Knowledge Process

Outsourcing

SECTION 1INTRODUCTION

Contracting with another company or person to do a particular function.Almost every organization outsources in some wayTypically, the function being outsourced is considered non-core to the business

For example:Most of the Banks are outsourcing security by doing contract with a company who manage “security Services”Another example, Some companies such as Insurance, schools, supermarkets outsource its janitorial and landscaping operations to firms that specialized in those types of work.Thus, the outside firms that are providing outsourcing services are third-party providers or “Service providers”

No longer a business, buzzword or jargonOutsourcing is nothing but a useful business toolGlobally outsourcing is seen as a viable solution to many operational issues in small and big companies.

Doing outsourcing right gives you maximum flexibility to focus on your core competence. You also get

to use your in-house resources to address priorities. Essentially

this allows your organization to more effectively and

efficiently use your resources (e.g., financial,

human and management). Outsourcing your non-core functions clears your path to address mission critical issues vital to your operational success.

1.OUTSOURCING ALLOWS TO FOCUS ON CORE VALUES

Startups and small businesses do not immediately have

access to skilled workforce. Or when the company is

big, shortage of skilled and experienced staff as a

problem is not remote. Even if staff may be existing, however,

the workforce do not always have the required skills

to keep pace with a rapidly evolving technology.Outsourcing offers the best solution to access skills and recruit staff that are difficult to recruit and retain. With tactical

outsourcing, there is an immediate solution available to fill the need for new staff when opening up

new services.

2.OUTSOURCING GIVES YOU ACCESS TO HIGH VALUE TALENTS & SKILLS

When budget is short, your company may not be able to broaden your market, expand, and focus on

core competencies to the fullest. With outsourcing, your

company get the flexibility to decide which of

your functions or operations you can perform in-house and

which ones to outsource. With outsourcing,

you also reap the benefit of capital and recurring cost reduction.

3.OUTSOURCING GIVES YOU ABILITY TO CUT COST

Outsourcing gives you the ability to make sound decisions about how to conduct your business, even on

how best to approach your delivery of your company’s services to all your stakeholders.

During peak loads, outsourcing is highly helpful in filling in the gaps to the level of equipment and

needed staff. Meeting normal demand but still maintaining

good customer service can be supplied by

outsourcing staff during peak periods. Outsourcing

comes in handy in such situations, when demand for flexibility is needed.

4.OUTSOURCING IMPROVES SERVICE QUALITY

To keep up with fast pace changes in technology, start-ups and small companies can

lookup to outsourcing for help. Besides the cost of

outsourcing, it is your outsourcing partner who

usually invest and required new technological

resources to match clientele's operational needs. Sometimes too it is the outsourcing partner who even surpasses his customers in keeping pace with and implementing new technology.

5.OUTSOURCING GIVES ACCESS TO TECHNOLOGY

Just five benefits are not all, there is to inspect new sign. An outsourcing contract, when done right, successful

outsourcing can be an effective resource savingand jouous endeavor .

Together we can help make you become that prompted

and hope to see you become that happy and satisfied Partner.

JUST 5 BENEFITS OF OUTSOURCING?

SECTION 2TYPES OF OUTSOURCING

TYPES OF OUTSOURCING

Outsourcing can be divided into two broad categories.

BPOKPO

BUSINESS PROCESSOUTSOURCING

BPO

In BPO (Business Process Outsourcing), a particular process task is outsourced. An example would be payroll. BPO work could be either back office related or front office work. By front office functions we mean customer oriented work like marketing, answering calls, technical support and so on, whereas internal work like billing and purchase come in the back office category.

Multimedia/ animation, book keeping, business consultancy, CAD/ CAM, call center, DTP, data entry, proof reading and editing, typesetting, handwriting services, marketing, medical billing and transcription, web design and development etcare all services that could be put under the BPO category.

KNOWLEDGE PROCESSOUTSOURCING

KPOAs is evident from the description, BPO activities involve carrying out standardized processes for the client. KPO or Knowledge Process Outsourcing typically calls for work that needs higher levels of involvement from the worker. The worker has to employ advanced levels of research, analytical and technical skills and has to make decisions of a higher order than BPO work. Examples are pharmaceutical research and development, patent/ intellectual property research, animation and simulation. Data research and analysis, legal services, content writing and development and database development services. KPO industry is less older and mature than the BPO sector.

Apart from BPO and KPO, ITO or Information Technology Outsourcing is another major category. ITO is usually overseen by the CIO of an organization. However the CIO is often called in to manage BPO and KPO operations where no significant IT skills are involved. This is due to the expertise the CIOs would have developed in outsourcing negotiations.

KPO Segments

Legal Services

Financial Services

Engineering and R&D

Market Research and

Analytics

Writing and Content

Development

Pharma and Biotech R&D

Healthcare Services

Education and Training

SEGMENTS OF KPOOUTSOURCING

TOPOUTSOURCING DESTINATIONS

Rank2014

Rank 2013 Movement Region Country City

1 1 - South Asia India Bangalore

2 3 +1 Southeast Asia Philippines Manila (NCR)

3 2 -1 South Asia India Mumbai

4 4 - South Asia India Delhi (NCR)

5 5 - South Asia India Chennai

6 6 - South Asia India Hyderabad

7 7 - South Asia India Pune

8 8 - Southeast Asia Philippines Cebu City

9 10 +1 Eastern Europe Poland Kraków

10 9 -1 Western Europe Ireland Dublin

11 11 - East Asia China Shanghai

12 12 - East Asia China Beijing

13 13 - Central America Costa Rica San José

14 15 +1 East Asia China Dalian (Dairen)

15 14 -1 East Asia China Shenzhen

16 17 +1 Eastern Europe Czech Republic Prague

17 16 -1 Southeast Asia Vietnam Ho Chi Minh City

18 19 +1 Southeast Asia Malaysia Kuala Lumpur

19 20 +1 South Asia Sri Lanka Colombo

20 18 -2 South America Brazil São Paulo

21 22 +1 Middle East and Africa South Africa Johannesburg

22 23 +1 Southeast Asia Vietnam Hanoi

23 25 +2 South Asia India Chandigarh

24 21 -3 South America Chile Santiago

25 26 +1 South Asia India KolkataSource: 1.http://www.tholons.com/Whitepaper_December_2013.pdf

2. http://www.ranker.com/list/the-top-ten-countries-for-outsourcing-business/mcorn310

3. https://clutch.co/top-outsourcing-countries

The global services market is highly dynamic environment and selecting the best outsourcing location for your operation can have a significant long-term impact on your business growth. From various sources, we can summarize top 5 destinations( cities).

1.India Bangalore2.Philippines Manila (NCR)3.India Mumbai4.India Delhi (NCR)5.India Chennai

Key statistics Areas for ranking considerationCost CompetitivenessResources & Skills Business & Economic Environment.