The Outsourcing Week in Review: Tuesday, September 14, 2021

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Welcome to Inside Outsourcing: The Outsourcing Week in Review

THE WEEK IN REVIEW

The IT employment rate in the United States reached a near two-year high in August, hiring over 26,800 employees in both technical and non-technical positions last month alone. According to a report released by the non-profit trade organization Computing Technology Industry Association (CompTIA), August 2021 recorded the largest monthly gain in tech jobs since November 2018. This is supported by the report published by IT and engineering staffing firm TechServe Alliance, which revealed that on a year-over-year basis, IT employment in the country has increased by 4.6%, adding 236,400 new workers in the industry. Amazing news!

Nigeria’s fast-growing BPO sector has topped Africa’s domestic and international Global Business Services (GBS) industry revenues by generating US$285.8 million this year. A Knowledge Executive report noted that Nigeria’s well-established IT sector boosts its outsourcing industry, which is currently employing over 16,000 locals – and counting!

To boost Fiji’s outsourcing sector, Australia’s Market Development Facility (MDF) and contact center firm Pacific Centrecom Limited are collaborating on strategies to promote the industry. The partnership aims to promote Fiji’s BPO industry, especially to nearshore markets like New Zealand. Fiji’s growing BPO industry is currently estimated to be worth FJD100 million (US$48 million).

Global IT services company Accenture acquired South Africa-based King James Group (KJ Group) as part of its expansion efforts in the continent. As per the acquisition deal, KJ Group’s 300 highly-skilled workers will be transferred to join the team in Accenture Interactive South Africa. Going back to the United States, Chicagoan staffing agency Medix acquired engineering staffing company Tisora Group. Medix President and CEO Andrew Limouris said that this new deal will enable them to offer customers an expanded technical solution across the engineering sector. The financial details of the deal were not disclosed to the public.

Acquisitions and mergers are also happening in the healthcare industry. Recently, healthcare management provider Connected Health announced the acquisition of its long-time outsourced recruitment partner Connected Talent. Connected Health CEO Douglas Adams said that the merger will help both companies move towards a “totally digital recruitment process.” Meanwhile, in line with its 2030 Agenda for Sustainable Development, IT giant Infosys and global media company The Economist Group formed a strategic partnership to provide sustainable solutions that can create a “world-changing” impact on the industry. Through this collaboration, they say that the two organizations will utilize their expertise to build dialogues and encourage actions that will help develop a more sustainable world. How nice!

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More than a year in and we are still reeling with the effects of the pandemic, as the highly contagious COVID-19 Delta pushes back (yet again) the return-to-office plans of companies in the United States. As major corporations are creating mandates to curb infections in their offices, Glassdoor senior economist Daniel Zhao said that the ongoing remote work model will likely delay the economic recovery of industries that rely heavily on on-site workers.

Working from home has helped firms reach sustainability, improve productivity, reduce costs, and increase employee loyalty — all of which contribute to a better work-life balance of employees – according to a recent study conducted by Hamdan bin Mohammed Smart University (HBMSU). The improvement of work-life balance has increased the demand for a hybrid working model across the Asia Pacific (APAC) region, according to employer branding experts Randstad Employer Branch Research (REBR). Their latest reports say that at least one in every three APAC employees has seen a change in their employment situation over the last year, resulting in a positive shift in their benefits, perks, and compensations.

However, not everyone is in agreement on the work-from-home option. American ​​software company Pluralsight said in its latest survey that remote working is widening the skills gap of tech employees. Four in 10 companies who participated in the research reported that they have seen an increasing gap in cybersecurity and cloud computing skills from their workers, among other tech skills. Commenting on the situation, IT professionals said that budget constraints and a distracting home environment are affecting the upskilling efforts that their employers are offering to them.

The impact of the COVID-19 Delta variant infections is being seen across countries’ Gross Domestic Product (GDP). Investment bank Goldman Sachs dropped its 2021 GDP forecast for the US from 6.2% to 5.7%. The American bank said that the COVID variant is weighing down the country’s Q3 growth and is affecting the recovery of the country’s service sector. This is the second time that they’ve cut the nation’s GDP growth forecast this year. However, they seem more confident for 2022 as they increased their US GDP growth prediction for that year from 4.3% to 4.6%.

The world’s road to post-pandemic bliss looks far from over, as scientists recently discovered a new COVID-19 variant, C.1.2,  that is spreading across South Africa. The National Institute of Communicable Diseases (NICD) said that the new strain has several additional mutations that are different from the Beta and Delta variants. As a precaution against this new variant, people are urged to get vaccinated to give “protection against hospitalization and death.”

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Tuesday, September 14, 2021

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NEWS THIS WEEK

 

13 September 2021

10 September 2021

  • Australia’s MDF, Centrecom collaborate toto boost Fiji’s BPO industry – read article…
  • 80% of top firms willing to work with competitors, says TCS study – read article…
  • US IT employment hits record-high in August – read article…
  • Scientists discover new COVID-19 variant in SA – read article…

9 September 2021

8 September 2021

7 September 2021

  • ibex opens its fifth BPO center in Jamaica – read article…
  • Hiring activity in tech companies accelerates in the US – read article…
  • Improved work-life balance drives demand for hybrid work, says REBR – read article…
  • COVID-19 Delta variant pushes back return-to-office plans – read article…

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