Business Process Outsourcing

An Industry Overview
Consulting Club, IIMC
 Introduction
 What is outsourcing?
 Why do companies
outsource?

 Moving from
outsourcing non-core
activities to
outsourcing core
activities as well…
Outsourcing to India

ITES : Information Technology Enabled Services

Software development, Data entry, Programming,
Web development services

BPO : Business Process Outsourcing

CRM, Medical Transcription, Call Centers

KPO : Knowledge Process Outsourcing

Financial Analysis, Legal Services

 Moving up the value chain

Current Top 10 Indian players
 Genpact  NASSCOM report:
 WNS  Value of total BPO
 Wipro BPO market in 2005
estimated at $5.1 bn
 HCL Technologies BPO
 Top 5 IT vendors have
Services
only 6.5% of the
 ICICI OneSource market
 IBM Daksh  1/3 of the market to big
 Progeon (Infosys) BPO companies
 Aegis BPO Services  1/3 to captives
 EXL Service Holdings  1/3 to smaller set ups
 24/7 Customer  Predicted consolidation
Outsourcing to India
What it takes to succeed
Success Defined by:

 Process and Industry Knowledge

 Technical and Operational Capabilities
 Service Models
 Alliances
 Financial Strength
 Change Management
 Ability to innovate
Challenges Ahead…
 Client Acquisition and Retention
 Retaining employees
 Productivity
 Quality and compliance issues
 Resource and Skill Gaps
 Funding
 Emerging Foreign Destinations
 Physical Infrastructure
 Smaller Firms Plight