2. What is
Outsourcing?
Outsourcing is the act of one company contracting with
another company to provide services that might
otherwise be performed by in-house employees.
Example: GM hires another company (e.g., AT& T) to
perform telephone related services for GM.
GM – Client
AT&T - Vendor
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5. Loss of Control
Selection of supplier
Too dependent on service provider
Loss of staff or moral problems
Time consuming
Problems With
Outsourcing (Cont’d)
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6. Provider may not understand business
environment
Provider slow to react to changes in
strategy
Increased cash outflow
Confidentiality and security
Problems With
Outsourcing (Cont’d)
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8. Organization
What are the impacts of outsourcing to
organization?
What are the benefits & risk?
Since outsourcing is considered is considered as
a strategic decision, so we need a strategy
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9. Performance
Organization want to assess whether outsourcing
is success or failure
By measuring factors such as efficiency ,
satisfaction , service quality , cost reduction and so
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10. Decision
To Evaluate decision there is a process which
examine factors such as personnel, economic,
control, organization & data characteristic etc.
Wrong decisions cause major technological &
economic setbacks
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11. Contract
Diff b/w successful outsourcing & failed
outsourcing depends on the selection of services
provider & the length of the contract and its
its management
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12. Relationship
Includes determinants of relationship
Continuity
Stage models for building & sustaining relationship
relationship
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13. Pros and Cons of
Outsourcing Research
Research companies bring an objective third
party view to the research, but they don't know
the ins and outs of your business like an internal employee might.
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14. Research professionals have up-to-date knowledge
of research and analysis tools, but they can't
can't always communicate the value or outcomes to
outcomes to management
as well as an internal employee might.
Outsourcing research can be a costly expense, but
decreased client headcount and various efficiencies
research companies can take advantage of an
effectively minimize costs while maximizing value.
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15. Research companies have the ability to contact a
high volume of customers, but they don't always
represent the client's company as well as the
company itself would.
Contracted research companies provide a quick turn
around for reports and help, but they might assign
junior (less experienced) project managers to write
to write the report.
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16. Conclusion
While hiring research companies, look for evidence of their
financial stability and quality standards. You should
consider the advantages and disadvantages of hiring large
vs. small and local vs. out-of-state research companies.
Other important considerations may be the amount of
experience within your industry, the type of research they
specialize in, or their policies for assigning project
management.
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19. Dell is a well-known brand of personal computers
which are sold directly to end-users.
Dell was the number one market share in USA and
globally for a long time.
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20. In order to serve a large number of customers
better and cut down costs, Dell decided to
outsource call centers in India.
Dell opened its call centers in-
Bangalore, Chandigarh and Hyderabad India to
provide technical support and to deal with the
increase in customer base.
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21. Reasons for entering India
Cheap and skilled labour.
Dell could gain more experience by working with
third party vendors.
Risk Mitigation/Distribution.Akshay Gautam
22. Challenges faced
Time consuming to find the right people
and teach them about Dell’s culture.
Language and cultural dimensions.
Difficulty in employee retention.
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23. The downfall
Although Dell has set up many call centers in
India and the market share of Dell has
continued to grow, customer satisfaction had
dropped due to poor quality of service
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24. Weak planning as Dell failed to plan for the call
centre in the long term.
Did not plan for training the staff with new
additions in Dell’s technology base.
Heavy accents, long delays in transfer of calls
lead to customer frustration.
Cultural issues.
CASE ANALYSIS
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25. Recommendations
Investigation and Pre-Outsourcing analysis.
Training employees to acquire the language
skills of the customer base.
Outsource manager to be appointed to
mange and monitor off shore outsourcing
projects.
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