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Welcome to Inside Outsourcing: The Outsourcing Week in Review
THE WEEK IN REVIEW
If you want to know about outsourcing – we have got you covered! This week we cover seven countries, 30 companies – and a whole lot of BPO goodness. Brace yourself!
The rapid changes in finance and accounting verticals are pushing companies to outsource more of their services. According to technology research and advisory firm ISG, more enterprises are turning to finance and accounting outsourcing as their Chief Financial Officers (CFOs) take on more strategic business roles. Other companies also rely on third-party firms to assist them in their cloud and ESG (environmental, social, and governance) transformations. ISG Global Business Services Partner Scott Furlong added that the “ubiquitous adoption” of emerging technologies — such as blockchain, internet of things (IoT), intelligent automation, and advanced analytics —- is blurring the lines between front, middle and back office operations.
Romania’s business services workforce increased by nearly 30% over the last three years. An annual report released by the Association of Business Service Leaders (ABSL) revealed that the IT, customer support, finances, and accounting sectors saw the highest increases in employees from 2019. More than half of the companies in the country, meanwhile, are expecting their workforce to grow between 10 and 30% by year-end. Meanwhile, the Sri Lanka Association for Software Services Companies (SLASSCOM) is pushing to cross US$5 billion in export revenue by 2025. However, the industry is facing a skills shortage due to the limited number of IT graduates emerging out of the local education system. To solve this, SLASSCOM Chairman Ashique Ali said that they are looking to hone the IT-BPM skills of their young population to pursue this goal and bolster the nation at the forefront of the BPO sector.
An increased focus on outsourcing services and career opportunities could help boost India into the third-largest economy in the world. Ridham Desai, Chief Equity Strategist for India at financial services firm Morgan Stanley, said that the country’s outsourcing workforce could grow two-fold, reaching more than 11 million employees. Global spending on outsourcing could also swell from $180 billion per year to around $500 billion by 2030. India is also poised to become the “factory to the world” as corporate tax cuts, investment incentives, and infrastructure spending help drive investments in outsourcing to the country. Chief India Economist Upasana Chachra added that multinationals are now “buoyant” on investment prospects in India as the government is also investing in infrastructure and factories.
However, the Monster Employment Index (MEI) recorded a six per cent drop in India’s overall hiring activity. Monster.com CEO Sekhar Garisa attributed this downtrend to the changing patterns in the startup ecosystem, funding winter, and fears of an upcoming recession. Garisa added that the unstable economy pushed companies to adopt a “watchful approach” to their hiring activities. Out of all sectors, MEI revealed that the highest recorded slowdown is from the local IT space — the lowest rate in three years — with 50% year-on-year. According to a report by the financial daily newspaper Mint, IT services firms are halting their recruitment efforts following a “whirlwind expansion” during the pandemic due to fears of an impending recession and declining profitability. In fact, five of the country’s largest tech services firms — including Wipro and Tech Mahindra — reported a sequential decline in sales and support staff in Q3 as they laid off non-revenue-generating people and took a break from recruiting new workers. This is the first sequential decline in headcount at any large IT firm in India since Q2 2020.
The number of female employees in India’s Information Technology/Business Process Outsourcing (IT/BPO) and financial services sector also fell during the fourth quarter of FY2022, according to the Ministry of Labour & Employment. In its latest Quarterly Employment Survey (QES), the Ministry reported that the female workforce within the IT/BPO industry fell from 38.7% to 35.8% quarter-on-quarter. Similarly, the financial services sector dropped from the previous 42.23% to 41.02%. However, the ministry stated that this figure could also imply a lesser coverage in the survey in these sectors compared to the allocated sample units for other industries.
On the other hand, Uganda is stepping up its promotional efforts for its local IT industry to attract international investors and foreign tech talents to the country. During his presentation at the Uruguay Business Summit, President Luis Lacalle Pou stated that even though national talent cannot be replaced, there are things that the country could not achieve without help from the foreign workforce. Lacalle Pou is reportedly working with the Uruguayan Chamber of Information Technologies (CUTI) and the Assistant Secretary of the Presidency to deal with the “shortage of manpower” in the country. The president’s statement is part of a long-term government initiative to make Uruguay a “Latin American hub” for the tech industry.
In other news, digital customer experience innovator TELUS International announced a definitive agreement to acquire the digital product provider WillowTree for a total enterprise value of US$1.225 billion. TELUS CEO Darren Entwistle said that the acquisition would bring key “tech talent and diversity” to its existing portfolio and further augments its digital consulting and innovative client-centric software development capabilities. The acquisition is anticipated to close in January 2023 and is subject to customary closing conditions and regulatory approvals. Meanwhile, multinational e-commerce company Alibaba launched its outsourcing platform Daraz Flex. According to a report by tech news outlet Tech Planet, Daraz Flex will allow enrolled users to earn money by completing various gig works that are listed on the platform. Daraz Flex is set to cater to users in the Southeast Asian region.
Intelligence platform Observe.AI is collaborating with communications platform Zoom Video Communications to introduce the “next-era of AI-powered growth for omnichannel contact centers” In this new deal, Zoom Contact Center customers can now leverage Observe.AI’s conversation intelligence capabilities to extract rich insights that boost agent performance to improve CX, revenue, and retention. Observe.AI CEP and Co-Founder Swapnil Jain said that this partnership “will elevate contact centers running on Zoom to new heights of performance and productivity.
The third quarter revenue of Recruitment Process Outsourcing (RPO) provider Hudson Global rose by 15.9% to $48.7 million, with its American segment posting the fastest growth. The firm reported that its revenue grew organically in America largely due to the acquisition of Chicago-based recruiting firm Karani in Q4 2021. Hudson CEO Jeff Eberwein said that their “activity at most existing clients remains robust” despite the recorded slowdown in project RPO and tech hiring.
Cloud-based call center platform TCN announced the addition of agent scorecards to its Voice Analytics features to drive agent performance and efficiency. The firm explained that this new feature serves as an evaluation system built to measure contact center performance and provide feedback about call center agents. It also includes data on how they are performing, how customers are responding, and how agents are following or deviating from the company’s standard processes. TCN Co-Funder and Chief Technology Officer Jesse Bird added that the scorecard could help create “consistency in the assessments and keeps the entire team more aligned on expectations and how to continue improving.”
BPO provider ibex Nicaragua was named among the Best Places To Work for Women in Central America and the Caribbean for the second year in a row. This recognition, awarded by the employee experience platform Great Place to Work, underscores the firm’s global commitment to give greater work opportunities for women through its Women of ibex initiative. ibex VP of Employee Experience Bridget Hart said that this recognition is “another validation of the amazing team and winning culture” that they have within the organization.
The majority, or 55%, of Singapore’s Gen Z workers are planning on quiet quitting their jobs due to salary dissatisfaction and burnout. In a survey by the employment website Indeed Singapore, 45% of Singaporean workers are looking to quiet quit due to their salaries, while 44% said that they feel overwhelmed with their work. Other reasons include dissatisfaction with career progression and lack of employer support. Indeed India and Southeast Asia Marketing Director Nishita Lalvani said that this latest survey identifies Singaporeans “want to limit the pressure from work in their lives.”
Twitter employees have been told to brace themselves for “difficult times ahead” if they can’t find new ways to create revenue. According to an email sent by the social media platform’s new “Chief Twit,” Elon Musk, a dire economic climate could happen to businesses that rely almost entirely on advertising to make money. A number of well-known brands have already paused their Twitter advertisements as they wait to see how Musk’s leadership could affect the tenor of the platform.
Innovation is the product of necessity!
Tuesday, November 15, 2022
NEWS THIS WEEK
14 November 2022
- Observe.AI joins forces with Zoom for a new project – read article…
- Female workforce in India’s IT/BPO, financial sectors dropped to 35.8% in Q4 – read article…
- ibex Nicaragua among Best Places To Work for Women 2022 list – read article…
- TCN adds agent scorecards to its Voice Analytics features – read article…
11 November 2022
- Hudson Global Q3 revenue up 15.9% – read article…
- iCXeed hires Rain Abueg as Chief Culture Officer – read article…
- Outsourcing to push India into world’s 3rd largest economy — Morgan Stanley – read article…
- Twitter employees could face difficult times ahead, says Elon Musk – read article…
10 November 2022
- TELUS International acquires WillowTree – read article…
- KellyOCG names new EMEA VP for MSP – read article…
- Simplr launches new customer service suite – read article…
- Sri Lanka aims to earn $5Bn IT/BPM exports by 2025 – read article…
09 November 2022
- BainBow targets 200% revenue growth in 2023 – read article…
- Monster.com reports 6% drop in India’s hiring activity – read article…
- Uganda seeks tech talents abroad – read article…
- 55% of Singapore’s Gen Z are planning on quiet quitting — Indeed study – read article…
08 November 2022
- Romania’s business services employees up 30% – read article…
- Indian IT firms implement hiring freeze – read article…
- More firms are seeking F&A outsourcing providers due, says ISG – read article…
- E-commerce giant Alibaba launches outsourcing platform Daraz Flex – read article…
