This is a paper submitted as assignment for Strategy for Innovative business Strategy Class, KAIST,Fall 2013.

1. Business Process Outsourcing
to India
Submitted by : Riri Kusumarani (20124309)
Strategy for Innovative Business, Prof. JayYoung Ohm
Global ITTP, School of Innovation
Fall 2013

2. BPO Industry Analysis
High Entry Barriers
New entrants will have
Difficulties to compete with
existing companies
Bargaining
Power of Buyer
• High Purchasing Power, easy
to juggle between options.
Threat of New
Entrants
Rivalry
Competition
Threat of
Substitutes
•Big competitors on the
Industry
• Sticky cooperation between
BPO and clients.
Bargaining
Power of
Supplier
•Medium Bargaining Power
•India provides many people to hire
•India provide supporting environment
for BPO companies
•No clear substitutes threat at this time
• Clients are reluctant to outsource and prefer to do the
function themselves. The clients is the substitute!

3. Competitive Advantage
 Utilized HR
Cheap
and
availability
from India,
abundance
Superior
Efficiency
?
Superior
Quality
Competitive
Advantage
Superior
Innovation
 Lean Six Sigma, By far the most credible
techniques in Quality Management.
Superior
Customer
Responsiveness
?

4. 5P Analysis
Product
Place
Price
People
Promotion
* Lean Six
Sigma
*
India
Location
No
Information
* More than
700 Process
specialization
* Lots of
Center
Of
Excellence
located
across
the
continent
* Cheap and
Skilled Labor
in India.
*
Benefit
from Being
Under
GE
name.

5. Future Strategy Recommendation
Leverage Services
• Invest in Infrastructure type outsourcing.
Develop the Lean Six Sigma
Cooperate With GE to access GE’s Clients
Invest in Employees and Future Employees
• Invest in India’s People Education to secure HR
Resources
• Invest in Current Employee and specialized their skill.
• Hire Retired People!