Outsourcing - Advantage India
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2011 Wipro Ltd - Confidential
© 2010
Outsourcing - A Personal Retrospective
Flowing With A Successful Idea!
Mostly A Win – Win Scenario
Over 80% Success Rate
Continuous Pushing of Boundaries
Failures Yes, Mostly Due to Execution
Many Enduring Relationships
Came for price – Stayed for Quality & Innovation
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2011 Wipro Ltd - Confidential
© 2010
Agenda
1 Why Outsource?
2 What to Outsource?
3 Typical Outsourcing Challenges
4 Some Offshoring Best Practices
5 India – The Destination of Choice
6 Questions?
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2011 Wipro Ltd - Confidential
© 2010
Why Outsource?
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2011 Wipro Ltd - Confidential
© 2010
Why Outsource?
Get Experts To Do It Faster, Better &
Cheaper
Free Up Capital & Make The Costs Variable
Leverage A Rich Talent Pool On Demand
Free Leadership Bandwidth From Non –
Core Functions
Access To Best Practices Across Industries
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2011 Wipro Ltd - Confidential
© 2010
What to Outsource?
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2011 Wipro Ltd - Confidential
© 2010
What To Outsource?
Infrastructure
Services
Application Services
Product Development
• Custom Application
Development
• Embedded Solutions
• Technology refresh
• Hardware Design
• Help desk support
• Application
Management
• SW Products
• Server management
• Human Resource
• Package
Implementation
• Technical
Documentation
• Procurement
• Testing
• Order Management
• Web Enablement
• Industry-specific
Processes e.g.
Mortgage, Capital
Market Back office
• Mobility Solutions
Business Processes
• Customer Service
• Technical Helpdesk
• Finance &
Accounting
• MRO
• Marketing
• Content
Management
• Legal
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2011 Wipro Ltd - Confidential
© 2010
• Consolidation
• Hosting Services
Evolution of Outsourcing
Business Benefits and Transformation
Business Value Delivered
• Focus on outcome – reducing day sales outstanding,
maximizing rebates, managing cash flow, better inventory
management, improve up and cross selling etc.
• Flex the outcome to align to the changing business climate
• Adding value, not just
saving costs
• Transformational gains
• Business insights
• Making the costs variable
Productivity Improvement
• Operational excellence and exceeding
customer metrics
• Domain skills
• Process knowledge
• Efficiency gains
• Quality and repeatability
• Knowledge capture and
management
Standardization
• Savings through labor arbitrage
and standardization
• Capturing and standardizing
operations procedures
Source: IBEF
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2002-2005
• Process standardization
• Labor cost savings
2005-2009
2011 Wipro Ltd - Confidential
© 2010
2010 and Beyond
Timelines
Typical Outsourcing Challenges
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2011 Wipro Ltd - Confidential
© 2010
Key Outsourcing Challenges
Time zone Issues
Cultural Differences
Perceived Loss of Control
Governance Time & Costs
Vendor Viability
Data Security
Linguistic Problems
Knowledge Transfer
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2011 Wipro Ltd - Confidential
© 2010
Outsourcing – Some Best Practices
Align Outsourcing with Business Strategy
Create an Empowered Program Office
Build a Roadmap - Start with Low Risk High Savings Ones
Educate and Enroll Internal Stake holders
Give Emphasis to Culture and Chemistry Between Teams
Think Win-Win – Think Long Term
Do Your Home Work – Workshops, Visits, Risk Assessment
Invest in Building Trust and Relationships
Look For Directional Control – Not Operational
A Proven Idea That Has Benefited Many Before
Embrace It!
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2011 Wipro Ltd - Confidential
© 2010
India – The Destination of Choice
Competitive Pricing
Continuous Innovation to Deliver Value
Excellent skills in Program/Project / Expectation
Management
Advantage
India
Good Corporate Governance and IP Regime
Maturity in Process Quality
Leadership in Global Delivery
Top Quality, Large and Growing Talent Pool
Ranked # 1 Since Inception in AT Kearney Global Services Location Index
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2011 Wipro Ltd - Confidential
© 2010
TM
India: Highly-skilled Manpower
India has:
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Over 3 million scientific & technical manpower
Over 0.6 million S&T post graduates
Over 0.7 million graduate engineers
Over 3500 doctorates in sciences every year
Over 380 universities (11200 colleges)
Over 1500 research institutions
Over 200,000 engineering graduates
Over 300,000 post graduates from non-engineering colleges
Over 2,100,000 other graduates
Over 9,000 PhDs
Excellent Knowledge workers in software industry increased from
56,000 in 1990-91 to 650,000 in 2003;
Due to its young demographic profile, India would continue to be surplus in working population for a
longtime
After US, India has the largest pool of English speaking scientific manpower
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2011 Wipro Ltd - Confidential
© 2010
In Summary - A Personal Retrospective
Outsourcing Works!
Choose The Basket Of Services That Suits You The
Best
Keep Pushing The Boundaries
There Are Challenges, But Clear Mitigating Plans
As Well
India Continues To Be The Best Destination!
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2011 Wipro Ltd - Confidential
© 2010
Thank You
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2011 Wipro Ltd - Confidential
© 2010