Case Studies on India Inc

8/8/2019 Case Studies on India Inc

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India Inc: Competitiveness

Editor: K. Ramanathan

ICFAI Business School

Simranjeet Singh

MBA 1stYear

Case Studies



Case Studies Selected For Discussiony Indian Outsourcing Story: Competitive advantages and core

compentenciesy Indian Outsourcing Story: Bangalore on the verge of being

´Bangaloredµ.



Indian Outsourcing Industryy Indian Outsourcing industry(IT & BPO) has been an

unqualified success turning India into the hub of back officeoperations for the world.

y

With total revenues of 58 billion US$ in 2009(BW) (BPO-11 billion US$-NASSCOM) it is largely responsible fordominant share of services in our GDP.(>50%).

y The BPO services market is highly diversified and companies

seek to exploit niche market opportunities with the help of India·s competitive and comparative advantages.



Indian BPOs Success story: Reasonsy Large pool of English-speaking, cheap labour force.y Time Differencey Lower infrastructure, communication costs.y Government supporty Abundant skilled labour for higher end services like

LPO,RPO.y Lower attrition rates.y Brand Equity of Indian IT industry



Reason Why offshoring makes sensey Factor cost advantagey Economy of scaley Business risk mitigationy Superior competencyy Alternative revenue model



Indian BPOs: Have we lost the plot?

y Indian BPOs are losing their sheen.y The problems plaguing the sector are

multiple and varied.



Indian BPOs: Future Growth Strategies

y Indian BPO industry is facing uncertain times with growthrates down to <20% in 2008 from past highs of 50% cagr(2002).

y We need new growth strategies.



Indian BPOs SWOT AnalysisStrengths:y Q ualityy Brand equityy Strong educational background of laboury Cheap factor costsy Government supporty High labor availabilityy Partial float of currency provides cushion and arbitrage

opportunities



Weaknessy Industry primarily focused on low margin work.y High attrition rates & other employee issuesy Perception of BPO being ´hackµ work.y Rising costs & salariesy Unreliable infrastructure & higher initial capital outlaysy Cultural differencesy Weak security processes and systemsy Red tape & legal hassles



Opportunitiesy Other linguistic markets like spanish, mandarin are

unexplored.y Higher end specialized sectors are largely untapped ie

opportunity to move up the value chain.y Domestic, regional and other ITES markets are less known

options waiting to be discovered.y New cities are emerging as lower cost centers for BPO

industry.



Threatsy Plenty of competitors waiting in the wings to grab a slice of

outsourcing pie, especially Philippines, China, Mexico etcy Protectionist backlash against outsourcing.y

Erosion of cost advantages due to rise in salaries and due tofall in salaries in the target markets.

y Erosion of brand equity due to security breaches andsubsequent legal constraints

y Geo-political uncertainty



Thank You

Case Studies on India Inc

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