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February 2009

Online Version of This Newsletter

Welcome

The Global economic meltdown has put a squeeze on revenues and margins for many IT/ITES Service providers. Keeping an eye on Key Performance Indicators for Business Processes, and making sure that efficiency and effectiveness in every business process is maximized, has never been more important. A number of articles in this issue touch upon this topic. One of them talks about First Call Resolution in Call Centers and why it is key to ensuring both Efficiency, and Customer Satisfaction at the same time.

The Satyam debacle and its impact on the global Outsourcing, and Off-shoring market in terms of Transparency and Governance Issues has never been greater than now. However, as many of the articles in this newsletter show, because of this, off-shoring and outsourcing may suffer some cancellations and lateral movements in the short term. However, the global economic meltdown, and consequent pressures to cut costs, point to increased outsourcing and off-shoring, leading to a more optimistic outlook on the whole.

Your suggestions for other topics, articles and news to be covered are always welcome. Please send them to newsletter@ajira.com. Please forward this to others in your organization and elsewhere, if you feel this newsletter may be of interest. We value your privacy and for any reason if you wish to unsubscribe, the instructions are at the end of this newsletter.

Thanks for your time and attention,

Anil Rewari
President
Ajira Technologies, Inc.
www.ajira.com

 


Business Process Management Articles




Learning from Context to Improve Business Processes
K. Ploesser, M. Peleg, P. Soffer, M. Rosemann, and J. Recker, BPTrends Newsletter and Website, January 6, 2009.
Members of a team of researchers from Queensland University, Australia, Stanford University, USA and Haifa University, Israel, are currently investigating how context-awareness can become an integral part of business process modeling. They argue that to get to the next level of process management we must broaden our analysis beyond internal processes to the contextual environment in which the processes are embedded.


The Wheels Haven’t Come off But They May Be a Bit Smaller
Ian Gotts, BPTrends Newsletter and Website, January 6,  2009.
The discussion is on doom and gloom, and those who are drawing parallels with The Great Depression were not even alive in 1929. But some companies are focusing on what needs to be done to not just weather the storm, but come out far stronger and dominant. As John D. Rockefeller said, "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again."

Closing the Business-IT Gap Once And For All

Wolf Rivkin, B-Wave Software, BPMInstitute Website and Newsletter, December 12, 2008.
The gap between IT and Business in applications and how well they work for Business, widens everyday. This is because of outdated and ineffective software development methodologies. Wolf Rivkin proposes a new methodology called
Business Process Developing Life Cycle (BPDLC). It proclaims Business Process (BP) as the basic element of an enterprise’s functioning, and defines a development methodology built around business processes rather than functional management.

Go for the Green – Realize Both Cash and Environmental Savings across the Enterprise
Laura Mooney, BPTrends Newsletter and Website, January 6, 2009.
By adopting and standardizing on a common Business Process Management (BPM) and Enterprise Architecture and Modeling (EA) technology platform throughout your organization, you can have an immediate impact on both cost saving and environmental improvements and deliver a platform for ongoing improvements and long-term sustainability. At the same time, you can also drive strategic business process improvement that will ultimately help you gain significant operational advantages.

The Process-Managed Org Chart: The End of Management and the Rise of Bioteams
Peter Fingar, Greystone Group, BPTrends Newsletter and Website, January 6, 2009.
An overlay of end-to-end process management onto existing functional organizations has its rough edges, to say the least. In fact, the transformation to a process-managed enterprise could really mean the End of Management, as we know it.

A Practical Guide to Delivering a Superior Customer Experience
Ron Hildebrandt
, Enkata, Information Management (DMReview) Newsletter and Website, January 9, 2009.
Today’s competitive pressures challenge you to rethink the relationship between you and your customers. The contact center is no longer a cost center. It’s a key driver of competitive advantage. In order to compete, you must stop managing your contact center for speed of service and start managing for a truly superior customer experience - not by your own standards, but from your customers’ point of view.

Adoption of Data Governance by Business
David Waddington
, Information Management (DM Review) Newsletter and Website, December 1, 2008
Information Systems are worthless without Data Quality Governance. The Information Difference data governance survey reveals considerable business interest in data governance, with two-thirds of respondents' companies focused on instituting data governance.

BPM is NOT Software Engineering
Keith Swenson, BPM.com Newsletter and
Website, January 16, 2008.
A lot of the confusion and difficulty in the BPM community is because some people think that BPM is a kind of Software Engineering.  Indeed, superficially it looks like Software Engineering: you start with requirements, you determine the pieces of information that need to be stored and retrieved from variables, you might have a drawing of the relationships, and in the end you have something that can be installed and executed on networked computers.  But there is a difference, and that difference is the entire reason that BPM exists.


Business Process Outsourcing Articles



The BPO industry: Trends 2009
The ValueNotes Team, ValueNotes Outsourcing Weekly Newsletter and Website, January 14, 2009.
The BPO industry has not remained unaffected by the economic slowdown. Already the crisis in the financial markets is acting as a dampener for deals in the BPO sector. The number of BPO deals fell by 30% over the last year (from 430 in the year 2007 to 302 in 2008). Despite this, there is a lot of optimism amongst the service providers as well as the investor community, and we too foresee a positive picture for the BPO industry in the long term. We have identified some of the key trends that will impact the industry going forward.

7 Sins of Offshore Outsourcing
Geraldine Fox, Nigel Hughes, Baseline Newsletter, and Website, January 6,  2008.



How to Make Offshore Outsourcing Deals Withstand Crisis Situations
Dean Davison, CIO Magazine and Website, January 16,  2009.
The Satyam fiasco. Economic recession and budget cuts. These 5 tips will help IT departments create effective contingency plans to transfer services back in house or to another service provider when the unexpected happens.

Making Sense of Offshore Outsourcing 2.0
Arpit Kaushik, CIO
Newsletter and Website, January 13,  2008
As outsourcing continues to evolve, new yardsticks are needed to assess successful engagements and measure ROI. These tips will help you capitalize on the benefits offered by offshore, nearshore and onshore outsourcing.

Offshoring Set to be an Integral Part of Market Research Value Chain: Market Research Outsourcing Buyer Survey
The ValueNotes Team, ValueNotes Outsourcing Weekly
Newsletter and Website
, January 21,  2009.
The recent buyer survey of market research agencies from various international markets released by ValueNotes found that close to two-thirds of the research agencies are already offshoring to service providers in India, Eastern Europe and Latin America. While the large multi-national research agencies have always been outsourcing certain services, the smaller agencies with revenues typically less than $10 m are adopting offshoring. The survey reveals that with greater competition, research agencies, especially the smaller ones, are increasingly using offshoring to gain competitive advantage

Tips from iSixSigma's Best Places to Work
iSixSigma Newsletter and Website, January 12, 2009.
Recently, iSixSigma set out to define the work environment that is most desirable to Six Sigma professionals and to honor the companies that best provide it. Employees from nominated companies were invited to complete surveys that examined factors such as job satisfaction, culture, rewards and recognition, and training and career development. Here are some tips from iSixSigma's best places to work.

Aligning Call Center Agent Goals with Customer Desires
J.Delayne Stroud, DeLeeuw Associates, iSixSigma Finance Newsletter and Website, January 12, 2009.
Even though customers are becoming more self-reliant through the use of technology, they still need assistance from time to time, which has led to an increased volume in call centers. Within these call centers, there may be no bigger improvement opportunity than the agent call handling process. In most cases, this is the only interaction the customer has with a company and they expect superior delivery in answering their questions and resolving their issues.

Creativity and Six Sigma: Try Doing Some River-Jumping
Detlev Ponnwitz, iSixSigma Europe Newsletter and Website, January 7, 2009.
Innovation is vital to a company's growth. Therefore it is sensible to establish a work environment that encourages people to be creative – a prerequisite to innovation. Introducing Six Sigma as a change initiative can help build that creative environment. But creating such a culture from scratch takes time. During the first years of a deployment, Six Sigma project leaders may not be able to wait for a creative environment to be established. To gain the full benefit from a Six Sigma project, they may have to introduce creativity themselves. To do that, they can harness tools, techniques and a way of thinking that lead to innovation.

 


Notable News



Top Ten Trends in Services Globalization
Tholons Globalization Newsletter and Website, January 2009.
The tsunami of the global economic downturn continues to impact the foundation of the outsourcing industry both near and long-term. Service providers are already feeling the effects of decreased margins and employee downsizing, while service buyers are reducing IT budget allocations for outsourcing engagements. This in turn has caused a cascading effect across the industry evidenced by drying pipelines, cancelled bookings and increased pressure to deliver value beyond cost. But these ten trends point to a more optimistic 2009.

Down To Business: Is Satyam Really India's Enron?
Rob Preston, InformationWeek Newsletter and Website, November 19, 2008.
"India's Enron" is how the country's commentators are (predictably) characterizing Satyam Computers following the resignation of its founder and chairman, B. Ramalinga Raju, amid revelations of widespread accounting fraud at the global IT service provider. Rob, having had the opportunity to interview Raju in July 2008, as well as former Enron CEO Jeffrey Skilling months before his company's fall from grace in 2001, feels more qualified than most to comment on that comparison, which is right on and dead wrong for several reasons.

How to Make Offshore Outsourcing Deals Withstand Crisis Situations
Dean Davison, CIO Newsletter and Website, January 16, 2009.
The Satyam fiasco. Economic recession and budget cuts. These 5 tips will help IT departments create effective contingency plans to transfer services back in house or to another service provider when the unexpected happens.

Contracts in BPO/KPO - Highlights of 2008
ValueNotes Outsourcing Weekly Newsletter and Website, January 28,  2009.
While first half of 2008 was about growth and opportunities, economic crisis and recession dominated the later half of 2008. Similar to most other industries, the impact of economic downturn has started showing up even in the BPO sector. As compared to 403 deals in 2007, ValueNotes Outsourcing DealTracker registered only 302 deals in 2008. The average deal value and duration also remain largely unchanged between previous and the current year.

File Transfer Solution Improves Business Process
Linda Tucci, searchCIO.com
Newsletter and Website, December 16, 2008.
Automating and improving business processes has catapulted to the top of many CIO agendas for 2009 as companies look to save money. For auction house Christie's International PLC, managed file transfer (MFT) software has fundamentally changed one of its most critical business processes: producing the more than 600 high-end catalogs that advertise its sales and educate customers.


Satyam Scandal Fallout: Truth and Consequences
Anthony O'Donnell, Insurance and Technology, January 22,  2009.
The Satyam scandal may be a unique case, but insurers nonetheless are likely to require greater transparency from their offshore partners, especially for business process outsourcing.

Banks to Face Greater Scrutiny in 2009
Maria Bruno-Britz, Bank Systems & Technology, January 6,  2008.
As the new administration assumes power, it will move to stabilize the financial sector and prevent a repeat of the current financial crisis. But regulators must balance the need for more oversight with the need to promote healthy commerce.

Will a Smarter Banking Industry Emerge from the Crisis?
Katherine Burger, Bank Systems & Technology, January 8, 2008.
The credit crisis and related fallout have created a kind of "crisis of faith" across banking. But after the anger, sorrow and confusion, a smarter, stronger and more customer-focused banking industry could emerge.
 

 

Related Blog



Lean Six Sigma and Continuous Process Improvement in Outsourcing
Nari Kannan, Ajira Technologies, Inc. Sourcingmag.com
 

Some Recent Entries:

Data Quality more Important than Process Improvement Efforts
Systematic Process Improvement Vs Process Improvement Leaps
Barcodes are Your Best Friend for Process Improvement
Automate or Eliminate?
 


Book Reviews



Key Performance Indicators: Developing, Implementing,and Using Winning KPIs
David Parmenter, Wiley, 2007. Reader Reviews in Amazon.com.

Performance Dashboards and Analysis for Value Creation
Jack Alexander, Wiley, 2007. Reader Reviews in Amazon.com.

The Performance Management Revolution: Business Results Through Insight and Action
Howard Dresner, Wiley, 2007. Reader Reviews in Amazon.com.

Five Key Principles of Corporate Performance Management
Bob Paladino, Wiley, 2007. Reader Reviews in Amazon.com.


Notable Events

6th Procure-To-Pay Summit
February 23 - February 29, 2009, Miami, FL. IQPC


13th Annual American Shared Services Week
March 22 - March 27, 2009, Orlando, FL, IQPC

Gartner Business Process Management Summit
March 23 - March 25, 2009, San Diego, CA, Gartner

10th Annual Process Excellence Summit London
April 21 - April 22, 2009, London, UK. IQPC

10th Business Process Management Summit
April 27 - April 29, 2009, Miami, FL. IQPC

9th Annual Shared Services & Outsourcing Week
May 11 - May 14, 2009, Budapest, Hungary, IQPC


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