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Competitive Advantage Case Study

Case Title:

India as an Outsourcing Destination: Competitive Advantages and Core Competencies

Publication Year : 2004

Authors: Shalini & Sumit Kumar Chaudhuri

Industry: Information Technology and IT Enabled Services


Case Code: CCA0005

Teaching Note: Available

Structured Assignment: Available

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Since the late 20th century, Business Process Outsourcing (BPO) to the developing countries by the companies of the developed nations, had become more a necessity than an option. Outsourcing was viewed as an effective business strategy as it offered much more than just a cost advantage. By 2003, India had become a major global outsourcing destination because of its high intellectual capital, a huge population of English-speaking graduates, lower compensation costs, strong information technology infrastructure and a sustained government support. In the early 21st century, although India witnessed a rapid growth of BPO companies, it was facing competition from other potential BPO destinations like China, Ireland, Russia and Mexico. To strengthen its competitive edge, and further maintain and develop its core competencies, India was required to quickly move up the value chain and provide tailored services suited for different customer needs.

Pedagogical Objectives:

  • To discuss the evolution and growth of BPO in India
  • To discuss the core competencies and competitive advantages of India as an outsourcing destination
  • To discuss the challenges faced by India from other countries including China and Ireland

Keywords : Business process outsourcing (BPO), India, NASSCOM, Bangalore, Indian BPO market, BPO evolution, GE Capital International Services (GECIS), Captive outsourcing, Strategic alliance, Outsource model, ITES-BPO, Videsh Sanchar Nigam Limited (VSNL),Government and Business Environment Case Study, Business Environment Case Study, International Development Corporation, Software technology parks of India, IT Act 2000

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