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

2. PRESENTATION OVERVIEW (OBJECTIVES OF THE ARTICLE ANALYZED)
INTRODUCTION
VARIABLES DISCUSSED
WHAT ARE OUTSOURCED?
DECIDING WHETHER TO OUTSOURCE?
PROS AND CONS WITH OUTSOURCING?
FINDINGS
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 When to outsource? Finding the right contractors
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. Deciding Whether to outsource? (OUTSOURCING CONSIDERATION)
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

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
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
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. Findings
Source:

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!