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Welcome to Inside Outsourcing: The Outsourcing Week in Review
THE WEEK IN REVIEW
The Global Information Technology (IT) outsourcing market is forecasted to grow by 20% annually over the next decade as companies accelerate their digital transformation. HFS Research CEO Phil Fersht said that the industry is on a “10-year roadmap” where tech delivery is slowly becoming the center of every business. In accordance with this, Wipro CEO Thierry Delaporte stated that tech talents will be “the hottest currency” on the global market. In the United States alone, IT job postings rose to 39% year-on-year in Q3. Art Zeile, CEO of IT jobs website Dice, said that the need for skilled tech workers “will only become more acute“ as companies shift to hybrid working.
“Software is eating the world.” Marc Andreessen, 2011
In its efforts to boost its Business Process Outsourcing (BPO) industry, South Africa’s Department of Trade, Industry, and Competition (DTIC) signed a Global Business Services (GBS) master plan. DTIC Minister Ebrahim Patel explained that this plan was created to “set a common vision and action agenda” for the growing outsourcing sector in the country. The master plan is expected to generate over 500,000 jobs by 2030.
To create more talent in the tech and offshore industry, multinational technology corporation Oracle kick-started its IT skill development program called ONE (Oracle Next Education) in Latin America. Dominican news outlet Hoy.com reported that the project will “enhance the employability” of computer science graduates in the region. The tech company is planning to train over 40,000 locals by the end of May 2022. Additionally, tech giant IBM partnered with South Africa’s National Youth Development Agency (NYDA) for a skills initiative that will enhance digital literacy and prepare the young population for the 21st-century workplace. IBM and the NYDA will run educational boot camps across the country to reach a wider audience. Relatedly, Guyana’s “leaving no child behind” initiative is also equipping its youth with ICT skills. Earlier this week, 31 Georgetown students, aged 12 to 17, have finished their ICT training under the Industry and Innovation Unit. This program seeks to educate young children in basic ICT skills used across the country.
In M&A news, investment engineering and construction services provider Emirates Stallions Group (ESG) acquired 70% of stakes in outsourcing company WFC Holding. This deal is part of ESG’s expansion into new areas that complement their construction and real estate business. WFC Holding is a leading UAE-based BPO firm that grew its revenue by 350% to AED405 million (US$110 million) last year. Further, global technology company Zoho officially launched a “flagship office” in Cape Town, SA. Zoho President for the Middle East and Africa (MEA) Hyther Nizam said that this expansion will help scale their ongoing initiatives — such as local hiring and upskilling — in the African nation.
Digital transformation solutions firm UST is planning to double its headcount in Bengaluru, India to 12,000 in the next two years. UST COO and India Country Head Alexander Varghese stated that they are determined to create “great IT industry job opportunities in Bengaluru” for the next 18-24 months. UST will hire a mix of fresh graduates and experienced engineers to serve the company clients in various industries. Another company in need of an additional workforce is Midas BPO. In partnership with the Government of Guyana, Midas BPO is preparing to recruit 1,000 locals by 2022. This recruitment drive is expected to address the country’s high unemployment rate. Senior Minister with responsibility for Finance Dr. Ashni Singh said that call center firms can generate more jobs for young professionals than the other sectors in Guyana.
The global office market is expecting a smooth comeback by next year. In London, England, 37% of developers are confident with the market’s recovery despite the continued rise of remote work. According to Deloitte’s London Office Crane Survey Winter 2021, developers built about 3.4 million square feet of new office space from April to September.Deloitte Real Estate Director Mike Cracknell said that the higher volume of newly built offices “points to the resilience of demand for offices as an asset class”. The Canadian office sector is also bound for smooth recovery by 2022. Colliers Vancouver broker Dan Jordan said that the city’s office market is expected to be “exceptionally busy” next year as companies plan to return to their workplaces. It should be noted that among all major North American cities, Vancouver has the lowest office vacancy rate amid the pandemic at 6.2%.
It seems that remote working is beginning to show its flaws. According to a survey by PwC, the productivity boost that remote and hybrid working is bringing comes at the expense of employees feeling burnout. About 74% of business and HR leaders said that they’re not fully confident that their workloads are manageable enough for employees to have personal time. Since 2019, the World Health Organisation (WHO) has recognized burnout as an official disease.
In Spain, 66% of employees acknowledged their need to upskill to adapt to the changes of the post-pandemic workload. Research from HR consulting firm Randstad Spain showed that two of three workers feel that they’re not fully prepared to adapt to new tools and processes brought on by the pandemic. Meanwhile, 64% have difficulties in choosing skills to improve due to a large number of changes in the labor market. Randstad Research Director Valentín Bote said that employees are becoming “increasingly aware” of the importance of upskilling in their professions — especially in difficult times.
Mexico’s strict outsourcing law has apparently triggered a 0.4% decline of its GDP for the third quarter of the year. In April, the government implemented a new law that prohibits the outsourcing of workers in the country. Employers in Mexico are only allowed to hire outsourced workers for specialized services that are not part of the company’s principal economic activity. Capital Economics Latin America economist Nikhil Sanghani said that the output in the 50% quarter-on-quarter decrease in the sector, directly impacted its contribution to Mexico’s overall economic growth.
Well, what did they expect?
Tuesday, November 30, 2021
NEWS THIS WEEK
29 November 2021
- HCL appoints new Brazil Country Head – read article…
- ESG acquires 70% stake in WFC Holding – read article…
- IBM, NYDA join forces in digital skills program – read article…
- India’s aviation ministry proposes outsourcing airport security – read article…
26 November 2021
- Midas BPO to employ 1000 Guyanese in 2022 – read article…
- Vancouver’s office sector expected to smoothly recover in 2022 – read article…
- 66% of Spanish workers are requesting for upskilling post-pandemic – read article…
- Permanent remote work is the key for post-pandemic recovery in Niagara – read article…
- Outsourcing law triggers Mexico’s GDP decline – read article…
25 November 2021
- OHC orders regularization of outsourced employees in Odisha, India – read article…
- 31 Guyanese children finished with ICT training – read article…
- US IT job postings up by 39% y-o-y in Q3 – read article…
- SAtion, Microsoft, Empire Partner Foundation host digital skills hackathon – read article…
24 November 2021
- Webhelp appoints South Africa MD – read article…
- Remote work boosts productivity at the expense of burnout – PwC – read article…
- 37% of London developers expect office market recovery despite remote work – read article…
- UST to double its headcount in Bengaluru, India – read article…
23 November 2021
- GBS master plan to boost South Africa’s BPO sector – read article…
- Global IT outsourcing to grow by 20% annually over the next decade – read article…
- Oracle to provide to train 40K Latin Americans – read article…
- IT firm Zoho opens its South Africa office – read article…
