Structuring an Outsourcing Deal in This Era of Uncertainty in Europe
Economic changes have taken the global market by storm, and Europe is no exception. In this webinar, our analysts will discuss changes in enterprise expectations and the defining characteristics of an outsourcing deal in 2023 in Europe.
Join us to learn what an ideal outsourcing deal in Europe should entail in terms of offshoring, automation, pricing and cost savings, engagement models, and contract terms.
Our speakers will discuss:
Business expectations from outsourcing deals
How service providers are structuring deals to meet these expectations
How outsourcing pricing in Europe has evolved and its consequent trajectory in 2023
Who should attend?
Sourcing leaders
Category strategy leaders
GBS leaders managing IT and BPO outsourcing contracts
Do you know anyone who hasn’t had a frustrating experience because the contact center rep they interacted with didn’t speak their native language? We didn’t think so.
The truth is that while enterprises have multiple business reasons for establishing their contact centers in offshore locations in Eastern Europe, Latin America, and Asia Pacific, the reps’ language and communication skills often have a negative impact on the overall customer and brand experience.
And although many companies have developed their own solutions to assess candidates’ language capabilities, they’re plagued with multiple challenges, including:
Resource intensive: Developing language assessment solutions takes considerable time and resources. They need to be thoughtfully designed, particularly around the local nuances of the markets where they are being leveraged. This can escalate the development budget and timelines, and put an additional burden on L&D teams.
Lack of standardization: Most language assessment tests are developed by in-house experts in a specific region. This approach can be detrimental to organizations with operations in multiple geographies, because it lacks consistency across regions, and can leave gaps in the evaluation criteria.
Involvement of human judgment: Because humans are responsible for evaluating candidates, a lot of subjectivity comes into play. And human bias, whether intentional or not, can greatly reduce transparency in the candidate selection process.
Maintenance issues: The real value of these solutions depends on their ability to test candidates for unprepared scenarios. But regularly updating the assessment materials to keep the content fresh and reflect changing requirements further strains internal resources.
Third-party vendors’ technology-based solutions can help
Commercial language and communication assessment solutions have been around for years. But innovative vendors – such as Pearson, an established player in this market, and Emmersion Learning, which incorporates the latest AI technology into its solution – are increasingly leveraging a combination of linguistic methodologies, technical automation, and advanced statistical processes to deliver a scalable assessment that can predict speaking, listening, and responding proficiency.
For instance, technology-driven solutions may test candidates’ “language chunking” ability, which means their ability to group chunks of semantic meaning. This concept is similar to techniques that are commonly used for memorizing numbers. By linking numbers to concepts, a person can be successful in retaining large sequences of digits in working memory. Without conceptual awareness, memorization is hard.
During an assessment, through automation and AI, the candidate may be asked to repeat sentences of increasing complexity. Success in this exercise relies on the candidate’s ability to memorize complex sentences, which can only be done when they can chunk for meaning. A candidate’s mastery of an exercise to repeat sentences of increasing complexity is a great predictor of the candidate’s language proficiency.
Organizations that embrace technology-based solutions for language assessments can anticipate multiple benefits: reduced costs, decreased hiring cycle times, improved quality of hires, better role placement, freed time to devote to value-add initiatives, and improved customer experience and satisfaction. Ultimately, it’s a triple win for the organization, its candidates, and its customers.
For years, India has been the epicenter of offshore technology services delivery for U.S.-headquartered enterprises. But our Market Vista Annual Report 2019 and Predictions for Global Services Delivery Locations 2019 reports show that a host of factors are driving a much closer look at Latin American countries as a destination for the delivery of IT services.
So, what’s making Latin America click with companies of all sizes, including some of the world’s biggest brands, like Amazon, Facebook, Google, HP, Intel, and Microsoft?
Proximity with the U.S.
The time zone differences between India and the U.S. are impeding demand for agile development. But because Latin America and the U.S. share similar time zones, the delivery and client teams can collaborate in real time.
Availability of skilled IT professionals
Due to strong government and educational support, Latin American countries are producing an ever-growing number of talented professionals with relevant, and often advanced technology skill sets, like blockchain, artificial intelligence, and machine learning.
Rise in technology start-ups
The abundance of low-cost technical talent is driving a surge in Latin American country-based technology start-ups through accelerator programs such as 500 Startups, Techstars, and Y Combinator. Investors are also betting high on tapping the potential of technology start-ups in the region. For example, SoftBank Group in March 2019 announced a US$5 billion Innovation Fund, touted to be the largest-ever technology fund in Latin America.
Less competitive intensity
Although India is far more cost competitive than Latin American countries, competition in India is increasingly intense given that it is home to more than 1,100 shared services centers and thousands of service provider delivery centers. Because there are fewer service delivery centers in Latin America, competition for talent is comparatively lower, making it easier for companies to hire the best talent.
Language proficiency
Most Latin American countries have significantly improved in English language proficiency over the years. And their Spanish language skills are valuable to the U.S. market given the large Spanish population residing in the country.
What are the top five Latin American countries doing to advance their attractiveness to technology services clients?
Mexico — #1
Passed new regulation for its FinTech sector, which is the largest FinTech ecosystem in Latin America
Established INADEM to support establishment of start-ups
Launched 500 Startups Latin America, Startup Mexico, and Startup Weekend Mexico to develop tech start-ups
Launched the world’s largest free economic zone along the US-Mexico border to attract tech investments.
Argentina — #2
Passed the Entrepreneur’s Law, which accelerates businesses’ registrations
Launched programs such as Startup Buenos Aires and IncuBAte to support entrepreneurship
Provides free university education to everyone.
Brazil — #3
Established Start-Up Brasil, a federal program to support start-ups
Launched TechD, a public-private partnership, to fund emerging technology companies
Initiated a national plan on digital transformation, IoT, and information, communications, and cyber security strategy
Launched STEAM courses to develop a large pool of engineers and technical talent
Passed a law to hire temporary workers on a longer contract term.
Colombia — #4
Rebranded Colombia as a technology center, and offers tax incentives and a professional training program
Established a Ministry of Science, Technology, and Innovation, and a High Council for Innovation and Digital Transformation to support tech initiatives.
Chile — #5
Launched a centralized web system that allows one-day business registrations
Established Start-Up Chile to support development of start-ups and boost the local tech ecosystem
Launched a tech visa facility to help technology talent and investors acquire a visa in 15 days
Introduced a blockchain-based platform for public payments.
With their strong trade links, nearshore advantage, and growing technology talent pools, several of the Latin American countries offer a multi-pronged value proposition to enterprises seeking an IT services delivery destination.
Global Sourcing Map 2018
India and the Philippines continue to dominate the global services market with followers in nearshore locations rapidly evolving
