MTUC Calls For Freezing Of Licences To Outsourcing Companies

May 16, 2009

The Malaysian Trades Union Congress (MTUC) today called on the government to freeze licences to outsourcing companies dealing in migrant labour, due to rampant abuse and the "flooding" the country with redundant workers.

"These companies are only interested in profits and not at all bothered about the welfare of the migrant workers," MTUC vice-president A. Balasubramaniam told Bernama.

He disclosed that the MTUC had received numerous complaints and reports against the companies concerned and it was detrimental to Malaysia’s image and well-being.

He said the companies brought in excess labour to maximise profits and there were some 1.2 million foreign workers in the country at present.

"When workers arrive here, they cannot find employment and are thus abandoned by the companies to fend for themselves. Many of these workers then turn to petty crime to survive," he added.

Balasubramaniam said the MTUC had also received reports that some of these outsourcing companies were blacklisted by the Human Resources Ministry for various offences under the Employment Act, and yet, continued bringing in foreign workers with impunity.

"This is a mockery of our laws," he contented.

According to Balasubramaniam, this was possible because, the Ministry of Human Resources did not have the jurisdiction to cancel the licence of these errant companies as it was under the Home Affairs Ministry.

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Indian IT optimistic

January 10, 2009

Not with standing the impact of the global economic turmoil, the Indian IT industry is optimistic about the longterm growth prospects and expects to ride out of the downturn like in the past. Participating in a panel discussion on Outsourcing, Offshoring, Obama and Overreaction, at the TiE Entrepreneurial Summit 2008, industry players maintained that the India story was intact, while growth would slow down in the shortterm, reflecting the economic environment.

Slowdown was anticipate. The impact would be felt in 2009 and recovery is expected in late 2009 and early 2010, said S. Gopalakrishnan, CEO, Infosys. Striking an optimistic note, Gopalakrishnan said India was still seeing a six to seven per cent growth while the world is in recession.

The industry has benefited from the downturns in the past and is well positioned to take advantage as offshore provides a way to cut costs for customers.

Indian IT vendors are facing uncertain times as customers have delayed or held back their investments deploying new technology applications in the US and Europe, which account for 90 per cent of the countrys software exports.

Nasscom, which had earlier forecast a 21 to 24 per cent growth for the Indian IT exports, expects to lower growth estimates for the sector in the next few weeks. Indias USD 40 billion IT services exports currently account for a mere five per cent of the global IT services spend of USD 800 billion.

The industry had to now contend with Osama, said Som Mittal, President, Nasscom, referring to the recent Mumbai terror attacks, which had forced customers to postpone their travel plans to India.

Raman Roy, Chairman and managing director of Quatrro, a BPO firm, said the small and mediumsized companies in the US, who are yet to take advantage of offshoring and outsourcing, present a huge opportunity for the Indian IT SMEs.

Source : http://www.offshoringtimes.com/

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Local IT outsourcing firm expands in RP

October 15, 2008

MANILA, Philippines — In its bid to cater to the growing demands in the global outsourcing industry, information technology services outsourcing firm Pointwest Technologies has opened a second delivery center in the Philippines, an executive said.

The new operations of the Filipino company Pointwest Technologies will be located at the UP-Ayala Techno Hub in Diliman, Quezon City.

The new center will have 480 seats in a 2,600-square-meter facility.

“Operating two sites will allow us the opportunity to enhance our processes and tools for more collaborative project development work across multi-sites,” said Pointwest Technologies president Beng Coronel.

The UP-Ayala Technohub in Diliman will also serve as mirror operation – as part of a disaster and business recovery plan — of the company’s Makati office.

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Offshoring now to focus on healthcare

May 31, 2008
The global healthcare industry is under pressure to reduce research and administrative costs and meet tighter compliance and security mandates in Europe and in the US. The market has thus begun to represent an outsourcing opportunity for IT players. The global healthcare IT outsourcing market is estimated at around USD80 billion and is growing by 12 percent every year. Automation in the industry is equally low. As pressure from consumers increases, players will need to outsource an increasing share of their IT budget. With costs six to seven times lower than in the US, Indian IT companies stand to benefit from this opportunity, he said.

As margins remain a concern, most of the pharma companies, health insurance players and health maintenance organisations are looking at alternatives to cut costs and meet the rules mandated by US Food and Drug Administration. Healthcare organisations outsource less than 10 percent of their IT budget, said K Muralikrishna, managing director of Helios and Matheson, a Chennai-based information technology company.

The pharmaceutical and healthcare industries in the US are going through a period of turbulence. The attempt is to replace the traditional blockbuster model of drug development with a new one that enables it to develop safer, more efficacious drugs. There is a huge struggle to cope with rapidly rising costs, inconsistent delivery and inadequate access in many countries.

These pressures have often lead the two industries to work closer, to realise the value of the information they collect and provide better products and services. New technologies could play a major role in enabling this convergence. Common data standards and security-rich systems capable of preserving the confidentiality of personal data will be essential to achieve this, say industry analysts.

To build a strong customer base, Helios and Matheson has completed four acquisitions in the last five years. Last year, it bought a controlling 43 percent stake in The A Consulting Team Inc., NY, USA in an all cash deal at USD8.75 million. The cash deal had an additional earn-out component to the promoter. This acquisition has allowed companies to improve margins by sending out activities to India.

However, most jobs sent out to India are still mainly low-end jobs. Employees in the US were very apprehensive initially as most people believed that India remains that of a poor country. But mentalities are changing, and employees feel that by improving overall margins this could also mean better bonuses for higher end jobs.

Source : http://www.offshoringtimes.com/

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