Industry news

Aranxa

Aranxa is a UK based company with a development centre in Sri Lanka. Starting out as a development services provider in the Microsoft, Java and LAMP environments the company has its own highly customisable ERP solution and Content Management Solution.

Eurocenter DDC Ltd

Eurocenter DDC Ltd. is an ISO 9001:2000 and CMMI level -3 certified software engineering organisation of international repute with offices based in Colombo, Sri Lanka and Oslo, Norway. Eurocenter believes in empowering customers to succeed in the Global IT economy by offering a dedicated off-shore delivery model based on ‘Extended Engineering’. The company has been in operation since 2000.

HelloCorp

HelloCorp, established in 2002, is a specialised Business Process Outsourcing (BPO) services provider; and is a fully-owned subsidiary of Expolanka Holdings in Sri Lanka. HelloCorp offers BPO services to leading companies from different parts of the world including U.S.A., U.K., Australia, Singapore and Middle East.

HelloCorp operates two state-of-the-art BPO service delivery location comprising of 120 high-end workstations, in the heart of Colombo, the commercial capital of Sri Lanka. We are currently in the certification stage of ISO 27001 Information Security Standards, consulted by KPMG Ford, Rhodes, Thornton & Co. and we run a fully redundant IT, Telecommunication infrastructure to support its round-the-clock operations.

HelloCorp is the most diversified BPO service providers in Sri Lanka; with a local management team which boasts the highest levels of collective experience in multi-disciplinary international BPO service delivery.

We also manage other BPO services such as outsourced legal secretarial services, remote IT support, back office processing and inbound call handling. We have 18 toll-free numbers which are answered at our centre in English, Japanese, French and German on a 24 X 7 basis.

hSenid Software International

hSenid Software International is a reputed software company founded in 1997, based in Sri Lanka, with clients in Asia, Europe and America. Our core competencies lie within wireless applications and backend Integration

(Middleware) for Telecommunication Companies and Enterprise markets, as well as HRIS applications, Open Source software and Outsourcing.

hSenid offers offshore outsourcing services through several models such as Onsite contract worker/projects, Offshore project and Onsite-offshore project, in order to match with different scenarios and meet the needs of our clients.

Years of experience and domain expertise, increased flexibility on the operational level and a proven track record on outsourcing with a staff of over 280 skilled employees including over 220 engineers worldwide, hSenid offers the best solutions for your business whilst currently carrying out its operations from United States, Singapore, Malaysia, India and Sri Lanka.

JKCS

JKCS is a premier software services provider specializing in outsourcing services & aviation software solutions. We are based in Sri Lanka with offices in UK and UAE . Our service portfolio includes Resourcing (Onsite Consultants), Offshore Development/Support Services, Software projects and Products. We are a company with a special focus on aviation and travel.

Our customers benefit from solutions delivered through our products and outsourcing their software engineering projects to a company that has experience in working with big names (P&O Nedloyd, Emirates Airlines, NTT, SAS etc) but offers continued cost-advantage and flexibility.

OrionCity

OrionCity Pvt Ltd is presently Colombo’s first and only IT-Park. It is located in the heart of Colombo on 13 acres of land. The location is conveniently located near the heart of the city as well 25 km from the Bandaranayke international airport.

Currently Sri Lanka’s IT and BPO industry is growing at a remarkable pace and most of this sectors operations are based primarily in Colombo. However the amount of space required and the infrastructure necessary to support further expansion and growth to even their basic power requirements is not adequate, let alone the more advanced IT services.

Sabre Technologies

Sabre Technologies is an IT Services and Solutions company with operations in Sri Lanka and USA. With experience in servicing a wide and varying clientele in US East Coast, Sabre Technologies are now ready to work with UK & Irish companies as their technology partner to bring their innovations faster to the market at a lower cost to their customers.

Operating on an ISO 9001:2000 certified process framework and backed by one of the strongest companies in Sri Lanka; Sabre Technologies gives its customers the attention it expects from a smaller company and reliability of a large company.

While Sabre Technologies possess a strong skill set across industry standard technologies such as MS .NET and JEE, it also has specialized skills in RFID, NFC, Mobile Application development and building applications for SaaS model.

Sapientia Credit consortium

Sapientia Credit consortium (Pvt) ltd provides a range of integrated business solutions that will streamline and facilitate your core business.

TechSys (Pvt) Ltd.

TechSys (Pvt) Ltd. a fully owned subsidiary of JIT Holdings is Sri Lanka’s pioneer Man¬aged ICT Resource and Solutions Provider, TechSys allows clients to focus on their core business by mobilizing the “right people” with the “right skills” as well as offering robust software solutions based on consistent industry best-practices and standards.

We harness the true potential of technology to enhance the client’s business needs. TechSys delivers flexibility to clients whilst providing increased experience and exposure to the employees on site. Our business advantages are driven through the IT services and solutions we offer. Our resources and solutions serve some of the leading businesses in the government, financial and telecommunication sectors, locally and overseas.

Our customer success stories attest to the core competencies and professionalism we possess in the industry. In addition to providing Managed ICT Resources, TechSys also develops end to end solutions and helps transform a business through integrated technology and infrastructure.

With Business Development expertise at the core of the TechSys process model, the development team is always sensitive to a customer’s needs and requirements. Change, Time and Cost, are the 3 volatile components that are coordinated by the project development and operations team.

Virtusa

Virtusa (NASDAQ : VRTU) is a financially strong and growing global IT services company with over 4,300 consultants and a 13-year history of providing full software lifecycle service offerings to software product firms and enterprise clients in the communications and technology; banking, financial services & insurance; and media & information markets. We use a global delivery model that leverages expertise through our advanced technology centres, delivering quality services and solutions with very competitive pricing. We are one of four strategic suppliers of IT services to British Telecom. Virtusa is operates in UK, USA, Canada, Sri Lanka and India.

Just In Time Group (Pvt.) Limited

Just in Time Group., is a young and dynamic team of industry specific professionals, which derives its strength from the numerous relationships world wide, offering flexible and customized end-to-end solutions, in the field of ICT, backed by the pool of knowledge and expertise available in-house.

Whilst specializing in the IT/Software/ networking arenas the Group has a strong presence in the BPO and e-learning solutions and has also made numerous strategies investments in non –IT related Industry Sectors such as construction, Education, Banking etc.

The management team comprising members with wide and varying experiences in the field of ICT, has in the past, used its strength to actively contribute to Sri Lanka’s IT industry. Through strategic investments and working relationships with other IT resource companies, JIT is also able to support within its framework, multiple platforms and other professional services related to software & network projects as well as hardware supply and support.

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The National Outsourcing Association

invites you to the

Inaugural Sri Lanka Forum

Tuesday 30th June 2009

8.45am - 5.00pm

Park Plaza Riverbank Hotel, 18 Albert Embankment, London, SE1 7TJ

A must attend event for anyone interested in business in Sri Lanka or offshoring in general

	The future belongs to Sri Lanka, not India or Eastern Europe Despite the conflict in the north, Sri Lanka's outsourcing market still grew 23 percent during 2006-2007. With the conflict now over Sri Lanka is primed to be the next offshoring hub for the ITO and BPO markets. With the Colombo Stock Exchange aiming to double its capitalisation to $14 billion in a year and the government expected to almost double the nation’s 2009 growth forecast to five percent because of the increase in business confidence, the change in Sri Lanka is clear. This first of its kind event will examine Sri Lanka as the future leader in the ITO and BPO markets, with esteemed speakers from the Information and Communication Technology Agency of Sri Lanka, the Chartered Institute of Management Accountants, the British Computer Society and Quocirca Ltd discussing the opportunities and implications of offshoring to this key destination. Delegates will get the opportunity to hear end user success stories and thoughts on Sri Lanka's prospects of becoming a leading player in the offshoring stage from HSBC and The History Press who currently operate in Sri Lanka. The event will include: The state of the Sri Lankan economy and how the end of the conflict will positively impact business The outlook for offshoring to Sri Lanka, including grants and benefits for UK companies 10 leading suppliers showcasing what Sri Lanka really has to offer

Agenda

8.45am - Morning seminar

1.00pm - Networking Lunch

From 2.00pm - Informal Networking Meetings

Please note this event is free of charge to attend and delegates are welcome to join at any point during the day

To register, please email nataliem@noa.co.uk or call 0207 292 8686

New European-wide research from GFT Technologies AG (GFT), reveals that large retail banks expect more innovation from IT in this time of economic crisis. The research, carried out by Pierre Audoin Consultants (PAC) into the impact of IT in shaping business success in the financial industry, calls for IT to move from an operational to an innovative role within the bank.

The research reveals that financial institutions across Europe are facing three main issues; the 3Cs of competition, consolidation and cost-efficiencies. Many European countries have been seeing an increase in competition in the financial services sector, as a result of globalisation, and the banking crisis has forced consolidation and M&A throughout Europe. All of this has increased the need for operational cost-efficiencies, often seen as the responsibility IT.

The UK, possibly the European country most affected by the banking crisis, nevertheless has a mature financial services sector and long experience of a competitive market place. Thus the main issue preoccupying respondents were the second two Cs; the impact of consolidation in the sector (35percent) and cost-efficiencies (21 percent), where the tremendous write-downs are probably behind an above average percentage.

In other countries similar themes prevailed:

54 percent of German respondents cited globalisation/internationalisation as an important or very important issue.

33 percent of French banks named increased competition as a major challenge and had an above average response in citing mergers and acquisitions as having a significant impact (38 percent against an average response across Europe of 33 percent)

Spanish banks also cited mergers and acquisitions as a challenge to the sector (46percent) but seemed much less troubled by the need for efficiency increases or cost-reductions, perhaps because they are amongst the most efficient banks in the world?[2]

Graham Underwood, Managing Director, GFT UK commented, “across Europe banks are feeling the impact of the internationalisation coupled with the economic crisis. But, if financial institutions are going to position themselves for the upturn, IT must begin to offer innovation and not just operational solutions”. He continued, “This may mean considering a cross-European approach, to take advantage of Spanish efficiencies and British understanding of a competitive market within a project. Our research shows that it’s time for IT to move out of the back room. Rather than merely being a service provider, IT needs to reposition itself as a consulting partner, offering different strategic solutions at differing levels of budget and scope”.

IT and the business side of banking have also become misaligned according to GFT’s research. The IT sector itself recognises it is guilty of not engaging in strategic decisions and projecting an image of only being able to respond to tactical business issues. IT believes it could offer more to the business; business recognises that it does not fully understand what IT can offer. It sees some limitations in IT, but also realises it could benefit from better use of IT and believes that technology still has great potential to impact the business.

91 percent of business respondents believe there is still potential for IT to have an impact on increasing efficiency

89 percent forsee an impact for IT on new business models and technologies

78 percent see IT as having an effect on the increase in competition.

Graham Underwood explained “financial institutions clearly realise that IT still has huge potential to shape the business and can help fight the challenge of the 3Cs of competition, consolidation and cost-efficiencies as a strategic partner to the business side of the bank. It’s time to unlock the strategic potential of IT; to get the bank at full, innovative strength, ready for the recovery when it comes.”

Ovum’s report titled UK ITO: opportunities in a recession, shows that the UK IT outsourcing (ITO) market has been more resilient to the downturn during the first half of 2009 than previously expected. Deals signed by HP-EDS (Aviva and the Ministry of Defence), BT (National Health Service), CSC and IBM (UK Identity and Passport Service), and Fujitsu Services (Marks & Spencer) since January 2009 will add well over £2 billion of new ITO spend into the market over the lifetime of the deals – which range between six and ten years.

However, the broader picture of the IT services market in the UK is a little less optimistic. Most suppliers, particularly the tier-2 and tier-3 players, are finding life very tough in the current climate, while those at the top end are clearly benefitting from significant contract wins.

Key findings to be announced in the report include:

Top ten see ITO deal values jump 31%:

The research shows that the ten biggest UK ITO providers (HP-EDS, Fujitsu, IBM, CSC, Capgemini, BT, Atos Origin, Logica, Computacenter and Siemens) saw their total contract value (TCV) of ITO deals signed grow an impressive 31% in 1H09, even though the total number of deals was down 17%. This shows that it is a far more difficult market environment in which to do business, but those that do come through are bigger and potentially more lucrative at the top end of the market.

Public sector, retail and insurance drive growth:

The report also detailed how the vertical sectors that are actively investing in ITO in the UK in 2009 are the public sector, retail and insurance sectors. The latter two of which have been impacted by the economic recession and/or the banking crisis, and are actively deploying ITO to drive out costs.

Public sector is by far the biggest opportunity area in 1H09, and it too is accelerating cost-reduction programmes to respond to the challenging economic conditions. However, the deals signed in H109 at the MoD, NHS and UKIPS are all a natural continuation of existing programmes that are directed by government policy, in areas such as health-care transformation, national ID cards and a more integrated and modern armed forces service. Government commitments will provide further opportunities in 2H09, with the Environment Agency and UKIPS due to sign three deals each worth several hundred million pounds.

Retail too is under enormous pressure to cut costs and improve profitability as spending falls. So the award of a £142 million IT support service deal to Fujitsu Services by Marks & Spencer is a sign that major retailers are now reconsidering ITO as a means to solve some of their financial challenges. Insurance meanwhile is also showing a strong appetite for outsourcing – for example, Aviva’s decision to engage HP-EDS for a $1 billion ITO programme aims to reduce its IT costs by a planned 20% per year. Capita’s recent good form in the commercial sector can also be attributed to big wins in the UK insurance sector.

Polarisation of the UK ITO market is accelerating:

Overall the report concluded that the UK ITO market is heavily weighted to the large providers. The mid-sized and niche UK ITO players such as Steria, Northgate, Phoenix and Agilisys therefore have a smaller potential ITO opportunity to address.

Ovum has subsequently forecasted that this is accelerating the polarisation of the UK ITO market between the big players at the top which continue to make progress and the smaller players below which are being further squeezed as a result.

This will only continue to encourage further merger and acquisition activity in the UK market for the foreseeable future, with the large players continuing to make a land grab by purchasing their smaller rivals. Capita’s decision to acquire Carillion IT Services last week emphasises the fact that small and niche players will struggle to remain independent in the current climate.

An undisclosed US intelligence agency has signed a contract with CSC for the provision of information technology transformation services . The contract has a one-year base period and four one-year options, bringing the estimated total five-year contract value to US $200 million.

Under the terms of the agreement, CSC will provide end user services ranging from planning, deployment, and sustainment of hardware and software (directory, e-mail, collaboration, Web and messaging) to the development and migration of services to the next generation of multi-security platforms

Despite the recession, or perhaps because of it, outsourcing remains big business. I recently read that more than half of UK companies still regularly outsource business critical applications. However, if we are to believe the papers, outsourcing is in decline: the value of outsourcing deals is falling, contracts are being renegotiated in an effort to cut costs and we are in the middle of a supplier price war!

Whether or not this is true, it certainly isn’t the whole picture, or at least not from where I am standing. It seems to me that certain types of outsourcing are performing better than others. For example niche services like software development and bookkeeping still seem to be growing. I believe we are actually seeing two phenomena that will continue whatever the economic climate, because they make sound business sense in a globalised world. First, different regions are emerging as off-shore centres of excellence for particular requirements. For example, Eastern Europe for programming skills or the Philippines for call centres. Second, nearshoring is becoming more popular.

The first phenomenon has been predicted for a long time and we have seen it many times before in other industries. The second and its causes are, in my view, more interesting.

A decade ago the primary objective of outsourcing was to improve costs, hence the success of traditional offshoring centres. Today, priorities have changed: while saving money remains important especially in today’s business climate, it is being caught by the requirement for outsourcing to actively support the business and contribute to the achievement of higher-end strategic goals. I see this on a daily basis from my customers - cost reduction is no longer enough to swing an outsourcing decision. Many customers these days are asking about long term relationships, skills, security and quality as much as they are asking about pricing.

In addition, some of the advantages of offshoring further afield are slowly eroding. The costs of software development in Brazil (for North American organisations) and Eastern Europe (for European ones) are now on a par with Far Eastern destinations. Some perceived disadvantages of farshoring are seen as increasing: security in some destinations has become a greater concern. As the managing director of a UK company I met recently said: “Although a terrorist attack is unlikely, I’d rather offshore to somewhere safer, if it meets all my other criteria.”

At the same time, some of the advantages of nearshoring destinations, particularly in Eastern Europe are creeping up the value scale. For example, countries in the European Union (EU) adhere to EU Intellectual Property law. A short time difference means ease of management and many problems can even be resolved within a single working day. Most nearshoring destinations like Ireland, Poland and Russia offer extremely good higher education systems and therefore can provide a highly-skilled work force: here in Poland we have a higher percentage of school leavers going on to study at university that in Britain. Furthermore most nearshoring destinations currently offer a low average churn rate. Surely these factors are all contributing to a rise in demand of nearshoring services.

I also think it is important to remember that some near-shoring destinations are deliberately not geared up to offer large-scale, fast-ramp up operations. Instead, some are choosing to offer more niche, bespoke services, trading on quality as their differentiator. If organisations are shifting away from outsourcing from larger contracts to multi-sourcing then this approach will sit very well with them.

Multisourcing is not short-term “quick-fix” outsourcing. Because it involves managing multiple parties it is a more long-term strategy and companies taking it up are looking to develop lasting relationships with suppliers who can really become an extension of their core in-house team. This sort of relationship involves more face time, high-quality niche skills, two-way consultancy and often dedicated teams at the outsourcer. These are all attributes that today’s nearshoring destinations excel at.

At the beginning of the year I read that 2009 would be the year of nearshoring. This is now looking more likely than ever. Most of the companies I have met in the last twelve months have either decided to go straight to nearshoring without trying farshoring or are switching from further afield to nearshoring. It appears that a growing number of UK companies looking to outsource IT services in particular, consider just the UK itself, Ireland, Poland, Russia and the Ukraine.

While nearshoring may not be right for all organisations, when it is part of a thoroughly planned sourcing strategy it can deliver impressive bottom-line results with little effort from the company outsourcing the project. The ever increasing number of companies outsourcing to nearshore destinations is a clear testament to this.

The U.S Defence Information Systems Agency (DISA) has awarded EDS a five-year, US $34 million contract renewal. Under the terms of the agreement EDS will continue supporting DISA’s Multinational Information Sharing (MNIS) program.

The aim of the project is to enhance the mission capabilities and effectiveness of the MNIS Program Management Office. The final goal of the development is to ensure seamless information sharing among U.S. forces with their allied and coalition partners for military operations planning purposes.

The services EDS will provide include systems engineering and technical assistance support. The MNIS program facilitates the sharing of encrypted information in a single joint environment to effective communication and promote teamwork among Department of Defence components, Combatant Commands and eligible foreign nations.

Capgemini, providers of consulting, technology and outsourcing services already present in Poland, announced it is expanding its presence in Eastern Europe to meet ongoing client demand for outsourcing services. The new technology centre in Iasi, Romania, will perform IT help desk support and business continuity work for Capgemini’s outsourcing clients.

Iasi is one of the largest university towns in Romania, offering a qualified pool of talented and skilled employees. The language capabilities of the graduates also make it an ideal location to enable Capgemini to meet continued demand from its European outsourcing clients, supplying highly skilled staff fluent in French, German, English, Italian and Spanish.

The BT eShop service will include secure online payment processing tools from Sage Pay, the UK’s largest independent Internet Payment Service Provider, to help businesses quickly set-up a secure online store and reduce the risk of fraud across all of their online transactions.

BT eShop provides a comprehensive package to enable businesses to quickly start selling products and services from their own web site without the need for software installation or any technical knowledge. It includes functionality to manage all of the back office functions e.g. customer orders, warehouse management, multi-language support, shipping and payment methods with a full range of marketing tools.

“Having a strong online retail presence is forming a big part of many businesses armoury for fighting the downturn,” said Jerry Thompson, Director Business Products and Online, BT Business. “There is a real need for a service that simplifies ecommerce and removes the administrative complexities of online payment processing for small businesses in particular. The launch of BT eShop with Sage Pay does exactly this, helping companies securely pocket their online riches”.

We all know that outsourcing is being considered more than ever by businesses who are desperately trying to cut back on expenditure in what has become a very unforgiving economy and employment market. In particular many call centres are now entertaining the notion of outsourcing some of their business practices, especially their call overflows, in order to significantly reduce their outgoings. And it goes without saying that outsourcing has numerous advantages that can make it an attractive proposition to contact centres. This week Call Centre and Customer Management outlined these advantages as; improving quality of service, reducing capital costs, reducing operational costs, and learning new skill sets. Now I know that you are reading this and thinking ‘why is the Round-Up telling us about the benefits of outsourcing – its like teaching your grandmother to suck eggs’. Just stay with me on this…

I am bringing this to your attention because it was also reported that recent concerns have surfaced over the quality of customer services in UK contact centres. According to the consumer programme Watchdog, the standard of customer service from contact centres is actually worsening. Consumers up and down the UK have reportedly been left frustrated by unresolved customer service interaction. According to the report from the BBC programme, of the 7,120 respondents of a customer satisfaction survey as many as three quarters revealed that they were of the opinion that the standard of customer service in the UK was in decline. Put two and two together what do you get? OUTSOURCING!

sourcingfocus.com news also reported that outsourcing firms handling call volumes from Europe, the Middle East and Africa (EMEA) continue to remain competitive and profitable with successful initiatives to contain cost during the global economic downturn. According to a new Frost and Sullivan analysis, past perceptions of loss of control over customer interactions are diminishing as providers in this market deploy successful implementations, offer advanced services and publish customer success stories. Let’s hear it again – OUTSOURCE!

I will now stop preaching from the outsourcing bible and focus on some of the contracts signed and reported on sourcingfocus.com this week.

Telstra, Australia’s largest telecommunications provider has signed one of two contracts expanding applications services with EDS, an HP company. The five-year, US$140 million deal is one of the largest application management engagements signed this year in Australia.

Also, CSC was successful in winning £31m worth of contracts from the UK Atomic Energy Authority and Civil Nuclear Police Authority. CSC, the IT services provider, has secured information technology outsourcing contracts with five UK Atomic Energy Authority (UKAEA) companies and the Civil Nuclear Police Authority (CNPA). The six contracts, which each have a five-year term, have a total estimated value of £31 million.

Please do click through to the sourcingfocus.com website to see what else has been happening in the world of outsourcing. I hope you enjoy the rest of your Friday and that you have positive experiences with what ever call centre customer service operator you are bound to converse with at one time or other.