Web-Based and Traditional Outsourcing (Hardcover)

Outsourcing Rudiments
Brief Background
The Goals of the Game
Integrate, Integrate, and Still Integrate
Outsourcing Basics
Insourcing versus Outsourcing
Offshoring versus Outsourcing
Business Process Outsourcing (BPO)
Types of Outsourcing
Growth of Outsourcing Worldwide

Outsourcing Benefits
The Strategic Call
The Various Approaches
Subject Matter Expertise
Technology’s Transformation Touch
The Cost Factor
Holistic Offerings
Speed of the Game
The Engagement Players
Resources Optimization
Round-the-Clock Operations
Demand Spikes
Hiring Consultants for Setup
Geography Is History
The Quality Imperative
Reuse of Projects, Resources, Experiences, Learning
Higher Control and De-Risking
The Many, Many Benefits
Challenges

To Outsource or Not?
Realities and Myths
Strategy and Considerations
Strategy?Differs from Market to Market, Industry to Industry
Strategy?Is Outsourcing Part of the Solution or Not?
Costs Evaluation
Pre-Outsourcing Evaluation
Example?Outsourcing and Banks
Example?BPO Operations?Business and Technology Convergence
Example?IT Staff in an Accounting Firm?To Outsource or Not
Outsourcing?Not a Final Solution in Itself

What to Outsource?
Outsourcing Scope
What to Outsource?
Activities to Outsource?
BPO?What to Outsource?
Example?Outsourcing by Banks
Example?Public Relations (PR) Function Outsourcing
Example?End Customer Management through Customer Relationship Management (CRM) Solutions
Example?Corporate Receivables Outsourcing to Banks
Example?BPO Outsourcing of Sales Tax Compliance
Example?BPO?Outsourcing Support Operations
Example?Treasury Operations Outsourcing
Example?Tax Process Outsourcing
Miscellaneous Examples

Outsourcing to India
Asian Economy
Brief History of Outsourcing in India
Where to Outsource??SWOT Analysis of Outsourcing to India
Benefits of Outsourcing to India
The Benefits, at a Glance
India?Preferred BPO Destination Top Outsourcing Cities in India
Indian Vendors’ Growth Challenges
Example?GE
Example?Awards to Indian BPOs
Potential Countries for Outsourcing
India versus Other Outsourcing Destinations

Vendor Selection
Vendor Classifications
Vendor Identification, Evaluation, Competence, Selection, and Management
Vendor Competence Evaluation
BPO-Specific Vendor Competence
Role of Technology in Vendor Selection
The Geographical Bearings of Buyers and Vendors and Some Generalizations
Vendor’s Past Performance History Check
Vendor Selection Checklist

Contracts?Types, Pricing Models, and Issues
Contract Types?Three Major Legal Structures
(1) Third-Party Outsourcing
(2) Parent?Subsidiary Relationship
(3) Build?Operate?Transfer (BOT) Model
Pricing Models
Fixed-Price Model
Transactional Pricing Model
Activity-Based Pricing Model
Cost-Plus Pricing Model
Gain-Sharing Model
Contract Drawing
Contractual Issues
Contractual Risks
Collaborations?Joint Ventures
Contract Termination
Transitioning?Postcontract Termination
Example?Antidumping U.S. Law

Operations?Execution, Challenges, Quality, Etc.
Operations Optimization
Operations Optimization through Vendor Expertise
Operations Execution
Example?Operations
Example?BPO Operations?Mentor?Mentee Concept
Operational Costs
Example?Chief Financial Officer (CFO)?Role and Operations
Example?Bearings of Office Location
Vendor Management
Example?Outsourcing BPO Operations to India
Example?Outsourcing Customer Support
Operational Challenges
Example?Operational Challenges of Banks and Financial Organizations
Risk Management Operations?Contingency?Disaster Recovery (DR)
Quality Imperative

WEB-BASED OUTSOURCING

Web Outsourcing?Introduction
Internet?Brief Background
History of the World Wide Web
How People Discover Web Sites
Web-Based Outsourcing

Web Outsourcing Models and Frameworks
Business Model 1?Outsourcing over the Web Using Well-Defined Contracts
Business Model 2?Outsourcing over the Web without Contracts
Business Model 3?Strategic Tie-Ups?The Time Shares?Selling Time
Business Model 4?Strategic Tie-Ups?Making Customers and Employees Shareholders
Business Model 5?Time-Based Costs for Services and Products in Outsourcing
Business Model 6?For Every "n" Units Sold, Giving "m" Units Free
Business Model 7?Prepurchase in Bulk with Delivery Spread Out in Parts over a Period of Outsourcing Products and Services
Business Model 8?Big Projects Outsourcing to a Consortium
Business Model 9?Using Online Provider/Vendor to Manage the Internet Business (E-Business) Part/Component
Business Model 10?Automated Outsourcing Using Software Agents

Web Outsourcing Examples
Projects That Are Good Candidates of These Models
General Category of Applicable Projects
Miscellaneous Examples
Examples in E-Commerce
Examples?Potential Fields for Outsourcing to India

Web Outsourcing?Criteria for Success, Challenges
Web-Based Outsourcing Is Froth with Many Challenges
What Does NOT Qualify for Online Outsourcing
Market Readiness
Target Geography for Online Outsourcing
Vast Online Information Volumes
Transparency and Interoperability between Networked Systems
Quality
Time, Speed, and Uncertainty
Convenience and Self-Service
Personalization and Customization
Learn to Outsource, Even Online
High Demands of Online Users/Customers
Outsourcing Approach Online and Confidentiality
Training
Online Vendor/Providers Specialized Domain, Business, and Technology Skills
Online Outsourcing Organization’s Specialized Business Skills
Risk Management
Employee Retention
Variable Pay
Access to Critical, Sensitive Data by Partners, Online Vendors, and Unauthorized Users
Language Nuances Online
Recession and Low Market Economic Conditions
Layoffs
Reverse Brain Drain
Reuse of Related Past Work, Knowledge, and Experience
Presentation Challenges Online for Enabling Quick Decision
Taking in Web-Based Applications
Readability Challenges Online
Personalization Challenges through Example?Video Rentals Survey
Acceptance of the Concept
Online Payment Systems and Electronic Data Interface (EDI)
Challenges
"Business Transactions Challenges" of E-Commerce
Technical Challenges in E-Commerce Applications
The Rate of Proliferation of Internet/Intranet Outsourcing Portals
General Challenges Faced by the Internet
Need for Standards
Openness
Global Governance
Design
Investments
Data Management
Security
Strategic Cooperation
Mobility
Speed
Limitations of Online Outsourcing

Web Outsourcing?Advantages
Business Advantages in the Virtual World of Web Outsourcing
Highly Skilled People and Resources
Reuse of Tools, Resources, Experiences
Borderless World
24/7 × 365 Operations
Speed
Strategic Focus
Vendors’ Geographical Spread
Personalized, Customized Services
Exponential Growth Prospects
Budgets for Setup and Working
Web?The Information Superhighway
Dematerialization?Migration of Manual/Paper Records to Electronic Media, Online
Leveraging from Outsourcing, Online
Financial Benefits
Cross-Currency Conversion Benefits
Higher Integration
Dell’s outsourcing strategy
Mass Customization
Dell?Some Salient Points
Reduced Learning Curve for Online Organizations
Brand Building
Substantial Changes in the Environment
Interoperable Communications
Quality and Continuous Benchmarking
Long-Term Career Paths
Reduced Liability and Risk
Knowledge Store
Linguistic Barrier Is Greatly Lowered
Repetitive Tasks and Labor Costs?Software Agents
Automation?Software Agents
Online Payments
Operational Efficiency
E-Commerce Benefits
Electronic Data Interchange (EDI) Advantages
Advantages of Outsourcing Online to India

Business-to-Business Payment Systems Online
E-Commerce?I-Way Communications
Electronic Payment Systems
Payment Gateways
Electronic Commerce and EDI
EDI?Some Definitions
EDI Concept
EDI?The Future
Clearing Automation through Truncation and Electronic Check Presentment (TECP)
Electronic Funds Transfer (EFT) Process
Financial Instruments
Tech?Electronic Token
E-Cash
E-Checks Working Mechanism
Smart Card
Example?EDI Usage by Sears Roebuck Organization

SLOWDOWN AND OUTSOURCING

The Slowdown Scenario
Economic Turmoil
Indices Nosedive Worldwide?Growth Forecasts Downgraded
Forecasts Downgraded in India
Economic Situation in the United Kingdom during Slowdown
Budget Squeeze and IT Spend Declines
Example?Microsoft CEO’s View
Example?Nortel’s Bankruptcy
Example?Satyam Saga?Credibility Loss
Examples?Frills Cost Cutting in the IT and BPO Sector
Moody’s Estimates on Outsourcing to India
India and Other Countries as the Outsourcing Destination

Business Repositioning in Slowdown
Business Repositioning?Slowdown?CEOs Speak at Harvard Meet on Cause and Measures
Business Repositioning?IT Spend and Budget Slash during Slowdown
Business Opportunities during Economic Slowdown
Business Repositioning Due to Recession?General Strategies
Business Repositioning?High Exposure to Financial Services Sector
Outsourcing
Example?Business Strategy of Infosys
Business Deals Contracting?Short- and Long-Term
Example?Infosys and Wipro Shortand Long-Term Contracts Ratio
Example?Airtel?IBM Long-Term Contract
Business Repositioning through Regional Shifts and Strategy
Strategy?Risk Mitigation through Geographical Spread
Mergers and Acquisitions (M & A)
M & A Examples
Governments?Support and Control Measures
Government of India Support and Policies
Examples of Organizations That Managed the Slowdown Successfully

Slowdown?Hiring, Layoffs, and Attrition
Attrition
Layoffs during Slowdown
Indian Reverse Brain Drain
Economy and People’s Health
Personnel Retention
Example?Hiring by RBS of Lehman
India?Back to Hiring after the Economic Recovery

OUTSOURCING?FUTURE AND MISCELLANEOUS

Intellectual Property and Data Security
Intellectual Property (IP)
Security
Malicious Codes and Protection Methods
Security?Risks in E-Commerce
Network Security
Secure Messaging over Networks
Protection Mechanisms and Practices against Hacking and Security Risks
Encryption and Cryptography
Digital Signatures
Firewall?Infrastructure Protection

Reflections for the Future
History Revisited
The Generations
Reflections on the Future of Outsourcing
The India and China Axis
The Indian Equation
Misc. Outsourcing Countries
Trends
Outsourcing Highlights
Automation, Technology, and Outsourcing
Impact on Transportation
Examples of Future Business Forays of Outsourcing
Miscellaneous Examples of the Near Future of Outsourcing
The Bow and Final Words

Bibliography
Appendix: Enabling Infrastructure and Components