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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.htm8/9/2019 Outsourcing India vs Philipines
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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.htm8/9/2019 Outsourcing India vs Philipines
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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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