Amity 6 International Business Staistics

8/2/2019 Amity 6 International Business Staistics

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International business

global outsourcingGlobal offshore outsourcing

Unit IV, Part-1

9.3.12


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Assignment to the students who have got placements

(Not more than 3 pages or 5 slides).

[email protected]

Roll

No.

Topic Date of

submission

1 15 Outsourcing into PhilippinesA SWOT analysis versus India 23rd March 2012

2 9 Outsourcing into ChinaA SWOT analysis versus India 23rd March 2012

3 19 Outsourcing into Bangladesh A SWOT analysis versus India 23rd March 2012

5 23 Outsourcing into Pakistan A SWOT analysis versus India 23rd March 2012

6 21 Outsourcing to IndonesiaA SWOT analysis Versus India 23rd March 2012

7 4 Outsourcing to MalaysiaA SWOT analysis Versus India. 23rd March 2012

8 1 Global competitive index of China on key parameters. that

have edge over India

23rd March 2012

9 29 Global competitive index of Philippines on key parameters.

that have edge over India

23rd March 2012

10 34 Global competitive index of Germany on on key parameters.

that have edge over India

23rd March 2012


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Assignment to the students who have got placements

(Not more than 3 pages or 5 slides)

[email protected]

Roll

number

Topic Submission

date

11 43 Global competitive index of USA on key parameters. that have edge over India 23rd March 2012

12 55 Global competitive index of UK on key parameters. that have edge over India 23rd March 2012

13 6 Global competitive index of France on key parameters. that have edge over

India

23rd March 2012

14 17 Global competitive index of Pakistan on key parameters. that have edge over

India

23rd March 2012

15 28 Large size IT/BPO companies are focusing on mergers/acquisitions,/ JVs to get

growth behind emerging verticals .Please conclude with examples.

23rd March 2012

16 13 SMBs will benefit by using services like cloud computing as it is cost effective.

Please conclude with examples.

23rd March 2012

17 39 To be competitive in the BPO sector , companies are shifting in establishing rural

BPOs due to high real estates and other operating cost in big cities. Please

conclude with examples.

23rd March 2012

18 37 Mahinda Satyam has successfully established its image after acquisition by

Mahinda s by working on certain strategies and now progressing on the road of

growth. Please conclude with examples.

23rd March 2012

19 54 A SWOT analysis of Infosys . 23rd march 2012


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Rollno Topic Date of

submission

41 Global competitive index of vietnam on key parameters. thathave edge over India

23 March2012

46 Global competitive index of malayasia on key parameters. thathave edge over India

23 March2012

56 Global competitive index of singapore on key parameters. thathave edge over India

23 March2012

25 Does new IT technology namely cloud computing helpingcompanies to reduce costs and be competitive at market place

.How it works in reducing costs?

23 March2012

51 Unfazed by slowdown, UTC makes a bold play in India .Plan togrow through acquisitions and green field expansion. What are

their outsourcing initiatives?

23 March2012

22 Present research findings by company namely Gartner on globalIT spending

23 March2012


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Indias BPO and It services

outsourcing expereienceModule IV - Course topics

1 Outsourcing into IndiaA

SWOT analysis

9.3.12

SWOT analysis.

IT/BPO industry India -overview.

Outlook -2012.

2 India as a preferred destination

Size ,statistics andexperiences of the Indian BPO

and IT service providers.


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SWOT ANALYSIS


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SWOT Analysis

Outsourcing SWOT Analysis to India

Everyday your business is faced with new

opportunities and challenges.


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SWOT Analysis

SWOT Analysis (Strengths, Weaknesses,

Opportunities, Threats) is a powerful

technique to throw light on your business

possibilities.

It helps you chisel out your strategies in a

more streamlined manner and create a niche

in the market.


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SWOT Analysis

Strengths: (Customer, Company, Competition, Cost advantage )

What do people in your market see as your strengths?

What advantages does your company have?

What do you do better than your competitors?What unique or lowest-cost resources do you have access to?

Look at your strengths in the context of the competition.

Example:

If you are comparing your product with a competitor who hasa large share of the market, your own large share of the

market is not a strength but a necessity.


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SWOT Analysis

Weaknesses -internal & external (What to avoid, what to

improve based on customer feedback)

What should you avoid?

What could you improve?

What are people in your market likely to see as weaknesses?.

You might need to get into your customers' or competitors'

shoes to check if there are weaknesses that they perceivebut you overlooked.

It is more an internal versus an external view.


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SWOT Analysis

Opportunities (what to leverage ,promising trends).

Where are the good opportunities your company could leverage?

What are the interesting and promising trends you are aware of?

Opportunities could come your way through:

Changes in the technology you use

Changes in the market

Changes in government policies that are relevant to your business

Changes in your target audience such as lifestyle

Events in your industry You can discover new opportunities by analyzing your strengths. You

could also look at your weaknesses and think about the potential

opportunities opening up if you eliminate your weaknesses.


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SWOT Analysis

Threats: (obstacles ,competitors move, changes, cash flow

issues,)

What obstacles do you face?

What is your competition doing?

Is changing technology threatening your position?

Do you have bad debt or cash-flow problems?

Could any of your weaknesses seriously threaten your business?

Are the required specifications for your job, products or services

changing? Such analysis will often throw light on the future course of action, both in

terms ofputting problems into perspective and pointing out what needs

to be done.


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SWOT Analysis

Strengths and Weaknesses are internal and

Opportunities and Threats relate to external

factors.


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OUTSOURCING INDUSTRYOVERVIEW


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Industry overview (Source NASSCOM)

Steadily growing industry.150m in 1991-92 to $5.7 b in 1999-2000 to

$17.2bn in 2004-05. 2005-06 $ 23.49 b (35.5 percent growth in exports) ,

$ 88 b in 2011.

Annual growth rate of software exports over 15%.

Software exports to over 100 countries .

More than 45% of global fortune 500 companies outsource requirements

to India.

It adds over 6 percent to India's GDP from 05-06 level of 4.1 percent.

Market openings for Indian IT industry:

IT services.

Sofrwere products.

IT enables services.

E-business.


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Overview of outsourcing industry

in India The ITES sector -India has enjoyed its dominant position in the

global BPO segment. India has flourished over the past

decade due to its:

low cost but qualified workforce,

Indians fluency in the English language,

Governmental support. ( offer subsidies and tax relief

benefits to the ITES industry).

Stable legislative.

Economic framework,


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in India

Other advantages:

What more, the 12 hour time zone difference

with the primary originator of most BPO jobs,

the United States, is an added bonus, as day

and night shifts can be carried on as routine.


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in IndiaChallenges:

The real estate and infrastructure costs.

skyrocketing of construction costs in the main cities.

This escalating cost has been resulting inunsustainable going forward.

Cheaper services by other countries:

The expanding outsourcing operations and cheaperservices by countries like China, Mexico and Vietnam.


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IT/BPO INDUSTRY OUTLOOK FOR2012


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IT/BPO industry outlook for 2012

OPPORTUNITIES:

Over the years, the Indian IT-BPO industry has

matured from offering non-core activities.

However, there is a huge global market that is yetuntapped.


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Opportunity (evidence):

India (domestic + exports) accounted for

approximately 5% of worldwide technology

products and services related spend of USD

1.5 trillion in 2009.


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OPPORTUNITIES:

This underlines the immense growth

opportunities for the industry players to

create innovative service models and broaden

its geographical reach.


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Opportunities: Revenue from emerging segments by

offering cost-effective delivery options :

In the future, the industry is expected to generate an

increasing share of revenues from the emergingsegments such as SMB, engineering and

infrastructure management by offering cost-

effective delivery options such as pay-per-use and

outcome based pricing models.


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Following is the Indian IT-BPO industry

outlook for 2012 from Dun & Bradstreet:


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Consolidation activity is likely to

pick up

The Indian IT-BPO industry is expected to adopt the

inorganic growth route in order to widen their

service offerings and enter new geographicalmarkets.

Several third party and captive BPO units are likely to

increasingly acquire small size companies to ramp up

revenue, acquire clients, and expand business

segments and geographical reach.


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Consolidation activity is likely to

pick up Consolidation will also be driven by international M&A deals,

propelled by robustness of the Indian players.

Examples:

The Indian IT-BPO industry has been seeing a spurt in

consolidation in recent times, with deals such as Sutherland

Global Services acquisition of Adventity Global services,

Hinduja Global Solutions acquisition of a UK based customer

relationship management company, Careline Services, and

this trend is expected to continue in the near future.


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Cloud computing will be the next big wave for Indian

IT-BPO industry

Cloud computing is expected to reshape the

Indian IT market by generating new

opportunities for the IT vendors and driving

changes in traditional IT offerings.


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Cloud computing will be the next big wave for

Indian IT-BPO industry

This service offers immense opportunity to penetrate the SMB

sector and offer innovative solutions by providing them an

equivalent IT infrastructure, which they could otherwise not

be able to afford.

Examples:

Several big high-tech companies such as Microsoft are now

adopting the cloud computing technology to widen their

market share.

TCS has also launched various models within cloud computingservices targeting the large number of SMB`s in India.


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Remote Infrastructure Management Services (RIMS) is

set to emerge as a promising opportunity

RIMS is touted to be a big market for Indian IT

companies in the near future.

The IMS segment is progressively moving

towards a remote delivery model where

services are delivered by vendors and captives

from low-cost locations.


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Remote Infrastructure Management Services (RIMS) is

set to emerge as a promising opportunity

As per the comprehensive study conducted by NASSCOM and

McKinsey, the global RIMS market is estimated to be USD 96-

104 billion, out of which nearly 70-75% of the infrastructure

management roles can be offshored.

Given its strength in offshore delivery of services, India is wellpositioned to capture a substantial share of this RIMS

opportunity.


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What is RIMS?

Remote Infrastructure Management (RIM) refers to remotely managing

information technology (IT) infrastructure such as workstations (desktops,

laptops, notebooks, etc), servers, network devices, storage devices, IT

security devices, etc of a company.

Major sub-services included in RIM are:

Service desk / Help desk

Proactive monitoring of server and network devices

Workstation Management

Server Management

Storage management

Application support

IT security Management


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Small and Medium Business`s (SMB) are expected to

emerge as a significant market

Indian SMB`s have realised the long-term

benefits of IT implementation in terms of

increased productivity and are increasingly

adopting IT solutions.

Evidence:

During 2009, expenditure on IT by SMB

segment was about 30% of the total IT spendsvalued at over Rs. 300 billion.


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Small and Medium Business`s (SMB) are expected to

emerge as a significant market

IT vendors have identified SMBs as the growth driver of the

future and are taking steps to address them more effectively.

They are offering tailored-made easy to implement IT

solutions and delivery models to SMB`s.

Examples:

For instance, Microsoft has started to offer its ERP application

to SMBs through the SaaS model.

Wipro has also collaborated with Microsoft to deliver ERP

software through SaaS model for an auto parts supplier.


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Increased government IT spending will spur growth in

the domestic market

Focus on domestic market:

Service providers are also expected to sharpen

their focus on the domestic market to tap the

imminent growth opportunities offered by the

booming Indian economy.


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Increased government IT spending will spur

growth in the domestic market

The rapid growth in the domestic market is

likely to be driven by major government

initiatives such as:

increased spending on e-Governance.

increased thrust on technology adoption/up-

gradation across various government

departments to bridge the gap of digitaldivide.


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Increased government IT spending will spur

growth in the domestic market

The GoI has enacted a national e-Governance

Plan (NeGP) which creates a big opportunity

for the IT vendors to create an effective

partnership.

It has separately allocated USD9 billion for

investment in NeGP projects till FY14.


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Shift in focus from BFSI vertical to

other emerging verticals

(Banking, Financial Services and Insurance (also

known as BFSI)The BFSI vertical has been the mainstay of the Indian

IT-BPO industry. However, it was one of the worst hit segments due to

the impact of global financial crisis.

In 2009, the BFSI sector observed a decline ofaround 5% after witnessing a below average growth

rate of 3.6% in 2008.


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Shift in focus from BFSI vertical to

other emerging verticals

Consequently, IT vendors, in order to de-risk

their business model, have increased their

focus on other verticals such as government,

healthcare, retail and utilities.

In the last few years, these sectors have

shown signs of increasing IT expenditure.

Growth in these emerging verticals isexpected to be substantially faster than the

core verticals.


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Diversifying from core geographic

markets

Threats:

Indian IT-BPO companies are expected to

diversify their business from core markets

such as the US and UK as these markets were

adversely affected by the global financial crisis

leading to a decline in their overall IT spends.

f f h


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markets

Threats:

Over the last couple of years, India`s export

share to the US has declined sharply from

around 68% in FY04 to 61% in FY10.

i if i f hi


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markets

Over coming Threats:

On the other hand, the Indian IT companies have

begun to explore opportunities offered by other

growing markets such as Mexico, Ireland,Netherlands, Philippines and Brazil. Though these

flourishing markets are presently small, they are

expected to the drive growth in future.

In addition, by concentrating on these markets,

businesses can diversify their risks across regions.


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Ceasing of tax benefits for STPI (Software Technology

Parks of India) impacts small players

Threats:

STPI have played a vital role in fostering

growth of the Indian IT-BPO industry.

The uncertainty ruling over continuation of tax

holiday after Mar 2011 could slow down

future expansion proposals.


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Ceasing of tax benefits for STPI (Software Technology

Parks of India) impacts small players

Threats: (Expiry of Tax holidays, global recession

and lack of financial resources)

Large companies would be able to alleviate the tax

burden arising from the expiry of tax holiday bymoving into SEZs.

However, small companies, which form the bulk of

the companies registered with STPI, will find it hard

to survive, as they are still struggling post-global

recession and do not have the financial resources to

face this challenge.

R l BPO ill k h i


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Rural BPOs will make their

presence felt

Indian BPO companies are slowly moving

towards rural areas to set up delivery centres

due to rising attrition rates in urban areas andlower cost of operations in rural areas - which

is also supported by growing real estate

construction in rural area.

R l BPO ill k h i


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presence felt

Evidence:

As per NASSCOM, as on Feb 2010, about 35

rural BPO centres employed more than 5,000

people across the country

R l BPO ill k th i


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presence felt

Rural BPO`s are also gradually moving up the

value chain in terms of service offerings from

basic data management tasks to content

creation and validation.

Evidence:

2011 could well be the year in which rural BPO

operations come of age.

Source: myiris


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Course topicsunit IV

1 Statistics -Global ,China and India

2 Outsourcing History of India3 Global competitiveness Index on key

parameters


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THE LATEST STATISTICS ON THE GLOBALOFFSHORE OUTSOURCING MARKET.


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INDIAN IT-BPO INDUSTRY

I di IT BPO I d t


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Indian IT-BPO Industry

Revenue:

IT-BPO sector in India aggregated revenues of USD 88.1 billion

in FY2011.

Employment:

generating direct employment for over 2.5 million people.

Core themes identified for the next decade

Diversification,

Transformation, Innovation

Inclusion.

I di IT BPO I d t


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The industry focused on:

Emerging verticals,

Markets and customer segments,

Driving innovation-led transformation in client

organizations

Transforming its internal operations.

I di IT BPO I d t


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Growth drivers: The domestic IT-BPO marketwitnessed:

The Indian consumers going up the IT maturity

curve, Return of economic growth,

Efforts by organizations and the government to

increase technology adoption, emergence of new delivery platforms thus driving

growth.


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Key Highlights during FY2011

Revenue:

The IT-BPO sector in India is estimated to

aggregate revenues of USD 88.1 billion in

FY2011.

IT software and services sector (excluding

hardware) accounting for USD 76.1 billion of

revenues.



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Employment: During FY 2011

Direct employment is expected to reach

nearly 2.5 million, an addition of 240,000

employees.

Indirect job creation is estimated at 8.3

million.



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As a proportion of national GDP: 12 years

The sector revenues have grown from 1.2 per

cent in FY1998 to an estimated 6.4 per cent in

FY 2011.



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The share of IT-BPO industry in the total Indian

exports (merchandise plus services):

Increased from less than 4 per cent in FY1998

to 26 per cent in FY2011.



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Exports ,Domestic and total revenue:

Export revenues (including Hardware)

estimated to reach USD 59.4 billion in FY2011;

Domestic revenues (including Hardware) of

about USD 28.8 billion;

Total industry estimated to reach USD 88.1

billion



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Software and services revenues (excluding

Hardware), comprising over 86 per cent of the

total industry revenues, expected to post USD

76.1 billion in FY2011; Estimated growth of about 19.1 per cent over

FY2010

Forecast


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Forecast

Forecast :

The upbeat domestic IT-BPO spending trend

will continue in FY2012 as the industry is

expected to grow at 16 per cent to reach USD20 billion.

IT spending expected to significantly increase


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Forecast

Forecast of major spenders:

in verticals like automotive and healthcare

while the government, with its focus on e-

governance, will continue to be a majorspender.

Documents

Amity 6 International Business Staistics