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on a few functions. Outsourcing involves withdrawing from certain activities / functions and relaying on outside vendors to supply the needed products, support services or activities. Many Indian leading companies provide outsourcing support services. Infosys, Wipro, ICICI InfoTech, L&T InfoTech are some of the leading players. The outsourcing industry is growing. Though technical support and financial services have dominated Indias outsourcing industry, newer fields are emerging which are expected to boost the industry many times over. Outsourcing of human resource services for HR BPO (Business Process Outsourcing) is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $ 40-60 billion per annum. India has immense potential as more than 80 % of Fortune 1000 companies are planning to adopt offshore BPO as a way to cut costs and increase productivity. India, like the USA, follows common-law jurisdiction based on British legal tradition. Indian legal training is conducted in English. Appellate and Supreme Court proceedings in India take place exclusively in English. Indian legal opinions are written in English. Due to time-zone differences, night time in USA is daytime in India, which means that clients get 24 hour attention. Small and mid-sized business offices can solve staff problems as the outsourced lawyers from India take on the timeconsuming labour intensive legal research. Large law firms also can solve the problems of overstaffing by using the on-call lawyers. Though going is good, the Indian BPO services providers cannot afford to be complacent. Philippines, Mexico, Indonesia, Malaysia and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. The possible dark horse could be South Africa and even China. BPO is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it? Secondly the outsourced activity generally is not crucial to the core competency of the organization. Thirdly, outsourcing reduces the companys risk exposure to changing technology and / or changing buyer preferences. Fourthly, BPO improves organizational flexibility, cut cycle time and reduce coordination costs. Finally outsourcing allows a company to concentrate on its core business and do what it does best. (Source: K. Aswathappa, International Business, Third Edition) Concepts that can be learned from this case study: 1. Concept of outsourcing and its advantages 2. Core competency Exercise: 1. Analyze the competitiveness of Indian BPO industry in the light of Porters Diamond Model. 2. Carryout a SWOT analysis on Indian BPO industry.