Web-Based and Traditional Outsourcing

Web-Based and Traditional Outsourcing

by Vivek Sharma, Varun Sharma, K.S. Rajasekaran
Released April 2016
Publisher(s): Auerbach Publications
ISBN: 9781466551435

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Book description

In today's increasingly competitive business environment, organizations must be able to adapt to the ever-changing business landscape where traditional business concepts no longer ensure success. The future will be driven by value and competing ideas-creating an environment where old alignments and equations will be replaced by a global network of

Table of contents

  1. Cover
  2. Half Title
  3. Series Page
  4. Title Page
  5. Copyright Page
  6. Dedication Page
  7. Table of Contents
  8. Foreword
  9. Preface
  10. Section I General Outsourcing
    1. 1 Outsourcing Rudiments
      1. Brief Background
      2. The Goals of the Game
      3. Integrate, Integrate, and Still Integrate
      4. Outsourcing Basics
      5. Insourcing versus Outsourcing
      6. Offshoring versus Outsourcing
      7. Business Process Outsourcing (BPO)
      8. Types of Outsourcing
        1. Onshore Outsourcing
        2. Nearshore Outsourcing
        3. Offshore Outsourcing
      9. Outsourcing Decision and Its Consequences
      10. Growth of Outsourcing Worldwide
    2. 2 Outsourcing Benefits
      1. The Strategic Call
      2. The Various Approaches
      3. Subject Matter Expertise
      4. Technology's Transformation Touch
      5. The Cost Factor
      6. Holistic Offerings
      7. Speed of the Game
      8. The Engagement Players
      9. Resources Optimization
      10. Around-the-Clock Operations
      11. Demand Spikes
      12. Hiring Consultants for Setup
      13. Geography Is History
      14. The Quality Imperative
      15. Reuse of Projects, Resources, Experiences, Learning
      16. Higher Control and De-Risking
      17. The Many, Many Benefits
      18. Challenges
    3. 3 To Outsource or Not?
      1. To Be or Not to Be
      2. Realities and Myths
      3. Strategy and Considerations
      4. Strategy—Differs from Market to Market, Industry to Industry
      5. Strategy—Is Outsourcing Part of the Solution or Not?
      6. Costs Evaluation
      7. Pre-Outsourcing Evaluation
      8. Example—Outsourcing and Banks
      9. Example—BPO Operations—Business and Technology Convergence
      10. Example—IT Staff in an Accounting Firm—To Outsource or Not
      11. Outsourcing—Not a Final Solution in Itself
    4. 4 What to Outsource?
      1. Outsourcing Scope
      2. What to Outsource?
      3. Activities to Outsource?
      4. BPO—What to Outsource?
      5. Example—Outsourcing by Banks
      6. Example—Public Relations (PR) Function Outsourcing
      7. Example—End Customer Management through Customer Relationship Management (CRM) Solutions
      8. Example—Corporate Receivables Outsourcing to Banks
      9. Example—BPO Outsourcing of Sales Tax Compliance
      10. Example—BPO—Outsourcing Support Operations
      11. Example—Banking Operations Outsourcing
      12. Example—Tax Process Outsourcing
      13. Miscellaneous Examples
    5. 5 Outsourcing to India
      1. Asian Economy
      2. Brief History of Outsourcing in India
      3. Where to Outsource? SWOT Analysis of Outsourcing to India
      4. Benefits of Outsourcing to India
        1. The Benefits, at a Glance
      5. India—Preferred BPO Destination
      6. Top Outsourcing Cities in India
      7. Indian Vendors' Growth Challenges
      8. Example—GE
      9. Example—Awards to Indian BPOs
      10. Potential Countries for Outsourcing
      11. India versus Other Outsourcing Destinations
    6. 6 Vendor Selection
      1. Vendor Classifications
      2. Vendor Identification, Evaluation, Competency, Selection, and Management
      3. Vendor Competency Evaluation
      4. BPO-Specific Vendor Competency
      5. Role of Technology in Vendor Selection
      6. The Geographical Bearings of Buyers and Vendors and Some Generalizations
      7. Vendor's Past Performance History Check
      8. Vendor Selection Checklist
    7. 7 Contracts—Types, Pricing Models, and Issues
      1. Contract Types—Three Major Legal Structures
      2. (1) Third-Party Outsourcing
      3. (2) Parent-Subsidiary Relationship
        1. Captive Centers
      4. (3) Build-Operate-Transfer (BOT) Model
      5. Pricing Models
        1. Fixed-Price Model
        2. Transactional Pricing Model
        3. Activity-Based Pricing Model
        4. Cost-Plus Pricing Model
        5. Gain-Sharing Model
      6. Contract Drawing
      7. Contractual Issues
      8. Contractual Risks
      9. Collaborations—Joint Ventures
      10. Contract Termination
      11. Transitioning—Postcontract Termination
      12. Example—Antidumping U.S. Law
    8. 8 Operations—Execution, Challenges, Quality, Etc.
      1. Operations Optimization
      2. Operations Optimization through Vendor Expertise
      3. Operations Execution
      4. Example—Operations
      5. Example—BPO Operations—Mentor-Mentee Concept
      6. Operational Costs
      7. Example—Chief Financial Officer (CFO)—Role and Operations
      8. Example—Bearings of Office Location
      9. Vendor Management
      10. Example—Outsourcing BPO Operations to India
      11. Example—Outsourcing Customer Support
      12. Operational Challenges
      13. Example—Operational Challenges of Banks and Financial Organizations
      14. Risk Management
      15. Operations—Contingency—Disaster Recovery (DR)
      16. Quality Imperative
  11. Section II Web-Based Outsourcing
    1. 9 Web Outsourcing— Introduction
      1. Internet—Brief Background
      2. History of the Internet
      3. How People Discover Web Sites
      4. Web-Based Outsourcing
    2. 10 Web outsourcing Models and Frameworks
      1. Business Model 1—outsourcing over the Web using Well-defined Contracts
        1. Compensation Principie
        2. Working Framework 1
        3. Working Framework 2
        4. Salient Feature of This Framework
        5. Related Examples
      2. Business Model 2—Outsourcing over the Web without Contracts
        1. Compensation Principie
        2. Working Framework
        3. Salient Feature of This Model
        4. Movement of Projects between Models 1 and 2
        5. The Models—Roles
          1. Web Portal Owner, Administrator
          2. Outsourcing Buyer
          3. Project Evaluator
          4. Vendor Seller
          5. Financial Intermediary
        6. Criteria for Success of These Models
        7. The Models "1 and 2" Value Proposition
      3. Business Model 3—Strategic Tie-Ups— The Time Shares—Selling Time
        1. How It Works
        2. The Models—Roles
          1. Web Portal Owner, Administrator
          2. Proposer
          3. Investors
          4. Financial Intermediary
        3. The Web Portal Setup and Features
        4. Related Examples
        5. Criteria for Success of These Models
        6. The Model Value Proposition
      4. Business Model 4—Strategic Tie-Ups—Making Customers and Employees Shareholders
        1. Model 4a—Making Outsourcing Customers Shareholders
          1. Roles
          2. The Web Portal Setup and Features
        2. Model 4b—Making Employees Shareholders
        3. Roles
        4. The Web Portal Setup and Features
        5. Examples
        6. Criteria for Success of These Models
        7. Limitations
        8. The Models Value Proposition
      5. Business Model 5—Time-Based Costs for Services and Products in Outsourcing
        1. Roles
        2. The Web Portal Setup and Features
        3. Application Examples
        4. Criteria for Success of These Models
        5. The Model Value Proposition
      6. Business Model 6—For Every "n" Units Sold, Giving "m" Units Free
        1. Roles
        2. The Web Portal Setup and Features
        3. Application Examples
        4. Criteria for Success of These Models
        5. The Model Value Proposition
      7. Business Model 7—Prepurchase of Outsourced Products and Service in Bulk with Delivery Spread Out in Parts at a Later Period of Time
        1. Roles
        2. The Web Portal Setup and Features
        3. Application Example
        4. Criteria for Success of These Models
        5. The Model Value Proposition
      8. Business Model 8—Big Projects Outsourcing to a Consortium
        1. Consortium Contract Basics between Partners
        2. Operations
          1. Designation of Project Managers
          2. Monitoring and Coordination Committee
        3. Roles
        4. Example 1
        5. Example 2
        6. Criteria for Success of These Models
        7. The Model Value Proposition
      9. Business Model 9—Using Online Provider/ Vendor to Manage the Internet Business (E-Business) Part/Component
        1. Roles
        2. The Web Portal Setup and Features
        3. Criteria for Success of These Models
        4. The Model Value Proposition
      10. Business Model 10—Automated Outsourcing Using Software Agents
        1. Related Examples
        2. The Model Value Proposition
    3. 11 Web Outsourcing Examples
      1. Projects That Are Good Candidates of These Models
      2. General Category of Applicable Projects
      3. Miscellaneous Examples
        1. Example—Design of Application and/or Respective Reviews
        2. Example—Technical Consulting for Problem Resolution
        3. Example —Application Development
        4. Example—Web Site Content Writing
        5. Example-Marketing and Consulting Online
        6. Example—Search Engine Marketing (SEM)
        7. Example—Web Link Building Service
        8. Example—Data Collection
        9. Example—Web Site Marketing
        10. Example—Newsletters
        11. Example—Online Newspapers and Magazines
        12. Examples—Merging of Fields—Advertisements, Entertainment, Education, and Service
        13. Example of Outsourcing Online—Tax Preparation Services
        14. Example—Desktop Publishing (DTP) Outsourcing Online
        15. Example—Outsourcing Training and E-Learning Products Development Online
        16. Example-Home and Business Shopping
        17. Example-Outsourcing of Small Web-Based Businesses (e.g., Online Video Rentals)
        18. Example—Insourcing Online over the Organization's Internal Intranet Network
        19. Example—Usage of Online Software Agents
      4. Examples in E-Commerce
        1. E-Commerce Applications—Order Management
        2. Examples of E-Commerce Applications—Content Ownership
        3. Examples of E-Commerce Applications—Interactive Multimedia Online
        4. Example—Interactive Communications Online
        5. EDI Example-Medical Field
        6. EDI Example—Usage in Manufacturing and Retail Procurement
        7. EDI Examples—Miscellaneous Usages
        8. EDI Example-International Trade
        9. EDI
        10. Example—Shift over from Manual to Computerized Online Business
        11. Example—Financial Organizations and Banks Using Online Service Providers
      5. Examples—Potential Fields for Outsourcing to India
        1. Example—IBM's E-Business Strategy
        2. IBM's E-Business Approach
          1. Key Focus Areas
        3. Example—Mphasis' VTR (Virtual Tax Room) Tool
    4. 12 Web Outsourcing— Criteria for Success, Challenges
      1. "Nature" of Business, Online
      2. What Does Not Qualify for Online Outsourcing
      3. Market Readiness
      4. Target Geography for Online Outsourcing
      5. Vast online Information Volumes
      6. Transparency and Interoperability between Networked Systems
      7. Quality
      8. Time, Speed, and Uncertainty
      9. Convenience and Self-Service
      10. Personalization and Customization
      11. Learn to outsource, even online
      12. High Demands of Online Users/Customers
      13. Outsourcing Approach Online and Confidentiality
      14. Training
      15. Online Vendor/Providers Specialized Domain, Business, and Technology Skills
      16. Online Outsourcing Organization's Specialized Business Skills
      17. Risk Management
      18. Employee Retention
      19. Variable Pay
      20. Access to Critical, Sensitive Data by Partners, Online Vendors, and Unauthorized Users
      21. Language Nuances Online
      22. Recession and Low Market economic Conditions
      23. Layoffs
      24. Reverse Brain Drain
      25. Reuse of Related Past Work, Knowledge, and Experience
      26. Presentation Challenges Online for Enabling Quick Decision Making in Web-Based Applications
      27. Readability Challenges Online
      28. Personalization Challenges through Example—Video Rentals Survey
      29. Acceptance of the Concept
      30. Online Payment Systems and Electronic Data Interface (EDI) Challenges
      31. "Business Transactions Challenges" of E-Commerce
      32. Technical Challenges in E-Commerce Applications
      33. The Rate of Proliferation of Internet/ Intranet Outsourcing Portals
      34. General Challenges Faced by the Internet
      35. Need for Standards
      36. Openness
      37. Global Governance
      38. Design
      39. Investments
      40. Data Management
      41. Security
      42. Strategic Cooperation
      43. Mobility
      44. Speed
      45. Limitations of Online Outsourcing
    5. 13 Web outsourcing— Advantages
      1. Business Advantages in the Virtual World of Web Outsourcing
        1. Pioneer Advantage
      2. Highly Skilled People and Resources
      3. Reuse of Tools, Resources, Experiences
      4. Borderless World
      5. 24/7 x 365 operations
      6. Speed
      7. Strategic Focus
      8. Vendors' Geographical Spread
      9. Personalized, Customized Services
      10. Exponential Growth Prospects
      11. Budgets for Setup and Working
      12. Web—The Information Superhighway
      13. Dematerialization—Migration of Manual/ Paper Records to Electronic Media, online
      14. Leveraging from Outsourcing, Online
      15. Financial Benefits
      16. Cross-Currency Conversion Benefits
      17. Higher Integration
      18. Dell's Outsourcing Strategy
      19. Mass Customization
      20. Dell—Some Salient Points
      21. Reduced Learning Curve for Online Organizations
      22. Brand Building
      23. Substantial Changes in the Environment
      24. Interoperable Communications
      25. Quality and Continuous Benchmarking
      26. Long-Term Career Paths
      27. Reduced Liability and Risk
      28. Knowledge Store
      29. Linguistic Barrier Is Greatly Lowered
      30. Repetitive Tasks and Labor Costs—Software Agents
      31. Automation—Software Agents
      32. Online Payments
      33. Operational Efficiency
      34. E-Commerce Benefits
      35. Electronic Data Interchange (EDI) Advantages
      36. Advantages of Outsourcing Online to India
    6. 14 Business-to-Business Payment Systems Online
      1. E-Commerce—Internet Communications
      2. Electronic Payment Systems
      3. Payment Gateways
      4. Electronic Commerce and EDI
      5. EDI—Some Definitions
      6. "EDI Concept"
      7. EDI—The Future
        1. EDI Example-Manual Process Using Paper Checks (Limitations)
      8. Clearing Automation through Truncation and Electronic Check Presentment (TECP)
        1. Example-Automated Clearing House (ACH) Transfers
      9. Electronic Funds Transfer (EFT) Process
      10. Financial Instruments
      11. Electronic Token
      12. E-Cash
        1. E-Cash Basics
        2. Usage Issues with E-Cash
        3. E-Cash Working Mechanism
      13. E-Checks Working Mechanism
      14. Smart Card
        1. Smart Cards—Advantages
      15. Example—EDI Usage by Sears Roebuck Organization
  12. Section III Slowdown and Outsourcing
    1. 15 The Slowdown Scenario
      1. Economic Turmoil
      2. Indices Nosedive Worldwide—Growth Forecasts Downgraded
      3. Forecasts Downgraded in India
      4. Economic Situation in the United Kingdom during Slowdown
      5. Budget Squeeze and IT Spending Declines
      6. Example—Microsoft CEO's View
      7. Example—Nortel's Bankruptcy
      8. Example—Satyam Saga—Credibility Loss
      9. Examples—Frills Cost Cutting in the IT and BPO Sector
      10. Moody's Estimates on Outsourcing to India
      11. India and Other Countries as the Outsourcing Destination
    2. 16 Business Repositioning in Slowdown
      1. Business Repositioning—Slowdown—CEOs Speak at Harvard Meeting on Cause and Measures
      2. Business Repositioning—IT Spending and Budget Slash during Slowdown
      3. Business Opportunities during Economic Slowdown
      4. Business Repositioning Due to Recession—General Strategies
      5. Business Repositioning—High Exposure to Financial Services Sector Outsourcing
      6. Example—Business Strategy of Infosys
      7. Business Deals Contracting—Short- and Long-Term
      8. Example—Infosys and Wipro Short- and Long-Term Contracts Ratio
      9. Example—Airtel-IBM Long-Term Contract
      10. Business Repositioning through Regional Shifts and Strategy
      11. Strategy—Risk Mitigation through Geographical Spread
      12. Mergers and Acquisitions (M&A)
        1. M&A—Risky Acquisitions
        2. Restructuring and Consolidation in Indian Companies—M&A
        3. Example—Axon M&A
        4. M&A—Example—Impact on Genpact after Wachovia's Assets Sale to Citigroup
      13. M&A Examples
        1. M&A Example—Barclays
        2. M&A, Hiring Example by CSC
        3. Miscellaneous M&A Examples in India
      14. Governments—Support and Control Measures
        1. Government Mitigation Measures Worldwide
        2. Government Outsourcing Projects
        3. Challenges Faced by U.S. Administration during Slowdown
        4. U.S. Government Bailout and Regulations
        5. Example—Legal Requirements When Outsourcing by American Banks
        6. Investment Wooing by U.S. Government Bodies of Indian Firms
        7. European Government Support during Crisis
      15. Government of India Support and Policies
        1. Government of India—Taxation Policies during Slowdown
        2. Special Economic Zones (SEZs) in India during Slowdown
      16. Examples of Organizations That Managed the Slowdown Successfully
        1. Example—IBM Exception during Slowdown
        2. Example—Outsourcing by JP Morgan Chase
        3. Example—M&A—Mergers of Global Banks
        4. Example—Omega BPO's Business Strategy
        5. Example—Business Processing Outsourcing by Capita, UK
        6. Example—Dell Worldwide Launch
        7. Example—Godrej-HP Contract
        8. Example—BPO Operations Execution Example—By Vertex
        9. Example—Legal Process Outsourcing (LPO)
        10. Example—Tesco
        11. Example—Banking Products
        12. Examples—Miscellaneous
    3. 17 Slowdown—Hiring, Layoffs, and Attrition
      1. Attrition
      2. Layoffs during Slowdown
      3. Indian Reverse Brain Drain
      4. Economy and People's Health
      5. Personnel Retention
      6. Example—Hiring by RBS of Lehman
        1. Hiring in India before and during the Financial Slowdown
      7. India—Back to Hiring after the Economic Recovery
  13. Section IV Outsourcing-Miscellaneous Concerns and The Future
    1. 18 Intellectual Property and Data Security
      1. Intellectual Property (IP)
        1. Piracy
        2. Ip
      2. Security
      3. Malicious Codes and Protection Methods
        1. Common Hacking Examples
        2. Mobile Code
        3. Virus Examples
      4. Security—Risks in E-Commerce
      5. Network Security
      6. Secure Messaging over Networks
      7. Protection Mechanisms and Practices against Hacking and Security Risks
      8. Encryption and Cryptography
      9. Digital Signatures
      10. "Firewall"—Infrastructure Protection
    2. 19 Reflections about the Future
      1. History Revisited
      2. The Generations
        1. Phase 1—1980 to 1990—Tactical Outsourcing— Solve Business-Specific Problems
        2. Phase II—1991 to 2000—Strategic Outsourcing— Build Strategic Relationships
        3. Phase 111—2001 Onward—Transformational Outsourcing— Create Interdependencies to Bring Innovation
      3. Reflections on the Future of Outsourcing
        1. Population, Labor, and Outsourcing
        2. Unionism's Decline in the United States
        3. The New Age Worker
      4. The India and China Axis
        1. India and China
      5. The Indian Equation
        1. Challenges for India
      6. Miscellaneous Outsourcing Countries
      7. Trends
        1. Idea versus Size
        2. Outsourcing Promiscuity
      8. Outsourcing Highlights
        1. Transformational Outsourcing
        2. End-to-End Solutions
        3. Need for Speed
        4. Intermediary Dissipation
        5. The Education Alignment
        6. Government Support
        7. The Governing Systems
        8. Global Integration
        9. End User Say
        10. Business Metamorphosis
        11. Rise of Global Players
        12. Outsourcing Functions
        13. Economy Impact
        14. Outsourcing: Private and Government Deals
        15. Temporary Demand Spikes
        16. Currency Interchange
        17. Internet Growth and Outsourcing
        18. New Quality Definitions
        19. Synergy between Outsourcing Players
        20. Growth of New Business Avenues
        21. Useless Data Volumes
        22. Education and Certifications
        23. Inventory
        24. Agriculture Outsourcing
        25. Tourism Outsourcing
        26. Oil Impact
        27. Contingency Planning
        28. Job Loss
        29. Startup Cost
        30. World Security
        31. Individual Privacy
        32. What Will Not Be Outsourced
        33. Growth of Outsourcing in Information Technology and BPO Domains
      9. Automation, Technology, and Outsourcing
        1. The Technology Curve
        2. E-Materialization
        3. Workplaces Metamorphosis
      10. Impact on Transportation
      11. Examples of Future Business Forays of Outsourcing
        1. Microcommerce Business Opportunities
        2. Examples
          1. Person-to-Person Outsourcing (P2P Offshoring)
        3. Knowledge Process Outsourcing (KPO)
        4. Outsourcing of R&D
        5. Legal Outsourcing (LPO)
        6. Energy Outsourcing
      12. Miscellaneous Examples of the Near Future of Outsourcing
      13. The Bow and Final Words
  14. Appendix: Enabling Infrastructure and Components
    1. Hardware Deployment
    2. Office Equipment Products
    3. The Client-Server Model and E-Commerce
    4. Middleware
    5. Network
    6. Proxy
    7. Routers
    8. Telecom Networks
    9. Satellites
    10. Data Compression
    11. Data Encryption
    12. Encryption—RSA
    13. Video Conferencing
      1. Multimedia—Evolution Challenges
    14. Video Server
    15. Pictures
    16. Some Definitions
    17. Other Books on the Outsourcing Subject That Include Model II
  15. Bibliography
  16. Index
  17. Author Biographies

Product information

  • Title: Web-Based and Traditional Outsourcing
  • Author(s): Vivek Sharma, Varun Sharma, K.S. Rajasekaran
  • Release date: April 2016
  • Publisher(s): Auerbach Publications
  • ISBN: 9781466551435