This document discusses the benefits of outsourcing for businesses. It defines outsourcing as contracting an independent company to perform certain business tasks or activities. The presentation outlines factors to consider when deciding what to outsource, such as focusing on core competencies and tasks that provide competitive advantages. It also discusses how to select qualified contractors and ensure quality control. The pros of outsourcing include lower costs, access to specialized skills, and improved time-to-market. Potential cons include security risks, quality issues, and over-reliance on external vendors. In conclusion, the outsourcing industry is evolving to provide more value to customers through multi-vendor management strategies.

1. BUILDING A BETTER BUSINESS WITH
OUTSOURCING
PRESENTORS
NITESH KHATIWADA
ROSHAN PANT
SONI SAHANI
ADITYA KUMAR JHA
SANGITA LAMA
Presented to
Dr. Dhruba Lal Pandey
Nepal Commerce Campus
Minbhawan; Kathmandu
Nancy Mann Jackson
Growth Strategy, Entrepreneu
2015

2. PRESENTATION OVERVIEW
(OBJECTIVES OF THE ARTICLE ANALYZED)
o INTRODUCTION
o VARIABLES DISCUSSED
o WHAT ARE OUTSOURCED?
o DECIDING WHETHER TO OUTSOURCE?
o PROS AND CONS WITH OUTSOURCING?
o FINDINGS
o CONCLUSION

3. Outsourcing
What is Outsourcing?
• Outsourcing is a strategic decision to give a task or
activity to an independent contractor who determines
how best to do the task or activity.
• The firm and the independent contractor become
partners and may establish a long-term relationship.
• Examples of outsourced activities: IT, HR, Legal
services, Manufacturing, R and D.
• Note:not just manufacturing but many more are
outsourced today

4. Sourcing Decisions
• Single sourcing:
Choosing a single supplier
• Multiple sourcing:
Choosing several qualified suppliers
• Cross sourcing
A sourcing strategy in which the company uses a single supplier for a certain
part or service in one area of business, and another supplier with the same
capabilities for the similar part or service in another area of business.

5. Coming to the Article
• Most entrepreneur despite having potentiality fails sometime
for many reasons
• One of them is that they can’t devote time in all aspects of
organizational work
• So the trend of outsourcing has increased
• Workload are being shifted and managers can focus on core
task of business
• Important aspect is “what is to be outsourced” and “when to
outsource?”
• Fruitful result are achieved on matching between what the
business wants and what the provider specialize in

6. VARIABLES DISCUSSED
• Locus of Specialization (What to outsource?)
• When to outsource?
• Finding the right contractors
• Control over Work Performed (How to make
Contractors work?)
• Costs of Activity (How to count the cost?)
• Quality of Work (Challenges of Outsourcing)
• Reaping the Benefits

7. When to Outsource
• Right time differs as per business
• New projects
• Employees can’t handle day-to-day
business
• Further growth of business

8. Deciding Whether to outsource?
(OUTSOURCING CONSIDERATION)
• These days any task can be
outsourced
• Sometimes there are things you
don’t want to do but they are
important for your core business
• Don’t outsource that you don’t
want to do it

9. • Come to a decision
– What is core to the business and the
future of business?
– What can bring competitive advantage?
• Decide what to outsource
– (MAY BE)Highly skilled or executive,
expertise
– Highly repetitive tasks
– Specialized knowledge
Deciding Whether to outsource?
(OUTSOURCING CONSIDERATION)

10. Deciding Whether to outsource?
Contd……………………
• Find the right contractors
– Reliable outsource provider
– Your own network
– Online networks
– Placing ads
– Request for proposal
– Professional association or trade group
– Virtual market places

11. Deciding Whether to outsource?
Contd……………………
• Choose a partner(contractors)
• Make a match between what the
business wants and what the provider
specialize in
• Use incentive to motivate the
outsourcer to focus on what is most
important to you
• Lay out requirement and expectations
in the beginning

12. Pros and cons With Outsourcing
PROS
• Lower labor costs
• Low investment risk
• On - demand talent: product development
and management skills available if not
found in-house
• Time-to-market improvement: Products can
be launched closer to the point of
consumption
• Introduction of new and legacy products in
new markets is more efficient, because of
local familiarity with the market.

14. Pros and Cons With Outsourcing
CONS
 Potential security problems
 Identifying qualified and reliable suppliers
 Disruption of supplies
 Low product quality
 Difficulty in protecting confidentiality
 Provider may not understand business environment
 Too dependent on service provider

15. Source: http://www.statista.com/topics/2257/business-process-
outsourcing-industry-worldwide/

16. Findings
Source:

17. Finding
Source:

18. CONCLUSION
• Vendor’s service offering are evolving
• Demand for more value by customer
to vendors
• More concentration on multi-vendors
management
• Will be influenced by Global Economic
Condition
• Continued growth in the industry

19. Thank You!