IT Outsourcing India

It’s going to be a pivotal year in the global IT and BPO services business as companies seek to get more for less with their budgets. How will this impact the world of global services delivery and outsourcing?

Low-hanging fruit outsourcing with immediate cost-savings will be strong. As we discussed and surveyed here, it’s areas where enterprises can streamline initial costs over a contract and get an immediate impact on the bottom-line. That’s bread-and-butter application outsourcing, high-arbitrage BPO areas such as Finance & Accounting and vertical-specific analytics (that KPO stuff). I am also expecting increased adoption of procurement BPO models as increased procurement and supply management work is moved offshore, and buyers can benefit from labor arbitrage to underpin the transformation costs that have held back adoption in the past.

Many initiatives which require incremental upfront investment that cannot be tied directly to revenue-metrics will suffer. The back-end of Q1, Q2 and Q3 2009 will be busy times for outsourcing deal activity.

The onshore/offshore decision-process is reversed to “why should this stay onshore?” The traditional evaluation methodology for companies’ outsourcing and offshoring opportunities is fast-changing. Rather than companies determining which processes can be carried out from a remote location, most will be determining why processes need to be carried out onshore.

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MADURAI: Six BPO (Business Process Outsourcing) training centres will be established by the Indira Gandhi National Open University.

The centres are coming up in Chennai, Madurai, Coimbatore, Tiruchi and Puducherry, as per a communication sent to regional centres.

Varsity officials told The Hindu here on Tuesday that a meeting would be convened in New Delhi on January 5 to decide on the modalities of setting up the BPO training centres. Collaboration between the university and IT consulting and services major Accenture is likely to be worked out for this purpose.

The university has two regional centres in Tamil Nadu — at Madurai and Chennai — and the Regional Directors of these two regions have been asked to take steps for setting up the training centres.

“We will train IT graduates and those candidates who are interested in BPO operations. Imparting students with employable skills is the objective of our university,” M. Shanmugham, IGNOU Regional Director, Madurai Regional Centre, said. The training centres would function under the auspices of School of Vocational Education and Training, IGNOU, which is also set to launch a diploma course in BPO from February 2009.

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