Printable Edition Click Here  :  Subscribe   :   Page  2  :    :  September 2005 
  Go to page:  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16           Previous Page      Next Page
Offshore outsourcing to increase as UK plc turns to captives
 
 Offshore outsourcing is
set for continued
growth, according to the
latest research by TPI,
the sourcing advisory
firm.
   The research, based
on a survey of 100
senior UK executives
responsible for
outsourcing within large
companies, reveals that
81% plan to increase
their offshore
outsourcing over the
next 2-3 years, while
only 4% expect to
decrease it.
   Despite this		 
  
   
 
 
 
 
 
 
 ("captives") rather than
external service
providers. The
development is just one
of numerous trends,
including the relocation
of some offshored
services and a greater
diversity in viable
offshore locations,
which TPI concludes
signify increasing
maturity in the offshore
outsourcing market.
   Duncan Aitchison,
Managing Director,
International with TPI
commented: "The growth
of captives stems from		 
 companies now being more
aware of how to conduct
an offshore operation
and less reliant on
external service
providers. Buyers are
increasingly employing
hybrid models that mix
some outsourcing with
some 'do-it-yourself'
offshoring, and where
external providers are
engaged, it is for more
complex reasons than
simple cost reduction."
   To assess the growth
of offshore captives,
TPI compared employee
numbers at the top 20		 
 pure captive operations
in India with the total
number working there in
IT and business process
management. Their
analysis reveals that
the total headcount of
the top 20 captives has
increased by almost
three quarters in the
last year from 54,666 in
2003-04 to 95,225 in
2004-05. By comparison,
the total number working
in India in IT and
business process
management has increased
by just a quarter over
the same period. 		 
 predicted growth in
outsourcing, TPI's
research also reveals
that large companies
choosing to "offshore"
their IT and business
processes to low-cost
locations, such as India
and China, are
increasingly doing so
through wholly owned
subsidiaries		 
 
Huron revenues surge as demand for services remains strong
 
  
   
 
 
 
 
 quarter of 2004.
   Net income was $4.7
million, or $0.28 per
diluted share, compared
to $4.6 million, or
$0.32 per diluted share,
for the comparable
quarter last year. The
decrease in earnings per
diluted share reflects a
28.6% increase in
diluted shares
outstanding due to the
company's IPO.
   "Marketplace demand
for our services
continues to be strong,		 
 and this is reflected in
our very solid second
quarter results," said
Gary E. Holdren,
chairman and chief
executive officer, Huron
Consulting Group. "The
quarter was also
successful from a
recruiting standpoint as
we added managing
directors in our
Disputes and
Investigations, Higher
Education, Legal
Business Consulting, and
Strategic Sourcing		 
 practices."
   The group said both
its segments - Financial
Consulting and
Operational Consulting -
continued to show strong
improvements in revenue
growth. In the second
quarter, Financial
Consulting represented
59.2% of Huron's
revenues, and
Operational Consulting
represented 40.8%.
   Revenues recorded for
the quarter relating to
the May acquisition of		 
 specialized healthcare
consulting firm Speltz &
Weis LLC were $3.2
million.
   Billable consultant
headcount totalled 557
at June 30, 2005
compared to 488 for the
comparable quarter last
year, while the
utilization rate
increased to 76.1%, up
from 71.8% during the
same period in 2004.
   		 
 Huron Consulting Group
reported a 21.7%
increase in revenues for
its second quarter,
saying it is doing well
across all service
offerings.
   Revenues for the
quarter ended June 30,
2005 reached $50.5
million, up from $41.5
million for the second		 
 
Sapiens reports reduction in losses despite decline in revenues
 
  
   
 
 
 
 
 
 
 reporting a 5% decrease
in second quarter
revenues compared to the
first quarter of 2005.
   Announcing its
unaudited financial
results for the quarter
ended June 30, 2005,
Sapiens reported
revenues of $9.6 million
compared with $10.1
million in the first
quarter of 2005.
   Gross profit
increased to $3.8		 
 million from $3.5
million, with gross
profit margins
increasing to 39.9% from
34.6% in the previous
quarter.
   Net loss for the
quarter was reduced to
$1.7 million, compared
with a net loss of $2.6
million in the first
quarter of 2005, an
improvement of 34.6%.
   Itzick Sharir,
President and Chief		 
 Executive Officer of
Sapiens, commented:
"Though we report a
decline in our overall
revenues, it relates
primarily to our
traditional line of
business, where long
term projects have been
successfully implemented
and, as a result, we
face reduced revenue
streams. On the other
hand, we are glad to
announce that there was		 
 an increase in revenue
this quarter from our
customers in the
insurance industry, our
strategic focus.
   Sharir said the
company continues to
make progress in
penetrating the global
insurance marketplace
and soon it expects to
announce "several
important wins."
   		 
 Sapiens International
Corporation said it
increased its gross
profit and gross profit
margin and has
significantly reduced
both their operating and
net losses, while		 
  Consulting Times | Page 2 Previous Page     Next Page