© 2010 Wipro Ltd - Confidential 1 © 2011 Wipro Ltd - Confidential Outsourcing - Advantage India.

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© 2010 Wipro Ltd - Confidential 1 © 2011 Wipro Ltd - Confidential Outsourcing - Advantage India

Transcript of © 2010 Wipro Ltd - Confidential 1 © 2011 Wipro Ltd - Confidential Outsourcing - Advantage India.

Page 2: © 2010 Wipro Ltd - Confidential 1 © 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

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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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Why Outsource?

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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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© 2010 Wipro Ltd - Confidential66 © 2011 Wipro Ltd - Confidential

What to Outsource?

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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

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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

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Typical Outsourcing Challenges

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Key Outsourcing Challenges

Time zone Issues

Cultural Differences

Linguistic Problems

Data Security

Knowledge Transfer

Perceived Loss of Control

Vendor Viability

Governance Time & Costs

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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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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

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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

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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!