GBS WORLD NEWS | WEEK 4 | NOVEMBER 2023
The ongoing conflict between Israel and Hamas is impacting business process and IT outsourcing (BPO/ITO) service delivery in both Israel and Palestine – and yet industry operators remain resilient. GBS.World released an article assessing how this situation has disrupted operations in key sectors, including IT and high-technology industries. The article highlights the interconnected nature of global business services and the potential ramifications of geopolitical tensions on the industry.
Also, in the wake of the Israel-Hamas conflict and the Russia-Ukraine war, there has been a surge in online misinformation. In response, former Meta and Google engineers are launching startups to tackle this challenge. These ventures, based in the US, aim to provide advanced content moderation technologies to various online platforms. This reflects a growing need for effective trust and safety solutions in the digital realm, underscoring the escalating complexity of managing online content, especially in times of geopolitical unrest.
BPO giant Capita plans to cut 900 jobs, primarily in the UK. This decision is part of a broader strategy to save £60 million annually from 2024, following recent financial challenges and a costly cyber-attack that cost the business approximately £25 million. The London-listed firm – employing 43,000 globally – is focusing on strategic realignments to enhance efficiency.
In more positive UK news, British Gas is set to hire over 700 employees for its UK call centres to provide enhanced customer support, especially for those struggling with energy costs. This initiative aligns with Centrica’s (parent company of British Gas) commitment to bolster UK-based operations and provide comprehensive support to customers amid the challenging energy landscape.
Over in Fiji, the BPO sector is projected to grow substantially, with market-value predictions of US$300 million in the next 24 months. Governor Ariff Ali of the Reserve Bank of Fiji anticipates significant job creation, with the total number expected to rise to 5,000 by the end of the year. This expansion reflects the increasing global diversification of the BPO industry, offering new opportunities for economic growth in various regions.
In AI news, OpenAI has experienced a tumultuous week. Sam Altman, the CEO of the global AI research lab based in California, was reinstated after a surprising dismissal last week. The dismissal caused internal chaos and over 700 staff members reportedly threatened to quit, in solidarity with Altman. His return, supported by Microsoft CEO Satya Nadella and a new board, marks a significant turnaround for the AI firm, valued at US$90 billion
A new report on the global supply chain management BPO market has been released by research firm Future Market Insights. Projected to reach over US$73 million by 2033, the market is expanding at a 9.7% CAGR. This growth is fueled by the rising demand for efficient supply chain processes and the adoption of technologies like AI and blockchain. Key players are focusing on innovation and strategic alliances to optimize operations and address security challenges in this evolving sector.