CHAPTER NO.

10
RECENT BUSINESS SCENARIO

SOHO
Definition:-

SOHO means a small office environment

which is often privately owned and operated
by self-employed individuals. Two important
features are it is small in size in terms of :i.

The office space occupied.

ii. Number of employees employed.

PROFESSIONS IN SOHO
Real estate agents.
Lawyers.
Small beauty salons.
Travel agents.
Financial advisors.
Free agents.
E-Lancers.
Other independent professionals.

FEATURES
Small in size
Less number of employees
Limited capital
Virtual organizations
Part of cottage industry
Limited number of business transactions

FEATURES
Self-employment
Autonomy in work
Use of internal and technology
Simple organization structure
Easy and simple process to start

ADVANTAGES
Location flexibility
Low cost
No complex process to start
No commute
Independence
No sharing with profits
Self-employment

DRAWBACKS
Higher chances of Bankruptcy
Low capital
Variability in Income
Isolation
Initial investment
Distractions at home
Limited bargaining power

OUTSOURCING
Definition:-

The term Outsourcing means to contract out

one of more business activities to an external
agency. It has grown to different levels of
BPOs and KPOs.

PROCESSES OUTSOURCE BY
COMPANIES
Technology operations
Customer relationship
Logistics
Finance / Accounting
Purchasing
Logistics
R & D

PROCESSES OUTSOURCE BY
COMPANIES
Operations
Maintenance / Repair
Service Management
Sales / Marketing
Legal processes
E-commerce

REASONS FOR
OUTSOURCING
Lower operational and labor costs.

REASONS FOR OUTSOURCING

Reduce risk.

CLASSIFICATION OF
OUTSOURCING
Human Resource.

COMPONENTS OF OUTSOURCING
Business Processing Outsourcing (BPO)

Knowledge Processing Outsourcing

(KPO)

ADVANTAGES
Improved efficiency
Improved operational performance
Productivity improvements
Expertise and superior competency
Operational cost control
Improved accountability

ADVANTAGES
Shorter project delivery times.
Focus on core business concerns.
Employment opportunities.
Handling of miscellaneous jobs.
Access to newer markets.
Expertise of the service provider.

DISADVANTAGES
Service expectation mismatch
Lower than anticipated cost savings
Data theft
Intellectual property protection
Higher training costs
Monitoring costs

DISADVANTAGES
Compromising confidentiality
Loss of control
Information security
Customer dissatisfaction
Increase in cash inflow
Time consuming

THANK YOU