Presented by:-Manoj Kumar SahuM.C.A. 5TH semesterB.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, redesignscreates 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 ResearchManufacturing Transportation and LogisticsUtilitiesRetail ServicesFinancial serviceseGovernanceKnowledge Process Outsourcing

ITES : Information Technology Enabled ServicesSoftware development, Data entry, Programming, Web development services

BPO : Business Process OutsourcingCRM, Medical Transcription, Call Centers

KPO : Knowledge Process OutsourcingFinancial 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 Services ICICI OneSource IBM Daksh Progeon (Infosys) Aegis BPO Services EXL Service Holdings 24/7 Customer

NASSCOM report: Value of total BPO

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 RetentionRetaining employeesProductivityQuality and compliance issuesResource and Skill GapsFundingEmerging Foreign DestinationsPhysical InfrastructureSmaller Firms Plight