1. BPO: Business Process Outsourcing Leanna Dertinger, Jana Earnshaw, Mitsuru Kajio, Jesse McShane & Simon Seid

2. Terminology Outsourcing Offshoring BPO ITO Fragmentation

3. History of BPO World War II –Increased international trade 1960s – 1980s –Importing turns to outsourcing 1990s – Present –Services now outsourced –BPO begins

4. HP Goes The Distance For P&G Corporate Culture & Brand Finance and Accounting Bangalore & Mumbai, India Global Customers w/ Local Support Core Competencies cut Defects

5. Global Accounts Payable Processing

6. BPO Advantages Productivity Improvements Cost Savings Improved HR Focus on Core Business Competency Increased Capability

7. Benefits

8. BPO Disadvantages Recent Studies Knowledge Disappears and is Transferred to the Outsourcing Partner Poor Quality Control Restoring Operations is Complicated Lack of Loyal Employees Reduction in Strategic Alignment

9. Video

10. Why BPO in India? Language Education Quality - Communication - No pirated products If Chinese Government Policy changes, what will happen? - Turning point will be by 2010

11. Comparison: India versus China India Educational System Cost Advantage Time/Distance Advantage English proficiency Government Support Quality Labor Pool China Educational System Cost Advantage Time/Distance Advantage Close to Japan

12. Matching Process to Market India Development of software Call center –IBM China Manufacturing of components Japanese IT Companies

13. Source: BusinessWeek, The Future of Outsourcing

14. Hot Players in Outsourcing Business ServicesSoftware DevelopmentCall Centers 1. Hewitt Associates (U.S.)1. Tata Consultancy Services (India)1. Convergys (U.S.) 2. ACS (U.S.)2. Infosys Technology (India)2. Wipro (India) 3. Accenture (U.S.)3. Wipro (India)3. ICICI One Source (India) 4. IBM (U.S.)4. Accenture (U.S.)4. ClientLogic (U.S.) 5. EDS (U.S.)5. IBM (U.S.)5. 24/7 Customer (India) 6. Hewlett-Packard (U.S.)6. Cognizant Techonology Solutions (U.S.)6. SR.Teleperformance (France) 7. Wipro (India)7. Satyam (India)7.e Telecare International (U.S.) 8. HCL Technologies (India)8.Patni Computer Systems (India)8. SITEL (U.S.) 9. Tata Consultancy Services (India)9. EDS (U.S.)9. Teletech (U.S.) 10. WNS Global Services (India)10. CSC (U.S.)10. CustomerCorp. (U.S.) Source: BusinessWeek, The Future of Outsourcing

15. 5 Managerial Steps That Pay Off 1.Go Offshore for the right reasons Shifting a broken process overseas may not fix it 2.Choose your model carefully Could cost more…..(I’ll fix this part) 3.Get your people on board Employees and middle managers can make the bold move happen….or stop you in your tracks

16. 5 Managerial Steps That Pay Off 4.Be prepared to invest time and effort Often what is lacking in offshore partners is a lot of deep process knowledge 5.Treat your partners as equals Telling your partners exactly what to do and how to do it is not conducive to the entire process

17. Examples Penske and India’s Genpact Eli Lilly

18. Sources Gibson, Stan. “HP Goes DistanceFor P&G,” eWeek, 3/20/2006, Vol. 23 Issue 12, p49-52, 3p. “A world of work,” The Economist, November 13, 2004, pp. 6-7. Booton, Bob (2005). Outsourcing in a box. San Jose, CA: Bidness Books Publishing. Engardio, Pete, "The Future of Outsourcing," Business Week, January 30,2006. pp. 50-58. Kripalani, Manjeet, "Five offshore practices that pay off," Business Week, January 30, 2006. pp. 60-61. http://economictimes.indiatimes.com/articleshow/1468167.cms http://www.behtimes.com/article/123/7/ http://us.rediff.com/money/2004/jan/08bpo.htm http://globalconnect.ucsd.edu/taipei/documents/Inter- RegionalPartnershipsAnIndiaPerspective.pdf http://www.cyfuture.com/business-process-outsourcing.htm http://www.bpoindia.org/ http://www.xicom.biz/research.html http://www.networkworld.com/news/2004/0407updatibm.html http://encarta.msn.com/encyclopedia_701702628/Outsourcing.html