OUTSOURCING PLANNING

Group Members

Sumeet Rao 39

Aastha Salaskar 59

Krunal Madia 58

Dhanashree Kalamkar 18

Ritesh Karunakar 19

What is Outsourcing?

• Involving the contracting out of a business function to an external provider.

• "I view outsourcing as part of the transformation strategy"

--Pat Wallington Xerox.

Why Outsourcing

• Cost Savings• Focus on Core Competencies • Operational expertise • Staffing issues - Cheap Labour• Specialized services • Reduce time to Market • Time zone • Enhance Risk Management • Better Quality products• Competitive Edge• Customer Satisfaction• Faster Deliverables• Lower infrastructure

investments

5 W’s of Outsourcing

• Why

• Who

• When

• What

• Where

Steps for Outsourcing

Know Thyself First Request for proposals Examine the Service Provider Choosing a partner Finalizing the contract SLA – Service Level Agreement : -

Quality definitions, Time frames,

Other terms and conditions

Selection of the Vendor Things to be verified by the company before selection

People Management• Recruitment Process• Training & Development• Performance Appraisals • Average salary per level• Succession Planning• Attrition rate• Absenteeism rate

Staff• Average age• Qualification• Gender ratio

Pricing Model

Infrastructure• Physical environment of servers• Storage space of physical papers if any

Selection of the Vendor

• Financial Stability • Transition Management• Reference Checks with

other Clients/Partners• Cultural Compatibility

Governance Model• Confidentiality Agreement• Security of data• User matrix for secured data

Audit Compliances• ISO / ISMS

certification of the company

Platform Strategy• Software - expertise for new

software• IT support for new software

Recruitment Process Outsourcing

Selection Criterion

• Larger staff of recruiters

• Databases of candidate resumes

• Investment in recruitment tools and networks

• Security of data

• Level of recruiters handling the positions

Activities Performed

• CV / Resume Screening

• Assessment / Skill Testing

• Background Verification

• Reference Checks

Benefits of RPO

• Cost effectiveness

• Service & Speed

• High quality specialists

• Transaction based Payments

• Reduced storage costs

Case Study

Right Tracks to Infosys

Managing a 49,000-mile long railway track, with over 36,000 employees spread across 28 states, can be a challenging task.

Right Tracks is one of the largest railway companies in the US, plays a vital role in connecting a large number of individuals and businesses through this vast network for the last 150 years. 

A few years ago, the company decided to leverage outsourcing to manage the complexities of its business in a cost-effective way. It wanted to transform its business model to create the best-in-class infrastructure, combining the latest technology with efficient business processes.

Reasons for Outsourcing

• Passive in Operations

• Government managed

• Lack of Revenue Mgmt.

• Conservative Business

• IT backwardness

• Process Optimization

Why was Infosys Selected?

• Reputed name

• Proven Delivery record

• Process capability Maturity

• Global Delivery Models / Standards

Whom to Outsource?• Track record• References• Clients• Financial Stability• Cultural

Compatibility• Post development

Support• Infrastructure• Technical Expertise• ISO Certification

Project execution

• Pilot Testing

• Track Measurement System

• Inventory Mgmt. / Repair Information

• Finance & Revenue Management

• HR Process & Payroll

• Project Monitoring / feedback

Post Rollout

• Automation of Business Applications

• Savings of $325000 in Operational expenses

• Overall $20 Million in savings

• Reduction in expenses

• Performance Optimization

Negatives of Outsourcing

• LOCAL

• Lack of Control• Loss of Confidentially• Management

challenges • Security risks • Legal concerns • Knowledge transfer

challenges • Additional Inventories

• GLOBAL

• Political and economic Stability

• Language and cultural Barriers

• Infrastructure Development

• Social and Labor issues

• Time zone challenges