Modelling and Analysis of IndianOutsourcing Industry: A System Dynamics Approach

摘要

India is emerging as one of the biggest markets for offshore services. Business processoutsourcing (BPO) is the delegation of one or more information technology (IT) intensivebusiness processes to an external provider that, in turn, owns, administrates and managesthe selected processes based upon defined and measurable performance metrics.Offshore outsourcing is an umbrella term covering a range of IT and business servicesdelivered to companies in developed countries by personnel based in developingcountries. Though Indian outsourcing industry is growing, the attrition rate is also risingin this sector. So is the backlash against outsourcing. In order to survive and grow in thisscenario, Indian firms must ensure that their services are not only cost-effective but alsoqualitatively superior. The present study probes into these issues. The study aims toexplore the structure of Indian outsourcing industry through the methodology of systemdynamics. A system dynamics model has been developed, validated and simulated overtime to understand the trends that characterize this industrial segment. The implicationsof the results of the study are discussed.