Outsourcing involves contracting non-core business functions to specialized third-party providers. Companies outsource to access scalable and efficient services, improve quality, and reduce costs while focusing on core competencies. India is a major global outsourcing destination due to its large skilled workforce and cost advantages. Key outsourced areas include IT services, BPO, KPO. While outsourcing provides benefits, challenges include client retention, employee turnover, and competition from other emerging low-cost destinations.

1. Presented by :- Manoj Kumar Sahu M.C.A. 5 TH semester B.I.T., DURG

2. What is outsourcing? Why do companies outsource? Outsourcing in INDIA. Advantages of Outsourcing. Challenges for outsourcing.

3. Outsourcing is a specialized service Where an external organization manages, improves, redesigns creates low-cost, high-quality business processes for an existing business operation or function Outsourcing - “ the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” Dave Griffiths

4. Outsourcing is subcontracting a process , to a 3 rd Party company being specialized in it.

5. Why Outsource? Provide services that are scalable, secure, and efficient, while improving overall service and reducing costs

6. Traditional role - reaction to problem Reduction and control of costs Avoid large capital investment costs Insufficient resources available Modern role – business strategy Allows company to focus on their core competencies Keeping up with cutting-edge technology Creating value for the organization and its customers Building partnerships

7. system integration data network mainframe data center voice network, internet/intranet maintenance/repair applications development e-commerce end-user support system

8. Areas Clinic Preventive Care On-going support Enhancement Care Benefits Savings of 25% - 40% Pay-per-gig pricing Off-site data storage Automated Free up server space

9. Legal Design Market Research & Advertising Health care Pharma Research Manufacturing Transportation and Logistics Utilities Retail Services Financial services eGovernance Knowledge Process Outsourcing

10. ITES : Information Technology Enabled Services Software development, Data entry, Programming, Web development services BPO : Business Process Outsourcing CRM, Medical Transcription, Call Centers KPO : Knowledge Process Outsourcing Financial Analysis, Legal Services  Moving up the value chain

11. Fastest growing Global Outsourcing Hubs in the world During the last decade (1997-98 to 2007-08) 23000 people to over a million $10 million to over $ 45 Billion Controls 44% of the global offshore outsourcing market for software and back office services Over 660 multinationals each bring $ 1 million annually to India Emerged as one of the largest markets outsourcing deals in the APAC region Revenue generating segments and industry back office operations medical transcriptions insurance claims processing customer interaction centres content development banking and financial services telecom hi-tech How important is it for India?

12. Genpact WNS Wipro BPO HCL Technologies BPO Services ICICI OneSource IBM Daksh Progeon (Infosys) Aegis BPO Services EXL Service Holdings 24/7 Customer NASSCOM report: Value of total BPO market in 2005 estimated at $5.1 bn Top 5 IT vendors have only 6.5% of the market 1/3 of the market to big BPO companies 1/3 to captives 1/3 to smaller set ups  Predicted consolidation

13. Client Acquisition and Retention Retaining employees Productivity Quality and compliance issues Resource and Skill Gaps Funding Emerging Foreign Destinations Physical Infrastructure Smaller Firms Plight