Outsourcing which special reference to services in India

Résumé du document

We focus on outsourcing with special reference to services in India. Following the effects of globalization of the economy and the international concurrence that follow, many companies are trying to stay competitive. Technological progresses in telecommunications offered possibilities to delegate non core operations or jobs to external companies. This is called outsourcing. The term "outsourcing" was created artificially and derives from the expression "Outside Resource Using". In order to cut costs, outsourced activities get transferred to low cost countries. This is called offshore outsourcing. Offshoring has become an increasingly good option for companies looking to improve their operational efficiencies and business performance, especially in services. Therefore, offshoring of Business Process Operations has seen a phenomenal growth during the last four years. In an offshore BPO, business processes are performed in one country and the output of this work is used in another.

Extraits

[...] The time shift difference forces foreign workers to work during the night in order to satisfy customers abroad and that affects the productivity of some workers. * is The suffering of the US IT sector Recently, three million US software programmers realised that their employment paradise disappeared, because Indian programmers do the same work for one fifth of their salary. US software developers "are competing with everyone else in the world that has a says Robert R. Bishop, Chief Executive of computer producer Silicon Graphics Incorporation. Consequently, US students stopped studying computer science and focusing on business, because they feel the trend. [...]

[...] - Production offshoring To relocate manufacture processes to low-cost destinations. Examples of production offshoring could include the production of electronic components in Malaysia for US computers. - Services offshoring Thanks to the “amounts of reliable and affordable communication infrastructure following the telecom and internet expansion of the late 1990s” and the digitization of many services, numerous parts of the current services were shift to low cost countries. Business process outsourcing (BPO) Outsourcing of full business processes like call centers and payroll analyses. [...]

[...] Figure Humor picture, Breen, S. ,Grande Avenue, UFS Inc. Numerous Indians having studied in the US cannot stay much longer after their graduation, because American visa regulations only allow them to stay for a short period of time. Even though, many of them returned to the USA in order to work legally in American companies, but for Indian outsourcers. Because of certain US laws those companies could ironically hire those Indian employees by abusing legislation. According to Business Week On-line, thousands of jobs are outsourced. [...]

[...] Figure Accenture and Oracle buildings in Bangalore Bangalore and the outsourcing success of the Tata group Most of the latest Indian IT outsourcing process took place in Bangalore, Karnataka. This city is now the second largest computing services place in the world. According to a joint survey conducted by KPMG, and Nasscom the state of Karnataka, it is the most attractive location for ITES-BPO firms for setting up their operations in India. In December 2004, Microsoft announced its expansion of the Indian sales force by investing in a research centre in Bangalore. [...]

[...] The economists Prahalad and Hamel defined the theory of the “core competence” as area of specialized expertise that is the result of harmonizing complex streams of technology and work activity”.[9] Core competences also play a major role in the success of a company because they assist in acquiring a short term comparative advantage. According to this theory, each activity which can be better implemented by another company should be preferably outsourced. Fig : Focusing Management Ressources on the core Business, NLI Research Institute That is why numerous companies concentrate their expenditures on activities that result in attaining services and products of high added value. [...]