OUTSOURCING

• Outsourcing refers to a company that contracts with another

company to provide services that might otherwise be
performed by in-house employees
• There are many reasons that companies outsource various
jobs, but the most prominent advantage seems to be the fact
that it often saves money
Types of Outsoursing
Why Outsourcing
 Person To Person Outsourcing (PPO)
• PPO consists of those services that are offshored by
individual entrepreneurs who are trying to bootstrap their
new organisation as efficiently as possible
• With technology advances and the growth of the Net, small
offices, home businesses and freelancers can utilise PPO
services and generate business.
• outsourcing is fast transforming itself from being a multi-
people oriented activity to an individual one
 PPO Major Players
Home businesses

Freelancers

Individuals

Small offices
 PPO Services

Online tutoring

Data entry

Web design

Writing and translation services

Accounting and tax

Invitation cards
 PPO Models

PPO Models

Direct Interaction Online Marketplace

model Model
 Direct Interaction Model

• Direct interaction model where the individual client signs a contract

directly with the vendor, who in turn either hires people on a full-or
part-time basis or sub-contracts the job.

• Payments can be made through cheques or wire transfers, as the cost

of the project is fairly low, clients usually pay through credit cards.
 Onlinemarket Place Model

In
In an
an online
online marketplace
marketplace vendors
vendors enroll
enroll by
by paying
paying aa monthly
monthly subscription
subscription
fee,
fee, plus
plus aa fixed
fixed percentage
percentage of
of the
the revenue
revenue if
if they
they win
win the
the project
project

when an individual client posts requirements for a new project to be

conducted on the online marketplace, the marketplace communicates
these opportunities to the selected vendors and freelancers and
requests proposals to be delivered to the client. The client then awards
the work to the appropriate vendor depending on price (which may be
on a per hour or a fixed cost basis), delivery time and a quality
 PPO as Industry
• Total addressable market in the US alone
easily exceeds $20 billion.
• In India, PPO generates revenue worth $65
million annually, but it's expected to touch
$500 million by 2015
• An eight-fold increase in nine years at a
cumulative growth rate of 26%.
 Major countries in PPO service

India ●
30% market share

China ●
21% market share

Russia ●
13% market share

Philippines, 10% market share

Companies in PPO

Guru.com

California-based Elance.com

Florida-based
RentACoder.com

GetAFreeelancer.com

Evalueserve Inc
 Online Tutoring in PPO
OFfer one-on-one “live” homework assistance over the web and provide essay-writing
guidance and help with educational content
Transtutor
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Career
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