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Welcome to Inside Outsourcing: The Outsourcing Week in Review
THE WEEK IN REVIEW
Another week, another look Inside Outsourcing for you readers! Brace yourselves, as we’ve got another jampacked edition this week. Let’s start it off with predictions, shall we?
The global Recruitment Process Outsourcing (RPO) market size is expected to reach US$21.69 billion by 2027 at a compound annual growth rate (CAGR) of 17%. According to market research firm Valuates Reports, two primary factors driving the market growth are the need for an effective recruiting process and reducing overhead costs. RPO is becoming more popular as companies emphasize talent acquisition and workforce planning to meet the issues of maintaining human resources. Meanwhile, more companies want a single solution to handle their HR needs. In October, we reported on Teleperformance acquiring RPO firm PSG Global Solutions, for US$300 million to further strengthen their strong added-value Specialized Services activities.
The United States International Trade Commission (USITC) is keen on exploring business collaborations with Fiji’s Business Process Outsourcing (BPO) sector. Fiji’s outsourcing industry comprises mostly of businesses from Australia and New Zealand. However, Outsource Fiji Executive Director Sagufta Janif said they would also like to engage with clients in the United States. Members of the USITC met with Outsource Fiji as part of their study on investment and trade between the U.S. and the Pacific.
Meanwhile, Sri Lanka’s IT and Business Process Management (BPM) industries saw a 22% increase in their workforce in 2022. According to a report by the national chamber SLASSCOM, there was a “favorable view” of the local job market last year, with the possibility of more expansions from the private sector. Female representation also increased to 35% in IT and 46% in BPM. For 2023, the Sri Lankan tech industry plans to recruit 25% more employees to cope with the sector’s “sustained expansion and need for competent personnel.”
In Jamaica, several BPOs plan to reduce their remote workers from 50% to 30% in compliance with an upcoming government mandate. Under the new policy, the Jamaican Government set a permanent staff ratio for the outsourcing industry — 70% on-site and 30% remote — by the end of 2023 in light of productivity concerns. Global Services Association of Jamaica (GSAJ) President Anand Biradar agreed that on-site work might be favorable when training new employees. As many of the major economies threaten recessions, businesses might be cutting back on their promotional and printing expenses. One of the businesses feeling the pinch is business printing company Vista Print. The company has recently laid off 100 staff from its Jamaican-based shared services entity. According to a former employee, members from the human resources department, design modification team, employee engagement, call center agents, and customer advocacy were part of the cut. A spokesperson said that while the layoff was not easy, ensuring the company could deliver on its financial commitments was necessary amid the changing macroeconomic backdrop.
Some big M&A deals were announced last week, and a fair bit of general activity! Let’s have a look.
Customer experience (CX) service provider Concentrix will merge its operations with outsourcing and consultancy firm Webhelp in a deal valued at US$4.8 billion. The transaction, slated to close at the end of the year, aims to expand Concentrix’s global footprint. Concentrix President and CEO Chris Caldwell added that the combined strengths of both firms will “redefine the industry and design, build and run the future of CX.”
Similarly, IT giant Accenture is having a big week! First, the firm agreed to acquire Flutura, an industrial artificial intelligence (AI) company. Flutura’s AI platform offers solutions for engineering teams to assess, predict, and improve the asset performance and energy efficiency outcomes of production and manufacturing facilities. Senthil Ramani, Senior Managing Director and Accenture Applied Intelligence Lead for Growth Markets, said this acquisition would power industrial AI-led transformation for the firm’s global clients, particularly in Australia, Southeast Asia, Japan, Africa, India, Latin America, and the Middle East. At the same time, Accenture will be working with telecommunications company TELUS to boost the latter’s television (TV) and digital life businesses. TELUS has recently launched a new TV and OTT content platform in collaboration with Accenture. This innovative platform is being rolled out in phases and is designed to be accessible on any device at anytime.
Aircraft manufacturer Airbus is dropping out of its plan to invest in Evidian, a cybersecurity firm owned by IT consulting giant Atos. In a statement, Airbus said that Evidian does not meet its objectives in the current context and under the current structure. Atos reportedly values Evidian at about €7 billion (US$7.6 billion), including a €3 billion (US$3.2 billion) debt.
Global outsourcing and consulting firm BPONE partners with cloud platform Eskor to spur digitalization throughout Latin America. Eskor’s ERP-agnostic solutions and easy-to-implement cloud platform is expected to enhance BPONE’s Knowledge Process Outsourcing (KPO) services. With BPONE’s insight into the region’s unique regulations and process expectations, both companies are now set to bring new expertise and diverse technology tools to previously untapped markets ripe for digital transformation. Concurrently, consumer finance intelligence Prodigal and cloud-based technology provider TCN announced a partnership that would leverage technology to support, not replace, agents working in collections call centers. Both firms will provide solutions to streamline call center workflows, including dialing, offering customers self-payment options, coaching agents to success, and eliminating some administrative tasks by automating agent call notes. Prodigal says these developments will allow agents to focus on customers and improve conversations and interactions.
Digital CX provider TDCX expands its Southeast Asian footprint by opening its 28th campus in Vietnam. The new facility adds to the firm’s network of delivery centers in Asia, Europe, and Latin America and complements its Thailand campus. TDCX Group CIO and EVP Byron Fernandez said that their new Vietnamese facility opens the opportunity to harness new talent pools for the firm’s clients and to play a part in providing the local workforce with interesting digital economy jobs.
Internal shakeups are happening in several companies. Tata Consultancy Services (TCS) is significantly reorganizing its senior leadership team. Harrick Mayank Vin, the current Chief Services Innovation Officer, is expected to succeed K Ananth Krishnan as (CTO) in October. Krishnan Ramanujam, president of the enterprise growth business, is considered a strong pick for the (COO) role. Current COO N Ganapathy Subramaniam, a long-time TCS leader, is retiring in May 2024.
BPO company SupportNinja launched its newly-refreshed brand following the expansion of its service offerings, steady organic growth, acquisition of Bolton Remote, and geographic expansion into Europe. In a press release, the firm said the vibrant brand refresh “captures the dynamism of its people and the evolution of SupportNinja’s offering to the marketplace.” SupportNinja Chief Marketing Officer Claire Fujas added, “Our new brand is a celebration of the passionate, dynamic people at the heart and soul of this company.”
Outsourcing solutions provider OfficePartners360 (OP360) received the Gold Stevie Award for the “Contact Center of the Year – Business Services Industries” category. The firm’s “agile and proactive approach to providing seamless customer experiences and innovative solutions” helped them win the category. OP360 said the Steview Award “is another addition to the ten awards they won in 2022 and is a testament to the company’s propensity to go beyond our client’s needs.” Similarly, remote staffing services provider 20four7VA earned several accolades in the year’s first three months. The firm was recognized at the 2023 World Staffing Summit, ranked in the Time Doctor OA500 2023, and received WOSB certification from the Small Business Administration (SBA) in Q1. Catherine vanVonno, the firm’s President and CEO, said they are delighted and deeply honored to receive these awards and certifications.
Countries from the European Union (EU) are the most ideal nations to start a business in, according to the Global Startup Index 2023. The index, created by Adventrum’s Business Name Generator (BNG), placed nine EU countries on its top 10 list, highlighting the union’s excellent startup environment. BNG analyzed 50 countries for their 2023 index, looking into the business tax rates, economic GDP (gross domestic product) growth, and the cost of startup procedures to determine the optimal location for launching a business. The study also examined each country’s happiness score, cost of living, and employees’ quality of life to determine which country helped drive productivity and growth.
So, have you started yet?
Tuesday, April 4, 2023
NEWS THIS WEEK
03 April 2023
- Jamaican BPOs to reduce remote workers – read article…
- 20four7VA scores several recognitions in Q1 2023 – read article…
- Sri Lanka’s IT/BPM workforce up 22% in 2022 – read article…
- TCN welcomes new senior UK, EU members – read article…
31 March 2023
- Vista Print lays off over 100 employees – read article…
- Airbus scraps plan to invest in Evidian – read article…
- TCN, Prodigal partner to support call center agents – read article…
- Concentrix to buy outsourcing firm Webhelp – read article…
30 March 2023
- OP360 receives Gold Stevie Award – read article…
- SupportNinja rebrands amid expansion, business evolution – read article…
- TDCX opens new campus in Vietnam – read article…
- RPO market to reach $21.69Bn by 2027 – read article…
29 March 2023
- BPONE, Esker to spur digitalization in LatAm – read article…
- EU nations top Global Startup Index – read article…
- Endeavor Miami announces cohort for ScaleUp initiative – read article…
- Accenture, TELUS team up to develop next-gen entertainment – read article…
28 March 2023
- Accenture to acquire AI firm Flutura – read article…
- TCS to undergo C-suite reshuffle — sources – read article…
- USITC shows interest in Fiji’s outsourcing industry – read article…
- Sigmar Recruitment appoints new CEO – read article…
