...The current scenario in the IT industry of India and the tremendous growth registered in recent years has generated much optimism about the future of the Indian Information technology industry. Analysts are upbeat about the huge potential of growth in the Information Technology industry in India. Exports - The IT industry accounts for a major share in the exports from India. This is expected to grow further in coming years. The information technology industry is one of the major sources of foreign currency or India FDI (Foreign Direct Investment) - High inflow of FDI in the IT sector is expected to continue in coming years. The inflow of huge volumes of FDI in the IT industry of India has not only boosted the industry but the entire Indian economy in recent years. IT sector is contributing about 8 per cent of the GDP. We crossed $ 100 billion mark. We are looking to cross 300 billion of IT and ITeS exports by 2020. Enterprise software market in India projected to grow 13% in 2012. According to Gartner, Inc. India’s enterprise software market is forecast to maintain its strong performance, with an estimated compound annual growth rate (CAGR) of 13.6 per cent from 2009 to 2016 – the third highest growth rate in the world. In 2012, India will be the fourth largest enterprise software market in Asia/Pacific. The country is forecast to account for 11 per cent of the region’s total revenue of $29.33 billion USD for Asia/Pacific this year, the equivalent to 1.15 per cent of the...
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...components provided by its own product divisions and by its competitors * Industry thinking at the same was that the future belonged to specialist technology companies that could bring new products to market quickly and change strategy in an instant * IBM was vertically integrated, they made everything from microprocessors, operating systems and finished computers and software – were thought to have no place in this new fragmented world of technology * Gerstner’s services-led strategy aimed to turn IBM into the integrator of choice for large corporations * The only growth at this time came from IBM global services, consulting and outsourcing units * Concern that Gerstner’s focus on making IBM a services business blinded him to important competitive shifts in which IBM lost out on * In 2002, Palmisano took over, asked to take his bonus and put it on a pool for top executives, eliminated the 92 year old IBM executive management committee * Favoured the idea of working with three new teams of people: covering operations, strategy and technology form throughout the company, bringing the best ideas to the table * His idea was to build a flatter organization with fewer bureaucratic levels, allocation 100 million to teach 30,000 managers to lead * His goal: to put IBM back at the forefront of technology * Known as e-business on demand, the initiative aimed to allow IBM to supply computing power as if it were water/electricity * The strategy...
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...OPERATIONS MANAGEMENT ROUNDTABLE Decision Support Memorandum June 2001 3PL Selection and Implementation GAINS FROM OUTSOURCING CONTENTS Overview of Current Practice STRATEGIC ALLIANCES (Page 2) Shortcoming of Current Practice FAILED PARTNERSHIPS (Page 4) Member Imperative PUTTING THE PIECES TOGETHER Companies gain more from outsourcing all supply chain functions 25 Average Annual Savings(%) 20 15 10 5 0 Inventory Management Freight Payments and Auditing All Supply Chain Functions Year 1 Years 2, 3 &4 (Page 5) Outsourcing logistics functions to 3PLs has been a source of competitive advantage for most companies. Most companies cite greater flexibility, operational efficiency, improved customer service levels, and a better focus on their core businesses as part of the advantages of engaging the services of 3PLs. SELECTING A 3PL PROVIDER (Page 7) Source: Journal of Business Logistics (January 1999) HANDLING THE INTEGRATION PROCESS (Page 9) Executive Summary MANAGING THE RELATIONSHIP (Page 11) Appendices DO YOU NEED TO CONSIDER PARTNERING WITH A 3PL? SOME PERFORMANCE METRICS FOR ASSESSING A 3PL(Pages 13) TEN STEPS TO OUTSOURCING SUCCESS PROFITABLE LIAISONS The Dilemma in Brief The advantages of streamlined and efficiently run supply chains compel many companies to outsource some or all of their logistics functions to third party logistics providers (3PLs). Making the switch to a 3PL presents some unique challenges to a company. The time...
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...quantitative insourcing/outsourcing analysis using the data provided. What qualitative issues might affect your final decision? Identify any costs or issues that are not part of your analysis that might affect your decision. What is your recommendation regarding what FlexCon should do with its family of pistons? Support your arguments with evidence gathered during your analysis. FlexCon is a company that prides itself on the quality of its pistons. Lately they have been relying on suppliers for major components while manufacturing simple items with relatively small differentiation. By doing this, too much of their talent is going to waste leaving them with a big decision of whether to keep outsourcing or to insource. They are already heavily dependent on suppliers for critical components. The cost it takes to insource is greater than the cost to outsource but deciding to outsource may jeopardize their quality. One critical issue that affects the decision to outsource is whether to jeopardize their quality. It was said that by cross-training employees and putting them in teams, there was a 30% increase in quality and 20% gain in productivity when making the pistons. Gaining quality and productivity are definitely reasons to continue insourcing. If they did decide to outsource it would leave room for developing new products or expanding an existing product. Stated in their 6 key trends that influence insourcing and outsourcing, “Firms are continuing...
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...MarketLine Industry Profile Global Data Processing & Outsourced Services June 2011 Reference Code: 0199-2312 Publication Date: June 2011 WWW.MARKETLINE.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Global - Data Processing & Outsourced Services © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0199 - 2312 - 2010 Page | 1 EXECUTIVE SUMMARY Market value The global data processing & outsourced services market grew by 3.2% in 2010 to reach a value of $601.1 billion. Market value forecast In 2015, the global data processing & outsourced services market is forecast to have a value of $854.5 billion, an increase of 42.2% since 2010. Category segmentation IT outsourcing (ITO) is the largest segment of the global data processing & outsourced services market, accounting for 48.6% of the market's total value. Geography segmentation Americas accounts for 44.2% of the global data processing & outsourced services market value. Market share IBM is the leading player in the global data processing & outsourced services market, generating a 3.7% share of the market's value. Market rivalry The market is fragmented despite the presence of large, international incumbents, who together account for 10.2% of global revenues. Global - Data Processing & Outsourced Services © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0199 - 2312 - 2010 Page | 2 TABLE OF CONTENTS Executive...
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...Abstract For the past four decades, outsourcing has provided organizations in running aspects of production and operations (Corbett, 2004). Designed to help build better businesses, stronger economies, and improve conditions in developing countries, outsourcing has become a popular business concept. The purpose for this paper is to review outsourcing as a viable business concept, identifying how outsourcing is used, benefits and setbacks, and options available for business support. The author will examine the concepts driving companies to use outsourcing as a worthwhile business strategy, utilizing several sources showing progression from initial conception to present day use. With today’s rapidly changing environment, one must question how outsourcing will adapt, allowing for continued success. Introduction In recent years, consumers have felt the impact of outsourcing on a personal level as they contact technical support for computers, satellite, and other services. While the ideas have been utilized for decades, outsourcing has become more common today as companies attempt to downsize without compromising success. The following will examine the concepts driving companies to use outsourcing as a worthwhile business strategy, utilizing several sources showing progression from initial conception to present day use. Outsourcing Overview Outsourcing involves transferring work or tasks to an external party, allowing for partnerships with other organizations (Power, Desouza...
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...The lesson we can derive from this case is that outsourcing is not just a wage difference between two places but skills and attitudes. Finally, there are a large number of US companies buying professional services from Asian countries. Clearly, skilled workers will be found and hired wherever they are. Countries, such as, India, Pakistan and China are good labor pools (Prahalad 2005.) It follows that multinational and global companies will find skilled labor overseas and start operations or buy services in foreign lands. Qua hay The influence of outsourcing should be recognized. Whirlpool, for instance, has a global network, supplies washing machines from Germany, and microwave ovens designed in Sweden that are and made in China while other appliances come from Brazil. Global companies develop first-rate centers of production and design in various countries. Countries that are abundant in human capital with a supplier base have a chance to become first-rate centers. Within this framework, designed to promote a global network, financing depends on corporate profits and funds owned by prospective partners. Du Pont, for instance, raises funds through joint ventures but retains corporate control by retaining at least 51% of the share. The importance of outsourcing and globalization is that some market imperfections are removed. When imperfections are removed, prices converge. This means that factor price differentials in...
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...historical development of outsourcing: the latest fad? Chris Lonsdale University of Birmingham, Birmingham, UK Andrew Cox University of Birmingham, Birmingham, UK Few management practices have attracted as much attention as outsourcing is enjoying at the present time. That firms should aggressively adopt the practice is almost becoming a given, and consultants' Abstract presentations talk of a ``revolution in Notes that outsourcing is just one outsourcing''. The academic literature on the of the means by which the subject has grown in kind. boundary of the firm can be What is often lost in the hype surrounding adjusted. Considers various other means such as conglomeration the concept, however, is that outsourcing is and horizontal and vertical just one way in which the boundary of the integration. Focuses on firm can be adjusted in response to changing outsourcing and its place in this economic pressures. Indeed, any history of bigger picture and discusses the history of outsourcing. Outlines the concept should recognise this, as the concerns for managers and gives recent trends in its favour have very much case examples from Rank Zerox been set in the context of a general movement and BP. towards more ``focused'' business strategies. This article investigating the development of outsourcing is in three main sections. First, it sets outsourcing in the wider context of the boundary of the firm issue. Second, it then proceeds to discuss the history of outsourcing, and its place in...
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...Chapter 4 “IT Infrastructure: Hardware and Software” Review Questions 1-5 1. What are the components of IT infrastructure? • Define information technology (IT) infrastructure and describe each of its components. IT infrastructure consists of the shared technology resources that provide the platform for the firm’s specific information system applications. Major IT infrastructure components include computer hardware, software, data management technology, networking and telecommunications technology, and technology services. 2. What are the major computer hardware, data storage, input, and output technologies used in business? * Computer Hardware: Mainframes, midrange computers, PC’s, workstations, and supercomputers. * Data Storage: Magnetic disk, optical disc, magnetic tape and storage networks. * Input devices: Keyboards, computer mice, touch screens (including those with multitouch), magnetic ink and optical character recognition devices, pen-based instruments, digital scanners, sensors, audio input devices, and radio-frequency identification devices. * Output devices: Display monitors, printers, and audio output devices. • List and describes the various type of computers available to businesses today. * Mainframes are a large-capacity, high-performance computer that can process large amounts of data very rapidly. * Midrange computers are servers computers are specifically optimized to support a computer network, enabling users to share files...
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...combination of capabilities. It’s not unlike the perfect storm, with an unlikely combination of variables arising concurrently. In business, key operational factors are converging to provide managers with a unique ability to drive competitive advantage through sourcing strategies. Significant shifts in labor, process, and technology are delivering standardization and scale that are dramatically improving transaction time, quality, and cost. In addition, many of the political and social factors that have stood in the way of re-engineering have been uprooted. There are too many successful sourcing stories to give credence to anti-outsourcing skepticism around making it work. Can somebody else deal with my customer and maintain my sense of urgency? Can we develop the right working relationship and economic model? Can we create fair and measurable targets? Yes, yes, and yes. While the strategic consideration of outsourcing is a must for everyone, outsourcing may not be. As you plan your sourcing strategy within the Accounts Receivable (AR) domain, there are a number of questions you should be prepared to explore. What to Outsource? A wide span of AR outsourcing services is available. Most of these fall into two categories: sub-processes (order management including credit risk and analysis, billing, invoice collection, cash application, exception management, bad debt collection, reconciliation, and reporting) and customer segments (Tier 1 versus Tier 2 customers). There is also...
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...increases degree of interdependence among the nations. According to Swedish author Thomas Larsson, “Globalization is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world” (Larsson, 2011) There is relationship between Globalization and economic growth. Globalization play important role in international trade. It brought entire world close to each other, which increase competition at international level. It helped to developed new technology, to increased productivity of industries and their workers, also raised workers wages and it lead to economic growth of every countries. (Haase, 2012) The major impact of globalization was reduction in trade barriers and countries open their economy for free trade. First, European and American people experience globalization which increased their per capita income. This was lead to inequality between developed nations and developing nation, because international trade benefited to developed nations and developing nations were not get any benefit from it. But, after 1980s, developing nations like china, India, also involved in the process of globalization and started manufacturing products. (Carbaugh,...
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...do business was less than what it made, defining a clear value in what Riordan provides. Riordan’s Sales and Marketing department has a clear value; $50 million is sales to show of it. But how do we show the value for other departments within the organization such as Information Systems (IS) and Information Technology (IT) solutions? While the IS and IT costs and what Riordan pays for it are clear from looking at the financials, the value is not. This brings us to the question of what value does Riordan Manufacturing get out of its IS services and IT department. This question is the problem that Riordan Manufacturing has had for many years. Recently, Riordan executive management hired a new Chief Information Officer (CIO) to improve its infrastructure and to answer this question. While management wants to use more IS and IT solutions throughout the organization, it has had trouble finding the perfect fit in all aspects of its operations. Even though IS and IT costs have risen, the puzzle pieces still have not come together; the value and benefit has not been clear to the company. As we will see throughout this review, it is time to focus and find the value that technology and information brings to the organization. It is time to find the efficiencies and savings that the company needs to clearly see the value. With Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), or Supply Chain Management (SCM) systems, there has got to be value in the way they are...
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...multimedia, and apps of all shapes and sizes and as well as better UI to make all that content accessible. Symbian has never been an OS for internet phones. The Symbian definition of a smart phone was a phone with PDA functions. The browser was always a second class citizen, a third-party component ␣ Opera by default in the early days (TechCrunch, 2010). And long before it was made open source, the platform had a well earned reputation for being hard to program but this was hugely beneficial to Symbian as a business in the early days. 80% of Symbian␣s revenues were earned through consulting for licenses (TechCrunch, 2010). Symbian␣s licensees each had their own proprietary telephony chipsets that needed to be integrated and their own customizations to the platform in mind. There was simply no incentive to provide an out of the box distribution, not until Android came along, enabling former Symbian licensees such as Motorola and Sony Ericsson to put together new phones in mere weeks not years (TechCrunch, 2010). As of 4th February 2010, the source code of Symbian 3 mobile OS will be offered as a free open source...
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...Development • Network Outsourcing Services • HR Outsourcing V. Popular destinations VI. Employment opportunities VII. Key players in the market a. Indian companies b. MNCs VIII. Global competition IX. Future/outlook I. Introduction: Late 90’s has opened a new chapter in Information Technology (IT) sector in India – Business Process Outsourcing (BPO), one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Cost conscious companies in the world to gain cost savings has set up their back office operations in India. The BPO segment, which was virtually non-existent till a few years ago, has risen to be a US $2 billion industry and IDC expects it to grow at a CAGR of 54 per cent till 2006 to reach US $12 billion. A major portion of the revenues today come from customer care and back office processing services, according to IDC’s report. II. What is BPO? BPO is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain their position in the marketplace. BPO is often divided into two categories: back office outsourcing which includes internal business functions such as billing or purchasing, and front office outsourcing which includes customer-related services such as marketing or tech support. Types of BPO: Generally outsourcing can be defined as - An...
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...07-079 Innovation through Global Collaboration: A New Source of Competitive Advantage Alan MacCormack* Theodore Forbath** Peter Brooks ** Patrick Kalaher** *Harvard Business School, Boston, MA **Wipro Technologies, Product Strategy and Architecture Practice, Boston, MA Copyright © 2007 by Alan MacCormack, Theodore Forbath, Peter Brooks, and Patrick Kalaher. Note: This is one of two papers reporting the results from this research. The other is “From Outsourcing to Global Collaboration: New Ways to Build Competitiveness,” HBS Working Paper 07-080. Working papers are distributed in draft form for purposes of comment and discussion. It may not be reproduced without permission of the copyright holders. Copies are available from the authors. Innovation through Global Collaboration: A New Source of Competitive Advantage Date: August 14th 2007 Alan MacCormack* Harvard Business School, Soldiers Field, Boston, MA 02163 Theodore Forbath, Peter Brooks, Patrick Kalaher Wipro Technologies 75 Federal Street, Boston, MA 02110 * Corresponding Author Abstract Many recent studies highlight the need to rethink the way we manage innovation. Traditional approaches, based on the assumption that the creation and pursuit of new ideas is best accomplished by a centralized and collocated R&D team, are rapidly becoming outdated. Instead, innovations are increasingly brought to the market by networks of firms, selected for their unique capabilities, and operating in a coordinated...
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