GBS WORLD NEWS | WEEK 4 | JULY 2024
In the Philippines, over 600 BPO executives gathered for the 8th Contact Islands 2024 conference in Cebu, organized by the Contact Center Association of the Philippines (CCAP). The three-day event addressed industry challenges such as cybersecurity, AI, and upskilling. It aimed to foster partnerships, share knowledge, and discuss strategies for improving CX, with key topics including AI-driven CX, data protection, and industry trends.
Paris-based multinational IT services and consultancy firm, Capgemini, has secured a contract worth up to £574 million (US$741 million) with the UK tax collector, HMRC, to manage legacy tax systems until 2029. The deal covers the Enterprise Tax Management Platform (ETMP) and Enterprise Operations (EOPS), both running on SAP ECC 6.0, which exits mainstream support by 2027. This contract extends a prior agreement and builds on Capgemini’s long-standing relationship with HMRC, dating back to the controversial £10 billion Aspire contract initiated in 2004. The new contract includes operation, support, and change-management services.
Over in India, the Economic Survey 2023–24 was held in New Delhi, where Chief Economic Advisor V Anantha Nageswaran highlighted the country’s potential to become the world’s third-largest economy within a decade. Nageswaran believes this is driven by India’s youth population. However, he noted that AI might pose short-term challenges to India’s BPO sector by potentially slowing growth and threatening jobs. Despite this, AI’s long-term benefits for healthcare and education are promising. The survey projects a 7% growth rate for India, contingent on effective collaboration between government and the private sector.
In the latest BPO Bullhorn newsletter, Mark Angus of GBS.World highlights Africa’s rise as a key BPO destination. He notes the continent’s advantages, including significant cost savings (40–60%+), a skilled and multilingual workforce, and supportive policies. Angus reiterates that South Africa and Egypt are top choices for offshore CX delivery, with BPO job growth in Africa expected to surpass 1 million by 2030. The region is seeing increased investment and interest, fueled by events like the Elevate Africa Conference and emerging BPO hubs in countries such as Ethiopia and Liberia.
The U.S.-based IT giant, Oracle, agreed to a US$115 million settlement for a lawsuit accusing it of illegal data collection and third-party sales of personal information without consent. The lawsuit alleged that Oracle’s tracking technologies violated privacy laws. In response, Oracle shut down its AddThis tool and announced its exit from the ad tech business due to declining revenues and global privacy regulations. Oracle plans to delete customer data and end relationships with data providers by September 30, 2024.
Also in data privacy violations, a recent lawsuit has been filed against Patagonia, claiming the California-based retail giant used Talkdesk’s AI tools to intercept and record calls without consent, violating California privacy laws. Analysts view this case as a significant wake-up call for Contact Center as a Service (CCaaS) providers, who may face increased scrutiny over data privacy practices. The case highlights the need for transparency and could lead to more lawsuits impacting vendor–customer relationships. CCaaS providers are urged to review their data-handling practices and public testimonials.
