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Indian Railway to Outsource Medical Services

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 16:20:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: India, Railways, Transportation

Indian Railway to Outsource Medical Services

6 Jul 2007

NAGPUR: After outsourcing cardiac healthcare services, the Central Railway Hospital here has mooted a proposal to outsource more multi-disciplinary and multispeciality services to the city’s top medical institutes.

However, a large section of railway employees dub the move as a step near to partial privatisation. Already, railways have privatised services like bedrolls, catering and cleanliness

Read the full report from here @ Times of India

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Indian Outsourcing Companies Beaten by Rupee, and in Home Market

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 15:41:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

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Indian Outsourcing Beaten by Rupee, and in Its Home Market

By Andy Mukherjee, Bloomberg, Jul 19, 2007

Indian software companies, which compete furiously with each other for global outsourcing deals, are now facing a common enemy in the rising rupee. A strengthening home currency is reducing the rupee value of their dollar revenue and earnings.

Although the day-to-day volatility in the exchange rate has abated since the end of April, the challenge of long-term competitiveness remains for Indian exporters.

Partha Iyengar, vice president at research firm Gartner Inc. in India, has a blueprint that Indian companies can use to mitigate cost pressures. According to him, "Their first task should be to walk away from simple code- writing and testing -- the ``$10-an-hour'' work...Replacing low-end tasks with better-paying work is an obvious route to boosting revenue per employee."

The best place to build those muscles, according to Iyengar, is in the domestic Indian market, in which local Indian software giants have shown little interest, but where the global giants have surprisingly won most of the major contracts: March 2004: IBM won a $750 million order from Bharti Tele-Ventures Ltd.; Around the same time, Accenture won a $ 150 million order from Dabur India Ltd., a local maker of shampoos and beverages. A 10-year, $150 million order from Bank of India, went to Hewlett-Packard. To stake a credible claim for, say, a $2 billion global outsourcing order, Indian companies must first show their ability to execute large projects at home, says Iyengar. And when India happens to be one of the fastest growing markets, it makes sense to focus on getting deals from Indian companies. Some of the growth industries that IT sector should focus on are: retail, transportation, hospitality, banking, insurance and telecommunications - with telecom and retail being real high-potential growth sectors for the next 5-10 years.

Read the full report from here @ Bloomberg

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Dutch Railways (NS) Outsources IT to Getronics, KPN, CSC

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 15:33:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: Railways, Netherlands, IT, Transportation

Dutch Railways (NS) Outsources IT to Getronics, KPN, CSC

25 Jul 2007

The Dutch Railways (NS) has signed an ICT outsourcing contract with Getronics PinkRoccade, KPN and CSC. KPN and Getronics will provide work station and data management....

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Indian Pharma Companies for Inorganic Route to Billion-dollar Club

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 15:17:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: Medicine & Healthcare, India

Indian Pharma Companies for Inorganic Route to Billion-dollar Club

Tinesh Bhasin, DNA India

MUMBAI: Indian pharma firms are now eyeing inorganic growth overseas as they inch towards the elite billion dollar club. They see acquisitions contributing 20-40% of revenues, in the process assisting them to to breach the billion dollar mark.

Companies such as Lupin are looking for a distribution company is US, and aims to achieve $1 billion in sales in two years. This target is difficult to achieve without any acquisitions.

Four many more domestic pharmaceutical companies, including Nicholas Piramal, Cadila, Aurobindo and Wockhardt, too, are marching towards the billion dollar club. Analysts feel that though achievable, these companies need acquisitions to breach that mark, says this report @ DNA India

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European Pharma Industry in Good Shape but Acquisitions Pose Risk - S&P

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 15:10:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: Medicine & Healthcare, Europe

European Pharma Industry in Good Shape but Acquisitions Pose Risk - S&P

20 Jul 2007

MUMBAI (Thomson Financial) - Most main European pharmaceutical companies are in good shape, but acquisitions continue to be the most important reason for a potential deterioration of a company's credit quality, S&P's Ratings Services said.

For example, S&P's placement of AstraZeneca PLC's ratings on negative watch was caused by the company's debt-financed acquisition of MedImmune.

In a report, the agency noted that first-quarter revenue growth of these companies continued to beat underlying global market growth, estimated at 6-7 pct.

Read the full report from here @ Forbes

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Chemical Major Henkel Outsourcing to Philippines, Announces Layoffs

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 14:30:00 +0000

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Henkel Announces Layoffs, Outsourcing to Philippines

MEGAN KING, Morning Journal Writer

06/27/2007

AVON Henkel Corporation will lay off about 20 employees at its Just Imagine Drive headquarters, and their jobs will be transferred to a Henkel facility in Manila, Philippines.

The jobs will be eliminated in accounts payable, accounts receivable and collections. The jobs will be phased out beginning in August, according to company spokeswoman...

Read the full report from here @ Morning Journal

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HCA's Accounts Receivable Unit Reaching Out to Other Hospitals

noreply@blogger.com (Ecacofonix) — Wed, 25 Jul 2007 14:21:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: Healthcare, Finance & Accounting

HCA's Accounts Receivable Unit Reaching Out to Other Hospitals

Company to add jobs in Louisville, USA

By Patrick Howington, The Courier-Journal

National Patient Account Services is branching out from its main role of collecting accounts for its parent company, hospital chain HCA...

The Louisville-based accounts-receivable management company has begun signing non-HCA hospitals as clients. Landing three contracts recently led the company to create 100 jobs, including at least 60 in Louisville.

Read the full report from here @ The Courier Journal

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SMBs and the Outsourcing Decision

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 16:39:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: IT, Finance & Accounting, USA

SMBs and the Outsourcing Decision

23 Jul 2007

Almost 60 percent of small companies' information technology is outsourced to third-party providers, according to a survey. IT functions most often outsourced by small businesses include virus protection and security, e-mail and messaging, accounting and payroll, and data storage and backup. However, some companies may be wary of giving an outsider access to sensitive information as it relates to customers, employees and financial information. In that regard, only 16 percent of companies with between 50 and 499 employees outsource technology security, according to AMI-Partners, a New York City consulting firm.

Read the full news report from here @ Ecommerce Times

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Offshore Outsourcing Beginning to Balance Out with Increasing Wages

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 16:06:00 +0000

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See also outsourcing updates for related categories: India, China, Ireland

Offshore Labor Outsourcing Beginning to Balance Out with Increasing Wages

Excerpts from a news item at Appleton Post Crescent

The latest outsourcing story is about the supply and cost of labor — and the shift of these areas from having cheap labor to not have such cheap labor because of a strong demand for workers and because of workers' ability to move to other job markets easily in the global economy.

For instance, workers in Slovakia are migrating to Ireland because of higher productivity and better working and tax conditions, and that's forcing employers in Slovakia to push up wages to attract skilled workers to companies like Kia Motors Corp., which had opened up plants there mainly because of the cheap labor.

The India story is something similar. Companies who moved software engineering jobs to Bangalore, India, a couple of years ago because of low wages are suddenly seeing the labor cost difference narrowing because of dramatic increases in salaries for Indian software engineers. As a result, many U.S. high-tech firms are starting to reverse the job outflow.

It appears that the New York Times columnist Tom Friedman, author of "The World Is Flat," was indeed correct in its prediction that countries will race to the top in productivity and wages, and not to the bottom. The cases of Slovakia and India are just a tiny sampling of that process working.

Mexico represents the exact opposite of Ireland - it appears to be a country obsessed with leftist principles, and the unsettled political climate is contributing mightily to Mexican entrepreneurs losing out to Chinese businesses in the competition to sell to the U.S.

Read the full news report from here @ Appleton Post Crescent

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Russian IT Industry Set to Don the Mantle of IT Outsourcing Major

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 15:57:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: Russia, IT

Russian IT Industry Set to Don the Mantle of IT Outsourcing Major

PALO ALTO, California, July 24 - The Russian information and communications technology (ICT) is going from strength to strength on the back of robust economic growth, greater political stability, expanding consumer base, and increasing foreign investments. With the Indian markets slowing, Russia has become a particularly strong contender as a provider of complex engineering IT outsourcing and solutions.
New Country Industry Forecasts from the Frost & Sullivan Economic Research and Analytics team addressing the Russian ICT Industry reveal that
particular opportunities exist in the offshore software development,
broadband technologies and equipment, managed network security, IP
telephony, packaged software, communication value-added services (VAS), 3G
networks, and digital broadcasting in fixed line telephony sectors of the
industry.

If you are interested in a virtual brochure, which provides
manufacturers, end users, and other industry participants with an overview
of the latest political, economic, and social analysis of the Russian ICT
Industry then send an e-mail to Danielle White, Corporate Communications,
ERA, at dwhite@frost.com with your full name, company name, title,
telephone number, e-mail address, city, state, and country. We will send
you the overview by e-mail upon receipt of the above information.

Russia has a strong advantage in offshore software development, which
is becoming the fastest growing sector in the IT industry. The country
plans to increase its IT outsourcing exports with the goal of becoming one
of the top three global outsourcing destinations by 2010. There exists a
strong scope for greater foreign investments in Russian ICT design and
development centers.

Broadband Internet is expanding rapidly due to the rising connectivity
of Russian towns, in line with the Government's E-Russia policy focus. The
increased focus on E-Governance and ICT diffusion at all levels of
schooling is boosting the uptake of ICT goods and services by government
agencies and schools. Meanwhile, new special economic zones (SEZs),
techno-parks, and provision of venture capital are enhancing opportunities
for small businesses in the Russian ICT industry.

As corporate Russia increasingly switches from closed networks to IP
networks to increase efficiency, markets for enterprise resource planning
(ERP) as well as managed network security and IP virtual private networks
(VPNs) have received a shot in the arm. IP telephony is catching on in the
mobile telephony segment and this could be the first step toward full-scale
adoption of next-generation networks based on packet telephony.

"Communication VAS, particularly ring tones and logos, media projects,
and information and entertainment in the mobile content market, is the
fastest growing segment of telecommunication services," says Farheen Pasha,
Team Leader, ICT, Frost & Sullivan's ERA group. "Currently, less than 50.0
percent of the telephone lines in Russia are digital; however, the
government aims to completely switch from analog to digital mode by 2015."

Although the Russian Government had historically passed over the
interests of the ICT industry in favor of others such as oil and gas, it
has steadily increased interest in the IT industry. It is also actively
involved in developing the telecommunications infrastructure and is a
strong participant as well as regulator in this field.

Russia's vast human resources and low labor costs hold it in good stead
in the ICT industry, while its competent education system provides its
people with high levels of skills, excellent training, as well as intensive
scientific and engineering expertise. However, a substandard process
quality and a weak legal system and intellectual property right (IPR)
enforcement impair it. This scenario is set to change, with the present
government placing unprecedented focus on the development of the IT
industry.

The Government is sparing no efforts to upgrade the telecommunications
infrastructure and services throughout Russia. It has deployed a supportive
framework for the development of the ICT industry to make it competitive in
both domestic and international markets. It hopes to improve information
transparency and enhance the efficiency of the public as well as private
sectors.

The Government is also committed to raising the levels of penetration,
diffusion, and awareness of ICT goods and services in Russia. Moreover, a
series of high-profile industry reports changed the general perception that
the ICT infrastructure in Russia is inadequate by publishing positive
articles.

Russia has been the biggest spender on IT among the central and eastern
European (CEE) countries and its spending has been higher than the global
average since 2002. This is mainly due to the growing affluence of the
Russian population and the global awareness of its enterprises. This
industry's growth is high and stable, considering it witnessed double-digit
growth for the last five years and is poised for further growth until 2010,
though consumption trends in telecommunication vary across regions as well
as segments.

"The United States and the European Union (EU) recognized Russia as a
market economy in 2002," notes Pasha. "With a gross domestic product (GDP)
of more than US$814.76 billion and an economic growth rate of 6.7 percent
in 2006, Russia is poised for further strong growth in the future."

The three-part series on Russian ICT Industry is part of the Frost &
Sullivan Energy GPS subscription services. The Political and Policy
Analysis of the Russian ICT Industry provides a detailed coverage of the
political establishment, general economic and industry specific policies,
and their impact on the industry. The Economic Analysis provides an
overview of the market size, a discussion of drivers as well as restraints,
and an analysis of market structure in the context of the overall Russian
economy. The Social, Infrastructure, and Labor Analysis studies the labor
market dynamics, infrastructure conditions, and consumption profile.
Analyst interviews and briefings are available to the press.

Frost & Sullivan's Country Industry Forecast research provides a unique
country-specific perspective on various industries. The valuable
Country-Industry Linkage includes in-depth analyses and forecasts.

The Frost &Sullivan Economic Research and Analytics team provides
research focused on timely and critical sociometric, econometric,
demographic, political, and regulatory information for specific countries
by industry. It produces research services, economic impact articles, and
economic updates that discuss relevant and critical economic trends.

Frost & Sullivan, a global growth consulting company, has been
partnering with clients to support the development of innovative strategies
for more than 40 years. The company's industry expertise integrates growth
consulting, growth partnership services, and corporate management training
to identify and develop opportunities. Frost & Sullivan serves an extensive
clientele that includes Global 1000 companies, emerging companies, and the
investment community by providing comprehensive industry coverage that
reflects a unique global perspective and combines ongoing analysis of
markets, technologies, econometrics, and demographics. For more
information, visit http://www.frost.com.

Contact:

Danielle White
Corporate Communications - Global
P: +1-210-247-2403
dwhite[at]frost[dot]com

Sarah Lourdes
Corporate Communications - Southeast Asia & ANZ
P: +60-3-6204-5878
E: sarah[dot]lourdes[at]frost[dot]com

Bo Zhang
Corporate Communications - China
P: +86-21-5407-5780 ext 8611
E: bo[dot]zhang[at]frost[dot]com
http://www.frost.com

SOURCE Frost & Sullivan

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Satyam Eyes Engineering Services Outsourcing Deals

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 15:42:00 +0000

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Satyam Eyes Engineering Services Outsourcing Deals

Jul 23, 2007

Satyam Computer Services Ltd. is eyeing more outsourcing deals in higher margin engineering designs to offset the impact of a stronger rupee on exports, an official said on Monday.

Satyam is negotiating eight deals worth $20 million to $25 million each in engineering, T.S.K. Murthy, head of integrated engineering solutions at the Hyderabad-based firm told reporters.

Aerospace and automobile companies are stepping up outsourcing of complex engineering works like designing product components...The global offshore engineering spend is expected to grow to $150-$225 billion by 2020 and India, with its talent pool and experience in engineering services, could pick up 25 percent of that...

Read the full report from here @ Reuters

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HarrisBPO Launches Digitisation, Document Management, Scanning, Archiving Outsourcing Service

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 15:09:00 +0000

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HarrisBPO Launches New Digitisation, Document Management, Scanning and Archiving Outsourcing Service

July 24, 2007, Press release

Slough, England - HarrisBPO is pleased to launch its new document management and digitisation outsourcing service www.harrisbpo.com/document_management.htm. Including scanning, archiving, key-word tagging and document management, this cost-effective service is priced to fit the needs of the small-medium sized market.

Electronic storage of company documents is one of the easiest ways to improve the operating efficiency of an organisation. Digital media makes documents accessible, secure, searchable and storable. HarrisBPO can digitise all types of media from paper documents, magazines and books, to microfilm, microfiche, transparencies and negatives.

Jeb Surresh, Executive Director of HarrisBPO, said: “We are pleased to save our clients time and money by allowing staff to focus on improving the business instead of doing process jobs.” He added, "Our outsourcing model is based on understanding our clients’ needs, and building a strong relationship with regular, clear communication.”

The new document management service complements HarrisBPO’s well-established bookkeeping and accountancy functions outsourcing service www.harrisbpo.com/accountancy_services.htm.

About HarrisBPO

HarrisBPO are experts in business process outsourcing specialising in bookkeeping, accountancy functions, scanning, digitisation and document management. HarrisBPO is the trading name of Integrated Hi-Tech Limited. Information is available at www.harrisbpo.com.

Contacts
HarrisBPO
Kay Woods, +44 (0)1753 821050
Marketing Manager
http://www.harrisbpo.com/benefits.htm

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Rivals Vie with India for Title as Top Outsourcing Hub

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 15:01:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

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Rivals Vie with India for Title as Top Outsourcing Hub

24-Jul-07, Brunei Times

India, the back-office outsourcing leader, is expected to face stiff competition from countries like China, Malaysia and Singapore even as the global outsourcing industry is pegged to become a US$1,430 billion market by end-2009.

A survey conducted by global consultancy firm Frost & Sullivan has ranked India as the top destination for shared services and outsourcing across various verticals, followed by China, Ireland, Singapore, Malaysia, Mexico, Czech Republic, Poland, the Philippines and Canada, Press Trust of India reported.

Read more from this report @ Brunei Times

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Telecom Cos (Telcos) Drive Asian Outsourcing Market

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 14:56:00 +0000

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Telecom Cos (Telcos) Drive Asian Outsourcing Market

China Mobile leads the way

Simon Burns in Taipei, vnunet.com 23 Jul 2007

Companies in Asia-Pacific signed more than $5.4bn worth of business process outsourcing deals in the first half of the year, according to a recent survey.

The figure represented a 100 per cent increase compared to the same period last year...

Read the full report from here @ VNU Net

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Analysis of Outsourcing Trends in Law Firms in USA

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 14:49:00 +0000

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Analysis of Outsourcing Trends in Law Firms in USA

Press release

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c63593) has announced the addition of “2006 Law Firm Outsourcing Survey” to their offering.

This report examines the outsourcing of operational and administrative functions of law firms in areas including human resources, document production and management, IT support, and finances.

The 2006 Outsourcing Survey, conducted between 10/24/05 and 11/29/05, is the first of its kind. The purpose of the survey was to examine outsourcing trends in U.S. law firms. It was designed to examine the outsourcing of operational and administrative functions of law firms—work related to human resources, document production and management, and IT support and finances; it does not explore the outsourcing of legal work, a topic which raises several unique issues that we believe should be explored in a separate survey.

Participants

Of the 365 U.S. firms invited to participate, 59 responded, representing a solid 16% response rate. The respondents themselves were a mix of law firm executive directors, managing partners and CFOs, and the responding firms came from a very wide range of U.S. cities, with a slightly heavier concentration from the Midwest. Firm sizes ranged from 25 to 2500 lawyers broken down into four groups as described in the chart on the left. For purposes of this report, the groups of 25 to 80 lawyers and 181 to 324 lawyers are defined as “Smaller Firms,” and those with 325 to 699 lawyers and 700+ lawyers are defined as Larger Firms.”

Areas covered:

- Demographics of Survey Participants

- Key Findings

- Variances Based on Function and Service

- Document Production and Records Management

- Administrative Services

- IT Functions

- Finance Function

- Vendors Used

Companies mentioned:

- ADP

- American Express

- American Express One

- AT&T

- Bowne (Williams Lea)

- Century Payroll

- Ceridian

- DTI

- eGroup

- EXENET LLC

- Five Star Legal

- FLIK

- Food For Thought

- Guarantee Express

- Guest Services

- IKON

- IntelliTeach

- Lawyers Travel

- Lehman-Smith McLesh

- Management Alternatives

- Mark G. Anderson Company

- MCS

- Merrill

- Move Solutions

- Navigant Travel

- Newport

- Oce

- OCE/Archer

- Office Tiger

- PBMS

- Pitney Bowes

- Pomeroy IT Solutions

- Reliable Copy

- Site Scan

- Sodexho

- Synergy

- Tek systems

- Total Document Solutions

- Uniscribe

- VC3

- VertuIT

- Williams Lea

- Wise Consulting

- World Travel

- Xerox

For more information visit http://www.researchandmarkets.com/reports/c63593

Contacts
Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press[at]researchandmarkets[dot]com (remove [], at and dot to get the email address)

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Reserve Bank of India (RBI) Staff Alarmed Over Outsourcing

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 14:42:00 +0000

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See also outsourcing updates for related categories: Banking

Reserve Bank of India (RBI) Staff Alarmed Over Outsourcing

BS Reporter / Mumbai/ Ahmedabad July 24, 2007

The All India Reserve Bank Employees Association (AIRBEA) held a meeting to discuss Reserve Bank of India’s (RBI) policies and its decision to outsource important functions. AIRBEA expressed concern over the plan to hand over the sensitive job of inspection and audit of bank branches to chartered accountant firms.

RBI is the regulator of the banking system in India. The supervision of banks (inspection and auditing of bank branches) is reported to be handed over to private chartered accountant firms. There are 50,000 branches of commercial banks to be supervised by RBI.

Another important function the RBI is reported to be considering outsourcing to a private company called ‘National Payments Corporation of India’. A bill to this effect is being placed before the Parliament.

Read the full report from here @ Business Standard

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Unisys Adds BT Network Monitoring, Management Services to Outsourcing Portfolio

noreply@blogger.com (Ecacofonix) — Tue, 24 Jul 2007 14:33:00 +0000

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Unisys Adds BT Network Monitoring and Management Services to Expand Outsourcing Portfolio

24 July 2007

Unisys Corporation announced that it has signed an agreement with BT to provide network monitoring and management services as part of outsourcing engagements for Unisys clients worldwide.

The agreement makes BT network monitoring and management services a key part of Unisys IT outsourcing solutions. Unisys will implement these BT network services in its portfolio of managed network solutions for its global client base.

Unisys and BT also intend to collaborate on innovative business solutions for next-generation communications capabilities – especially in converged local area network/wide area networking (LAN/WAN), which can substantially enhance enterprises’ market competitiveness and improve productivity.

The agreement is part of Unisys ongoing efforts to bolster its leadership as a comprehensive provider of IT outsourcing and management services. Unisys also intends to increase operational efficiencies and enhance margins by teaming with partners that can help the company enhance customer service while lowering costs.

Unisys will integrate BT’s network monitoring support into the Unisys managed services offering using the ITIL framework already in place. Unisys will continue to maintain operational support and customer relationships for transparent continuity of service to clients.

Unisys Outsourcing solutions deliver the visibility needed to achieve the transparency and predictability required for secure business operations. Our solutions employ the Unisys 3D Visible Enterprise (3D-VE) approach, enabling a client to see and then act on cause-effect relationships among business strategy, processes and IT requirements throughout the entire enterprise.

For more:

Jennifer Kuhl, Peppercom, +1-212-931-6111

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Airline Outsourcing News Links & News Snippets

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 15:38:00 +0000

BlogOut provides regular, global outsourcing updates. See BlogOut Directory for the complete list of categories

See also outsourcing updates for related categories: Airlines

Airline Outsourcing News Links & News Snippets

EDS to Buy Sabre Airline Outsourcing Business - total cost about 770 US $ million - Mar 2001

CSC Wins Airline Outsourcing Deal - Scandinavian airline and travel company SAS Group has signed up Computer Sciences for a five-year, $1.5bin outsourcing deal. CSC will provide SAS with IT consulting, systems integration, application development and maintenance services, as wells as provide services for SAS's booking and ticket reservation systems, ticket-free travel technologies, self-service check-in systems, flight maintenance systems and cargo control systems. SAS Group will turn over the operation of its IT infrastructure under a deal worth more than $1 billion - Dec 2003

Machinists to fight ruling on airline outsourcing US AIRWAYS The International Association of Machinists said Thursday it will ask a 13-judge appeals court to rehear a case involving US Airways outsourcing, after a three-judge panel lifted an injunction that prohibited the airline from contracting out maintenance - Feb 2004

Are Airlines Outsourcing Safety? Eyewitness News Investigation - a critical report by Steve Daniels (05/09/05 ) - An Eyewitness News investigation is uncovering a new trend in outsourcing -- the outsourcing of airline maintenance. Some airlines have been outsourcing nearly 80 percent of their maintenance. It's a way to save money, but we've discovered disturbing safety issues at one North Carolina maintenance company. Full report here @ ABC 11 TV - Sep 2005

Airline's outsourcing decision pending - The dispute over US Airways' outsourcing of Airbus jet overhauls could be decided by an arbitration panel as early as next month. The International Association of Machinists challenged US Airways in court last October when the carrier started sending its Airbus jets to an Alabama maintenance contractor for their five-year, heavy maintenance checks - July, 2004

Airline Fights Outsourcing Trend - Eyewitness News Investigation - Sep 2005 - Outsourcing maintenance saves airlines money, but airlines insist they are following FAA regulations and the practice is perfectly safe. In 2004, the government reported that U.S. airlines outsource 51 percent of their maintenance. But Eyewitness News has discovered that some airlines outsource much more: * Southwest says it outsources 75 percent of its maintenance, * Delta just announced that it's outsourcing major overhauls, called "heavy maintenance," for nearly its entire fleet, * United outsources much of its heavy maintenance at TIMCO, which is headquartered in Greensboro, * America West outsources 100 percent of its heavy maintenance - full report here - Sep 2005

Delta Airlines's outsourcing contract with AT&T's Global Information Solutions unit - To take on a rapidly changing airline business and sluggish mainframe performance, Delta Air Lines recently joined with AT&T Global Information Solutions, Dayton, Ohio, to provide information technology services for the Atlanta-based airline. The move represents a conversion to enterprise-wide, client/server technology after 25 years as a mainframe-based company, said John King, Delta's vice president of information technology. The deal calls for Delta to buy an estimated $2.8 billion in technology products and services - Oct 1994

Electronic Data Systems (EDS) to Buy Piece of Swissair Operation - Electronic Data Systems Corp. said Monday that it plans to buy the technical-outsourcing business of Atraxis, the ticketing unit of Swissair Group - Oct 2001

Management team acquires airline outsourcing business - Together with the management, NatWest Development Capital (NWDC) has bought Heathrow-based Select Prospects Limited, a leader in revenue accounting and recovery outsourcing services to international airlines in a deal worth £4m. Select, formed in 1992, employs over 150 people and its customers include many of the world's largest flag carriers including British Airways, South African Airways, Swiss Air, Air New Zealand, KLM and American Airlines - Apr 2001

Airlines Tighten the Screws on IT Costs - With industry spending on IT ranging from $8 billion to $10 billion annually, that should mean big bucks for aviation outsourcers such as IBM (IBM ), Accenture (ACN ), Unisys (UIS ), and Electronic Data Systems (EDS ). Unisys already manages the IT infrastructure for cargo operations at Delta Airlines (DAL ), Air Canada, and Northwest Airlines (NWAC ), and EDS runs most of US Airways' IT systems. PLACES TO CUT. Labor contracts and the buying and leasing of planes mean the majority of airlines' expenses are relatively fixed, so all other costs have come under intense scrutiny. Moving IT to an outsourcer has been a favorite..Savings from outsourcing can range from 10% to 20%, according to outsourcers and consultants. Further, the airline industry has generally lagged behind others in developing standardized software packages. That has necessitated expensive custom programming...as much as 80% of the business software run by airlines is custom-developed. Costly custom work and less expensive but still difficult system-integration projects are catching the eye of top execs....Aug 2002, full report here @ Business Week

Airlines Outsource Upkeep - Carriers Try to Cut Costs; Unions Raise Safety Concerns - August, 2005 - The mechanics' strike at Northwest Airlines Corp. has refocused attention on the airline industry's ongoing push to reduce costs by outsourcing maintenance jobs. JetBlue Airways and America West Airlines have their planes serviced in El Salvador. Northwest and Continental Airlines use repair stations in Hong Kong and Singapore. Delta Air Lines' planes will soon be serviced by a division of Air Canada. Many other carriers send maintenance work to third parties in the United States, mainly in the South, where labor rates are lower Aug 2005 - full report here Wash Post

Northwest to outsource jobs if IAM rejects deal; Saying the contract saves thousands of jobs the airline would otherwise farm out, the union recommended ratification. If Northwest Airlines ground workers reject an agreement negotiated Friday by their union, the airline intends to eliminate 2,890 equipment service jobs and outsource that work. If the union members ratify the deal, the job losses for equipment service employees, who handle bags and push aircraft back from gates, will be held to 492 positions.

Bankrupt United Airlines to outsource telephone call centre / reservation jobs to India - United Airlines will start outsourcing telephone reservation jobs to India as the airline continues to find areas where it can trim costs. The move to add 650 jobs in India will help the airline reign in costs for retraining in an area known for high employee turnover - Oct 2004

Airline Sells Business Outsourcing Arm to Warburg Pincus - Warburg Pincus, one of the largest US private equity firms, has bought a majority stake in World Network Services, British Airways' business services outsourcing arm. The private equity firm said it bought 70 per cent of WNS. BA will retain the rest. WNS is in the business of assuming back office processes for its clients, which include airlines (including BA), pharmaceutical companies and insurance businesses. BA is WNS's biggest source of revenues. WNS has 1,500 employees in London, Bombay and Pune, India. Apr 04, 2002

Global repairs: Domestic airlines outsource and in-source maintenance work all over world - Northwest Airlines is closing two hangars at Minneapolis-St. Paul International Airport because the standard work of overhauling the airline's 747 fleet has moved to Asia. Air China, meanwhile, is sending its planes to San Francisco for high-tech engine work by United Airlines mechanics. U.S. carriers have outsourced thousands of maintenance jobs, but at the same time, some also have stepped up efforts to bring maintenance work into their shops. The major carriers are "in-sourcing" work from domestic low-cost carriers that don't have their own maintenance crews and from airlines based in China, South Korea, Canada and elsewhere - Jun 2004 - full report from Post Gazette

The Sabre Group Signs 10-Year IT Outsourcing Agreement With Aerolineas Argentinas - The SABRE Group (NYSE: TSG) today announced that it has signed a 10-year, $120 million agreement with Aerolineas Argentinas that calls for the airline to outsource the management and provision of its information technology functions to The SABRE Group. The contract also calls for The SABRE Group to provide specialized information technology services to Aerolineas Argentina's affiliate, Austral Lineas Aereas-Cielos Del Sur - Nov 1998, PR Newswire

Delta to outsource more jet maintenance - In a new move to slash costs, Delta Air Lines said Tuesday that it will turn over more of its airplane maintenance to lower-cost outside contractors. The outsourcing announcement was the latest sign of financial distress for Atlanta-based Delta, which has lost $8.5 billion since 2001. It said Tuesday that outsourcing scheduled maintenance on 344 jetliners will save $240 million over five years. The airline announced earlier it is cutting as many as 2,000 mechanic jobs...full report @ USA Today Mar 2005

Delta to employ college students as service agents - Delta Air Lines is teaming up with Clayton State College to hire 150 students part-time as customer service agents. Starting next month, the airline will lease space at the student center, where students will answer phones for four hours a day, taking the 5,000 to 10,000 customer questions that are unrelated to Delta ticket sales. They also will handle teletype requests, which are messages from other airlines that require time-consuming manual work - Dec 1994

AI, IA may outsource non-core functions - Since outsourcing has enabled many airlines to reduce costs and keep the number of direct manpower on its rolls down to the minimum, Air India and Indian Airlines are also expected to explore outsourcing of non-core airline functions - Sep 2002

Case study: British Airways Outsourcing to Amadeus - The airline industry is facing the worst crisis in its history and cash-strapped carriers are being forced to sacrifice many sacred cows. Some have scrapped free meals and others have cut back on blankets. British Airways has gone much further and turned the axe on its IT department in a bid to find £80m of cost savings over two years. In 2000, BA struck a ground-breaking outsourcing deal with Amadeus, the Madrid-based airline computerised reservation system operator, which is now running BA's core IT systems. BA chose Amadeus as its outsourcing partner, but not without some misgivings, not least because the Amadeus data centre is in Munich, 2,500km away from BA's base in Heathrow. Nevertheless, the 10-year contract, which started in 2001, has so far gone without a major hitch and has confirmed BA's faith in outsourcing - May 2003. Full report here @ FT

Amadeus expands tech offering to airlines, allowing them to outsource even more non-core apps - Amadeus has announced the implementation of its Central Ticketing solution for airlines, providing state-of-the-art technology for ticket printing and control, as well as internal automatic sales and accounting reports. Amadeus's Central Ticketing solution allows airlines to outsource their ticketing - June 1999

Korean Airlines & IBM Global Services Sign Outsourcing Agreement - Korean Airlines and IBM Global Services have signed a ten-year, US$120m outsourcing contract - Dec 1998

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DAALLO Airlines Outsources Accounting to Kale Consultants, India

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 14:59:00 +0000

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DAALLO Airlines Outsources Accounting to Kale Consultants, India

25 Jun 2007, Source : Moneycontrol.com

DAALLO Airlines, an airline operating between Middle East, Africa and Europe has selected Kale Consultants Ltd. for providing passenger revenue accounting and cargo revenue accounting on an outsourced basis. Kale will provide revenue accounting processing services to Daallo from its Managed Process Services centre in Mumbai, India.

Kale will provide passenger & cargo revenue accounting services including the processing of sales and uplifts, claims to credit card companies and to other airlines for interline coupons, declaration of revenue with comprehensive account postings for the general ledger, management of deals, and a decision support business intelligence system.

Read the full report from here @ Moneycontrol India

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Flights Delayed as British Airways Outsources Airport Support Jobs

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 14:51:00 +0000

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Flights Delayed as British Airways Outsources Airport Support Jobs

Alastair Jamieson @ Scotsman - 21 Jun 2007

Many British Airways passengers faced delays and disruption yesterday after BA outsourced 430 ground jobs to a separate company.

Dozens of flights between Edinburgh and London were delayed by between 15 minutes and three hours. Yesterday was the first day that BA ground operations at Edinburgh - including check-in, baggage-handling, ticketing and dispatch of aircraft - were provided by the contract firm Aviance.

Read the full report from here @ The Scotsman
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Unions Call for Inquiry into Air New Zealand Outsourcing

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 14:44:00 +0000

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Unions Call for Inquiry into Air New Zealand

13 June 2007 @ Scoop, NZ

The Engineering, Printing and Manufacturing Union and the Aviation and Marine Engineers Association will present a petition to Parliament today asking for a select committee inquiry into Air New Zealand's behaviour toward staff during recent outsourcing disputes.

The petition calls for Parliament to investigate its use of outsourcing and other sharp employment practices. EPMU says an inquiry is in the public interest in terms of transparency.

Read the full report from here @ Scoop, NZ

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Top 10 Global Airframe MRO Providers

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 14:34:00 +0000

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Top 10 Airframe MRO Providers, according to this Aviation Week story:

2006 Total Airframe Man-Hours By Corporate Entities (subsidiaries included if they are majority owned/controlled)

1. Singapore Technologies Aerospace* 8.10 MILLION

2. Lufthansa Technik** 6.80 MILLION

3. Air France Industries/KLM E&M 6.40 MILLION

4. HAECO/TAECO/STAECO 5.88 MILLION

5. TIMCO Aviation Services 3.90 MILLION

6. Bedek Aircraft/Empire Aero 3.30 MILLION

6. VEM/TAP M&E 3.30 MILLION

8. Goodrich Aviation Technical Services 2.70 MILLION

9. ACTS 2.40 MILLION

10. AAR Aircraft Services 1.98 MILLION

Almost In the Top 10

Ameco Beijing 1.78 million

Gulf Aircraft Maintenance Co. 1.70 million

Sabena technics 1.60 million

SR Technics 1.59 million

*Includes six facilities globally **LHT AG and LHT Philippines only

2006 Third-Party Airframe Man-Hours By Corporate Entities (subsidiaries included if they are majority owned; excludes sister airline work)

1. Singapore Technologies Aerospace* 8.10 MILLION

2. HAECO/TAECO/STAECO 4.47 MILLION

3. Lufthansa Technik** 4.00 MILLION

4. TIMCO Aviation Services 3.90 MILLION

5. Bedek Aircraft/Empire Aero Center 3.30 MILLION

6. VEM/TAP M&E 3.07 MILLION

7. Goodrich Aviation Technical Services 2.70 MILLION

8. ACTS 2.40 MILLION

9. AAR Aircraft Services 1.98 MILLION

10. Air France Industries/KLM E&M 1.92 MILLION

Almost In the Top 10

Gulf Aircraft Maintenance Co. 1.70 million

Sabena technics 1.60 million

SR Technics 1.59 million

Guangzhou Aircraft Maintenance Engineering Co. 1.28 million

Pemco World Air Services 1.10 million

*Includes six facilities globally **LHT AG and LHT Philippines only

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No-frills Airlines in India See Savings by Outsourcing Maintenance

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 14:17:00 +0000

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No-frills Airlines in India See 25% Savings by Outsourcing Maintenance

Sudhir Chowdhary - New Delhi @ Express Travel World

Low-cost carriers in the country like Kingfisher Airlines and SpiceJet are increasingly outsourcing their aircraft maintenance and overhauling work to keep operating expenses down. They are looking to save almost 20-25 per cent in costs by contracting such work to players such as Lufthansa, KLM, SAS and Singapore Airlines.

Public sector carriers Indian and Air-India, who have rich expertise in aircraft maintenance with a combined manpower exceeding 9,000, are also eyeing a major pie of the contract maintenance and overhauling business. Indian recently bagged a Rs 120 crore contract from Kingfisher Airlines for maintenance work and for flying on non-viable routes.

Full news report from here

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Outsourced Airline Repairs Raise Concerns in the US

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 13:41:00 +0000

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Outsourced Airline Repairs Raise Concerns in the US

The U.S. Congress is examining a recent increase in the outsourcing of airline repairs and maintenance and federal inspectors' ability to monitor them.

The amount of airline repairs and maintenance outsourced to private and foreign companies by American airlines increased from 37 percent in 1996 to the current 64 percent, according to a report. A Transportation Department official said work outsourced to foreign companies is a significant amount.

Critics of the new repair structure said the work leaves the airliners exposed to possible terrorists and is not subject to the same regulations and inspections that in-house repairs are.

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Spirit Airlines to Outsource Call Center, Close Its Own

noreply@blogger.com (Ecacofonix) — Wed, 11 Jul 2007 13:32:00 +0000

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Spirit Airlines to Outsource Call Center, Close Its Own

Spirit Airlines plans to close its only reservations center, located in Clinton Township, eliminating 131 jobs. The call centre will close end of Aug 2007.

The discount airline is outsourcing the call center work to PRC of Plantation, Fla. She said the move will allow Spirit to increase its efficiency and should result in better customer service.

Spirit, based in Miramar, Fla., employs more than 2,200 people.

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