GBS WORLD NEWS | WEEK 3 | AUGUST 2024
In global news, the EU AI Act took effect on August 2, with a recent article by the IT education website, Techopedia, explaining why it is being compared to the General Data Protection Regulation (GDPR). The Act represents the most comprehensive AI legislation to date, with phased implementation through 2026. It introduces stringent regulations on AI use, including watermarking AI-generated images and compliance with EU copyright law. While aimed at safeguarding privacy, concerns arise over potential innovation stifling and the complexity of compliance for outsourcing services.
Cognizant Technology Solutions Corporation, the American multinational IT services and consulting company, has expanded its footprint in India by opening a new center in Indore, Madhya Pradesh. This expansion is expected to create over 1,500 jobs initially, with plans to grow to 20,000. The 46,000 square foot facility, located at Brilliant Titanium, will support hybrid work models. This expansion aligns with Cognizant’s strategy to grow in smaller cities across India, adding to its presence in Bengaluru, Bhubaneswar, Chennai, and more.
In Tokyo, Japan, Vietnam IT Day 2024 was held on 6 August. Japanese tech firms are increasingly outsourcing research, design, production, and testing work to Vietnam, making Vietnam Japan’s second-largest partner in digital transformation. Notably, Vietnamese IT firms have established a strong presence in Japan, with hundreds opening offices. The Post and Telecommunications Institute of Technology (PTIT) has also partnered with Japanese organizations to enhance IT training and co-operation.
In Ghana, the National Democratic Congress (NDC) plans to launch the “Digital Jobs Initiative” to create 300,000 tech jobs for Ghanaian youth as part of their youth manifesto. Key to this initiative is the “One Million Coders Program,” which aims to train one million young people in digital and coding skills. This effort targets reducing youth unemployment, currently at 14.7%, by preparing them for roles in business process outsourcing (BPO) and knowledge process outsourcing (KPO).
In India, the Central Bureau of Investigation (CBI) has booked 10 call center operators for allegedly scamming Amazon and Microsoft customers by posing as technical support. The operators deceived international customers with fake upgrade offers and pop-up messages, charging fees for bogus services. The FIR was filed after complaints from both companies. The CBI’s crackdown follows a court directive and highlights the ongoing battle against call center fraud targeting global tech users.
The global IT outsourcing market is projected to reach US$ 770.98 billion by 2032, growing at a CAGR of 9.3%, according to Straits Research. Key factors driving growth include cloud adoption, AI, and RPA, particularly in Asia-Pacific and North America. Large enterprises and the BFSI sector are major market contributors.
