Outsourcing's Global Expansion

Includes: G, OOO, PTI-OLD, SRT
by: Outsourcing Insider

It was English historian Edward Gibbon who said that that, “all that is human must retrograde if it does not advance,” and in outsourcing, this is likewise the case.

As the end of the first quarter draws near, it is noticeable that business expansion among outsourcing companies have become more marked, and is in various different parts of the world. Companies are expanding their global presence in anticipation of more business in different fields such as legal process outsourcing (LPO), business process outsourcing (BPO) and information technology (IT) outsourcing. It is encouraging that the anticipation of the influx of business for the outsourcing industry has been steadily rising since the start of 2010. It would seem that despite the effects of the recession having barely begun to wane, outsourcing companies are still expecting a better outlook.

In the US, IT consulting and outsourcing company ENTAP Inc announced its expansion into the Washington DC market on the 22nd of March. The company opened a new facility which will cater to federal government agencies and prime contractors. Government outsourcing contracts have become a big trend now, as governments try to find ways to stretch their limited budgets. Meanwhile on the following day, business process outsourcing company Knoah Solutions also announced the opening of a new contact center in Las Vegas, Nevada in order to meet the growing demand for contact center outsourcing services. It’s certainly good news for the US as it tries to maintain the steady recovery of its economy and increase employment opportunities.

Down south in Mexico, Indian IT outsourcing provider Patni Computer Systems (NYSE:PTI-OLD) opened a new IT delivery center in Queretaro on the 12th of March. The new facility is slated to be the company’s hub for its expansion efforts in the Latin America markets. Patni joins other outsourcing companies such as TCS, which also entered into the Latin America market through Queretaro. Other IT companies from India are also eyeing expansions into Latin America as well as Africa for new and non-commercial markets in order to expand their businesses.

Speaking of the African outsourcing market, two companies were featured on the 24th of March for their planned expansion into the region. Stream Global Services (OOO) announced the opening of its new service center in Cairo, Egypt. This is following an agreement by Stream with Egypt’s government to employ and train more than 1,000 Egyptian employees over the next three years. On the other hand, Tech Mahindra is also planning to expand into Africa as well as the Middle East in anticipation of a surge in contracts for data analytics, and other services. Aside from that, legal process outsourcing companies such as Integreon are also planning to pursue expansion into Africa, as well as the Philippines and China.

In Asia and Europe, business process outsourcing provider, Startek (NYSE:SRT), announced on the 8th of March that it is expanding into the Philippines with a second facility, while Indian BPO company, Genpact (NYSE:G) will be expanding into Romania with the establishment of a facility in Cluj-Napoca as announced on the 25th of March. Both are expected to be operational by the third quarter of this year.

These are only some of the advancements that are happening globally since the recovery began and although there is still much to be done, it is clear to see that the recovery is well under way. It is good to know that, although some progress may be slow, outsourcing is far from retrograding.

Disclosure: No Position