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Presented by:-Manoj Kumar SahuM.C.A. 5TH semesterB.I.T., DURG
What is outsourcing?Why do companies
outsource?Outsourcing in
INDIA.Advantages of
Outsourcing.Challenges for
outsourcing.
Outsourcing is a specialized service Where an external organization
manages, improves, redesignscreates low-cost, high-quality business
processes
for an existing business operation or function
Outsourcing - “the strategic use of outside resources to
perform activities traditionally handled by internal staff and resources” Dave Griffiths
Outsourcing is subcontracting a process, to a 3rd Party company being specialized in it.
Why Outsource?Provide services that are scalable, secure, and efficient, while improving overall service and reducing costs
Traditional role - reaction to problem Reduction and control of costs Avoid large capital investment costs Insufficient resources available
Modern role – business strategy Allows company to focus on their core
competencies Keeping up with cutting-edge technology Creating value for the organization and its
customers Building partnerships
system integration data network mainframe data center voice network, internet/intranet maintenance/repair applications development e-commerce end-user support system
Areas Clinic Preventive Care On-going support Enhancement Care
Benefits Savings of 25% - 40% Pay-per-gig pricing Off-site data storage Automated Free up server space
Legal Design Market Research & Advertising Health care Pharma ResearchManufacturing Transportation and LogisticsUtilitiesRetail ServicesFinancial serviceseGovernanceKnowledge Process Outsourcing
ITES : Information Technology Enabled ServicesSoftware development, Data entry, Programming, Web development services
BPO : Business Process OutsourcingCRM, Medical Transcription, Call Centers
KPO : Knowledge Process OutsourcingFinancial Analysis, Legal Services
Moving up the value chain
How important is it for India? Fastest growing Global Outsourcing Hubs in the world
During the last decade (1997-98 to 2007-08)23000 people to over a million $10 million to over $ 45 Billion
Controls 44% of the global offshore outsourcing market
for software and back office services Over 660 multinationals each bring $ 1 million annually to
India Emerged as one of the largest markets
outsourcing deals in the APAC region Revenue generating segments and industry
back office operations medical transcriptions insurance claims processing customer interaction centres content development banking and financial services telecom hi-tech
Genpact WNS Wipro BPO HCL Technologies
BPO Services ICICI OneSource IBM Daksh Progeon (Infosys) Aegis BPO Services EXL Service Holdings 24/7 Customer
NASSCOM report: Value of total BPO
market in 2005 estimated at $5.1 bn
Top 5 IT vendors have only 6.5% of the market
1/3 of the market to big BPO companies
1/3 to captives 1/3 to smaller set ups
Predicted consolidation
Client Acquisition and RetentionRetaining employeesProductivityQuality and compliance issuesResource and Skill GapsFundingEmerging Foreign DestinationsPhysical InfrastructureSmaller Firms Plight