REASONS FOR CHOSING THE TOPIC: Business process outsourcing is becoming increasingly important throughout the world.

BPOs may integrate the IT management and business operations at the same level; it is highly beneficial for business processes. Moreover it involves the strategy of core operations of European countries with developing countries to get beneficial of lower cost. The United States market has been above all profitable for Indian BPO companies because of the 12-hour service providence, low cost manpower and skilled expertise. Higher management have also understood that for lower operational cost, it is essential to outsource non-core function to outside expertise. For highlight this industry benefit the researcher has chosen this topic for his dissertation.

TOPIC
OUTSOURCING : A CRUCIAL ELEMENT FOR COMPANIES DEVELOPMENT WITH SPECIAL REFERENCE TO BPO-IT INDUSTRY.

WHAT IS OUTSOURCING?
Outsourcing can be defined as the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.: Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers, who become valued business partners. Sometimes outsourcing involves the transfer of employees from the company to the outsourcing company.

PROBLEM STATEMENT
This project identifies what problems and benefits existed with outsourcing in the bpo industry in India.

RESEARCH QUESTIONS
What are the key factors that motivated multi-national corporations (MNCs) and BPOs to go for outsouring in India? What are the advantages and disadvantages of outsourcing in Indian BPO service providers(industry)? What are the strengths and weaknesses of India BPO service providers? Is India capable of competing with foreign BPOs without outsouring? Is India viable as a BPO in the present or future? How matured is India currently as a BPO destination?

 What are the implications of Indias emergence in the BPO market?

RESEARCH OBJECTIVE
1. Why do organizations undertake outsourcing projects? 2. Do outsourcing programs achieve their stated objectives of improving organizational performance, productivity, marketshare, and quality?

NEED OF THE STUDY

In todays world of ever increasing competition, organizations are forced to look for new ways to generate value. The world has embraced the phenomenon of outsourcing and companies have adopted its principles to help them expand into other markets (Bender 1999). Outsourcing is perhaps the most powerful tool used by bpos, now to expand and development themselves and overpower there competitor and there own weaknesses. Outsourcing is a management strategy by which an organization delegates major, non-core functions to specialized and efficient service providers, or as Corbett (1999). President of Michael F. Corbett and Associates asserts, Outsourcing is nothing less than the wholesale restructuring the corporation around our core competencies and outside relationships. The traditional outsourcing in bpos emphasis on tactical benefits like cost reduction (for example, cheaper labor cost in low-cost countries), have more recently been replaced by productivity, flexibility, speed and innovation in developing business applications, and access to new technologies and skills (Greer, Youngblood, and Gary 1999; Bacon 1999).But to what extend and in what ways is outsourcing helping these bpos is where the need of the study comes in.

REVIEW OF LITERATURE
The significant level of outsourcing programs used across all business sectors is well documented in the literature (Bender 1999; Quinn 2000; Dun and Bradstreet 2000; Klaas, McClendon and Gainey 2001). Past research has progressed along several paths. First, some researchers have focused on motivations and reasons for outsourcing activities (Conner and Prahalad 1996; Greer et al. 1999; Sinderman 1995; Mullin 1996; Grant 1996; Frayer Scannell and Thomas 2000). According to this perspective, the global imperative for outsourcing accelerates as firms evolve from sellers of products and services abroad to setting up operations in foreign countries and staffing those operations with host countries or third party nationals (Greer et al. 1999). Most bpos believe that in order to compete globally, they have to look at efficiency and cost containment rather than relying strictly on revenue increases (Conner and Prahalad 1996). As Bpos seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses (Mullin 1996; Grant 1996). Other researchers have identified several outsourcing issues, trends and strategies that companies take in establishing and effectively managing their outsourcing activities (Sinderman 1995; Carney 1997). The trend is for outsourcing relationships to function more as partnerships. Outsourcing providers are taking increasing responsibility in realms that have traditionally remained in-house, such as corporate strategy, information management, business investment, and internal quality initiatives (Sinderman 1995; Carney 1997). A survey of U.S. CEOs shows that 42 percent of communication firms, 40 percent of computer manufactures, and 37 percent of semiconductor companies rely on global outsourcing (Faber 1995). According to another survey conducted by Duncan and Groves-Rowan (1997), more than 65 percent of bpos surveyed indicated that they were already involved in at least one type of outsourcing function. On the other hand Kotabe (1998) argues, that there could be negative long-term consequences of outsourcing resulting from a companys dependence on independent suppliers. Such reliance on outsourcing may make it inherently difficult for the company to sustain its long-term competitive advantages without engaging in the developmental activities of the constantly evolving design and engineering technologies. Other researchers have examined the outcomes of technology-sourcing partnerships from the sourcing firms point of view (Steensma, Kevin and Corley 2000; Mowery, Oxley and Silverman 1996) found that, in general, equity-based alliances were more effective than contract-based outsourcing. Steensma, Kevin and Corley (2000) suggest that the outcomes from technology partnerships for sourcing firms depend on the interaction between technology attributes and the interdependence between source and sourcing firms. Other researchers have focused on outsourcing strategy effectiveness and its impact on bpos characteristics (Frayer, Scannell and Thomas 2000; Klaas, McGlendon and Gainey 2001). Frayer et al. (2001) suggest that in order for an out-sourcing strategy to work effectively, bpos must proactively manage their outsourcing strategies by establishing top management commitment, global sourcing structures and processes, and global sourcing business capabilities. In addition, they suggest that bpos that have not raised their sourcing approach to global, strategic level may already be behind in terms of quality, cost, delivery, technology, performance, and customer service. Klaas et al. (2001), suggest that the influence of organizational characteristics was highly contingent, suggesting that organizational characteristics have different effects on various types of outsourcing activities outsourced. As such, it appears that many factors such as pay level, promotional opportunities and demand uncertainty should be considered when deciding to outsource functions or activities. Other researchers have focused on outsourcing performance measures (Kotabe, Murray and Javalagi 1998; Goldstein 1999; Malhorta 1997; Carney 1997). For example Kotabe et al. (1998) identifies three types of performance measures as necessary components in any outsourcing performance measurement system: strategic measures; financial measures; and quality measures. Other studies use additional dimensions of

market performance such as costs savings, cycle time, customer satisfaction, and productivity to measure the effectiveness of outsourcing strategy (Goldstein 1999; Malhorta 1997; Carney 1997). From a different perspective, obstacles such as poor choices of sourcing partners, inadequate planning and training/skills needed to manage outsourcing activities and poor organizational communication have also been identified as impacting the success of outsourcing projects (Lau and Hurley 1997; Guterl 1996; Foster 1999; Laabs 1998). The increasing use of outsourcing arrangements, as well as the unfamiliar complexity, suggest the need to know more about how to effectively utilize this strategy. Consequently, more information is needed to understand successful outsourcing and problems encountered in outsourcing activities and its impact on overall bpos performance.

HYPOTHESIS

Mathematically, the relationship among degree of competition and outsourcing success can be depicted as: S=f(C, C*OS) Where S= business process outsourcing success C= competition in the market and C*OS= the proper use of outsourcing to curb the competitor and win the competition.

The increasing rate of competition would have a positive interactive association with outsourcing success BPOs.(1)

The increasing rate of competition would have a negative impact on outsourcing success BPOs.(2)

the

REFERENCE
Forrester, R., 2002. 3.3 Million US Service Jobs to go Offshore. Forrester Research, 11 November. 67

Statistical Service, 2010. Ghana's Economic Performance 2009 in Figure. Government Report. Accra: Ghana Statistical Service. Ghoshal, S. & Moran, P., 1996. Bad for Practice: A Critique of the Transaction Cost Theory. Academy of Management Review, 21(1), pp.13-47. Gilley, M.K. & Rasheed, A., 2000. Making More by Doing Less: An Analysis of Outsourcing and. Journal of Management, 26(4), p.763790. Global Competitiveness Report, 2009. The Global Competitiveness Report 2009-

THANK YOU

SYNOPSIS

TOPIC -: OUTSOURCING : A CRUCIAL ELEMENT FOR COMPANIES DEVELOPMENT WITH SPECIAL REFERENCE TO BPO-IT INDUSTRY

SUBMITTED BY : AARTI SHARMA M.B.A 2ND SEMESTER 127602

RESEARCH METHODOLOGY
For this study both descriptive and analytical type of research design will be used. The main objective of using

descriptive research is to describe the state affairs as it exists at present. It mainly involves surveys and fact finding enquiries if different kinds. The research used descriptive research to discover the characterstics of such companies going for outsourcing. Also have used analytical research design to analyze the existing facts from the data collected from the companies and there employees.
The general intent of this descriptive study is threefold. Therefore a systematic and organized methodology can be obtained for the research study. A survey design can be prepared obtain the required information. The population for this study comprised of employees working in various BPOs in the Local and noida Region. A sample size of 30 can be chosen for this study. Simple random sampling technique will be used to gather data from the respondents, because of which respondents diverged from every age group, gender, organization, marital status etc. It also gather information about the factors responsible for outsourcing.The scope of the study is till the time this concept is being used in the organization and the right people are choosen to respond to the asked questions.

RESEARCH DESIGN
A comparative research design as suitable for a cross-national research where we are particularly interested in issues in two or more countries. Hence, a comparative qualitative research design will be adopted for this study. Data was therefore required from those cities where the bpos exists or this outsourcing practices are conducted mainly (Ncr) region.

DATA COLLECTION METHOD

The Primary data will collected from the organization and from the employees through structured scheduled questionnaire and personal random and on the spot interview method.

A. The Secondary data can be collected from internet, journals and published sources, literature review and also from the past records maintained by the company. B. DEVELOPMENT OF THE QUESTIONNAIRE- Further to study the factors & reasons about the (bpo) or companies going for outsourcing a questionnaire will be developed. C. DATA COLLECTION- Employee Data will now be collected from the choosen places and companies.Those who are using outsourcing as a major component in there companies development. D. TARGETED AREA FOR SURVEYAs stated above the survey will be conducted in Agra region near Rajamandi station and the possible companies choosen in the Ncr region. The main target was the employees of serco bpo which was previously named Intelenet Global Services now taken over by SERCO as per convenience and possibility of direct interaction.

SAMPLING METHOD
As its stated above that for completion of my report work I would conducted a Survey. For conducting this survey selecting appropriate sample size is an important task. Moreover the most important aspect of the research work is selecting the right respondent for the successful completion of the project. Following is the description of the Sample Design considered for survey: SAMPLE SIZE: The sample size, which will be taken for the project, is 30. This sample size combines employees from different backgrounds. All of those who make part of bpos and companies processes.. SAMPLING TECHNIQUE: The sampling technique used in the study is Random sampling technique. COLLECTION OF THE DATA: The method of Data collection used in the study is Survey/ Feedback methods. As discussed above that the respondents will be visited and asked to fill the Questionnaire that will be designed. RESEARCH INSTRUMENT The research instrument for the study is Questionnaire/interview. Keeping in view the objective of research a questionnaire will be build .

SAMPLE PLAN
For this study as it is concerned to gather valid information on the issue that whether outsourcing in a crucial element in companies development or not therefore the target respondents are the employees working in the Bpos therefore trying to explore in which income groups they fall into is not required. There position in the frm and age would be ample to draw proper and useful response from them.Therefore in Bpos the lowest level position is of the CUSTOMER REPRESENTATIVE.Therefore my respondents would be above this level postions (Techinal support executive,sr. CCE, sr.CSR, Customer Care Associate etc.) above 21yrs of age mostly.

STATISTICAL TOOLS AND TECHNIQUES USED FOR ANALYSIS

The tools and techniques that will be or can be used for analysis of the data, collected through questionnaire, are : Microsoft Word Document Microsoft Excel 3D-Column chart Column chart Pie chart

PRESENTATION TOOL
BAR GRAPH PIE

SUMMARY OF RESEARCH METHODOLOGY

Research Type Research Approach Source of data Data collection method Research instrument Sample unit Sample size Sampling technique

Descriptive Survey Primary data Survey Questionnaires Bpo employees or companies going for outsourcing. 30 Simple random sampling