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Advice You - Big IT Wants Call Center Capacity
Chairman
Chalr? Recruitment Outsourcing
A couple of months ago, IBM announced that it was purchasing a 9,000-person call center named Daksh with operations in India and the Philippines. The acquisition is interesting for two reasons. First, IBM previously had no significant call center capacity and with this one purchase has beco
Chalr? Recruitment Outsourcing
A couple of months ago, IBM announced that it was purchasing a 9,000-person call center named Daksh with operations in India and the Philippines. The acquisition is interesting for two reasons. First, IBM previously had no significant call center capacity and with this one purchase has beco
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
me a major player in the booming offshore industry. Second, the price IBM paid was considered by most people to be irrationally exuberant. According to investment banking firm Avendus, the price was roughly 15 times last year's earnings (or three times annual revenues). Clearly, IBM felt that owning (rather than just leasing) call center capacity wa
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
s an absolute necessity for its long-term business strategy.
Earlier in the year, Accenture hired a senior call center executive away from the contact center company ICT Group. When I spoke to this executive about his new job, he said he was hired to be "responsible for the world's single largest call center offshore initiative," which involves 6,0
Earlier in the year, Accenture hired a senior call center executive away from the contact center company ICT Group. When I spoke to this executive about his new job, he said he was hired to be "responsible for the world's single largest call center offshore initiative," which involves 6,0
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
0 call center seats. Apparently, Accenture is moving into the call center business in a big way as well.
Traveling in the opposite direction, the large call centers are moving into the IT services business, although in a somewhat less grandiose manner. Sykes is a worldwide contact center organization with many service lines including managing tech
Traveling in the opposite direction, the large call centers are moving into the IT services business, although in a somewhat less grandiose manner. Sykes is a worldwide contact center organization with many service lines including managing tech
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
support for clients like Microsoft and Intel. It has done such good IT support work that it has moved into full-blown IT outsourcing. In the Philippines, Sykes is hiring software developers by the hundreds to do software programming work for its blue-chip clients.
Convergys, another large contact center organization, has hired ICT heavyweights to o
Convergys, another large contact center organization, has hired ICT heavyweights to o
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ersee the company's Information Management Group. Its objective is to focus on developing the company's "higher-value service offerings" in the IT and business process outsourcing (BPO) spheres.
Meeting in the Middle
Another area of budding togetherness for IT and contact center services, BPO is considered the mother lode of outsourcing because it
Meeting in the Middle
Another area of budding togetherness for IT and contact center services, BPO is considered the mother lode of outsourcing because it
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
encompasses everything that can be imagined as being outsourced. It is a very big field.
A quick look at the Accenture Web site makes that company's direction clear. It now provides 18 categories of services. Some of the new BPO subsidiaries that have been incorporated over just the past few years are Accenture Finance Solutions, Accenture HR Serv
A quick look at the Accenture Web site makes that company's direction clear. It now provides 18 categories of services. Some of the new BPO subsidiaries that have been incorporated over just the past few years are Accenture Finance Solutions, Accenture HR Serv
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ices, Accenture Learning, Accenture Procurement Solutions, Accenture Business Services for Utilities, Accenture eDemocracy Services and Navitaire -- a bewildering number of extensions to the core Accenture brand.
IBM's approach is to keep all BPO work under a single company umbrella, but its BPO focus in the booming Asia-Pacific region is obvious b
IBM's approach is to keep all BPO work under a single company umbrella, but its BPO focus in the booming Asia-Pacific region is obvious b
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
its hiring practices. As one example, recent full-page employment advertisements in the Philippines are being used to hire boatloads of people required for IBM's outsourcing operations. The advertisements emphasize the need for "previous experience in the areas of customer care, human resources, employee and payroll services." Requirements for IT s
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
kills are stated farther down on the page, giving the appearance of being an afterthought.
On the call center side, Convergys is promoting services like billing and employee care (payroll, benefits and other human resource services). Sykes says it delivers "total solutions" to "complement" its CRM services. The large call center StarTek is probably
On the call center side, Convergys is promoting services like billing and employee care (payroll, benefits and other human resource services). Sykes says it delivers "total solutions" to "complement" its CRM services. The large call center StarTek is probably
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
the most bold. It comes right out and calls itself a "Business Process Outsourcing" company.
So what is going on? Why does everyone want to be in each other's business?
There seem to be two main reasons these companies are broadening their product lines into areas that are clearly outside their core expertise. The first has to do with customer req
So what is going on? Why does everyone want to be in each other's business?
There seem to be two main reasons these companies are broadening their product lines into areas that are clearly outside their core expertise. The first has to do with customer req
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
uirements. Large blue-chip clients no longer want to buy bits and pieces of service offerings from a jumble of separate suppliers. It's just too complicated and expensive to manage it all. They want to buy a broad range of outsourcing services from a few suppliers (or even just one).
This trend has been happening in the IT sector for some time now.
This trend has been happening in the IT sector for some time now.
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
According to Gartner Inc. and most of the major IT analysts, large outsourcing deals have been the "main engine of growth" over the past couple of years, and this trend is expected to continue.
Escaping commodisation is another reason companies are expanding to new frontiers. The most successful IT companies have become so large and their project
Escaping commodisation is another reason companies are expanding to new frontiers. The most successful IT companies have become so large and their project
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
anagement procedures so reliable that, to a large and sophisticated client, their service offerings can be difficult to distinguish from those of competitors. In other words, they have become commodity providers -- not that much different from farmers selling pork bellies. This situation has been apparent in the call center industry for some time. T
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
he IT companies, on the other hand, aren't used to thinking of themselves in such a manner and probably don't like it very much. But what unique selling feature could there possibly be among high-quality companies like Accenture, EDS, HP, CSC or IBM, other than price?
In order to escape this dead end, everyone wants to move aggressively into new bu
In order to escape this dead end, everyone wants to move aggressively into new bu
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
inesses. BPO seems exciting because it's new to everybody and industry standards for service levels and pricing are not yet well developed. As a result, the sales process is more consultative in nature (rather than just a discussion of price) and there is much more value to add. In such an environment, the opportunities for higher margins are greatl
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
y enhanced -- as any salesman would appreciate.
Where Will It All Lead?
It is very evident that both the large contact center companies and the IT services organizations will continue to expand their product lines into BPO and each other's businesses. However, it's the IT companies and not the call centers that sign the big outsourcing deals -- an
Where Will It All Lead?
It is very evident that both the large contact center companies and the IT services organizations will continue to expand their product lines into BPO and each other's businesses. However, it's the IT companies and not the call centers that sign the big outsourcing deals -- an
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
yone who reads the business journals knows this. Announcements for billion-dollar outsourcing contracts are becoming almost a biweekly occurrence for the IT professional services companies.
As well, my information indicates that throughout the fast-growing Asia-Pacific region, it is almost always the IT companies that are looking to acquire call ce
As well, my information indicates that throughout the fast-growing Asia-Pacific region, it is almost always the IT companies that are looking to acquire call ce
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
ter capacity (i.e., buy call center companies) and seldom the other way around. If the past is an indicator of the future, then a lot of people from the call center industry might soon be calling themselves geeks.
Offshore Recruitment Outsourcing:
Chalr? Recruitment Outsourcing allow companie
Offshore Recruitment Outsourcing:
Chalr? Recruitment Outsourcing allow companie
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
s to improve the performance and income of their senior recruiting professionals by directing low value recruiting activities offshore at lower cost. Call or email for information.
Richard Mills CFA
Chalr? Recruitment Outsourcing
t: +632 892 6703
w: www.chalre-hro.com/
Richard Mills CFA
Chalr? Recruitment Outsourcing
t: +632 892 6703
w: www.chalre-hro.com/
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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