PRESENTATIONPRESENTATIONONON

BPO & IT’S COMPNAYBPO & IT’S COMPNAYBARUN KUMAR

JAIDEEP CHADHA

AMIT RAI

JYOTI GANGWAR

RICHA BAJPAYEE

ANJU YADAV

DefinitionDefinition :- :-

Business process outsourcing (BPO) can Business process outsourcing (BPO) can be defined as the transfer of an be defined as the transfer of an organization’s entire non-core but organization’s entire non-core but critical business process/function to an critical business process/function to an external vendor who uses an IT-based external vendor who uses an IT-based service delivery.service delivery.

What is OUTSOURCINGWhat is OUTSOURCING ??

• Delegating a Company’s Business Delegating a Company’s Business Processes to Third PartyProcesses to Third Party

What is BPO?What is BPO?•Contracting of the operations Contracting of the operations

and responsibilities of a specific and responsibilities of a specific business processes to a third-business processes to a third-party service provider.party service provider.

Reasons for Reasons for outsourcingoutsourcing•Reduce and control operating Reduce and control operating

costscosts

• Improve companies focusImprove companies focus

•Free internal resources for other Free internal resources for other purposepurpose

BPO Categories:BPO Categories:

•Back Office outsourcingBack Office outsourcing Internal Business FunctionsInternal Business Functions

•Front Office outsourcingFront Office outsourcing Customer Related servicesCustomer Related services

Certain terms :Certain terms :

•OffshoreOffshore

•Near shoreNear shore

• InshoreInshore

What BPO ProvidesHuman Resource Finance

Market Research Network Consultancy

Technical Support Collections

Transaction Processes Accounting

Administration Training

Customer Care

Sectors:Sectors:

• Telecom IndustryTelecom Industry

• Travel & Hospitality IndustryTravel & Hospitality Industry

• Technology IndustryTechnology Industry

• Banking/Financial services Banking/Financial services

• Insurance Industry Insurance Industry

• E-commerce & Retail Industry E-commerce & Retail Industry

• Industrial Sector Industrial Sector

• Distribution Sector & many moreDistribution Sector & many more

Market Share:Market Share:

• BPO and ITes Contributes 7% to GDPBPO and ITes Contributes 7% to GDP• The global BPO Industry is 120-150 billion dollarsThe global BPO Industry is 120-150 billion dollars• Indian BPO is US $11.4billion. Indian BPO is US $11.4billion. • 824 call centers in India.824 call centers in India.• Indian IT-BPO recorded Growth of 28% in FY Indian IT-BPO recorded Growth of 28% in FY

2007-08.2007-08.• Expectations of $30 billion by 2012. Expectations of $30 billion by 2012. • Around 6,00,000 people employed, about the Around 6,00,000 people employed, about the

same as IT industry but It’s growing faster.same as IT industry but It’s growing faster.• Indian BPO players are ranked top global players Indian BPO players are ranked top global players

in every single segment because they invest in every single segment because they invest massively in training, quality assurance, massively in training, quality assurance, productivity improvement and information productivity improvement and information security.security.

There have been 12 typical causes of employee turnover • Pace of effort required • Sense of being overwhelmed • Frustration of not being allowed to do a good job • Repetition • Day claustrophobia- being at the desk for extended time • Rank and file regimentation • The feeling of being scrutinised • The feeling of not being appreciated by others • Handling complaints and problems all day • Odd work hours • Pay • Better opportunities elsewhere

Distribution of BPO providers in %

India’s Top 5 BPO’sIndia’s Top 5 BPO’s:: World’s Top 5 BPO’sWorld’s Top 5 BPO’s

1.1. GenpactGenpact

2.2. WNS(World WNS(World Network Solutions)Network Solutions)

3.3. WiproWipro

4.4. HCLHCL

5.5. Firstsource(ICICI)Firstsource(ICICI)

1.1. IBM GlobalIBM Global

2.2. AccentureAccenture

3.3. Hewlett PackarHewlett Packar

4.4. MphasiSMphasiS

5.5. Ernst & Ernst & Young/CapgeminiYoung/Capgemini

Leading BPO-ITes cities in Leading BPO-ITes cities in IndiaIndia::• Tier ITier I cities like cities like

Bangalore, Chennai, Hyderabad, Bangalore, Chennai, Hyderabad, NCRNCR, , PunePune, , MumbaiMumbai, , KolkataKolkata..

These are leading IT cities. With rising infrastructure costs These are leading IT cities. With rising infrastructure costs BPO’s are shifting operations to.BPO’s are shifting operations to.

• Tier IITier II cities like cities like

Nashik, Aurangabad, Nashik, Aurangabad, MangaloreMangalore, , ChandigarhChandigarh, , JaipurJaipur, , MysoreMysore etc.etc.– Offers lower Business process overhead(rent, electricity).Offers lower Business process overhead(rent, electricity).– Have a less reliable infrastructure system.Have a less reliable infrastructure system.

Why Why IndiaIndia is more is more preferablepreferable

• English speaking populationEnglish speaking population• Educated technically skilled employees Educated technically skilled employees

(large no. of graduates, engineers)(large no. of graduates, engineers)

• Telecom facilities.Telecom facilities.

• Favorite govt. policiesFavorite govt. policies• Lower wages Lower wages (cost reduction up to 50% )(cost reduction up to 50% )

• Suitable & large human resourcesSuitable & large human resources

• Well positioned with IT-enabled Well positioned with IT-enabled services services

• Conductive environmentConductive environment• Favorable time lag Favorable time lag (12 hrs with USA 5 hrs (12 hrs with USA 5 hrs

with UK)with UK)

• Large unemployment rate. Large unemployment rate.

Problems in India :Problems in India :• Poor infrastructurePoor infrastructure

• Cultural differencesCultural differences

• Internal competition for resourcesInternal competition for resources

• Rising labor costsRising labor costs

• Political and religious instabilities Political and religious instabilities

Why it attracts peopleWhy it attracts people• It don’t require any academic It don’t require any academic

specialization specialization • No specific age bar No specific age bar • Offer good work environment Offer good work environment • Good wages along with some Good wages along with some

excellent benefits excellent benefits • Provide transport facilities Provide transport facilities • Attractive lifestyleAttractive lifestyle• Flexibility of timeFlexibility of time• Self independenceSelf independence

Why people dislike or leave Why people dislike or leave thisthis • Tedious Tedious • Monotonous Monotonous • Sleepless nights /Physical strains Sleepless nights /Physical strains • Some people leave for Some people leave for Higher educationHigher education Higher salary Higher salary Better statusBetter status..• low brand equitylow brand equity• Lack of focused training and certifications Lack of focused training and certifications • No growth opportunity/lack of promotion No growth opportunity/lack of promotion • No personal/ social life No personal/ social life • No technical/professional gainNo technical/professional gain• Lack of focused training and certifications Lack of focused training and certifications

Problems:Problems:

Key To success:Key To success:

• Rapid training moduleRapid training module..

• Providing Employee BenefitsProviding Employee Benefits

PF InsurancePF Insurance

Gratuity AccommodationGratuity Accommodation

Loans Educational Benefits Loans Educational Benefits

Performance based incentives Performance based incentives

Flexi-time Maternity LeaveFlexi-time Maternity Leave

• Career growth opportunitiesCareer growth opportunities

Challenges to be faced Ahead…

•Retention of clients, employees

•Quality and compliance issues

•Emerging Foreign Destinations

•Physical Infrastructure