The document discusses two IT business models: the on-site model and the off-site/offshore outsourcing model. It provides rationales for each model and how they emerged based on changes in technology and business needs. The document also discusses the emerging global delivery model and trends in offshoring such as India's dominance in the offshore market and emerging competition from other countries. Statistics on the growth of the IT and BPO industries worldwide are presented.

1. BY:CJ ON-SITE & OFF-SITE IT BUSINESS MODELS 06/05/09

2. Contents 06/05/09 ON-SITE AND OFF-SITE MODEL 1 2 RATIONALE OF TWO MODELS 2 EMERGING MODEL- GLOBAL DELIVERY MODEL 3

3. Contents 06/05/09 ADVANTAGES OF INDIA AS AN OFF–SHORE DESTINATION 5 6 EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION 5 3 4 STATISTICS OF IT & BPO ACTIVITIES WORLD-WIDE 4

4. ON-SITE AND OFF-SITE MODEL 06/05/09 ON-SITE MODEL OFF-SITE MODEL

5. RATIONALE OF TWO MODELS ON-SITE MODEL: Prior to dot-com boom (1996-97) Lack of Standards for communication. Also Communication being expensive and unreliable. Eg; Long distance call being $2. Today it is virtually free Lack of network infrastructure. Comfort level between vendor and client. 06/05/09

6. RATIONALE OF TWO MODELS (..contd) OFF-SITE MODEL: After Dot-com boom. Had proper Communication Standards and excellent network infrastructure. Dot-com Bust (after 2000) Meant more cost-cuttings. Solution was to outsource/off-shore. Enabled delivering equally good quality at lower cost. 06/05/09

7. EMERGING MODEL- GLOBAL DELIVERY MODEL 06/05/09

8. RELATIONSHIP BETWEEN TWO TEAMS EMERGING MODEL- 06/05/09

9. INDIAN IT SERVICES OFFSHORE PENETRATION – CURRENT AND FORECAST (BILLIONS) 06/05/09 Source: Pacific Crest Securities, “Industry Overview,” February 27, 2007 (based on NASSCOM-McKinsey Study 2005)

10. AN OVERVIEW OF OFFSHORE MARKET 06/05/09

11. AN OVERVIEW OF OFFSHORE MARKET(..contd) 06/05/09

12. ADVANTAGES OF INDIA AS AN OFF–SHORE DESTINATION THE INDIA STORY: Perhaps the only country to have benefitted from the dot-com burst. Second Buyer. IIT and other premier education institutes. Y2K 06/05/09

13. THE INDIA ADVANTAGE 06/05/09

14. EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION 06/05/09 INDIA CHINA PHILLIPINES RUSSIA MEXICO

15. EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION 06/05/09 TransCrit – Offshore IT Consulting-2003

16. BIBLIOGRAPHY Friedman, Thomas L. The World is Flat . New York: Farrar, Strauss and Giroux, 2005. Case: “vCUSTOMER: ESTABLISHING A GLOBAL FOOTPRINT”. “ What Makes Offshore IT Different?“ Transcrit 24 August 2008 <http:// transcrit.com>. 06/05/09

17. BIBLIOGRAPHY (..contd) “ The Art of Globalization-Opportunities and challenges in an evolving market.“ neoIT 24 August 2008 <http:// neoit.com>. “ Global delivery model.&quot; 24 August 2008 offshore-softwaredevelopment <http://www.offshore-softwaredevelopment.com/global-delivery-model.asp>. 06/05/09

18. Thank You ! 06/05/09