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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 predicted
growth in outsourcing,
TPI's research also		 
  
   
 
 
 
 
 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.
   		 
 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 ("captives")
rather than external
service providers. The
development is just one
of numerous trends,		 
 
Huron revenues surge as demand for services remains strong
 
  
   
 
 
 
    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
quarter of 2004. 		 
 
Sapiens reports reduction in losses despite decline in revenues
 
  
   
 
 
 
 
 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
reporting a 5% decrease