Microsoft CEO Says BPO Outsourcing Could Be the Next Big Thing
Posted October 09, 2018 07:16:10 Microsoft’s CEO, Satya Nadella, said on Tuesday that the technology giant would be outsourcing its software and services business to Convergent, an outsourced software and software-defined business, and its cloud services business.
Convergent is a $8 billion outsourcing firm based in Hong Kong.
It is headquartered in China.
Nadell said in a blog post that the company had already begun discussions with the Federal Reserve Bank of New York and with the Bank of China.
“Convergent has an opportunity to become the next big thing in outsourcing.
I am excited about its ability to deliver innovative products that are truly transformative,” he wrote.
NADELL: Convergent has a chance to become an important part of our world.
It’s not just an industry.
It has the potential to be the next great disruption.
It can be a very powerful, disruptive force.
As a CEO, you need to be very mindful of where you are, what you can deliver, what are the best ways to use your resources.
I’m optimistic that Convergent can be an important component of our future success, which is what we need right now.
The Federal Reserve has also opened a special review into the BPO outsourcing market, which could lead to changes to regulations in the coming months.
NINE IN THE MOMENT: New York’s regulators are considering a new rule that would impose limits on the amount of software and service companies can buy from each other and to make it more difficult for companies to move their business overseas.
A draft of the rule, obtained by Bloomberg, would limit software and other services companies to buying only the software they need and using a fee-based system.
It would require software vendors to pay for the cost of software that customers buy, including servers, storage, network equipment and other support services.
NATELL: We’re seeing a lot of consolidation in the BSO market.
A lot of the consolidation is coming from China, from India and other countries.
There are many consolidation companies in the marketplace.
I think it’s important to do the right thing and take advantage of that consolidation.
I know that the new regulations from the Federal Government will have a tremendous impact on our BPO marketplace.