Indian IT company plans big in Michigan

US based outsourcing firm Integreon, which has a presence in India, is on the lookout for acquisitions here. Investment banking sources said the company is in talks with domestic knowledge process outsourcing KPO and business process outsourcing BPO firms and at least two small buyouts for a total of USD50 million are likely to be sealed during the current calendar year.

Further, the company plans to double its India headcount from the current 1,500 in the next three years.

On the cards is another outsourcing centre in Mumbais Goregaon area with a capacity of 1,000 seats.

It currently has three centres in the country two in Mumbai and one in Gurgaon.

Liam Brown, president and CEO of Integreon in the US, said, We want to grow our business in India due to the tremendous growth potential. We are actively in talks with a few firms for inorganic growth, too, and will be able to provide details once things are finalised.

Integreons keenness to grow in India is understandable given that the country accounts for almost 60 percent of its sales.

Analysts said Integreon has to grow inorganically to consolidate its expertise in the areas of KPO and legal process outsourcing LPO, and tap the sectors and customers to a greater extent. India is a preferred destination for LPO because of the huge difference in the wage rates here and those prevalent in the US and the UK.

Earlier, in July 2005, Integreon had acquired Brahmy Solutions, a UKbased, highend analytics company. It also acquired a part of the LPO business of New Yorkbased BPO major Bowne, which provides financial publishing that year. In April 2003, Integreon acquired Contentscape, a company specialising in web content design and development.

Source : offshoringtimes.com

Outsourcing -- Not Just a Way to Cut Costs Anymore

Companies are increasingly considering outsourcing for quality and expertise. Here's a look at other outsourcing trends and tips for dealing with the changing environment.

When American companies began turning to India, Uganda, China, Poland and elsewhere to staff call centers, handle paperwork, write software and manufacture products, there was one goal – to save money. But outsourcing firms have grown so good at the diverse services they offer that American companies are turning to them even if little money is being saved -- and sometimes even if they cost a little extra.

"Customer organizations realized that the service providers really were experts in their chosen fields and that outsourcing offered a range of additional benefits such as access to new skill sets, best-of-breed services, greater innovation and transformation, and better speed-to-market for new products and services," the law firm of Morrison & Foerster writes in a report on outsourcing trends for 2008.

The firm warns American companies that the falling dollar could make outsourcing even more costly, but to not act precipitously. Providers that rely heavily on U.S. clients and those with contracts that put much of the currency risk on them may push for price increases, even if they hold long-term contracts. Clients should think twice before turning them down. "Some of the more mature customers may realize that it is in their best interests to ensure that their provider is not in a loss-making situation," the report says. "…However, such price increases will come at a cost, and providers will be pushed even harder to innovate and provide more added value."

Morrison & Foerster says contract disputes and misunderstandings are still common, despite the fact that agreements are much more carefully worked out than they were in the early years of the outsourcing explosion. The report says customers themselves are often to blame. "It is clear that many of the contract management mechanisms in place … either are not being used or are being implemented poorly." It urges companies to recognize that outsourcing firms need the same type of supervision and oversight as their own operations. More time and staff should be dedicated to making sure quality, service and contractual terms are being met. Or, of course, that function can be outsourced.

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Local IT services set to break $4bn as outsourcing grows

Johannesburg - The local information technology (IT) services market is expected to exceed $4 billion (R31 billion) this year, representing a year-on-year increase of more than 11 percent, according to the latest report by research firm IDC.

The growth is fuelled by economic expansion, the adoption of open-source software, government projects such as the e-government that is meant to provide technology access to rural areas, technology upgrade cycles, preparations for the 2010 soccer World Cup, deregulation, and growth in the small and medium business market.

Many firms are outsourcing non-core operations such as IT to companies such as Business Connexion, GijimaAst and IBM to save money and focus on the core business.

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Software Outsourcing market transforming

New research has revealed that the outsourcing service market is experiencing significant change.

A report by IDC on behalf of I.NET, part of BT Italia, found that IT sectors are becoming "increasingly interdependent" as organisations look to meet the requirements of the market.

The study claimed that data and system security continues to be one of the key challenges facing enterprises, prompting many to seek solutions that provide "greater visibility, transparency and integration".

"They also need partners that understand what drives and what hinders ICT projects to truly respond and adapt to companies' business and IT needs," it noted.

According to the research, the "convergence" of security, storage and system management is likely to create a number of new opportunities within the ICT industry.

In related news, Gartner recently reported that 41 per cent of businesses are outsourcing IT in order to improve performance.

Source : onestopclick.com