Offshore Outsourcing

TABLE OF CONTENTS

CHAPTER 1: THE PROBLEM DEFINED …………..…………………………….. 6

Background Statement ..………………………………………….……….... 6

Purpose of the Study..………………………………………………………...8

Research Questions ………………………………………………………….9

Definition of Terms ……………………………………………………………9

Limitations of Study ……………………………………………………….....10

CHAPTER 2: LITERATURE REVIEW…………………………………………..….11

Introduction …………………………………………………………….…..…11

Why India? ……………………………………………………………………14

Identification of Functions to Outsource …………………………………..14

Economic Impact …………………………………………………………….18

Advantages and Disadvantages ………………………..………………….19

Current Off-shoring Political Climate ………………………..………...…..20

CHAPTER 3: METHODOLOGY ………………………………………………..… 23

Data Collection Method .………………………………………….…….…. 23

Data Analysis Method ..……………………………………………..………24

CHAPTER 4: DATA ANALYSIS ……………………………………………..…… 25

Introduction………………………………………………………………..…25

Opportunity Identification Process ………………………………….…… 27

Financial Impact ………………………………………………………….…39

CHAPTER 5: SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS …42

Summary …………………………………………………………………….42

Conclusions …………………………………………………………………44

Recommendations …………………………………………………………45

REFERENCES ……………………………………………………………………..47

LIST OF FIGURES

Figure Page

1 Guidelines For Answering Filter Questions ……………….. 28

2 Opportunity Identification Decision Tree …………………... 29

LIST OF TABLES

Table

1 Outsource/Off-shore Filter 1 Questions and Ranking ..…. 30

2 Outsource/Off-shore Filter 2 Questions and Ranking .….. 31

3 Outsource/Off-shore Other Questions and Ranking ..…... 31

4 Summary Good/Strong Candidate Composite Score ..…. 38

5 Annual Financial Impact Per Functional Transfer Equivalent (FTE) and Per 100 FTE’s ……………….….… 39

CHAPTER 1: DEFINITION OF PROBLEM

Background Statement

The Business Process Outsourcing (BPO) market is relatively young and growing at a rapid pace. Forrester Research estimates that 3.3 million U.S. jobs and $136 billion in wages could be moved to