call center outsourcing

Outsourcing Companies Step-Up Acquisitions

The outsourcing industry has been defined just as much by acquisitions, as much as it has been defined by mega deals: think Xerox (NYSE:XRX) and Affiliated Computer Services. This November, several companies have announced acquisitions of other firms in a bid to redefine their services, and expand their business, and perhaps to give rise to the next Xerox-ACS caliber acquisition, within different industries including legal process outsourcing, IT outsourcing and call center outsourcing.

New York headquartered company, Accenture (NYSE:ACN), has acquired business process management services provider, Knowledge Rules.  The company announced on the 2nd of November that it has acquired the Philadelphia-based company to utilize Knowledge Rules’ expertise in PegaSystems.  According to Accenture’s Chief Technology Architect Paul Daugherty, “This acquisition immediately increases our capacity to implement Pegasystems-based solutions, and will enable us to train and develop more people, more quickly.”  A few days later on the 10th of November, Accenture announced that it has successfully acquired Beijing-based software company, Mogenesis, a provider of mobile software outsourcing services.  Following this, on the 19th of November, Accenture also completed its acquisition of Ariba, Inc.’s (NASDAQ:ARBA) Ariba Sourcing Services, an acquisition that had previously been announced on the 6th of October.  Hot on the wheels of these developments and Accenture once again advised that they are acquiring another company, CAS Computer Anwendungs-und Sytemberatung AG (CAS).  A Kaiserslautern, Germany based company, CAS is a provider of customer relationship management (CRM) and mobility software provider.

It has certainly been a busy month for Accenture as it has been acquiring companies left and right, but other companies have been making notable acquisitions as well.

Financial news and information provider Thomson Reuters (NYSE:TRI) announced on the 18th of November that it is acquiring legal process outsourcing services provider, Pangea3 .  Commenting on the acquisition, Peter Warwick, Thomson Reuters President and CEO said that, “[Thomson Reuters] will now bring to the legal marketplace a responsive, high-quality, transformative resource for a broad range of legal support work. This is particularly important as law firms and general counsel adjust to the realities of the ‘new normal,’ where efficiency, quality and responsiveness are paramount,” signaling Thomson Reuters entrée into the highly-competitive legal process outsourcing business.

This is not however, the only movement in the LPO space as days before the announcement by Thomson Reuters, the acquisition news that had been making rounds in the LPO space was the acquisition of legal process outsourcing company, LawScribe by UnitedLex on the 11th of November.

A number of acquisitions from smaller companies also came through this month, including the acquisition of IT outsourcing and business process outsourcing provider TechTeam Global (NASDAQ:TEAM) by Stefanini International Holdings Affiliate, Stefanini IT Solutions for $93.4 million.  The news came days before TechTeam Global reported its third quarter 2010 results wherein the company reported a net loss of $8.4 million following the company’s sale of its government subsidiary, TechTeam Government Solutions, to Jacobs Engineering Group (NYSE:JEC).

We will likely see more acquisitions coming through before the year ends.  Other companies such as Infosys (NASDAQ:INFY) and Globallogic, have already announced that they are in the market for acquisitions this year and the next, as companies continue to search for the winning combination that may ultimately land them at the top of their field.

Author: Audrey B.

9 months ago No Comments Views

7 Biggest Successes of Philippines BPO in 2014

The year 2014 will come to an end in a few weeks and we can’t help but look back at how the Philippine business process outsourcing industry has fared throughout the year. Let’s take the time to review its biggest successes in 2014.

1. Ideal Investment Destination

A Singaporean government agency called the International Enterprise Singapore (IES) revealed that the Philippines is an ideal investment hub for businesses because of the country’s strong economic growth potential. The BPO industry in the Philippines is one of the top growing segments in the country, which attributed to the increase in the demand for office and commercial infrastructure. The IES also stated that the country’s talented workforce is also another big contributing factor.

2. Increase of Call Center Business

A statement released by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) stated that India is losing 70% of its call center outsourcing business services to the Philippines and Eastern Europe. This could lead them to lose up to $30 billion in foreign exchange revenue if the trend continues. The Philippines’ quality manpower, lower operating costs, and high-quality services are the top three reasons seen to have contributed to this.

3. Cost-Effective Hub

Cushman & Wakefield published a research paper entitled “Should MNCs Stop Paying Rent Overseas?” It forecasted that the Philippines may soon join China and India in the ranks of viable hosts for MNCs overseas operations. Presently, China and India remain at the top for overseas operations. However, there is expected to be a shift towards other markets because of the increase in rental rates in these countries’ central business districts.

4. Improved Rankings

Despite a controversial video released by BPO company, Aegis Malaysia, promoting Malaysia as a better outsourcing destination that the Philippines, a survey conducted by A.T. Kearney revealed that the latter has actually improved its ranking against 50 other countries. The 2014 A.T. Kearney Global Services Location Index stated that the Philippines ranked seventh among 51 countries, which is two spots above its 2011 ranking, where it ranked 9th out of 50. It further indicated that despite falling in the financial attractiveness factor, the country improved significantly in people’s skills and availability.

5. Improved Global Competitiveness

The Global Competitiveness Report by the World Economic Forum (WEF) ranks the economies of 144 countries. It stated that the Philippines’ Global Competitive Index jumped 33 places this year and is now in 52nd place. The country’s ranking has had a steady upward climb since 2010 but this year’s improvement is the highest in the region since that year.

6. Significant Increase in Employment

The BPO Philippines industry has helped provide better-paying jobs since it started in the early 1990s and it looks like it will continue to do so in the coming years. It has been credited for providing jobs to one million Filipinos is targeting to provide jobs to 1.3 Million Filipinos by 2016.

7. Expected Increase in Revenues

During the International IT-BPM Summit held in Manila, Vikrant Khanna of Tholons stated that the country’s information technology-business process management industry will soon become the Philippines’ biggest earner. Its revenues are projected to hit $48 Billion by 2020, which will account for 19% of the $250-Billion global outsourcing industry.

All these achievements by the Philippine BPO industry this year goes to show that the country is indeed growing by leaps and bounds and that it is truly a prime location for outsourcing. It is exciting to see how much of the industry predictions will be realized in the coming years.

9 months ago No Comments Views

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