BPO |Update|  

Issue 43

New gateway to tech jobs
CyberMedia Dice, an exclusive tech jobs portal, also offers technology focused content and services, assessment tools and practice tests
CyberMedia, an Indian specialty media house and US based Dice have announced the launch of their JV CyberMedia Dice, a job board that purely focuses on the technology and engineering industry. The JV involves a 51:49 percent partnership between Dice and CyberMedia, respectively. However both companies did not reveal the investment details. 
Some of the features of the portal www.cybermediadice.com include emphasis on technology-focused content and services, availability of practice tests and assessment products through the CyberMedia Dice-MeasureUp index. These would help to test a candidate's domain knowledge in specific areas. 
CyberMedia Dice would tie up IT companies, recruitment companies and consultants. "It would aid recruiters in both pre-recruitment and post recruitment since we also offer assessment solutions," said president CIOL and CyberMedia Dice CEO, Abraham Mathew. On the issue of competition from other job portals, he said, "With our focus on the IT and tech area and with our practice tests and assessment products, we offer better quality than our competitors." 
He further said that though Dice focused on the gamut of jobs across the tech and engineering space like IT, aerospace, bio-pharma and biotechnology, the initial focus of CyberMedia Dice would be on IT jobs.
Source: www.ciol.com, April 5th

Thieves undercut Indian BPO
As an aftermath of the alleged stealing of $350,000 from one of the largest US financial services institutions by Mphasis BFL's BPO employees, the Indian BPO industry will suffer a major setback, predicts Forrester Research. Msource's three employees along with nine others were arrested after it was reported that they had allegedly stolen the money from the accounts of four customers of their BPO client. 
This, coupled with skyrocketing call center attrition rates, will severely dampen BPO growth rates, especially in the call center customer service space in the next 18 months, says Forrester analyst, John C. McCarthy.
The Msource staff members acquired the passwords to end customer accounts and transferred the money to their own accounts. The fraud occurred from the end of February until this past week.
The misdeeds came to light when the customers noticed the missing funds. Citibank then tracked the activity to Mphasis' Pune customer service center. 
Forrester believes that the incident will undermine call center expansion by as much as 30% as security concerns, regulatory pressure, and end customer backlash lengthen sales cycles, impede the ramping up of larger projects, or drive firms to take the captive route.
The event says the report in all probabilities will call for more regulation of BPO activities in the US and Europe, as well as in India.
Citibank is one of Msource's largest customers, and if the bank cuts back its work, it will be a major setback for the company.
Forrester also urges NASSCOM India's IT industry association to begin lobbying the government on issues like tightening Cyber Law.
Source: www.ciol.com, www.smh.com.au/news, April 8th

New Mphasis BPO centre to hire 3000
The MphasiS BFL Group, a provider of IT and BPO services, has opened its fourth Business Process Outsourcing facility in India in Mangalore. 
With an initial investment of $ 16.1 million, the Mphasis said, its Mangalore facility will provide contact centre services for several Fortune 500 companies. The total employee strength at this facility is expected to reach 3,000 in the initial stage of operations. 
This is the company's fourth facility in India. It already has two facilities in Bangalore and one in Pune. The company also has a BPO facility in Tijuana Mexico. 
MphasiS' BPO business recorded revenues of $ 17.12 million for the quarter ended December 31, 2004 as against $ 11.1 million in the corresponding quarter of the previous year. 
Source: Press Trust of India, April 9th

Nine worst business processes revealed
Pegasystems Inc. provider of smart, rules-based business process management (BPM) software, revealed the nine worst processes carried out by organizations when they are limited by practices that do not take into account customer or organizational needs.

1. Compliance: issues such as fraud, terrorism, Sarbanes-Oxley, data protection etc. 
2. Opening accounts: duplicity of efforts, potential inaccuracy 
3. Event-driven marketing
4. Sorting out the front office: ease of use, 24X7 access 
5. Getting real benefits out of business process outsourcing
6. Enabling contingency processes: flexibility when mishaps occur 
7. Product configuration: customizing products & services to fit each individual client
8. Complaints tracking: valuable feedback, retain via successful resolution 
9. Competitive response: identify and respond to competition via business intelligence
Source: www.bobsguide.com, www.businesswire.com, April 12th

Helios & Matheson to buy vMoksha
Chennai based Helios & Matheson Information Technology is set to acquire vMoksha — including its three entities based in the US, Singapore and India — for $19 million in an all-cash deal. The acquisition would be funded mostly through internal accruals. 
The three entities to bought by Helios & Matheson are vMoksha Technologies (US), vMoksha Technologies (Singapore) and vMoksha Technologies, based in Bangalore. 
The acquisition would help Helios & Matheson strengthen its presence in Europe. 
Helios & Matheson managing director G K Muralikrishna said, “Post acquisition, our headcount would expand to 1,300 people. We plan to have 2,000 employees by the end of 2006.” 
vMoksha is expected to earn $22 million this year ($15 million in 2004-05), with 15% of revenue as profit after tax. 
Source: Times News Network, April 13th

12 Indian firms on best BPOs' list
Here's another feather in India's BPO cap. There are as many as 12 Indian companies in the list of Best Managed outsourcing vendors for 2005 announced by The Black Book of Outsourcing. The rankings are based on customer satisfaction and employee satisfaction surveys, comparisons with other independent vendors, ratings of client performance and reports from global consulting firms.
This year IBM Global/Daksh has been ranked as the number one outsourcer. (IBM acquired Daksh last April for between Rs 700 crore and Rs 750 crore)
Accenture follows Daksh at number two and Hewlett Packard at number three.
Mphasis, the Bangalore-based software service provider founded by ex-Citibanker Jerry Rao, has been ranked at number four, beating bigger industry peers like Infosys, Wipro, Satyam and Cognizant.
Two Indian BPO companies -- Wipro Spectramind and ICICI OneSource, share ranks six and seven respectively.
IT bellwethers like Satyam Computer and Infosys Technologies featured much below at ranks 19 and 25, respectively. 
Other Indian companies to be ranked in the list included i-flex at 32, Tata Consultancy Services at 33, iGate at 41 and Patni Computers at 45. 
Source: www.economictimes.com, April 14th

BPOs come forth to embrace disabled
Armed with the knowledge of computer and other modern technologies, the disabled are knocking at the doors of IT-enabled services and BPO industry but jobs are coming in a trickle. Most of the firms hesitate in framing any guidelines or policy to recruit disabled people as they think this will affect the company's performance, says Ashwin Kumar Aggarwal, Joint Secretary, National Association for the Blind. 
Joint initiatives should be taken up by the government and entrepreneurs to provide education, computer skills and modern techniques, so that they can get more exposure, says Aggarwal, a blind who has done PHD in Special Education. 
The large-sized ITES companies with over 1,000 employees usually employ 10-15 physically challenged and the number is likely to grow. 
"We have 10 disabled employees right now and in future we are going to recruit 10 more for mainstream jobs in our company," says Anubhuti Mittal, Assistant Vice President, GE Capital International services. "The section should be given opportunities for earning their livelihood. If persons with various disabilities can work perfectly, after being trained, then there is no harm in giving them employment," she adds. 
Source: Press Trust of India, April 14th

HP Expands BPO Capabilities with New Center in Poland 
HP plans to invest $50 million over five years to build a new business process outsourcing (BPO) center in Wroclaw, Poland. The center is expected to help drive commerce to Poland, expand HP's growing BPO business globally and enable the company to offer local financial and accounting services to multinational companies that have pan-European operations. 
"The decision to expand HP's BPO business into Poland is a win-win situation for HP and Poland," said Andrezej Dopierala, president, HP Poland. "The country's resources and proximity make it an ideal location for HP to continue the momentum of its services division and the new center will bring new business and jobs to the community." 
Wroclaw was selected as the site to meet the increasing demand for outsourced services due to its central location in Europe and well-developed information technology infrastructure. Once the center is developed, it is expected to employ approximately 1,000 employees who will provide financial and accounting services. 
Source: www.businesswire.com, April 15th

Call centre theft won't hurt Indian outsourcing
It won't be a big deal in the longer term, predicts analyst Gartner
Fears about the security of Indian outsourcing are unlikely to damage the industry in the long term, if the industry acts now to counter these perceptions, according to analyst Gartner. 
The Indian offshore outsourcing industry was rocked by revelations that call centre workers in Pune have been arrested for allegedly looting $350,000 from the accounts of Citibank's US customers.
Gartner said that it had long predicted that a major fraud case or intellectual-property issue would focus unwelcome attention on the security of offshore outsourcing.
But it said in a research note: "We do not believe that this highly publicized incident will seriously damage the Indian business process outsourcing (BPO) industry. Frauds of this type can happen anywhere, and are just as likely to occur in an insourced or captive centre." 
But the analyst house said the "entire Indian offshore industry ecosystem", including vendors, the National Association of Software and Service Companies, local law enforcement and the Indian government must act quickly to counter any perception that Indian BPO poses a security risk. 
Gartner said companies should perform comprehensive security due diligence before outsourcing onshore or offshore. It said companies should assign a team to manage security and privacy issues through the entire life cycle of a sourcing agreement, and should demand detailed service-level agreements that focus on specific security issues such as identity and access management controls. 
Source: www.silicon.com/research/specialreports/offshoring, April 15th 

Prepared by
Abhimanyu Puri, BBA (MAHE) 2nd year

Skyline Business School
Hauz Khas Enclave, New Delhi 110 016
Tel: 2686 4848, 2652 4399
www.SkylineCollege.com

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