Pan Pacific Symposium Conference Proceedings


OUTSOURCING AS A STRATEGIC TOOL

Author: Kewal K. Verma
Company: BCA International
Date Published: 1/25/2000   Conference: Pan Pacific Symposium


Abstract: Outsourcing is a strategic tool used by companies to improve their ability to concentrate on the core competencies, outsourcing non-core functions. Outsourcing is not contacting or fixing business processes. It is about creating value. It is about reengineering and being able to provide customers a greater value faster, at a lower cost and higher quality

Outsourcing industry has grown to about $150 Billion worldwide and is estimated to grow to $240 Billion (Dunn & Bradstreet) by the end of 1999 and about $630 Billion by the year 2003 (Dataquest). Outsourcing has grown in scope and complexity and it covers information technology, administration, customer service, finance, HR, real state, sales and marketing, distribution, transportation, health care and more. Key issues in outsourcing are the selection of an appropriate supplier partner and implementation of the business relationship. A large number of global fortune 500 companies have been outsourcing software development in India due to its strong infrastructure, investment friendly and free market oriented business environment, and supportive Government policies.

Key words: Outsourcing, strategic tool, competitive advantage, software, supplier selection, benchmarking, competitive analysis, core competencies, software industry in India.



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