Shared Services Economics

2006-07-21T03:57:00.000-07:00

Its been a long time since I last wrote on my blog. Too busy doing my project.The fate of Germany in World Cup demoralized me completely. My funny thoughts suggest that people in Iraq, Palestine and Lebanon should promote their labor force as they might be the cheapest in the world. People are being killed as if they were animals. I think even animals can live in those countries more securely.

2006-07-15T18:41:00.000-07:00

Can Malaysia at least gain a certain amount of percentage of the 30 million forecasted global IPTV market by 2010? Well, if you calculate the proportion, Malaysia should have at least 100,000 subscribers by then. Obviously that number would be discouraging and perhaps deter service providers from employing such business. Unless of course something amazing happens. For instance, they would have a world class infrastructure that is capable of providing a culture.. yes a culture, not a content that can put ASTRO (their cable TV incumbent) to shame. If that would be far fetched, it may also be possible if Malaysians in general accepts the democratic culture of self censorship, open opinion debate or legalize gambling. If that can’t happen too, you can expect the providers spending huge amount of money on a white elephant project that would have to subsidized and realize loss using possibly the people’s money.

I dearly hope that this won’t happen. Through our research, we also realize that many IPTV providers (majority from telcos) gives focus too much on technicality and service level. According to our survey, 99.999% availability can actually be compromised by cable tv consumers in developing countries. What is more important, is the content. On Demand, interactivity or capabilities to store programs are just value add. The core is still in its capability to provide winning application or content. Till then, Malaysians will still enjoy watching only reality tv shows using mobile text to vote. I feel sorry for the feud between their politicians. People should start questioning themselves. “What can the Malays offer to the world”

2006-07-06T09:44:00.000-07:00

Carpenters -
I believe you
When you say that you will reach into the sky
And steal a star so you can put it on my finger
I believe you Baby, I believe you
I believe you.When you say that every time that we make love Will be the first time we’ve made love And every act of love will please you Baby, I believe you
(*) Blind faith makes me follow you. I’d live in a cave if you wanted to. Just ask me and I’ll marry you.You don’t have to sell me‘Cause you overwhelm me. I’ve made up my mind for a life time.
I believe you. When you swear your love will keep on growin’ strong.And that forever isn’t long enough to love me like you need to.Baby, I believe you.Baby, I believe you.Honey, I love you. Repeat (*)I believe you. When you say you’ll fill my body with your soul. And love will grow into a freckled little girl.Who looks like we do.Baby, I believe you.Baby, I believe you

2006-07-04T11:50:00.000-07:00

World Bank has authored a 40 page report on recommending the Sri Lankan government to brand itself as the future country for providing offshore outsourcing services which also includes building technology parks and building incentives for foreigners. They also recommended that the country should focus on education and its resources including supplying more IT skilled work force and raising the usage English language, a government policy that promotes freedom for businesses aside from building better infrastructure for telecommunication and IT.

Bla bla bla.. sounds familiar. The recommendation for this report can be cut and pasted for so many other developing countries. My take on Sri Lankan is that the government should continue to support and promote their increasing work force to Middle East. Yes, equipped those people with better education but forget the part of getting multinational companies coming down to Sri Lanka. Which idiot MNC would???..Aside from textile and garment providers who would probably be there not just to hire low paying workforce for garment exports. By allowing their people to work abroad, the knowledge learning skills and possibilities of climbing up the world multinational corporate ladder would be faster. Main focus should be on how to upkeep their workers abroad to keep investing back into Sri Lanka. Currently 800,000 work force abroad are bringing in $1billion a year into the country. Imagine if many more at higher value positions are taken up by Sri Lankans abroad. And of course eradicate corruption.

2006-07-03T00:09:00.000-07:00

Deutschland vs Italia

I was among many millions who never really believed Germany can actually make this far. Not only that, they succeeded to go further than the legendary Brazilians. If Germany loses to Italy at this stage, I would be devastated. They can lose in the final, but not in semifinal to Italy. Although based on their historic meetings Italy has won more against Germany in the past, these Deutsch boys worked much harder in my own bias opinion. Hard work may not lead to being champions but it should allow them a deserving place in Final. However, football is football. One minute of error can make a huge change. Italy was my favorite childhood team. Me and my late uncle used to imagine what position we’ll be playing if we were to represent Italy. Well, goodbye childhood Cmon Germany!!!

2006-06-29T10:25:00.000-07:00

Everyone knows India’s workforce salary increases tremendously as they become more senior. For the past years, average income for junior executives have increased at an average of 10 to 15% while senior positions have increased to nearly 30%. This problem of managing. The move not to outsource to India would only be valid if companies do not have any intention to set up high number of recruit. That is why Apple’s one month old centre had to close down having only 30 staff. Pervasive which has 50 staff is expected to follow suit. Yet German SAP is opening their 2nd software centre and is expected to recruit more than 1,000 workforce. IBM will come with its USD6billion investment for the next 3 years and so will Capgemini

2006-06-27T11:19:00.000-07:00

Watching my father sleeping.. Reminds me of when I use to stare at my late uncle when he was asleep. What a wonderful man he was. He was a go getter and famous. Take risks and conquer the world type. A businessman, an entertainer, writer, cartoonist, actor and made his money big time, my idol at that time. Although he has passed away more than 10 years ago, people still talk about him. Yet I would actually rather end up like my father. He isn’t the type that seeks any empire. He was an honest man working in government. I dont think his work will leave any major mark although it may have contributed something. I believe his only goal in life then was to provide for his family as best as he could or rather should. Now aside from spending time with golf and his grandson, he entertains himself with sudoku. Leads a simple life, loyal to his wife and although he doesn’t know it, he gets the highest respect from me .. someone I think I could only achieve half of what he is

2006-06-26T02:20:00.000-07:00

Aditya Birla Group (ABG) has announced that it is acquiring Minacs Worldwide Inc., Canada's leading business process outsourcing (BPO) provider. ePLDT, has announced the acquisition of an American company SPI Technologies Inc to make it the largest BPO provider in Philippines. Brazilian IT company Stefanini IT Solutions plans to acquire a US IT services company. The trend is showing many developing BPO companies are buying companies from developed countries. Most of the reason can be evident. The companies they acquire are closely knit to their current and potential buyers. While the logic behind is easy, it took these companies years and millions of dollars to firstly establish themselves at home

2006-06-22T10:46:00.000-07:00

Is Offshore Outsourcing really a threat to United States job security? Welll so far it has only been taking less than 0.5% of the total workforce. No one should really be threaten. It also goes to show that the market is still nascent despite years of offshore intentions by major corporate. What is expected to penetrate in 2015? Only 2%, that is assuming the acceleration takes place faster than ever before.

Global Human Resource is invetible. Nationa especially developing countries should prepare moulding its people to be able to compete globally. That means giving incentives to promote their people to build a career and life offshore and gain more exposure internationally

2006-06-21T08:02:00.000-07:00

Unless our companies participate and become members of established International outsourcing bodies, it is unlikely that we would be able to go far. Just look at the founding members of IAOP. We're talking about the likes of Jag Dalal, a senior executive who has worked extensively in the field of outsourcing at major US corporations including Carrier, Data General, Unisys, and Xerox and is currently principal of JDalal Associates. David Barrett, partner, Simmons & Simmons; Michael F. Corbett, Executive Director, IAOP; Dr. Tina Dacin, Queen’s School of Business (Canada); DJ Dalal, country manager (India) for engineering and technology sourcing for United Technology Corporation's Hamilton Sundstrand; Chris Disher, Vice President and head of outsourcing advisory services for Booz Allen Hamilton; Deborah Kops, Managing Director in charge of Global Sourcing Transformation, Deutsche Bank AG, London; Lisa Ross, CEO and Founder of FAO Research, Inc.; and Atul Vashistha, CEO, neo. These are the influential people that promotes and advocates offshore jobs. Yet their only believe set only on India claiming 23 of the 30 top-ranked offshore providers comes from that country.

Yet IT services market in Asia Pacific excluding Japan were at USD30 billion with 50% of the market share coming from Australia and China. India is only to about 14% of the market share.

2006-06-14T19:42:00.000-07:00

Cant believe our phone line was cut for the past 2 working days. That’s a huge lost for our business. And at the same time it also stopped me from doing my blog. That being said, it’s a great feeling for the past week. Germany won two games in a row. “Will they make it to the finals?” Everyone now seems to be posting that question after knocking Poland, when Germany was the least favorites in the beginning. Its all about perception and branding. I think they are still shite though. Similarly to Offshore Outsourcing centre, the world over will believe India is the main lucrative outsourcing centre when more than half of Fortune 500 companies decided to outsource there. All of a sudden, every company who is considering off shoring is taking India as the benchmark. That’s the challenge for the rest of the country in the world. Get those Fortune 500. Its about branding yourself
My girl asked me why the ‘smiling face’ today. She wouldn’t understand why a win for my team will bring cheer to me as if I just had good sex the night before.

2006-06-09T08:43:00.000-07:00

Germany vs Costa Rica
My prediction : Germany 1 Costa Rica 1

German Team

Lehmann
Jansen Mertesecker Metzelder Lahm
Schneider Borowski Frings Schweinsteiger
Klose Podolski

20 minutes to kick off

2006-06-06T04:20:00.000-07:00

One out of three Offshore Outsourcing development projects actually ended up experiencing increased cost rather than savings. This is a major concern to the industry since one out of three will automatically believe Offshore Outsourcing savings are a myth. Thus, it is highly important for players, whose responsibility is to lure multinational companies to offshore, to look at the main problem as to why costs can be increased. They should lay out a couple of models from their experiences showing why certain projects fail and certain projects flourishes. The truth is the best policy.

Studies have shown the main reason for increased in cost is mainly because of lack of proper set up in the process involving planning, migrating, structuring and implementing their projects. So although facts such as cost of labor, infrastructure may be an important fact to know, it is more important for countries like Philippines and Singapore to convince multinationals that their government partners with the likes of highly reputable consultants to help assist and plan the process of migration.

2006-06-05T03:34:00.000-07:00

Asian incumbent ISP who is mainly owned by major telecom operator should follow the strategies of advanced nations by having its DSL service co marketed with other ICT and finance facility players. By doing so, the benefit for them and consumers would be tremendous. Users would be able to get products and services (such as broadband, PC, virus software..etc) easily from a one stop shop through easy loans or credit cards rather than having to search for each needs at different location. By doing so, incumbent ISP would be independent of revenue that comes only from DSL line service. Suppliers would be able to sell its software at a cheaper rate and the nation would avoid a pirate software consuming society. But the push needs to come from the incumbent ISP.

Why incumbent? They are the only one with enough muscle and trust to see the implementation and have the processes in place such as keeping track of customers and servicing them yearly. PC vendors wouldn’t have the capability since most of its selling method is through a “one off” selling model. They wouldn’t know if such line is DSL enabled or the status of the line. Of course I believe, all can be done if Microsoft plays the front role. Rather than spending billions of dollars trying to upgrade its XP or fight piracy through international bodies, they should look into providing licensed software through each local ISP, if they are serious. That would be a dream that can actually come true.

2006-06-01T20:03:00.000-07:00

iPod is turning into a PC, a PC is turning into a notebook, a notebook is turning into a handphone, a handphone is turning into a PDA. Hybrid gadgets are fast developing, And we’ll see more changes when last mile network access becomes more hybrid, available and interoperable. It’s the trend now, from sex gender to even corporate companies like IBM, everyone seems to be trying to provide a dual mode function if not quadruple.

Speaking of sex gender, im just wondering why most gadgets are still selling Ford’s ancient concept “ you can have any color as long as its black”. I mean except for some PC and handphones, all iPod really looks girly to me. Popular selling PDAs are a turnoff to my girl im sure. With all the corporate money spending on its technologies, functions and customer support, I sometimes wonder if they ever really do any market research on customer needs. Maybe because they have been raking so much money that they don’t have the time

2006-05-31T19:13:00.000-07:00

Why IPTV can be delivered to everyone now

Through MIMO or multiple input, multiple output, which improves Wi-Fi's range (802.11n) and throughput IPTV can be delivered to every household. We’re talking about 240Mbps bandwidth throughput allowing 2 HDTV channels!!! And the performance is as good if not much better than WiMAX. And with the current technology, you can be connected to multiple TV through this wireless technology. So please service providers, forget about spending billions of dollars on restructuring your whole network using Ethernet cables. And I believe when you’re delivering interactive content, no one is really talking about five 9s in service availability. Just ask the cable providers through satellite. Some of them (especially through Ku band provider) can still maintain a large amount of subscriber base knowing that service is down every time it rains

Okay , the interoperability and scalability has yet to be commercially tested everywhere, but only large service providers can ensure the delivery of this technology fast. Market them immediately at Science Park areas for instance. Where interactive TV is surely popular among families and the set up of the technology would be admired by the workforce tenants. After all, we’re not talking about billions of investment but only a fraction of that

2006-05-30T20:22:00.000-07:00

An INFP's inner life.: Reflections on offshore outsourcing

2006-05-30T19:15:00.000-07:00

Many European decision makers are still looking at Eastern Europe for Offshore relocation. Mainly due to cost and the fact that its nearby. Asians need to do a lot of reassuring.

2006-05-29T08:41:00.000-07:00

I know Germany will get nowhere for this World Cup, but the last time we played in Germany, we won. Cmon 1974!!

2006-05-26T07:06:00.000-07:00

Verschtehe nicht! (Understand not!) ich bin arbeitslos fur eine jahre. Something is wrong with either the economy, country or me. I tend to see it as my fault. So what do I do? Learn my German again. I believe its not a bad move considering I have all the free time for now. A friend of mine is considering to set his daughter to be a pilot instead of telling her to be a doctor. Is that ridiculous or what? He said the opportunity for her to live a better life would be easier based on his prediction of supply and demand of the workforce.

So the general forecast is that India will start to dominate the world due to the booming of shared services industry. That really sounds unbelievable wouldn’t it? After all, when some developing country dominates a particular sport, you can be sure mr white will change the rule of the game. Just look at Japan. When they came out with cheaper and more reliable cars, ‘international organizations’ started talking about the rule of not dumping cars and set a certain standard of car quality with certain standard of wage for workers and a certain standard of processes that one must adhere to. Am I talking nonsense? Maybe. But mark my blog will ya

2006-05-24T19:25:00.000-07:00

Many of us tend to focus too much on the short term planning for shared service that we forget the true core element of a long term shared services outsourcing plans. Country needs to put not only budget but agenda for a shared services economy. Government department of education and culture needs to know why they play an important role to shape the country. Maybe more English or multiple speaking society. How can we develop a learning habit society for all with enough facilities. (and im not just talking about internet infrastructure but the normal supply of information centre such as a library or even a normal newspaper stand). I find it difficult to look for a newspaper stand when im in south east asia towns when compared with western villages.

The long term benefit would be enormous if we give focus to these segments of the society. Yeah.. and for those who thinks calling their locals from overseas to come back to their home country would be a good a good idea, think again. Many of the Fortune 500 companies decided to go to India because of the fact that many of their high ranking officers or decision makers are from India who has worked a long time in the States. They are able to give the true value of their country to Fortune 500 companies and its not just based on sales pitch but by their known reputable experience in their respective companies when they work there.

2006-05-22T08:45:00.000-07:00

Philippine BPO (Business Process Outsourcing) industry is booming. Typicaly like many countries they see Australia, India and China as their market. With cumulative growth rates of above 25 percent from 2001 to 2004. Medical transcription was the fastest growing at 130 percent, followed by call centers at 50 percent, software development at 30 percent and animation at 25 percent. BPO sector had grown $1.6 billion vs 350 million in 2001

Aside from high electricity and political instability in the country, I believe another main challenge is the country's location itself. No one that goes to Philippines can easily travel to another country, like can be done in Malaysia. Another drawback I see is that its government body isn’t really focusing on providing high value outsourcing activities. But the fact that many Philippines outsourcing companies are now marketing in the United States is commendable and must be observed by competing neighbors

2006-05-18T07:11:00.000-07:00

Top 10 Concern for Offshore Call Centre set up

A study was conducted by AGIT Consulting interviewing key executives in the industry to find out what are the top 10 Concern for Offshore Call centre set up. Below is the list although they may not be in prioritized order

1. Finding the right workforce with sufficient skills & capability
2. Telecommunication infrastructure too expensive
3. Security concern about company’s client information
4. Image of multinational company may be jeopardized
5. Cost of workforce (initial & maintenance)
6. Migration in terms of system & internal process
7. Stability of the country
8. Environment of the country in relations to independent judicial system and corporate governance
9. Realization in savings
10. Distance to the offshore country concern

2006-05-16T11:35:00.000-07:00

Data Centre. Is there any country that specializes in data centre? We know when you mention contact centre, the only country that can supply the most and the best is from India. And manufacturer of the world is China. What about data centre? Surely we could segment the IT industry further and have some of the countries to concentrate on certain IT areas based on their own strength and weaknesses. In Europe, AGIT Consulting estimated the Data centre market will soar up to Euro 750 million by 2007. Data Port has announced that it's building a US$1.4 billion, 3.5 million-sq.-ft. (315,000-sq.-m.) center for IDSPs in Gainesville, Va. Making the huge complex in Prince William County as "the nation's largest multi-data center facility."

Certain countries or states should look into the possibility of specializing in building data centre as it would boost up economy as well as the IT value positioning of the country. This would be especially so if the country has a large amount of space, viable location, reliable infrastructure, competitive price, strong government and private industry backing in maintaining its security. There isn’t a need to emulate India and supply programmers or provide systems solutions. How come no one country is grabbing this niche to support the world.

2006-05-15T09:24:00.000-07:00

A lot of companies are deploying 802.16n or better known as WiMAX. Samsung will be deploying United States' first WiMAX commercial deployment. Airspan will be doing Russian’s first. Malaysian Nasioncom plans for a USD50 million for the next 2 years and hoping to add another 4 base stations on top of its current 6 base stations in Klang Valley (although just like other Malaysian providers, none of them are commercially available just yet).

Yes the IEEE has approved a draft of 802.11n in January 2006. Since then, many vendors have painted a picture that their WiMAX is IEEE compliance when actually it is not.
There are many interoperability problems with WiMAX. For instance, currently, 802.16e is not backward compatible with 802.16d. For the novice, 802.16d is fixed point to multipoint wireless that allows you to portably surf your PC fast under a 50km range from the base station. 802.16e is a mobile WiMAX which is suppose to allow laptops to surf instead and do mobility. Even if you upgrade the 802.16d at the base station, those with 802.16d end premise will not be able to be upgraded to 802.16e. What does that mean? If you’re a service provider and you are rolling out WiMAX too early you may be wasting money by year 2007. Whatever investment that you put in, make sure ROI is back in year 2007 since the whole ball game may change by then.
Whatever it is, Science Parks which is usually located away from cities may want to grab hold of this technology fast.

2006-05-11T19:12:00.000-07:00

Its about TIME that the magazine limits its distribution only within the United States. May 8 issue really reflects Time magazine’s shallow perspective on who are the world’s top 100 influential people. The WORLD! They put Franz Beckenbauer as oppose to legendary Pele? American Steve Nash, whose reason to be there is because he donated $40,000 in bonus money to ‘Right to Play’ as oppose to Ronaldo, a football icon to the world who had donated $60,000 to 4,300 disadvantaged kids and parted $35,000 of his world cup money to Brazil National Cancer Institute while at the same time carrying out the role as a goodwill ambassador to United Nations Development Programme? And where is Michael Jackson who I believe is known and plays a major influence throughout the world? Is it because he is black or rumored to be converting to Islam?

Media should realize that although freedom of press allows them to do anything, they still have a social obligation to come out with quality issues that would not in any way create a bias opinion. Okay, some of us may say, “its up them, after all they are from United States”. Then I believe it isn’t at anyone’s place to ever complain if certain media stream in developing countries be tuned towards the government that they belonged to.

2006-05-11T18:51:00.000-07:00

Austin Texas
Malaysians practically invaded Austin Texas last week with their Prime Minister going around town promoting Malaysia. Everyone from the bell boy to CEO of major companies now knows Malaysia. They were there for the WCIT conference but it was more like visit malaysia year instead. What Malaysians are trying to do is commendable. Yes, they have 'relatively' good infrastructure, stable economy and a multicultural society that makes it a possible centre for Asia. After all major country population such as India, China and Indonesia would find Malaysia adaptable to live in. Ok probably they dont have enough resources .. but then again resources such as number of workforce can always be imported anywhere else within the region.One thing that strikes me though, wouldn't India find these act of self promoting.. threatening? IN terms of SSO, India and Malaysia is like Ronaldo vs a 10 year old kid in football. It will take a loong time for Malaysia to get to at least 50% of India. And are the Malaysians ready for big corporations to park their functions in Malaysia? Not only am i talking about well ....oh things like customer service (in which malaysians tend to ignore in any service they provide) but also in terms of whether their local companies are ready to accept major MNCs into malaysia who may plan to get into the business of outsourcing themselves rather than insource internal work. I just hope for the best for Malaysia. One note though, i think the core of this industry is in its willingness to accept and receive MNCs. And this would mean not only enough resource, low cost and easy access to infrastructure but also a culture of what major Fortune 500 companies are all about... freedom, democracy and a no terrorroist link image. Thats something everyone here would attack Malaysia on. Thats the very thing Malaysia would have to tackle in their marketing