Finance

11 November 2018

ABSTRACTThe report is on the application of procurement and purchase management techniques and practies of HCL .The report also provide the benfits and challanges of outsourcing relationship and how suppliers are selected.The presentation regarding procurement and puerchase management also forms part of this reportINTRODUCTIONHCL Technologies limited(Hindustan computer limited) is a multinational IT service company based in Noida, Uttarpradesh.This is a subssidary of Hcl enterprise.A Research and Development Division,Hcl was launched in 1991 by HCL’S Software service industry to become an independent company.

Outsourcing(and sometimes “contract out)Is an industry pracice used by companies to reduce or decrease costs,activities,work or process into a third party by an external contract function outside of the contract can perform a third party’s business ability or offsite.outsourcing is a comon trend in informaion technology and other industries.business for business deaing with a business dealer and to serve both internal and externa customers.

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outsourcing product such as computer partsand services such as bookmarking, can be exchanged.in some cases, information about a company is covered by information management covering, planning, analysis, network, workstations installation, management and serviceABOUT COMPANY ;HCL’S journey was continous boastable and innovative.HCL unified efforts to trick the company from gargage startups and its sales are three vertical .HCL is now on the long run that they have traveled at the same time there is hope that even higher elevations can bulid uo and belive in confidence.

HCL provides higher awareness by providing sustainable, world-class products, solutions and services.It is on organization that educates millions of life prospects.HCL Founded in 1976 by IT Garage startus introduced the 8-bit microprocessor comuter.In 1978,the front of global community computing HCL Infosystem,HCL Technologies and HCL Health care three firms that supprt HCL enterprises.HCL Technologies offers sevices including IT consulting,enterprise transformation , remote infrastructure management, engineering and Resarch and development,and business process outsourcing (BPO).HCL also provides services such as cybersecurity, Digital and Analytics.The company has offices in 34 countries,including the united kingdom,france,germany and uk.

Health care,consumer electronics, energy, utilities, financial services, Government, industrial production, life sciences, natural resources, general services, retail, consumer, armandic, transport, logistics and hospitality.OUTSOURCING;Outsourcing can be defined as ” the stratergic use of outside resource to perform activities traditionally handled by internal staff and resource “. Outsourcing is a tactica that eventually becomes specialized business providers, which eventually become business partners. And in some cases , the outsourcing involves the transfer of employees from the company to the outsourcing companyThere are many reasons why a company may choose to outsource certain business functions. Some of the most common reasons include:1.Reducing and controlling operating costs2.Improving company focus3.

Gaining access to world class capabilities4.Maximizing use of external resources5.Sharing risks with a partner company6.Increasing efficiency for time consuming functionsBut these reasons are not enough to implement a sucessful outsourcing program. In fact companies must ensure that they consider all of the components and are able to meet the requirements for sucessful outsourcing. There are many reasons why a company chooses to enter an outsourcing relationship. In most cases , it is because it increases flexibility and business efficiency.

Another reason for outsourcing is shortage of talent some of the main outsourcing and offshoring activities that are IT infrastructure, contact centers, application development and maintenance and innovation process.BENIFITS OF OUTSOURCING;COST REDUCTION:when outsourcing means to save money. This often results in lower labor costs, cheaper infrastructure. When company outsorce to a country with a lower production costs where lower costs for employess meaning lower salaries as well as lower infrastructure and operational costs.TIME SAVINGS:When company with an outsourcing vendor, the company don’t have to advertise for, interview, select, and train, all of which can be very time consuming for the company.RISK SHARING:One of the crucial factors determining the outcome of campaign is risk analysis. Outsorcing certain companents of the business process helps the organization to shift certain responsibilities to the outsourced vendor.

Since the outsourced vendor is a specialist , they plan company risk mitigating factorss better.Outsourcing in business ;Deep Domain skills and transformer solutions are a prominent players in the Business Process Outsorcing category (BPO) .HCL proven capabilities in this field re developed by output,based business models and International Global Delivery Model (IGDM),Which provides endless services to the customers around the world1.FINANCE AND ACCOUNTING OUTSOURCING (FAO) ;Efficient cash-flow management, methodical accounting, and compliance with industry regulations are central to the financial well-being of any enterprise. Accounting is a specialized operations carried out through the year in organization.it is a heart of the financial stability and sucess of HCL. The practice of proper financial accounting procedures and book keeping is absolutely necessary to portrary an accurate picture of the financial health of the company,HCL is offering ultimate transaction , transmission-resolution, settlement, strategic related process and services across the HCL Finance outsourcing value network.

HCL services improve Record to Record (R2R) Processes, providing accurate and timely information of financial data, strengthening compliance, the performance management and regulatory reporting services provides finance function ensuring operational performance visibility, helping to control and mitigate business risks.2.SUPPLY CHAIN MANAGEMENT (SCM) OUTSORCING ;HCL Supply chain management the business process practice offers global outsourcing solutions and consultancy services for handling end to end supply chain operatins. HCL’S flexible and customized business solutions concentrate on global customer satisfication when it comes to integrating supply and demand activities to help them gain real-time information and control over their extensive global distribution networks.3.PRODUCT SUPPORT SERVICES ;HCL outsource the IT product support services,multiple channels such as voice, email, chat, web based support and the life cycle of product “follow the sun” model “around the clock”4.KNOWLEDGE PROCESS OUTSOURCING (KPO) ;HCL Knowledge process outsorcing service separates the professional association of processes,analytics and domain professionals in industrial verticals through insight based business decision support services, HCL help users learn more about customers and business.

Knowledge Process Outsourcing (KPO) is the process of outsourcing knowledge intensive activities that are data driven and encompass the process of gathering, managing,analysing and delivering objective insights into businesses.KPO services are broadly classified into four kinds of services:*. Data Analytics And Insights: Addressing business problems across industries and domains to empower organisations with actionable insights through cutting edge data analystics*. Market Research/Business Research: Providing research services and stratergy consulting for accurate and succint answer to the most pressing business questions.*. Global Reporting and Performance Management:Providing efficient reporting and performance measurement across industries to achieve operational excellence and productivity*. Data Management: Efficient solutions for data integration , storage, retrieval and sharing for robust business reporting and analytics as required by various stakeholdersThe scope of KPO business includes prepration of accounts, tax returns, computer aided simulation, engineering design and development, financial services, etc5.

HUMAN RESOURCE OUTSOURCING (HRO);HCL Service covers all employess across the life cycle of employee. Human resource outsourcing(HRO) expenditure and management are a sustainable and competitive basis for controlling costs.instead of manipulating transaction operations in HR operations, company-specific resources allow attention on stratergic ventures. It enables professionals to be more expert general managers by emptying administrative and operational tasks. Integrated human resource outsourcing acquries technologies such as multinational processes, benefits and payroll technologies through offline loadings.The Human Resource Outsourcing process comprises of the following steps:1.Need gap analysis in the existing HR process2.

Market survey for existing Human Resource outsorcing partners3.Understanding the capabilities of the prospective partners and matching them with the needs of the organisations4.Analysing the financial advantages of the outsourcing activities5.Partnering with the external partners for the Human Resource Outsourccing processFigure1 ; OUTSORCING PROCESS IN HCLROLE OF PROCUREMENT AND PURCHASE IN BUSINESS;Procurement is the process of finding , agreeing terms and acquiring goods, services or works from an external source , often via a tendering or competitive bidding process.Procurement plays an important role in growth and development of an organisation . It’s one of main functions with regard to a manufacturing industry the world class. Procurement organisation is to be responsibly in the internal needs of the goods and services by the traditional belief.

To understand how it is to be changing the role and what purchasing is all about, It starting with the objectives of the world class procurement organisation. A minor error in procurement can be lead to hindrances in production function. The purchase department is the key department which plays an important role in cost reduction. Purchase management is a department in the purchasing activities, purchasing department is to procure all the materials for the production or the daily operation of the company. It ensures the optimum level of inventory.The procurement process of the organisation is as follows ;*.Receipt of material requistion slip from store department*.

Identification of material*.Identification of suppliers*.Collection of data suppliers*.Analysis and comparison of data*.Finalizing supplier*.Fixing credit terms*.Placing order*.

Verification*.Follow upSUPPLIER AND BUYER RELATIONSHIP ;The relationship between the buyer and supplier may be complicated because each (buyer and supplier) wants to maximize its time, resources and ivestments; This can be matched with the priorties that can tamper with the relationship. Buyer is the person or organisation who buys the products from the distributor. A buyer is a manufacture whobuys a raw materials from a retailer who buy a product purchasing a buyer. The relationship between buyer and supplier will be short term or long term based on the contractual obligations. The buyer and the supplier refers to commercial transactions between organization regarding the purchase and distribution of commodities or services.Supply chain partnerships can be established between organisation to promote long term commitment to various parties as a guarntee.

The three important aspect of partnership in the distribution network are:1.Opportunties to benefits from a partnership2.Choose the right partners3.Meet the needs as partnersGenarlly the most companies the long term relationship and short term relationship are equal to thewir buyers and suppliers. The benefit of the equlibrium is sometimes given and the risk associated with it will be reduced.SUPPLIER SELECTION PROCESS;Selecting the right suppliers is scanning a series of price information. The chioce will depend upon the factors such as value for money , quality , reliability and service.

The important different factors that will be based on the business prioroties and stratergy. A strategic approach to selecting suppliers will help to understand there own potential customers to see how the purchasing decision are handling. This wil guide an illustrates a step by step approcach it should help to make the right choices.it will help to decide the need for the supplier, identfy potential suppliers and choose right supplier.The procurement department is expected to lead the process of evaluating the competitive offers and selecting the supplier for any particular contract. Methods used for selection the purchase professionl’s expertise is one of the most important factors. The company choose the right device and appropriate resource tools to produce a specific result.

Supplier is the basic source for meeting the organizatin needs. If company don’t select correctly, company will never achieve satisfactory results. Therfore , proper supplier selection it will require a strong measure of distinctly human intuition, must be performed systematically and most objective criteria.1.EVALUATING OFFERS: `Before selecting an offer , every buyer should employ process of evaluation to ensure adequate consideration that all aspects of the organization’s needs are being optimized. Evaluating a supplier’s offer includes not only evaluating its bit but also checking out the supplier’s ability to perform to the required level of speed and quality. Evaluate offers in terms of both : potential risk and benefits.

Try to assess three key criteria before reaching a decision to award the contract ta specific supplier responsiveness, capability and competitive value.2.OPERATIONAL CAPCITY ANALYSISwhen the suppier’s physical capacity is the one of the primary considerations in award to determined by the needs as promised. Obviously it don’t want to select a supplier that could have difficulty meeting the required volume due to capacity constrains or conflicts with the scheduling of other jobs. The simple ratio of the current output to capacity will be provided a valuable indication of ability. Another good idea is to ensure that the potential supplier has the ability to properly scheduling the orders and keep track of current production operations to meet the customer’s commitments. Be able to benchmark this all criteria through the reference of customers for the supplier provides3.

TECHNICAL CAPBILITY DETERMINATIONAnother important key is the capability to be evaluated is the supplier’s technology and technical ability. Make sure that the supplier has all the necessary equipment, talents and tools to complete the requirements =. To determining by the historical performance of records and the participation of supplier in present scenario. Check how many patents the company holds in comparison to its competition. Examine how often does it lead the market with the uintroduction of new products and to what extent it is funding its research and development efforts. Don’t forget to consider all the necessary licenses, insurance and supplier certification.4.

FINANCIAL ANALYSISThe financial performance analysis has become increasingly important among most CEOs and CFOs. Financial analysis helps to asses overall supply base risk factors and is pften required in order to meet audit compliance requirements. Financial ratis help to select the quality supplier by there financial strength. To properly evaluate the financial ratos, it is crucial that they are viewed with the respect to the histrocial performance of the supplier or the ratios of the firms. It is also a good idea to periodically view financial trends.CONCLUSIONThe report explained about the procurement and purchase management techniques and practies in the business.Procurement is the process of finding , agreeing terms and acquiring goods, services or works from an external source , often via a tendering or competitive bidding process.

It also provide the benifits and challanges of outsourcing relationship in HCL and how supplier selection is happening and the relationship between the supplier and buyer in the organization. The report also provides the process of procurement and the factors influencing procurement.

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