Online assignment - Outsourcing

ONLINE
ASSIGNMENT
ON
‘OUTSOURCING’
Anwar S H
English
Ktct College Of Teacher
Education
kaduvayil, Kallambalam, tvm
anwarsh786@gmail.com
By

1
K.T.C.T COLLEGE OF TEACHER EDUCATION
THOTTAKKADU P.O, KALLAMBALAM, THIRUVANANTHAPURAM
B. Ed Course 2014-2015
SEMESTER 2
ONLINE ASSIGNMENT
EDU 10.2: Techno- Pedagogic Content Knowledge Analysis- English
Name of Trainee...Anwar S H.....................................................................
Reg.No.....16514369002...................Year......2014-2015.............................
Subject....English.........................................................................................
Certified bonafide record of......Anwar S H...................................................
Register No........16514369002...........for the year 2014-2015.
Examiner Principal Lecturer

2
OUTSOURCING
Online Assignment Submitted
To
Mrs. Manjusha S
Lecturer in English
For Course No. EDU 10. 2
Techno- Pedagogic Content Knowledge Analysis- English
During the Second Semester
of the B. Ed Course 2014-2015
By
Anwar S H
English
K.T.C.T College of Teacher Education
Thottakkadu p o, Kallambalam, tvm

3
INTRODUCTION
Outsourcing is any task, operation, job or process that could be performed by employees
within your company, but is instead contracted to a other party for a significant period of time.
Hiring a temporary employee while your secretary is on maternity leave is not outsourcing. In
addition, the functions that are performed by the other party can be performed on-site or off-site.
The most common model of outsourcing that is in the news today refers to jobs that are being sent
overseas to countries like India or China. This is more commonly called off shoring. Examples
include telephone call centres, tech-support and computer programming. It has been around as
long as work specialization has existed.
Outsourcing is an effective cost-saving strategy when used properly. It is sometimes more
affordable to purchase a good from companies with comparative advantages than it is to produce
the good internally. There a various kind of outsourcing in business field and Educational field.
The outsourcing related to business can be termed as Business process outsourcing (BPO) and the
outsourcing related to Education can be termed as Knowledge Process Outsourcing (KPO). Both
are widely using in the national and international current scenario.
It is also the practice of handing over control of public services to for-profit corporations.
Outsourcing can also be viewed as any assistance from an intermediary that is more capable of or
familiar with certain practices than us. It is just a way of seeking for assistance. It includes both
foreign and domestic contracting and
sometimes includes offshoring (relocating a business function to another country). Financial

4
savings from lower international labour rates can provide a major motivation for outsourcing or
offshoring.
This is an assignment which detailely describes about the process of outsourcing and how
it effectively make the business and knowledge opportunities more ease and wider.
OUTSOURCING
The concept "outsourcing" came from American Glossary 'outside resourcing' and it dates
back to at least 1981. Outsourcing sometimes involves transferring employees and assets from
one firm to another, but not always. Outsourcing is also the practice of handing over control
of public services to for-profit corporations. Two organizations may enter into a contractual
agreement involving an exchange of services and payments. Outsourcing is said to help firms to
perform well in their core competencies and mitigate shortage of skill or expertise in the areas
where they want to outsource.
In the early 21st century, businesses increasingly outsourced to suppliers outside their own
country, sometimes referred to as offshoring or offshore outsourcing. Several related terms have
emerged to refer to various aspects of the complex relationship between
economic organizations or networks, such as nearshoring, crowdsourcing, multisourcing and
strategic outsourcing.
REASONS FOR OUTSOURCING
In the early 21st century, groups of people using online technologies increased and they
began to use outsourcing as a way to build a viable service delivery business that can be run from
virtually anywhere in the world. The preferential contract rates that can be obtained by
temporarily employing experts in specific areas to deliver elements of a project purely online
means that there is a growing number of small businesses that operate entirely online using
offshore contractors to deliver the work before repackaging it to deliver to the end user. One
common area where this business model thrives is in providing website creation, analysis and
marketing services. All elements can be done remotely and delivered digitally, and service
providers can leverage the scale and economy of outsourcing to deliver high-value services at
reduced end-customer prices.
The main reasons behind outsourcing can be summarized as the following :
 Reducing of the certain domestic costs such as high taxes, high energy costs,
excessive government regulation/mandates, production and/or labor costs.
 Rapid growth of technology and opportunities for virtual business

5
 Lack of available resources locally.
 Benefits of digital outsourcing such as avoiding the space for office setup, high
salary in other countries rather than the home country, facilities to work for other
countries from the home itself.
 Internationalization of labor markets due to Industrialization and liberalization
 Global inequality of available human resources and mechanical facilities.
 Outsourcing emerged with a new wave of globalization marked by high volumes of
trade and capital flows. The increased movement of capital and goods contrasted
starkly with the barriers and protectionism prevalent throughout the World Wars
and the Great Depression during the Interwar Years.
 The rise in industrial efficiency which characterized development in developed
countries has occurred as a result of labor-saving technological improvements.

6
CONCEPT OF BUSINESS PROCESS OUTSOURCING (BPO)
Business process outsourcing (BPO) can be defined as the act of giving a other party
responsibility of performing what would otherwise be an internal system or service. For instance,
an insurance company might outsource their claims processing program or a bank might outsource
their loan processing system. Other common examples of BPO are call centres and payroll
outsourcing. Typically, companies that are looking at business process outsourcing are hoping to
achieve cost savings by handing over the work to a third-party that can take advantage of
economies of scale by doing the same work for many companies. Or perhaps the cost savings can
be achieved because labour costs are lower due to different costs of living in different countries.
BPO is often divided into two categories: back office outsourcing which includes internal
business functions such as billing or purchasing, and front office outsourcing which includes
customer-related services such as marketing or technical support. BPO. It provides wide range of
tactical, powerful, flexible tools which in turn helps in achieving the business objectives in a cost
effective and efficient manner. To put it in simple words a BPO (business process outsourcing) is
a process in which a company delegates some of its business processes to a other party on
payment of some fee by passing over total control of process to them. This in turn cuts the
operational costs considerably resulting into huge profits.
BPO’s are inclined to provide better customer satisfaction leading to customer retention,
increased productivity, deal with competition effectively and in turn increase profitability. There
are many kinds of work that can be outsourced to BPO’s for e.g. Call/Help Centers, Medical
Transcription, Billing, Payroll Processing, Data Entry, IT Services, Human Resources (HR)
functions, etc.
Due to the proximity of IT industry to BPO, this industry is also termed as ITES
(Information Technology Enabled Service). But, BPO doesn’t necessarily only provide IT
Services. BPO will be time and again, simply defined as, taking over non-critical business
processes or a function of those processes, as well as the people and systems associated with
them, in order to achieve service level improvements and cost savings. It is useful in leveraging
the process towards driven efficiency and achieving responsiveness, branding, customer
relationships and organizational excellence.

7
ADVANTAGES OF BPO `
An important aspect of business process outsourcing is its ability to free corporate
executives from some of their day-to-day process management responsibilities. Once a process is
successfully outsourced, they get more time to, explore new revenue generation activities,
accelerate other projects, and focus on their customers.
By outsourcing their back office operations to third world countries, companies
have the following advantages:
1. Achieve cost reductions – This is made possible through process improvements, reengineering,
and use of technologies that reduce and bring administrative and other costs under control.
2. Key in on company’s main business – With the day-to-day back office operations taken care
of, the management is free to devote more time to building the company’s core businesses
3. Obtain outside expertise – Rather than recruiting and training personnel, BPO ensures that
domain experts from another company provide the needed guidance and skills.
4. Meet constantly changing customer demands – Many BPO vendors provide the management
with flexible and scalable services to meet the customers’ changing requirements, and to support
company acquisitions, consolidations, and joint ventures.
5. Achieving revenue increases – By outsourcing non-core processes, companies can focus on
increasing their sales and market share, develop new products, expand into new markets, and
enhance customer service and satisfactions.
CONCEPT OF KNOWLEDGE PROCESS OUTSOURCING (KPO)
KPO is a new phenomenon that is picking pace in India. It is “Knowledge Process
Outsourcing”. In simple words it is the upward shift of BPO in the value chain. Old BPO
companies that used to provide basic backend or customer care support are moving up this value
chain. “Unlike conventional BPO where the focus is on process expertise, in KPO, the focus is on
knowledge expertise.” KPO involves off shoring of knowledge intensive business processes that
require specialized domain expertise, thus delivering high value to organizations by providing
business expertise rather than just process expertise.
It is being claimed that KPO is one step extension of Business Processing Outsourcing
(BPO). BPO Industry is shaping into Knowledge Process Outsourcing because of its favourable
advantageous and future scope. But, let us not treat it only a ‘B’ replaced by a ‘K’. In fact,
Knowledge process can be defined as high added value processes chain where the achievement of
objectives is highly dependent on the skills, domain knowledge and experience of the people
carrying out the activity. And when this activity gets outsourced a new business activity emerges,
which is generally known as Knowledge Process Outsourcing. KPO is involved in services like
valuation and investment research, patent filing, legal and insurance etc. KPO can simply be
explained as an off-shoring of knowledge concentrated business processes that needs specialized
domain oriented expertise. Knowledge process outsourcing (KPO) is the allocation of relatively
high level tasks to an outside organization or a different group (possibly in a different geographic
location) within the same organization. Most low-level BPO jobs provide support for an

8
organization’s non core competencies and entry-level prerequisites are simply a command of
English and basic computer skills. Knowledge process outsourcing jobs, in comparison, are
typically integrated with an organization’s core competencies. The jobs involve more complex
tasks and may require an advanced degree and/or certification. Examples of KPO include
accounting, market and legal research, Web design and content creation. KPO and BPO are often
conducted through off-shore outsourcing as corporations seeking the most value for the least
money source projects to countries where wages are lower. Because KPO jobs may bring in more
money to the economy as BPO, countries such as India are actively promoting development of
that industry.
ADVANTAGES OF KPO
1. Accelerate Reengineering Benefits: Reengineering aims for drastic improvements in critical
measures of performance such as cost, service, quality and speed. But the need to increase
efficiency comes into direct conflict with the need to invest in core business. As non-core internal
functions are continually put on the back seat, systems become less productive and less efficient.
Therefore, by outsourcing a non-core function to a competent provider, the organization can
realize the benefits of reengineering as an outsourcing benefit.

9
2. Access to Top Class Capabilities: Good and competent providers make extensive investments
in technology, people, and methodologies. They acquire expertise by working with many clients
facing similar challenges. This combination of specialization and expertise ensures
the customers a competitive advantage and helps them avoid the cost of acquiring technology and
training.
3. Optimal use of resources: Every organization has limitations to the resources available to it.
Outsourcing allows an organization to redirect its resources, mostly human resources, from non
core activities toward activities which serve the core need of customer. The organizations can
redirect these human assets or at least the staff slots they represent for greater value adding
activities. People whose energies are currently focused on internal activities can now be focused
externally — on the customer.
4. Solution to difficult problems: Outsourcing is certainly one option for addressing the problem
of managing difficult activities requiring core technical skills. It is essential to remember that
outsourcing doesn’t imply abdication of management responsibility nor does it work well as a
solution to solve critical and suddenly erupting trouble of a company. However, a company can
outsource only those difficult problems which it understands properly because if the organization
doesn’t understand its own requirements, it won’t be able to communicate them to an outside
provider.
5. Focus on main business: Outsourcing allows a company to focus on its core business by
having operational non core functions assumed by an outside expert. Freed from devoting energy
to these non core areas, the company can focus its resources on meeting its customers’ needs.
6. Best use of financial resources: There is large amount of competition within most
organizations for capital funds. The senior management is always in a fix to decide where to
invest the capital funds. It is often difficult to justify non-core capital investments when core areas
directly related to producing a product or providing a service compete for the same money. In this
context outsourcing can reduce the need to invest capital funds in non-core business
functions .Outsourcing can also improve certain financial measurements of the company by
eliminating the need to show return on equity from capital investments in non core areas.
7. Cost reduction: Companies which attempt to do everything themselves generally incur higher
research, development, marketing and deployment expenses, and all of these are passed on to the
customer. The outsourcing can help a company to reduce its costs as an outside provider’s lower
cost structure, normally as a result of a greater economy of scale or other advantage based on
specialization, reduces a company’s operating costs and increases its competitive advantage.
9. Minimum Risk: Tremendous risks are associated with the investments made by the
organizations. Markets, competition, financial conditions, Government Regulations and
Technologies all change quickly. Further, it is very risky to keep up with these changes, especially
those in which the next generation requires a significant investment .However, in outsourcing
providers make investments on behalf of many clients, not just one and shared investment spreads
risk, and significantly reduces the risk born by a single company.
DIFFERENCE BETWEEN KPO AND BPO
Knowledge Processing Outsourcing industry is entirely different from Business processing
outsourcing industry. KPO require expertise having domain knowledge. They are highly skilled
and business experts as they handle more dexterous work which requires experience where as

10
BPO industry is more about size, quantity and competence. The major difference is that BPO
insist for labour and requires less skilled employees while KPO requires highly knowledgable
employees in the area that is outsourced like lawyers, doctors, MBA and skilled engineers .The
difference between KPO and BPO can also be analysed on the bases of cost competitiveness, the
salary of KPO employee is much higher than offered to the BPO employee as the people working
for KPO are highly qualified such as Engineer, Doctor, CA, Lawyer etc. BPO provides services
like customer care, technical support through voice processes, tele-marketing, sales, etc. whereas
KPO provides in-depth knowledge, expertise and analysis on complex areas like Legal Services,
Business &Market Research, etc. BPO requires application, understanding of business and
analytical bent of mind. Employees in BPO are not- so- qualified as it focuses on communication
skills whereas KPO involves skill and expertise of knowledge workers with excellent educational
background.
KPO VERSES BPO
The demarcation line between KPO and BPO is very thin. Generally, KPO and BPO are
closely related to each other. BPO industry handles the problems in a pre-defined and pre-processed
way. Business process outsourcing (BPO) is a broad term which refers to outsourcing in all fields.
A BPO differentiates itself by either putting in new technology or applying existing technology in
a new way to improve a process.
Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business
processes to an external provider that in turn owns, administers and manages the selected process
based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one
of the fastest growing segments of the Information Technology Enabled Services (ITES) industry.
MAIN TRANSACTION PROCESSING SERVICES BY BPO
Mainly transaction processing is the area of concern in BPOs. The transaction processing
in BPO may include
 Customer Support Services
 Technical Support Services
 Telemarketing Services
 Employee IT Help-desk Services
 Insurance Processing
 Data Entry Services / Data Processing Services
 Data Conversion Services
 Scanning, OCR with Editing & Indexing Services
 Book Keeping and Accounting Services
 Form Processing Services:

11
 Internet / Online / Web Research
 Banking, Financial Services & Insurance
 Retail, CPG & Manufacturing
 Healthcare Life Sciences & Services
 Global Media & Telecom
 Energy, Natural Resources & Utilities
 Travel, Transportation & Hospitality
 Sales & Marketing
 Sourcing & Procurement
 Finance & Accounting
 Human Resources
 Knowledge Services
 Customer Relationship Management
 Provident Fund and Gratuity related services
HIGH-END SERVICES PROVIDED BY KPO
KPO helps in transfer of domain specific expertise of higher level rather than process
expertise. The high-end services, which Indian KPO sector provide, are:
 Intellectual Property Investigation
 Patent Writing
 Patent Drawing

12
 Invention disclosure drafting
 IP Overlap Analysis
 Patent Claims Mapping
 Patent Proofreading
 Claim Analysis
 Patent File History
 Legal Research Services
 Legal document review
 Litigation Support
 Legal Coding
 Legal Proofreading
 Scoping
 Legal Document Management
 Legal Publishing
 Data Research & Data Analysis Services
 Online Research / Secondary Research
 Strategic Market research
 Equity Research
 Fixed Income Research
 Quantitative Analytics

13
 Business Research and Analytics
 Financial Analytics
 Market Research
 Data Processing and Analysis
 Web Survey Analysis
 Marketing Questionnaire Design
 Media Research
 Online Research
 Multivariate & Bivariate Analysis
 Quantitative Market Research Services
 Business Market Research
 International Market Research
 Market Research Surveys
 Financial Market Research
 Applied Investment Research
 Financial Analysis
 Financial Accounting
 Business Research
 Investments Research
 Credit Research
 Equity Research
 Financial Analysis and Financial Statements
 Tax Preparation
 Financial Data Entry & Conversion
 Competitive Business Analysis
 Syndicated Research
 Trend and Competitor Analysis
 Company Profiling
 Database Development Services
 Data Enhancement
 Database Hosting
 Clinical Data Management
 Database Publishing
 Reporting and Business Dashboards
 Data Mining
 Medical Writing Services
 Medical Writing

14
 Medical Editing
 Medical Content Enrichment
 Attribute Extraction
 Medical content classification
 Content Development Services
 Technical Writing
 Web Content writing
 Fiction Writing
 Proofreading Services
 Editing Services
 Animation And Simulation Technology
 Forensic Animation
 Simulation
 2D and 3D Animation
 Virtual Reality Systems
ADVANTAGES AND DISADVANTAGES OF OUTSOURCING
Outsourcing most commonly known as offshoring has pros and cons to it. Most of the time,
the advantages of outsourcing overshadow the disadvantages of outsourcing.
THE ADVANTAGES OF OUTSOURCING
 Swiftness and Expertise: Most of the times tasks are outsourced to vendors who specialize in
their field. The outsourced vendors also have specific equipment and technical expertise, most of
the times better than the ones at the outsourcing organization. Effectively the tasks can be
completed faster and with better quality output
 Concentrating on core process rather than the supporting ones: Outsourcing the supporting
processes gives the organization more time to strengthen their core business process
 Risk-sharing: one of the most crucial factors determining the outcome of a campaign is risk-
analysis. Outsourcing certain components of your business process helps the organization to shift
certain responsibilities to the outsourced vendor. Since the outsourced vendor is a specialist, they
plan your risk-mitigating factors better
 Reduced Operational and Recruitment costs: Outsourcing eludes the need to hire individuals
in-house; hence recruitment and operational costs can be minimized to a great extent. This is one
of the prime advantages of offshore outsourcing

15
THE DISADVANTAGES OF OUTSOURCING
 Risk of exposing confidential data: When an organization outsources HR, Payroll and
Recruitment services, it involves a risk if exposing confidential company information to a third-
party
 Synchronizing the deliverables: In case you do not choose a right partner for outsourcing, some
of the common problem areas include stretched delivery time frames, sub-standard quality output
and inappropriate categorization of responsibilities. At times it is easier to regulate these factors
inside an organization rather than with an outsourced partner
 Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs
involved in signing a contract while signing a contract across international boundaries may pose
a serious threat
 Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of
multiple organizations at a time. In such situations vendors may lack complete focus on your
organization’s tasks
OUTSOURCING: SOME COUNTER WAVES
We have discussed that outsourcing has several benefits for the modern world. But there
are many counter arguments and steps are rising in many countries against the process of
outsourcing. There has been a recent overturn of the tendency to outsource. The most recent

16
trends in outsourcing and offshoring have been precisely the opposite force as companies are
drifting back to perform tasks themselves and develop facilities back in their home Western
locations.
Many firms are undoing their steps in outsourcing because the consequences were not
entirely as expected. The circumstances which allow firms to unbundle the different tasks or
stages of its manufacturing process into different locations have not been fully determined.
Though the nature of the tasks plays a role determining their interconnectedness, other factors
such as innovation in the manufacturing process or advances in transport and communication
technology also affect the need for direct contact among employees. As the process which ties
tasks together within firms remains unclear, there is a degree of uncertainty about which tasks
need to remain geographically clustered together.
In many cases firms took risks experimenting with outsourcing while lacking a firm
understanding of the relationship among internal tasks and its spatial implications. Despite saving
money, companies have often faced unexpected drawbacks from outsourcing, such as
miscommunication or lower quality of intermediate products, which end up delaying the overall
production process. According to a Deloitte Consulting survey carried out in 2005, a quarter of the
companies which had outsourced tasks had to reverse their strategy. Many big companies like
Lenovo are increasingly considering turning around strategies of outsourcing. Another reason for
a decrease in outsourcing is that many jobs that were subcontracted abroad have been replaced by
technological advances.
Public opinion in the US and other Western powers opposing outsourcing was particularly
strengthened by the drastic increase in unemployment as a result of the 2007-2008 financial crisis.
In the first decade from 2000 to 2010, the US experienced a net loss of 687,000 jobs due to

17
outsourcing, primarily in the computers and electronics sector. Public disenchantment with
outsourcing has not only stirred political responses, as seen in the 2012 US Presidential
campaigns, but it has also made companies more reluctant to outsource or offshore jobs
From the standpoint of labour, outsourcing may represent a new threat, contributing to
worker insecurity, and is reflective of the general process of globalization and economic
polarization
CONCLUSION
Outsourcing has grown in importance today because economic and competitive pressures
have made it imperative for organizations of all sizes to focus on their core competencies and turn
to third-parties to assume responsibility for other secondary corporate functions. Leveraging third-
party alternatives can reduce costs and improve operating efficiencies.
Outsourcing has become one of the hottest topics in the business world over the past few
years, with so many tasks in the workplace now capable of being carried out by outside parties.
The process has jumped in popularity particularly as more and more small and medium sized
enterprises have taken their first tentative steps online, in the hopes that they can get their venture
off to a flying start. Mind you, there are other ways to outsource which do not focus on web-based
operations.
The key factors which have led to a growing trend of outsourcing are Lack of expert-
labour in some portions of the business process, Availability of cheaper labour, whilst not
comprising on the quality of output and Ability and feasibility to concentrate on the other crucial
business process. These factors have specifically contributed to most of the outsourced
partners across different locations in the world. Expertise in communication capabilities,
technical expertise and favorable financial packages are the most important advantages of
outsourcing to India.
At the same time we are looking forward to the uncountable benefits regarding social
and economic, we also must consider the challenges and disadvantages caused by
outsourcing. Countries like India are focusing on the Knowledge Processed Outsourcing
rather than business Processed Outsourcing. Our government should ensure that the human
resources in our country can fully utilized for the development of our nation. Due to global
outsourcing most of well skilled indian professioners are hired by famous international companies
outside our nation and we are unfortunate to use and experience their skills.
With all these pros and cons of outsourcing to be considered before actually approaching a
service provider, it is always advisable to specifically determine the importance of the tasks

18
which are to be outsourced. It is always beneficial for an organization to consider the
advantages and disadvantages of offshoring before actually outsourcing it.
REFERENCE
 http://www.mathrubhumi.com/education/index.php
 http://articles.economictimes.indiatimes.com/keyword/outsourcing
 Knowledge and Process Management - Volume 10 / Issue 1 by Andrew Kakabadse and
Nada Kakabadse
 http://www.emeraldinsight.com/doi/abs/10.1108/17538290810857457
 https://en.wikipedia.org/wiki/Outsourcing
 http://www.entrepreneur.com/encyclopedia/outsourcing
 http://blog.blackboard.com/outsourcing-in-education-friend-or-foe/
 https://www.linkedin.com/pulse/20140606011953-6070925-kpo-vs-bpo-what-are-their-
differences

Online assignment - Outsourcing

More Related Content

What's hot (20)

Similar to Online assignment - Outsourcing (20)

Recently uploaded (20)

Online assignment - Outsourcing