The document provides an overview of outsourcing, including its definition, types like BPO, KPO, and LPO, and the motivations for and risks associated with outsourcing. It highlights the benefits of outsourcing in terms of cost savings, flexibility, and access to skilled labor while addressing potential risks such as loss of control and communication barriers. Additionally, it discusses the trends in outsourcing, including reverse outsourcing and the future direction of the industry, particularly in India.

2. MADE BY : DEEPIKA OJHA

3.  Outsourcing
 Types of outsourcing
 BPO-Business Process Outsourcing
 KPO-Knowledge Process Outsourcing
 LPO-Language Process Outsourcing
 Location Analysis
 Outsourcing in India
 Reverse Outsourcing
 Future Trends in Outsourcing

4. What is outsourcing ?
 “Outsourcing refers to the practice of transferring
activities traditionally done within a firm to third
party providers within the country.”

 Definition :
 Outsourcing is a practice used by different
companies to reduce costs by transferring portions of
work to outside suppliers rather than completing it
internally.
 Outsourcing is an effective cost-saving strategy
when used properly.

5. Outsourcing - Typologies
• People , the facilities , the equipment &
technology transferred to service provider.Conventional
• Company buys new services provider (Make
Vs Buy)Greenfield
• Problem – Solving mentally. Outsource
Company & People both.
Tactical
• Structured Outsource , to align with companies
long – terms Process.Strategical

6. Motivation for Outsourcing
 Cost-Driven Outsource : Reduce & save cost
 Strategy- Driven Outsource: Focus on core-
competencies Functions.
 Politically – Driven Outsource: Outsource By
Public Organizations.

7. Outsource Decision Framework

9. Drivers Vs Risks
DRIVERS
• Cost savings
• Reduced Capital Expenditures
• Capital Infusion
• Transfer fixed costs to variable
• Quality Improvement
• Increased speed
• Greater flexibility
• Access to latest technology /
Infrastructure
• Access to skills and talents
• Augment staff
• Increase focus on core functions
• Legal compliance
• Better accountability / management
POTENTIAL RISKS
• Unrealized savings or hidden cost
• Less flexibility
• Poor contract or poor selection of
partner
• Loss of control/core competencies
• Power shift to supplier
• Losing customers ,opportunities .or
reputation
• Uncertainty /changing environment
• Poor morale/employee issues
• Supplier Problems(poor performance
, bad relations)

10. Types of outsource
BPO
BUSSINESS
PROCESS
OUTSOURCING
KPO
KNOWLEDGE
PROCESS
OUTSOURCING
LPO
LEGAL PROCESS
OUTSOURCING
OUTSOURCE

11. BPO-BUSINESS PROCESS
OUTSOURCE
 Business process outsourcing (BPO) is a subset
of outsourcing that involves the contracting of
the operations and responsibilities of a specific
business process to a third-party service
provider.

12. BPO CATGEGORIES
 Back- office Outsourcing : - it includes internal office functions
i.e.
 HR
 Accounting
 Finance / Payroll
 Front-office Outsourcing:- It includes customer related services
i.e.
 Tech support
 Contact –center
 marketing
Back – Office Front – Office

13. Outsourcing of business done within
companies own country
Outsourcing of business done in
outside country
Outsourcing of business done with
Companies neighboring
countries
ONSHORE
OFFSHORE
NEARSHORE
KEY FACTORS-OUTSOURCING

14. BPO BUSINESS MODELS
Transactional
BPO
Transactional BPO
handles one aspect of a
process only. The
customer has to carry out
a significant part of the
process in-house and
hence the customer owns
the risk of the process.
Also, outsourcing many
aspects of the process in
a transactional mode
leads to complex
fragmentation which can
pose as a threat to
productive delivery.
Niche BPO
A niche BPO carries out 3-
4 aspects of a process. A
niche BPO, which also
makes certain investments
in the customer's process,
aims at improving the
efficiency of the
process. The vendor in a
niche BPO works in close
coordination with the
buyer, sometimes seeking
the services of the
customer's employees.
Both the vendor and the
buyer share the risk of the
process.
Comprehensive
BPO
A comprehensive BPO
handles both
transactional and
administrative tasks in a
process and takes 70
percent responsibility of
the output. The vendor
purchases the buyer's
assets and also hires
most of its employees.
Comprehensive BPO has
bulk deals lasting for 7-
10 years.

15. BPO SERVICES
 Administrative support
 Customer relationship management
 Document processes
 Finance and accounting
 HR & training
 IPR documentation
 Legal Services –LPO
 Medical transcriptions
 Payroll Management
 Product Development
 Publishing
 Research & Analysis
 Sales & Marketing
 Security
 Supply Chain Management

16. KPO – KNOWLEDGE PROCESS
OUTSOURCING
 Knowledge process outsourcing (KPO)
describes the outsourcing of core information-
related business activities which are
competitively important or form an integral part
of a company's value chain . KPO requires
advanced analytical and technical skills as well
as a high degree of specialist expertise.

17.  Increase in specialized Knowledge
 Additional Value Creation
 Cost reduction
 Shortage of skilled labor
 Demand of Quality Product
 KPO firm require more skilled labors than BPO.
 Experts works in KPO keeps learning & have more incomes
than BPO
 In KPO Customer is amid the whole execution process
BPO VS KPO
Drivers of KPO:

18. KPO-Benefits Vs Risk
Benefit
• Cost reduction
• Shortage of skilled employees
• Provides many graduates at very
low cost
• High end services are provided at a
lower cost to decrease
unemployment and benefit their
economy
• Provide flexibility in terms of
HRM & time management
Risk
• Security- Classified information about
the company can be lost
• Key talent retention
• The character of the employee and the
quality of the work cannot be assured
• KPO is time consuming and cannot
provide a quick fix to the company
seeking immediate results.
• Lack of communication between
partners due to legal, language and
cultural barriers can lead to
complications

19. • Research & Development
• Financial Consultancy and Services
• Advanced Web Applications
• Business and Technical Analysis
• Learning Solutions
• Animation & Design
• Business & Market Research
• Pharmaceuticals and Biotechnology
• Medical Services
• Writing & Content Development
• Legal Services
• Intellectual Property (IP) Research
• Data Analytics
• Network Management
• Training & Consultancy
KPO SERVICES

20.  Legal outsourcing, also known as legal process
outsourcing (LPO) refers to the practice of a law firm or
corporation obtaining legal support services from an
outside law firm or legal support services company
(LPO provider).
 Legal Process Outsourcing (LPO) is the industry in
which in-house legal departments or organizations
outsource legal work from areas where it is costly to
perform, such as the United States or Europe to areas
where it can be performed at a significantly decreased
cost, primarily India. Legal Process Outsourcing is a high
end industry that has been growing rapidly in the recent
years.
LPO – LEGAL PROCESS
OUTSOURCING

21. Why Lpo?
Legal process outsourcing or LPO is the exporting of legal
services to low-wage markets overseas. An increasing number of
companies, large and small, are outsourcing legal work to
destinations across the globe.
A number of factors have fueled the legal process outsourcing
trend, including:
 Globalization
 Economic changes and the rising cost of legal services
 The growth of the Internet
 Increased automation of legal processes
 Developments in data security
 New technology tools
 Cost-Saving – biggest attraction

22. Lpo Methods
Various Methods to initiate Lpo Process
Direct Contract
This is the most
straight forward
means of establishing
contact. The firm
needing legal
services directly
approaches the legal
process outsourcing
vendor.
Managed
Outsourcing
This is a case where
the firm establishes
contact with a legal
process outsourcing
vendor and retains a
traditional law firm
to coordinate the
vendor's activities
and to ensure quality
control.
Required
Outsourcing:
This form of
outsourcing occurs
when the firm
mandates a certain
level of outsourcing
in the legal process,
either to reduce costs
or to fulfil statutory
requirements.
Multi-sourcing
This involves
segregating the work
assigned to LPO
providers in order to
reduce risk and take
advantage of each
provider's strengths.
This approach is
helpful in cases
where expertise is
required on matters
of jurisdiction and
merits.

23. LPO Services
 Contract Drafting Services & Contract Monitoring /
Management
 Document review / drafting, electronic discovery
 Medico-Legal Support Services
 Litigation- Document Management
 Bankruptcy Filings , Pleadings & Documentation
 Legal Research/ outsourcing/publication
 Paralegal Support Services
 Patent drafting
 Simple legal filings
 Proof reading
 Legal billing activities like preparation of invoices,
collation of time sheets etc.
 Intellectual property research--substantive and
administrative
 Administrative and secretarial activities like
following up with clients, etc.

24. Outsourcing Services

25. Location Analysis
 Countries which are attracting for
Outsourcing Destination:
0%
10%
20%
30%
40%
38%
6% 5% 5% 5% 5% 4% 4% 4%
Outsourcing Destination

26. Outsourcing In India
 Why India most Preferred?
India produces over 75,000 IT graduates and 20 lacs
English-speaking graduates annually.
The government favors IT foreign ownership and
imposes no export taxes.
In India with redundant telecom and utility
infrastructure, there is very good reliability within India's special
IT parks.
In India Application development, maintenance,
financial processing. Experts see India becoming a hotbed for
more critical analytical jobs.
Labor Pool
Knowledge full /
Expertise
Government
Policies
Infrastructure
Typical salaries range from $5,000 to $12,000 for
technical staff, while back-office salaries range from $3,500 to
$7,500.
Cost Benefits

27. Top Outsourcing IT Companies
24 / 7 Customers
APTARA
(TECHBOOKS)
Evalueserve
EXL Service
Genpact
Pangea3
WNS Global
Services
ICICI OneSource
Wipro BPO
Tata Consultancy
Services(TCS)
HCL BPO
IBM DAKSH
ACCENTURE
COGNIZANT
Firstsource
Solutions
Bodhi Global
Services (P), Ltd.
Clutch Group.
Cobra Legal
Solutions, LLC.
CPA Global Ltd.
Integreon Managed
Solutions, Inc.
Mindcrest.
Trustman
KPO
BPO LPO

28. SWOT Analysis in India
•
•Solid History of
software development
•English Proficiency
•Government Support
•Process and Quality
Focus
•Skilled, Educated
Resources
• Entrepreneurialism
Strength
• Infrastructure
•Cultural Differences
•Distance from US
•Feud over Pakistan
•Legal System
Weakness
• BPO and Call
Centers
• Expansion of
Existing
Relationships
•Emerging Chinese
Market
•Indian Domestic
Market Growth
Opportunities
• Competition for
Resources
•Over Promise/Under
Deliver
•Rising Costs
•Competition from
Other Countries
•Corruption, Piracy,
Trust
Threats

29. Reverse Outsourcing
 ‘Reverse Outsourcing’ is the latest trend in outsourcing.
Now ,those countries companies which are earlier chosen for
outsourcing like India & other Asian countries will now
create jobs in the western countries
 This phenomenon which is gathering pace in recent times is
known as ‘Reverse Outsourcing’ or the trend of Indian ITES
and BPO companies opening offices in the US and Europe
to outsource there work some are
 TCS
 WIPRO
 HCL

30. Outsourcing: Who’s Benefit?
“Even the harshest
critics of
outsourcing agree
that it can benefit
the firm itself;
after all, the firm
wouldn’t choose
buying over
making unless it
saved money.”

32. Future Direction -
outsourcing
 High Competition – market
 More offshoring outsourcing
 More nearshore outsourcing
 In Bpo:
 Cost savings is one of the most important drivers now.
Information security, execution capability and
financial stability are important considerations while
selecting a vendor.
 Latest trend of offshore insourcing , in which firms
establish their own offshore captive centers. These
captive centers are generally shared service centers
and allow the firms to retain control over the
processes.

33. Twitter connect @Ojha_Deepika
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