OUTSOURCING PLANNING

Group Members Sumeet Rao 39 Aastha Salaskar 59 Krunal Madia 58 Dhanashree Kalamkar 18 Ritesh Karunakar 19

What is Outsourcing? Involving the contracting out of a business function to an external provider. "I view outsourcing as part of the transformation strategy" --Pat Wallington Xerox.

Why Outsourcing Cost Savings Focus on Core Competencies Operational expertise Staffing issues - Cheap Labour Specialized services Reduce time to Market Time zone Enhance Risk Management Better Quality products Competitive Edge Customer Satisfaction Faster Deliverables Lower infrastructure investments

5 W’s of Outsourcing Why Who When What Where

Steps for Outsourcing  Know Thyself First  Request for proposals  Examine the Service Provider  Choosing a partner  Finalizing the contract  SLA – Service Level Agreement : - Quality definitions, Time frames, Other terms and conditions

Selection of the Vendor Things to be verified by the company before selection People Management Recruitment Process Training & Development Performance Appraisals Average salary per level Succession Planning Attrition rate Absenteeism rate Staff Average age Qualification Gender ratio Pricing Model Infrastructure Physical environment of servers Storage space of physical papers if any

Selection of the Vendor Financial Stability Transition Management Reference Checks with other Clients/Partners Cultural Compatibility Governance Model Confidentiality Agreement Security of data User matrix for secured data Audit Compliances ISO / ISMS certification of the company Platform Strategy Software - expertise for new software IT support for new software

Recruitment Process Outsourcing

Selection Criterion Larger staff of recruiters Databases of candidate resumes Investment in recruitment tools and networks Security of data Level of recruiters handling the positions

Activities Performed CV / Resume Screening Assessment / Skill Testing Background Verification Reference Checks

Benefits of RPO Cost effectiveness Service & Speed High quality specialists Transaction based Payments Reduced storage costs

Case Study

Right Tracks to Infosys Managing a 49,000-mile long railway track, with over 36,000 employees spread across 28 states, can be a challenging task. Right Tracks is one of the largest railway companies in the US, plays a vital role in connecting a large number of individuals and businesses through this vast network for the last 150 years. A few years ago, the company decided to leverage outsourcing to manage the complexities of its business in a cost-effective way. It wanted to transform its business model to create the best-in- class infrastructure, combining the latest technology with efficient business processes.

Reasons for Outsourcing Passive in Operations Government managed Lack of Revenue Mgmt. Conservative Business IT backwardness Process Optimization

Why was Infosys Selected? Reputed name Proven Delivery record Process capability Maturity Global Delivery Models / Standards Whom to Outsource? Track record References Clients Financial Stability Cultural Compatibility Post development Support Infrastructure Technical Expertise ISO Certification

Project execution Pilot Testing Track Measurement System Inventory Mgmt. / Repair Information Finance & Revenue Management HR Process & Payroll Project Monitoring / feedback

Post Rollout Automation of Business Applications Savings of $ in Operational expenses Overall $20 Million in savings Reduction in expenses Performance Optimization

Negatives of Outsourcing LOCAL Lack of Control Loss of Confidentially Management challenges Security risks Legal concerns Knowledge transfer challenges Additional Inventories GLOBAL Political and economic Stability Language and cultural Barriers Infrastructure Development Social and Labor issues Time zone challenges