The Outsourcing Week in Review: Tuesday, February 21, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

2023 is getting busy! M&A activity is heating up, and companies are reporting their Q4 results. It’s all go, go, go in the world of outsourcing! Stick with us, we have your offshoring news covered!   

Flexibility, advanced technology, and upskilling opportunities are the key revenue drivers in the future of work. According to an Infosys report, 41% of companies are ready to increase their remote hires, while 30% will focus on digital workplace automation investments. The report also predicted that digital automation tools could drive US$808 billion in revenue gains in the following years. Infosys EVP and Head of Digital Experience & Microsoft Business Rajesh Varrier said their findings showcase how businesses can drive growth, productivity, and profitability through the automation of digital tools and create more inclusive workplaces.

The United States (U.S.) and India earned top marks in the latest Tholons Global Business Innovation Sustainability Index (TBIS). India scored 10 out of 10 in the super cities category and above nine points in the business environment and quality of life. The U.S., meanwhile, topped the innovation tier. Other contenders like Ireland led the business category, New Zealand in DEI, Estonia in quality of life, and Iceland in sustainability. Tholons called the top 10 countries “Avant Garde” nations for leading the digital transformation of industries and services globally.

In other news, several M&A deals were inked last week as companies strive to improve their services.

Global professional services company Accenture acquired Brazil-based cybersecurity firm Morphus as part of the launch of a Cyber Industry practice in Latin America. According to Accenture Security Global Head Paolo Dal Cin, this addition expands its global research workforce and network of talented, innovative security professionals. This will extend Accenture’s footprint and capabilities in Brazil and Latin America. The Morphus deal comes just days after Accenture sealed another M&A with biopharma consulting firm Bionest. Proving its capacity as a global leader, Accenture ranked number 1 in the Time Doctor OA500, an index of the world’s top 500 outsourcing firms.

Australia-based remote staffing platform Cloudstaff acquired offshoring consulting firm optiBPO. According to Cloudstaff Chief Commercial Officer Jason Foster, they are on the hunt for further acquisitions of this type and are in active discussions with several companies that will help expand their global footprint quickly. Cloudstaff forecasts a 55% revenue growth as it embarks on an acquisition spree and a 70% employee expansion by the end of 2023. Similarly, customer service provider Vervent bought out shares in the Philippine-based outsourcing firm Smiles on Demand to expand its contact center offerings. Vervent President Stephanie Jimenez said that this move would allow them to maximize the firm’s deep customer service expertise while enhancing support for its clients. Despite the pandemic, the firm sustained the growth of its core servicing business and expanded its credit card business via acquisitions and new programs for underserved customers.

Venture capitalists also joined the acquisition spree. Investment group Woolf Partners acquired Ireland-based tech company Akari Solutions Group to build the latter’s innovative technical talent and ideas. A new office will be opened for Akari in London to enable a closer working relationship with tech giant Microsoft while its Glasgow site will remain under a hybrid work setup. Former QUANTIQ COO Andrea Bright will become the tech firm’s new CEO. Akari’s founder Margaret Totten will stay on the company’s board, where she will concentrate on her core communications strengths and creative passion in leading marketing.

IT service management company Hinduja Global Solutions (HGS) reported a strong consolidated income of ₹1164.64 Cr (US$140 million) in Q3 FY2022, up 8.3% from the previous year. According to HGS Executive Director and Group CEO Partha DeSarkar, the firm continues “to sustain its momentum, led by growth in most of its geographies, expansion in existing client accounts, and traction in its digital solutions business.” DeSarkar is also expecting HGS’ TekLink acquisition to expand the company’s digital and analytics capabilities. Business Process Outsourcing (BPO) solutions provider ibex Limited’s revenue also grew by 5.5% to $139.4 million for the quarter ending December 31, 2022. In a press release, the firm revealed that revenue generated from their ​​BPO 2.0 clients — startups, scale-ups, and blue-chip — grew 16.9% year-on-year (YoY) and represented 77.3% of total revenue in the second quarter. ibex CEO Bob Dechant said their strong quarter makes him “very excited about the trajectory of [the] business” in the coming months.

Atento, one of the world’s largest BPO service providers, raised $40 million in funding to help with additional operating liquidity and financial flexibility in the coming months. With the help of its existing investors, the firm aims to pay its coupon payment obligations under its senior secured notes due 2026 and all associated hedge payments. Atento employs approximately 135,000 people across 16 countries and has over 400 blue-chip clients in various industries.

European private equity firm Argos Wityu agreed to become a majority shareholder of Swiss outsourcing service provider Norline AG. The deal aims to accelerate Norline’s geographic footprint, broaden its customer base, expand its service offering, and further develop its internal start-up for 3D fabrication models. Norline Founder Hanspeter Ackli said that Argos would help them continue investing in sustainable innovations and provide customers with excellent service. At the same time, aircraft manufacturer Airbus would like to become a major investor in cybersecurity firm Atos’ identity and access management software Evidian. Airbus CEO Guillaume Faury said airspace is increasingly driven by big data, connectivity, and high-power computing, “so there is a lot of complementarity and synergy with what Evidian is doing.” Reuters reported that if the investment materializes, Airbus will become the key industrial partner of Evidian and give it a say over the new entity.

Managed services provider iQor is actively hiring 500 bilingual contact center employees in Medellín, Colombia. Sonia Goyal, iQor Vice President of Global Talent Acquisition, said they are committed to providing “fantastic career opportunities… creating excellent experiences and human connections.” Individuals who would pass the recruitment process could expect career growth and development, flexible hybrid work environments with work-in-office and work-at-home opportunities, fantastic benefits, and an irresistible culture. US-based BPO Helpware also opened 100 customer service roles in its new Uganda office. The company is looking for employees knowledgeable in English, French, and Swahili to provide customer care across phone, email, and chat channels. Robert Nash, Helpware’s CEO, said they are excited to bring this next growth phase to Uganda and create a people-first culture in their new location.

Recruiters, take note of this next news. Job seekers in New Zealand said that salary is “the most important” condition they are looking for in their future jobs. According to a survey by NBBU (Dutch Association of Intermediary and Temporary Employment Agencies), 73% of 250 job vacancies analyzed mentioned salary in negotiations between recruiters and job applicants. Contract duration was also specified in 41% of the vacancies, followed by training, available leaves, and work atmosphere. NBBU Communications Advisor Anchrit Edelaar said that flexible work companies with job vacancies could use these insights to attract more applicants to their firms.

A survey conducted by Singaporean research firm She Loves Data (SLD) revealed that 87% of women in Southeast Asia are keen on taking upskilling courses to advance their careers. The survey, which was done in collaboration with an online survey and market research firm Millieu Insight, showed that 44% of employees in Southeast Asia intend to make a career switch within the next five years. Entrepreneurship motivations were strongest among women aged 35 years and above in Thailand (48%) and the Philippines (43%), where almost half sought upskilling to set up their businesses.

Are you ready to learn new skills?

Tuesday, February 21, 2023

NEWS THIS WEEK

20 February 2023

• iQor to hire 500 bilingual employees in Colombia – read article…
• 87% of Southeast Asian women interested in upskilling  – read article…
• Airbus keen on being Evidian’s key investor – read article…
• Celonis, Tech Mahindra’s new partnership to strengthen CX – read article…

17 February 2023

• Woolf Partners completes acquisition of Akari Solutions –  read article… 
• Argos Wityu gets majority share in Swiss outsourcing firm –  read article…
• Cloudstaff acquires optiBPO to boost global growth strategy  –  read article…
• Helpware expands to Uganda with over 100 job vacancies – read article…

16 February 2023

• ibex’s revenue jumps 5.5% in December quarter –  read article… 
• Intellinetics digitizes U.S. city’s vital historical records –  read article…
• Atento raises $40 million in new financing  –  read article…
• Accenture acquires Morphus  – read article…

15 February 2023

• India, U.S. top latest Tholons index  – read article…
• Flexibility, technology, upskilling are key drivers in the future of work – Infosys – read article…
• WNS leads Insurance BPO services in U.S., Europe, Australia  – read article…
• Dutch job seekers cite salary as their ‘most important’ employment condition  – read article…

14 February 2023

• Eclaro wins big at ClearlyRated’s Best of Staffing Awards  – read article…
• HGS posts 8.3% growth in total income for December quarter  – read article…
• Infinite Outsourcing Solutions partners with Rapyuta Robotics to optimize automation – read article…
• Vervent acquires Smiles on Demand – read article…

Read more Inside Outsourcing Newsletters here:

1. The Outsourcing Week in Review: February 16, 2023
2. The Outsourcing Week in Review: February 23, 2023