BPO wants separate ministry
The business process outsourcing (BPO) industry seeks a creation of a separate ministry or department in the Indian government for a sharper sector-specific focus, says The Hindu Business Line.
"Between IT and BPO these are completely different businesses but they are being bunched together. The back-office, call centre or KPO industry is quite different in terms of demands, needs, attrition and manpower and it is unfair to club it with the IT industry," said Sam Chopra, president of Business Process Industry Association of India (BPIAI).
BPIAI has sought a separate business process ministry or alternately re-classification of the ministry to the services industry ministry with special telecom, BPO and IT departments.
Businesses want shorter duration
Enterprises are showing an increased preference for shorter-duration outsourcing deals with lower value, says Business Standard.
A new report by Datamonitor reveals that of the 1 605 contracts signed globally between January 2007 and January 2008, 41% were signed for three to five years and 36% spanned five to 10 years.
The report also noted that only five 10-year contracts were signed in January 2008. Of the 144 contracts signed in January 2008, 52% were signed for an average duration of three to five years, followed by contracts spanning five to 10 years.
Outsourcing networks emerge
Unlike popular social networking sites where people meet to foster new friendships or search for old ones, these are sites where businesses meet in search of work, says The Times of India.
Customers log in to outsource jobs, while individuals and businesses (read providers) bid for the work. Outsourcing 2.0 is being touted as the new wave of outsourcing.
It's different from traditional outsourcing where big MNCs outsource some of their processes to well known companies in India or other parts of the world to save costs.
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