This week the Round-Up has discovered a new up and coming outsourcing destination. I discovered it whilst browsing through "The 2009 AT Kearney Global Services Location Index," which ranks countries for their ability to handle business process outsourcing. It does this using a weighted combination of scores on 43 measurements, grouped under three main criteria: financial attractiveness; people skills and availability; and business environment. While inevitably India led the rankings globally, Ghana had the top overall ranking in sub-Saharan Africa, in terms of actual BPO revenue, South Africa is still the continents leader. Ghana’s rank was boosted by financial issues.
It seems every week there is a new destination to keep our eye out for. Apparently Ghana ranked highly because while other countries have engaged in endless conferences and market surveys, the West African nation has worked on political stability and a strong police force to protect civilians and private property. I like the sound of that!
The government has also been heralded for attracting offshore investors by setting up a number of initiatives to make investment more attractive. These include an incubation facility for IT startup firms, embarking on a review of the higher education system to incorporate skills required to compete for global outsourcing tenders, and setting up a special secretariat for IT enabled services and BPO, with a mandate to market Ghana abroad as a competitive destination for offshore outsourcing. Meanwhile the private sector set up the Ghana Association of Software and IT Services Companies (GASSCOM). It all looks very impressive in my view.
Anyway, just thought I would keep you up to date on where outsourcing news may be coming from in the future. However, maybe we should turn our attention to the present, and see what news has already been reported on sourcingfocus.com.
IBM recently announced that it is making up to US$3 billion available to finance IT initiatives in key economic stimulus projects in Europe and Asia-Pacific. The money will be made available through IBM Global Financing, IBM’s lending and leasing business segment. This follows the availability of up to US$2 billion announced by IBM on April 30 to help jump start US economic stimulus programs.
The financing will help organisations move ahead with IT projects in 2009, while awaiting government funding, to build the technological and environmental infrastructure of the 21st century. Isn’t that nice of the guys at IBM?
Totally unrelated to IBM but an IT project none the less, Derbyshire County Council has selected Capgemini for its IT transformation. Capgemini UK plc will replace the Council’s existing IT systems, which are based on older-generation mainframe technology, with the latest SAP enterprise-wide systems designed for local authorities.
The new systems, which will be used by some 8,000 Council employees, are expected to transform the flow of information within and between Council departments, support improved budget and revenue control, enable more informed decision-making, identify procurement savings, and cut time spent by Council staff in processing and accessing data. Wow – that’s a mouthful.
Moving swiftly on from public sector to private, Ford has signed a multi-million pound, five year payroll and time and attendance service deal to Logica. This contract represents an expansion of an existing outsourcing agreement between the two companies.
Under the terms of the agreement, Logica will integrate and modernise Ford’s payroll and time and attendance systems and provide a bureau payroll service for its 13,000 employees across 10 UK locations. The change management project and outsourced service has been initiated to support Ford’s renewed focus on its core automotive business. If there was ever a time for renewed focus in the automobile industry, it is now.
At the end of another whirlwind week of outsourcing news, I feel it is only necessary to give India a mention. The Guardian reported this week that the Indian parliament elected its first ever female speaker, the daughter of a former deputy prime minister and a member of the Dalit caste, once known as Untouchables.
On that progressive note, see you next week and to all of Europe I hope you remembered to place your vote yesterday!