3. History of BPO
• World War II
– Increased international trade
• 1960s – 1980s
– Importing turns to outsourcing
• 1990s – Present
– Services now outsourced
– BPO begins
4. HP Goes The Distance For P&G
• Corporate Culture & Brand
• Finance and Accounting
• Bangalore & Mumbai, India
• Global Customers w/ Local
Support
• Core Competencies cut
Defects
8. BPO Disadvantages
• Recent Studies
• Knowledge Disappears and is Transferred
to the Outsourcing Partner
• Poor Quality Control
• Restoring Operations is Complicated
• Lack of Loyal Employees
• Reduction in Strategic Alignment
10. Why BPO in India?
• Language
• Education
• Quality
- Communication
- No pirated products
• If Chinese Government Policy changes, what will
happen?
- Turning point will be by 2010
11. Comparison: India versus China
India
• Educational System
• Cost Advantage
• Time/Distance Advantage
• English proficiency
• Government Support
• Quality
• Labor Pool
China
• Educational System
• Cost Advantage
• Time/Distance Advantage
• Close to Japan
12. Matching Process to Market
India
• Development of
software
• Call center
– IBM
China
• Manufacturing of
components
• Japanese IT
Companies
15. 5 Managerial Steps That Pay Off
1. Go Offshore for the right reasons
• Shifting a broken process overseas may not fix it
2. Choose your model carefully
• Could cost more…..(I’ll fix this part)
3. Get your people on board
• Employees and middle managers can make the bold
move happen….or stop you in your tracks
16. 5 Managerial Steps That Pay Off
4. Be prepared to invest time and effort
• Often what is lacking in offshore partners is a lot of
deep process knowledge
4. Treat your partners as equals
• Telling your partners exactly what to do and how to
do it is not conducive to the entire process