Post on 17-May-2015
transcript
Report on contemporary issues in management
Recent trends & current issues
Submitted By Nishant sharma IIIM,Jaipur
INTRODUCTIONA Working Definition of Outsourcing
OUTSOURCERCOMPANYServices
OrganizationLevel
Agreement
ServiceLevel
Agreement
Outsourcing denotes the continuous procurement of services from a third
party, making use of highly integrated processes, organization models and
information systems.
INTRODUCTION
INTRODUCTIONA Working Definition of Outsourcing
What is Outsourcing?
Outsourcing - “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources” Dave Griffiths
Why Outsource?Provide services that are scalable, secure, and efficient, while improving overall service and reducing costs
Why do Companies Outsource?
Key areas of outsourcing ?
•Information Technology/IT solutions
•Call Centers
•Finance & Accounting Outsourcing
•Procurement Outsourcing
•Textiles
•Manufacturing
• Human resource Management
outsourcing
Advantages of outsourcing
Cost Effective
Skilled Expertise
Distribution of risk
Access to world-class solutions
Time zone difference
Focus on core competencies
Improving customer service
Better people
management
Increased productivity
and Efficiency
Disadvantages of outsourcing
Loss Of Managerial Control
Hidden Costs
Bad Publicity and Ill-Will
Linguistic barriers
Threat to Security and
Confidentiality
Quality Problems
Lack of customer
focus
lose talent inside within
your company
Tied to the Financial Well-
Being of Another Company
Problems with outsourcing
• Loss of Control• Increased cash outflow• Confidentiality and security • Selection of supplier • Too dependent on service provider • Loss of staff or moral problems• Time consuming • Provider may not understand business environment• Provider slow to react to changes in strategy
Types of outsourcing
• Business process outsourcing (BPO)
BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions or processes to a third-party service provider.
Types of outsourcing
• Knowledge process outsourcing (KPO)
KPO describes the outsourcing of core business activities, which often are competitively important or form an integral part of a company's value chain. Therefore KPO requires advanced analytical and technical skills as well as a high degree of proprietary domain expertise
Types of outsourcing
• Legal process outsourcing (LPO)
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. This process has been marked by the practice of outsourcing any activity except those where personal presence or contact is required.
Types of outsourcing
• Recruitment process outsourcing (RPO)
Recruitment Process Outsourcing is a form of business process outsourcing (BPO) where an employer outsources or transfers all or part of its recruitment activities to an external service provider.
Types of outsourcing
• Engineering process outsourcing( EPO)
EPO offers global consulting and outsourcing services providing end-to-end services in the areas of Engineering and Technical Process Outsourcing.
Outsourcing in India
1970s to early 1990s
1994 to 1998 1999 to 20012001 to present
Recent trends in outsourcing
Figure 1: How will the outsourcing market develop?
Facts related to outsourcing
• 40% to 50% of the top 500 companies in the world is leveraging on outsourcing for most of their business processes.
• current figures values this robust industry to a staggering $20 billion USD.
• On an average global outsourced projects involve about 28% that belong to the hardcore IT sector, 11% to finance sector, 15% to sales and marketing and 9% from administrative sector. The remaining 22% belong to many other different sectors such as consumer distress calls, general data segregation jobs, tourism etc.
quarries ? ? ? ? ?
Thank you