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r The IT industry has played a major role in placing India on the International map.
r The industry is governed by IT software and facilities like System Integration,
Software experiments, Custom Application Development and Maintenance
(CADM), network services and IT solutions.
r According to Nasscom's findings Indian IT-BPO industry expanded by 12% during
the Fiscal year 2010 and attained aggregate returns of US$ 71.6 billion.
r Since many years India has been an Outsourcing hub due to its reasonably priced
labor, growing economy and availability of technically proficient workforce.
r As per NASSCOM, the Indian IT exports are anticipated to attain US$ 175 billion
by 2020. In total the export and domestic IT sector are expected to attain profits
amounting to US$ 225 billion along with new prospects from BRIC nations and
Japan for its outsourcing operations.
r The recent multi million dollar agreements in the IT industry:
u A 5 year agreement between HCL Technologies and News Corp for
administering its information centers and IT services in UK. As per the industry
analysts, the pact is estimated to be in the range of US$ 200-US$ 250 million .
u Global giant Walmart has short listed there Indian IT dealers namely Cognizant
Technology Solutions, UST Global and Infosys Technologies for a contract
worth US$ 600 million
Major Players in IT outsourcing
r S  
 IBM Global Services is the largest IT outsourcing company in
the world. It has a revenue of $95.8 billion and employs 399,409 employees worldwide.
An array of services provided: application development, system integration, application
management services, data center outsourcing services, maintenance, e-business hosting
services, networking, support services, security services and storage services.

 : Lucent Technologies, Cisco systems, Visteon
r 
  
 - CSC is the third largest IT outsourcing company in
the world. It serves in 90 locations globally, with three major offices in Australia,
Europe and Asia. It presently employs 94,000 professionals and had a revenue of 16.1
billion $ for the second quarter ending October,2010. It provides a wide range of IT
outsourcing services including system integration, application outsourcing, IT
infrastructure outsourcing and Enterprise Solutions.

 : Motorola, Nortel, Pioneer,Siemens, Sun Microsystems and Thales
Electronic Devices .
r Π  
Π- HP is also one of the top ten IT outsourcing companies. It
witnessed highest growth among the top ten vendors in 2010, which an increase of 22
percent in its revenues. HP¶s IT outsourcing services include application management,
end-user workplace management, help desk services and software supply chain.

 : Oracle,
r S- Infosys has been the pioneer in offshore IT outsourcing. Since 1981, when it was
established, the company has grown rapidly and now employs 127,779 professionals
worldwide with a revenue of 5.7 billion US $( As per Dec¶ 2010). Infosys provides various IT
outsourcing services including application development, Architecture services, Infrastructure
services, Knowledge services, System Integration services and many more.
Infosys also pioneered the  
 , which is based on the principle of taking
work to the location which offers best talent, it also makes economic sense with least amount
of risk.

 : ABB, Kodak, Analog Devices, Hughes Networks Systems, Vodafone, Sygenta
AG, Adidas group, Colt Technology Services

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 Wipro is yet another Indian IT major with a revenue of US$ 6 billion(2009-2010)
and employs 1,00,000 employees worldwide . Wipro has business operations in over 55
countries and has 72 global delivery centres. Its IT outsourcing services include application
development and maintenance, architecture consulting, business intelligence and data
warehousing, e-business, enterprise applications services, enterprise security, system
integration, testing services and web services. Wipro currently has over ^     .

 : Pitney Bowes, TNT, Fujitsu Network communication, Corporation bank,
Cisco Systems etc.

r  
 TCS is a subsidiary of the Indian corporate giant ± Tata
provides IT outsourcing services such as application development and maintenance, business
intelligence, e-commerce, e-learning and enterprise application integration•

   ABB(UK,US), Numonyx, NXP semiconductors, Sony pictures, AGL energy,
Woolworths etc.
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Value Chain
    
        
  

 
     
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1)TECHNOLOGY DEVELOPMENT
2)OPERATIONS
3) MAINTENANCE
4) RESEARCH AND DEVELOPMENT
5)MARKETING AND SALES

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1)INFRASTRUCTURE: Organization structure, control systems, company culture
etc.
2)HUMAN RESOURCE MANAGEMENT
3)PROCUREMENT: Purchasing of raw material, supplies and equipment
4) INBOUND AND OUTBOUND LOGISTICS
Core and Critical Activities
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u NETWORKING
u ASSEMBLING AND SYSTEMS INTEGRATION
u CUSTOMER SERVICE

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u RESEARCH AND DEVELOPMENT
u IT SUPPORT AND MAINTENANCE(ON SITE)
u SECURITY AND STORAGE
u IT STRATEGY AND ARCHITECTURE
u IT INFRASTRUCTURE
u PRODUCT DESIGN
u SUPPLY CHAIN MANAGEMENT
u TRANSPORTATION
u MARKETING
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u CAFETERIA
u SECURITY SERVICES
Activities to be Outsourced
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   This function needs to be outsourced so that
technical support is constantly available for hardware/software faults, implementing a new
technology or software and for installing of systems.
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Outsourcing can provide higher expertise
and latest applications software's and their implementation.
r , This is an essential activity of our company since the assembling ad
integration is done on site.
r  
- By outsourcing this particular function, cost saving and getting an
assembly of best available parts in the market to develop a quality finished product can be
achieved
r 

 Customer support services needs to be outsourced for cost
saving, saving time so that our company can concentrate on its core activities.
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r Infosys- IT Infrastructure services, customer support services
r Wipro- Application and Software Services
r HCL Technologies- Manufacturing of certain hardware parts.
r IBM- Manufacturing of certain hardware parts.
 
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r Tactical Reasons for Outsourcing


r Strategic Reasons for Outsourcing
Tactical Reasons for Outsourcing
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