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8/10/2019 ITBM IT Outsourcing
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IT OUTSOURCING
PRAGYA NIGAM(2014200)
PRAKASH CHANDRASEKAR(2014201)
PRATEEK SHREEMAL(2014202)
PUSHPENDER PARASHAR(2014211)
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Roadmap
What is IT outsourcing?
Why companies outsource their ITDepartment?
Who are the major players?
How a typical IT outsourcing happens?
Roles of Stakeholders How technology helps IT Outsourcing?
Rewards and Risks
Trends in IT outsourcing
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What is IT outsourcing?
IT Outsourcingis the practice
of su!contracting responsi!ility for all or partof an IT function to a third"party ser#ice
pro#ider that manages the work$
%usinesses use IT outsourcing for functions
ranging from infrastructure to software
de#elopment& maintenance and support$
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Why companies outsource?
Reduce and control operating costs
Impro#e company focus
'ain access to world class capa!ilities
(ree internal resources for other purposes
) function is time consuming and di*cultto manage or is out of control
Insu*cient resources are a#aila!leinternally
Share risks with a partner company
+ake capital funds a#aila!le
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Reasons for outsourcing
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Major playersIndia and China
The typical destinations of o#erseas IT outsourcing are Indiaand ,hilippines for the )merican and -uropean companies
.hina and /ietnam are preferred !y 0apanese companies$
+ajor IT outsourcing companies in India are T.S& Infosysand WI,RO$
Latin America .ountries like 1nited States and .anada usuallyseek 2earshore Outsourcing in 3atin )merican countrieslike +e4ico& .osta Rica& ,anama& !ecause of a closercultural match and time 5one$
.ompanies outsourcing are c!re & )merican e4press & cscetc$
Eastern Europe
In recent years -astern -urope has also !ecome a commonITO destination$
ITO to -astern -urope allows Western -uropean and 2orth)merican companies to 2ear shore & Remote In"source& and
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How IT Outsourcing happens?
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What is Outsourced?
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Roles of Stakeholders
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Role of Technology in IT Outsourcing We! .onferencing
/OI,
/irtual ,ri#ate 2etwork7/,28 .loud computing&!usiness analytics
software& social media platforms
On contrary&sometimes .lients want older
and trusted technology to !e followed -g9+ainframe .omputers
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Rewards
(ocuses on .ore )cti#ities
-*cient
Reduced O#erhead .ontrol o#er Operations
Sta*ng (le4i!ility
Risk +anagement
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Risks Involved
3oss Of +anagerial .ontrol
Hidden .ostsThreat to Security and.on6dentiality
:uality ,ro!lems %ad ,u!licity and Ill"Will
3ack of customer focus
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uture Trends
-#erything"as"a"ser#ice
-mergence of automated self"
ser#ice platforms .o"creation
.rowdsourcing
Outcome"!ased ,ricing models
Outsourcing will o#ercome all
emotional !arriers
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Thank you!!!