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This analysis explores the rise of multinational companies opening captive centers in India from early 2001 to 2008. It highlights the significant growth in research conducted by Indian captives, projecting a value increase from $800 million to $11 billion. The number of call center seats surged from 96,000 to 158,000 between 2003 and 2004. The study further investigates the offshoring landscape, revealing that almost half of the $17 billion in IT offshore revenue came from India, emphasizing the need for effective cost management and local leadership to maintain competitive advantage.
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Alternative Title Sales (Date: 2003) Multinational companies that opened captive centers in India since early 2001 230 Value of research conducted by Indian captives of multinationals in 2003-04 $800 million to $1 billion Value of research conducted by Indian captives of multinationals in 2008 (projected) $11 billion Call center seats 96,000 in 2003; 158,000 in 2004 Source: NASSCOM Strategic Review 2005 Evalueserve (2004) IT offshore revenue worldwide, April 2003-March 2004 $17 billion (almost half from India, almost onequarter from Ireland) (includes IT products shipped from Ireland) UN Conference on Trade and Development (2004) (as quoted on TurkishPress.com) percentage of world’s largest 1000 companies offshoring business process outsourcing 30 Value growth in offshore business process outsourcing worldwide (projected) $1.3 billion in 2002 to $24 billion in 2007 Perot CSC
Situation Analysis Source: UN (2004), Evalueserve (2004), Scholl World Investment Report (2003), McKinsey & Co. (2003)
GIS Should Offshore to India to Remain Market Leader Offshoring to India Will Substantially Lower Direct Costs Offshoring Requires Effective Management of Indirect Costs Offshoring Requires Local Leadership and Sound Execution
Costs Estimated by GIS (In Millions $) Offshore to India Cost Savings $168 Direct Cost Indirect Cost Leadership & Management Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.
NPV of Domestic Costs (In Millions $) Offshore to India Direct Cost Indirect Cost Leadership & Management Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.
Additional Costs and NPV of Offshoring(In Millions $) Offshore to India Direct Cost Indirect Cost Leadership & Management Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.
NPV Cost Comparison Domestic V.S Offshoring Offshore to India Direct Cost Indirect Cost Leadership & Management Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.
GIS Should Off-Shore to India to Remain Market Leader Offshoring to India Will Substantially Lower Direct Costs Offshoring Requires Effective Management of Indirect Costs Offshoring Requires Local Leadership and Sound Execution
GIS Total Quality Management Model Offshore to India Direct Cost Indirect Cost Leadership & Management
C-Chart of Errors Per Program Code Per Week Offshore to India Upper Control Limit = Direct Cost Indirect Cost Leadership & Management Lower Control Limit =
GIS Indian Service Design Offshore to India Direct Cost Indirect Cost Leadership & Management
GIS Should Off-Shore to India to Remain Market Leader Offshoring to India Will Substantially Lower Direct Costs Offshoring Requires Effective Management of Indirect Costs Offshoring Requires Local Leadership and Sound Execution
High Employee Morale and Public Relations Ensures Productivity Offshore to India Direct Cost Indirect Cost Leadership & Management
Quarterly Project Reviews Reduce Cost and Schedule Delays Offshore to India Direct Cost Indirect Cost Leadership & Management
Relationships Reduce Cost & Schedule Delays Offshore to India Direct Cost Indirect Cost Leadership & Management
Mitigate PoliticalInstability Within India Offshore to India Direct Cost Indirect Cost Leadership & Management
GIS Should Off-Shore to India to Remain Market Leader Offshoring to India Will Substantially Lower Direct Costs Offshoring Requires Effective Management of Indirect Costs Offshoring Requires Local Leadership and Sound Execution