Top 10 outsourcing companies

Curtains went up on the Black Book of Outsourcing list. The survey of global service users aims to identify the 50 best-managed global outsourcing vendors through surveying client experience and assessing industry developments.

The 2008 issue of the annual list released by US-based Brown-Wilson Group once again proved the fact that change is the only constant in the dynamic outsourcing industry.

The 2008 list saw last year's leaders Infosys, Hexaware, EXL Service and ICICI Firstsource failing to feature in the Top 50 this year due to low client approval ratings, a fact which clearly shows that Indian BPOs need to work on their delivery levels. IBM Global also lost its position this year. Firstsource (formerly ICICI), a four-year top ranked performer fell the most of any BPO to 1550 of 1690.

The top 50 list this year comprises six Indian companies Wipro, Satyam, TCS, HCL, NIIT and Patni. Interestingly, the survey shows that outsourcing is no longer seen as a refuge of the financially weak or technically-deficient enterprise, nor is it a stick to threaten US workers. It is increasingly being accepted as a strategic tool. As the outsourcing Juggeranaut rolls on, we bring to you the top 10 best BPO vendors globally.The year's top slot goes to Hewlett-Packard. The IT giant climbed from eighth position last year, to claim the lead spot in 2008. The company also topped the list of top 10 financial and accounting outsourcing vendors

. The survey states that the world's largest PC maker's strategy to rival IBM in bundled outsourcing services is supported by the industry's most satisfied customer base. The company which has operations in more than 170 countries, recently made a $13.2 billion acquisition of technology services provider Electronic Data Systems Corp.

And though Nay Sayers may not fully appreciate the model that HP and EDS boards strive to achieve but the vision and possibilities are exciting the entire industry. According to analysts, the all-cash deal that represents HP's biggest gamble under the leadership of Mark Hurd, also provides the two companies with a golden opportunity to run with the momentum.

Buying EDS would give HP more tools to challenge IBM in the lucrative technology services field. The estimated $550 billion market for technology services has long been dominated by IBM Corp, which has about a 10 per cent share. HP ranks a distant fifth with a 3 per cent market share, based on its $16.6 billion in technology services revenue in its last fiscal year.

In Feburary 2008 the company signed a seven-year outsourcing contract with Unilever for the management of Unilever's technology infrastructure in the Americas, Asia, Africa, Turkey and Middle East.Founded in 1988 by Ross Perot, Perot Systems Corporation ranks second on the Blackbook list. The company offers integrated IT solutions including technology infrastructure services, applications services, business process services and consulting services. The company is focused on select verticals, including healthcare, insurance and government sector.

According to the survey, Perot Systems enjoys strong approval from clients in the government, manufacturing, engineering, healthcare and insurance markets. Perot proves their client-focused course is spot on. New and long-term clients express the same satisfaction.

The company was also recently ranked at No 2 position on the Fortune magazine's list of America's Most Admired Companies in the Information Technology Services companies category. he global consulting and outsourcing major CSC, positioned at No 3, provides applications, business process and IT infrastructure outsourcing solutions.

With clients spread across 50 countries and approximately 90,000 employees, the company also tops the rank for making strongest comebacks in five years (2004-2008) in Black Book Satisfaction Survey.

According to the survey, "Management reorganization and a beefed up commitment to outsourcing clients pushed CSC ahead of many ITO/BPO competitors. Acquisitions of Covansys BPO and First Consulting Group (Healthcare industry) brought new trials and new opportunities. With all eyes on them, CSC's leaders passed with flying colors." Infact, by commanding verticals through acquisitions the company might just reach the top, the survey speculates.

The company recently signed a IT outsourcing contract with aircraft manufacturer Hawker Beechcraft Corp. CSC will manage Hawker Beechcraft's IT infrastructure, including mid-range computers and desktops, help desk operations, IT security, engineering computing, voice and video telecommunications, servers and local-and wide-area networks.

The deal is the first big win for CSC since it announced Project Accelerate, a strategy intended to focus the company on business after a recent reorganisation and an investigation into its stock options by the Securities and Exchange Commission.

The company recently shifted its corporate headquarters from El Segundo, California, to Falls Church, Virginia. CSC recorded $16.5 billion in sales in fiscal 2007. It forecasts revenue of $4.25 billion to $4.4 billion for the first quarter of 2008. At fourth position is US-based Unisys Corp which combines expertise in consulting, systems integration, outsourcing, infrastructure and server technology. The company is engaged in the hardware business as well as manufacturing enterprise servers, mainframes and other products.

The Black Book outsourcing survey states that Unisys keeps "close to the box" clients extremely content. After a major restructuring, Unisys has a fortified management team and has ramped up business innovation strategies poised to please clients and investors.

Unisys is one of the largest government IT contractors serving local, state, and federal agencies, as well as foreign governments. The company which figures among the top 10 IT outsourcers in the world has operations spread across the US, UK, Australia, Belgium, Brazil, France, India, Spain, Germany and Hong Kong.

The company is reportedly building a software laboratory in Mexico, at an investment estimated at $50 million over the next three years.

Technology services provider Unisys spent $470,000 to lobby the federal government in the first quarter, according to a disclosure form.Founded in 1962, EDS has evolved from a $1,000 investment into a $20 billion plus technology services company. At fifth position, the company offers a broad portfolio of business and technology solutions. The company was recently acquired by the IT giant HP in a $12.6 billion deal, which has also got clearance from the US government antitrust review.

According to the survey, EDS which led the 2007's Black Book "Best Managed" global outsourcing vendors ranking got a boost by EDS' MphasiS BPO unit and HRO unit Excellerate. Data Center expertise in communications, transportation, energy, and government also got the company client approval above hundreds of ITO firms.

EDS is likely to boost HP's presence in the technology services that includes running computer data centers, stitching together software programmes and consulting on special projects for business and government clients.

Though HP has stated it will maintain EDS' existing hardware partnerships, analysts believe that HP will ultimately lead with its products, rather than recommend competitor solutions.

While the focus through 2009 will be on combining HP's existing outsourcing services with EDS, the company will continue to drive growth across its other business units while continuing to seek out efficiencies across the organization.The first Indian company in the Black BooK of outsourcing list Wipro climbed a few positions to make its entry at no six.

Unlike its closest Indian rival Infosys, which lost its position in the top 10, Wipro retained her place. According to the survey, Wipro's reverse outsourcing strategy in the US and UK has helped it become a hot favorite among US buyers. Wipro's acquisitions are paying off and management is maximising synergies. Survey sees business transformation demands from clients propelling Wipro into a hugely successful 2009.

With over 19,000 employees, operating across nine different locations (India and Eastern Europe), Wipro BPO services include banking and capital markets, insurance, travel and hospitality, hi-tech manufacturing, telecom, healthcare sectors, finance and accounting, procurement, HR services, loyalty services and knowledge services.

Recently the tech major consolidated its entire consulting business under a single umbrella, Wipro Consulting Services.

Facing tough times due to rising rupee vis-a-vis dollar, and slowdown in its largest market US, Wipro reported its slowest quarterly earnings growth in about five years as its clients cut back on technology spending.

The company is bidding for 12 contracts worth a total of $1.2 billion to help it meet its goal of becoming one of the ten largest IT companies in the world.Closely following its Indian rival Wipro in the list is Satyam. The fourth largest software services exporter Satyam is seventh in the list.

Satyam BPO is the world’s first e-sourcing capability model (eSCM) Level 5 company. The company recently reorganised its workforce to create almost 4,000 leadership positions - 8 per cent of its 50,000 workforce.

The survey states that developing global archipelago of service centers makes this Indian ITO, BPO and engineering giant an annual favorite among customers.

Satyam is also placed at fourth position on the list of top 10 knowledge process outsourcing (KPO) vendors.

Last quarter Satyam Computer reported an 18.5 per cent rise, as a slowdown in the United States crimped outsourcing deals.

However, the company is actively chasing 20 large deals in the $50 million-$100 million range to beat the slowdown tremors.The BPO unit of GE which manages business processes for companies around the globe ranks eighth on the Black Book of outsourcing list of top BPO vendors.

BPO giant Genpact which employs 19,700 people has more than operations in nine countries across the globe. The company which continues to grow between 30-35 per cent plans to hire 10,000 people in the current fiscal, almost the same number that it hired in 2007.

According to the survey, BPO giant Genpact keeps diversifying and entering new outsourcing frontiers with great success. Clients are on board with their cutting edge, platform-based services.

Also, according to media reports, Genpact is said to be eyeing acquisitions in the domestic market and is focusing specially on the BFSI segment.

The company aims to increase its business from India and China. Genpact was the Indian back-office subsidiary for GE Capital, until it was spun off in 2005 as an independent BPO company. The company currently has 34,300 staff in India and other locations.

The company recently entered into a training joint venture with NIIT, to nurture quality talent. The joint venture between NIIT and Genpact will set up training facilities in Indian cities such as Gurgaon, Hyderabad, Kolkata, Bangalore, Chennai, Mumbai and Pune in the first year of operation. It plans to train 6,000 to 10,000 staff in the first year.

The joint venture also plans to set up operations in Dalian, Changchun, Shanghai and Xian in China, and Manila in the Philippines in the next phase.Business outsourcing solutions provider Automatic Data Processing (ADP), with nearly $8 billion in revenues and over 600,000 clients ranks at the ninth position in Top 50 Best Managed Global Outsourcing Vendors list.

The company offers HR, payroll, tax and benefits administration solutions. ADP is also a leading provider of integrated computing solutions to automotive, heavy truck, motorcycle, marine and recreational vehicle dealers around the world.

According to the survey, client-centric HR models featuring payroll and benefit-led services are in vogue and propelled ADP into the top ten. ADP also achieved top status in overall HR outsourcing vendors.Founded in 1974, Ciber is an international systems integration consultancy. With approximately 8,500 employees, the company operates in more than 18 countries. The company with annual revenue of approximately $1.2 billion has over 60 US offices, 25 European offices and seven offices in Asia-Pacific.

At 10th position, the company offers strategic staffing basis, in both custom and enterprise resource planning (ERP) package environments, and across all technology platforms, operating systems and infrastructure.

According to the survey, expertise in Help desk services and IT Infrastructure across multiple verticals brought this mid-tier outsourcer again to the head of the services pack. Higher education and government clients were most approving.

The company which went public in 1994 reported a $294.5 million revenue for first quarter 2008. Recently, Ciber acquired two SAP services providers in Sweden and the US.