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SEVICES: GOING GLOBAL?

SEVICES: GOING GLOBAL?. LE THI MY LINH BABAIU10198 TRAN THI THANH THUONG BABAWE10534. 11.3 SERVICE OUTSOURCING. BENEFITS AND DRAWBACKS. OUTLINE. A. TERMINOLOGY. SERVICE VS MANUFACTURING ACTIVITIES. SERVICE Huge room for growth The rate of increase

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SEVICES: GOING GLOBAL?

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  1. SEVICES: GOING GLOBAL? LE THI MY LINH BABAIU10198 TRAN THI THANH THUONG BABAWE10534

  2. 11.3SERVICE OUTSOURCING BENEFITS AND DRAWBACKS

  3. OUTLINE

  4. A. TERMINOLOGY

  5. SERVICE VS MANUFACTURING ACTIVITIES SERVICE • Huge room for growth • The rate of increase • Outsourcing service function in all companies • Higher skill level • More mobile

  6. B. BENEFITS DCs LDCs

  7. For DCs 1.Boost productivity • Reducing expenditures • Increasing quality of the service and delivery => Higher profit, more capital

  8. For DCs 2. Allow to restructure • Focusing on core activities • Reducing work load • Increasing productivity and value of the production

  9. For DCs 3. Increasing the competitiveness • more chances to enter the market => creating a new international division of labour in service production=> increasing competitiveness => improving quality of labor & products

  10. For LDCs 1.Jobs opportunity • Cheap labor cost in LDCs • More countries enter the market • More jobs created

  11. For LDCs 2. Higher skilled jobs : based on the characteristics of outsourcing 3. Infrastructure investment : DCs invest in LDCs 4. Cost saving : economy to scale

  12. Some pictures about outsourcing

  13. C. DRAWBACKS • For DCs • For LDCs

  14. For DCs 1. Job loss • Sharing overall labors • Abroad outsourcing => Need to have some policies

  15. For DCs 2. Loss of managerial control • Turning control among companies 3. Hidden costs • Additional charge not included in the contract 4. Threat to security and confidentiality 5. Quality problems -The outsourcing company will be motivated by profit

  16. For LDCs 1. Relocation of outsourced service activities • Always moving to more competitive LDCs 2. Negative impacts on culture and tradition

  17. D. APPLICATION • Outsourcing takes many forms • In Vietnam : - Famous for software outsourcing destination • Rank 20th in “excellent outsourcing destinations” • provides a great pool of skilled software developers => meet the demand

  18. Hoangnguyeninformatic • expends the outsourcing service in software, designing websites….: • Outsourcing at your company • Offshore project • Dedicated offshore software development center

  19. The service at Hoangnguyen : • Application development • Applications integration • Desktop management

  20. Main areas ( strength ) : informative technology in : • Financial and accouting • Trade • Government’s activities • Health service • And other kinds of management Partners : • Van Hien University • NhaTranginformative technology center • Solution limited company • ….

  21. SUMMARY DCs

  22. LDCs

  23. REFERENCES • http://tqasolution.com/dich-vu/out-sourcing.html • http://www.businessweek.com/magazine/content/06_05/b3969401.htm • http://www.outsourcing.org/ • http://www.computerworld.com/s/topic/72/Outsourcing

  24. THANK YOU FOR LISTENING

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