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Group members


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What is Outsourcing?

Outsourcing -

y the strategic use of outside resources toperform activities traditionally handled byinternal staff and resources Dave Griffiths


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Reasons for Outsourcing

Traditional role - reaction to problemy Reduction and control of costs

y Avoid large capital investment costs

y Insufficient resources available Modern role business strategy

y Allows company to focus on their corecompetencies

y Keeping up with cutting-edge technology

y Creating value for the organization and itscustomers

y Building partnerships


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Why do Companies Outsource?


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Areas of outsourcing Information Technology Operations

Administration

Customer Service

Finance

Human Resources

Real Estate & Physical Plants

Logistics

Distribution

Transportation


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INDIA

MARKET OPPORTUNITY

MARKET:

2005: 35%

2006: 32%

2007: 38% compounded growth 20052009 : 27%

Population growth: 1.44%

Market size: $6,200 million

GLOBALCOMPETITIVENESS: Average

COMPANIES:

Cognizant, Infosys, Polaris, Satyam, Tata Consultancy andWipro


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INDIA

Airlines

General Electric

Third party BPO'sEntry ofIT majors

Emergence of Rural BPOs

Effect of global meltdown

on Indian BPOs

Challenges to outsourcing

services in India


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COMPANIES:

Cognizant, Infosys, Polaris, Satyam, Tata Consultancy and Wipro


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1. Cost-effective services

2. High-quality services

3.Time Zone

Advantages

4.Indias stable government

5. The Indian Advantage

6. Global organizations most preferred

choice


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ADVANTAGES

large labor pool

driven by a technology

intensive educational system

Indian firms also offertransparency in their books

and records

DISADVANTAGES

Satyam scandal

Indian companies alsostruggle with a very large

turnover rate

Strained infrastructure

Poor power capacity andinadequate connectivity

lack of privacy andsecurity


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CHINA


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ADVANTAGES size

low costs of labor

steady investment in thedevelopment of its

telecommunications

infrastructure.

DISADVANTAGES intellectual property issues

Copyright protections

inter-province competition


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Vietnam


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ADVANTAGES

Production cost

Strong labor pool

Stability

Government

incentives

DISADVANTAGES

Government related

Technology

infrastucture

Workforce

limitations

Scale


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Future of outsourcing

Creating a multi-polar world

Greater control in driving and designing deals

Utilize technology and outsource to remain

profitable. India will show excellence

Technological power will shift from the West to the

East

By 2015 China will be No. 1, India No: 2

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