business process outsourcing to ldcs - india
DESCRIPTION
BUSINESS PROCESS OUTSOURCING TO LDCs - INDIA. World Economic Geography Hippo Channel Present. OUTLINE. Outsourcing Trend. Terminations LDCs Outsourcing BPO Reality trend Kinds of service activity Destinations. TERMS. LDCs = Least Developed Countries. TERMS. TERMS. - PowerPoint PPT PresentationTRANSCRIPT
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BUSINESS PROCESS OUTSOURCING TO LDCs - INDIA
World Economic Geography
Hippo Channel Present
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OUTLINE
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Outsourcing Trend• Terminations
LDCs Outsourcing BPO
• Reality trend Kinds of service activity Destinations
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TERMS
• LDCs = Least Developed Countries
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TERMS
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TERMS
The process of arranging for sb outside the company to produce goods or services for that company
Do what you do best Outsourcing the rest
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TERMS
BPO = Business Process Outsourcing Subset of outsourcing Involve contracting of the operations & responsibilities of
specific business functions / processes
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Outsourcing: BPO Trend
• Kinds of service activity: call centers, computer network support, legal services, accounting, procurement, software development, R&D and engineering services
• Destinations (LDCs): India, Israel, the Philippines, South Africa
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INDIA’S COMPETITIVE ADVANTAGE
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1. Cost of production
30 to 40% of costs can be saved!
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2. Workforce
Workforce
Large labor pool
Skilled and
talented workers
• 2nd most populous country•Working age: 64.3%
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Skilled and talented workers
+ over 300 universities and 16,000 colleges providing broad education
+ the "English" Advantage
+ the presence of famous technical and business schools
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3. Location:
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• Time difference between the countries allows Indian companies to complete the task before people from US and European countries come into work
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4. Faster and better communication:
• Advancements in calling, emailing and chatting
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5. India has a Stable Government:
• Improving the infrastructure, communication, etc.
• Adopting IT outsourcing friendly policies in taxation, power, telecom, industrial parks, and special economic zones.
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India enjoys the confidence of global corporations:
• 82% of the US companies ranked India as their first choice for software outsourcing
• Indian-Americans run more than 750 companies in America's Silicon Valley
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India enjoys the confidence of global corporations:
• “You liberated your markets and now you have one of the 10 fastest growing economies in the world"
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India: the most attractive destination for outsourcing
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OUTSOURCING TO VIETNAM
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Rank Country
1 India
2 Philippines
3 Ireland
4 China
5 Brazil
6 Poland
7 Viet Nam
8 Canada
9 Mexico
10 Russia
Top 10 Offshore Nations - Tholons/Global Services (2009)
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ADVANTAGES DISADVANTAGES
Low Production Cost A strong labor Pool Stability Government Incentives Vietnamese diaspora: Vietkieu
Workforce limitationsTechnology InfrastructureScaleGovernment- related
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2010 Region Country City Status 2010
1 South Asia India Bangalore ESTABLISHED
2 South Asia India Mumbai
3 South Asia India Delhi (NCR)
… EMERGING
16 South Asia Vietnam Ho Chi Minh City
….
21 South Asia Vietnam Ha Noi
60 Middle East and Africa
Turkey Istanbul
... ASPIRING
100
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References
• Building a Future with BRICs: The Next Decade for Off shoring by Mark Kobayashi-Hillary (Kindle Edition - Sep 30, 2007)
• Outsourcing to India: The Offshore Advantage by Mark Kobayashi-Hillary (Kindle Edition - April 19, 2005)
• http://www.vietnam-business-blog.com• http://www.globalservicesmedia.com• http://www.businessweek.com• http://madaan.com/outsourcingindia.html
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Thanks for your attention!
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