Knowledge Process Outsourcing

-Prepared by Sunny Sachdev (Roll No – 28) Shauna Dixit( Roll No - 24)

GLOBALIZATION 

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Question: What is the truest definition of Globalization? Answer: Princess Diana's death. Question: How come? Answer: An English princess with an Egyptian boyfriend crashes in a French tunnel, driving a German car with a Dutch engine, driven by a Belgian who was drunk on Scottish whisky,

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followed closely by Italian Paparazzi, on Japanese motorcycles; treated by an American doctor, using Brazilian medicines. This is sent to you by an Indian using Bill Gates's technology, and you're probably reading this on your computer, that uses Taiwanese chips, and a Korean monitor, assembled by Chinese workers in a Singapore plant, transported to you by Bangladeshi rickshaw-driver. That, my friends, is Globalization!!!!!

Martin H Fisher once said, “Knowledge is a process of piling up facts; wisdom lies in their simplification”.

WHAT TRIGGERED THE EVOLUTION OF THE KPO BUSINESS MODEL      

Frenzied competition Low profit margins Industry consolidation Diminishing global barriers to trade Appreciation for flexible business models Geographically dispersed highly skilled work force

KPO – A LITTLE BIT OF HISTORY 

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Knowledge Process Outsourcing (KPO) has evolved from the success of the Business Process Outsourcing (BPO) model. Some of the MNC’s who pioneered the trend of setting up KPO centers in India Frost & Sullivan Gartner Office Tiger General Electric American Express McKinsey

WHAT IS A KPO?

Highly Value Added Process Chain

PEOPLE

EVOLUTION OF KPO

BUSINESS PROCESS MAPPING

WHY INDIA?

McKinsey conducted a comparative feasibility study comparing India vs. the other countries on critical prerequisites and competitive advantages offered for setting up a KPO

ADVANTAGE INDIA

Source : Mc Kinsey

INDIA VS. LATIN AMERICA 

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The proximity to the U.S. and free trade agreements in place, many countries of Latin America are building up their outsourcing infrastructure. "GE still outsources 90% of its IT work to India, sending just 6% to Mexico. But as India's costs rise, Mexico will look better and better Mexico, Brazil and Chile are the main countries to give competition to India in off shoring services -- the first two because they have the critical mass, big company clients, and enough students graduating, and Chile because it's savvy as far as globalization goes and has been working hard on bilingual education.

Source: Business Week

INDIA VS. CHINA

INDIA’S SOCIO - ECONOMIC POLITICAL SCENARIO

INVESTOR PERSPECTIVE

MOVING UP THE VALUE CHAIN Service Level Maturity

Scalabil ity

LOCATIONS 1) MYSORE  

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Good weather and relatively pollution free Living costs and attrition rates almost half of Bangalore Abundant land, un-interrupted power supply, robust telecom and IT infrastructure World class technology parks and express highways Investment subsidies and 100% sales tax exemption on output for at least a five-year period The city has several business hotels with rates of $23 per night Land costs one third of what it is priced at in Bangalore Commercial property rates are in the range of Rs. 3000 – 4500 psf

AVAILABILITY OF SKILLED TALENT POOL 

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Every year, the University of Mysore produces quality graduates in all subjects ranging from engineering to law to medicine and bio informatics Mysore is also attractive to many working professionals who have had enough of Bangalore It also offers good medical and health care facilities

SERVICES TO BE OFFERED FROM MYSORE BU 

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Engineering and Design Services  Very Large Scale Integration (VLSI) design  Simulations  Chip design  Vehicle design support  Prototype development Business and Marketing Research and Analytics  Market Analysis: market segmentation, marketing stimulus and spend optimization, need gap analysis, market mapping  Data mining: mining the Internet,  Customer Analytics: customer satisfactions surveys, customer and segmentation, price sensitivity/pricing analysis, benchmarking

2) TRICHY 

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The state Government is aggressively trying to promote Trichy as IT and Services destination by improving infrastructure power supply, roads and communications ensuring law and order, and facilitating regulatory clearances. Good road, rail and air connectivity International airport: 7 km, Hub of southern railways Investment subsidies Educational Institutes: Commerce and Science:24 Management:1 Engineering:16 Pharmacy:2 Physiotherapy:2 Opthalmology:1

SERVICES TO BE OFFERED FROM TRICHY BU 

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Equity and Financial Research and Analytics  Investment research: equities, derivatives, credit research, valuation and accounting  Financial modeling  Company, industry and sector reports  Credit risk management  Normalizing accounting standards  Valuation of companies  Tracking of stock markets and analysis thereof Business and Marketing Research and Analytics  Report preparation: company and sector reports; editing and formatting of reports  Data mining

3) MADURAI  

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Availability of suitable telecom and data services Government has been encouraging investment by creating good infrastructure Availability of good office space Low attrition rates Availability of good and cheaper office space Rentals in the range of Rs 2000 to 4000 psf Good rail, road and air connectivity High literacy levels It has 11 Engineering colleges, 9 Medical Colleges, 11 Paramedical Colleges, 8 Polytechnics and 33 Arts Colleges

SERVICES TO BE OFFERED FROM MADURAI BU 

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Pharmaceutical research outsourcing  Offshore drug discovery  Clinical research Information Management  Quantitative analysis  Statistical data synthesis  MIS and reporting  Business Intelligence Modeling

WORK FORCE DISTRIBUTION WorkForce 300

400 Mysore Trichy 300

Madurai

ORGANIZATIONAL STRUCTURE

AT THE BU LEVEL

TO SUM IT UP 

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Our business model offers high value added, knowledge intensive end to end business solutions for different functional domains Banking on highly knowledgeable and skilled work force we have the right technical expertise that any business demands Well connected and strategically located BU’s are one of our competitive advantages