Introduction Petra Services Limited is a multinational IT service company headquartered in India. It offers a variety of IT and IT enabled services across several different industriese.g., banking, nancial services, insurance, media, retail, engineering, procurement, and construction {EPC}, manufacturing, and health care services. Petra is located in Hyderabad and has a presence in most large and mediumsized cities in India and in about 30 countries across the globe. Petra offers traditional desktop services, which are now referred to as workplace services, application management services, and data center services. These services contributed to 813% cf the company's current revenue. In 2019, Petra's revenues were around LISD T billion, and the company claimed to be serving more than 2pc customers globally. With an eye on the future, last year Petra opened up cloudbased softwareasaservice {SaaS}, specically in the area of supplychain management, much of which embedded AI capabilities that support customer decisionmaking. Although SaaS amounted to only 20% of revenue {and currently incurring losses], it is expected to grow much faster in the future than other Petra services. In a way, the traditional services are currently nancing the future directions of the company. Besides, Petra plans to become involved in transactionprocessing businessprocess outsourcing, starting with nancial accounting transactions. There is pressure on the sales team to increase business by acquiring additional clients. Deepak P. has recently joined Petra as a key account manager responsible for the manufacturing and real estate business verticals. In his previous stint as a business development executive for IT Infrastructure solutions company, he had acquired numerous clients who outsourced their IT services and claimed to have achieved both cost improvements and operational efciency. Subhendu D., his supervisor and the vice president for strategic IT solutions, had handed him the request for proposal {RFP} for Gorrs Limited {Appendix 1], a reputable plastics machinery manufacturing rm that was considering outsourcing their IT systems to a thirdparty vendor. IT Outsourcing Industry Background Information technology outsourcing involves the use of service providers to deliver ITreliant business processes, application services, and infrastructure solutions. Outsourcing in more general terms means the contracting of portions of work to outside suppliers, usually in an effort of the firm in question to reduce costs. Services such as cloud computing and its subsegments, such as SaaS, are adjacent services but are considered to be part of the core service of IT outsourcing. The outsourcing industry has seen a global trend. Every year, customers expect reductions in price while their requirements increase, such as in speed and frequency of data center access and intemet surng. Market Segments and Size Data gleaned from estimating the market size of iT outsourcing vary depending on how the source denes outsourcing and what kind of industries, services, and segments are included. Statista's Technology Market Outlook {TIvIO} divides the IT outsourcing industry into administration outsourcing, application outsourcing, web hosting, and other IT infrastructure outsourcing. Spending in the overall outsourcing industry is the greatest within the Americas region, followed by the Europe, Middle East, and Asia, El'leA, and Asia Pacific regions, with the total market exceeding USD 13D billion in revenue. Information technology outsourcing constitutes the largest share of the industry, as technology and IT consulting is the most common type of work provided by professional services organizations. According to the Information Services Group, when focusing on contracts with a total value of more than USD 25 million, the annual global revenue from information technology outsourcing is estimated to have been around USD 66.5 billion in 2019. Future Trends in Outsourcing Cloud computing has started to take on a more prominent role in the outsourcing market, as its individual segments, infrastructure-as-a-service (laaS), platform-as-a-service (PaaS), and Saas, have provided some of the information technology outsourcing services more conveniently and at a lower cost. The total contract value of the global "as-a-service" market has now increased to more than USD 30 billion annually. The growth of automation is another trend supplementing or replacing traditional outsourcing services. More than 70% of organizations worldwide expect automation to increase as a service delivery model in the future, as the spending on robotic and intelligent process automation and Al business operations is set to increase to more than USD 30 billion over the next few years. Petra Company Background Petra is a global, multicultural organization headquartered in Hyderabad, India and specializes in providing a suite of application development and maintenance services, infrastructure outsourcing services, and business and knowledge process outsourcing solutions to clients around the world. The company was incorporated in 1995. As of March 31, 2019, the company has subsidiaries in Australia, Belgium, Canada France, Germany, India, Ireland, Mauritius, Netherlands, People's Republic of China, Philippines, Poland, Singapore, the United Kingdom, and the United States of America. In 1998, Petra obtained ISO 9001-1994 certification. The ISO 9001 certificate is a third-party certification body that provides independent confirmation that organizations meet the requirements of ISO 9001 quality management standard. Over a million organizations worldwide are independently certified, making ISO 9001 one of the most widely used management tools in the world today. The company's first healthcare product was launched in the international market in 1999. In 2005, the company started offering their clients world-class business process outsourcing BPO services. It was also among the few companies in the country awarded the BS-7799-2: 2002 certification. The BS 7799 standard was published by the BSI Group (BSI) and contained the best practices for Information Security Management. Petra also achieved the SEI-CMMI Level 5 accreditation in 2007. Capability Maturity Model Integration (CMMI) is a process-level improvement training and appraisal program. Administered by the CMMI Institute, a subsidiary of ISACA, it was developed at Software Engineering Institute (SEI) of Carnegie Mellon University (CMU). It is required by many U.S. Government contracts, especially in software development. CMU claims CMMI can be used to guide process improvement across a project, division, or an entire organization. CMMI defines the following maturity levels for processes: initial, managed, defined, quantitatively managed, and optimizing. To provide high quality support to its customers, the company was reorganized into six independent business units in the year 2015: application development and maintenance, testing, infrastructure management, business process outsourcing, enterprise security, and technology consulting services. In August 2018, Petra announced that it has acquired SimplifySCM, a cloud-based Saas service provider for supply chain management to expand its services in the emerging cloud computing business Petra is invited to submit proposals to Gorrs Limited. Deepak needs to design an appropriate services package and to offer Gorrs attractive prices. He must compile various components and create required services.Part B Discussion Questions 1. As a representative of the Petra company, what are the outcomes you aim to achieve from winning this outsourcing contract? 2. Should your company bid? If yes, for which services? Explain your answer. 3. For each service that you plan to offer, list details of how you plan to offer the services based on Services Design for Outsourcing Contract Page 7 of 9 SSAGE businesscases SAGE Business Cases @ Jyoti S. Jagasia and Anil Vaidya 2022 your company's capabilities and requirements. 4. Discuss the role of the participants from Petra's side (CFO, VP -Strategic IT Solutions and Key Account Manager)