Outsourcing

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In its efforts to cut costs and streamline operations, Ingram Micro has opted to outsource its finance and customer support functions to Progeon, a leading outsourcing service provider in various industries such as telecom, banking and insurance. The company has its offices in the US, India, UK and Czech Republic. The Santa Ana., Calif based multi-billin dollar distributor has selected Progeon after narrowing down their choice to two outsourcing vendors.
The provider will be managing back-office administrative functions such as finance, inside sales, claims management and technical support. The insides sales team support about 3 percent of their customer pool and hence there will be minimal or no impact to a majority of the customers. The customer call center has been outsourced to Philipines where the Ingram executives felt similar services were handled more efficiently.
Progeon plans to take up the $10mn a year contract by hiring about 400 professionals over the next couple of years for this project. Several teams will be undergoing a thorough knowledge-transfer session with Ingram executives streamlining business processes and suggested improvements. Ingram Micro will be running as business-as-usual while the transition is occurring and processes will be run in parallel to determine improvements and ensuring a smooth transition to the Progeon teams. The project will take up full momentum by the end of this year as soon as all preliminary administrative activities of the deal have been closed between the two managements.

Outsourcing