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Welcome to Inside Outsourcing: The Outsourcing Week in Review
THE WEEK IN REVIEW
The outsourcing industry is on a roll! An economic crisis could not stop it from growing bigger! This issue of Inside Outsourcing will tell you why.
The global IT-BPO market is expected to grow by $281.25 billion by 2026, at a compound annual growth rate (CAGR) of 8.12%. According to market research firm Technavio, the need to prioritize core competencies, efficiency, digital transformation, and software-defined infrastracture will boost the market within the forecast period. Additionally, the rise of offshore call center destinations — such as India and the Philippines — could bring favorable impact to the sector in the coming years.
India’s IT-BPO industry itself could grow by US$116.01 billion in 2026 at a CAGR of 9.19% due to the expected evolution of its tech industry. Technavio explained that the shift to an IT-as-a-service (ITaaS) model will fuel the popularity of IT outsourcing in the country, boosting it further to the global market. The total cost of operations in developing countries such as India is lower than that of developed countries such as the United States (US) and the United Kingdom (UK), prompting countries to prefer offshoring their services.
At the same time, ReasearchAndMarket.com reported that the global call center AI Market size could hit $4.1Bn by 2027 at a CAGR of 21.3%. The Asia Pacific (APAC) region is expected to lead the market thanks to the increasing penetration of advanced technologies, rising GDP of its member economies, and high density of contact center outsourcing operations in its countries. China, Japan, and India are all APAC emerging nations where call center AI solutions are being deployed at a large scale due to the presence of a lot of data centers and a high density of BPO operations.
However, APAC’s southern neighbor Fiji needs to attract more fresh graduates in its ICT sector. Commerce and Trade Minister Faiyaz Koya stated that the duty exemptions and tax holidays provided for ICT/BPO infrastructure investments opened more job opportunities for the young population that are passionate about entering the IT space. The minister promised that the government is ready to equip Fijian students who want to join the nation’s growing ICT industry.
In the corporate world, business and technology solutions provider RCM Technologies Incorporated recently acquired recruitment firm Talent Herder. Bradley Vizi, Executive Chairman of RCM Technologies said that this deal “enhances our RPO offering through complementary industry and geographic focus, propelling our efforts to the next level.” TalentHerder CEO Chris Adams, for his part, added that the transaction is a “critical step” towards becoming a leader in the RPO space.
In short, it’s a win-win deal!
IT solutions provider Cloud5 Communications is expanding its contact center services to South Africa. In a statement, the firm said that this facility will highlight the industry’s continuing rebound and will expand their offshore capabilities. Cloud5 added that they see South Africa as an ideal location for BPO due to its wide pool of English and multilingual speakers. The firm’s new SA center will augment their full range of BPO services — including guest and customer relations, as well as digital and social media support. At the same time, South Africa-born BPO company Merchants launched a new contact center in the township of Jabulani, Soweto, South Africa. Resulting from a year-long collaboration with three firms — namely, Amandla Social Enterprises, the Development Bank of Southern Africa (DBSA), and the Gauteng Department of Economic Development — the center aims to create an ecosystem where people don’t have to travel long distances to work. Merchants’ new office currently employs 96 agents — 75 on-site and 21 remote workers — with an average age between 20 and 25 years old.
Global credit intelligence company Pepper Advantage Hub will open a what it described as a major outsourcing business in Fiji to provide efficient operational capabilities to new and existing clients. In the next three to five years, the company said they are looking to recruit at least 800 to 1000 employees as they invest in IT infrastructure, software development, training and sponsorships to their new hires. Pepper Advantage CEO Fraser Gemmell said this move is bolstered by a Fiji’s strong investment market — particularly in the tech sector.
A shake-up is happening amongst India’s tech giants. Omnichannel customer experience (CX) provider Teleperformance launched a new Indian office in Mohali, Punjab to cater to its global e-commerce, technology, travel, and telecom clients. Called TP Olympiad, the new expansive campus promises a state-of-the-art infrastructure and essential amenities for its 2500 employees. Teleperformance Group CEO Daniel Julien said that they see India as the “the world’s largest talent reserve for the English-speaking world and beyond” and they plan to take advantage of this by supporting its strong dynamics.
Meanwhile, multinational IT firm Infosys welcomed back its 45,000 employees to the office. Infosys CEO Salil Parekh exclaimed that this is a huge number and is gradually increasing after pandemic restrictions in the country were eased. India’s COVID-19 trend began to decline in 2022 which allowed offices to open its doors again for ion-site workers. This, in turn, is leading to large deal wins and steady all-around Q2 growth in the nation’s business sector. However, one executive will not set foot to Infosys’ doors anymore. Ravi Kumar S, the firm’s President, rendered his immediate resignation after 20 years of tenure. On his official LinkedIn profile, Kumar wrote that he is moving on from the company to pursue a “new endeavors,” adding that he is “deeply indebted and very grateful to everyone involved in [his] journey” in the firm. Though there are no reasons provided for the sudden exit, the tech giant’s board of directors extended their “deep sense of appreciation” to Kumar and his contributions to the company.
IT services and consulting firm Tata Consultancy Services (TCS) reported an eight per cent growth in its Q2 profits, reaching US$1.3 billion. This figure topped analysts’ US$1.2 billion estimates after the tech services exporter won more deals during the period, helping it weather a slowdown in tech spending by corporations. So far, the firm has remained bullish on winning deals from clients across North America and Europe. However, TCS Chief Executive Officer Rajesh Gopinathan said that they remain cautious as the war between Russia and Ukraine and concerns of a global recession intensify.
Ozonetel, an omnichannel customer communication platform provider from India, introduced a new full-featured contact center platform on WhatsApp. Powered by Ozonetel’s CloudAgent platform, this move will address the advanced messaging needs of businesses and their customers. This means that firms can now establish complete contact center operations on WhatsApp and achieve a quintupled increase in customer engagement and taper costs by over 75%. Chaitanya Chokkareddy, Chief Product Officer, Ozonetel said that they are excited to “introduce a whole new dimension to contact center communication and management “ in the messaging platform.
Still looking for an ideal remote working location? A study by outdoor services marketplace LawnStarter listed Seattle as among the best cities for remote work in the US. LawnStarter data analyst Jason Medina said that the city’s biggest strengths are its earning potential and excellent working environment. Seattle’s uninterrupted access to 5G internet, healthy choice of ISPs and topnotch fiber coverage also helped it land a spot on the list.
What’s the best way to make fun of the old ways of working? For freelancing platform Upwork, its through resurrecting a CEO. In a campaign made by creative agency Alto, a dead CEO named Jack peformed a song that drives the idea of making up “new and better ways of working” in the modern world. Upwork Chief Marketing Officer Melissa Waters said that the campaign “ exposes the antiquated rules of work as dead and naturally meets the moment alongside the businesses and professionals redefining work as we know it.”
Just in time for Halloween!
Tuesday, October 18, 2022
NEWS THIS WEEK
17 October 2022
- Ozonetel introduces the first ever contact center platform on WhatsApp – read article…
- Talkdesk 2022 CX innovator award winners – read article…
- Mexican fintech Solvento planning cross-border services to US, Colombia, Brazil – read article…
- Seattle named best city for remote work – read article…
14 October 2022
- IT BPO market to grow by $281.25Bn by 2026 – read article…
- Global call center AI Market size to grow by $4.1Bn by 2027 – read article…
- Amid eased pandemic restrictions Infosys welcome back 45,000 employees – read article…
- DialAmerica appoints center industry expert Casey Kostecka as president – read article…
13 October 2022
- Fiji needs to bring more fresh grads to the ICT industry – read article…
- Managed services market to reach $507Bn by 2030 – read article…
- Teleperformance opens new site in India – read article…
- Ravi Kumar S steps down as Infosys President – read article…
12 October 2022
- RCM Technologies acquires TalentHerder – read article…
- Pepper Advantage Hub to launch a major outsourcing business in Fiji – read article…
- Irish BPO Sremium Group launches new website – read article…
- Cloud5 Communications announced expansion in South Africa – read article…
11 October 2022
- Upwork releases campaign mocking the old ways of working – read article…
- BPO firm Merchants expands to Soweto, SA – read article…
- India’s IT, BPO services market to grow by $116.01Bn – read article…
- TCS Q2 profit up 8% to $1.3Bn – read article…
