Outsourcing - A Personal Retrospective Flowing With A Successful Idea! Came for price – Stayed for Quality & Innovation
Agenda 1 2 3 4 5 6 Why Outsource? What to Outsource? Typical Outsourcing Challenges Some Offshoring Best Practices India – The Destination of Choice Questions?
What To Outsource? Infrastructure Services Application Services Product Development Business Processes • Technology refresh • Help desk support • Server management • Consolidation • Hosting Services • Custom Application Development • Application Management • Package Implementation • Testing • Web Enablement • Mobility Solutions • Embedded Solutions • Hardware Design • SW Products • Technical Documentation • MRO • Customer Service • Technical Helpdesk • Finance & Accounting • Human Resource • Procurement • Order Management • Industry-specific Processes e.g. Mortgage, Capital Market Back office • Marketing • Content Management • Legal
Evolution of Outsourcing Business Benefits and Transformation • Focus on outcome – reducing day sales outstanding, maximizing rebates, managing cash flow, better inventory management, improve up and cross selling etc. • Flex the outcome to align to the changing business climate • Adding value, not just saving costs • Transformational gains • Business insights • Making the costs variable Productivity Improvement • Operational excellence and exceeding customer metrics • Domain skills • Process knowledge Business Value Delivered • Efficiency gains • Quality and repeatability • Knowledge capture and management Standardization • Savings through labor arbitrage and standardization • Capturing and standardizing operations procedures • Process standardization • Labor cost savings 2002-2005 2005-2009 2010 and Beyond Timelines Source: IBEF
Key Outsourcing Challenges Time zone Issues Cultural Differences Perceived Loss of Control Governance Time & Costs Vendor Viability Data Security Linguistic Problems Knowledge Transfer
Outsourcing – Some Best Practices A Proven Idea That Has Benefited Many Before Embrace It!
India – The Destination of Choice Competitive Pricing Continuous Innovation to Deliver Value Excellent skills in Program/Project / Expectation Management Advantage India Good Corporate Governance and IP Regime Maturity in Process Quality Leadership in Global Delivery Top Quality, Large and Growing Talent Pool Ranked # 1 Since Inception in AT Kearney Global Services Location IndexTM
India: Highly-skilled Manpower India has: • Over 3 million scientific & technical manpower • Over 0.6 million S&T post graduates • Over 0.7 million graduate engineers • Over 3500 doctorates in sciences every year • Over 380 universities (11200 colleges) • Over 1500 research institutions • Over 200,000 engineering graduates • Over 300,000 post graduates from non-engineering colleges • Over 2,100,000 other graduates • Over 9,000 PhDs • Excellent Knowledge workers in software industry increased from • 56,000 in 1990-91 to 650,000 in 2003; • Due to its young demographic profile, India would continue to be surplus in working population for a longtime After US, India has the largest pool of English speaking scientific manpower