business processing outsourcing

8/9/2019 Business Processing Outsourcing

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PREPARED BY: -

SHREYAS F. MEHTA

6TH I.T. 01 IT 098

GUIDED BY: -

Ms. DEEPTI VYAS

I.T. DEPT.


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PURPOSE OF THIS REPORT:

Business people have always wondered about the technical aspect that brings a company(especially IT & ITES) based from the red to the black, from a low profit organization to ahealthy high profit one. BPO has appeared as the probable answer to most organizationsproblems.

In this report an understanding and explanation on what business process outsourcingis - with all its technical strengths and frailties. Thus the purpose of this report is to stress how,

when and why an outsourcing decision can be arrived at.

It has afforded huge business opportunities in the Software and Hardware sectors todeveloping countries like India. Today India has highly educated work force, convenient rupee-dollar rates and efficient infrastructure. BPO thrives technically on these factors and many moreleading to win-win situations at both ends.

And finally to sum it up the analyzed Business Process Outsourcing from the perspective ofboth the outsourcing organization as well as the outsourcing services provider.

Also an attempt to study what it takes to transform a transaction-based relationship tovalue-added strategic partnerships.

INFOSYS & WIPRO

MICROSOFT & IBM

MOTOROLLA & DELL


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INTRODUCTION:

What is BPO ?

is the transfer of technical operational responsibility (outsourcing) of a completebusiness process to an external service provider.

E.G.:- GENERAL ELECTRONICS OUTSOURCES TO INFOSYS

DEFINATION:

The transfer of an organization's entire non-core but critical business process/functionto an external vendor who uses an IT-based service delivery.

CONCEPT:

Outsourcing is an appropriately structured arrangement between an Organizationand an Outsourcing supplier to perform services.

A successful outsourcing project is only possible if the outsourcing decision hastaken into consideration all known costs and benefits associated with the project.

The terms IT Enabled Services (ITES) and Business Process outsourcing (BPO) areused interchangeably now days.

ITES is basically a subset of BPO. If process that is outsourced involves use ofInformation Technology it is called ITES else it just Business process outsourcing.

INFOSYS


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BACKGROUND:

Outsourcing as a concept is probably one of the oldest and most commonly practiced.

As the number and type of processes considered Non-core yet critical expand, the demand

for BPO is increasing.

At times these activities or business processes can be very, very critical to the survival ofan organization. But today, they are outsourced and outsourcing has proved to be beneficialas well.


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HR finance administration Are among the most

popular business processes to outsource.

NASSCOM


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Why BPO ?

Key reasons for outsourcing business processes include improvingservice levels, increasing focus on core business, exceptionally high-quality service providers, Improvements in communicationstechnology and supplementing IT resources.


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SOFTWARE INDUSTRIES HARD-WARE INDUSTRIES

OTHER INDUSTRIES

MICROSOFT

MOTOROLA


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Technical Pre-requisites for a successful BPO:

Regular communication is key to the success of any partnership.

1. Stage One - Project Team building and Transition Planning:

2. Stage Two - Process Mapping and Documentation:

3. Stage Three - Train the Trainer, Establish IT Systems: SUN-MICROSYSTEMS


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BPO EXECUTION FRAME WORK:

THE 5-PHASES OF BPO RELATIONSHIP

HEWLETT-PACKARD

SECURITY FEED-BACK


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Complete transfer of responsibility of business process.

Re-engineering of process to enhance effectiveness.

Consistent delivery, based on mutually agreed metrics and Services

Continuous improvement of process

ANALIZTION

PLANNING

TRANSITION

GOVERNANCE

IMPROVEMENT


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Identifying Agency Needs:-

framework for projects and activities.

TECHNICAL ASPECTS TO BE FOLLOWED WHILE OUTSOURCING:

Selecting the Vendor:-

provide the same attention as the in-house team.


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Experience and Expertise:-

relevant past experience and skill-sets

In-house facilities to meet the agencys needs:-

infrastructure

financially sound

HR Issues :-

quality of the assignment.

Ability to ramp up :-

flexible business model

major problems organizational, legal etc.


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Security: WHAT HAPPENS WHEN AN OUTSOURCING FIRMGIVE UP THE PROJECT IN THE MID-WAY........

instill a certain comfort level

maintenance of confidentiality business data.

ORCLE-INTERNATIONAL


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IT OUTSOURCING:

Though IT outsourcing has been happening for so many years, an increasedmomentum has been witnessed since the late 1990s due to the rise ofInternetand Communication technologies.

Several global giants from various industries have begun to realize theimportance of BPO and have started outsourcing their non-core businessfunctions.

MICROSOFT

INTERNATIONALTEXAS

INSTRUMENTS

INFOSYS WIPRO


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THE IT OUTSOURCING INCLUDES:-

Mainframe/Mid-range Systems:-

The upkeep and management of legacy systems are costlydistractions in every major mainframe and mid-range

computing platform, releasing the burden of managing thoselegacy systems and the expensive support facilities would bebetter devoted to patient services.

APPLICATION INFRASTRUCTURE:-

IT provides the hardware, operating system, database, securityand networking infrastructure that can account for as much as70% of the ongoing cost of ownership of key enterpriseapplications.

PCS & TCS

SATYAM COMPUTERS


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Distributed Systems: -

IT can keep you current with server and OS technology whilesimultaneously reducing administrative costs associated with

distributed systems.

IT can relocate the distributed systems to our data centers andprovide all the necessary support, from security to redundancy tosystem maintenance.

YAHOO.COM

GOOGLE.COM


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COST REDUCTION: -

dramatically improving workforce,

productivity and significant cost savings.

Outsource your Claims & Payroll Processing:-

ENTERPRISE HELP DISK: -

highly skilled,

technically proficient consultants making it an extravaganza of the call-center.


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TYPES OF BUSINESS PROCESS OUTSOURCING SERVICES:


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INDIA THE RISING BPO DESTINATION:

Comparing India with other BPO Destinations:


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INDIAN COMPANIES WILL GET THE MAXIMUM BENEFIT

INDIAN PROGRAMMERS WILL MAKE THE MXIMUM JOB-PROFESSION

INDIAN ORGANIZATIONS PROVIDING COR-NONCORE FUNCTIONALITY

WILL GET THE MAXIMUM TECHNICAL CONTRACTS.

INDIAN ENGINEERS WILL NOW BE ABLE TO ENHANCE AND IMPLIMENT

THEIR ENNORMOUS TELENT.


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THE STRENGTHS AND CHALLENGES FOR BPO IN INDIA:


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lower economic value, thus providing you huge cost benefit.

THE INDIAN-GOVT.S CLEAN-CHIT OF allowing American firms to establish

their own R & D centers will now ELIMINATE the THREAT for them to outsource

their business without having a BAND on BPO.

DEVELOPMENT CENTERS : MICROSOFT ORACLE IBMMOTOROLA G.E. DELL


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THREATES OF BPO:

Though the Communications Minister, Mr. Arun Shourie, hopes that there is no

immediate threat to the Indian IT sector on the curbs imposed by the US andother countries, India may experience a slowdown in the sector in the comingyears.

Many Indian IT companies currently depend on outsourcing activities fromabroad. The observation that foreign companies may become uncompetitive in theabsence of outsourcing to India need not be construed as a safe cushion.

Indian companies cannot depend on foreign entities forever. The large untappedareas in the domestic field should attract the concentration of Indiancompanies.

The forthcoming changes in the international arena coupled with domestic

compulsions may bring many such decisions, which may have adverse effects onIndia.

The leading IT players in India should give a serious thought to this aspect andwork overnight for tiding over any such problems, rather than contentiously sittinghappy with the present foreign assignments.


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TOWARDS THE TECHNOLOGY:

The vision is the application of Internet Technology tocreate value for our clients. Continuously expansion of BPOnetwork towards Asia, Europe, and the Americas by buildingstate-of-the-art Global-Link Development Center

(GLDC) facilities to simultaneously manage multi-taskprojects.

The expertise in this Global Communication Network hasled the world to discover innovative solutions to today's BPOdemands.

The continuously denotations of the resources toResearch &Analysis of the BPO market to better understandits future and to implement step-ahead measures toguarantee the best solutions in the world of InformationTechnology.

business processing outsourcing

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