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On Site & Off Site It Business Models

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A presentation on outsourcing in India and world. What are the likely trends etc..

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On Site & Off Site It Business Models

  1. 1. BY:CJ ON-SITE & OFF-SITE IT BUSINESS MODELS 06/05/09
  2. 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. 3. Contents 06/05/09 <ul><ul><ul><li>ADVANTAGES OF INDIA AS AN OFF–SHORE DESTINATION </li></ul></ul></ul>5 6 <ul><ul><ul><li>EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION </li></ul></ul></ul>5 3 4 <ul><ul><ul><li>STATISTICS OF IT & BPO ACTIVITIES WORLD-WIDE </li></ul></ul></ul>4
  4. 4. ON-SITE AND OFF-SITE MODEL 06/05/09 ON-SITE MODEL OFF-SITE MODEL
  5. 5. RATIONALE OF TWO MODELS <ul><li>ON-SITE MODEL: </li></ul><ul><ul><li>Prior to dot-com boom (1996-97) </li></ul></ul><ul><ul><li>Lack of Standards for communication. Also Communication being expensive and unreliable. </li></ul></ul><ul><ul><ul><li>Eg; Long distance call being $2. Today it is virtually free </li></ul></ul></ul><ul><ul><li>Lack of network infrastructure. </li></ul></ul><ul><ul><li>Comfort level between vendor and client. </li></ul></ul>06/05/09
  6. 6. RATIONALE OF TWO MODELS (..contd) <ul><li>OFF-SITE MODEL: </li></ul><ul><ul><li>After Dot-com boom. </li></ul></ul><ul><ul><li>Had proper Communication Standards and excellent network infrastructure. </li></ul></ul><ul><ul><li>Dot-com Bust (after 2000) </li></ul></ul><ul><ul><ul><li>Meant more cost-cuttings. </li></ul></ul></ul><ul><ul><ul><li>Solution was to outsource/off-shore. </li></ul></ul></ul><ul><ul><li>Enabled delivering equally good quality at lower cost. </li></ul></ul>06/05/09
  7. 7. EMERGING MODEL- GLOBAL DELIVERY MODEL 06/05/09
  8. 8. RELATIONSHIP BETWEEN TWO TEAMS EMERGING MODEL- 06/05/09
  9. 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. 10. AN OVERVIEW OF OFFSHORE MARKET 06/05/09
  11. 11. AN OVERVIEW OF OFFSHORE MARKET(..contd) 06/05/09
  12. 12. ADVANTAGES OF INDIA AS AN OFF–SHORE DESTINATION <ul><li>THE INDIA STORY: </li></ul><ul><ul><li>Perhaps the only country to have benefitted from the dot-com burst. </li></ul></ul><ul><ul><li>Second Buyer. </li></ul></ul><ul><ul><li>IIT and other premier education institutes. </li></ul></ul><ul><ul><li>Y2K </li></ul></ul>06/05/09
  13. 13. THE INDIA ADVANTAGE 06/05/09
  14. 14. EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION 06/05/09 INDIA CHINA PHILLIPINES RUSSIA MEXICO
  15. 15. EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION 06/05/09 TransCrit – Offshore IT Consulting-2003
  16. 16. BIBLIOGRAPHY <ul><li>Friedman, Thomas L. The World is Flat . New York: Farrar, Strauss and Giroux, 2005. </li></ul><ul><li>Case: “vCUSTOMER: ESTABLISHING A GLOBAL FOOTPRINT”. </li></ul><ul><li>“ What Makes Offshore IT Different?“ Transcrit 24 August 2008 <http:// transcrit.com>. </li></ul>06/05/09
  17. 17. BIBLIOGRAPHY (..contd) <ul><li>“ The Art of Globalization-Opportunities and challenges in an evolving market.“ neoIT 24 August 2008 <http:// neoit.com>. </li></ul><ul><li>“ Global delivery model.&quot; 24 August 2008 offshore-softwaredevelopment <http://www.offshore-softwaredevelopment.com/global-delivery-model.asp>. </li></ul>06/05/09
  18. 18. Thank You ! 06/05/09

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