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Presented By: Manoj Kumar Sahu

This document discusses outsourcing, including what it is, why companies do it, and its advantages and challenges. Outsourcing involves contracting business processes to specialized third-party companies. Companies outsource to reduce costs, focus on core competencies, and gain access to new technologies and expertise. India is a major outsourcing destination, growing from $10 million to $45 billion in revenue over the last decade due to its large, skilled workforce and cost advantages. However, outsourcing faces challenges like client retention, employee turnover, and competition from other emerging markets.

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Arun Kumar
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59 views14 pages

Presented By: Manoj Kumar Sahu

This document discusses outsourcing, including what it is, why companies do it, and its advantages and challenges. Outsourcing involves contracting business processes to specialized third-party companies. Companies outsource to reduce costs, focus on core competencies, and gain access to new technologies and expertise. India is a major outsourcing destination, growing from $10 million to $45 billion in revenue over the last decade due to its large, skilled workforce and cost advantages. However, outsourcing faces challenges like client retention, employee turnover, and competition from other emerging markets.

Uploaded by

Arun Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Presented by:Manoj Kumar Sahu M.C.A. 5TH semester B.I.T.

, DURG

What is outsourcing?

Why do companies

outsource? Outsourcing in INDIA. Advantages of Outsourcing. Challenges for outsourcing.

Outsourcing is a specialized service Where an external organization manages, improves, redesigns creates low-cost, high-quality business processes

for an existing business operation or function


Outsourcing the strategic use of outside resources to perform

activities traditionally handled by internal staff and resources Dave Griffiths

Outsourcing is subcontracting a process, to a 3rd Party company being specialized in it.

Why Outsource? Provide services that are scalable, secure, and efficient, while improving overall service and reducing costs

Traditional role - reaction to problem


Reduction and control of costs Avoid large capital investment costs Insufficient resources available

Modern role business strategy


Allows company to focus on their core competencies Keeping up with cutting-edge technology Creating value for the organization and its customers Building partnerships

system integration data network mainframe data center voice network, internet/intranet

maintenance/repair
applications development e-commerce end-user support system

Areas

Clinic Preventive Care On-going support Enhancement Care

Benefits

Savings of 25% - 40% Pay-per-gig pricing Off-site data storage Automated Free up server space

Legal Design Market Research & Advertising Health care Pharma Research Manufacturing Transportation and Logistics Utilities Retail Services Financial services eGovernance Knowledge Process Outsourcing

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

How important is it for India?


Fastest growing Global Outsourcing Hubs in the world

During the last decade (1997-98 to 2007-08) 23000 people to over a million $10 million to over $ 45 Billion Controls 44% of the global offshore outsourcing market for software and back office services Over 660 multinationals each bring $ 1 million annually to India Emerged as one of the largest markets outsourcing deals in the APAC region Revenue generating segments and industry
back office operations medical transcriptions

insurance claims processing


customer interaction centres

content development banking and financial services telecom hi-tech

Genpact
WNS Wipro BPO HCL Technologies BPO

NASSCOM report:
Value of total BPO

Services ICICI OneSource IBM Daksh Progeon (Infosys) Aegis BPO Services EXL Service Holdings 24/7 Customer

market in 2005 estimated at $5.1 bn Top 5 IT vendors have only 6.5% of the market
1/3 of the market to big

BPO companies 1/3 to captives 1/3 to smaller set ups Predicted consolidation

Client Acquisition and Retention


Retaining employees Productivity Quality and compliance issues Resource and Skill Gaps Funding Emerging Foreign Destinations Physical Infrastructure Smaller Firms Plight

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