Throughout the past year alone, the outsourcing industry has been in the spotlight due to companies realizing its importance in keeping operations going amid a pandemic. However, as a small business, you might tend to overdo this method to maximize your benefits.
Continue reading
Artificial intelligence may be the future, but the segment that powers it — the semiconductor industry — is struggling to attract and retain talent.
Consultancy firm McKinsey found that by 2029, the domestic semiconductor sector in the United States could be in need of 59,000 to 146,000 technicians and engineers.
Massive consequences abound if demand outpaces supply. The biggest companies in the world are continuously lacing their systems with AI to hasten operations and ride with the times. A sudden shortage of semiconductors could stall progress and could lead to a massive economic collapse.
The issue lies in an aging workforce demographic and skill gaps. Experts also believe that young workers perceive that working for a microchip manufacturer won’t set them up for a long professional career.
Those who apply and get into the industry do not stay long for the same reasons. Additionally, these young professionals leave because of the lack of meaningful work and uncaring and uninspiring leaders.
Working for a semiconductor company is one of the most important jobs today. The chips these factories produce are the keys to present and future prosperity. They are the lifeblood of world economies, and there will be a point in time when it will be difficult to work without AI’s assistance.
This message cannot be reiterated if middle managers are swamped with administrative work. Studies have shown that middle managers across industries are spending nearly one full day out of every week on low-value administrative tasks.
The rapidly changing business landscape and rising salaries have pressured companies to flatten hierarchies and trim workforces. Middle managers bear the brunt of these setups. Companies now treat them as a catchall: someone who does managerial and nonmanagerial work while navigating intricate organizational bureaucracies.
A middle manager’s real task is to develop talent, monitor performance, support employee growth, and foster collaboration. As we enter the tech era, this duty should be further reaffirmed instead of watered down.
Businesses should give back the power to middle managers. Firms must distribute administrative workloads to offshore teams so middle managers can accomplish their true marching orders: nurture organizational talent, spot underperforming employees, prevent the departure of valuable workers, and provide daily motivation.
Outsourcing staff who can accomplish administrative tasks is a powerful investment, especially for the semiconductor industry. Through this, a middle manager can concentrate on monitoring the progress of workers and devise ways to enhance their potential.
This could change the image of the semiconductor industry from a dead-end job to one of the most rewarding and sought-after professions on the planet.
Have you considered offshore teams to assist your middle managers?
Craving a captivating end-of-week reading? Well, Inside Outsourcing is just what you need! Here are some breaking news on AI,
Continue readingTHE WEEK IN REVIEW
We’re tracking everything in outsourcing, as it redefines the global economy – so you don’t have to. Sit back, and ease into your Monday with Inside Outsourcing: International Edition!
An impressive surge in mega-deals propelled the global managed services market to a record $10 billion in Q2 2023. Ten such mega-deals accounted for US$1.7 billion of annual contract value (ACV) — a substantial 35% increase from the same quarter in the previous year. According to research and advisory firm Information Services Group (ISG), this spike in mega-deals came despite a decrease in cloud services expenditure. Enterprise demand for cost optimization was a strong contributing factor, leading to robust contract renewals and extensions. Despite this success, ISG President Steve Hall cautioned against overconfidence, warning that market growth might slow as companies exercise caution over their investments for the rest of the year.
In the Pacific, the Fijian Government recently made a landmark commitment of $2.5 million to fortify its local outsourcing industry, which is big money considering its population of only 900,000. Trade Minister Manoa Kamikamica outlined the Government’s intent to develop incentives targeting Business Process Outsourcing (BPO), Knowledge Process Outsourcing (KPO), and shared services to bolster the industry. The ultimate aim, explained Kamikamica, is to position Fiji as a regional powerhouse, attracting high-profile international brands to the country. Simultaneously, Outsource Fiji is working with Learning Planet to launch an online scholarship program to advance professional development within the BPO sector. The open-source learning platform will feature nine key modules: communication, customer skills, leadership, and mental health improvement. So far, 315 BPO sector employees have registered, and 100 scholarships are available for jobless individuals holding a Year 12 qualification.
Despite recent layoffs in major tech companies, India‘s IT and Business Process Outsourcing (BPO) sectors witnessed a resurgence in hiring in June 2023. The BPO industry registered a 7% in hiring, while the IT sector reported a 2% increase in recruitment. Experts said this promising recovery hints at a robust rebound in hiring trends and highlights the sectors’ resilience.
Meanwhile, Indian IT giants Tata Consultancy Services (TCS) and Wipro Limited also demonstrated strong performances for the June quarter. TCS reported a robust 16.8% year-on-year (YoY) net income growth in Q1 of 2023, backed by operational improvements, transformational engagements, and a continued focus on investment and talent development. Similarly, Wipro displayed a healthy 12% YoY growth in net income for the same period, highlighting the significance of strategic initiatives like the launch of Wipro ai360 and a US$1 billion AI investment.
In Southeast Asia, Asia CEO Awards Chairman Richard Mills said that the Philippines is on the brink of a “golden age of growth” thanks to its outsourcing industry. Citing the country’s young, English-proficient workforce, Mills predicted that the Philippines would thrive in a post-pandemic world favoring remote and hybrid work models. However, Mills also called for bureaucratic reforms to help the country combat challenges like talent shortages in manufacturing and unlock its full economic potential.
At the same time, the Nigerian Export Promotion Council (NEPC) is looking to generate around US$5 billion in revenue from the outsourcing sector by 2024. Highlighting Nigeria‘s appeal as an outsourcing hub due to its high population, low labor costs, and English proficiency, NEPC Executive Director Ezra Yakusak said the sector could significantly boost the country’s economy. Still, the country’s Ministry of Industry, Trade, and Investments Permanent Secretary Evelyn Ngige emphasized the need for a conducive business environment, streamlined bureaucratic processes, and attractive investor incentives to support the sector’s growth in the next few years.
Despite this promising news, the outsourcing industry also grapples with ethical concerns. Deloitte Australia CEO Adam Powick admitted to feeling “incredibly privileged” to receive an annual pay of US$2.3 million from the company. During an ongoing investigation into the consulting firm’s pay structures and ethical practices, Powick stated that he feels undeserving of the salary — which is 7x the Australian Prime Minister’s annual salary. The probe also revealed that Deloitte AU received around 121 complaints regarding bullying, sexual harassment, discrimination, and mishandling of confidential information just this year. This ongoing investigation underlines the mounting scrutiny for consulting firms regarding their ethical standards and the importance of transparency and equity in remuneration practices.
In other news, a consortium of Ethiopian tech companies recently created the Ethiopian Outsourcing Association (EOA) to position the nation as a competitive outsourcing hub. The EOA aims to bring policy changes, promote innovation and growth, and showcase Ethiopia’s blossoming tech sector. The move is part of the broader trend of Africa’s increased appeal as an outsourcing destination, with recent investments from tech giants like Amazon, Google, and Microsoft boosting job growth in tech-enabled sectors.
Finally, in the Caribbean, Jamaica‘s Digital Transformation Minister Dana Morris Dixon warns of the potential impact of artificial intelligence (AI) in the country’s thriving BPO industry. During a forum, Dixon stressed the importance of immediate workforce upskilling to protect the sector from AI disruption. The minister also suggested moving the BPO workforce up the value chain by focusing on opportunities in cybersecurity, coding, software development, and data centers.
Preparation pays off!
20 July 2023
19 July 2023
18 July 2023
17 July 2023
14 July 2023
Welcome back! We take the latest, greatest, and most noteworthy BPO M&A news and give it a tasty spin, with a dash of hot sauce! ????
We begin with HCL Technologies, India‘s third-largest IT services firm. It is putting down $280 million to bag ASAP Group, a German automotive engineering services company. With this deal, HCLTech shifts gears to gain ASAP’s expertise in autonomous driving and e-mobility, accelerating its move from IT consultancy to technical high-flyer. This aligns with the current trend in India’s $245 billion software services sector to venture into advanced sectors like telecommunications, transportation, and aerospace.
The cherry on top? ASAP Group gives HCLTech the perfect route to cruise into European and American automotive markets and bolsters its presence in Germany, which the company views as a key market. All this comes on the back of HCLTech’s impressive $8.27 billion in revenues for FY 2022. The company employs 200,000 people globally.
With a staggering 20 acquisitions under its belt, HCL Technologies has made some serious waves in the IT industry. The company’s most significant acquisition was in 2018 when it purchased IBM software products for $1.8 billion. Thanks to these strategic moves, HCLTech now holds its head high as India’s third-largest IT firm, hot on the heels of Infosys and Tata Consultancy Services.
HCL Technologies also holds the 9th top rank in the Time Doctor OA500, the first objective index of the world’s top 500 outsourcing firms.
Now let’s hop stateside, where Momentum is gearing up to acquire Georgia-based Asset Black. This move will boost Momentum’s geographic footprint while giving it a new entry ticket into verticals such as financial services. While we await the regulatory thumbs-up, G2 Capital Advisors, serving as the exclusive buy-side advisor to Momentum, confirms that the deal is expected to conclude later this year.
Switching our gaze to the tech startup scene, Gushwork.ai has scored a sweet US$2.1 million in pre-seed funding. What’s the goal? Redefining BPO via artificial intelligence (AI), of course! The hefty backing from investors like Lightspeed and B Capital will drive their marketplace expansion, offering businesses AI-adept offshore professionals. Gushwork.ai’s model, aptly dubbed ‘Uberization’ of the workforce, champions flexible, part-time specialists over full-time employees. The startup, already serving 50 businesses, will use the new funds to bolster quality control, expand geographically, and reach out to more small to medium businesses in the U.S. and Canada.
Now, we jet off to India, where global IT firm Cognizant and Max Life Insurance are shaking hands over a new innovation and development center. The aim? Accelerating Max Life’s digital transformation initiatives. Cognizant, a $19 billion heavyweight, will bring its expertise in AI, automation, and cloud transformation to the table, reinforcing its longstanding partnership with Max Life.
Meanwhile, corporate real estate advisory firm Mohr Partners is hopping aboard the India BPO train, launching an outsourcing business to enhance its lease administration and rent payment services. Mohr’s new venture, with boots on the ground in cities like Mumbai, Chennai, and New Delhi, represents a strategic expansion supporting its fastest-growing service line, Global Lease Services. This move also sets the stage for Mohr’s future BPO services in corporate real estate.
Next stop, Monterrey, Mexico! That’s where software engineering company Ascendion is opening a new office. The new hub will rev up the local economy with an expected 200 jobs in six months and 1,500 jobs over three years. This could also inject an estimated $100 million into the Mexican economy.
Next, an exciting partnership between BPO provider VentureCount Services and financial consultancy firm Tarsus CFO Services. This dynamic duo is set to offer comprehensive services ranging from CFO level to daily bookkeeping. VentureCount, a portfolio company of Everlane Equity Partners, is known for its finance, accounting, and CFO services, while Tarsus offers CFO, corporate development, and controller services. This partnership is geared towards helping Tarsus expand nationally and bolster its comprehensive financial services.
Moving on to omnichannel contact center solutions, we have Upstream Works partnering with Webex by Cisco. Their collaboration will birth ‘Upstream Works on Webex Contact Center’ (UWW), an advanced agent desktop solution to enhance customer and agent experiences across channels. UWW aims to revolutionize workflows by integrating AI applications, business applications, and CRM systems into contact centers. With a reseller community via the Webex App Hub, enterprises will have their pick of tailored omnichannel solutions. Here’s to smoother customer interactions!
There you have it – a startup scoring big, new collaborations blooming, and strategic expansions taking shape. What an exciting time in the BPO world!
21 July 2023
20 July 2023
19 July 2023
18 July 2023
17 July 2023
Large US corporations wouldn’t be where they are now without the help of outsourcing companies.
It is a well-known fact that Philippine business process outsourcing (BPO) companies have been catering to US firms of different sizes and industries for over 40 years.
A significant number of top US companies outsource their operations to the Philippines.
Due to the outsourcing sector’s various advantages and counter-cyclical nature, businesses are now looking into offshore staffing as a saving grace.
Now more than ever, companies realize the benefits of delegating parts of their business to a competent and dedicated offshore team.
Businesses usually consider outsourcing to save on costs. However, US companies should know that it’s not the only good reason why this is considered an outstanding business strategy.
When most people think of outsourcing, they think of low-grade roles and basic virtual assistants.
Continue reading
The hiring game has completely changed. Skills that used to be prioritized in job interviews are no longer the most appealing traits employers seek.
Instead, hiring managers are keen on identifying skills that build out other skills.
Fortunately, a newly-released study by consulting firm Cappfinity identified five behavioral skills that individuals could use as a foundation to build new talents and abilities.
Curious to know what they are? Take a look below:
Curiosity
Recruiters are drawn to people who ask great questions, investigate, and are unafraid to expand their horizons. Courteous people are often open to new situations and experiences as they believe it provides them with more opportunities and discoveries.
Learning Agility
The ability to pivot knowledge into something that could help the workplace could be helpful in landing a job. Hiring managers often pay close attention to this ability as it also brings quick ROI to their companies.
Growth Mindset
Those who possess a growth mindset have the desire to conquer new challenges, even if they require persistence to succeed. They believe they can achieve their goals and find it motivating to work on unfamiliar projects.
Critical Analysis
If you have the capacity to look at issues from different perspectives and enjoy consulting with multiple people to identify the next steps and make informed decisions, then you may be an expert at critical analysis.
Collaboration
Those who know that working with others is the best way to achieve results and who enjoy contributing and delivering on shared goals can add collaboration to their list of skills. You most likely work well in person and virtually and can adapt your communication style.
Be sure to show your interviewer the kind of teammate you want to be and how you plan on showing up to work if they were to give you this role.
It is important to think of these skills as accelerators that will help you develop yourself further in your career.
Whether you are searching for a new role, getting back to work, or are a recent graduate, highlighting these skills to recruitment managers will show that you are not only qualified but also have the potential for future leadership roles in the company.
Requiring no more than a computer, mouse and keyboard keys, the metaverse is an accessible technology that offers close to reality if not ultra realistic “remote”.office interactions.
Several companies have been putting forward metaverse solutions that will make remote work more effective. Like a mirror of the real physical world, in the metaverse people can engage in social interactions, adopt pets, design virtual fashion items, acquire virtual real estate, go to events, create and sell digital art and earn money.
Now, people can actually work in the metaverse. India-based Metaverse immersive platform NextMeet offers interactive working, collaboration, and learning solutions. Pushpak Kypuram, Founder-Director of NextMeet, who explained the inspiration behind their virtual workplace solution: “With the shift to remote working from the pandemic, keeping employees engaged has become a top challenge for many companies.
“With NextMeet’s immersive platform, employee digital avatars can pop in and out of virtual offices and meeting rooms in real-time, walk up to a virtual help desk, give a live presentation from the dais, relax with colleagues in a networking lounge, or roam a conference center or exhibition using a customizable avatar.” a report from Harvard Business Review read.
PixelMax, a UK-based start-up, similarly helps organizations create immersive workplaces designed to enhance team cohesion, employee wellness, and collaboration.
Virtual workplaces, which a web-based systems can be accessed through regular work computers. It does not even require headsets or VR- glasses. PixelMax’s technology is based on the idea of giving employees the opportunity to see their colleagues and engage in informal chats.
It also has well-being spaces where employees can “hang out” to take breaks. These are dedicated spaces that have forests and aquariums. Guided meditations are also offered in this modern-day work solution.
Clients can even opt to add a special feature that has the ability to order take-out food and other merchandise within the virtual space and then have the items delivered to a physical location.
Live status tracking: Just as in the physical workplace, you can walk around and get that panoramic sweep of the office floor, see where colleagues are located and who’s free, drop in for a quick chat, etc.
Remote work can be stressful. Research by Nuffield Health in the UK found that almost one third of UK remote workers were experiencing difficulties in separating home and work life, with more than one quarter finding it hard to switch off when the work day finishes. The metaverse office has a clear demarcation between personal and work life. It has a means of communicating employees’ status like “in a meeting,” “off duty.”
Employees can even build their own office space according to their liking.
With the advent of the digital revolution, remote work has transformed the way companies operate and scale.
As businesses seek to grow and adapt to new market demands, hiring remote workers has become an attractive solution. This allows them to access a diverse talent pool without geographical constraints.
The shift not only fosters flexibility and cost savings but also enables organizations to tap into seasoned professionals from around the globe. These specialists bring fresh perspectives and expertise to their teams.
To navigate this new hiring terrain, many companies are turning to remote staffing agencies that specialize in connecting businesses with qualified remote talent.
In this article, we provide a handy checklist to help organizations choose the best remote staffing agency and ensure they find the right partners to support their growth.
Staffing agencies have become essential partners for businesses navigating the shift towards remote work.
According to the World Economic Forum, global digital jobs that can be performed remotely are expected to grow by approximately 25% by 2030, reaching around 92 million. This significant increase underscores the need for companies to tap into remote talent effectively.
Here are some ways a remote staffing agency assists businesses:
To successfully navigate the challenges of remote hiring, companies should partner with a remote staffing agency that aligns with their specific recruitment needs.
In this section, we highlight five steps to help you select the right agency to collaborate with.
The following will guide you through essential factors to consider as you make an informed decision:
Begin by identifying the specific roles you need to fill, including the required skills and experience for each position. Assess any fluctuations in workload, as this will help determine whether you need temporary support for specific projects or long-term hires.
Additionally, establishing your budget constraints will guide your selection process.
It will help make sure you find an agency that can operate within your financial parameters while still meeting your hiring objectives.
Next, it’s important to gauge the expertise of potential staffing agencies.
Look for agencies that specialize in your industry. These are more likely to have a better understanding of your unique hiring needs and the specific skills required for success in your field.
Research the agency’s track record by examining its history of successful placements and client testimonials; this will provide insight into its effectiveness and reliability.
A reliable agency has a strong grasp of remote work dynamics and best practices for virtual teams. This knowledge is crucial for successful remote placements.
Understanding the recruitment process used by the agency is another critical factor in your selection.
Inquire about the sourcing methods they employ to find and attract candidates, including their recruitment strategies and tools.
It’s essential to know how they screen and vet candidates. Check whether they conduct background checks and skill assessments to ensure quality placements.
Consider how the agency communicates and provides updates throughout the hiring process, as transparency is key to maintaining a good working relationship.
Support and resources offered by a remote staffing agency can significantly impact your experience. Check if the agency provides assistance in onboarding remote employees, as this can help ensure a smooth transition into your company.
Ask about any training programs they offer to help remote workers integrate into your company culture and develop the skills necessary for their roles.
Look for agencies that provide ongoing support after placement, such as performance management and feedback, to help you maintain a productive and engaged remote workforce.
Finally, analyze the agency’s terms and flexibility. Carefully review the agency’s contract terms, including fees, duration, and any guarantees for placements.
Flexibility is vital in today’s dynamic work environment. Assess how flexible the agency is in accommodating changes in your staffing needs or project requirements.
Learn the process for terminating the relationship if the agency does not meet your expectations, including any associated costs, to ensure you have a clear exit strategy in place.
Working with the right remote staffing agency can greatly improve your ability to find and manage talented professionals. A trusted partner offers valuable expertise and resources that will help simplify your remote hiring process.
Explore Outsource Accelerator’s BPO Directory today to connect with leading remote staffing agencies for your hiring needs!