A recent study by KPMG, a global consulting agency, found that over 75% of business process outsourcing companies have been slow to address liabilities coming from data breaches.
KPMG claims that nearly half of outsourcers are constructing contracts to place any liabilities that arise from weaknesses in the BPO's infrastructure is directed towards the offshore firm.
The study analyzed corporations on the degree of inherent risks along lines of service including payroll, customer service, and accounting, and how agents stand up to background checks.
In India, the BPO industry has seen exponential growth in the past decade, surging from under $2 billion, to a current estimation of around $15 billion.
Analysts expect the growth to continue, albeit at a slightly slower pace. Over the next decade, the industry is expected to quadruple.
However, less than half of the companies surveyed require firms to disclose new potential threats and weaknesses in their product portfolios.
Friday, December 3, 2010
Thursday, December 2, 2010
TCS Launching Call Center in Manila
India's largest business conglomerate, Tata Consultancy Services, opened a 400 seat call center in Manila on Thursday. Tata hopes its first call center in Southeast Asia will grow to approximately 1,000 seats in just over two years.
TCS hopes that its new call center will diversify its offerings. The Philippines has been taking market share from India in voice related services, as US clients increasingly prefer call centers in the Philippines.
Currently, the Philippines BPO sector is second in size only to India, and currently employs approximately 450,000 people.
TCS hopes that its new call center will diversify its offerings. The Philippines has been taking market share from India in voice related services, as US clients increasingly prefer call centers in the Philippines.
Currently, the Philippines BPO sector is second in size only to India, and currently employs approximately 450,000 people.
Philippines to Overtake India
The Philippines is on the verge of replacing India as the world's top outsourcing destination for voice-related customer service and sales.
The Philippines has grown in popularity with the American business community due to its employees' closer relationship to Western culture, lack of other competing labor opportunites, and better tax incentives.
Currently, about 45% comes from voice services, including telemarketing, customer support, and lead generation. According to the Business Process Association of the Philippines, these services presently amount to about $5.58 billion. In contrast, the Philippines BPO industry is expected to generate close to $5.70 billion in sales of voice services.
The $9.5-billion Philippines outsourcing sector grew at a compounded 27.6% over the last two years. If it maintains its current breakneck growth rate, the Philippines could possibly pass India's $12.4-billion BPO industry in about five years.
In contrast, India's BPO industry has grown at a rate of about 12% during the last two years. If these trends continue, India will fall behind the Philippines prior to 2015.
The US, which controls 65% of the America dominates the world outsourcing market, and is responsible for about two-thirds of all sales. The Philippines' closer cultural ties, neutral accents, and understanding of American customers is a primary reason for the shift. The Philippines is currently the third largest English speaking country in the world.
The Philippines has grown in popularity with the American business community due to its employees' closer relationship to Western culture, lack of other competing labor opportunites, and better tax incentives.
Currently, about 45% comes from voice services, including telemarketing, customer support, and lead generation. According to the Business Process Association of the Philippines, these services presently amount to about $5.58 billion. In contrast, the Philippines BPO industry is expected to generate close to $5.70 billion in sales of voice services.
The $9.5-billion Philippines outsourcing sector grew at a compounded 27.6% over the last two years. If it maintains its current breakneck growth rate, the Philippines could possibly pass India's $12.4-billion BPO industry in about five years.
In contrast, India's BPO industry has grown at a rate of about 12% during the last two years. If these trends continue, India will fall behind the Philippines prior to 2015.
The US, which controls 65% of the America dominates the world outsourcing market, and is responsible for about two-thirds of all sales. The Philippines' closer cultural ties, neutral accents, and understanding of American customers is a primary reason for the shift. The Philippines is currently the third largest English speaking country in the world.
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