Outsourcing is more than moving bodies. It is an art and science. It is yet not mastered with newer ideas, newer opportunities to learn and share for all alike arising on the go. So much revolves around this body - organisation structures, tools, technology, people, emotions, ideas and much more waiting to be taken to next level.

1. TurnThreats intoOpportunities
EMBRACE OUTSOURCING
Pankaj Sharma, COP

2. Modern strategies in outsourcing
Adjust todayAdjust today
Opportunities for small and mid-size businesses
Managing expectations
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3. Outsourcing
is the process of contracting an existing business
process which an organization previously
performedinternally to an independentperformedinternally to an independent
organization, where the process is purchased as a
service
In-sourcing
is when a company ceases to contract a business
function and begins to perform it internally,
opposite of outsourcing
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4. Off-shoring
▪ a company taking a function out of their business and
relocating it to another country whether the external country
is physically offshore or not
On-shoring
▪ is a company's decision to bring the function back from▪ is a company's decision to bring the function back from
overseas
Near shoring
Best shoring
Co sourcing
Global sourcing
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5. The usual –Cost,Quality andTime
Cost optimization vs.Cost reduction
Quality induction vs.Quality governance
Flexibility
The change – creating business of the futureThe change – creating business of the future
▪ Focus on core strengths
▪ Budget
The access – hunt for talent
Control
Decision making
Policies
Negotiating power
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6. Strategy
Review SelectionReview Selection
Delivery
Governance Transition
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7. Strategy Selection Transition Governance Delivery
Risk management
Relationship
management
Compliance
Control office
Reporting
Accounting (financial
management)
Simulation
Benchmarking
Modelling (Financial
andService)
Learning curve
management
Customer satisfaction
management
Resource
Management
Project Management
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8. Contract management
Performance management
Relationship managementRelationship management
Compliance management
Change management
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9. A sampling of software tool vendors addressing
different functional areas of governance
▪ Enlighta▪
▪
▪
▪
▪
Enlighta
Janeeva
Equaterra
Digital Fuel
Oblicore
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10. outsourcing – off shoring
development are the most frequently out sourced
TheC level suite discovers strategic importance of
Globalization of innovation: software and product
functions
entering new
processes)
locations and markets, identifying and
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functions
It is all about speed (new product development,
recruiting talent, new organizational structures and
Functional managers with entrepreneurial interface
Shift towards multiple vendors

11. and innovations like new business and reinvestment
for evolving new transformational organizational capabilities
Approach shift - Better, faster, cheaper to strategic
of skills
for some companies experience with off shoring became trigger
for evolving new transformational organizational capabilities
innovationprocesses
play, more opportunities
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for some companies experience with off shoring became trigger
such as flexible global functional centres and dis-aggregated
Smaller service providers getting more room to

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13. Outsourcing is mainstream and here to stayOutsourcing is mainstream and here to stay
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14. 27%
Small (<500 Employees)
43%
Mid-size (500-10,000employees)
Large (>10,000 employees)
43%
30%
Source: Duke UniversityORN survey report
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15. 40%
35%
30%
25%25%
20%
15%
10%
5%
0%
India US and Canada West Europe China E Europe and Russia LatinAmerica Asia & Australia Others
Source: Duke UniversityORN survey report
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16. Skills Strong communication
Business process analysis
Financial analysis
Negotiation
Project Management
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Knowledge and Experience Team Leadership
Program Management
Change Management
Capabilities Leadership
Cross-cultural aptitude
Adaptability
Influence
Innovation

17. SMB companies seem to be especially adept at
identifying and selecting specialized second-tier
locations and providers for off shoring software and
product development,while large companiesproduct development,while large companies
continue to prefer India
SMB companies’ primary focus is on off shoring
product and development projects. 64% of all off
shoring projects are still in this category
For small companies, increasing speed to market and
cost saving are key drivers
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18. Midsize companies are planning new off shoring
projects across all business processes and functions
but especially for IT infrastructure, software
development , contact centres and finance and
accounting processesaccounting processes
Small companies are the test tubes for new
organizational forms
Small companies are very adept in identifying specialized local
vendors while large companies prefer captive models and
international service providers
Small companies are inventing new organizational capabilities (e.g.
flexible global structures, use of web based collaboration tools)
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19. Buyers
Vice-
president
Providers
Director
Advisors
Analsyst Manager
outsourcing
organisations
Four tiers
within
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20. Unrealistic client expectations
Lack of focus on total process of outsourcing when
selecting (or providing) tools; defining and utilizing
tools is a joint responsibility for both providers and
customerscustomers
Underestimating scope of project
Quality focus missing during implementation of
strategy
Lack
Lack
of
of
buy-in from clients middle-management
agile and uniform repeatable processes
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21. Repeatable process Multi skills
‘
Challenges for professionals
Structured and restructured Strategically linked
Globalized
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