Title industry) Subject Program Level / Semester Name of Student Word count Word Limit

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BPO Services (Service MABD GPBL SEM 1 Girish Masur 1050 2000


Table of Content

S.NO 1. 2. 2.

Content Introduction – Service sector in India BPO Industry in India- A Report

Page(s) 5 6 7

Progeon- Infosys BPO





Product life-cycle






BPO Service
Service Sector in India Introduction Service Sector in India today accounts for more than half of India's GDP. According to data for the financial year 2006-2007, the share of services, industry, and agriculture in India's GDP is 55.1 per cent, 26.4 per cent, and 18.5 per cent respectively. The fact that the service sector now accounts for more than half the GDP marks a watershed in the evolution of the Indian economy and takes it closer to the fundamentals of a developed economy. Services or the "tertiary sector" of the economy covers a wide gamut of activities like trading, banking & finance, infotainment, real estate, transportation, security, management & technical consultancy among several others.

BPO Industry in India- A Report
Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A BPO differentiates itself by either putting in new technology or applying existing technology in a new way to improve a process.


Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider that in turn owns, administers and manages the selected process based on defined and measurable performance criteria. Business Process Outsourcing (BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES) industry. Few of the motivation factors as to why BPO is gaining ground are: • Factor Cost Advantage • Economy of Scale • Business Risk Mitigation • Superior Competency • Utilization Improvement Different Types of Services Being Offered By BPO's 1. Customer Support Services

Technical Support Services

3. Telemarketing Services 4. Employee IT Help-desk Services 5. Insurance Processing


Infosys BPO
The company was started as Progeon Limited in April 2002 and is today among the top third-party BPOs in India according to NASSCOM. It was started as a 74% and 26% joint venture between Infosys and Citibank Investments. In 2006 Infosys bought out Citibank's share at a price of Rs 592 per share, Citi having invested at Rs 0.20 per share. Initially, the CEO was Akshaya Bhargava, who was formerly in Citibank. Bhargava left the organisation in 2005 and Amitabh Chaudhry, the COO took over as the CEO. It has its headquarters in Bangalore and has operations in • Chennai, India • Gurgaon, India • Jaipur, India • Pune, India • Monterrey, Mexico • Łódź, Poland • Brno, Czech Republic • Bangkok, Thailand • Hangzhou, China • Manila, Philippines

• Geographic


Region: BPO service has a strong impact on the southern part of India because of the large development and presence of IT companies. Cities like Bangalore, Hyderabad, Chennai, Mysore all together constitute the silicon valley of India and hence makes a strong target market for BPO industry. Recently, there has been a great rise for BPO market in the northern part of India like Delhi, Noida, Gurgaon. Urban areas: BPO services has a strong demand in urban areas/bigger cities as the population in such cities are educated and do not have enough time for most of the things and hence largely depend on BPO services. Most of the BPO services are given via telephone/mobile phones or internet and hence require skilled and educated people to understand the services provided by such services. Rural areas: The services provided by BPO industry are minimal or absolutely zero in the rural area as the majority of the population is illiterate. Also the telephone service or internet service in rural area restricts the usage of this service.

The demographic segmentation plays a very important role in the usage of BPO services. This segment involves a large spectrum of people from different categories like age, gender, occupation, education etc.

Age(23- 50) Age is an important factor here. The main target for the BPO industry is the working class people who do not enough time for other important things. E.g. People who do not have time to go to the nearest bank and transfer money can call up the customer service and do the transfer.


Age(14-22): Other important age group is the college going public who are the major user of the mobiles/cell phones. Such segment also makes use of BPO services on a large scale. E.g. all the mobile phone service related issues are served by the BPO services. Gender: Males are the major consumers of the BPO services as compared to females because they hold a majority under the working class people.

Females are not a very strong consumer as compared to males. Education : Education here plays a really important role as not many people know about the services offered by the BPOs today. 8 out of 10 people who make use of the BPO services are literates.

• Generation Today’s generation is fast moving and largely depends on mobile phones and internet. Hence BPO plays a very important role for the new generation people as it offers most of the services via internet and mobiles. E.g. Most of the people today use internet for shopping and buying stuff online. BPO services give such people support about the product dispatch numbers, total cost and new offers.

• Psychographic Psychographic segmentation is sometimes also referred to as behavioral segmentation. This type of segmentation divides the market into groups according to customers’ lifestyles. Lifestyle: Modern family or the new/young generations are the major consumers or receivers of the BPO services. E.g. Most of the people these days use credit cards and net banking services. Most of the post service after the usage of such facilities is provided by BPOs. 7

Product life cycle of BPO services
Phases Introduction: BPO industry started in early 1980s in India with the help of some European airlines. Several European airlines started using Delhi as a base for back office operations, British Airways being one among them. The BA captive was finally spun off as a separate organization called WNS Global Services in 2002.

Growth: The Indian BPO market is estimated to have grown from $4.6bn in 2004 to $6.3bn in 2005, recording a growth of nearly 48 per cent – accounting for 27 percent of total software and services exports. Maturity: After a fast growth in Indian market, BPO reached a maturity level in 2006-2007. Due to economic slowdown, the growth rate was slow.


Decline: Due to global meltdown, recession and mainly because of the major impact on America’s economy the BPO industry started experiencing decline in its growth and sales.

Bibliography • Philip Kotler • Wikipedia • http://tutor2u.net/business/marketing/segmentationpsychographic.html


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