2. Introduction
Information • The practice of subcontracting a
company’s computer or internet related
Technology such as programming work, to outside
Outsourcing and especially foreign companies.
• Outsourcing services/products from
Offshoring “any country other than your own”.
• Outsourcing of processes that can be
Information enabled with information technology
Technology and covers diverse areas like
Enabled Service finance, HR, administration, health
(ITES) care, telecommunication,
manufacturing etc.
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3. In This Presentation
IT Outsourcing Evolution
Driving Factors of Outsourcing
Who should outsource?
When should you outsource?
Why India?
Benefits of outsourcing
Why outsource to RNF?
Future of Outsourcing
Conclusion
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4. IT Outsourcing Evolution
EDS
Regulated, then to non regulated industries
CSC
First to governments then to industries
ADP
Payroll, data center etc.
IBM
The “big bang” internationalization, etc.
Others
(Cap Gemini, Perot Systems, Digital Equipment Corporation, Anderson
Consulting, AT&T Solutions etc.)
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5. Driving Factors of IT Outsourcing
Concern for Cost and Quality
• Get existing services done for a reduced price at acceptable quality standard.
• Get new systems developed faster.
Breakdown in IT Performance
• Access to capabilities not otherwise available.
Intense Supplier Pressure
• To free internal resources for other purposes.
Simplified GM Agenda
• Concentrating on core competence.
• Improved Company Focus.
Financial Factors
• E.g. General Dynamics received $200m for transferring its hardware/software to EDS.
• Cash Infusion.
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6. Driving Factors of IT Outsourcing
Take advantage of offshore capabililties 6%
Share risks 3%
Resources not available internally 8%
Reduce time to market 6%
Reduce and control operating costs 17%
Make capital funds available 3%
Improve company focus 16%
Gain access to world class capabillities 12%
12
Function difficult to manage 3%
Free resources for other purposes 12%
Cash Infusion 2%
2
Asset Transfer 2%
Accelerate reengineeringbenefits 2%
No Response 5%
0 2 4 6 8 10 12 14 16 18
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7. Who should outsource?
You must venture into outsourcing if your answer is ‘yes’
to more than one of the following questions.
• Is my organization finding it difficult to meet customer needs?
• Does my organization want to remain small, but has a huge market presence?
• Does my organization have managers who are not sure about which product lines make/lose
money?
• Is my company experiencing constant challenges based on operational issues?
• Does my organization lack the expertise that would grow my business?
• Does my organization have important nonrecurring project requirements but no resources to
handle them?
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8. When should you outsource?
When you are losing focus on your core business because you are
too busy handling operations.
When you are facing a time, money and human resource
crunch.
When you have a mission-critical project that needs all your time and
energy, plus specialized skills which aren’t readily available.
When you have got to be the first into the market to gain the edge.
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9. Why India?
Abundant talent and cost — sustainable over the long term.
Over 3.5 million graduates and postgraduates that are added
According to AT annually to the talent base, no other country offers a similar mix
and scale of human resources.
Kearney's Global Services
Location Index 2011, a Excellent Telecommunications and IT infrastructure.
ranking of the top 50
most attractive
English-speaking urban population.
off shoring
destinations, India
continues to be the most Lower labor costs.
preferred destination for
companies looking to Governmental support and incentives.
offshore their IT and
back-office functions.
Post-1990 support for private enterprise .
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10. Benefits of Outsourcing
• Efficient labor at a low cost.
• Allows the company to turn fixed costs into variable ones.
• Reduces the burden of managing a large workforce.
• An opportunity to get a foot hold in any new country by making new clients, setting up
new business offices, understanding the domestic market and so on.
• Improve company focus.
• Gain access to world class capabilities.
• Free up internal resources for other purpose.
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11. Benefits of Outsourcing (contd.)
• Obtain resources not available internally.
• Accelerate reengineering benefits.
• Deal with a function that is difficult to manage.
• Make capital funds available.
• Share risks.
• Obtain a cash infusion.
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12. Why Outsource to RNF
• We offer best quality at most affordable prices.
• We believe in partnerships and mutual benefit and pride ourselves on
prioritizing customer satisfaction over everything else.
• Our team comprises of the sharpest minds from different verticals of the
internet domain ranging from designers & developers to web marketers and
analysts.
• Having worked for internet giants such as Google and AOL, we know of tips and
tricks unknown to the outside world, and we pass on the advantage to our
clients.
• We stand by our work and provide a comprehensive money back guarantee on
all our work.
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13. Conclusion
A survey conducted
By taking by Shreeveport Overall
advantage of the Management Outsourcing can
Outsourcing, while
Consulting showed
once considered an increasing number be viewed as a
option forced upon of sourcing • that most of the business tool which
expectations of the
IT by disgruntled options, IT groups outsourced companies brings about
executives, is now can now focus on were met and inductive
a golden building their sometimes even improvement in
opportunity for IT organizations' exceeded. business process –
• that the future of
Companies. revenue-generating outsourcing is secure
quickly and
aspects. and companies are cheaply.
likely to outsource
more especially in IT
sector.
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14. Thank You
Please visit www.rnftechnologies.com for more information.
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