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BUSINESS PROCESS OUTSOURCING TO LDCs - INDIA. World Economic Geography Hippo Channel Present. OUTLINE. Outsourcing Trend. Terminations LDCs Outsourcing BPO Reality trend Kinds of service activity Destinations. TERMS. LDCs = Least Developed Countries. TERMS. TERMS.
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BUSINESS PROCESS OUTSOURCING TO LDCs - INDIA World Economic Geography Hippo Channel Present
Outsourcing Trend • Terminations • LDCs • Outsourcing • BPO • Reality trend • Kinds of service activity • Destinations
TERMS • LDCs = Least Developed Countries
TERMS The process of arranging for sb outside the company to produce goods or services for that company Outsourcing • Do what you do best • Outsourcing the rest
TERMS BPO = Business Process Outsourcing • Subset of outsourcing • Involve contracting of the operations & responsibilities of specific business functions / processes
Outsourcing: BPO Trend • Kinds of service activity: call centers, computer network support, legal services, accounting, procurement, software development, R&D and engineering services • Destinations (LDCs):India, Israel, the Philippines, South Africa
1. Cost of production 30 to 40% of costs can be saved!
2. Workforce • 2nd most populous country • Working age: 64.3% Large labor pool Workforce Skilled and talented workers
+ over 300 universities and 16,000 colleges providing broad education + the presence of famous technical and business schools + the "English" Advantage Skilled and talented workers
Time difference between the countries allows Indian companies to complete the task before people from US and European countries come into work
4. Faster and better communication: • Advancements in calling, emailing and chatting
5. India has a Stable Government: • Improving the infrastructure, communication, etc. • Adopting IT outsourcing friendly policies in taxation, power, telecom, industrial parks, and special economic zones.
India enjoys the confidence of global corporations: • 82% of the US companies ranked India as their first choice for software outsourcing • Indian-Americans run more than 750 companies in America's Silicon Valley
India enjoys the confidence of global corporations: • “You liberated your markets and now you have one of the 10 fastest growing economies in the world"
References • Building a Future with BRICs: The Next Decade for Off shoring by Mark Kobayashi-Hillary (Kindle Edition - Sep 30, 2007) • Outsourcing to India: The Offshore Advantage by Mark Kobayashi-Hillary (Kindle Edition - April 19, 2005) • http://www.vietnam-business-blog.com • http://www.globalservicesmedia.com • http://www.businessweek.com • http://madaan.com/outsourcingindia.html
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