V Practice of one company contracting another

to do certain types of work rather than using

its own internal resources. It involves the
transfer of the management or day-to-day
execution of an entire business function to
an external service provider.
V It is about more than cutting cost, its about
increasing the business value of your
company.
 `ff- `ut-
shoring sourcing
*Relocation by a
company of a business *Purchasing or
*Practice of contracting with 3rd
hiring/outsourced to party company.
suppliers/vendors

* In sourcing(within
May be under the company)
same company
group/3rd party *on shoring(within
country)
V @ack of existing skills to complete a process,
V To replace a poor internal service,
V Resource are not available in-house,
V Difficulty in managing the business (due to
growth),
V Process may be performed better & cheaper
by other service,
V rompetition
V Reduction of cost
V More concentration on the companies
enhancement,
V Satisfying the customer needs,
V Advance technology,
V Maximization o revenues,
V rontinuous improvement of business,
V Achieve excellent standard,
V Increasing the shareholder·s value,
V Flexibility.
V=



 

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V 

V Software application perform the task of

rustom development,
Maintenance,
Reengineering,
Porting,
Integration, and other tasks
V IT outsourcing provides such activities as

Data center operations,

Network operations,
Backup and recovery services, and
Administration services.
V BP` provides
rall center services, or
Specialize in back-office tasks like billing and
invoicing
V Software development
V Software maintenance
V Data storage management services
V System administration services
V End user support of desktop Prs, laptops,
and handheld devices
V Web site, or application hosting
V¢

  
     
V       

V     
 

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V 
    
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V !
    


  
 "
Indian BP`(Wipro) in India-Home
rountry Nationals

Wipro in US-Host rountry Nationals

Wipro in US employed rhinese

employees-Third rountry Nationals
 Ethnocentric (Home)
eg. Philips, Matsushita,
P&G, Toyota, Samsung

Polycentric (Host) eg.

Unilever

Geocentric (Best) eg.

D`W rhemicals
V The rulture prevailing in Home nation influences
the perceptions of peoples towards works,
organization, management styles & orientations.
V e.g. Japan contracts for
lifelong,
employees are loyal &
compensations are given on the basis of seniority
whereas in US
Πemployees are highly individualistic,
Πservice are depend upon immediate direct contribution,
Πcompensation based on expertise, &
Πtop to down decision making approach.
V Selection of
organizational type,
Expatriate Managers,
rompetence,
rross-rultural understanding,
Self- Reliance,
Health & Family,
V Training & Development
Training,
rultural training,
@anguage training,
Practical training,
Development
V rompensation
Expatriate payment
V Performance Appraisal
(foreign & domestic)
V Repatriation of Expatriates
(Adjustment strategies on repatriation)
V @abor Relation
(`rganized @abor & MNE )
V The        #
 refers to the services outsourcing
industry in India,
V rontracts with another third party company
to provide services that might otherwise be
performed by in-house employees.
V In the early 1980s several European airlines
started using Delhi as a base for back office
operations, finally spun off as WNS Global
Services in 2002,
V In the second half of the 1980s, American
Express consolidated its JAPAr (Japan and
Asia Pacific) back office operations into New
Delhi,
V UntilG.E most of the work was being done
by "captives´ in house for the parent
organization. In 2000 Raman Roy and some
team members from GErIS quit , and with Vr
funding from rhrysalis rapital started
Spectramind, EX@ in Noida and Efunds in
Mumbai and Gurgaon and Daksh in Gurgaon.
V In 1990s Pramod Bhasin, head of G.E. India
hired management from American Express
for GErIS (GE rapital International
Services). In 2004 GErIS was spun off as
Genpact.
GE has retained a 40% stake and sold a 60% stake
for $500 million to two equity companies, `ak
Hill rapital Partners and General Atlantic
Partners.
V In 2002, Wipro bought Spectramind and BP`
and all the major Indian software industries
were into BP`, including Infosys(Progeon),
Inforlinx, Hr@, Satyam(Nipuna) and Patni.
V By 2003 Daksh was bought out by IBM.
V In 2006 MphasiS was acquired by EDS.
V 3rd party BP` players like ronvergys,
Accenture, IBM, Hewlett Packard, Dell &
Sitel had set up shop in India, swelling the
BP` movement to India.
V US financial meltdown has begun to take its
toll on India's IT & outsourcing business.
V Growth of India outsourcing sector is widely
optimistic and can slow down in future.
V Both IT and BP` sector is fully dependent in
USA and if the US dollar depreciates can
adversely impact the entire sector.
V Additionally countries like rhina, Mexico and
Vietnam are also expanding outsourcing
operations even at a cheaper services.
 G@`BA@
r`MPETITI`N

*Knowledge
management,
*Mergers/JV
rUST`MER
EXPErTATI`N *Reduction o benefits Ar UISITI`NS

*More focus on team

*Doing more with
less

PRESSURE T`
REDUrE
r`STS
 
   
 
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V Tier I cities
Bangalore, rhennai, Hyderabad, Kolkata, Pune,
Mumbai and Ahmedabad.
V Tier II cities
Nashik, Sangli, Aurangabad (Maharashtra),
Mangalore, Mysore, Hubli-Dharwad, Belgaum,
roimbatore, Madurai, Hosur, Nagpur, Kochi,
Trivandrum, rhandigarh, Mohali, Panchkula,
Ahmedabad, Bhubaneshwar, Jaipur,
Vishakapatnam and @ucknow.
V    ¢$% 
#  
Indian companies are fast scaling up to match or
surpass international quality standards.
V h  
#      
       
  
   
       #
 & 
#"
V '
 ( )  
 ¢   
with its talented resources, good educational
institutions, a large English speaking population,
and technological prowess
V 

 
*  #  
rreations of the mind- inventions, literary and
artistic works, symbols, names, images and
designs used in commerce.
V `n August 6, US `hio·s Governor, Ted
Strickland banned on Govt. work to
countries;
V He said that it violates the commitment
made by G20 countries to fight
protectionism;
V ´Such restrictions have to goµ, the
protectionists moves were not acceptable to
India, said Rahul Khullar (rommerce Secy.)
V This action will hit India·s $60 billion IT-BP`
industry
V India earns 61% revenue from US;
V Provides employment to 30 lakh people;
V Would stop outsourcing by US companies
V´ This is a blatant/open & unshamed case of
PR`TErTI`NISM which has to be dealt at the
bilateral levelµ
V India is in a good position to take up the
issue with the US;
V Both the countries were the members of G20
decision to shun/reject PR`TErTI`NISM to
fight the financial crisis;
V "`ne of the dominant features of the
outsourcing market over the last 12-15
months has been the emphasis on cost above
all else," Morrison & Foerster's report
explains Jan. 2010
 ‡ Unemployment
Threats ‡ Slow economic growth

‡ Decrease in wage level

Threats ‡ Decrease in money circulation

‡ Job loss & personal bankruptcy

Threats ‡ Decrease in std. of living
V †Great business opportunities
V †More employment opportunities
V †Higher wages
V †Rise in money circulations
V †Rise in std. of living
V †Rise in economic growth
V _Dependency
V _No job guarantee in the long run
V _rompetition from other country.
V The future of BP`s seems to be rosy for India
with its large English-speaking, low skilled
labor is ideally placed to take on a lion·s
share of the worldwide BP` business. The US
economy will be employing fewer employee
as it may lost the competitive advantages
over developed countries. The only solution
to combat this increasing competition is to
cut costs, improving infrastructure,
Regulatory Framework and value added
services.
V Withthe abundant skilled manpower India
has made a target destination for MNrs to
end their operations in India. India ranked
high in areas such as qualifications,
capabilities, quality of work, linguistic
capabilities & work ethics, and thus is ahead
of competitors such as rhina, Australia &
ranada.