© 2010 Wipro Ltd - Confidential 1 © 2011 Wipro Ltd - Confidential Outsourcing - Advantage India.
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Transcript of © 2010 Wipro Ltd - Confidential 1 © 2011 Wipro Ltd - Confidential Outsourcing - Advantage India.
© 2010 Wipro Ltd - Confidential1 © 2011 Wipro Ltd - Confidential
Outsourcing - Advantage India
© 2010 Wipro Ltd - Confidential22 © 2011 Wipro Ltd - Confidential
Outsourcing - A Personal Retrospective
Mostly A Win – Win Scenario
Over 80% Success RateContinuous Pushing of BoundariesFailures Yes,
Mostly Due to Execution
Many Enduring Relationships
Flowing With A Successful Idea!
Came for price – Stayed for Quality & Innovation
© 2010 Wipro Ltd - Confidential33 © 2011 Wipro Ltd - Confidential
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?
© 2010 Wipro Ltd - Confidential44 © 2011 Wipro Ltd - Confidential
Why Outsource?
© 2010 Wipro Ltd - Confidential55 © 2011 Wipro Ltd - Confidential
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
© 2010 Wipro Ltd - Confidential66 © 2011 Wipro Ltd - Confidential
What to Outsource?
© 2010 Wipro Ltd - Confidential77 © 2011 Wipro Ltd - Confidential
What To Outsource?
• Customer Service
• Technical Helpdesk
• Finance & Accounting
• Human Resource
• Procurement
• Order Management
• Industry-specific Processes e.g. Mortgage, Capital Market Back office
• Marketing
• Content Management
• Legal
Business Processes
• Custom Application Development
• Application Management
• Package Implementation
• Testing
• Web Enablement
• Mobility Solutions
Application Services
• Embedded Solutions
• Hardware Design
• SW Products
• Technical Documentation
• MRO
Product Development
• Technology refresh
• Help desk support
• Server management
• Consolidation
• Hosting Services
Infrastructure Services
© 2010 Wipro Ltd - Confidential88 © 2011 Wipro Ltd - Confidential
Evolution of Outsourcing
Timelines2002-2005 2005-2009 2010 and Beyond
• 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
Business Benefits and Transformation
• Process standardization
• Labor cost savings
• Efficiency gains• Quality and
repeatability• Knowledge capture
and management
Bu
sin
ess V
alu
e
Delivere
d
• 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
Standardization• Savings through labor
arbitrage and standardization
• Capturing and standardizing operations procedures
Source: IBEF
© 2010 Wipro Ltd - Confidential99 © 2011 Wipro Ltd - Confidential
Typical Outsourcing Challenges
© 2010 Wipro Ltd - Confidential1010 © 2011 Wipro Ltd - Confidential
Key Outsourcing Challenges
Time zone Issues
Cultural Differences
Linguistic Problems
Data Security
Knowledge Transfer
Perceived Loss of Control
Vendor Viability
Governance Time & Costs
© 2010 Wipro Ltd - Confidential1111 © 2011 Wipro Ltd - Confidential
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!
© 2010 Wipro Ltd - Confidential1212 © 2011 Wipro Ltd - Confidential
Maturity in Process Quality
India – The Destination of Choice
Competitive Pricing
Continuous Innovation to Deliver Value
Excellent skills in Program/Project / Expectation Management
Good Corporate Governance and IP Regime
Leadership in Global Delivery
Top Quality, Large and Growing Talent Pool
Advantage India
Ranked # 1 Since Inception in AT Kearney Global Services Location
IndexTM
© 2010 Wipro Ltd - Confidential1313 © 2011 Wipro Ltd - Confidential
India: Highly-skilled Manpower
India has: 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
© 2010 Wipro Ltd - Confidential1414 © 2011 Wipro Ltd - Confidential
In Summary - A Personal Retrospective
Outsourcing Works!Choose The
Basket Of Services That Suits You The
BestKeep Pushing The Boundaries
There Are Challenges, But Clear Mitigating
Plans As WellIndia Continues To Be The Best Destination!
© 2010 Wipro Ltd - Confidential15 © 2011 Wipro Ltd - Confidential
Thank You