Outsourcing for Presentation

7/31/2019 Outsourcing for Presentation

1/21

Outsourcing occurs when a company purchasesproducts or services from an outside supplier,rather

than performing the same work within its own facilities,

in order to cut costs.Companies tried to identify or

develop a "core competence," a unique combinationof experience and expertise that would provide a source

of competitive advantage in a given industry.

Successful outsourcing requires a strong understanding

of the organization's capabilities and future direction.

Vendors providing outsourcing services are generallygrouped into two models:Business Process Outsourcing

(BPO) and Application Service Provider (ASP).


2/21

REASONS :

Cost savings -The lowering of the overall cost of theservice to the business. This will involve reducing thescope, defining quality levels, re-pricing, re-negotiation,cost re-structuring. Access to lower cost economiesthrough offshoring called "labor arbitrage" generated bythe wage gap between industrialized and developingnations.Focus on Core Business -Resources are focused on

developing the core business.Cost restructuring -Operating leverageis a measure

that compares fixed costs to variable costs.Outsourcing changes the balance of this ratio byoffering a move from fixed to variable cost and also bymaking variable costs more predictable.
http://www.answers.com/topic/operating-leveragehttp://www.answers.com/topic/operating-leveragehttp://www.answers.com/topic/operating-leverage


3/21

CONTINUE ..

Knowledge -Access to intellectual property and widerexperience and knowledge.Contract -Services will be provided to a legally binding

contract with financial penalties and legal redress. Thisis not the case with internal services.

Access to talent -Access to a larger talent pool and asustainable source of skills, in particular in science andengineering.Capacity management -An improved method of

capacity management of services and technologywhere the risk in providing the excess capacity is borneby the supplier.Improve quality -Achieve a step change in quality

through contracting out the service with a new servicelevel agreement.


4/21

CONTINUE .

Catalyst for change -An organization can use anoutsourcing agreement as a catalyst for major stepchange that can not be achieved alone.Enhance capacity for innovation -Companies

increasingly use external knowledge service providers

to supplement limited in-house capacity for productinnovation.Reduce time to market -The acceleration of the

development or production of a product through theadditional capability brought by the supplier.

Commodification -The trend of standardizingbusiness processes, IT Services and applicationservices enabling businesses to intelligently buy at theright price.


5/21

CONTINUE ..

Risk management -An approach to risk managementfor some types of risks is to partner with an outsourcerwho is better able to provide the mitigation.

Venture Capital -Some countries match government

funds venture capital with private venture capital forstartups that start businesses in their country.

Tax Benefit -Countries offer tax incentives to movemanufacturing operations to counterhigh corporatetaxes within another country


6/21

Types of OutsourcingTechnology Services Outsourcing- Companies

that utilize technology require sophisticated, quick-

responding computer systems and software that are

flexible enough to respond to the increasing capabilities of

technology and the rapid changes in business models.

Selecting the right technology partner is an integral part ofmany successful ventures.

Electronic Commerce ("eCommerce")

Infrastructure ("Networks")

Software ("Applications")

Telecommunications

Website Development & Hosting


7/21

CONTINUE..Business Process Outsourcing-As service

providers witnessed this development, they began to createwhole enterprises based on narrow business processes.The term "BPO" (Business Process Outsourcing") wascoined in about 1995 and became popular a few yearslater, accelerated by the explosion of Internet business.

1. Customer Contact (Customer Relations Management)

2. Equipment

3. Finance / Accounting

4. Human Resources

5. Logistics6. Procurement / Supply Chain Management

7. Security

8. Human Resources


8/21

CONTINUE.

Technology Services Outsourcing- Technologicalinnovations are fueling the rapid evolution of business andeconomic models. Companies have to adapt to thesechanges in order to thrive in a competitive market. Some ofthese technologies include electronic commerce, network

infrastructures, applications, telecommunications andwebsite development.

Knowledge Process Outsourcing -It is a moresophisticated level of outsourcing.It involves advancedresearch, analytical, and technical skills.Eg: Pharmaceuticalresearch and development, intellectual property research,content writing, and database development services.


9/21

CONTINUE.Business Process Outsourcing- BPO started back in

1995 during the advent of internet business. It involves

operational functions such as customer relations management,

equipments, accounting, human resources, logistics,

procurement, security, documentations, insurance, health care,

manufacturing, and media outsourcing. In BPO, specific tasks,especially those outside the core competency of a company, is

outsourced to a third-party firm.

Knowledge Process Outsourcing-

1. Market research and analysis These services help the

business extract useful information that reveals current trends

and provides inputs for decision-making .

2. Web-based market research These services help collect

information from different websites.


10/21

CONTINUE.Call center outsourcing-

1. Inbound call center services These typically include

answering services .

2.Outbound call center services These include services like

telemarketing services, lead generation services, and market

intelligence services.Technical helpdesk services This includes technical after-

sales support for products and services.

Data Entry Outsourcing-

1.Online data entry

2.Offline data entry


11/21

CONTINUE.4. IT Sector Outsourcing

5. Healthcare Sector Outsourcing-

6. Medical transcription servicesMP3, MPG, MOV, DSS,

WMA, etc

7. Medical coding and billing services

8. Teleradiology services

Financial Sector Outsourcing-

1. Accounting services

2. Bookkeeping services3. Financial analysis services


12/21

CONTINUE.Engineering Services Outsourcing- These include a

range of mechanical, civil, structural, and architecturalengineering services:

1.Computer aided design (CAD) services to develop prototypes

2.2D drafting services.

3.Conversion of paper drawings into a digitized format.

4.Design and analysis for residential and industrial buildings .

5.Architectural visualization services (3D rendering or 3D

animations) .

6.Services for evaluation and strengthening of deteriorating

structures .


13/21

Growth of BPO Sector in IndiaDuring the first half of 2007 was showing a moderate trend of

growth which is registered at 14%.Tech savvy professionals

Cost effectiveness

Superior competency

Business risk mitigation

24 hour service

Economy of scale

The trends in growth of the BPO sector in India are as follows:2003 - USD 2.8 billion

2004 - USD 3.9 billion

2005 - USD 5.7 billion


14/21

CONTINUE.Business process outsourcing services in India has

witnessed a growth of 70% a year and involves 100,000

people. The major Indian cities like Bangalore, Chennai,

Hyderabad, Kolkata, Gurgaon, New Delhi, Noida, Pune, and

Mumbai are well known as the business processing hubs in

India, offering valuable outsourcing services in India.Themain reasons for the growth of business process outsourcing

services in India are:

Cost Factor Advantage

Utilization ImprovementSuperior Competency

Economy of Scale

Business Risk Mitigation


15/21

CONTINUE..Providing inbound customer service, outbound collections,

telemarketing, invoice processing, transaction processing,finance and accounting services, and knowledge

management of complex technologies.

Growth of BPO Sector in India

BPOs Role in Indias Economic GrowthChallenges before BPOs in India

Wipro BPO in India

Progeon India

Capgemini India

Convergys India

IBM Daksh India

Cognizant India


16/21

CONTINUE..Intelenet India

BPO Jobs in India

Job Profiles In BPO Sector in India

Customer Service Executive

TelecallersAccount management

Support Cast

Telecom

E-Commerce

Call Center Operations

Help Desk


17/21

ROLECompany Name(Specialization)

Location Funding # of Emp

Clients

Hartron CommunicationsLtd

(Claims Processing,Transaction Processing,Health Insurance, MedicalBilling)

Gurgaon Self 200 Hospitals, Physiciansand Mortgage

companies

HCL Technologies BPOServices(Accounting, HR, ContactCenter / Customer Care,Transaction Processing,

Finance, Payroll, Admin)

Bangalore, Chennai, Noida[Delhi], Belfast [UK],Malaysia

- - British Telecom

Health Office(India)Pvt.Ltd(Medical Transcriptions,Medical Coding Services,Medical Billing)

Bangalore Self funded 100 Major US and Australianhospitals

Health Quist(Medical Transcriptions,Inbound / Outbound voice,Medical Coding Services,Medical Billing)

Pune, Iselin (US) Self 100 US Based clients


18/21

CONTINUECompany Name(Specialization)


Clients

Heartland

(MedicalTranscriptions)

Bangalore,

Coimbatore, Delhi

- 2000

Hero ITES(Tele-Marketing,Contact Center /Customer Care,Customer Acquisition,Lead Generation,

Data ValidationServices)

Gurgaon A division of The Hero Group

1000 Fortune 500 client inUS, UK and Australia

Hewitt OutsourcingServices{India}(HR)

Bangalore,Hyderabad, Chennai,Pune, Mumbai, Delhi

A joint venture of ViewIndia Enterprises(VIE) and Hewitt

Associates

210 Philips, IBM, ICI,Pfizer, BASF, Nokia,MindTree, BankMuscat

Hi-Tech CADServices (EngineeringServices, CAD/GIS)

Ahmedabad Self Funding 125 are from USA, UK,Canada, Australia andEuropean Countries
http://www.herogroup.com/http://www.herogroup.com/


19/21



Clients

Hi-Tech Export(Data Processing /

Management, DataCapture & Processing,Email Support, DataConversion, Data Entry,OCR Services)

Ahmedabad Private 200 70% from US, restfrom Canada, Europe

and Australia

Hi-Tech Infosoft(Accounting & Finance,DocumentManagement,

Animation, HealthcareClaims Processing,Medical Billing)

Ahmedabad Self 180 US, UK ANDAUSTRALIA BASEDCLIENTS


20/21



Clients

HLA InformationTechnologies Pvt Ltd(Data Processing /Management, DataCapture & Processing,Data Conversion,Document Imaging)

Chennai Sudarsan Group of Companies

100 Triveni EngineeringManagement & Services[Chennai],SISTechnologies [NewDelhi],, Sudarsan GroupCompanies, Eastern Clayand Ceramics Limited,West Cost Industrial

Gases Limited, SterlingGases Limited, TheStandard Furniture, SriKamakshi Agencies (P)Limited, K R V CardamomPlantation PrivateLimited, K R VInvestments (P) Limited,Madathil Investments,

Madathil Coffee EstatesPrivate Limited, KalliparaEstate Private Limited, SriAtham Estate PrivateLimited, Aries PlantationPrivate Limited, AriesAdvertising PrivateLimited, Mannur CeramicPrivate Limited


21/21

Outsourcing for Presentation

Documents