Indian Bpo's Essay

List and describe at least three factors that a firm should consider when making an outsourcing decision.

Job outsourcing creates an initial job loss to the area in which it concerns. This happens because in a global economy, the idea is to move ones

P1 – Explain the effects of changes in the economic environment on a selected business.

There are many benefits of outsourcing that companies and countries seize to take advantage of. The biggest benefit is reduced costs of infrastructure and labor. According to the OneNeck IT Solutions, “The attraction to overseas outsourcing has traditionally been reduced costs. By moving support services to India or China, for

2. What recommendations would you give to the Brazilian government and its outsourcing industry in order to improve their prospects for success in building a strong international competitive position in the information technology outsourcing business?

When a company relies on a production facility that is not local to their home land, they lose the majority of the control of their operations. Many of the developing countries that are chosen to outsource are underdeveloped which comes with a great deal of instability. When a country is not developed, although labor costs are low, the education level, physical and

The only means for the IT companies to maintain business and to have minimal losses was to transfer their services overseas to India. Nonetheless, many of the people who had lost their IT jobs saw this as a disadvantage since they were the ones who had to either find another job that matched their skills or had to obtain new skills. Along with this, they, along with the majority of the workforce, saw outsourcing as something harmful to the American economy and that it caused increase in cost (Easterls, 166). These outlooks are not necessarily true, however.

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 outsourcing of non-core business and services has risen in recent years. The top benefactor of this rise has been India. Corporations have found a profusion of well-trained, English-speaking workers to cram into call centers and customer service jobs. This is even happening in high-skill positions like hospital X-rays technicians also. India is seen as the pioneer in outsourcing jobs

Also the inferior cost of operation and labour in India makes it an eye-catching location for companies to outsource to. According to (Kathleen et.al 2014 p.6) “outsourcing is not always the answer” companies and organizations should approach outsourcing claims with significant care and attention. Some disadvantages can be problems with quality if the outsourcing provider is untested or doesn’t have accurate processes. There is also a problem of loss of management control, when you have organizations in more than one country, Human Resource must focus on treating resources as global and not country specific, with economic expansion in India this company needs to make sure it has the organizational capability to operate in India (Banfield & Kay 2012 p.201). Whilst outsourcing, top management should demonstrate leadership in the arrangement of commitment, guarantee and participation in the process. Communication also plays a vital role in the management process whilst outsourcing, it’s important to keep employees up to date of your aims and intentions in a precise and suitable fashion. This gives employees a greater sense of trust and reliability in their manager. Managers should also make an effort to involve their employees and ask for their opinions on outsourcing, with more involvement in the development employees are more likely to consent

The meteoric rise of India in the area of IT and Business Process Outsourcing (BPO) was attributed to resource and industry based view of IB strategy (Peng et al 2008). These views are based on the opinion that cheap labour, excellent skills and virtuality are major factors responsible for their growth. Nonetheless, institutional considerations are found to be quite relevant in India’s context. Considerations in the areas of education subsidy to top Universities and various economic reforms including liberalisation by government institutions played crucial roles in making India a competitive environment for investments (Peng et al 2008). These institutional references can conveniently stand as the third tripod of the IB strategy.

India is facing competition from other countries around the world in IT outsourcing. China, Ireland, The Philippines, Malaysia, Vietnam, Poland, and Egypt are just some of the countries that are aggressively looking at IT outsourcing for growth. Over the years, these countries have been developing their country to be able to provide IT outsourcing and lay a strong foundation to sustain this new idea. According to KPMG (2016), some of the investments these countries have done are build a huge market share by delivering a wide-range of services across their products line, insights across industries, investments in industry specific offerings and intellectual property tools/templates and accelerators. KPMG (2016) states that the main reasons

Information and communication technologies are of paramount importance in the process of international outsourcing primarily through the technological advancement surge and demand in recent years. Through the rise of Information technology in recent years, the importance of international outsourcing rose significantly. Outsourcing is the contracting of the management and/or execution of a business function to an outside third-party contractor or subcontractor. Outsourcing typically refers to the contracting of services to an offshore, rather than domestic, company. While outsourcing has been an accepted business practice for

Tier1 cities have also seen an impact of the IT-BPO industry as the population in these cities have increased due to the growth of this industry. The IT-BPO industry is also looking at tier 2 and tier 3 cities as potential cities to expand into. These are all impacts of how IT outsourcing has effected India’s economy as well as the people living in this country.

Manufacturing, service and agriculture are the major economic activities in any country. In India, manufacturing and services together constitute nearly 75% of the GDP. Moreover, in recent years the growth in GDP is primarily due to the growth in these sectors of the economy. During the last ten years, the share of services in the GDP has grown steadily from about 40% to about