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 WNS Wipro BPO HCL Technologies BPO Services ICICI OneSource IBM Daksh Progeon (Infosys) Aegis BPO Services EXL Service Holdings 24/7 Customer NASSCOM report:


Value of total BPO market in 2005 estimated at $5.1 bn Top 5 IT vendors have only 6.5% of the market

1/3 of the market to big BPO companies 1/3 to captives 1/3 to smaller set ups 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