Showing posts with label outsourcing. Show all posts
Showing posts with label outsourcing. Show all posts

Wednesday, July 29, 2009

BT relocates call-centre jobs to the UK. Bringing Further Gloom for India

In a complete reversal of the normal outsourcing policy for some years now, BT has decided to relocate 2,000 call centre jobs, currently held in India to the UK.

This is seen as a wholly predictable cost cutting measure that will slash half of BT's India-based customer service operations.

Backlash hits India
India is facing further decline in its business of providing customer support and response centres as an outsourced operation, over the coming months. BT insisted that the move is entirely cost-based and is “not about customer service”.

Shareholder Questions
The decision was revealed during a shareholder question session at BT’s annual meeting. When one BT shareholder asked when the company would close its Indian call centres. Her question was met with an enthusiastic round of applause by other investors. Demonstrating a substantial rise in support for in-country and UK national providers.

Chief Executive Statement
Chief executive Ian Livingston then disclosed the decision. After the meeting a BT spokesperson said: “This is not about customer service, as the service in our operations around the globe is of very similar standards. One shareholder commented that they would have preferred that he had used the term 'a very similar high standard of service'.

Mr Livingston went on to say; “It is about the effective deployment of our resources.” BT currently has 11,000 customer-facing call centre staff in the UK.

What Colour is the Future?
Last year the telecoms giant, BT axed 15,000 jobs across the company, and plans to cut a further 15,000 posts this year, to meet shareholders expectations, after reporting a net loss of £83 million in the year to March 2009.

Tuesday, May 5, 2009

Executive Pandemic Preparation

With the H1N1 swine influenza spreading across the world, it's a good time to discuss and update your pandemic plan. If you do have a plan. If you don't have one, you are putting your organisation at great risk.

There are measures that can help organisations and that will guarantee the continuity of their operations but for organisations with outdated or without pandemic preparedness plans, the first step is for the executive management team to establish 'the policy'; guiding principles for the coming weeks and months which address duty of care responsibility and then to communicate this policy and those decisions, to the workforce.

There are also policies and protocols that can have a strong impact in countering a pandemic emergency.

Organisations should ask themselves the following ten questions:

1. Have you defined reliable information sources that you will monitor for situational awareness in the event of an influenza pandemic?

It is essential to ensure that the information sources you choose are reliable, appreciate nuances and bring a degree of expertise and analysis to these types of events. The information gathered from these sources will be critical for your decision-making process and you want to make good decisions based on the best possible knowledge available.

2. Has top management documented a "policy"? A set of guiding principles that outlines:
  • The commitments the firm will make to protect employees and ensure duty of care
  • The types of programs the firm will keep in place
  • The budget available for planning
  • The executive person responsible for implementing these programs
When considering guiding principles during a pandemic, there is a variety of options companies can take. It is important for companies to confirm their guiding principles early on, to control and guide the planning effort.

3. Does the firm have in place a robust Crisis Management & Communications program that will allow executives to make key decisions on a timely basis and communicate messages to both internal and external stakeholders?

Influenza pandemic is a prolonged event and will require management not only to assess and make decisions in response to changing conditions, but to also accurately and effectively communicate these decisions to all necessary parties. Pandemic crisis management requires a completely different perspective, analysis and action-plan than natural disaster crisis planning. The question in pandemic planning, is not how do we pick up the pieces; rather it is how do we live with this emerging situation over the course of the next 18 months?

4. Is there a Business Continuity program in place that documents key products and services that will receive prioritised attention during a time of reduced staff availability?

If only 50 percent of staff is in the workplace on a particular day, which business activities will be conducted and which will be deferred?

Traditional business continuity is based on putting people back to work after sustaining a loss to a building, equipment or other operational systems. Pandemic business continuity planning completely turns this concept on its ear; the building is intact, the systems are functioning but there is a shortage of people. In this scenario, you will have to establish priorities for your reduced workforce and you will have to consider what functions are not absolutely essential to your organization at that moment and defer these functions.

5. Has the firm implemented a robust employee health program that will guide safe workplace protocols, such as facility access, social distancing, and surface cleaning?

In the event of an influenza pandemic, the goal is preventing the virus from spreading. This prevention is applicable for public systems, such as trains and buses, to households and to businesses. Surface cleaning and social distancing both prove effective and can have a major impact. The conventional perspective is that people are universally susceptible to influenza pandemics and we must rely on these approaches to limit contagion.

6. Has the firm documented HR provisions that outline actions employees should take if they become ill and how to handle sick leave and family care issues?

Just as with any other company initiative, people need to know what to do. It sounds so simple, but if you don't provide clear instruction regarding sick leave, employees will show up to work sick and ask whether they should stay or go. You need to remove any uncertainty in the mind of the employee so that they can stay home and get better without risk of spreading the virus to other employees.

7. Are key strategies for remote connectivity of workers backed up by actual IT capabilities in terms of VPN bandwidth and hardware availability?

The 'go-to' solution for many companies during a pandemic is simply to have employees work from home. However, more often than not, there are real IT limitations to this strategy. You need to be realistic and ask whether your existing IT infrastructure can support your entire workforce working from home at once. I can tell you now that the answer will be a resounding 'No'. Business plans need to take into account how the IT systems work.

8. Has the firm prepared guidance for expatriate employees and mobile workers? Does the firm have the ability to re-create travel patterns for employees, to support investigation into risk exposure?

This goes back to ensuring that your sources of information are reliable and establishing your guiding principles. In normal circumstances, the need for travel policies is clear, but you have to determine whether you will restrict all non-essential travel for employees. When considering expatriate employees, you must decide what care you will offer them and at what point will remove them from their current location.

9. Has the firm discussed its pandemic preparedness efforts with key vendors, suppliers and other business partners?

Even the strongest in-house pandemic preparedness program can be rendered worthless if the company has a dependence on a third-party that is compromised. This is true not only for manufacturers, but also for professional services providers. Companies with an outsourced IT call centres or outsourced legal support, etc., could be left without critical business functions if their outsourced operations are compromised.

10. What is the firms position on the procurement and stockpiling of both pharmaceutical and non-pharmaceutical protective measures? If there is a formal program, who is responsible and are all key provisions up to date?

Stock piled Anti-viral treatments are receiving so much attention right now that it is almost tempting to mistake them for a pandemic preparedness program. They are not. You are advised to look closely at your guiding principles, to determine whether these treatments fit your needs and whether you will procure either or both protective measures. The decisions on both pharmaceutical and non-pharmaceutical protective measures will vary from firm to firm and will vary with circumstances.

Remember, a Business Continuity Plan (BCP) normally prepares an organisation for disasters that have a sudden onset but a limited scope, duration and geographic location. A pandemic outbreak by nature is unpredictable, so the plan must be much more flexible.

We know that pandemics are not limited by geographic location. Most pandemics come in waves that can last from four to six months and that absenteeism is the single most serious threat to businesses.

Most official guidelines recommend the following as a starting point:
  • Develop communication strategies as well as preventative and mitigating measures. These should include sourcing supplies to protect employees, pandemic monitoring, and employee education.
  • Have a documented strategy that deals with a pandemic outbreak in emerging stages (detection, regional outbreak, local outbreak, etc.)
  • Have a documented policy and strategy that includes the facilities, procedures, people and systems that are needed to keep your business up and running.
  • Don't just have a plan, test it and update it.
  • Monitor and review the plan regularly to keep it up to date.
  • Secure the services of a Pandemic BC expert and take head of good advice.
The current H1N1 swine flu is not thought to be the most virulent of pandemics, which is great news but it does give us a 'wake-up' call. Let's dust off those old plans and bring them up to date and don't forget the demand on scarce resources that will occur during a 'real' pandemic outbreak.

Monday, March 9, 2009

Indian outsourcing fears being burned

Indian outsourcing firms are turning down business out of fear of their customer companies going bankrupt and leaving them holding a bad debt.

As a result of the current economy and the rush to reduce costs, there is an upturn in companies sending work offshore to places like India. So you would think Indian offshore companies would be happy about the potential new business opportunities and be very aggressive about going after them. Unfortunately, that is not the case and the Indian companies are very aware of the fragility of the world economy. They do not wish to be the one's left holding the cheque.

Only a few Indian offshore companies are chasing these new deals because of this, according to Partha Iyengar, vice president and regional research director at Gartner India. In a Reuters story published March 3, Iyengar went on to say that "Indian firms need to focus on revamping their sales models to help generate cost savings and add value to the client's operations," but not everyone agrees with this reason for not chasing potential new business.

In a follow-up comment to the story, one Indian commentator brought up the concern that clients could go bankrupt by the time payment is expected, a very plausible and valid point. Although offshore outsourcing does provide some cost savings to client businesses, it doesn't guarantee they'll come out of the recession in one piece.

The Indians have proved themselves to be excellent and well respected business people over the centuries. Therefore, it seems like a sensible and justifiably cautious approach by the Indian outsourcing companies that they do put themselves in a vulnerable position that may get them dragged down with someone else's sinking ship.

Monday, March 2, 2009

Outsourcing Risks - 25 Most Dangerous cities

After an eventful year that saw terrorist attacks in Mumbai, kidnapping for profit in Mexico, and the unexpected meltdown of Satyam, one of India's biggest IT services firms, the corporate cries to get things done "better, faster, cheaper" and offshore, may begin to be drowned out by the more moderate mantra of today's outsourcing customer: "safer, more stable and definitely more secure."

Interruptions to business customers have upset the sense of security that made Indian offshore outsourcing an uncomplicated buying decision. Companies are putting on hold the offshore projects that were routine just a year ago, puting more effort into investigating and analysing alternatives that help mitigate unresolved risks.

Promising locations like South Africa, Columbia, Malaysia, Thailand and Mexico have done little in terms of government initiatives or social change to allay client fears about their safety, as an outsourcing destination. Some countries with more established IT export businesses e.g. the Philippines and Brazil, have progressed slower than expected.

India's "tier II" cities, once poised to take business away from the cities like Bangalore, do not have the infrastructure and social improvements necessary to compete. India's track record does not bode well for fast development. This making other locations such as Latin America and central and eastern Europe more appealing to corporate organisations.

A number of emerging offshore locations have made great strides in mitigating risks inherent to their countries, while still keeping their costs and overheads low, e.g. Poland, the Czech Republic, Chile, Egypt, etc.

The risk factors involved in offshore outsourcing e.g. terrorism, potential war, disaster, network breaks, environmental disregards, crime and epidemic disease, make contingency plans a greater necessity. The emerging trend currently, is for IT outsourcing customers to seek out solutions closer to home, nearer their own shores or in the same country, where potential problems can be more readily understood, predicted and better managed.

The 25 Riskiest Outsourcing Cities in the World

Rankings based on mean scores in ten areas of risk as reported by The Brown-Wilson Group's "2009: The Year of Outsourcing Dangerously"

  1. Bogota, Columbia
  2. Bangkok, Thailand
  3. Johannesburg, South Africa
  4. Kuala Lumpur, Malaysia
  5. Kingston, Jamaica
  6. Delhi/Noida/Gurgaon, India
  7. Manila/Cebu/Makita, Philippines
  8. Rio de Janeiro, Brazil
  9. Mumbai, India
  10. Jerusalem, Israel
  11. Curitiba, Brazil
  12. Dalian, China
  13. Juarez, Mexico
  14. Brasilia, Brazil
  15. Chandigarh, India
  16. Colombo, Sri Lanka
  17. Ho Chi Minh City, Vietnam
  18. Quezon City, Philippines
  19. Accra, Ghana
  20. Pune, India
  21. Chennai, India
  22. Hanoi, Vietnam
  23. Bangalore, India
  24. Hyderabad, India
  25. Kolkata, India

The Worst Three Cities for;

Corruption & Organized Crime

  1. Bogota, Colombia
  2. Juarez, Mexico
  3. Johannesburg, South Africa

Heightening Trans-national & Geopolitical Issues

  1. Delhi/Noida/Gurgaon, India
  2. Jerusalem, Israel
  3. Colombo, Sri Lanka

Unsecured or Unprotected Networks and Infrastructure

  1. Bogota, Colombia
  2. Bangkok, Thailand
  3. Kingston, Jamaica

Unstable Currency

  1. Bangkok, Thailand
  2. Bogota, Colombia
  3. Johannesburg, South Africa

Personal Crime Rate/Police-to-Citizen Ratio

  1. Bangkok, Thailand
  2. Johannesburg, South Africa
  3. Rio de Janeiro, Brazil

Environmental Waste & Pollution

  1. Bangalore, India
  2. Chandigarh, India
  3. Kuala Lumpur, Malaysia

High Terrorism/Insurrection Threat

  1. Mumbai, India
  2. Delhi/Noida/Gurgaon, India
  3. Jerusalem, Israel

Legal System Immaturity

  1. Bangkok, Thailand
  2. Bogota, Colombia
  3. Kingston, Jamaica

Weather/Climate Threats

  1. Kingston, Jamaica
  2. Manila/Cebu/ Makati, Philippines
  3. Bangkok, Thailand