patni bpo.pps
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BPOTRANSCRIPT
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India BPO Industry Overview
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Table of Contents
• Executive Overview
• Emerging Trends of BPO
• Indian BPO market: Key highlights and trends
• Phases of ITES-BPO Evolution in India
• Key enablers for growth of BPO in India
• Impact of BPO on Indian economy
• BPO: Services Spectrum
• PATNI :-BPO SERVICES Mapping of BPO and KPO processes on
complexity grid• Patni approaches towards Hiring and Retention
• Patni’s Differentiators
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Executive Overview• BPO – A structured arrangement between an organization and an outsourcing partner to perform services,
otherwise conducted in-house.
• Until few years ago, BPO was a means to achieve cost efficiencies in transaction intensive back office
business processes
• This resulted in both tangible benefits like reduction in cost, and intangible benefits such as focusing on
more “strategic” issues.
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• BPO is emerging as a key management tool, the focus of which is expanding
beyond the “non-core areas”, giving an organization flexibility to achieve a
certain set of tactical and strategic goals.
• Organizations opt to undertake BPO because it offers them advantages of
cost, speed to market, competitive capabilities, stimulus for growth and both
the time and space to focus on their own core competencies.
• As the scope of BPO increases, so does the level of complexity involved in
managing partnerships, structuring deals, and capturing values.
Consequently, older paradigms of BPO no longer hold true.
Emerging face of BPO
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Source: NASSCOM Strategic Review 2007
Indian BPO market: Key highlights and trends
• BPO in India is growing at 32% and is estimated to cross $ 8.63 billion in 2007
• Direct employment in BPO was 415,000 in 2006 and is expected to cross 545,000 in 2007
• Indian IT-BPO industry has helped create an additional 3 million job opportunities through indirect and induced employment, which will go upto 6.5 million by 2010
• The contribution of BPO & IT to India’s GDP will rise to 5.4% by 2007, against 1.2% in 1998
• The industry is moving from transaction processing & voice to complex knowledge based services
Indian BPO Exports
3.104.60
6.30
8.63
11.82
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4
6
8
10
12
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FY 2004 FY 2005 FY 2006 (E) FY 2007 (E) FY 2008 (E)
US
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Break-up of Indian BPO Experts
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• Operational cultures previously
seen only in western shared
services centers were
developed
• Large operations & high quality
infrastructure was built
• Development of delivery
processes – legalising shift work
for men & women
• Low resistance to offsshore
outsourcing
• Improving risk profile of the
business model-supply-side still
perceived to be immature
• Early movers display advantage of
acale
• Credibility of business model
reinforced – perceived risks dealt
with satisfactorily
• Initiation of work on process &
regulatory standards
• Rise in anti offshore backlash
• Widespread global acceptance of the
economic imperative of global sourcing
• Proliferation of players, service lines &
sourcing destinations
• Changing cost economies – decline in
labour arbitrage offset by leveraging
processes & SG&A efficiencies and scale
• Shift towards higher order, cost plus
benefits from global sourcing
• Maturity of processes& regulatory
standards in industry
Phase 1 – 1996-2000
Pioneers – focus on building
scale.
Absence of vendors with
exhibited
capabilities. Preference for the
captive model
Source: IBM Consulting Services
Phase 2 (200-2003)
Early adopters – sharpen
outsourcing strategy. Rise of
3PSP
Phase 3 (2003-2008E)
Cautious followers – embrace
outsourcing unconditionally.
Higher degree of
consolidation –
shake out
Phases of ITES-BPO Evolution in India
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Key enablers for growth of BPO in India
Emphasis on Information
Security & Quality
Large English-speaking
Talent Pool
Progressive macro-
economic environment
Focus on Business
Infrastructure
Business Policy &
Regulatory
Environment
• Large pool of English speaking talent
• 3.1 million graduates pass out of Indian Colleges annually comprising of 151,000 Engineering & 100,000 IT Graduates
• Stable market with a thrust on growth and globalization
• India has created a BPO business friendly environment through progressive policies (STPI & SEZ)
• Highest number of Quality certified Delivery centers in the world (including ISO27001, BS7799, SEI CMM, SEI PCMM, COPC, eSCM etc)
• Initiatives & Investments in ensuring highest level of Data/Information Security
• Rapid growth in critical business Infrastructure like Telecom, Internet Connectivity, Real Estate, Roads, Transportation etc
• Strong emphasis by government on building & enhancing support Infrastructure
• India’s attractiveness is enhanced by progressive tax reforms & strong regulatory framework
• Government support through incentives & non- financial assistance
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Impact of BPO on Indian economy
Job creation (Direct &
Indirect)
• BPO offers a big employment avenue for India’s vast population base
• Direct employment of 415,000 people in BPO, with ~ 3 million indirect employment in 2006
GDP growth
Rising income levels
and purchasing power
of people
Development &
Upgradation of
Infrastructure
Positioning in the
global marketplace
• 8.5% GDP growth in 2006, a major contributor was the growth in services sector including IT & BPO
• BPO and IT industries are a key contributor to India current Forex reserves of $ 194 billion
• BPO offers employment to millions of people with competitive remuneration
• 415,000 people employed in BPO are a key constituent of the growing affluent class of people
• Purchasing power of ~ $ 3 billion of the people directly employed in BPO in India
• Many MNCs and Indian companies have invested billions of $ in creating infrastructure
• Robust telecom, internet connectivity, roads, logistics and ancillary support infrastructure
• India has emerged as a global IT and BPO hub & globally positioned as the number # 1 destination for BPO and IT services
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BPO: Services Spectrum
Finance and Accounting
R&D and Product Design
HR
Technology & Helpdesk operation
Inb
ou
nd
Lo
gis
tics
Bu
sin
ess
op
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tion
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Ou
tbou
nd
Lo
gis
tics
Sale
s &
M
ark
eti
ng
Cu
stom
er
Serv
ice
• Financial Accounting• Management Reporting• Revenue Accounting• Order to Cash• Record To Report• Procure to Pay• Fixed Asset Management
• Customer support • Billing query resolution • Order management • Account maintenance • Order booking • Email/Chat support • Collections
• Commercial prospect evaluation for new innovations
• New product development support• Data mining, programming,
data analysis• Patent drafting & filing support• Analytics:
• Business intelligence • Target segmentation • Pricing analytics
• Staffing Mgmt • Resume filtering • JD development • Initial CV screening • Staffing administration
• HR Service Administration • Employee data mgmt • Leave scheduling & tracking • Attendance management
• Employee service • Employee helpdesk
• Application Support• ERP • CRM
• Portal Support• Content Management• IT Helpdesk
• Desktop Support • Networking Support • Web Support
• Strategic Sourcing • Spend analysis• RFX management• eAuction support
• Category Management • Sourcing support • Contract compliance management• Spend reporting
• Process Management • Invoice management• Custom analytics
Core
Su
pp
or
t
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Moving towards KPO
Established opportunities
• Customer interaction services
• Finance and accounts services
• Engineering design services
• HR services
• Animation
• Translation, transcription and localisation
Rapidly evolving opportunities
• Network management
• Distribution product development
• Data search, integration and analysis
• Marketing services
• Secretarial services
• Web site services
• Remote education
• Customer Analytics
Latent opportunities
• Equity Research
• Logistics management
• Consulting services
• Monitoring services
• Legal advice
• Medical advice
Source: NASSCOM McKinsey Study- India IT Strategies, Evalueserve
India KPO services market is expected to:
Grow from $1.2 Bn to $15.5 Bn in 2010
CAGR of 43%
Hold 71% of global KPO market in 2010 from 56% in 2004
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PATNI :-BPO SERVICES Mapping of BPO and KPO processes on complexity grid
BPO Knowledge Services (KPO)
High
Low
Code
Support
Revenue
Assurance
Customer
Support
Health Insurance
Application Processing
Web Content
Management
Revenue and
Benefits Admin
Claims
ProcessingDefined Contribution
Fund Administration
Actuarial
Services
Benefits
Coding
Expense Processing
High
Com
ple
xit
y
Knowledge Intensiveness
Financial
Reporting
IT Helpdesk
ERP/Apps Support
Payment
Processing
Credit Cards
Application Processing
AP / AR
Claims
Adjudication
Defined
Benefits
Health & Welfare
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Patni approaches towards Hiring and Retention
Selection Tools • Aptitude test• Language Proficiency Test• Technical TestGroup Discussions• Technical/Functional Interview• Final HR Interview
Hiring
• Retention Program: Bank @ Patni Plan • Well Defined Career Path • Quarterly Skip Levels Meetings• Competitive salaries • Quarterly Fun Outings• Reward & Recognition Schemes• Performance Based Incentives Schemes• Retention Programs• Compensation linked to performance• Employee Satisfaction Survey• Parents visit to facility
Employee Satisfaction & Retention
“Patni attracts the best talent in the industry by simply giving responsibility early on to its employees”- Business Today
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Patni’s key differentiatorsPast track record • Over 29 years of experience in servicing global clients
• Large strategic global relationships with Fortune 500 organizations
Integrated IT-BPO Solutions
• Patni’s IT & BPO organizations are tightly integrated • Joint Project Governance & Relationship Management
Flexible and Scalable Delivery Model
• Flexibility in engagement and program design• Flexibility in scaling-up operations• Agility in deployment of best-of-breed resources
Established transitioning methodology
• Robust Transitioning Toolkit & Program Migration Methodology • Offshoring Assessment through SCOPE methodology
Year-on- year productivity gains
• Year on year productivity gains to sustain significant cost benefits • Six Sigma based Process re-engineering and automation to enhance cost savings
Multi-lingual Support Capability
• Global Service Delivery Footprint • Experience in providing Multi-lingual Support from India & China covering languages like
English, Spanish, German, French, Chinese, Japanese and Mandarin
Six Sigma capability • Six Sigma based process improvements • Robust quality model to achieve defect free delivery • Operational best practices implementation
Competitive Pricing• Maximization of cost take-outs through competitive pricing model • Reward and Penalty based structure to drive competitiveness
Business Transformation capability
• Business Transformation and Consulting Practice to assist clients to draw a clear roadmap for redesign and improving business services
People practices • Best in class people management practices to attract and retain talent • Low attrition rate compared to industry standard