Outsourcing - News & Trends
Self-employed at greater risk
WASHINGTON, D.C. – Studies in the United States and Europe suggest that contingent workers such as part-time, temporary, or contract workers are at higher risk for occupational injuries and illnesses than workers in traditional employment situations, report researchers from the National Institute for Occupational Safety and Health (NIOSH).
Specifically, the findings include:
- The rate of fatal occupational injuries among self-employed workers was twice the national average for all workers, according to data from the U.S. Bureau of Labor Statistics.
- The rate of needlestick injuries among temporary nurses caring for AIDS patients in 11 U.S. hospitals was 1.65 times higher than the rate for staff nurses working in the same units.
- Fully 19% of day laborers reported work-related injuries in 2004 that required medical attention in the previous year, compared with less than 5% of workers in all private industries and about 6% of all workers in construction.
While contingent workers are a diverse group, ranging from well-paid independent consultants to low-skilled construction workers, they are more likely to be young, female, Hispanic, and to have lower incomes and fewer benefits than workers in traditional employment, NIOSH researchers found.
As a concern that also involves issues of personal health, the unpredictable schedule of some contingent positions may contribute to poor eating and exercise habits, factors in obesity and diabetes. Further information is available at www.cdc.gov/niosh/
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Outsourcing to shine
DALLAS – Outsourcing call center work to offshore destinations is in a rapid growth phase withkey delivery centers such as India, Philippines, and central and Eastern Europe experiencing annual growth rates in excess of 30%, according to a study by the Everest Research Institute.
Consolidation of processes within the customer management function and across buyers’ business units has become the primary focus of Contact Center Outsourcing solutions with investment in technology solutions and global delivery mechanisms serving as catalysts, according to the study.
The Institute’s study, Trends in Offshore Contact Center Services Market,reports that, while the global CCO market has grown to a $55 billion opportunity today, traditional Contact Center Outsourcing has reached a mature phase and is showing signs of an impending growth plateau on the heels of 10%-12% growth over the past three years.
The Institute also attributes the CCO market’s growth to each location’s differing leverage points among cost, operating risks, maturity of the supply landscape, and extent of fit with specific customer geographies. For example, Eastern Europe has risen to be a low-cost alternative for European buyers given language skills and proximity, while Philippines has become a key destination for English voice-based work for the United States.
Consolidation of customer management processes and across buyers’ business units is giving rise to higher value segments that offer more holistic, end-to-end outsourcing solutions. Other study findings include:
- In the last year, significant mergers and acquisitions have suppliers looking to inorganically build capabilities and create differentiation in the marketplace. The supplier landscape is highly fragmented with the top 20 suppliers accounting for about 30% market share.
- Caribbean Islands, Costa Rica, and Panama are potential options for hosting small-scale English language centers due to their availability of English skills and proximity to the United States.
- Canada hosts the largest number of contact center agents whereas India and the Philippines are offshoring leaders.
- Leading suppliers, including Teleperformance, Convergys, SITEL + ClientLogic, Teletech and NCO Customer Management, are aggressively expanding their global footprint.
For more information, see www.everestresearchinstitute.com
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Exam becomes mandatory
POUGHKEEPSIE, N.Y. – With interest growing globally in outsourcing professional certification, the International Association of Outsourcing Professionals (IAOP) has announced that an examination, which will test knowledge and expertise, will become mandatory to earn the Certified Outsourcing Professional designation, beginning in April.
The examination was developed in conjunction with the University College of Syracuse University. The examination will be available online. For more information, see www.outsourcingprofessional.org
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Web 2.0 adoption affects outsourcing
DALLAS – Adoption of Web 2.0 principles and practices will have a snowballing effect on partnering relationships, such as outsourcing, according to a white paper by the Everest Research Institute.
The move toward greater facilitation of collaboration and the increasing globalization of delivery of services will bring about significant changes to the outsourcing model. This paper discusses how to realize anticipated value in moving to a Web 2.0 framework for projects in an outsourcing relationship. For more information, see www.outsourcing-requests.com
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Outsourcing enhances business outcomes
STAMFORD, Conn. — More and more organizations turn to IT outsourcing (ITO) to enhance business outcomes instead of just to control or reduce costs, according to a survey by Gartner, Inc.
Fully 41 % of organizations that were currently outsourcing IT said they use ITO to enhance business outcomes and performance, according to the Gartner survey. Approximately 47% of organizations still identified controlling or reducing costs as the primary benefit expected from ITO. However, there is a shift taking place. In 2005, only 28% of respondents reported enhanced business outcomes and performance as the primary benefit of ITO.
In all major regions, buyers of ITO anticipate increasing their use of ITO in the coming 24 months. On a global basis, 88% of organizations that are currently outsourcing anticipate moderate or high levels of outsourcing compared with 67% in 2007. Over the next two years, 89% of North American organizations anticipate outsourcing at high or moderate levels, up from 67% in 2007. About 85% of Europe, the Middle East and Africa (EMEA) organizations and 90% of Asia/Pacific organizations expect to continue at the same level or increase their outsourcing during the next two years, up from 62% and 73% in 2007, respectively.
Both North America and Asia/Pacific respondents said data privacy/security was the top inhibitor to ITO, while EMEA organizations were more likely to be concerned about loss of control in outsourcing. For more information, see www.gartner.com
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Cutting IT costs
DALLAS – Managers spend countless hours deciding whether to keep help desk functions in house or to outsource. The first step, according to a white paper by the Everest Group is to analyze all direct and indirect costs.
To do so involves assessing costs in the following categories:
- Support staff costs;
- Hardware and software costs;
- Facility and third-party costs; and
- Support services costs.
Concerns around loss of control, knowledge, expertise, and flexibility often inhibit objective assessment of these costs, says the Everest Group. Collecting objective data is key. For more information and a case study, see www.outsourcing-requests.com
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Blog explores finance outsourcing
BOSTON – FAO Research, an independent research firm, has launched a blog dedicated to financial and accounting outsourcing.
Topics covered in the blog’s beta version have covered: globalization, moving up the value chain, riskiness of Latin America, and the effect of the M&A slowdown. Check out www.faoresearch.com
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UGL Unicco adds FM contracts
BOSTON – UGL Uniccosm, a subsidiary of United Group Limited (UGL), has added $140 million in revenue from new business and contract extensions in 2007 in support of financial services customers. In addition to the financial services sector, the company closed record-breaking business across its markets, signing significant contracts with commercial, educational, government, industrial, and public venue organizations.
New contracts cover a broad array of office facilities such as executive, administrative, and branch locations. UGL Unicco services include facilities operations and maintenance, custodial services, landscaping, and office services. For more information, see www.ugl-unicco.com
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