OUTSOURCING INDUSTRY IN INDIA

PROJECT GUIDE

PROF. NEHA MEHTA

PRESENTED BYJULKA MAANIK CHANDER

2014-2015

What is OUTSOURCING ?• Contracting with another company or person to do a

particular thing.• Almost every organization outsource in some way.• The function to be outsourced is considered non-core to

business.• The firm that are providing the outsourcing services aare

third-party providers.• Outsourcing takes many forms – most common forms are

ITO & BPO.• The process encompasses four stages.• Governed by Department of Information Technology under

Ministry of Communications and Information technology.

Five W’s of outsourcing.

• Who should outsource?

• Why should a company outsource?

• What should a company outsource?

• When should a company outsource?

• Where should a company outsource?

• Outsourcing industry has been responsible for boosting country’s economic growth

• Estimated to be worth about $52 Billion• BPO in India is worth $11 Billion• In 2010, a joint study conducted by GLOBAL

SERVICES , media platform for global BPO/IT industry and THOLONS – listed 6 indian cities among world top10 outsourcing destination

• Banglore, Mumbai, Pune, Delhi-NCR, Chennai & Hyderabad

• Employment to millions of people

Present scenario

Benefits

Cost SavingImprove Quality

Operational Expertise

Knowledge

Improved customer

satisfaction

Disadvantages

Compromising confidentiality

Loss of control

Yet to attain exceptinal

quality

Dependency on third party

Less than anticaipated

Savings.

Threats

• China has proved to be the major threat. Cities like Beijing, Shanghai, Shenzen & Dalian

• China industry is worth $150.2 Billion

• Philippines and Malaysia have also taken outsourcing in big way.

• Philippines got a pool of quality talent that can compete and even excel against India

• Rising bill wage of IT Professionals and global finincial meltdown is another threat

• The main difference between KPO & BPO is that BPO mainly deals with technical support, transaction processing, customer care, telemarketing etc and KPO is off-shoring of knowledge intensive business process that require specialized domain expertise.

• For such task KPO requires people with good education background & experts in a particular field

• KPO employees are expected to have better qualification and skills as compared to BPO counterparts

BPO to KPO : up in the value chain