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Outsourcing - Outsourcing provides the companies basic level regular services to the other companies inside or outside the country firms so that company focuses on their core services
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OUTSOURCING MADE BY : DEEPIKA OJHA
INDEX • Outsourcing • Types of outsourcing • BPO-Business Process Outsourcing • KPO-Knowledge Process Outsourcing • LPO-Language Process Outsourcing • Location Analysis • Outsourcing in India • Reverse Outsourcing • Future Trends in Outsourcing
What is outsourcing ? • “Outsourcing refers to the practice of transferring activities traditionally done within a firm to third party providers within the country.” • Definition : • Outsourcing is a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally. • Outsourcing is an effective cost-saving strategy when used properly.
Motivation for Outsourcing • Cost-Driven Outsource : Reduce & save cost • Strategy- Driven Outsource: Focus on core-competencies Functions. • Politically – Driven Outsource: Outsource By Public Organizations.
Types of outsource KPOKNOWLEDGE PROCESS OUTSOURCING BPOBUSSINESS PROCESS OUTSOURCING OUTSOURCE LPOLEGAL PROCESS OUTSOURCING
BPO-BUSINESS PROCESS OUTSOURCE • Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider.
BPO CATGEGORIES Back – Office Front – Office • Back- office Outsourcing : - it includes internal office functions i.e. • HR • Accounting • Finance / Payroll • Front-office Outsourcing:- It includes customer related services i.e. • Tech support • Contact –center • marketing
KEY FACTORS-OUTSOURCING Outsourcing of business done within companies own country ONSHORE Outsourcing of business done in outside country OFFSHORE Outsourcing of business done with Companies neighboring countries NEARSHORE
BPO SERVICES • Administrative support • Customer relationship management • Document processes • Finance and accounting • HR & training • IPR documentation • Legal Services –LPO • Medical transcriptions • Payroll Management • Product Development • Publishing • Research & Analysis • Sales & Marketing • Security • Supply Chain Management
KPO – KNOWLEDGE PROCESS OUTSOURCING • Knowledge process outsourcing (KPO) describes the outsourcing of core information-related business activities which are competitively important or form an integral part of a company's value chain . KPO requires advanced analytical and technical skills as well as a high degree of specialist expertise.
Drivers of KPO: KPO firm require more skilled labors than BPO. Experts works in KPO keeps learning & have more incomes than BPO In KPO Customer is amid the whole execution process • Increase in specialized Knowledge • Additional Value Creation • Cost reduction • Shortage of skilled labor • Demand of Quality Product BPO VS KPO
KPO SERVICES • Research & Development • Financial Consultancy and Services • Advanced Web Applications • Business and Technical Analysis • Learning Solutions • Animation & Design • Business & Market Research • Pharmaceuticals and Biotechnology • Medical Services • Writing & Content Development • Legal Services • Intellectual Property (IP) Research • Data Analytics • Network Management • Training & Consultancy
LPO – LEGAL PROCESS OUTSOURCING • Legal outsourcing, also known as legal process outsourcing (LPO) refers to the practice of a law firm or corporation obtaining legal support services from an outside law firm or legal support services company (LPO provider). • Legal Process Outsourcing (LPO) is the industry in which in-house legal departments or organizations outsource legal work from areas where it is costly to perform, such as the United States or Europe to areas where it can be performed at a significantly decreased cost, primarily India. Legal Process Outsourcing is a high end industry that has been growing rapidly in the recent years.
Why Lpo? Legal process outsourcing or LPO is the exporting of legal services to low-wage markets overseas. An increasing number of companies, large and small, are outsourcing legal work to destinations across the globe. A number of factors have fueled the legal process outsourcing trend, including: • Globalization • Economic changes and the rising cost of legal services • The growth of the Internet • Increased automation of legal processes • Developments in data security • New technology tools • Cost-Saving – biggest attraction
LPO Services • Contract Drafting Services & Contract Monitoring / Management • Document review / drafting, electronic discovery • Medico-Legal Support Services • Litigation- Document Management • Bankruptcy Filings , Pleadings & Documentation • Legal Research/ outsourcing/publication • Paralegal Support Services • Patent drafting • Simple legal filings • Proof reading • Legal billing activities like preparation of invoices, collation of time sheets etc. • Intellectual property research--substantive and administrative • Administrative and secretarial activities like following up with clients, etc.
Location Analysis • Countries which are attracting for Outsourcing Destination:
Outsourcing In India • Why India most Preferred? India produces over 75,000 IT graduates and 20 lacs English-speaking graduates annually. Labor Pool Typical salaries range from $5,000 to $12,000 for technical staff, while back-office salaries range from $3,500 to $7,500. Cost Benefits The government favors IT foreign ownership and imposes no export taxes. Government Policies In India with redundant telecom and utility infrastructure, there is very good reliability within India's special IT parks. Infrastructure In India Application development, maintenance, financial processing. Experts see India becoming a hotbed for more critical analytical jobs. Knowledge full / Expertise
Top Outsourcing IT Companies KPO BPO LPO 24 / 7 Customers Bodhi Global Services (P), Ltd. Clutch Group. Wipro BPO APTARA (TECHBOOKS) Tata Consultancy Services(TCS) Evalueserve Cobra Legal Solutions, LLC. CPA Global Ltd. HCL BPO EXL Service IBM DAKSH Integreon Managed Solutions, Inc. Genpact ACCENTURE Pangea3 Mindcrest. COGNIZANT WNS Global Services Trustman Firstsource Solutions ICICI OneSource
SWOT Analysis in India • Solid History of software development • English Proficiency • Government Support • Process and Quality Focus • Skilled, Educated Resources • Entrepreneurialism • Infrastructure • Cultural Differences • Distance from US • Feud over Pakistan • Legal System • BPO and Call Centers • Expansion of Existing Relationships • Emerging Chinese Market • Indian Domestic Market Growth • Competition for Resources • Over Promise/Under Deliver • Rising Costs • Competition from Other Countries • Corruption, Piracy, Trust Strength Weakness Opportunities Threats
Reverse Outsourcing • ‘Reverse Outsourcing’ is the latest trend in outsourcing. Now ,those countries companies which are earlier chosen for outsourcing like India & other Asian countries will now create jobs in the western countries • This phenomenon which is gathering pace in recent times is known as ‘Reverse Outsourcing’ or the trend of Indian ITES and BPO companies opening offices in the US and Europe to outsource there work some are • TCS • WIPRO • HCL
Outsourcing: Who’s Benefit? “Even the harshest critics of outsourcing agree that it can benefit the firm itself; after all, the firm wouldn’t choose buying over making unless it saved money.”
Future Direction - outsourcing • High Competition – market • More offshoring outsourcing • More nearshore outsourcing • In Bpo: • Cost savings is one of the most important drivers now. Information security, execution capability and financial stability are important considerations while selecting a vendor. • Latest trend of offshore insourcing , in which firms establish their own offshore captive centers. These captive centers are generally shared service centers and allow the firms to retain control over the processes.
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