chair-Managing Director of Mastek, an IT company in Mumbai, and 2007’s CNBC Asia-India Business Leader Awardee Sudhakar Ram believes the “third wave” of India’s IT outsourcing can help countries like the United States recover from the crisis in finances.

Read more here on Sudhakar Ram’s insights on how Indian IT outsourcers can help global clients in the financial industries of developed countries modernize themselves out of recession.

Cebu learns Innovation, the Google Way

Officials from Google will be in Cebu on Friday to talk about innovation in a forum called,  “Inspiring Innovation: the Google Way,” at the University of the Philippines- Visayas Cebu College.

Google developer relations technical program manager Christine Songco and Google Japan software engineer Dan de Lima will be guest speakers in the innovation forum that is organized by the Ayala Technology Business Incubator (AyalaTBI) in cooperation with Google, UP Cebu Department of Science and Technology Business Incubator, GTUG – Cebu, Developers Connect (DevCon), Philippine Emerging Start-Ups Open and the Brain Gain Network.

The “Inspiring Innovation: the Google Way” innovation forum is one of many tech forums that AyalaTBI hosts in regional centers in the country with partners since 2007.

IBM inks IT scholarship deal with University of Cebu

The University of Cebu (UC) recently inks an agreement with IBM Philippines to pilot an “Earn as You Learn” (EAYL) program, patterned after the successful collaboration of IBM and the University of Ballarat, Australia.

“Innovation is crucial in the economic advancement of Cebu and our country. Information Technology has been identified as a vital sector that can support innovation and can open up a lot of opportunities for progress.

With the EAYL program, we not only support the local government of Cebu’s drive to be the premier IT hub in the Philippines, we also have the opportunity to enhance the employability of the university’s graduates,”

– Candice Gotianuy, University of Cebu Chancellor.

The EAYL program integrates class training with income-generating work experience for students, enabling them to graduate with a higher appreciation of career and culture of an IT professional.

The program is to be incorporated in the Bachelor of Science in Information Technology course, including subjects recommended and provided with subject experts by IBM.

References:

1. Limpag, Max. “Google execs in Cebu forum.” 9 March 2010. Sun Star Cebu. Accessed 10 March 2010. Link Here
2. “MOA inked for ‘Earn As You Learn’ for IT students.” 5 March 2010. Cebu Daily News. Accessed 10 March 2010. Link Here

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Here what’s buzzin’ in India’s information technology and business process outsourcing (IT/BPO) sector: India faces strong competition from China in cost-effective software & development, India’s third largest IT company Wipro bags 7-year US contract, Infosys banks on getting big revenue on platform-based offers and Aegis builds new campuses for business and employees.

More on this after the jump.

China versus India on Software

China enacts policies tp promote and develop software exportsw which causes alarm for India as the latter complains on the former’s  unfair trade practices, selling software products at low prices on the strength of state subsidies. Along with other nations, India has imposed anti-dumping duty on Chinese goods that are sold at low prices.

Wipro enters 7 year IT contract with US insurance company

Wipro Technologies, India’s third largest software/IT firms, partners with US-based insurance firm Main Street America Group for a 7 year business engagement. Main Street America provides commercial, personal insurance to individuals, families and small enterprises in 24 states..

Wipro will provide Main Street America software solutions in applications, development, maintenance and quality assurance.

Infosys banks on new pay-per-use biz model

India’s second largest software exporter, Infosys breaks free from the conventional model of effort or time and material-based business model to a new client-engagement in which clients pay for what they use and  the business results achieved as an effort to attract more business.

Customers are presently seeking ways to lower capital expenditure. One way is the adoption of the pay-as-you-go model of service providers.

Aegis plans on more expansion

Aegis-Essar Global will invest about USD80 million in new tech campuses for business, employees and plans for further expansion into service delivery centers around the world.

The new Aegis tech business campuses will be sprawling parks that will be home to BPO units, entertainment facilities, gyms, swimming pools and residential complexes.

Aegis is also setting up more BPO centers in global destinations in Africa, continental Europe and South America. The international expansion strategy has already placed centers in the United States, Costa Rica, the Philippines, Sri Lanka, United Kingdom and Ireland to gain access into these markets.

References:

1. Dasgupta, Saibal. “Cheap Chinese software may steal India’s edge.” 7 March 2010. Economic Times of India. Accessed 7 March 2010. Link Here
2. Mishra, Pankaj. “Infosys bets big on pay-per-use model.” 5 March 2010. Economic Times of India. Accessed 6 March 2010. Link Here
3. Parbat, Kalyan. “Aegis plans Rs 400-cr expansion.” 6 March 2010. Economic Times of India. Accessed 7 March 2010. Link Here
4. “Wipro bags 7-years IT contract from US-based insurance company.” 4 March 2010. Economic Times of India. Accessed 6 March 2010. Link Here

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Know your Outsourcing.

Outsourcing Opinions provides comprehensive articles and analyses on the current news and information, from world media agencies and authoritative sources, regarding outsourcing and business.

Outsourcing Rates still down this 2010

Alsbridge’s ProBenchmark finds many information technology (IT) outsourcing services continue to drop in 2010, albeit at a slower pace than when compared to the decline last 2009. The costs of some notable IT services — such as virtual server support — are rising.

Read more of this price trend here

You Org and Outsourcing - Make it Work

Here are five tips how organizations can avoid problems with outsourcing contracts and projects from the best point to handle them– at the beginning.

1. A contract too good to be true… it is.
2. Get a second opinion.
3. Failure could be an option. Consider that.
4. Strengthen early agreements with suppliers.
5. Try Multi-sourcing this early.

Learn more about these tips on how to make your org and outsourcing a working, happy marriage here.

Schools and Colleges should have an Education Call Center

Outsourcing can help schools and university campuses create an effective hotline that can  inbound marketing, admissions, financial aid and administration calls.

Learn how here.

New BPO Hub in Iloilo City, Philippines.

Iloilo is slowly emerging as a business process outsourcing (BPO) destination. Philippine Property giant Ayala Land Inc. signed a 35-year lease agreement to develop a two-hectare property in Iloilo City, Philippines into possibly the biggest BPO hub in the country.

The project will develop the available 19,000 square meters of the two-hectare property into three BPO office facilities. Learn more about this development here

Employee rentention and turnovers are major issues facing any organization, particularly in the contact center business were agents are challenged to maintain a positive mental attitude at work.

However there are ways organizations can keep their employees’ morale, keep them happy and keep them at work.

Customer care expert and author Barbara Burke shares tips on how to engage employees in order for them to work better and stay loyal to the company.

Survey your employees regularly.

Apply employee satisfaction surveys on a quarter-to-annual basis, particularly on the new hires. Use initial information to serve as a baseline and follow up every quarter in order to identify major issues and resolve them A.S.A.P.

Include employees in decision-and-policy-making.

Invite employees to be involved. It makes sense because they can usually provide the necessary information to make the right decisions that will benefit them and in turn benefit the company.

Provide Training and Career opportunity.

It is essential to train direct supervisors on coaching and leadership for they can apply these to handle their teams in order to derive the best performance as well as drive engagement.

Also, people have goals to advance. It is best to know these goals and assist employees to advance their careers. It’ll foster loyalty as well as good karma.

Give immediate feedback on performance.

Give employees immediate, good readings on their actual performance on specific interactions/functions. If there’s an opportunity for improvement, the real-time information can be also valuable for it allows them to make resolution immediately.

Apply positive reinforcement frequently.

Immediate feedback with positive reinforcement is great for employee morale.

Reference:

Conlon, Ginger. “Improve Retention in the Contact Center.” 1 March 2010. Strategy and Insight - 1on1Media. Accessed 3 March 2010. Link Here

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