
Avaya is in Danger of Imploding
Posted: December 21, 2011 in Products and ServicesTags: Alcatel-Lucent, Avaya, business health, business partners, Canada office, Chief Executive, client-server, cloud, Consultant, contact center, CRM, customer contact solutions, Dealers, hardware, hardware company, Kunnect, LBO, Leveraged Buyout, Occupy Wallstreet, on-premise, PBX systems, profitability, Silver Lake, software, telecommunications equipment, telecommunications industry, telephony solution, TPG Capital, voice-based market, Wall Street Journal

The Trojan nuclear power plant cooling tower goes down in a cloud of dust off of I-5 around Kalama, Washington. Is Avaya following suite?
It’s not my news announcement – it’s a growing buzzword in the contact center world today.
Brian J. Bitsky, a Contact Center / CRM Sales Professional from Denver, recently posted a discussion feed entitled “Report Claims Avaya on Path to Implosion.” Curiousity suddenly ensued because I always wondered why the behemoth hardware company is still standing despite all the competition in the pure cloud-based playing field – like the cloud-based hosted call center solutions company I represent. I went directly to the source of Brian’s blog and read a lenthy evaluation of Avaya by Jeff Hawkes, Consultant at SonicMG. Here’s the conclusion of his report:
While Avaya continues to dominate the market for on-premise PBX systems and other telecommunications equipment, it faces a long, steep road ahead to regain its business health and profitability. Of course Avaya is not alone. The entire telecommunications industry is under siege from over leveraged balance sheets and a downturn in demand for the core hardware they sell as evidenced by recent company announcements and news headlines like the one from the Wall Street Journal published on Friday November 11, 2011 describing the mounting pressure faced by the Chief Executive of Alcatel-Lucent to right the struggling telecommunications company after lowering its profit forecast for 2011.
In thinking about Avaya, I’m reminded of an old Wall Street saying: “cut your loses short and let your profits run.” With little in the way of profits besides “management oversight” and consulting fees, Avaya’s investors have been extremely patient. However, as the LBO (Leveraged Buyout) of Avaya nears its fifth anniversary, and the prospects of a large payday for TPG Capital and Silver Lake dwindle, expect the veneer of patience to start to wear thin. Avaya’s business partners would be well served to wise up and stop placating the hype. Dealers need to take an objective look at Avaya’s business results and begin formulating plans for their own business based on a number of possible outcomes. Ultimately, Avaya’s fate is in its own hands and the hands of its Business Partners. Everyone should understand the stakes are high and the margin of error is razor thin. Any deviation from here onward will only prove disastrous for all.
Going back to my cloud-based hosted call center solutions company (hint: it starts with a “K” on the left column – LOL!), its thrust is not the bang heads against a busines like Avaya; rather, it’s always focused on a cloud-based expertise for the voice-based market of customer contact solutions. It’s funny but somewhere in the midst of our Canada office hangs a not-so-noticable sign: “F**K_HARDWARE!” That’s precisely what the world is shouting today. Consumers have taken an “Occupy Wallstreet” stance to crappy client-server hardware and software that bleeds you to death with high cost of implementation, endless version upgrades and periodic maintenance. Many have already taken strides to go cloud computing. Is Avaya even seriously considering it?
Anyway, you still have to read the entirety of Jeff’s report (“Telecom Insights“) to understand and appreciate the future of hardware-based or premise-based computing and telephony solutions for businesses, worldwide.
Enjoy the good read!
Source: Telecom Insights | Brian J. Bitsky
Photo by delolds at Flickr.com
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UK Retailers Attracted to Payroll Outsourcing for 2012
Posted: December 19, 2011 in Global BPOTags: business cheques, business people, CEBR, Centre for Economics and Business Research, Christmas rush, cost-cutting, data capture, distribution, fraud, managed service, outsourced payroll, payroll outsourcing, payroll software, printing, processing, reporting, retailers, UK, United Kingdom

Using payroll outsourcing as a cost-cutting measure.
The Centre for Economics and Business Research (CEBR) in the United Kingdom (UK) has warned sales are expected to have fallen this month despite the Christmas rush. Retailers, expecting to lose trade after Christmas, may be attracted to using payroll outsourcing as a cost-cutting measure.
Payroll outsourcing could be a good way to cut costs during hard times, with chairman of the National Outsourcing Association recently explaining farming out such duties to third party personnel leaves business people with time to focus on vital core activities and customer satisfaction.
In general terms, this managed service involves the total management of an organization’s payroll operation, handling data capture, processing, printing, distribution and reporting. By using professional payroll services, business owners can trust that expert firms’ technologies will be able to spot various forms of payroll fraud. Moreover, if errors do occur – from fraud to delayed business cheques – the service provider will be responsible for remedying the situation or paying the price.
In a review of current trends in payroll software and services, fully-managed payroll service, otherwise known as outsourced payroll, not only is the biggest business growth area for payroll agencies, it is being achieved with little or no advertising. This “secret” service potentially puts the jobs of payroll professionals at risk.
Sources: Sage UK | PayPerShop Ltd | The Outsource Blog
Photo by guillaumebrialon at Flickr.com
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