SMP1 Module 1 IT-BPM Industry Overview PDF

SMP1 1. CAPACITY MANAGEMENT MODULE 1 Need to acquire/buy/hire (temporary) capacity...

SMP1 1. CAPACITY MANAGEMENT MODULE 1 Need to acquire/buy/hire (temporary) capacity Demand chasing (one day 50 employees needed, next day IT-BPM INDUSTRY OVERVIEW only 10 are needed) 2. LOWER COST: In 2010, The Philippine Information Technology and Business Process Replace expensive local or in-house resources with less Management (IT-BPM) industry garnered recognition from around the expensive resources from external service providers world. The UK’s National Outsourcing Association determined the country #1 Tax differential or government incentive programs in other in business process outsourcing service in its Global Business Trends report. locations leading to lower cost The word is definitely out – the Philippine is a major player in global IT-BPM. 3. BETTER PERFORMANCE Use of specialized external providers which can deliver service with The opportunity remains for the Philippine IT-BPM industry to capture a better quality, innovation, in new platform: bigger share, given the global offshoring services market is seen to more than Sales force providing wen-based sales management double by 2016. The industry has the potential to bring in USD$25 billion in PeopleSoft providing employee-facing tools revenue, and employ 1.3 million individuals by 2016. 4. FASTER AND CONTINUOUS SERVICE Offshoring and Outsourcing (O&O) is perhaps one of the most unique Greater output from work being done around the clock developments in business and industry. Firms now adopts truly global scope Offshoring market research support to locations in reverse with the opportunity to situate their operations across the world. time zones Offshoring processing of bills of loading to centers in other Outsourcing is said to have first flourished in the run-up to the beginning of time-zones to complete task faster the second millennium. IT processes and Operations were migrated to India 5. PART-BASED ACTIVITIES as some American and European companies focused on dealing with the Y2k Automobile components problem. Cruise-ship rooms IT-BPM INDUSTRY SNAPSHOT IN THE PHILIPPINES Airplane avionics Desktop build and configuration 1. Contact Center 2. Back-Office and KPO: Best-kept secret WHAT IS BEING OUTSOURCED? 3. Software Development 1. SUPPORT OR AUXILIARY SERVICES 4. Animation & Game Development Cafeteria 5. Engineering Design Janitorial service INTRODUCTION TO THE IT-BPM INDUSTRY Copy center Building maintenance OUTSOURCING, DEFINITION OF Trucking/shipping Every time we buy something from somebody rather than producing Security it ourselves, we have essentially 'outsourced' the production of that Payroll good or service. Legal Contracting of a service provider for the delivery of a process or 2. ROUTINE ACTIVITIES OR ACTIVITIES THAT CAN AUTOMATED service AT LARGER CENTERS WHY COMPANIES OUTSOURCE?  Small banks outsourcing check processing to larger banks, Employee assistance riding on ATM base of multi-bank network Enjoy your favorite food Small vendors using Amazon.com as data center, marketing DISADVANTAGES OF OUTSOURCING – EMPLOYER PERSPECTIVE and payment processing platform Banks using common/multi-bank core baking services of Cost can be higher because provider may add premium for risk in large technology case processes are not well defined 3. IT SERVICES Example Problem: Vaguely defined task as “provide clinic service.” Application development Example Solution: Redefine tasks Application maintenance and management 2 full-time nurses and 1 full-time doctor, from 8:00AM to 5:00PM, Production/ Data-Center Operations providing emergency medicine (to what extent), and, emergency care Production technical/systems support equipment (or not) Helpdesk Buyer does not have full control of resources doing work Software as a Service (SaaS): shared application software Example: Can your agency provided office assistant also do this extra Cloud services: shared data storage facilities, database errand – bring pet to the vet clinic, bring clothes to the dry-cleaner, management pick-up kids from school? ADVANTAGES AND DISADVANTAGES OF OUTSOURING Solution: Do not use outsourced office assistant like your personal ADVANTAGES OF OUTSOURCING – EMPLOYER PERSPECTIVE assistant The service provider (BPO company) determines most efficient DISADVANTAGES OF OUTSOURCING – EMPLOYEE PERSPECTIVE number of resources, process, and supervision to achieve Shifting schedule (possible night shift) output - Gives you the opportunity to pursue your passion and interest Service Provider may have more expertise/capability than the during the day buyer EXAMPLE: Dealing with irate customer o Technical support – Dell, Convergys - -There is training support on how to deal with irate customer o Accounting – JP Morgan Chase & Co., Citi - -There is also floor support o Animation – top draw animation - -Companies provide facilities and activities to help you unwind Buyer can leverage economies of scale of the Service Provider EXAMPLE: o Technical infrastructure o Human resource o Technical expertise ADVANTAGES OF OUTSOURCING – EMPLOYEE PERSPECTIVE “Work Abroad, Live here” - Be near your friends and family - Work in the country and support Philippine growth Professional growth Financial independence