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MARKETING RESEARCH .

BPO IN INDIA Compiled By Tasneem, Saurin, Shafi, Tommy & Murli

WHAT IS BPO? Business Process Outsourcing is the strategic use of outside resources to perfor m activities traditionally handled by internal staff and resources, none of whic h are core to the functioning of the company. It is a strategy by which an organ ization contracts routine functions to service providers who specialize in such functions. Thus the service provider is not only responsible for the execution o f a business process but also for improving it

HISTORY OF OUTSOURCING 1776 :-Adam Smith discovered competitive advantage through outsourcing. . K. American Express. 2000 :-Third Party players spring up in India. British Airways and General Electric(GE) start captive units in India.C. By 2005 e nd. Prahalad's core competency theory expounded in Harvard Business Sch ool. over 300 open shop in India and beyond. Some of them even set up operations outside. Swissair. 1970s-19 80s :.

. The $11-billion India n BPO industry will reach $30 billion by 2012.4 billion. The Indian BPO Industry employs 6 .00. of thi s the Indian BPO is estimated to be some US $11.000 people approx.MARKET SHARE The global BPO Industry is estimated to be worth 120-150 billion dollars.

GLOBAL GEOGRAPHICAL DISTRIBUTION OF BPO PROVIDERS .

WHY INDIA AN ATTRACTIVE DESTINATION FOR BPO Low cost staff Well positioned with ITES Large pool of Skilled workforce English Speaking workforce Conducive Environment Government Policy Support Cost reducti on up to 50% Low infrastructure Cost Favorable time lag:(12 hrs with US & 5 hrs with Europe) Improving Telecom Infrastructure to meet call centre requirements .

SEGMENTS IN BPO ~Segments~ Customer Care Human Resource Finance Market Research Network Consulta ncy Technical Support Collections Transaction Processes Accounting Administratio n Training .

.CALL CENTER & ITS TYPES A call center is a centralized office used for the purpose of receiving and/or t ransmitting a large volume of requests by telephone for business specific purpos es.

Genpact Wipro BPO ICICI One Source Progeon EXL Servi ce Holdings MphasiS BPO GTL Transworks Rank 2 4 6 8 10 12 14 Co.TOP 15 BPO COMPANIES IN INDIA Rank 1 3 5 7 9 11 13 15 Co. WNS(World Netwo rk Solution) HCL BPO Services IBM Daksh Aegis BPO Services 24/7 Customer Intelen et Global Services TCS BPO .

HOW MANY CALL CENTERS IN INDIA Result of a survey of 824 organizations throughout all the regions representing call centers India. (Chief officer of Callcentres. Philippines. which now has the most call centre seats in the region.net) . China.000 in 2003 up 65 per cent to 158. HongKong. Malaysia. Singapore & Thailand India.000 in 2004 Martin Conboy. would see their number rise from 96.

WHAT SECTORS DO THEY SERVE? Telecom Industry Travel & Hospitality Industry Technology Industry Banking/Financial ser vices Insurance Industry E-commerce & Retail Industry Industrial Sector Distribu tion Sector & many more .

SETTING UP A BPO Background Stability Research Employee Centric Vision Transparency Market Environment Certificates .

ATTRITION RATE IN BPO & OTHER SECTORS Sector 0-3 years 25% 20% 35% 40% 40% 7% 10% 16% 32% 4-7 years 10% 20% 25% 35% 30 % 3% 5% 11% 25% 8-12 years 5% 20% 20% 20% 20% 2% 2.5% 15% 10% 2% 2.46% .58% 2.46% 2.5% 11% 5% Pharmacy & Chemicals Manufacturing Financial Services Hospitality Ad & Media BPO Automobile Banking Infrastructure IT & Telecom 8.5% 7% 10% 13+ years 2% 3% 20% 7.

etter Solutions.WHY DO COMPANIES OUTSOURCE? Reduce Cost. Additional Expertise. B . Improve Efficiency. Overall Development of Outsourced Process. Specialized Technology. Concentration on Cor e Competencies.

.6 b illion in FY06-07.2% .CURRENT AFFAIRS OF INDUSTRY Indian IT-BPO industry records an overall growth of 28% in FY 2007-08 USD 39. According to the annual NASSCOM survey: growth of 28% with re venues of USD 52 billion FY07-08 The Indian IT-BPO industry’s resilience is reflec ted in its FY07-08 with a 28. The target of USD 60 billion in exports by FY0 9-10.

4 million pe ople Financial meltdown in the US Decline from 50% to 33% in finance and insuran ce sectors. BPO increasing at an annual growth rate of 50% during 2004-06. Estimated 5000-8000 lose job in BFSI NASCSCOM: short term and compan y specific. .CURRENT AFFAIRS OF INDUSTRY CONTD… Barrack Obama outsourcing views and US presidential elections. By 2006 will employ 0.

fash ion. apparel or automobile components Customer relation management (CRM).FUTURE OUTLOOK o o o New horizon: specialized services to newly emerging industries like retail. . Improv ing between the government and industry.

FUTURE OUTLOOK o o CONTD… o o o o Great number of employment up to 0.4 million Large number of English speaking co llege graduates. More and more foreign technological firms setting up Limited wo rk skills and experience Neglect in the system Media industries .

RISE IN RUPEE VALUE LEADS TO FALL IN OUTSOURCING The Indian rupee has been appreciated against the dollar in the last 1 year. Better to have a job t han to have no job . The world economy is going through recession. Core Ob jective of outsourcing to India has been affected. Inflation in country has adde d problems.

COUNTERACT Flexibility in Operations Result Oriented Solutions Beyond Cost Saving Knowledge Industry (Specific) Go Develop .

WHAT MORE SHOULD BE DONE ? Farm & Hunt Strategy should be implemented Farm for more projects from existing clien ts Farm for more projects from new clients Hunt for new business in same industr y domain Hunt for new business in new sectors & Industries .

WHAT MORE SHOULD BE DONE ? People seeking a career in BPO Industry should develop Industry Knowledge Understand Re tail & Banking better Campus programme should be introduced in partnership of th e BPO Co. to enhance curriculum & create sensitization Industry should become mo re outcome based & think solution rather than just transactions. .

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Always make your total effort. even when the odds are against you. .