Since the late 19 century, as described Mukherjee (Cited in Peng 2014) Indian Business Processing Offshoring (BPO) industry case study, outsourcing business processes offshore has been the vital strategy in response to the business survival of the rapidly internationalised resource environment. In essence, as described Mukherjee, it is the complexity of definitive features for a successful BPO for Multi-National Companies (MNC) and the lack of regulative measure of examination and control of the BPO industry that resulted in a double edge sword; as offshore outsourcing highly value adding business process activities increases the potential in relieving operation process capacity, subsequently allowing effective optimisation of existing …show more content…
Industry analysis
To understand Mukherjee’s Case study of BPO as an international strategy of outsourcing, context and requirement need to be realised. Offshore outsourcing, regardless of the macro or micro economics of the existing company, is historically conducted to gain knowledge and cost effective method within the business operation processes (Bunyaratavej, Doh, Hahn, Lewin, Massini 2011), ensuring business operation efficiency within the global economy (Lewin and Couto 2007). Yet it wasn’t until the late 20 the century, research and case studies perspectives involving different stakeholders primarily business industries (Corbett, 2004) and institutions (Drezner, 2004) that caused controversy. In principle, BPO as an outsourcing activity is a phenomena of procuring cost –effective operation process resource transnationally (Doh, Bunyaratavej, & Hahn, 2009), especially unique resources such as skilled labour, in order to reduce cost (Smith, Mitra, & Narasimhan, 1998), allowing effective appraisal of critical activities of supply chain (ed. Merchant & Verbeke 2012) whilst resolving potential bottleneck operations by decreasing non-critical activities for resource allocation. A 2004 industry presentation conducted for IVEY faculty found Indian
In general, the outsourcing is hiring the foreign workers/company to do a particular task, as opposed to hiring domestic workers/company. Besides the outsourcing, the international purchase is an essential activity of companies. In the trend of a booming global economy, a company only focuses on its core value and hire suppliers to supply the necessary product and service. The relationship between companies are complicated and interdependent.
At the time of development of globalization there were many concerns about its benefits. However, it has brought significant changes in all segments of human life and International business is one area in which it contributed heavily (Reich, 1998). Companies all over the world are currently formulating their business strategies mainly after considering the trends in global market instead of domestic market. Outsourcing and offshoring are some of the new business principles emerged in this world after the implementation of globalization (Samimi and Jentabad, 2014). The core of these new business concepts is to exploit the business opportunities in overseas countries as much as possible (Samimi and Jentabad, 2014).
Davies P. (2004). What's This India Business?: Offshoring, Outsourcing, and the Global Services Revolution. London: Nicholas Brealey International.
One of the biggest impacts of globalization has been to IT (Information Technology) and BPO (Business Process Outsourcing) sector. These two sectors have progressed at never before pace. Key reasons for this is easy and cheap availibilty of skilled workforce with
The top opportunity identified after completing the T-Box Organizational Productivity for Bridgestone Americas, Inc. is offshore outsourcing. This opportunity would provide alternative options for resources that will lower costs. As a project manager for the IT Project Management Office, we are given budgets for each project that have to be closely monitored. Normally, an offshore resource per hourly rate is lower than a company employee or domestic companies. The lower hourly rate would allow more hours to be worked on the project resulting in increased quality of application or product. In addition, customer satisfaction is achieved while delivering projects under budget. According to Gupta (2009), “offshore outsourcing can lead
The essential goal of any business ever has been to make the most money that they could. This element is the very basis of what we know today as commerce, but the way modern businesses have done this is completely different and far riskier than what businesses did in the past. One controversial way they are doing this is through “outsourcing” in which companies move overseas for a variety of reasons and it has already become a commonplace practice in modern business because of its benefits, but it is the unforeseen consequences – that undermine these benefits – which are just as ground-breaking.
This paper captures the most prominent services and issues associated with today's outsourcing environment. Outsourcing is the modern business term for having other companies accomplish basic business processes rather than doing them inhouse. While outsourcing has always been an important business option, modern technical capabilities are fast making outsourcing a critical requirement in competitive, cost conscious industries. However, our recent experience with terrorist challenges indicates that a second look is needed to ensure that outsourcing risks are still acceptable.
The problem of outsourcing is not new, but is still a keen business problem for today’s economy. Both manufacturing and services are able to be sent overseas. Our company is deciding whether or not to outsource, and if so what and how much we should outsource.
In the past decade the topic of outsourcing has become a heavily debated subject on if it is ethically correct to outsourcing jobs to foreign countries. Outsourcing has become more and more an option for many companies and not just an economic fad. The decision to outsource is a difficult one for any company to make because there are many advantages and disadvantages to consider. The decision to outsource affects many people, communities, and industries so if a corporation decides to outsource they must consider how it will affect human dignity, the common good of the economy, and subsidiary.
Offshoring is the practice of relocating business processes to lower cost locations outside the country of origin. This is not a new practice for companies in the United States. Moving business processes to another country to take advantages of lower operating costs and cheap labor seems like a great idea. However, the dilemma for a company is whether the benefits of offshoring outweigh the risks. This dissertation will begin by briefly reviewing the history of offshoring. Next, it will examine the various advantages and disadvantages associated with offshoring. Thirdly, it will explore the growing trends of backshoring and nearshoring in situations where
Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry.
The service industry now makes up almost as much as 60-65% of the global economy with India being a major contributor to this industry (KPMG, 2016). India has dignity to know that its country is one of the fastest-growing service sectors in the world. According to KPMG (2016), services remain the key driver of India’s economic growth and continues to grow strong and steady. The services sector contributes more than 50% to India’s GDP and is growing at about 10% per year. IT outsourcing has been a major source of employment for the people living in India. The service sector in India has exceed agriculture with a greater share of GDP and is now considered a service based economy instead of an agriculture economy. In general, the service
The global economic downturn has impacted jobs outsourcing in the BPO industry as it has helped to be one of the largest job creators in India. Due to this, many companies had to increase their operations output and therefore employ more and more people to keep up with the expanding trend. One of the major impacts, being growth and maturity, had an effect on the BPO industry and contributed to the outsourcing companies and continued growth of the industry. The IT and BPO outsourcing boom created a huge impact in the Indian
In India, Business Process Outsourcing (BPO) is the fastest growing segment of the ITES (Information Technology Enabled Services) industry. Factors such as economy of scale, business risk mitigation, cost advantage; utilization improvement and superior competency have all lead to the growth of the Indian BPO industry. Business process outsourcing in India, which started around the mid-90s, has now grown by leaps and bounds.
India has created as a hot objective for BPO work of late. The triumph is primarily due to the route that there is a prepared availability of considerable measures of advantages acquainted with English and the consistent and persisting tries put in by the associations in India that do BPO work. Further, the way that Indians are general taught (by Asian models) and that there is a humungous arrangement of benefits who have graduated good to go and enhancement has intimated that the BPO story took off in right earnest in India. Added to this is the way that the demographics help India since a lion's offer of its masses is lesser and under 30. This is the gathered demographic benefit wherein a country that is overwhelming obtains the tree become sustenances of having a work power which could be exploited. All these reasons have plotted to accomplish a steamed in the way the Indian BPO territory has performed.