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    GoodGood

    morningmorningPRESENTED BY:Priyanka Bhardwaj

    Sandeep Yadav

    Nikhil Aggarwal

    Anil Tiwari

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    What is OUTSOURCINGWhat is OUTSOURCING??

    Delegating a Companys BusinessDelegating a Companys BusinessProcesses to Third PartyProcesses to Third Party

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    What is BPO?What is BPO?

    Contracting of the operationsContracting of the operations

    and responsibilities of a specificand responsibilities of a specific

    business processes to a third-business processes to a third-

    party service provider.party service provider.

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    Reasons for outsourcingReasons for outsourcing

    Reduce and control operating costsReduce and control operating costs Improve companies focusImprove companies focus

    Free internal resources for otherFree internal resources for otherpurposepurpose

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    BPO Categories:BPO Catego

    ries:

    Back Office outsourcingBack Office outsourcing

    Internal Business FunctionsInternal Business Functions

    Front Office outsourcingFront Office outsourcing

    Customer Related servicesCustomer Related services

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    DIFFERENCE BETWEEL BPO& CALL CENTRE

    Business process

    outsourcing (BPO)outsourcing thatinvolves thecontracting of the

    operations andresponsibilities ofa specificbusiness

    functions to athird-partyservice provider.

    Call centre ?

    A call center is acentralized officeused for the

    purpose ofreceiving andtransmitting alarge

    volume ofrequests bytelephone.

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    Sectors:Sectors:

    Telecom IndustryTelecom Industry

    Travel & Hospitality IndustryTravel & Hospitality Industry

    Technology IndustryTechnology Industry

    Banking/Financial servicesBanking/Financial services Insurance IndustryInsurance Industry

    E-commerce & Retail IndustryE-commerce & Retail Industry

    Industrial SectorIndustrial Sector

    Distribution Sector & many moreDistribution Sector & many more

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    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 FYIndian 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 theAround 6,00,000 people employed, about thesame as IT industry but Its growing faster.same as IT industry but Its growing faster. Indian BPO players are ranked top global playersIndian BPO players are ranked top global players

    in every single segment because they investin every single segment because they investmassively in training, quality assurance,massively in training, quality assurance,

    productivity improvement and informationproductivity improvement and informationsecurity.security.

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    Different Types of Services Being Offered ByDifferent Types of Services Being Offered By

    BPO'sBPO's

    Customer Support ServicesCustomer Support Services Technical Support Services Telemarketing Services

    Employee IT Help-desk Services Insurance Processing Data Entry Services / Data Processing Services Data Conversion Services Form Processing Services Internet / Online / Web Research

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    Distribution of BPO providers in %

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    Indias Top 5 BPOsIndias Top 5 BPOs:: Worlds Top 5 BPOsWorlds Top 5 BPOs

    1.1. GenpactGenpact2.2. WNS(WorldWNS(World

    Network Solutions)Network Solutions)

    3.3. WiproWipro

    4.4. HCLHCL5.5. Firstsource(ICICI)Firstsource(ICICI)

    1.1. IBM GlobalIBM Global2.2. AccentureAccenture

    3.3. Hewlett PackarHewlett Packar

    4.4. MphasiSMphasiS5.5. Ernst &Ernst &

    Young/CapgeminiYoung/Capgemini

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    Leading BPO-ITes cities in IndiaLeading BPO-ITes cities in India:: Tier ITier I cities likecities like BangaloreBangalore,, ChennaiChennai,, HyderabadHyderabad,, NCRNCR,, PunePune,, MumbaiMumbai,, KolkataKolkata..

    These are leading IT cities. With rising infrastructure costs BPOs areThese are leading IT cities. With rising infrastructure costs BPOs are

    shifting operations to.shifting operations to.

    Tier IITier II cities likecities like NashikNashik,, AurangabadAurangabad,, 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.

    http://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Aurangabadhttp://en.wikipedia.org/wiki/Aurangabadhttp://en.wikipedia.org/wiki/Aurangabadhttp://en.wikipedia.org/wiki/Nashikhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Bangalore
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    WhyWhyIndiaIndia is moreis more

    preferablepreferable English speaking populationEnglish speaking population Educated technically skilled employeesEducated technically skilled employees

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

    Telecom facilities.Telecom facilities.

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

    Suitable & large human resourcesSuitable & large human resources

    Well positioned with IT-enabled servicesWell positioned with IT-enabled services

    Conductive environmentConductive environment

    Large unemployment rate.Large unemployment rate.

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    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 instabilitiesPolitical and religious instabilities

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    Why it attracts peopleWhy it attracts people It dont require any academicIt dont require any academic

    specializationspecialization

    No specific age barNo specific age bar

    Offer good work environmentOffer good work environment

    Good wages along with some excellentGood wages along with some excellentbenefitsbenefits

    Provide transport facilitiesProvide transport facilities Attractive lifestyleAttractive lifestyle

    Flexibility of timeFlexibility of time Self independenceSelf independence

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    Why people dislike or leave thisWhy people dislike or leave this TediousTedious

    MonotonousMonotonous

    Sleepless nights /Physical strainsSleepless nights /Physical strains

    Some people leave forSome people leave forHigher educationHigher education

    Higher salaryHigher salary

    Better statusBetter status..

    low brand equitylow brand equity Lack of focused training and certificationsLack of focused training and certifications No growth opportunity/lack of promotionNo growth opportunity/lack of promotion

    No personal/ social lifeNo personal/ social life

    No technical/professional gainNo technical/professional gain

    Lack of focused training and certificationsLack of focused training and certifications

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    Problems:Problems:

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    Key To success:Key To success:

    Rapid training moduleRapid training module..

    Providing Employee BenefitsProviding Employee Benefits

    PF InsurancePF InsuranceGratuity AccommodationGratuity Accommodation

    Loans Educational BenefitsLoans Educational Benefits

    Performance based incentivesPerformance based incentivesFlexi-time Maternity LeaveFlexi-time Maternity Leave

    Career growth opportunitiesCareer growth opportunities

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    SWOT Analysis

    STRENGTHS: Large no. of talented graduates

    Affordable and quality education as compared todeveloped countries

    English language benefit Well-developed IT industry Strong customer base of well known companies

    Powerful venture capital interest in investing in growthopportunity

    WEAKNESS: Scare foreign language skills other than English. Lack of customer service culture Expensive and poor quality Poor electricity supply Cultural differences

    High attrition rates, therefore less no. of people withextensive call centre experience

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    SWOT AnalysisOPPORTUNITIES :

    Horizontal and vertical expansion of existing customerbase into new markets

    Time zone difference between India and targetmarkets

    Increasing awareness of outsourcing services

    THREATS: Political instability India's competitors in Eastern Europe, Latin America

    and the Asia Pacific regions offering cheap BPOservices

    Increasing technology automation.

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