IT OUTSOURCING

PRAGYA NIGAM(2014200)
PRAKASH CHANDRASEKAR(2014201)
PRATEEK SHREEMAL(2014202)
PUSHPENDER PARASHAR(2014211)

Roadmap
What is IT outsourcing?
Why companies outsource their IT
Department?
Who are the major players?
How a typical IT outsourcing happens?
Roles of Stakeholders
How technology helps IT Outsourcing?
Rewards and Risks
Trends in IT outsourcing

What is IT outsourcing?
IT Outsourcingis the practice
ofsubcontracting responsibilityfor all or part
of an IT function to a third-party service
provider that manages the work.
Businesses use IT outsourcing for functions
ranging from infrastructure to software
development, maintenance and support.

Why companies outsource?

Reduce and control operating costs
Improve company focus
Gain access to world class capabilities
Free internal resources for other purposes
A function is time consuming and difficult
to manage or is out of control
Insufficient resources are available
internally
Share risks with a partner company
Make capital funds available

Reasons for outsourcing

Major players

India and China

The typical destinations of overseas IT outsourcing are India
and Philippines for the American and European companies
China and Vietnam are preferred by Japanese companies.
Major IT outsourcing companies in India are TCS, Infosys
and WIPRO.
Latin America
Countries like United States and Canada usually
seekNearshore Outsourcingin Latin American countries
likeMexico,Costa Rica,Panama, because of a closer
cultural match and time zone.
Companies outsourcing are cbre , American express , csc
etc.
Eastern Europe
In recent years Eastern Europe has also become a common
ITO destination.
ITO to Eastern Europe allows Western European and North
American companies toNear shore , Remote In-source, and

How IT Outsourcing happens?

What is Outsourced?

Roles of Stakeholders

Role of Technology in IT Outsourcing

Web Conferencing
VOIP
Virtual Private Network(VPN)
Cloud computing,business analytics
software, social media platforms
On contrary,sometimes Clients want older
and trusted technology to be followed Eg:
Mainframe Computers

Rewards
Focuses on Core Activities
Efficient
Reduced Overhead
Control over Operations
Staffing Flexibility
Risk Management

Risks Involved
Loss Of Managerial Control
Hidden Costs
Threat
to
Security
Confidentiality
Quality Problems
Bad Publicity and Ill-Will
Lack of customer focus

and

Future Trends
Everything-as-a-service
Emergence of automated selfservice platforms
Co-creation
Crowdsourcing
Outcome-based Pricing models
Outsourcing will overcome all
emotional barriers

Thank you!!!