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Slide 1 - BPO: Business Process Outsourcing Leanna Dertinger, Jana Earnshaw, Mitsuru Kajio, Jesse McShane & Simon Seid
Slide 2 - Terminology Outsourcing Offshoring BPO ITO Fragmentation
Slide 3 - History of BPO World War II Increased international trade 1960s – 1980s Importing turns to outsourcing 1990s – Present Services now outsourced BPO begins
Slide 4 - HP Goes The Distance For P&G Corporate Culture & Brand Finance and Accounting Bangalore & Mumbai, India Global Customers w/ Local Support Core Competencies cut Defects
Slide 5 - Global Accounts Payable Processing
Slide 6 - BPO Advantages Productivity Improvements Cost Savings Improved HR Focus on Core Business Competency Increased Capability
Slide 7 - Benefits
Slide 8 - BPO Disadvantages Recent Studies Knowledge Disappears and is Transferred to the Outsourcing Partner Poor Quality Control Restoring Operations is Complicated Lack of Loyal Employees Reduction in Strategic Alignment
Slide 9 - Video
Slide 10 - Why BPO in India? Language Education Quality - Communication - No pirated products If Chinese Government Policy changes, what will happen? - Turning point will be by 2010
Slide 11 - Comparison: India versus China India Educational System Cost Advantage Time/Distance Advantage English proficiency Government Support Quality Labor Pool China Educational System Cost Advantage Time/Distance Advantage Close to Japan
Slide 12 - Matching Process to Market India Development of software Call center IBM China Manufacturing of components Japanese IT Companies
Slide 13 - Source: BusinessWeek, The Future of Outsourcing
Slide 14 - Hot Players in Outsourcing Source: BusinessWeek, The Future of Outsourcing
Slide 15 - 5 Managerial Steps That Pay Off Go Offshore for the right reasons Shifting a broken process overseas may not fix it Choose your model carefully Could cost more…..(I’ll fix this part) Get your people on board Employees and middle managers can make the bold move happen….or stop you in your tracks
Slide 16 - 5 Managerial Steps That Pay Off Be prepared to invest time and effort Often what is lacking in offshore partners is a lot of deep process knowledge Treat your partners as equals Telling your partners exactly what to do and how to do it is not conducive to the entire process
Slide 17 - Examples Penske and India’s Genpact Eli Lilly
Slide 18 - Sources Gibson, Stan. “HP Goes DistanceFor P&G,” eWeek, 3/20/2006, Vol. 23 Issue 12, p49-52, 3p. “A world of work,” The Economist, November 13, 2004, pp. 6-7. Booton, Bob (2005). Outsourcing in a box. San Jose, CA: Bidness Books Publishing. Engardio, Pete, "The Future of Outsourcing," Business Week, January 30,2006. pp. 50-58. Kripalani, Manjeet, "Five offshore practices that pay off," Business Week, January 30, 2006. pp. 60-61. http://economictimes.indiatimes.com/articleshow/1468167.cms http://www.behtimes.com/article/123/7/ http://us.rediff.com/money/2004/jan/08bpo.htm http://globalconnect.ucsd.edu/taipei/documents/Inter-RegionalPartnershipsAnIndiaPerspective.pdf http://www.cyfuture.com/business-process-outsourcing.htm http://www.bpoindia.org/ http://www.xicom.biz/research.html http://www.networkworld.com/news/2004/0407updatibm.html http://encarta.msn.com/encyclopedia_701702628/Outsourcing.html