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The sourcingfocus.com weekly news roundup

8 May 2009 12:00 AM | Anonymous

Last week saw the news Round-Up all in fluster about the state of Indian outsourcing. This week it is the US’s turn…

The business press reported heavily on Barack Obama’s controversial offshore tax avoidance crackdown. The US president, who campaigned relentlessly on the issue of closing offshore loopholes, said the steps he announced would raise $210bn (£140bn) over 10 years and "make it easier" for companies to create jobs in Buffalo, New York, rather than in Bangalore, India.

LEAVE INDIA ALONE, I hear you cry!

Corporate America also reacted with dismay, saying the rules would put US companies at a disadvantage to foreign rivals.

The steps announced would include closing the "check box" loophole that enables companies to avoid US and foreign taxes by shifting income to subsidiaries based in offshore tax havens.

Okay let’s be honest, this wont be top of most of the world’s lists when tracking Obama’s policies. However, for the elite few, like the Round-Up and you, the readers, this is a hot topic (elite or easily excitable – I can’t decide).

TPI has also been looking at the US this week with a comprehensive new look at the nation’s outsourcing escapades. This week the research firm released a new report entitled ‘TPI Momentum 2009 Market Trends & Insights Vertical Industries’ The report presents a comprehensive look at outsourcing activity across 26 key sectors of the US economy.

The sectors covered in the report correspond with the widely used Forbes categories. For each vertical, the report documents information on 20 different IT outsourcing (ITO) and business process outsourcing (BPO) functions, providing analysis on each area. Within and across these segments, it shows how client buying patterns have shifted over time, by region, scope and service provider.

Take a look at some of the findings and check out a summary of the report at TPI through this article.

In accordance with the upsurge of interest in outsourcing USA (and everything American with the continued popularity of Obama), Time Warner Cable Inc, a leading US television company, has extended its existing e-Care contract with Convergys. Time Warner Cable has worked with Convergys for over a decade in various lines of business including billing solutions. The company will now extend its agreement in order to create a superior customer experience.

Convergys will work with Time Warner Cable to offer ‘e-Care alternative customer contact channels’ including both email and online chat in both English and Spanish. Through these channels, customers can receive account information and support, digital phone technical support, and answers to queries about billing, browsing, connectivity, and email issues.

Another North American giant also got in on the outsourcing act this week. Xerox Corporation, the worlds largest printing company, signing an IT outsourcing agreement with CSC, the US outsourcer. The contract, which has a seven-year base period, is valued in excess of US $100 million.

CSC will provide mainframe processing and application support to Xerox’s North American business.

So although Obama has shocked the outsourcing world with his less-than outsourcing-friendly tax plans, there is still lots going on across the pond and that’s a good thing for us all. You always know where to come for a bit of positivity during uncertain economic times.

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