Outsourcing to India (eBook)

Mark Kobayashi-Hillary is the Global Research Director of Commonwealth Business Council Technologies, based in London. He is a founding member of the British Computer Society Working Party on Offshore Outsourcing and is researching the subject of business process outsourcing. Mark is a Chartered Information Systems Professional and Master of Business Administration, he has worked at a senior level for several leading banking and technology groups and has been involved in managing outsourced relationships in the UK, Singapore and India.   

Contents 15
Chapter 1: First Impressions 20
Personal Impressions 22
Chapter Checklist 25
Chapter 2: Indian History and Religion 26
Introduction 26
The Nature of Indian Religions 27
Caste 29
Epic History 30
British Raj 31
Clive and the British East India Company 31
The Mutiny of 1857 33
Gandhi and the Quest for Independence 34
The Early Years 34
Amritsar and Non-Cooperation 35
The Salt March 36
The Endgame 37
Nehru and Partition 38
After the British 39
Summary 40
Chapter Checklist 41
Chapter 3: Contemporary Indian Politics 43
Attitude to Government 44
The Politics of Outsourcing 46
Other Current Issues 49
Convertibility of the Rupee 49
Education 50
Environment 50
Health 51
Gender Inequality 52
Possible Future Directions 53
Summary 55
Chapter Checklist 55
Chapter 4: Culture and Food 57
Bollywood 57
Music and Literature 58
Indian Food 60
Mumbai 60
Delhi 61
Chennai 61
Hyderabad 62
Bangalore 62
Chapter Checklist 63
Chapter 5: Domestic Travel 64
Air Travel 64
Indian Airlines 66
Jet Airways 66
Air Sahara 67
The Budget Alternative 67
Rail 69
Roads 70
Summary 71
Chapter Checklist 71
Chapter 6: Security Concerns 73
Natural Disaster 74
Pakistan and Kashmir 75
Nuclear Arms 77
Al-Qaeda 78
Nationalism and Border Disputes 79
Risk Mitigation 80
Summary 81
Chapter Checklist 81
Chapter 7: The Outsourcing Drivers 83
Government Policy 85
Globalisation and the Knowledge Economy 87
Technology 89
Corporate Strategy 91
Summary 94
Chapter Checklist 94
Chapter 8: The Major Industry Players in India 96
Infosys 97
Corporate History 97
Leader Profile: Narayana NR Murthy 98
Major Clients or Projects 98
Comment 99
Wipro 99
Corporate History 99
Leader Profile: Azim Premji 100
Major Clients or Projects 101
Comment 101
Tata Consultancy Services (TCS) 101
Corporate History 101
Leader Profile: S. Ramadorai 102
Major Clients or Projects 103
Comment 103
NUT Technologies 104
Corporate History 104
Leader Profile: Rajendra S. Pawar 105
Major Clients or Projects 105
Comment 105
The Foreign Invaders 106
The BPO Market 107
Captive Arms of Global Corporates 108
Indian Start-Ups 108
Indian IT Service Companies 108
Global BPO Majors 108
Broad Based Global Service Companies 108
BPO Summary 108
Progeon 109
Corporate History 109
Leader Profile: Akshaya Bhargava 109
Major Clients or Projects 109
Wipro Spectramind 110
Corporate History 110
Leader Profile: Raman Roy 111
Major Clients or Projects 111
Comment 112
ICICIoneSource 112
Corporate History 112
Leader Profile: Ananda Mukerji 113
Major Clients or Projects 113
Comment 113
Daksh 114
Corporate History 114
Leader Profile: Sanjeev Aggarwal 114
Major Clients or Projects 115
Comment 115
Evalueserve 115
Corporate History 115
Leader Profile: Marc Vollenweider and Alok Aggarwal 115
Major Clients or Projects 116
Comment 116
Summary 117
Chapter Checklist 118
Chapter 9: Ownership Models and Partnership 120
Direct Investment 120
Mapping the Services 124
Initial Supplier Contact 125
Partnership 126
Market Trends in Outsourcing Models 127
Summary 128
Chapter Checklist 129
Chapter 10: The Major Outsourcing Locations 130
North and West India 130
South India 131
Delhi 131
Mumbai 132
Pune 133
Kolkata 133
Bangalore 134
Hyderabad 136
Chennai 137
Chapter Checklist 138
Chapter 11: Industry Associations and Research Bodies 139
Outsourcing Research and Trade Associations 139
National Association of Software and Service Companies 139
National Outsourcing Association (and EOA) 140
information Technology Business Trade Associations 140
Government and NGO Research 141
Ministry of Communications and Information Technology 141
Indian National Census 141
General Statistics 142
Other Useful Government-related Sites 142
Corporate Research 143
Commonwealth Business Council Technologies 143
Evalueserve 144
McKinsey & Co.
Gartner 144
Forrester 144
Wharton School - University of Pennsylvania 145
Media 145
Internet 146
Bpolndia.org 146
FirmBuilder 146
Global Sourcing Now 146
Outsourcing Center 147
Silicon.com 147
Books 147
Chapter Checklist 150
Chapter 12: Management Checklist Introduction 152
Chapter 13: Outsourcing Objectives 154
Deriving Objectives 156
Common Objectives 157
Focus on Core Competence 158
Quality of Service 158
Recruiting the Best 158
Better Technology 159
Wider Skills Pool 159
Agility 159
Employee Benefits 159
Implications of Measuring Objectives 160
No Objectives, No Future? 161
Chapter Checklist 162
Chapter 14: Destination India 164
Framework for Comparison 165
Location Attractiveness 166
Telecommunications 166
Power 166
Quality 167
Transport 167
People Attractiveness 168
Education 168
Cost 169
Gartner Research Country Ratings 170
The Competition 171
Summary 172
Chapter Checklist 174
Chapter 15: Outsourcing Flavours 175
Process Requirements 175
Tactical Outsourcing 176
Strategic Outsourcing 177
Transformational Outsourcing 178
Business Process Outsourcing 179
Variant Services 181
Managed Offshore Facilities 181
Distributed Consulting 182
Other Variations 182
Selective Sourcing 182
InSourcing 183
Transitional Outsourcing 183
Chapter Checklist 183
Chapter 16: Success Criteria 184
Everything in the Right Place 185
Design Metrics for Results 186
Design KPIs for the Future 187
Relationship Building 187
Benchmark the Service 188
Summary 189
Chapter Checklist 190
Chapter 17: Vendor Selection 191
The Critical Path to Finding the Right Vendor 192
Request for Information (RFI) 193
Site Visit 194
Reference Visit 195
Request for Proposal (RFP) 196
Due Diligence 197
Negotiation 197
Contract Award 198
Common Mistakes 198
Chapter Checklist 201
Chapter 18: Legal Contract Arrangement 203
Key Considerations 204
Indian Location 204
Pre-Contract Steps 204
Documentation 205
Pitfalls 206
Price 208
Exit Strategy 210
Cross-Border Information Transfer 212
Data Protection 212
Human Resources 213
Tax 214
Summary 215
Chapter Checklist 217
Chapter 19: Quality and the Service Level Agreement 219
Quality Methodologies 220
International Organisation for Standardisation 221
Capability Maturity Model 222
Six Sigma and TQM 223
BPO 224
Service Level Agreement 225
Definition 225
Realism on Both Sides 226
No Jargon 227
Define the Scope 228
Define the Key Performance Indicators 228
Rebates/Bonus/Penalties 229
Termination 230
Reporting 230
Summary 231
Chapter Checklist 233
Chapter 20: Migration and Knowledge Transfer 234
Offshore Transition 234
Feasibility Analysis 235
Project Planning and Milestone Tracking 237
Project Tracking and Reporting 237
Post Migration Review 238
Knowledge Transfer 238
Recruitment 239
Retention Methods 240
Transition Timing 240
Travel Arrangements 241
Domain Knowledge 241
Tracking Individual Progress 241
Summary 242
Chapter Checklist 242
Chapter 21: Culture and Communication 244
Cultural Awareness 245
Leadership 247
Language and Meeting Behaviour 248
How to Empathise with Indians 249
Cross-Cultural Communication 250
Achieving Cultural Comfort 251
Chapter Checkl 254
Chapter 22: Adapt the Organisation 255
Outsourcing as Corporate Strategy 256
Retaining Your Edge 257
If It Is Broke, Then Do Fix It 258
Risk and Potential Issues 259
Vendor Management 259
Remembering the Strategy 260
Talent Management 260
Understand Your Stakeholders 260
Managing Expectations 261
Chapter Checklist 262
Chapter 23: Employee Transition and Exit Management 264
Understand the Fear 265
Communication 267
Plan the Transition 270
Chapter Checklist 271
Chapter 24: The Risk Factors 273
Search Costs and Outsourcing Style 274
Metrics and Key Performance Indicators 276
Change 276
Culture 277
Media and Public Relations 278
Data Protection 282
Infrastructure 283
Summary 284
Chapter Checklist 285
Chapter 25: Future Potential 286
Force Field Methodology 286
Driving Forces 287
Restraining Forces 290
India Developments 292
Cost Saving Driver 294
Small and Medium-Sized Enterprises 294
Transaction Focus 295
Chapter Checklist 295
Afterword 297
Political Map of India 303
References 304
Author Biography 324