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