Modelling and Analysis of Indian Outsourcing Industry: A System Dynamics Approach

摘要

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