outsourcing

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outsourcing

  1. 1. <ul><li>Presented by :- </li></ul><ul><ul><li>Manoj Kumar Sahu </li></ul></ul><ul><ul><li>M.C.A. 5 TH semester </li></ul></ul><ul><ul><li>B.I.T., DURG </li></ul></ul>
  2. 2. <ul><ul><li>What is outsourcing? </li></ul></ul><ul><ul><li>Why do companies outsource? </li></ul></ul><ul><ul><li>Outsourcing in INDIA. </li></ul></ul><ul><ul><li>Advantages of Outsourcing. </li></ul></ul><ul><ul><li>Challenges for outsourcing. </li></ul></ul>
  3. 3. <ul><li>Outsourcing is a specialized service Where an external organization </li></ul><ul><ul><ul><li>manages, improves, redesigns </li></ul></ul></ul><ul><ul><ul><li>creates low-cost, high-quality business processes </li></ul></ul></ul><ul><li>for an existing business operation or function </li></ul><ul><li>Outsourcing - </li></ul><ul><ul><li>“ the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” Dave Griffiths </li></ul></ul>
  4. 4. Outsourcing is subcontracting a process , to a 3 rd Party company being specialized in it.
  5. 5. <ul><li>Why Outsource? </li></ul><ul><ul><li>Provide services that are scalable, secure, and efficient, while improving overall service and reducing costs </li></ul></ul>
  6. 6. <ul><li>Traditional role - reaction to problem </li></ul><ul><ul><li>Reduction and control of costs </li></ul></ul><ul><ul><li>Avoid large capital investment costs </li></ul></ul><ul><ul><li>Insufficient resources available </li></ul></ul><ul><li>Modern role – business strategy </li></ul><ul><ul><li>Allows company to focus on their core competencies </li></ul></ul><ul><ul><li>Keeping up with cutting-edge technology </li></ul></ul><ul><ul><li>Creating value for the organization and its customers </li></ul></ul><ul><ul><li>Building partnerships </li></ul></ul>
  7. 7. <ul><li>system integration </li></ul><ul><li>data network </li></ul><ul><li>mainframe data center </li></ul><ul><li>voice network, internet/intranet </li></ul><ul><li>maintenance/repair </li></ul><ul><li>applications development </li></ul><ul><li>e-commerce </li></ul><ul><li>end-user support system </li></ul>
  8. 8. <ul><li>Areas </li></ul><ul><ul><li>Clinic </li></ul></ul><ul><ul><li>Preventive Care </li></ul></ul><ul><ul><li>On-going support </li></ul></ul><ul><ul><li>Enhancement Care </li></ul></ul><ul><li>Benefits </li></ul><ul><ul><li>Savings of 25% - 40% </li></ul></ul><ul><ul><li>Pay-per-gig pricing </li></ul></ul><ul><ul><li>Off-site data storage </li></ul></ul><ul><ul><li>Automated </li></ul></ul><ul><ul><li>Free up server space </li></ul></ul>
  9. 9. <ul><li>Legal </li></ul><ul><li>Design </li></ul><ul><li>Market Research & Advertising </li></ul><ul><li>Health care </li></ul><ul><li>Pharma Research </li></ul><ul><li>Manufacturing </li></ul><ul><li>Transportation and Logistics </li></ul><ul><li>Utilities </li></ul><ul><li>Retail Services </li></ul><ul><li>Financial services </li></ul><ul><li>eGovernance </li></ul><ul><li>Knowledge Process Outsourcing </li></ul>
  10. 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. 11. <ul><li>Fastest growing Global Outsourcing Hubs in the world </li></ul><ul><li>During the last decade (1997-98 to 2007-08) </li></ul><ul><ul><ul><li>23000 people to over a million </li></ul></ul></ul><ul><ul><ul><li>$10 million to over $ 45 Billion </li></ul></ul></ul><ul><li>Controls 44% of the global offshore outsourcing market </li></ul><ul><li>for software and back office services </li></ul><ul><li>Over 660 multinationals each bring $ 1 million annually to India </li></ul><ul><li>Emerged as one of the largest markets </li></ul><ul><li>outsourcing deals in the APAC region </li></ul><ul><li>Revenue generating segments and industry </li></ul><ul><ul><ul><ul><li>back office operations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>medical transcriptions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>insurance claims processing </li></ul></ul></ul></ul><ul><ul><ul><ul><li>customer interaction centres </li></ul></ul></ul></ul><ul><ul><ul><ul><li>content development </li></ul></ul></ul></ul><ul><ul><ul><ul><li>banking and financial services </li></ul></ul></ul></ul><ul><ul><ul><ul><li>telecom </li></ul></ul></ul></ul><ul><ul><ul><ul><li>hi-tech </li></ul></ul></ul></ul>How important is it for India?
  12. 12. <ul><li>Genpact </li></ul><ul><li>WNS </li></ul><ul><li>Wipro BPO </li></ul><ul><li>HCL Technologies BPO Services </li></ul><ul><li>ICICI OneSource </li></ul><ul><li>IBM Daksh </li></ul><ul><li>Progeon (Infosys) </li></ul><ul><li>Aegis BPO Services </li></ul><ul><li>EXL Service Holdings </li></ul><ul><li>24/7 Customer </li></ul><ul><li>NASSCOM report: </li></ul><ul><ul><li>Value of total BPO market in 2005 estimated at $5.1 bn </li></ul></ul><ul><ul><li>Top 5 IT vendors have only 6.5% of the market </li></ul></ul><ul><li>1/3 of the market to big BPO companies </li></ul><ul><li>1/3 to captives </li></ul><ul><li>1/3 to smaller set ups </li></ul><ul><li> Predicted consolidation </li></ul>
  13. 13. <ul><li>Client Acquisition and Retention </li></ul><ul><li>Retaining employees </li></ul><ul><li>Productivity </li></ul><ul><li>Quality and compliance issues </li></ul><ul><li>Resource and Skill Gaps </li></ul><ul><li>Funding </li></ul><ul><li>Emerging Foreign Destinations </li></ul><ul><li>Physical Infrastructure </li></ul><ul><li>Smaller Firms Plight </li></ul>

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