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    Survey Findings On Outsourcing: - Characteristics of Future Winners

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    Vinita Shahani
    The document discusses survey findings on outsourcing HR services. Key findings include that 54% of organizations outsource to reduce operating costs in 2010, up from 45% in 2006. 24% of organizations measure ROI of HR outsourcing through improved service quality and operational efficiencies. The case studies discuss how outsourcing accounts payable processing helped a company gain early payment discounts and improve supplier relations by reducing costs. Rural BPOs aim to generate employment and empower women while overcoming obstacles like technology and acceptance. Tata Communications outsourced to TCS to lower costs, improve efficiency and comply with regulations, achieving significant financial benefits and other improvements.

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    Survey Findings On Outsourcing: - Characteristics of Future Winners

    Uploaded by

    Vinita Shahani
    6 views24 pages
    The document discusses survey findings on outsourcing HR services. Key findings include that 54% of organizations outsource to reduce operating costs in 2010, up from 45% in 2006. 24% of organizations measure ROI of HR outsourcing through improved service quality and operational efficiencies. The case studies discuss how outsourcing accounts payable processing helped a company gain early payment discounts and improve supplier relations by reducing costs. Rural BPOs aim to generate employment and empower women while overcoming obstacles like technology and acceptance. Tata Communications outsourced to TCS to lower costs, improve efficiency and comply with regulations, achieving significant financial benefits and other improvements.

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    The document discusses survey findings on outsourcing HR services. Key findings include that 54% of organizations outsource to reduce operating costs in 2010, up from 45% in 2006. 24% of organizations measure ROI of HR outsourcing through improved service quality and operational efficiencies. The case studies discuss how outsourcing accounts payable processing helped a company gain early payment discounts and improve supplier relations by reducing costs. Rural BPOs aim to generate employment and empower women while overcoming obstacles like technology and acceptance. Tata Communications outsourced to TCS to lower costs, improve efficiency and comply with regulations, achieving significant financial benefits and other improvements.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    6 views24 pages

    Survey Findings On Outsourcing: - Characteristics of Future Winners

    Uploaded by

    Vinita Shahani
    The document discusses survey findings on outsourcing HR services. Key findings include that 54% of organizations outsource to reduce operating costs in 2010, up from 45% in 2006. 24% of organizations measure ROI of HR outsourcing through improved service quality and operational efficiencies. The case studies discuss how outsourcing accounts payable processing helped a company gain early payment discounts and improve supplier relations by reducing costs. Rural BPOs aim to generate employment and empower women while overcoming obstacles like technology and acceptance. Tata Communications outsourced to TCS to lower costs, improve efficiency and comply with regulations, achieving significant financial benefits and other improvements.

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    SURVEY FINDINGS ON OUTSOURCING

    – CHARACTERISTICS OF FUTURE WINNERS


    affing
    exibili
    INTRODUCTION
    ty

    Focus on
    Core
    Operati Activities
    onal
    Control
    Continuity
    Managemen
    t

    Cost
    savings

    Reduced
    overhead
    eFunds Corporation
    • Start-up Year: 1998

    • Area of Operations: Call centre, getting into transaction processing

    • Location: Mumbai

    • Managing Director: Atul Kunwar, Global Outsourcing Operations

    • Promoters/Owners: Efunds Corporation

    • Approximate Headcount: 3,000


    eFundsBlueprint
    Corporation
    for success

    COMPETENCE
    VALUE THIRD-PARTY
    START-UP ACCUMALATIO
    ADDITTION OPERATOR
    N

    Captive to Third Party Operator


    Cost Overruns
    “Time” frame issues
    Quality Issues
    eFunds Corporation

    “Time”
    frame
    Cost issues
    Overruns

    quality
    issues
    SURVEY BACKGROUND

     Human Resource consulting and outsourcing solutions

     February 2009 – How US organizations manage their HR services

     Aim – Understand why companies outsource

     Participants – 104 participants


    OUTSOURCING PERCEPTIONS

    Attract , Retain & Grow Talent


    29%

    2006
    50% 2009
    2010

    21%
    OUTSOURCING PERCEPTIONS

    Focus on core capabilities


    35% 35%
    2006
    2009
    2010
    30%
    OUTSOURCING PERCEPTIONS

    Support business Changes


    32%
    38%
    2006
    2009
    2010
    30%
    OUTSOURCING PERCEPTIONS

    Reducing operating cost


    1%

    45% 2006
    2009
    54% 2010
    Measuring the ROI of HR Outsourcing

    ROI
    14% 24%
    Improved Service Quality
    Improved Operational
    19% efficiencies
    Reducing Operating Costs
    Improved Employee
    Satisfaction
    HR Staff Realignment
    20% 23%
    CASE STUDY

    Background
    European Business Service Centre

    customer services and a shared financial services centre.

    Finance and Administration Services to Xerox customers

    Shared Service Centre

     Processed Accounts payable


    CASE STUDY

    Challenge
    Most cost and process-effective

    Central scanning and indexing of invoices

    Struggle to deliver economies of scale

    Outsourcing agreement – cost efficiency


    CASE STUDY

    Result
     Costs are tracked by country according to processing volume

     More early-payment discounts

     Improved supplier relations


    CASE STUDY

    Future
    Building on the success of the
    accounts payable outsource
    solution, Xerox is adopting the
    same approach to people,
    processes and technology
    CASE -RURAL BPO’s
    Rural BPO’s
    • Concept
    • Why?
    1. Employment generation
    2. Women empowerment
    3. Scaling up costs
    4. Attrition rates
    5. Cost of living & salary
    • Obstacles to overcome
    1. Technology
    2. Acceptance
    3.Recruitment & Training
    Introduction

     80 cities across 40 countries

     Services : transmission , IP converged voice,


    Mobility, managed network connectivity , data
    centers, communication solutions
    Business Situation

     Restructuring owing to change of ownership

     Business expansion over a wide geography

     Lower the cost and improve operational efficiency

     Complying with the stringent regulations


    TCS – TATA COMMUNICATIONS TIE UP

     Adopting Six Sigma technology throughout the value chain

     Working hand in hand with functional heads

     Tata Sigma X workshops were conducted for management team

     Associate training also provided with Six Sigma methodology


    (Tata Sigma X – green belt and black belt training)
    Results
    Significant financial benefits of 16.4 mm

    Increased revenue and reduced cost

    Greater employment participation

    Reached benchmark values in uptimes

    Improved Customer Satisfaction

    Legal compliance

    15% reduced cost of leased bandwidth


    Summary

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