BY:CJ

ON-SITE & OFF-SITE IT BUSINESS MODELS

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Contents

ON-SITE AND OFF-SITE MODEL1

22 RATIONALE OF TWO MODELS

2

EMERGING MODEL- GLOBAL DELIVERY MODEL

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2

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Contents

ADVANTAGES OF INDIA AS AN OFF–SHORE DESTINATION

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66EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION

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3

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4 STATISTICS OF IT & BPO ACTIVITIES WORLD-WIDE44

ON-SITE AND OFF-SITE MODEL

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ON-SITE MODEL OFF-SITE MODEL

RATIONALE OF TWO MODELS

ON-SITE MODEL: Prior to dot-com boom (1996-97)

Lack of Standards for communication. Also Communication being expensive and unreliable.

Eg; Long distance call being $2. Today it is virtually free

Lack of network infrastructure.

Comfort level between vendor and client.

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RATIONALE OF TWO MODELS (..contd)

OFF-SITE MODEL: After Dot-com boom.

Had proper Communication Standards and excellent network infrastructure.

Dot-com Bust (after 2000) Meant more cost-cuttings. Solution was to outsource/off-shore.

Enabled delivering equally good quality at lower cost.

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EMERGING MODEL- GLOBAL DELIVERY MODEL

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RELATIONSHIP BETWEEN TWO TEAMS

EMERGING MODEL-

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INDIAN IT SERVICES OFFSHORE PENETRATION – CURRENT AND FORECAST (BILLIONS)

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Source: Pacific Crest Securities, “Industry Overview,” February 27, 2007 (based on NASSCOM-McKinsey Study 2005)

AN OVERVIEW OF OFFSHORE MARKET

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AN OVERVIEW OF OFFSHORE MARKET(..contd)

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ADVANTAGES OF INDIA AS AN OFF–SHORE DESTINATION

THE INDIA STORY: Perhaps the only country to have benefitted

from the dot-com burst.

Second Buyer.

IIT and other premier education institutes.

Y2K04/10/23 12

THE INDIA ADVANTAGE

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EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION

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INDIA

CHINA

PHILLIPINES

RUSSIA

MEXICO

EMERGING COMPETITION TO INDIA AS AN OFF–SHORE DESTINATION

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TransCrit – Offshore IT Consulting-2003

BIBLIOGRAPHY

Friedman, Thomas L. The World is Flat. New York: Farrar, Strauss and Giroux, 2005.

Case: “vCUSTOMER: ESTABLISHING A GLOBAL FOOTPRINT”.

“What Makes Offshore IT Different?“ Transcrit 24 August 2008 <http:// transcrit.com>.

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BIBLIOGRAPHY (..contd)

“The Art of Globalization-Opportunities and challenges in an evolving market.“ neoIT 24 August 2008 <http:// neoit.com>.

“Global delivery model." 24 August 2008 offshore-softwaredevelopment <http://www.offshore-softwaredevelopment.com/global-delivery-model.asp>.

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