The Outsourcing Week in Review (International): July 3, 2023

Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

The spotlight on BPO is brighter than ever as countries and businesses turn to the sector to boost their growth and development. So, buckle up as we hit the fast lane with this week’s Inside Outsourcing: International edition. Ready, set, BPO!

Starting in Asia, two Japanese firms are eyeing significant investments in the Philippine contact center industry. According to Contact Center Association of the Philippines (CCAP) President Mickey Ocampo, one company wants to expand its business into Business Process Outsourcing (BPO), while the other might partner with or acquire other entities within the sector. These investments are driven by the country’s thriving contact center sector, as it generated around $27 billion in revenue last year, accounting for 84% of the total revenue of the local IT-BPM market.

Over to the Pacific, Fiji‘s Deputy Prime Minister, Manoa Kamikamica, echoed a similar enthusiasm for the BPO industry as a mechanism to retain local talent. The Fiji government plans to attract more BPO investments by providing generous tax incentives and addressing telecommunications and office infrastructure issues. Investment Fiji Chairperson Jenny Seeto supported these sentiments, highlighting the need for increased marketing to attract potential investors. The Ugandan government also unveiled its plans to bolster its BPO sector to create more jobs for its citizens. Finance State Minister Evelyn Anite expressed confidence in Uganda’s large English-speaking population to attract and thrive in the BPO industry, comparing favorably with counterparts in Asia and Eastern Europe. This development follows a stakeholder consultative workshop on the National BPO Policy held five months ago by the Ministry of ICT and the BPO and Innovation Council.

Sri Lanka, meanwhile, showcased its growing IT-BPM workforce during its “Island of Ingenuity” forum in London. The event highlighted the role of the sector in Sri Lanka’s economic recovery, the country’s ability to capitalize on key industry trends, and its position as a global BPO supplier. High Commissioner Saroja Sirisena attributed their competitiveness to the government’s free education programs in English and IT. With a BPO workforce of over 80,000 and total sector revenue of $1.2 billion in exports, Sri Lanka continues to build successful BPO partnerships.

Meanwhile, corporate shifts towards BPO continue unabated. Ford Australia plans to outsource most of its vehicle development and design departments to India in a significant restructuring move. This decision follows the broader trend of companies leveraging the cost and expertise advantages of outsourcing. Similarly, MBaer Bank in Switzerland will outsource its IT and back-office operations to telecom provider Swisscom as part of its digital transformation strategy. The transition to Swisscom‘s managed banking platform, operating on the Finnova core banking system, will happen around March next year, replacing MBaer’s five-year-old IT platform. Swisscom will handle MBaer’s IT infrastructure, maintenance, enhancements, and transaction processing, increasing operational efficiency and streamlining the bank’s operations.

In other news, the global contact center market could grow by US$161.73 billion from 2022 to 2027, reflecting a CAGR of 9.33%, driven by the increased adoption of cloud-based contact centers. According to market research firm Technavio, the voice-based segment will contribute significantly due to its continued dominance and the development of advanced solutions for handling high volumes of voice calls. Geographically, North America would account for 34% of the global growth, attributed to the robust adoption of contact center analytics. In India, the metro cities of Mumbai, Bengaluru, and Chennai saw a surge in call center job opportunities. According to the global job site Indeed, this increase is largely driven by companies’ need for larger customer support teams to manage online order inquiries. The firm added that the growth underscores an increased focus on customer service in India’s changing job market dynamics.

However, the landscape is not without its complexities. Tech giant Infosys is under investigation over allegations of “tainted contracts” linked to former Australian Coalition MP Stuart Robert. Infosys reportedly paid AU$16 million (US$10.6 million) to Synergy 360, a lobbying firm supposedly connected to Robert, to secure government contracts. Robert denies the allegations, while Infosys said they had already ended their association with Synergy 360. Similarly, Tata Consultancy Services (TCS) is under scrutiny after a whistleblower accused TCS senior executives of taking bribes for job placements from staffing firms. While TCS rejects the media description of the incident as a “recruitment scam,” it has confirmed that no fraud was committed by or against the company, and no key managerial personnel was involved. The company also stated that they are committed to investigating and rectifying any violations of its code of conduct.

BPO firms, beware! Cybersecurity firm Palo Alto Networks’ Unit 42 revealed that a cybercrime group named Muddled Libra is targeting the outsourcing industry to steal private data. The group’s strategy includes using the 0ktapus phishing kit for initial access, abusing multi-factor authentication (MFA) notification fatigue to steal credentials, tampering with endpoint security for defense evasion, and collecting employee information for smishing attacks. Researchers warned that the group’s sophisticated understanding of enterprise IT makes it a serious threat to organizations, even those with robust cyber defenses.

Be on alert because it may be gone in a flash!

The outsourcing news this week​..

29 June 2023

• Fiji’s BPO boom to curb talent migration – read article…
• Sri Lanka spotlights IT/BPM industry at London Event – read article…
• Uganda expects BPO to boost job creation – read article…
• Japanese firms eye BPO expansion in PH – read article…

28 June 2023

• Outsource Fiji opens new headquarters – read article…
• Invoca expands AI product with key integrations – read article…
• Surge in call center jobs seen in Indian metro cities – read article…
• EXL earns top spot in Gartner’s finance outsourcing report – read article…

27 June 2023

• Cybercrime group ‘Muddled Libra’ threatens BPO industry – read article…
• Infosys probed over ‘tainted contracts’ allegations – read article…
• TCS denies recruitment bribery allegations – read article…

26 June 2023

• Tech workers willing to accept lower pay, survey shows – read article…
• Jamaica to launch ‘Upsource Jamaica’ at upcoming tech conference – read article…
• Atento secures financing for comprehensive restructuring plans – read article…
• iQor Qampus hones next-gen BPO talent in Trinidad & Tobago – read article…

23 June 2023

• Cloud-based contact centers to fuel market growth by 2027 — Technavio – read article…
• iQor CPO highlights firm’s inclusive hiring, work culture – read article…
• MBaer to outsource IT, back-office services to Swisscom – read article…
• Ford Australia cuts 400 jobs, to outsource design to India – read article…