Monday, May 11, 2009

QLD Performing Arts strikes outsourcing deal

The Queensland Performing Arts Centre (QPAC) has inked a three year hosted virtualization deal with Macquarie Hosting to monitor network traffic and link its ticket bookings with flights and accommodation.

The outsourcing deal, the first for the QPAC, follows a $34.7 million upgrade of the Brisbane Concert Hall and Lyric Theatre last year and is set to make the centre more competitive with rival ticketing outlets such as Ticketek.

QPAC information services manager Chris Holder said it decided to outsource services after a large growth in network traffic.

“Services have been rolling over into the environment over the last eight months as we naturally outgrew internal management,” Holder said, adding the old environment was in place for about five years.

“We have plans to tie our ticket sales in with our restaurant to offer deals to our customers and we have partnerships with some of the local hotels... tieing qtix [ticketing system] with flights is still a possibility.

Holder said most systems have migrated to the virtualized environment, along with test servers running micro-sites for theatre campaigns including the Paris Opera Ballet La Bayadère.

Most services will operate on Citrix virtual VMWare hosts, alongside a single dedicated server, and use reporting systems and SSL load balancing to monitor and control network traffic. Its mission critical applications like the qtix ticketing system will be housed in the $35 million Macquarie Hosting Intellicentre in Sydney.

Holder said the hosted service, introduced in October last year, has reduced time to market for new offers and applications. Network traffic spiked at some of the highest levels during the launch of Miss Saigon and the Phantom of the Opera.

The centres' eight IT staff are also developing a new Web site, Holder says, adding that the QPAC has no plans to outsource further services.

The QPAC would not disclose the value of the deal.

Source: http://www.computerworld.com.au/article/302662/qld_performing_arts_strikes_outsourcing_deal

Thursday, May 7, 2009

IBM Named Innovation Leader for Outsourcing

IBM today announced that The Bathwick Group has declared IBM the leader for building innovation into large-scale outsourcing contracts. The standing is a result of recent research as part of the Bathwick Services Index, conducted by The Bathwick Group on prominent outsourcing vendors in Europe.

"Innovation in outsourcing is particularly crucial in this very tough economic climate as it can help the IT function to run more cost-effectively and more efficiently," said Kate Hanaghan, Senior Analyst, The Bathwick Group Ltd. "Equally, we know that clients who work with IBM value being able to tap into IBM's deep R&D resources and broad industry expertise in order to experiment beyond the confines of traditional outsourcing agreements. Overall, IBM heads the services pack with an innovation strategy that is mature, well funded and very well received by its customers."

According to the Bathwick Group report, IBM can build innovation projects into existing outsourcing contracts by allowing clients to work with leading IBM researchers and become part of the think tank, dispatch innovation experts to meet with clients a few times a year or dedicate scientists on a full-time basis. IBM also has the systematic capability of creating and tracking innovation progress in outsourcing contracts.

IBM innovation partnerships leverage the company's extended resources including research laboratories, technology development, information technology (IT) and business consulting practices to help clients innovate. Innovation partnerships can be formed to address broader business challenges and visions and to increase the value derived from their outsourcing relationships.

"Innovation partnerships are a natural extension of outsourcing relationships, giving clients direct access to IBM's extended capabilities including research and development as well as our own transformation experience, best practices and lessons learned," said Dave Liederbach, IBM general manager, strategic outsourcing.  "Providing experts from IBM's vaunted Research arm to address strategic client challenges and deliver innovative breakthroughs extends the core value IBM delivers through IT outsourcing. IBM is uniquely positioned to deliver this kind of higher-value engagement."

Source: http://www.tradingmarkets.com/.site/news/Stock%20News/2315734/

Wednesday, May 6, 2009

Hewitt Associates To Provide Benefits Outsourcing Services To FSBA

Resources consulting and outsourcing company Hewitt Associates, Inc. Wednesday said it signed a contract with Florida State Board of Administration or FSBA, an agency of the Florida, state government, to provide benefits outsourcing services. The agency provides various investment services to governmental entities.

According to the five-year agreement, effective January 1, 2010, Lincolnshire, Illinois-based Hewitt will act as record keeper for the FSBA's $3.8 billion Florida Retirement System or FRS Investment Plan. The FRS Investment Plan is a member-directed 401- a- defined contribution program.

Jay Rising, Hewitt's president of HR outsourcing said "We look forward to serving this new set of participants and retirees with our enhanced set of retirement tools that consider the diverse needs of the plan population. Our relationship with the Florida SBA marks a new foray into serving state governments, and it's one we will continue to pursue."

http://www.rttnews.com/ArticleView.aspx?Id=938462&SMap=1

Tuesday, May 5, 2009

Obama unveils anti-outsourcing policy, Indian BPOs to be hit

In a move that will hit some 10 lakh Indian IT professionals and a sizable chunk of the country's BPO industry, President Barack Obama has unveiled new proposals to end tax breaks for American companies that shipped jobs overseas to countries like India.

Meeting one of his major election promises, Obama said he will end the tax incentives to those US companies which created jobs overseas in places like Bangalore. Instead, the incentives would now go to those creating jobs inside the US.

"For years, we've talked about ending tax breaks for companies that ship jobs overseas and giving tax breaks to companies that create jobs here in America. That's what our budget will finally do," Obama said yesterday at the White House announcing the international tax policy reform.

"We will stop letting American companies that create jobs overseas take deductions on their expenses when they do not pay any American taxes on their profits," he said.

Obama said his administration will use the savings to give tax cuts to companies that are investing in research and development in the country to jump start job creation, foster innovation, and enhance America's competitiveness.

Source: http://www.ptinews.com/

Monday, May 4, 2009

Mexican outsourcing delivery could be impacted by swine flu

Courtesy: http://www.pharmaceutical-business-review.com/

Concerns over swine flu outbreaks in Mexico have led to many governments issuing warnings against non-essential travel to the country. Considering the existing worries over ongoing border violence, as well as potential agent absence, this virus could have a negative impact on the Mexican contact center outsourcing sector.

The recent outbreak of the virus commonly known as swine flu should be cause for concern among contact center outsourcers based in Mexico looking to grow their business from the US and abroad, should the spread of the disease not slow in the immediate future. With Mexico seen as the global epicenter of this illness and its capital city currently in the midst of a five-day shutdown, the potential damage in the near-to-medium term could be very serious.

To date, medical research has shown that swine flu is most commonly transmitted in areas of limited air circulation and close human proximity. For a location like Mexico, in which contact center agents frequently use public transportation to travel to and from work, it is very possible that many could choose to stay at home rather than risk contracting the virus during regular commutes. This is also the case in regard to the contact center facilities themselves, in which large numbers of individuals share common space.

In addition to concern among agents going to and from work, Datamonitor believes that the current swine flu outbreak in Mexico could also slow investment due to the health-related fears of business people from North America and beyond making them unwilling to travel into the country. With the US and Canadian governments issuing warnings against non-essential travel to Mexico, and some operators temporarily halting flights into Mexican cities, prospective investors may decide to examine other delivery locations that are perceived to be safer from a health standpoint.

The current outbreak of swine flu, furthermore, is only one of a number of challenges facing the Mexican contact center outsourcing space, the most notable of these being that of ongoing border violence. Earlier this year, Datamonitor commented on the negative impact that drug cartel wars with authorities could have on the investment climate in Mexico, in regard to attracting foreign clients. Concerns over swine flu will only exacerbate worries associated with this location, and make other offshore markets potentially more attractive to investors.

In conclusion, Datamonitor maintains that Mexico, given its cost effectiveness, remains an excellent option for US firms looking for a bilingual or Spanish-speaking, sizable labor pool from which to draw and a diverse choice of urban centers. Considering the existing challenges faced by vendors based in Mexico coupled with the current worries over swine flu, however, outsourcers based in that country are likely to find it more difficult to attract offshore investors than they have in recent years. Therefore, Datamonitor encourages outsourcers based in Mexico to consider the impact of swine flu on their operations and ongoing business development efforts, and to develop contingency plans to mitigate these risks.

Cities say outsourcing trims lawn costs

Courtesy: http://www.commercialappeal.com/

Despite having a city-operated Parks Department, Southaven pays Green King Spray Services $100,000 a year to keep the grounds at City Hall and some other city properties looking tidy.

In neighboring Horn Lake, the city pays Affinity Lawnscapes more than $140,000 a year to maintain City Hall and the Latimer Lakes Park Complex.

While some may see such fees as a duplication of services in tough economic times, city officials defend the practice of contracting such work because they say it actually saves money.

In fact, of DeSoto County's five incorporated municipalities, a check with officials revealed that a majority of them let private firms perform much of the seasonal work because, officials say, it's cheaper than hiring extra city crews for seasonal tasks.

Like Southaven and Horn Lake, Olive Branch follows the practice. Hernando used to contract with a lawn service for some work but no longer does so, and Walls, with fewer than 1,000 residents, performs all of its own maintenance.

In most of the larger cities, though, officials said outsourcing just makes more sense.

"We contract that work out because we would have to add a lot of people and equipment during the summer months to our regular Public Works crews if we did not," said Spencer "Penny" Shields, Public Works director in Horn Lake.

The city has a three-year contract with Affinity Lawnscapes, at $11,900 per month ($142,800 a year), for grass cutting, tree trimming, mulching, flower bed preparation, debris removal, weed control and fertilization of Latimer Lakes Park Complex and City Hall. The exception to the contract is the ball fields at Latimer, which are maintained by Parks Department crews.

Affinity is required to mow everything as often as is needed during the summer growing season. The contract with Affinity was signed this year.

Olive Branch Mayor Sam Rikard said his city spends about $45,000 annually to cut grass and perform landscaping functions.

He said the services are provided by four vendors.

"Since these are considered services, we do not bid, but we do take quotes for those services. We will be seeking quotes for those services again in September or October of this year," Rikard said.

He said the city outsources some of its grounds work despite having a Parks Department of 12 groundskeepers and two supervisors.

The city employees are responsible for cutting all the grass in City Park, the soccer complex and other smaller parks such as Magnolia, Southcrest and Ivy Trails.

They also prepare every ball field, and they cut grass at three US 78 intersections and the right-of-way along Goodman Road near Eastover subdivision.

Rikard said without getting outside help, the city would have to have more park employees on payroll all year long to perform the services that are only necessary seasonally.

In Southaven, the county's largest city, city officials hired Southaven-based Green King Spray Services for weed control, lawn and grounds maintenance at its City Hall complex on Northwest Drive, Jim Saucier Park, the Police Department and the library.

The city pays the company $100,000 per year for the work. Invoices show that from 2007 to this year, the city paid the company $307,114.73 for work.

The work done by Green King is considered a professional service and does not have to be bid on by vendors, Mayor Greg Davis said.

"Vendor selections come through purchasing and department heads in accordance with state law," Davis said.

He said the city's parks employees maintain all the city parks, including the massive Snowden Grove complex, and cut grass at abandoned or condemned property in the city.

"To do the weed control with spraying the chemicals, a state license is required to do this work and our parks employees do not have certification," Davis said.

Davis said the city also outsources grass cutting of the medians and ramps along Interstate 55 to Reel Neet Lawn Service because the Mississippi Department of Transportation only cuts the grass twice a year. Reel Neet, a Southaven company, receives $100,000 per year.

"Again, it is cheaper to do it this way than in-house," Davis said. "In fact, we used to do the all the lawn maintenance work in-house, but the maintenance of the equipment and personnel costs skyrocketed."

Hernando Mayor Chip Johnson said his city, the county seat, used to subcontract with a lawn service for mowing on- and off-ramps along Interstate 55, the city parks and the cemetery. However, that work is now handled by the Hernando Parks Department.

In Walls, the smallest of the county's incorporated municipalities, Mayor Gene Alday and other town officials pitch in and do all the grass cutting, roadside trash pickup and landscaping at Town Hall and the town's one park.

Last year, the town of 870 residents bought a $23,000 tractor, and Alday can be found on it on any given day, cutting grass in the town.

Dr. John O'Looney, senior public service associate at the Carl Vinson Institute of Government at the University of Georgia, said outsourcing is not uncommon for local governments.

"We see it a lot when new elected officials come in and want to explore it, thinking that the private sector can do it better," O'Looney said.

O'Looney said in 2007 his office conducted a feasibility study on outsourcing for Dawson County, GA, and found that it is a complex issue that does not have a "one-size-fits-all" answer.

"Contracting for services is and will continue to be a major decision task facing public managers," the study stated. "According to the US Government Accountability Office, contracting is the most utilized alternative to direct service provision.

"However, there does not appear to be any single answer to the question of whether to contract out services."

He said individual governments have to decide what is best for their needs.

Friday, May 1, 2009

Outsourcing firm shut down for using pirated software

Courtesy: http://www.abs-cbnnews.com/

The Anti-Fraud and Commercial Crimes Division (AFCCD) of the Philippine National Police’s Criminal Investigation and Detection Group (CIDG) seized a total of 173 computers during a raid against Pinoy Data Capture Inc. in Makati City last week, putting the latter’s operations to a virtual standstill.

The search warrants were issued by Manila Regional Trial Court Vice-Executive Judge Cielito Mindaro-Grulla for the alleged violation of Republic Act 8293 or the Intellectual Property Code of the Philippines.

Pinoy Data Capture Inc. (PDC), with its office at the 30th floor of Burgundy Corporate Tower in Sen. Gil Puyat Ave., Makati City, was reportedly using computers with unlicensed and pirated software in its business operation.

PDC is a business process outsourcing (BPO) company that provides data conversion, medical coding, contact center and software development services for clients in the Philippines and the United States.

The police operation involved the software audit of each computer and server, and then check against software licenses that were presented by the company to determine the legality of the software. PDC had to stop its operation and send home their employees to avoid disruption to the inventory and seizure procedure of the raid.

Anti-piracy operatives found 173 of the company’s computers loaded with unlicensed and pirated copies of Adobe and Microsoft software, with an estimated value of almost P9 million.

“All computers found loaded with unlicensed and pirated software were seized and will be kept in police custody for use as evidence in court,” said Senior Superintendent Joel Orduña, chief of the PNP-CIDG-AFCCD.

He added: “This raid should serve as a warning to other businesses that continue to use unlicensed software. Software piracy may not only result in serious legal consequences, it can also completely paralyze business operations.  That unlicensed software was found in PDC’s business operation truly casts a shadow over the country’s aspiring BPO industry.”

The raid on PDC is part of the Pilipinas Anti-Piracy Team's ongoing nationwide campaign against businesses using unlicensed and pirated software. The PAPT had earlier given businesses 20 days to legalize their software, after which, members of the PAPT including the NBI, OMB and PNP conducted random and routine inspections and raids on businesses that were allegedly infringing on software copyright.