Answered Essay: Review the WSJ video on business sources outsourcing (BPO)

Review the WSJ video on business sources outsourcing (BPO)!C962C680-F265-4FB0-A173-857A80084B54 and conduct a brief search for updated information. Then, answer the following:

(1) Did Tata’s choice of a different generic strategy than that of InfoSys result in better flexibility when global BPO industry forces changed?

(2) Does IBM’s (a knowledge-intensive differentiator) re-entry into the low-end (high-efficiency) BPO global market not break the “pursue only one generic strategy” rule?

Expert Answer


1. Yes, the share prices and results trends show that Tata is doing it better in this time of crunch.

Tata has not focused on any specific service, but have been providing a range of products, both high and low, so when the market is dry, they can cash the one which is required more, and so this flexibity is proving a good option. At the same time Infosys which is a specialized service is not getting the attention of clients as the market is down and so the revenues are dropping.

2. Not really it is focusing on the focussed strategy with knowledge base they are trying to act as a differentiator, and the costs for the services are competition based. And they are trying th higher end of spectrum, and moving towards consulting .

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