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Executive Summary & Background of the Organization
The company selected for the offshore outsourcing of Information Technologies is Franklin Templeton Investments of United States of America.
Franklin Templeton Investments has developed from being distinguished as the best small companies in USA to being believed a prime worldwide investment handling establishment. They extend customers a worth full view determined by their sixty of experience, investment expertness and developing worldwide contact.
The Corporate structure was established in 1947 in New York, United States of America by Rupert H. Johnson, Sr., who ran a productive merchandising brokerage firm from an office on Wall Street. The company was named after the founding father of United States of America Sir Benjamin Franklin because he typified the thoughts of frugality (avoiding waste) and discreetness when it came to preserving and investment. The company's beginning plan of mutual funds, Franklin Custodian Funds, was a series of cautiously handled equity and bond funds planned to attract to most investors.
Franklin went open in 1971, which contributed Charlie and group the investment required to develop the business concern and perspective it for the time to come. In 1973, the company took on Winfield & Company, a San Mateo, California- founded investment firm, and shifted Franklin's functions to California. The commingled establishment had near to $250 million in assets under direction and more or less 60 employees. In 1979, Franklin Money Fund commenced a development soar that made it Franklin's first billion-dollar fund and set up the business's enormous asset growth in 1980s.
Commencing in 1980, the Organization's total assets doubled every year for the following six yrs. The Organization's shares started dealing on the NYSE in 1986 beneath the stock ticker mark "BEN". In the same year, the Organization starts for the first time to function beyond North America in Taiwan. In 1988, Franklin took on L.F. Rothschild Investment Handling Company. Assets beneath the direction for Franklin rose from just above $2 billion in 1982 to above $40 billion in 1989. Not one to stay on their honor, management was pertained regarding Franklin's arduous stress on fixed income investments which had turn to the company's bread and butter.
Strategic attainments in 1990s aided Franklin broadens its investment management capacities outside fixed income and also elaborate its world footprint around Europe and also Asia. In 1992, on coming upon a take with famous worldwide investor Sir John Templeton for takeover of Templeton, Galbraith & Hansberger Ltd., Charlie was appointed the Fund Leader for the Year for leading what was then the most prominent amalgamation of freelance mutual fund company in the chronicle. Templeton afforded the company a very firm role of international equity funds and also the expertness of forth coming markets master Dr. Mark Mobius, who presently heads a squad of emergent markets analysts and deals emerging markets roles. Dr. Mobius has exhausted above 30 years exploiting in on growing markets across the globe. Later in the year 1996, with an idea to widen its credits of local equity products, Franklin Templeton purchased and took over Heine Securities Corporation, investment consultant to Mutual Series Fund, Inc.
Various other main takeovers coagulated the company's perspective as a prime worldwide investment management establishment: Bissett in 2000, Fiduciary Trust in 2001 and Darby in 2003. In 2005, Gregory E. Johnson (Greg), Charlie's son, turned chief executive officer, accepting overall obligation for guiding Franklin Templeton Investments. Greg had originated up in the business concern and exploited his way by the establishment commencing on the merchandising desk at age 24 in 1985. Charlie held his character as chairman and preserved to render direction to Greg and his leading squad.
Strategic role of Franklin Templeton Investments for IT offshore outsourcing
When the Business of an organization widens the management depends on the technologies to support them in all their business dealings. Franklin Templeton has too many branches and worldwide centers, which are all governed by a single management. Hence outsourcing of the Information Technology systems were the only choice. They remain with two options of either do a near shore outsourcing or go for an offshore outsourcing. The important factor on a business strategic point of view would be to reduce the cost. Hence it prefers an offshore out sourcing.
Any out sourcing Company has to determine goals. It perhaps can be a choice of too many goals admitting cost step-down, access to Modern skill sets or amending the product character. If these suitable goals are not understood into particular targets then it is hard to determine precisely what is expected from the outsourcing marketer and will be close to impossible to evaluate success, once the outsourcing is complete. The main reasons why most of the Companies in the developed nations prefer outsourcing are the following:
- Availability of expertness
- Better Quality of the finished product
- Ongoing project cost
Also the predominant danger of carrying such a monolithic organization like Franklin Templeton is exhibited to exposure of acquiring dark and hence hindering the functions of the Organization. Hence to settle the matter Franklin Templeton has concentrated on furnishing eventuality to each one of business organizations vital functions. There were several ideas why Franklin Templeton chose to outsource the IT technologies. Mainly they were by connecting the each subdivision and functioning offices with eventuality as business accusative. Hence all the technologies and resources were built in a way that was capable to conform to the restraints of each subdivision. Service centers for IT were in effect ready to alleviate the demands of the procedures, which existed in the areas were the inspection, repair and needs may be cost-efficient. Franklin Templeton also opened International Investment centers in India by which they could get the IT services done thru the skilled functionalities in India at a lower cost as well as enter the Indian Market with the Investment business. The strategic function, which the IT team made for off shoring outsourcing, could be sketched as following. The, Strategic Outsourcing, Ian Benn and Jill Pearcy list the following fundamental causes - without admitting cost cutting - as the possible goals of any outsourcing program:
Focus on Core Competences
Nowadays hypercompetitive mood as much as core competence with outsourcing strategies let business organizations be at concurrently the lowest price, most liberal line, most compromising and most extremely distinguished manufacturer in the market. None former strategy backs skillfulness, innovational flexibility (by numerous sourcing) and constancy (by market variety) to the similar amount."
The issue of settling core competencies; The Economic Times described Jason Bremner, superior market analyst of outsourcing functions, signifying that outsourcing ought to have a wide plea. He also described that "While all business has exclusive desires, there is indisputable proof that outsourcing allows executives to edge on the core industry while deciding skills deficits or resource troubles, dropping costs, and primarily transforming how an organization believes, behaves and functions
Quality of Service
A good BPO (Business Process Outsource) can handle customer services email and telephone calls, technology services better what the outsourcing company can do it by themselves. Why? Because that is the main function and service of these BPO's where as the Franklin Templeton's main business is in Investment and Finance. BPO's provide service to giant companies and have all resources only to provide technical assistance.
Recruiting the Best
While recruiting a team of technological assistants, it should be made sure that the best team is made out of the people since it would later create political issue and discomfort. The technologist should be a constant learner through their personal efforts and should be well trained about the corporate policy and the objectives. This is very important as while building a series of development the corporate goals are to be determined and followed by the team.
An outsourcing dealer should be able to meet the expense to empower in enhanced systems, networks and extra technical services as the cost will be extended throughout several customers. Every customer will get advantage from the utilization of the most recent computer hardware or call centre technology, with no need to put in millions in buying the property this would require. Overall the service provider should ensure that the best technical service has been given to the its clients.
Wider Skills Pool
The only way to make sure the service is best is by altering direction to educate teams in latest skills. When functioning with an outsourcing dealer, it could be definite that the newest skills are for all time on hand. This can be a serious matter for technology teams where talent sets alter so regularly and a malfunction to recognize the right technology for a system design (because of unawareness of new techniques) can be pricey.
Outsourcing discharges the business from the capital contemplation of office room and utilities. Individuals can be in use on and when there is a service need to be quickly attended to conform to demand and then freed to the vendor as and when the assignment goes into closing stage. This grants a level of elasticity that is not possible to attain inside-house services.
Strategic IT role in off shoring outsourcing
The IT player plays the most significant part in any Organization to achieve success. The IT team also had to focus on business targets and assuring the delivery consequently as per the operational necessities.
Cost Determination and Quality Dedication
The setup of Information Technology centers are very huge ventures and require a high investment. That means the cost of the same to be determined keeping in mind the quality of the finished product. A normal setup requires at least the following components:
- Data Host
- Networking and Internet Network security setups
- Electricity Backup Generators or UPS
- Internet Connectivity
- Desktops Computers
- Other Utilities
These are the Investment costs which the BPO's have to bear for a successful setup. Apart from these there are overheads like Power, Skilled technical labor and other small overheads. There is also a challenge of finding a suitable location for the setting up of the office functions as it totally depends on the area of induction etc. If the location is prime then the cost would go sky rocking. Usually BPO's are setup at a locations where the real estate is cheap and available in adequate such as the countries like India & Pakistan.
The setup should be at a globally renowned place so that there is a well access to the on shore team since they would visit frequently for the need of resources to these offshore locations. In some cases there would be some programs or training held at the off shore locations. It would be even helpful for the domestic employees, who would need to have all the facilities by which can work and deliver as per the on shore company policies and objectives.
These setups would also be accessible to high quality communication services, so that the connection between onshore and offshore departments is facilitated in an efficient manner. Apart from these the location would need to have basic other requirements like good infrastructure so that they attract the concentration of the off shore outsourcing companies. It would always be better if it is a place where more developed infrastructure like Hospitals, Shopping centers and Banks are located. Normally an offshore outsourcing company will target only locations which would provide the basic necessity.
Easy accessibility of Information Technology & Resources
Since there are a large number of BPO's operating in the world, there is always a shortage for skilled workers who are the main resources for the setup of IT centers. Hence in a competitive market the one that is available would normally cost more than that of the prevailing market price. So it would be like the offshore out sourcing company will have to make alternative arrangements and have a capacity to get the work done on a minimum effort. In recent times, this matter is overlooked by many off shore out sourcing companies and ultimately pays up hefty price. The suggestion is for overcoming the concerned challenges in the business.
Infrastructure Back up
The business should always think about the continuity and has a back up of the infrastructure during all the bad times like a natural calamity or a political crisis. Hence they should maintain a good facility so that they have their business going on and on during any such incident. The off shore outsourcing company should have all the necessary units in its onshore and offshore units so that they can have a risk free environment and deliver their work and product on time.
Inducing Advance Technological Advantages
The outsourcing company should always be in an idea of improving the technology so as to reduce the cost of production, service speed and betterment of quality. This would need an additional investment but in the same time would give better results too. The effectiveness of the results would help in overcoming the investment thoughts that the outsourcing company will initially have. Since IT is a fast developing industry it is nowadays vulnerable for the offshore Outsourcing companies to adapt a outdated technology, since it would affect the main objective of the company.
Security Failures of IT in offshore outsourcing
The offshore IT outsourcing company always looks out at a cheap destination like all other business concerns does to reduce its costs. In the current competitive world the business concerns under a profit motive usually tend to forget the main feature "Security". This is one of the main concerns of the business who are exposed to risk. In IT industry the lapse in security would create huge problems, so huge that sometimes it cannot be measured. Hence the IT offshore outsourcing companies should not only handle the outsourcing issue with its project managers who negotiate the cost and other non technical details but also communicate with the technical advisors. The following are the potential area where there can be a lapse in security of the offshore out sourcing company.
Exposure of Data
The threat is that the data stored in the system could be accessed by unauthorized personnel who can manipulate the whole system. Hence the data should be protected from such unauthorized use and stored in such a way that there can be no manipulation. Even the authorized person should be given a proper login ID and there should be record of all the actions of them just to avoid a deliberate manipulation by any employee. Every employee should be legally abided to the system and all necessary agreement to be made with employees and hence maintain data reliability. It is also advisable to conduct a character check of a potential employee of the company just to ensure that there is no past record any misconduct and be safe from any security threat.
User Identification and Security of Employees Equipments
The employee's for accessing of the terminals and servers at different locations share user Id's and password out of which the each sharing add the risk of getting exposed of data. The user id and the password are the main unit of primary security which would be shared out of no other option. In such cases there can be an extra security features like changing of password instantly or by using password text and character coded password. Apart from this the employee should safe guard their equipments like Laptops, Memory drives and other devices which would be used in any of the activity relating to the outsourcing. The security features like face recognition or thumb print can be used on a recent laptop so that access by unauthorized person be barred. The laptop should be kept in log off mode while not in use for a long time.
Security of Networks
Since offshore outsourcing deals in communication among different locations and the branches onshore and offshore, it is always vulnerable to the exposure of risk. In the recent times there are several cases of network failures and data manipulation due to its perils. There is also a high risk when the two networks transfers data which is very obviously done in an off shore out sourcing. Hence the offshore outsourcing companies should maintain a best possible way so that their data are safe not monitored by any third party. They can use better features of network security systems to control any such risk that they face. The software and applications used in all the computers should be genuinely registered with the software vendor and are required to be updated frequently. Good antivirus systems, anti Spam applications are required to keep the off shore outsource location protected from external menaces.
Virtual Private Network Security
Some establishments because of financial issues are not capable of installing committed concealed network connecting the various centers often use Virtual Private Network Security to correspond between one another. Virtual Private Network uses the Internet as the communication chamber to connect the various centers. As the Internet is approachable to all thus anyone can meddle or break the protection of the Virtual Private Network connectivity. Hence the offshore outsourcing can use the following techniques to avoid such risk.
- They should use assured Virtual Private Network software.
- The Virtual Private Network software should be encryption enabled and on shore location where the Virtual Private Network server is situated should furnish individual key to off shore locations.
- Virtual Private Network should also employ the Secure Socket Layer to broadcast the data as this renders another degree of security and is also regarded as the safest.
- Virtual Private Network facility leads to be rendered so inadequate default configurations could be averted, as default settings are not actual settings and could be easily manipulated.
Conclusion & Recommendation
The offshore outsourcing company like Franklin Templeton or any other financial institution should be very careful and precautious while handling the outsourcing business since they handle lots of public entity.