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China – India Initiative for Competitive Adaptation > ChindiCA
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India Outsourcing Program 2005
Module 1
Outsourcing to India
7. - 13.02.05
Study Visit and Partnership Plan
Nasscom 2005 : Share insights, Learn Best Practices, Network for Business
Mumbai and Bangalore
www.nasscom.org/nasscom2005/
Module 2
6 ECTS credits for Managing Outsourcing and 6 ECTS credits Creating Outsourcing Plan Tampere
Mar - May 2005
Includes 36 hours teaching + literature +exercises
For Companies: 2500 EUROS + VAT
(outsourcing plan consultancy).
Benefit
At the end of the course participants should be more knowledgeable, competent and confident in carrying out outsourcing activities effectively. It will help make participants make decisions about whether offshore outsourcing would benefit their business You will discover the opportunities and obstacles associated with offshore outsourcing and other global delivery models, and understand in practice how to manage outsourcing projects successively. The course has been designed to help you to develop a fundable Outsourcing Plan with crucial fieldwork support from selected and talented master level University students.
Aim
To develop a deeper understanding of global outsourcing and the range of business models it has given rise to using real-life examples from a variety of industries and countries. To provide participants with tools, techniques and standards now available to companies to plan, control and measure performance of outsourcing activity. To offer insights into the outsourcing process from both the corporate and the vendor perspective and hence enable participants to learn from success and mistakes. To help participants develop a fundable Outsourcing Plan for their own business.
Rationale
If Outsourcing is the answer what are the questions ?
And there are many :
- How can I develop an effective outsourcing strategy?
- How do I manage my outsourcing relationships?
- Where should I source IT and business process services?
- What are the cost implications of outsourcing?
- What are the security and regulatory concerns when outsourcing?
- What business processes are best suited for outsourcing for my vertical?
- And so on
With myths, realities, best practices and innovations comes complexities and significant management responsibility. The key is to invest in new processes to manage the relationships. According to AMR Research in fact 8 in10 projects do not achieve original ROI, due to in large part the lack of a relationship model. Despite the boom in outsourcing, firms still will face considerable challenges in successfully executing an offshore model. More than 40% of the new offshore initiatives will fail to achieve the anticipated savings, scale and risk diversification. The key reason for these disappointments will not be due to supplier capability but buyer preparation and management.
So when developing an outsourcing strategy, companies have to not only understand the future impact of offshore outsourcing, BPO, and on demand, but also the costs involved with managing the service provider, and the organisational changes necessary for outsourcing success. Done correctly, outsourcing can save money, generate revenues and improve capabilities. Done incorrectly outsourcing can be a disaster. To succeed in the global market place and survive global competition Finnish companies need to seek the same benefits that are going out to those competitors who have learnt to manage outsourcing successfully. They also want to benefit from the scale and depth of experience achieved by the international vendors who have been servicing outsourcing needs of competitors and successful companies.
Module 3
Outsourcing to India Conference Myths, Realities & Best Practices Tampere
9.03.05
100 euros + VAT (22%)
Overview and Highlights
The ‘Outsourcing to India’ Conference is designed to help senior executives answer key questions by evaluating the potential that outsourcing can deliver not only to their bottom line, but also in gaining market share and achieving competitive advantage.
Time has come when investors will not invest in a company that has not figured out a way to outsource or if they don’t know if they will outsource. Customers have already moved to competitors who have been successful in passing on the benefits of outsourcing and savings they entail.
The ‘Outsourcing to India’ Conference aims to provide a critical understanding of the whats, whys and hows of opportunities and benefits with insights into the Indian outsourcing experience. The Conference will also uniquely showcase presentations by leading Indian vendors on how they measure up on quality standards for vendor selection and performance metrics and on the latest innovative models in outsourcing designed to make hidden costs disappear, outsourcing surprises vanish and which enable both parties to share in the gains.
Outsourcing raises as many questions as it answers
How does outsourcing deliver the bottom line, help gain market share and achieve competitive advantage?
How can outsourcing prepare you for future change and innovation?
Which companies are winning are loosing in outsourcing to India and why?
If outsourcing is the answer, what are the questions Finnish companies must ask?
What is new, different and the latest in innovative models of outsourcing?
Who should attend?
- Business Management
Operations Executives
Business-unit executives and general managers
Enterprise process directors/managers
CFO’s and financial/asset directors/managers
Strategic planners
Purchasing and procurement directors/managers
Business Analysts
Legal counsel
Finance professionals, media executives, investors
Human resources professionals
Any executive charged with managing external/partner relationships
- IT Management
CIOs/CTOs and their direct reports
IT operations directors/managers
IT services sourcing directors/managers
IT analysts
IT security directors/managers
- Government, municipal and public sector officials
Anyone else who wishes to be kept informed and kept uptodate from an independent and professional perspective.
Why Outsourcing?
Outsourcing is not just about savings or reducing costs anymore. It is increasingly about revenue. Outsourcing is helping companies to dramatically lower their costs and drop their prices to increase demand for their products and services, attract new customers, and even enter new markets. Companies are now freeing up resources to focus on new business opportunities and innovation. A wide range of business models is emerging as Finnish companies seek to exploit the benefits of outsourcing.
Gartner has described the move towards offshore sourcing as an ‘irreversible mega trend’.
Companies who fail to take advantage of the emerging global IT services industry will loose out to those who do.
The CeBit fair in Hanover next March 05 will for the first time have an exhibition dedicated to Outsourcing.
According to AMR Research companies use as much as 80% of their IT budgets to maintain the status quo. They are often forced to delay investments in innovations that aid growth because they are spending too much of their limited IT budgets on non-strategic activities, such as data centre operations, application development and maintenance, and staffing an IT help desk. By 2010, cost savings from offshore outsourcing will create an additional $30B per year in new investments for US companies. In the next six years, 15% of IT jobs required by U.S.- based companies will be performed in India, AMR Research predicts. By then, the Indian IT labour force will be larger than three million, and half of the workers will be performing jobs for US companies. With average US IT fully loaded labour costs approaching $80K per year, a worker in India represents a $36K savings per year, and 1.5 million workers represent $54B in savings each year. AMR Research shows that companies reinvest 60% of savings from outsourcing in IT or business unit projects, that’s $30B per year.
Companies, on average, invest $2.5M per year for a strategic project. Depending on the specific project category, average investments per year break down as follows:
- Supplier-facing projects - $1.8M
- Product Lifecycle Management (PLM) projects - $2.3M
- Customer-facing projects (the most expensive) - $3.4M
With the savings from outsourcing to India, US companies can fund
and launch 12,000 new strategic projects.
Investments that allow companies to improve by just 10% their ability to fulfill orders that are complete, accurate, on time, and in perfect condition can result in additional earnings of 50 cents per share - a result that stakeholders will applaud.
Similarly Finnish companies also stand to benefit from these emerging opportunities in the outsourcing landscape.
Why India?
India is the undisputed leader -- Financial Times Report 1.12.05
According to Esa Peltonen Research Manager at IDC Indian companies seem to be the preferred alternative. This is mainly because they are larger and have access to more staff than, for example, Baltic countries such as Estonia. Indian companies are also regarded as having a better knowledge of business processes.
According to AMR Research though Offshore Outsourcing isn’t just in India, the country will remain safe choice for companies considering outsourcing. Companies effectively outsourcing to India can slash by 40% to 50% the cost of application management, data centre operations, help desk support, and other non-strategic activities.
Microsoft announced in Dec 2004 a big expansion of its Indian facility and a $15m deal with Infosys, one of the giants of Indian outsourcing. SAP also plans to boost its Indian presence.
From October 2004 Elcotecq started manufacturing Nokia phones in India. These are India's first mobile phones manufactured in India.
The Indian outsourcing market, which includes services such as call centres, back office operations and IT services is forecast to grow from $2.3 billion in 2002 to $8.5billion in 2008, according to NASSCOM, the Indian Software Companies Association.
Bangalore, India’s leading ‘offshoring’ city, recently claimed it was on the verge overtaking Silicon Valley as the leading IT employment centre in the world, such is the volume of work being outsourced from there.
Leading Silicon Valley Venture Capitalists that funded Google, Yahoo, Amazon and a host of other successful companies have now opened a VC Bank in Bangalore to fund the next Big Idea.
An Indian IT giant is being predicted to join the ranks of top 20 global companies in the world in the next few years.
Why Outsourcing to India Conference?
The trend towards offshore IT working is relatively recent phenomenon and many companies have little experience on which they can draw. With the rapid market growth there are many companies touting for business but the quality and reliability of services offered varies considerably.
As demands and expectations shift new models and applications emerge, along with new offerings and vendors. Outsourcing has become a science. The Conference covers performance metrics, innovative models and Creative solutions.
Outsourcing is no longer just about call centres and assembling products - it is about Finnish companies using the sophisticated design and management capabilities of their partners and their formidable domain knowledge to go where they can't go alone. The Conference brings world class vendors who have partnered with prestigious companies globally.
Outsourcing is a politically sensitive and socially controversial issue. Finnish press offers a variety of discussion; there is speculation about the number of Finnish jobs that will be lost and hearsay complaints about working with cultures distant from Finland. What is missing however are factual details of how companies and their vendors have gone about offshoring and what the results have been. Companies and their vendors are often reluctant to talk openly about their experiences, making it difficult for other managers to learn from their mistakes and successes.
Outsourcing to India aims to highlight the myths, realities and the best practices that are emerging from those factual details. It also aims to uncover the hidden techniques you may find useful for 'connecting the dots' between those same myths, realities and best practices.
Hence the Outsourcing to India Conference.
» Payment procedure
» Conference program
» Map of the campus
» Media Release 4.3.2005
(pdf/58kt)
» Presentations |
