Industry news

Patni, leading global IT and BPO services provider, has announced the establishment of a new North American hub for Business Process Outsourcing operations in El Paso, Texas. The move was triggered by a multiyear, multimillion-dollar BPO services contract with a leading healthcare technology and services provider. Adding the El Paso center follows through on the stated corporate strategy to invest in specific regions around the world and contribute toward generating economic opportunities in these regions. Patni has set a goal to increase the size and scope of its North American operations to adapt to market conditions that encourage the establishment of more on-shore delivery capabilities.

Establishing the new service hub expands Patnis Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) delivery capabilities to service North American customers from domestic locations in a cost-effective manner, deliver cost take-outs locally and employ highly skilled local talent. When fully staffed, it will employ more than 300 skilled professionals providing a wide range of insurance, financial services, finance and accounting, technical support and multi-lingual helpdesk services to Patnis North American clients. In addition, the BPO services deal strengthens Patnis healthcare delivery capability across the Payers and Providers segment.

Patni currently has three principal service delivery centers in the U.S. in Bloomington, Ill.; Milpitas, Calif.; and Cambridge, Mass., and is committed to adding more on-shore delivery capabilities.

"We have embarked on a plan to expand our domestic operations to address evolving customer requirements for cost-effective services from onshore locations," said Naresh Lakhanpal, EVP and President, Patni Americas. "El Paso is a preferred domestic location possessing state-of-the-art infrastructure, cost advantages, a positive business climate, support from the local government and a highly skilled work force."

The establishment of the El Paso site follows Patnis recent move to open a "nearshore" center in Queretaro, Mexico, to serve North American and Latin American markets and augment the companys global delivery capabilities. The Texas location offers Patni access to U.S. customers that either prefer to or are required by regulators to keep sensitive data processing operations on shore.

Patni plans to expand the offerings on site to deliver high-quality BPO services to a wide range of industries central to the companys mission, including life sciences, telecommunications, financial services, insurance and manufacturing.

Transaction Establishes Wipro’s First Data Center in Europe, Strengthens IT Infrastructure Management Portfolio

Wipro Technologies, the global IT services business of Wipro Limited (NYSE:WIT) and Citibank N.A. (NYSE:C) announced that the companies have signed an agreement for Wipro to take over the operation and management of Citi’s data center in Meerbusch Germany, a suburb of Dusseldorf. In conjunction with the transaction, Wipro has taken the data center from Citi and intends to use the site to support other outsourcing clients. Citi will lease back office and data center space from Wipro for at least 30 months, and Wipro will provide Citi with facilities management and physical infrastructure management services during the period.

The Meerbusch, Germany center will be Wipro’s first data center facility in Europe and will enable the Company to offer a full portfolio of infrastructure management solutions to its global clients. Wipro expects the data center to support the delivery of its mainframe, Windows, Unix, Linux and AS/400 outsourcing services. In addition, the Company plans to extend its Dynamically Adaptive Infrastructure (DAI) cloud platform to the German data center. The expanded capabilities will enable Wipro to deliver comprehensive outsourcing solutions in Europe that can be managed remotely, delivered in the Company’s data center or installed on the Company’s cloud infrastructure.

“The addition of a data center in Europe represents an important milestone in the Company’s growth strategy,” stated Sameer Kishore, President of Wipro Infocrossing, the data center outsourcing practice of Wipro. “In 2007, Wipro acquired Infocrossing, a US-based provider of data center outsourcing solutions. The addition of the data center delivery capability enabled Wipro to compete more aggressively for large, total outsourcing engagements in the US. The Meerbusch facility will enable Wipro to extend its capabilities to the European market and strengthen the Company’s ability to compete for global outsourcing opportunities.”

The facility is comprised of approximately 9,000 square meters of total space, including approximately 1,700 square meters of raised floor. The facility meets the standards for a Tier III data center and has been owned and operated by Citi for more than 20 years. The agreement transfers ownership of the data center and operations to Wipro, and provides a period of up to 30 months for Citi to migrate its computing infrastructure out of the data center. As Citi vacates the facility, Wipro plans to make improvements to the data center and begin migrating new clients to the site.

“Wipro’s data center capabilities have become a key component when competing for large outsourcing engagements,” added Ralf Reich, General Manager & Country Head, Germany. “With the addition of the Meerbusch site, we will be able to deliver a full portfolio of mainframe, Windows and AS/400 outsourcing services from a Wipro data center in Europe, and extend our cloud computing platform to the region. This demonstrates our commitment to building localized and global delivery capabilities, and provides an important point of differentiation from our competitors,” Mr. Reich concluded.

The US and UK arms of PricewaterhouseCoopers (PwC) have awarded a contract for back-office information technology (IT) support to Tata Consultancy Services Ltd (TCS), India's biggest IT company, after the professional services firm announced laying off at least 500 IT employees at its Tampa Bay, Florida office, according to two PwC executives who didn't want to be identified.

TCS declined comment. Its spokesperson Pradipta Bagchi said the firm does not comment on individual clients.

Those being laid off can carry on till 31 December and apply for other "open positions" within the firm, Jonathan Stoner, spokesperson for PwC US, said in a phone interview. If they cannot get another job by then, they would be paid a generous severance package, he added.

Before the layoffs were announced, there were some 1,100 IT professionals at its Tampa Bay office, which employs over 1,800 people in all. The layoffs are part of a restructuring exercise aimed at aligning the internal IT needs of PwC's US and UK firms, according to Stoner.

These two firms would outsource IT services to an "India-based vendor", he added. He refused to name the vendor, citing company policy.

A few of those being laid off are Indians. One of them said the move has triggered "quite a stir" in Florida, more so because earlier this year, the firm cut back its tax practice in Orlando. "PwC is one of the bigger employers in Tampa," he added, requesting anonymity. "So many people laid off in one stroke is big news here."

The deal signals that large firms in the US and Europe don't want in-house IT professionals on their payrolls for back-office support, said an analyst at the Indian arm of a global consulting firm.

"Indian outsource managers typically charge two-three times the employee cost of the company closing its back office," added this person, who asked that neither he nor his firm be identified.

This is because such outsourcing includes all costs of delivery: travel, communication, establishment, etc. The company outsourcing its work saves on establishment cost.

So, if PwC was paying those being laid off at Tampa $30 million a year collectively, TCS would charge at least $50-60 million annually, he added.

Outsourcing firms such as TCS offer back-office support to so many firms that their cost of delivery is very small compared with large firms managing their own back-offices, said another analyst who, too, did not want to be identified.

"Companies such as TCS have well-evolved systems and practices, which make back-office management extremely cost-efficient," he added.

Simon Tennant, Head of Finance Consulting at PA Consulting Group writes about how empowering finance business partners, equips them with business intelligence.

Empower finance business partners and equip them with business intelligence.

Chief Financial Officers (CFOs) cannot monitor, manage or supervise every financial decision made in a company; especially where the company is over a certain size or is particularly disparate. Budgets are allocated to each department and, to a certain extent, each department then has free rein to spend it as outlined in their business plan, provided business targets are met. But in the current economic climate, a CFO can seldom afford to provide budget-holders with any slack. Clearly a certain amount of devolution is essential, but line managers within the various business departments often have their own departmental concerns in mind, more than the concerns or priorities of the CFO.

So how can adequate control be deployed?

One solution is to deploy Finance Business Partners (FBPs) throughout the business. These are individuals with finance expertise who become ‘finance ambassadors, empowered to make financial decisions, each equipped with business intelligence and the CFO’s messages and goals.

However, for a successful partnering relationship, a finance business partner’s role must go beyond the management of the planning, forecasting and budgeting cycle for the department. They should provide innovation by supporting business case development, evaluating procurement options and providing alternative solutions – rather than just being perceived and acting as the controlling hand of finance within the business.

FBPs are of greatest value when they are fed the appropriate data and become a prime customer of the business intelligence (BI) that comes from the shared service centres or internal centres of excellence. Such interaction increases FBPs’ efficiency as the data allows them to make more informed decisions and engage successfully with the relevant stakeholders. To be most effective, BI should be designed to directly feed into business decisions, allowing FBPs to drill-down into the detail when they have inspiration, and be visually uncomplicated to enable finance business partners to clearly demonstrate their proposals to the business.

Innovations and improvements in efficiency based on high quality business intelligence can be quickly shared across the business if FBPs are encouraged to collaborate and become an acknowledged community. How this can be achieved will be dependent upon the culture of the organisation, but some have used Web 2.0-based technologies and collaborative tools such as internal blogs, wikis and discussion boards as conduits through which to share best practice information and experience.

Of course against these blue skies of innovation, collaboration and business-savvy finance business partners, financial accountability and line reporting are still necessary. CFOs should expect conflict in business partnering relationships given that if FBPs are too controlling they may quarrel with the business, and if they are too lax their arguments will be with central finance. Even the best FBPs are likely to suffer private conflict as they seek to meet the sometimes incompatible needs.

Achieving a balance is vital; the worst case scenario is not where finance is too close to the business to be objective, but where finance gets cut out of business decisions as they are seen as a blocker.

All things considered, this has been a successful week for the outsourcing community, with a spate of newly signed projects and announcements arriving in all of our inboxes on a daily basis to warm the cockles of even the most hardened doom-and-gloom monger.

Don’t believe us? Well, take the announcement by BT that it had been awarded a contract by Nationwide to provide managed security services as an example.

Or even the engineering management contract signed this week by Meggitt with HCL or, come to think of it, the record 2nd quarter results announced by leading provider of information technology, consulting and business process outsourcing, Cognizant.

But before you start putting up the bunting, balloons and flags to celebrate the end of all your financial woes, it’s worth sparing a thought for those less fortunate. This week, the Co-operative announced that it was bringing 36 IT roles back in-house following its acquisition last year of supermarket chain Somerfield.

The roles relate to helpdesk and store systems support, with the company opting to re-create jobs previously outsourced by Somerfield.

Further proof, were it needed, that our economic woes are not yet at an end, came with the news that cancelled public sector contracts could precipitate a Double Dip Recession.

Although that may sound like an exciting new ride at Alton Towers, we’re fairly sure that it’s much, much longer, and far less exciting, so perhaps a little perspective is no bad thing.

Netcall plc has completed the agreed acquisition of Telephonetics plc.

The joining together of the two companies and the further integration of Q-Max, acquired by Netcall in 2009, delivers a wide and compelling suite of contact centre and enterprise communications solutions.

Henrik Bang

Organisations require a number of tools to plan and forecast demand and supply of agents, route calls effectively, automate appropriate transactions, deliver exceptional caller experience, and gather together disparate sources of data to provide valuable management information.

Henrik Bang, Netcall CEO, commented, ‘The enlarged Netcall group delivers an enhanced proposition for customer interaction solutions with a broadened and improved product offering. I am really excited about the future opportunities for the group to deliver the key benefits of improved customer experience and minimised costs to organisations.’

Infosys BPO completed the acquisition of US-based insurance and retirement business process solutions provider McCamish Systems LLC. The deal establishes Infosys BPO as a key player in business platform services for the insurance and financial services sector and will enhance companys capability to deliver end-to-end business solutions, according to a press release.

With this acquisition,Infosys BPO strengthens its presence as a global outsourcing services provider.We look forward to an exceptional relationship with McCamish Systems LLC and are delighted to be working with a dynamic and outstanding group of individuals", Ritesh Idnani, Head, World Wide sales and marketing and business Head, Banking, Capital Markets, Insurance, Healthcare and Emerging Markets and Americas Operations, Infosys BPO said.

J Gordon Beckhan Jr., President and CEO, McCamish Systems said "we as a part of Infosys BPO are excited to be associated with an organisation that is driven by an ethos of values and knowledge capital. Our customers would also benefit from this partnership at a global scale".

Meggitt have signed an engineering management outsourcing contract with HCL. The contract is worth $50 million and will see HCL providing engineering services for the companys global operations. The contract was awarded after a multi-vendor review which ran for several months. Terry Twigger, Meggitts chief executive says that this strategic initiative will help us respond to the current economic environment while successfully positioning us for future growth.

"With more than three decades of experience helping large corporations address complex engineering environments, HCL integrates the right capabilities and business models to ensure organizations such as Meggitt establish a competitive advantage," said Sandeep Kishore, senior VP and global head of sales and practice, HCL ERS.

"HCLs alignment to the key business imperatives of Meggitt and synergy with business objectives proved to be the biggest differentiators during the evaluation process and culminated in this strategic win," he added.

Headquartered in the United Kingdom, Meggitt PLC is an international group operating in North America, Europe and Asia, known for its specialised extreme environment engineering. Meggitt is a world leader in civil and military aerospace equipment, sensing systems, combat support and defence systems training, the release added.

Meggitt is a UK headquartered company with a presence in North America, Europe and Asia. It specialises in extreme environment engineering

C3/CustomerContactChannels, a global contact center provider, announced today that it is in the process of opening its newest contact center in Salt Lake City, Utah. The Company will bring 500 new jobs to the Region in addition to establishing its West Region technology hub.

Centrally located at 5215 Wiley Post Way in Salt Lake City, the new center is approximately 40,000 square feet in size. In addition to its efforts to fill several key local management positions, C3/CustomerContactChannels is actively recruiting for licensed insurance agents within the area and is offering a $500 bonus after employment to agents with licenses that expire in 2011 or later. Additionally, the Company is offering paid training and licensing to qualified applicants interested in obtaining their insurance license.

"Salt Lake City is ideal for C3/CustomerContactChannels to set up operations due to its highly educated workforce, strong work ethic, and multilingual capabilities," commented Bob Tenzer, SVP of Human Resources for C3/CustomerContactChannels. "The response thus far to our recruitment efforts has been quite strong and we are very happy that our Company's growth can bring so many new jobs to this area."

C3/CustomerContactChannels prides itself on a culture that encourages employee and leadership development, community involvement, and career advancement in an environment that is both fun and exciting. Qualified applicants can apply online by submitting a cover letter and resume at www.c3connect.com/careers .

The C3/CustomerContactChannels Management team founded Florida-based Precision Response Corporation (PRC) in 1982, a leading, global provider of contact center services which grew the Company to over 14,000 employees globally under their leadership, and sold in 2000 to IAC/InterActiveCorp. C3/CustomerContactChannels is uniquely positioned to offer boutique style client management in a global operating environment built upon proven operational best practices and a veteran leadership team.

Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, has been recognized by HP with the Application Implementation Partner of the Year Award at HP Software Universe 2010. Working together for more than 18 years, Capgemini and HP have leveraged their alliance to provide solutions for major financial services clients.

During the awards ceremony at HP Software Universe 2010, Capgemini’s sales and delivery teams were recognized for their application management services that satisfied stakeholders at leading financial services institutions. By leveraging its collaboration with HP, Capgemini has helped one Wall Street firm define a structured, enterprise-wide testing methodology with oversight and governance, allowing the company to better utilize its investment in HP testing products. Capgemini has also helped a major global banking company execute a successful HP Quality Center upgrade for more than 2,000 projects and 10,000 clients and users.

“The combination of Capgemini’s implementation experience and HP’s application testing products and services has offered critical solutions to a number of the world’s largest financial institutions,” said Roy Stansbury, managing director for Capgemini financial services in North America. “Capgemini’s alliance with HP has augmented our clients’ abilities, keeping them armed with the most relevant and cutting-edge application management and testing strategies.”

Other examples of success include Capgemini’s work with a major mutual fund company to configure their HP testing products in order to provide a CIO-level dashboard view of their testing operations, and realize the expected ROI on their tool set. Also, a major custodian bank with worldwide operations was able to define a clear, actionable plan for deploying an enterprise-wide test strategy, using HP testing products and Capgemini’s financial services expertise and strategic approach.

“For well over a decade, we have partnered with Capgemini to respond to client needs, and deliver solutions successfully into the market, resulting in high client satisfaction,” said Scott Strubel, vice president, HP Americas Alliances and Channels. “As HP’s Application Implementation Partner of the Year, Capgemini has effectively demonstrated how they help clients transform their businesses through the innovative use of HP products and services.”