2. Outsourcing in SCM
• Outsourcing is defined as the contracting of one or more
of a company’s business processes to an outside service
provider to help increase shareholder value, by mostly
reducing operating cost and focusing on core expertise.
Or
• Outsourcing as an arrangement in which one group
provides services for another business that could also be
or usually have been provided in-house. Outsourcing is a
trend that is becoming more common in information
technology and other industries for services that have
usually been regarded as intrinsic to managing a
business.
3. Benefits of Outsourcing
• Ability to focus resources and attention on core business
processes.
• Reduced human resource management costs.
• Access as needed to specialized resources.
• Refinement of risk management, project management, and
service delivery abilities.
• Implementation of demand management and service delivery
disciplines.
• More accurate process management and support operations.
Etc.
4. Reasons of companies Outsourcing
• There are numerous reasons why outsourcing is
becoming a tradition. The simplest reason to outsource is
to improve administrative burdens and focus on strategic
areas.
• A non-outsourcing environment, executives spend 60%
of their time on administrative matter, while 30% on
tactical issues and this leaves only 10% of their time to
other activities.
• On the different when they switch to an outsourcing
environment, executives needs only 10% time for their
administrative activity while 30% for tactical and 60% for
other activities.
5. Organizations that outsource are seeking to realize benefits –
• Cost Saving
• Focus on core business
• Cost restructuring
• Improve quality
• Knowledge
• Operational expertise
• Capacity Management
• Enhance capacity for innovation
• Risk management
• Tax benefits
• etc
6. Outsourcing services in India
• Call Centre Services
• Data entry Services
• Engineering Services
• Healthcare Services
• Financial Services
• Software Development Services
• Photo Editing Services
• Web Analytical Services
• etc
