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FutureutureOutsourcingutsourcing

Group2,HimanshuRavi TejaRuchiAishwaryan

Shilpa Susan Philip

Ravi Teja

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Contents

Assumption

Issue Under Focus

Trend

Why India

Why not Philippines-Business Portfolio Matrix

Strategies to avoid Pitfalls

Benefits for the Firm

Conclusion

Reference

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Assumption

The firm is well established one in US Already outsourcing to India with good

success rate.

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Issue Under Focus

Whether to Outsource to Philippines or tostay in India

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Trends

- ( )Statistics referenced from AIB SE USA 2010 Annual Meeting report

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hy Not Indiahy Not India

: :// . . / / - - - .Source http www bizbrim com outsourcing business process outsourcing philippines

http://www.bizbrim.com/outsourcing/business-process-outsourcing-philippines.htmhttp://www.bizbrim.com/outsourcing/business-process-outsourcing-philippines.htmhttp://www.bizbrim.com/outsourcing/business-process-outsourcing-philippines.htmhttp://www.bizbrim.com/outsourcing/business-process-outsourcing-philippines.htm

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Business Portfolio Matrix- a tool forinternational marketing

identification.

igh

edium

ow

ountry Attractivenessigh edium owompan

compatibilit

wihea

hcountryPrimary Opportunity Secondary Opportunity Tertiary Opportunity

: ( )Source Harrell and Keifer 1993Refer footnotes forexplanation

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Types of Opportunities

Primary opportunity These markets indicate the bestopportunities for long-term strategicdevelopment.Firms should consider establishing

permanent presence after thorough research.

Secondaryopportunity

Theseare the markets where opportunitiesare identified but with high perceived risks(political or financial) to making it less

favorable to make long-term irrevocablecommitment.Firms should consider these markets withcaution and need to set up comprehensivemarketing information before making a

decision.

Tertiary opportunity Theseare the catch-what-you-can markets.These are high perceived risk markets.Firms are only willing to allocate minimumresources.Limited marketing research is conducted.

, , -Doole and Lowe 2008 pg 111 112

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Hofstedes cultural Analysis

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Possible Pitfalls

Suitable pricing model

IP rights issues

Data security

Dispute resolution & indemnification

Consent for further subcontracting

Exit strategy for contract

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StrategyFor

Avoiding Pitfalls

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Strategy

.

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Contd.

.

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Source: http://www.cyborlink.com/besite/china.htm

Benefits for US firmBenefits for US firm

http://www.cyborlink.com/besite/china.htmhttp://www.cyborlink.com/besite/china.htmhttp://www.cyborlink.com/besite/china.htm

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Conclusion

While India is currently the Epicenter for global Outsourcing,Philippines is not far away in the race being now at the third

position

With High investment of Philippines government inInfrastructure, is turning Philippines into a more desirablecompetitive location for investors.

Currently Philippines is in a Golden Age as it relates toOutsourcing growth, hence its the right time for the firm todiversify into Philippines..

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Reference

Zhandg,Betty,(October 22, 2003),Using Outsourcing toIndia in Future, Published in Window to India

Bunn,Ted(Feb 22, 2008),Outsourcing to Philipines,

Published in Window to India

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THANKTHANK

YOUYOU

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