Definition: where a company or corporation will either buy products it intends to resell or hire another company to perform certain functions
Most Popular Outsourced Services
1. Transcription
2. Call Center
3. Engineering Services
Outsourcing in India
- Most attractive location in the world to locate global services, including IT.
- Although New Delhi is the capital of India and Mumbai its financial center, it is actually Bangalore that has become its most important IT center
- The government has aerospace, defense, IT, software and telecommunication research facilities based in Bangalore.
- Bangalore has enjoyed sustained growth nearing 10% per annum and now has India's third highest GDP per capita
- Bangalore's BPO:
- BPO = Business process outsourcing which basically means back room operation like human resources, customer services and accounting
- Reuters, HSBC, Dell, JP Morgan and Citi
- Bangalore's ITO:
- ITO = Information technology outsourcing includes things like IT support, programming, collation of data and data analysis
- Microsoft, Google, Yahoo, Cisco, Samsung, Motorola and Intel
What are the reasons that make Bangalore as a home of IT outsourcing?
1. Most Indians know how to speak English
2. Growing number of high skilled graduates
3. Lower payment
4. Geographical location near to Europe, Middle East and East Asia
Question:
Aside from India, what other countries are expected to be a good place to locate global services and why?
3. Lower payment
4. Geographical location near to Europe, Middle East and East Asia
My thoughts:
Before I research some information about outsourcing, I did not know that India has been the pioneer in providing outsourcing solutions. Through reading articles, I realized that outsourcing to India has a lot of benefits since it is cost-effective and provides high-quality services. It seems like outsourcing to India is definitely a "win-win situation".
Question:
Aside from India, what other countries are expected to be a good place to locate global services and why?
Na Li, to answer your question simply, there is a chart on the Greenfield Geography website that shows the top outsourcing locations. The top 5 are: Indonesia, Egypt, Malaysia, China, and India. Philippines is at number 9 but I bet that has changed since the chart came out in 2011.
ReplyDeleteThe site shows top 100 outsourcing destinations rankings.(http://www.tholons.com/TholonsTop100/pdf/Tholons%20Top%20100%202013_Rankings%20and%20Report%20Overview.pdf)
ReplyDeleteBanglore is ranked on the first place in 2013. Mumbai in India, Manila in the Philippines and Deihi in India are other good places for outsourcing destinations. Also, most destinations that are ranked in high places are located in India, which means that India is really becoming the capital of outsourcing in India. China and the Philippines are also good places to locate global services. China and the Philippines has the similarities which are lower wages and highly dense population.
The pie chart you put was easy to understand the main reasons why outsourcing is happening. The BPO and ITO you explained gave me a better idea of what outsource really is and I also like how you developed your thoughts at the end of your post.
ReplyDelete