The presentation hosts a general view on outsourcing concepts and various logistics.

1. By Gourab Paul.
Analysis Coding Testing

2. Outsourcing is the process of contracting a
business function to someone else. It is
sometimes confused with offshoring, though a
function may be outsourced without
Offshoring or vice versa. The opposite of
outsourcing is called vertical integration or
insourcing.

3.  30 yr something old industry.
 Started with Y2K problem solution, a
multibillion dollar project.
 Then euro currency conversion, legacy
modernization, enhancement, etc.

4.  IT solutions at drastically low costs.
 Reduces operational costs.
 Provides good quality talent.
 Talent pool in abundance in Indian sub
continent.
 High end up to date technical consultation at
low cost.
 Decentralization of IT systems management

5.  Indian companies
TCS , Infy, Wipro, Mahindra, HCL
 Foreign companies
IBM, Accenture, Capgemini , EDS , Cognizant

6.  100 b USD industry
 Global Fortune 500 , 1000 clients
 Around 50 big and medium players
 Turnover of average IT company multibillion
USD
 Average size of a IT company is nearly one
lakh heads.
 Industry doubled in last 10 years

7.  Onsite offshore delivery model.
 Part of team at client location and part at
vendor location.
 System study, project kickoff and offshore
delivery.
 365 days 24 x 7 service.
 Estimation, Contracts, analysis, design ,
coding , testing.

8.  Onsite team at client location – system study,
design, customer relations
 Offshore team – delivery management

9.  Development
 Maintenance
 Legacy modernization
 Product development
 Consulting
 Web
 Telecom
 Data warehousing and BI
 Testing
 CRM, SAP , PeopleSoft

10.  Market regions
Primarily developed countries like US, Europe, Japan
which are troubled with rising IT maintenance costs.
 Delivery regions
Primarily developing economies like India and other
Asian countries where there is abundant talented
manpower literate in IT and has low development and
management cost .

11.  Bureaucracy issues
 Lack of west like liberal culture
 US bias
 Non distributed business growth
 Lack of initiatives in core value areas like
products, engineering, high end consulting
 Resource from diversified social strata
 Corruption
 Focus on technology more than management

12.  Liberalization
 Distributed growth
 Proper management succession planning
 Incubation of value driven groups
 Harmonization
 Enhanced management focus
 Stringent audits

13.  Mobile computing
 Cloud computing
 Business analytics
 Web
 Innovation

14.  Rising costs
 Rapidly changing technology
 Need to catch up with global environment
 Quality manpower, issue of quality
deterioration due to size

15.  Satyam takeover by Mahindra
 Patni, igate merger
 Hierarchy revamp in Infy and Wipro.

16.  Proposal
 Knowledge transition
 Estimation
 RFP
 Function points
 Bench strength
 Utilization

17. People
Technology
Management

18.  The author is an entrepreneur in the field of
IT and has working experience in renowned
IT organization and with global clients.
 Email : pgourab2010@gmail.com