business process outsourcing to ldcs - india
DESCRIPTION
BUSINESS PROCESS OUTSOURCING TO LDCs - INDIA. World Economic Geography Hippo Channel Present. OUTLINE. Outsourcing Trend. Terminations LDCs Outsourcing BPO Reality trend Kinds of service activity Destinations. TERMS. LDCs = Least Developed Countries. TERMS. TERMS. - PowerPoint PPT PresentationTRANSCRIPT
BUSINESS PROCESS OUTSOURCING TO LDCs - INDIA
World Economic Geography
Hippo Channel Present
OUTLINE
Outsourcing Trend• Terminations
LDCs Outsourcing BPO
• Reality trend Kinds of service activity Destinations
TERMS
• LDCs = Least Developed Countries
TERMS
TERMS
The process of arranging for sb outside the company to produce goods or services for that company
Do what you do best Outsourcing the rest
TERMS
BPO = Business Process Outsourcing Subset of outsourcing Involve contracting of the operations & responsibilities of
specific business functions / processes
Outsourcing: BPO Trend
• Kinds of service activity: call centers, computer network support, legal services, accounting, procurement, software development, R&D and engineering services
• Destinations (LDCs): India, Israel, the Philippines, South Africa
INDIA’S COMPETITIVE ADVANTAGE
1. Cost of production
30 to 40% of costs can be saved!
2. Workforce
Workforce
Large labor pool
Skilled and
talented workers
• 2nd most populous country•Working age: 64.3%
Skilled and talented workers
+ over 300 universities and 16,000 colleges providing broad education
+ the "English" Advantage
+ the presence of famous technical and business schools
3. Location:
• Time difference between the countries allows Indian companies to complete the task before people from US and European countries come into work
4. Faster and better communication:
• Advancements in calling, emailing and chatting
5. India has a Stable Government:
• Improving the infrastructure, communication, etc.
• Adopting IT outsourcing friendly policies in taxation, power, telecom, industrial parks, and special economic zones.
India enjoys the confidence of global corporations:
• 82% of the US companies ranked India as their first choice for software outsourcing
• Indian-Americans run more than 750 companies in America's Silicon Valley
India enjoys the confidence of global corporations:
• “You liberated your markets and now you have one of the 10 fastest growing economies in the world"
India: the most attractive destination for outsourcing
OUTSOURCING TO VIETNAM
Rank Country
1 India
2 Philippines
3 Ireland
4 China
5 Brazil
6 Poland
7 Viet Nam
8 Canada
9 Mexico
10 Russia
Top 10 Offshore Nations - Tholons/Global Services (2009)
ADVANTAGES DISADVANTAGES
Low Production Cost A strong labor Pool Stability Government Incentives Vietnamese diaspora: Vietkieu
Workforce limitationsTechnology InfrastructureScaleGovernment- related
2010 Region Country City Status 2010
1 South Asia India Bangalore ESTABLISHED
2 South Asia India Mumbai
3 South Asia India Delhi (NCR)
… EMERGING
16 South Asia Vietnam Ho Chi Minh City
….
21 South Asia Vietnam Ha Noi
60 Middle East and Africa
Turkey Istanbul
... ASPIRING
100
References
• Building a Future with BRICs: The Next Decade for Off shoring by Mark Kobayashi-Hillary (Kindle Edition - Sep 30, 2007)
• Outsourcing to India: The Offshore Advantage by Mark Kobayashi-Hillary (Kindle Edition - April 19, 2005)
• http://www.vietnam-business-blog.com• http://www.globalservicesmedia.com• http://www.businessweek.com• http://madaan.com/outsourcingindia.html
Thanks for your attention!
Group Members:
Nguyen Thi Van Anh BAIU09086
Nguyen Thi Hoang Dung BAIU09061
Nguyen Hoang Lam BAIU09008
Nghiem Thi Thanh Huyen BAIU09050
Vu Thi Hong BAIU09046