2. Agenda
• The Business Process Outsourcing Landscape
• Offshoring destinations and advantages
• Outsourced content creation framework
• E-Learning Offshoring Best Practices
4. Offshoring is Booming Again
Worldwide demand
for HR business
process outsourcing
services will grow from
$30.4 billion in 2010 to
$38.6 billion in 2015.
Payroll services will
comprise the largest
amount of
spending, whereas
benefits
administration and
hiring and recruiting
outsourcing will grow
the fastest.
Gartner
8. Offshored Content Creation Risks
• Loss of content control
• Quality concerns
• Security
• Infrastructure
• Scope/cost creep
• Cultural mismatch
• Political unrest
9. Cost Savings Statistics
Cost Saving Stats for Turnkey Projects (1 hour e-Learning)
US Effort Offshore Effort US Cost India Cost
45 3500
40 3000
35 2500
30
25 2000
20 1500
15 1000
10
5 500
0 0
Roughly 50% to 60% savings (McKinsey & Company)
US Cost vs. Offshore Cost: $18,582:$7,136
Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research
Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com
10. Cost Savings Statistics
Cost Saving Stats for Production Projects (1 hour of e-Learning)
US Effort Offshore Effort US Cost India Cost
45 3500
40 3000
35 2500
30
25 2000
20 1500
15 1000
10
5 500
0 0
Roughly 35% to 45%
US Cost vs. Offshore Cost: $18,582:$11,540
Source Citation: Chapman, B. (2010). How Long Does it Take to Create Learning? [Research
Study]. Published by Chapman Alliance LLC. www.chapmanalliance.com
11. Cost Savings Statistics
Cost Saving with Offshore Development (24 hours of
asynchronous online) US Cost India Cost
80000 72000
70000
57600 57600
60000
50000
40000 36000 34560 36000
27000
30000 21600
24000
20736
18432
20000 12000 12096
14400
11520
9216 7516.8
10000 4608 5376 4608
0
$332,280 vs. $ 154,588 (total saving = $177,692)
US Cost vs. Offshore Cost: Savings of 55%
12. International Service Level Agreements
Milestones & Deliverables SLA Maintenance
Intellectual Property Rights Changes to Clauses
Terms post Execution
Indemnity & Confidentiality
Tasks & Responsibilities (Provider)
Legal and Financial Aspects
Legal Tasks & Responsibilities (Client)
IP laws Service Level Break-Down
Labor laws Service Window
Calamities Service Monitoring
Political unrest
Contingency
Natural disasters
Performance
Costs
Project Fee
Security
Unit Fee (For Recurring / Change Orders) Reporting
Payment terms and milestones Personnel
13. Offshoring Process Flow
DISCIPLINES Assessment Planning Build Benchmark Operation
P R O J E C T M A N A G E M E N T O F F I C E (P M O)
Governance
Infrastructure
Staffing Human Resource Management
Delivery
Continuous Improvement
15. Vendor Selection Due Diligence
• Create a short list of providers
• Develop use cases
• Scripted demos
• Talk to current customers
• Write the RFP
• Evaluate the proposals
16. Key Considerations
• Build business case
– Cost
– Strategic focus
– Quality
• Identify stakeholders
• Selection team, implementation team, governance team
• Length of Term
• Service level agreements
• Benchmarks
• Prepare for backlash
• Clear, consistent, and continuous communication
17. Thank You
For e-Learning Offshoring please contact G-Cube
at info@gc-solutions.net or +91-120-4122228.
Visit: www.gc-solutions.net
Editor's Notes
Cultural –reluctance to raise issues
Key is to highlight – that with offshoring the internal efforts (i.e. cost) in the areas of subject matter assistance and project management may increase, but overall cost of development goes down. Eventually – the internal efforts may as well reduce, given the offshore team takes time to understand client’s business and processes.