More HR work to be outsourced to India

Bangalore: India is likely to get a large amount of offshored HR work in the next three years. According to a study by Everest Group, a global consulting and research firm, some 111 global HRO (human resources outsourcing) contracts worth $6 billion are nearing term end in 2010-12 and 75-85 percent of these engagements are likely be extended while 15-25 percent will be repatriated or transferred to new suppliers.

The study says, "Given the maturity of India as an offshore delivery location and presence of high number of HRO suppliers, more work is going to come to the country." In the next three years, contract restructuring is likely to play a significant role as early adopters of HRO services face impending renewal cycles. HRO clients will increasingly evaluate how to drive incremental value for their organizations through the end-of-term process.

"The areas of restructuring range from modifying the number and type of in-scope processes, to enhance delivery models through global sourcing, to introduce alternative pricing models," says the study. The mid-market and large market HRO buyers, who used to be reluctant to take services from offshore locations, are expected to leverage offshoring much more in their second generation deals due to increased cost pressures in recent times.

Top Outsourcing Comanies of the world

he International Association of Outsourcing Professionals has announced the world's best outsourcing service providers in 2008.

The Global Outsourcing 100 list has 6 Indian companies among the top ten. In the global 100 ranking, Infosys is ranked third, followed by Capgemini and TCS at fifth and sixth positions, respectively.

'Global Outsourcing 100' is an international list of companies that provide the full spectrum of outsourcing services. The selection criteria include the size and growth of the company, customer experience, depth and breadth of competencies and management capabilities.

Following are the top 10 global outsoucring companies, excluding the Indian firms in the list:

The Top 10 global outsourcing companies
Accenture (Rank 1)-- Key strength: Customer testimonials
IBM (Rank 2) -- Key strength: Size & growth
Sodexo (Rank 4) -- Key strength: Global presence
Capgemini (Rank 5) -- Key strength: Achievement recognition
Hewlett Packard (Rank 8) -- Key strength: Outsourcing experience
EDS (Rank 12) -- Key strength: Outsourcing experience
ACS (Rank 13) -- Key strength: Balanced performance
CGI group (Rank 14) -- Key strength: Customer testimonials
SPi (Rank 17) -- Key strength: Customer testimonials
Colliers International (Rank 18) -- Key strength: Global Presence

Tech Mahindra, TCS competing or $400 Million Deal

New Delhi: Tech Mahindra, IBM and Tata Consultancy (TCS) are competing for a $400 million (Rs. 1,800 crore) IT outsourcing contract from Sistema Shyam Teleservices (SSTL). Negotiations are on with these companies for a 10-year deal, but the contract will contain a clause that will allow Sistema Shyam to exit after five years, said a source familiar with the matter to The Economic Times.

Sistema, a Russia-based company providing various consumer services, has a 74 percent stake in the joint venture with the Shyam Group that offers mobile services under the 'MTS' brand in India. Sistema Shyam is the only CDMA player, among the new crop of telecom operators. "A final decision on the deal is expected to be taken by the year-end," said Rajeev Batra, Chief Information Officer of SSTL. He confirmed that the three IT companies were in the reckoning for the contract, but did not confirm the value of the contract.

The proposed deal will not include the operator's BPO operations, as the company has already outsourced its customer care operations to Essar Group's Aegis BPO. The winning company will manage SSTL's IT systems across the 22 telecom circles in the country. SSTL, which is scheduled to launch telephony services in Delhi next month, plans to be a pan-India operator by the third quarter of next year. Early this year, SSTL had tied up with IBM for designing and building its green datacenters in Chennai and Gurgaon.