Why outsource?


Published on

Published in: Technology, Business
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Why outsource?

  1. 1. “Why Outsourcing“ byRNF Technologies Pvt. Ltd. RNF Confidential & Proprietary
  2. 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 likeEnabled Service finance, HR, administration, health (ITES) care, telecommunication, manufacturing etc. RNF Confidential & Proprietary
  3. 3. In This PresentationIT Outsourcing EvolutionDriving Factors of OutsourcingWho should outsource?When should you outsource?Why India?Benefits of outsourcingWhy outsource to RNF?Future of OutsourcingConclusion RNF Confidential & Proprietary
  4. 4. IT Outsourcing EvolutionEDSRegulated, 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.) RNF Confidential & Proprietary
  5. 5. Driving Factors of IT OutsourcingConcern 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. RNF Confidential & Proprietary
  6. 6. Driving Factors of IT OutsourcingTake 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 RNF Confidential & Proprietary
  7. 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? RNF Confidential & Proprietary
  8. 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. RNF Confidential & Proprietary
  9. 9. Why India? Abundant talent and cost — sustainable over the long term. Over 3.5 million graduates and postgraduates that are addedAccording to AT annually to the talent base, no other country offers a similar mix and scale of human resources.Kearneys Global ServicesLocation Index 2011, a Excellent Telecommunications and IT infrastructure.ranking of the top 50most attractive English-speaking urban population.off shoringdestinations, Indiacontinues to be the most Lower labor costs.preferred destination forcompanies looking to Governmental support and incentives.offshore their IT andback-office functions. Post-1990 support for private enterprise . RNF Confidential & Proprietary
  10. 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. RNF Confidential & Proprietary
  11. 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. RNF Confidential & Proprietary
  12. 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. RNF Confidential & Proprietary
  13. 13. Conclusion A survey conducted By taking by Shreeveport Overall advantage of the Management Outsourcing canOutsourcing, while Consulting showedonce considered an increasing number be viewed as aoption forced upon of sourcing • that most of the business tool which expectations of theIT by disgruntled options, IT groups outsourced companies brings aboutexecutives, is now can now focus on were met and inductivea golden building their sometimes even improvement inopportunity for IT organizations exceeded. business process – • that the future ofCompanies. revenue-generating outsourcing is secure quickly and aspects. and companies are cheaply. likely to outsource more especially in IT sector. RNF Confidential & Proprietary
  14. 14. Thank YouPlease visit www.rnftechnologies.com for more information. RNF Confidential & Proprietary