xii ◾  Contents
e Model Value Proposition ..........................................................156
Business Model 8—Big Projects Outsourcing to a Consortium ...............157
Consortium Contract Basics between Partners ...............................158
Operations ......................................................................................158
Designation of Project Managers ...........................................158
Monitoring and Coordination Committee ............................158
Roles ...............................................................................................160
Example 1 .......................................................................................160
Example 2 .......................................................................................160
Criteria for Success of ese Models ...............................................160
e Model Value Proposition ..........................................................160
Business Model 9—Using Online Provider/Vendor to Manage the
Internet Business (E-Business) Part/Component ......................................161
Roles ...............................................................................................162
e Web Portal Setup and Features ................................................162
Criteria for Success of ese Models ...............................................163
e Model Value Proposition ..........................................................163
Business Model 10—Automated Outsourcing Using Software Agents ....163
Related Examples ............................................................................165
e Model Value Proposition ..........................................................166
11 Web Outsourcing Examples ...............................................................169
Projects at Are Good Candidates of ese Models ..............................169
General Category of Applicable Projects ..................................................170
Miscellaneous Examples ..........................................................................170
Example—Design of Application and/or Respective Reviews .........171
ExampleTechnical Consulting for Problem Resolution ...............171
ExampleApplication Development .............................................171
ExampleWeb Site Content Writing .............................................171
ExampleMarketing and Consulting Online ...............................172
ExampleSearch Engine Marketing (SEM) ..................................173
ExampleWeb Link Building Service ...........................................173
Example—Data Collection ............................................................173
ExampleWeb Site Marketing ......................................................174
Example—Newsletters ...................................................................174
ExampleOnline Newspapers and Magazines ..............................174
ExamplesMerging of FieldsAdvertisements, Entertainment,
Education, and Service ...................................................................175
Example of Outsourcing OnlineTax Preparation Services ..........175
Example—Desktop Publishing (DTP) Outsourcing Online ..........176
ExampleOutsourcing Training and E-Learning Products
Development Online ......................................................................176
Example—Home and Business Shopping .......................................177
Contents ◾  xiii
ExampleOutsourcing of Small Web-Based Businesses (e.g.,
Online Video Rentals) ....................................................................177
Example—Insourcing Online over the Organizations Internal
Intranet Network ............................................................................177
Example—Usage of Online Software Agents .................................177
Examples in E-Commerce .......................................................................178
E-Commerce ApplicationsOrder Management ..........................178
Examples of E-Commerce ApplicationsContent Ownership ......178
Examples of E-Commerce Applications—Interactive
Multimedia Online .........................................................................178
Example—Interactive Communications Online .............................179
EDI Example—Medical Field ........................................................179
EDI Example—Usage in Manufacturing and Retail Procurement .180
EDI ExamplesMiscellaneous Usages ..........................................181
EDI Example—International Trade ...............................................182
EDI ................................................................................................183
ExampleShift over from Manual toComputerized Online
Business ..........................................................................................184
Example—Financial Organizations and Banks Using Online
Service Providers .............................................................................184
ExamplesPotential Fields for Outsourcing to India ..............................185
Example—IBM’s E-Business Strategy ............................................186
IBM’s E-Business Approach ............................................................187
Key Focus Areas ....................................................................187
ExampleMphasis’ VTR (Virtual Tax Room) Tool ......................187
12 Web OutsourcingCriteria for Success, Challenges .........................189
“Nature” of Business, Online ...................................................................189
What Does Not Qualify for Online Outsourcing ....................................190
Market Readiness ....................................................................................190
Target Geography for Online Outsourcing ..............................................190
Vast Online Information Volumes ...........................................................191
Transparency and Interoperability between Networked Systems .............191
Quality ....................................................................................................192
Time, Speed, and Uncertainty .................................................................192
Convenience and Self-Service ..................................................................193
Personalization and Customization ..........................................................194
Learn to Outsource, Even Online ............................................................194
High Demands of Online Users/Customers ............................................195
Outsourcing Approach Online and Condentiality .................................196
Training ...................................................................................................197
Online Vendor/Providers Specialized Domain, Business, and
Technology Skills .....................................................................................197
xiv ◾  Contents
Online Outsourcing Organizations Specialized Business Skills ...............198
Risk Management ....................................................................................198
Employee Retention .................................................................................198
Variable Pay .............................................................................................198
Access to Critical, Sensitive Data by Partners, Online Vendors, and
Unauthorized Users .................................................................................199
Language Nuances Online ......................................................................199
Recession and Low Market Economic Conditions .................................. 200
Layos .................................................................................................... 200
Reverse Brain Drain .................................................................................201
Reuse of Related Past Work, Knowledge, and Experience ........................201
Presentation Challenges Online for Enabling Quick Decision Making
in Web-Based Applications ......................................................................201
Readability Challenges Online ................................................................201
Personalization Challenges through Example—Video Rentals Survey .....202
Acceptance of the Concept ......................................................................202
Online Payment Systems and Electronic Data Interface (EDI)
Challenges ...............................................................................................202
“Business Transactions Challenges” of E-Commerce ...............................203
Technical Challenges in E-Commerce Applications ................................203
e Rate of Proliferation of Internet/Intranet Outsourcing Portals ......... 204
General Challenges Faced by the Internet ............................................... 204
Need for Standards ..................................................................................205
Openness .................................................................................................205
Global Governance ................................................................................. 206
Design .................................................................................................... 206
Investments ............................................................................................. 206
Data Management ...................................................................................207
Security ....................................................................................................207
Strategic Cooperation ..............................................................................207
Mobility ...................................................................................................207
Speed ...................................................................................................... 208
Limitations of Online Outsourcing ........................................................ 208
13 WebOutsourcing—Advantages .........................................................209
Business Advantages in the Virtual World of Web Outsourcing ..............210
Pioneer Advantage ..........................................................................210
Highly Skilled People and Resources .......................................................210
Reuse of Tools, Resources, Experiences ....................................................211
Borderless World ......................................................................................212
24/7 × 365 Operations .............................................................................212
Speed .......................................................................................................212
Strategic Focus .........................................................................................213
Contents ◾  xv
Vendors’ Geographical Spread .................................................................213
Personalized, Customized Services ...........................................................214
Exponential Growth Prospects.................................................................215
Budgets for Setup and Working ...............................................................215
Webe Information Superhighway ....................................................215
Dematerialization—Migration of Manual/Paper Records to
Electronic Media, Online ........................................................................215
Leveraging from Outsourcing, Online .....................................................216
Financial Benets.....................................................................................216
Cross-Currency Conversion Benets .......................................................216
Higher Integration ...................................................................................217
Dells Outsourcing Strategy .....................................................................218
Mass Customization ................................................................................218
Dell—Some Salient Points.......................................................................218
Reduced Learning Curve for Online Organizations ................................219
Brand Building ........................................................................................219
Substantial Changes in the Environment ................................................ 220
Interoperable Communications ............................................................... 220
Quality and Continuous Benchmarking ................................................. 220
Long-Term Career Paths ..........................................................................221
Reduced Liability and Risk ......................................................................221
Knowledge Store ..................................................................................... 222
Linguistic Barrier Is Greatly Lowered ..................................................... 222
Repetitive Tasks and Labor CostsSoftware Agents ............................. 222
Automation—Software Agents ................................................................223
Online Payments .....................................................................................223
Operational Eciency .............................................................................223
E-Commerce Benets ..............................................................................224
Electronic Data Interchange (EDI) Advantages .......................................224
Advantages of Outsourcing Online to India ........................................... 226
14 Business-to-Business Payment Systems Online ..................................229
E-Commerce—Internet Communications ..............................................229
Electronic Payment Systems .....................................................................231
Payment Gateways ...................................................................................232
Electronic Commerce and EDI ................................................................232
EDI—Some Denitions ..........................................................................233
“EDI Concept” ....................................................................................... 234
EDI—e Future.....................................................................................235
EDI Example—Manual Process Using Paper Checks
(Limitations) ...................................................................................236
Clearing Automation through Truncation and Electronic Check
Presentment (TECP) ...............................................................................237

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