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Leanna Dertinger, Jana Earnshaw, Mitsuru Kajio, Jesse McShane & Simon Seid
Terminology • • • • • Outsourcing Offshoring BPO ITO Fragmentation .
History of BPO • World War II – Increased international trade • 1960s – 1980s – Importing turns to outsourcing • 1990s – Present – Services now outsourced – BPO begins .
India Global Customers w/ Local Support • Core Competencies cut Defects .HP Goes The Distance For P&G • • • • Corporate Culture & Brand Finance and Accounting Bangalore & Mumbai.
Global Accounts Payable Processing .
BPO Advantages • • • • • Productivity Improvements Cost Savings Improved HR Focus on Core Business Competency Increased Capability .
BPO Disadvantages • Recent Studies • Knowledge Disappears and is Transferred to the Outsourcing Partner • Poor Quality Control • Restoring Operations is Complicated • Lack of Loyal Employees • Reduction in Strategic Alignment .
what will happen? .No pirated products • If Chinese Government Policy changes.Why BPO in India? • Language • Education • Quality .Turning point will be by 2010 .Communication .
Comparison: India versus China China India • • • • • • • Educational System Cost Advantage Time/Distance Advantage English proficiency Government Support Quality Labor Pool • • • • Educational System Cost Advantage Time/Distance Advantage Close to Japan .
Matching Process to Market India • Development of software • Call center – IBM China • Manufacturing of components • Japanese IT Companies .
The Future of Outsourcing .Source: BusinessWeek.
Tata Consultancy Services (India) 2. IBM (U. CSC (U.S.S. SITEL (U.) 7.) 9.) 8. Teletech (U. WNS Global Services (India) 8.S.) 5.S. EDS (U.) 10. Accenture (U. ICICI One Source (India) 4. ClientLogic (U. Infosys Technology (India) 3.Teleperformance (France) 7. Accenture (U.) 5. Satyam (India) Call Centers 1.S. Convergys (U.S. The Future of Outsourcing . Cognizant Techonology Solutions (U.) 4.) 6.S.S.S. CustomerCorp. Wipro (India) Software Development 1.S.) Source: BusinessWeek.e Telecare International (U. Wipro (India) 4. IBM (U. 24/7 Customer (India) 6.S. (U.) 10.) 2.) 6. Wipro (India) 3.S.) 5. HCL Technologies (India) 9.) 3.S. ACS (U. EDS (U.) 8.S.) 7.Hot Players in Outsourcing Business Services 1.S.Patni Computer Systems (India) 9. Hewlett-Packard (U. SR. Hewitt Associates (U. Tata Consultancy Services (India) 10.) 2.S.S.
or stop you in your tracks 2. Get your people on board . Go Offshore for the right reasons • • • Shifting a broken process overseas may not fix it Could cost more…..5 Managerial Steps That Pay Off 1. Choose your model carefully 3.(I’ll fix this part) Employees and middle managers can make the bold move happen….
Treat your partners as equals • . Be prepared to invest time and effort • Often what is lacking in offshore partners is a lot of deep process knowledge Telling your partners exactly what to do and how to do it is not conducive to the entire process 5.5 Managerial Steps That Pay Off 4.
Examples • Penske and India’s Genpact • Eli Lilly .
3p. Outsourcing in a box.behtimes. “A world of work.msn.htm http://www.edu/taipei/documents/InterRegionalPartnershipsAnIndiaPerspective. Manjeet. Kripalani.biz/research. “HP Goes DistanceFor P&G. Stan.bpoindia. 3/20/2006. 50-58. 6-7.” eWeek. November 13.rediff.com/money/2004/jan/08bpo. Engardio." Business Week. Bob (2005).” The Economist.xicom.htm http://globalconnect.cms http://www.com/business-process-outsourcing." Business Week.networkworld.ucsd.com/news/2004/0407updatibm. Pete.cyfuture.indiatimes. pp. January 30. p49-52. Vol.html http://www. 23 Issue 12. 60-61. http://economictimes.html • • • • • . "Five offshore practices that pay off. January 30.Sources • • • • • • • • • Gibson. San Jose.com/articleshow/1468167.html http://encarta.pdf http://www. "The Future of Outsourcing. Booton. pp. pp.2006. CA: Bidness Books Publishing.org/ http://www. 2006.com/encyclopedia_701702628/Outsourcing.com/article/123/7/ http://us. 2004.