Futur e

Outsour cing
Group2,
Himanshu
Ravi Teja
Ruchi
Aishwaryan
Shilpa Susan Philip
Ravi Teja
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Contents

• Assumption
• Issue Under Focus
• Trend
• Why India
• Why not Philippines-Business Portfolio Matrix
• Strategies to avoid Pitfalls
• Benefits for the Firm
• Conclusion
• Reference

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• 2
Assumption

• The firm is well established one in US

• Already outsourcing to India with good
success rate.


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 Issue Under Focus


 Whether to Outsource to Philippines or to

stay in India

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 Trends

Statistics referenced from AIB-SE (USA) 2010 Annual Meeting report

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 Why Not India

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Source : http://www.bizbrim.com/outsourcing/business-process-outsourcing-philippines .h
Business Portfolio Matrix- a tool for
international marketing
identification
Country Attractiveness
Co High Medium Low
mp
an .
y’
s High
co
mp
at
ib
il
it Medium
y
wi
th
ea
ch
co
un Low
tr
y
Primary Opportunity Secondary Opportunity Tertiary Opportunity

Refer footnotes for Source: Harrell and Keifer (1993)

explanation
 Types of Opportunities
Primary opportunity  These markets indicate the best
Secondary opportunities for long-term
Theseare the markets wherestrategic
opportunities
opportunity
Tertiary opportunity development.
are identified
Theseare but with high perceived
the catch-what-you-can risks
markets.
Firms should consider establishing
(political
These areorhigh
financial) to making
perceived it less
risk markets.
permanent
favorable
Firms are topresence
make
only after
to thorough
long-term
willing research.
irrevocable
allocate minimum
commitment.
resources.
Firms should consider these markets with
Limited marketing research is conducted.
caution and need to set up comprehensive
marketing information before making a
decision.

Doole and Lowe, 2008, pg 111 - 112

 Hofstede’s cultural Analysis

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 Why Philippines

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Source : http://www.bizbrim.com/outsourcing/business-process-outsourcing-philippines .h
 Possible Pitfalls
• Suitable pricing model
• IP rights issues
• Data security
• Dispute resolution & indemnification
• Consent for further subcontracting
• Exit strategy for contract

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 Strategy
For
Avoiding Pitfalls

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Strategy

• .
•
•

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Contd….

• .
•
•

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 Benefits for US firm

•
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Source: http://www.cyborlink.com/besite/china.htm
Conclusion

• While India is currently the Epicenter for global Outsourcing,

Philippines is not far away in the race being now at the third
position
•
• With High investment of Philippines government in
Infrastructure, is turning Philippines into a more desirable
competitive location for investors.
•
• Currently Philippines is in a Golden Age as it relates to
Outsourcing growth, hence it’s the right time for the firm to
diversify into Philippines..

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 Reference

• Zhandg,Betty,(October 22, 2003),Using Outsourcing to

India in Future, Published in Window to India
• Bunn,Ted(Feb 22, 2008),Outsourcing to Philipines,
Published in Window to India
•

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  THANK
YOU…
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6/17/2010 21