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Article

Title: IBM to Buy Service Provider in India: Several tech vendors look...

Author: McDougall, Paul Article Type: Company
Source: Information Week, v984 p26(1) Publication Date: Apr 12, 2004
  ISSN: 8750-6874
  Illustrations: Graphs
URL of Publication: http://www.informationweek.com

IT vendors are increasing their offshore business process outsourcing (BPO) ventures in anticipation that BPO will become the next services sector with significant movement to offshore. IBM has announced the purchase of Indian services firm Daksha eServices, which has 6,000 employees, including a new center in the Philippines. Oracle is also looking to cultivate relationships with offshore BPO firms. Hewlett-Packard won a multiyear BPO contract with Proctor & Gamble in March 2004. It will provide services from many global locations, including Barcelona, Singapore, Guadalajara, and Bangalore. Before winning this contract, HP had been using the center for internal needs. Analysts expect IT firms will work more closely with offshore BPO companies or build their own offshore BPO capabilities. Language and cultural differences may cause problems, however, because BPO involves more customer contact than previous IT outsourcing. Privacy and data security are two other potential problems that need to be addressed more fully. Some customers are reluctant to move BPO offshore because of data security and macroeconomic effects. Gartner believes that offshore BPO will account for 15 percent of the worldwide total by 2007, up from 1.5 percent in 2003.

Special Features: Graphs

Companies:
Hewlett-Packard Co (HP) IBM Corp
Oracle Corp

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