A SUMMER INTERNSHIP REPORT

ON

“HUMAN RESOURE MANAGEMNT PRATICS IN BPO & RPO

INDUSTRY.”
Submitted to:
Dr. A.P.J. Abdul Kalam Technical University, Lucknow

In the partial fulfillment for the award of the degree of

Master of Business Administration
(Degree Programme of Dr AKTU, Lucknow)

Batch: 2021-23
Under the Guidance of:
Mrs. RINKEY SHARMA
Designation: ASSISTANT PROFESSOR

Submitted by:
VAISHALI CHOUDHARY
MBA- III Sem
ROLL NO. 2101280700048

SCHOOL OF MANAGEMENT
BHARAT INSTITUTE OF TECHNOLOGY
PARTAPUR BY PASS ROAD, MEERUT

.
 BHARAT INSTITUTE OF TECHNOLOGY, MEERUT (UP)
(Affiliated to Dr. A.P.J. Abdul Kalam Technical University, Lucknow)
BY- PASS ROAD PARTAPUR, MEERUT – 250103

Date: ………………….

TO WHOM IT MAT CONCERN

This is to certify that Mr./Ms……………………………………………………….is a bonafide student

of MBA 3rd semester in our Institute. He/ She has submitted the Research Project Report

titled………………………………………………………………………………………………………

……….. to fulfill the partial requirements of Dr. Abdul Kalam Technical University, Lucknow. He/ She

has completed Research Project Report under the guidance of Mr. / Ms. / Dr.

………………………………………...........................

Name of Project Guide Dr/Mr/Ms ………..

Prof Mr. RAKESH KUMAR
Designation:
Director
School of Management
School of Management

2
 DECLARATION (STUDENT’S)

I VAISHALI CHOUDHARY hereby declare that the work presented in this report entitled “SUMMER

TRAINING TITLE” HUMAN RESOURE MANAGEMNT PRATICS IN BPO & RPO INDUSTRY

was carried out by me. I have not submitted the matter embodied in this report for the award of any

other degree or diploma of any other University or Institute.

I have given due credit to the original authors/sources for all the words, ideas, diagrams, graphics,

computer programs, experiments, results, that are not my original contribution. I have used quotation

marks to identify verbatim sentences and given credit to the original authors/sources.

I affirm that no portion of my work is plagiarized, and the experiments and results reported in the

report are not manipulated. In the event of a complaint of plagiarism and the manipulation of the

experiments and results, I shall be fully responsible and answerable.

(Candidate Signature with date)

VAISHALI CHOUDHARY

MBA – III Sem

ROLL NO. 2101280700048

3
 ACKNOWLEDGEMENT

I hereby extend my sincere thanks to our institute, all the faculty members. I would
like to express my deep sense of gratitude to my supervisor and Project Guide Mrs.
RINKEY SHARMA Assistant Professor Management Department, BIT Meerut
whose valuable guidance helped me in completion of this report successfully. He
constantly advised and encouraged me to complete the task within time frame. I am
also thankful to all the faculty of BIT without whose blessings this project could not
have taken the present form. . Also I am thankful to Mr. RAKESH KUMAR
DIRECTOR Finally I take the opportunity to put on record the deepest sense of
regard and respect to my parents, who enabled me to make this project complete.

With my due regard I wish to express my heartfelt appreciation to many people, who
helped me directly and indirectly to complete my Research Report and this report too.
I would also wish to express my thanks to all the staff members of personnel
department under whom I completed my training as they have provided me valuable
guidance, timely advice and communication during my training.

VAISHALI CHOUDHARY
MBA –III Sem
ROLL NO. 2101280700048

4
 PREFACE

Decision making is a fundamental part of the research process. Decisions

regarding that what you want to do, how you want to do, what tools and techniques

must be used for the successful completion of the project. In fact It is the researcher’s

efficiency as a decision maker that makes project fruitful for those who concern to the

area of study.

Basically when we are playing with computer in every part of life, I used it in my

project not for the ease of my but for the ease of result explanation to those who will

read this project. The project presents the role of Study of effect of marketing in

mobilization in BPO segment

I had toiled to achieve the goals desired. Being a neophyte in this highly competitive

world of business, I had come across several difficulties to make the objectives a

reality. I am presenting this hand carved efforts in black and white. If anywhere

something is found not in tandem to the theme then you are welcome with your

valuable suggestions.

5
 EXECUTIVE SUMMERY

The MBA programme is well structured and integrated course of

business studies. The main objective of practical training at MBA level is to develop

skill in student by supplement to the theoretical study of business management in

general. Industrial training helps to gain real life knowledge about the industrial

environment and business practices. The MBA programme provides student with a

fundamental knowledge of business and organizational functions and activities, as

well as an exposure to strategic thinking of management.

In every professional course, training is an important factor.

Professors give us theoretical knowledge of various subjects in the college but we are

practically exposed of such subjects when we get the training in the organization. It is

only the training through which I come to know that what an industry is and how it

works. I can learn about various departmental operations being performed in the

industry, which would, in return, help me in the future when I will enter the practical

field.

In todays globalize world, where cutthroat competition is prevailing in

the market, theoretical knowledge is not sufficient. Beside this one need to have

practical knowledge, which would help an individual in his/her carrier activities and it

is true that “Experience is best teacher”.

6
 TABLE OF CONTENT

CHAPTER TITLE

1 INTRODUCTION

2 REVIEW OF LITERATURE

3 OBJECTIVES OF THE STUDY

4 RESEARCH METHODOLOGY

5 DATA ANALYSIS AND INTERPRETATION

FINDINGS, SUGGESTIONS AND

6
RECOMMENDATIONS OF THE STUDY

7 CONCLUSION

LIMITATION OF THE STUDY AND SCOPE FOR

8
FURTHER STUDY

ANNEXURES

1. QUESTIONNAIRE

2. BIBLIOGRAPHY

7
 OBJ0ECTIVES OF THE PROJECT

 To study the effect of BPO’s of india.

 To understand the basics of the telecom sector industry and effect of the BPO

service strategies in Indian market.

 To know details of BPO

 Performance and progress of BPO Industrie

INTRODUCTION

(BPO)

Around 30 years ago in the USA, the travel and hospitality industry began

to centralize their reservation centers into what we would recognize now as huge call

centers. This happened at around the time the first large-scale high-volume premise-

based telephone switches became available. Banks have also used them since the

1970s at least, and later in that decade, with the rise of the catalogue shopping

movement and outbound telemarketing, call centers became a staple within many

industries. Each industry, however, had its own way of operating centers, its own

standards for quality, and its own preferred technologies. This trend persisted until

8
early in the 1990s, when call center managers became more recognized as having a

consistent set of skills and an operational knowledge.

Technologically speaking, call centers have advanced in the last ten years.

Earlier, it was

just a labour intensive department trying to handle some customer queries. Now, it is

supposed to be a vital link in the entire process of marketing and improving customer

interaction. Unlike an airline reservation where the queries are generally simple and

easy to handle, requirements of a technology customer support are different and need

technical knowledge. A pre requisite for any call handling person is extremely good

customer relationship skills and command over language accent.

India has woken up to the call of Business Process outsourcing and is fast

paving its way to become the largest hub of call centers(BPO) in the world. Taking

leverage from this growing phenomenon, Call Centers(BPO) in India has devised a

clear and competent business strategy where in you post in your query and we act as

an intermediary, forwarding your requirements to our concerned (BPO)call-center-

service providers. In this manner, our motive of providing complete support to our

customers in terms of answering any of their queries remains fulfilled. Call Centers

(BPO)in India is a leading Indian customer care organization, having alliances with

leading BPOs in India who ensure fast and prompt service. We offer a range of

blended customer care services including inbound and outbound voice services, E-

9
mail management, telemarketing services, data conversion, claim processing, real-time

web-based chat services to global clientele and the like. A call center is traditionally

defined as a physical location where calls are placed or received in high volume. This

may be for the purpose of sales, marketing, customer service, telemarketing, technical

support, or other specialized business activities.

DEFINITION

A Business Process Outsourcing or call center is a physical place where customer and

other telephone calls are handled by an organization, usually with some amount of

computer automation. Typically, a call center has the ability to handle a considerable

volume of calls at the same time, to screen calls and forward those to someone

qualified to handle them, and to log calls. Call centers are used by mail-order catalog

organizations, telemarketing companies, computer product help desks, and any large

organization that uses the telephone to sell or service products and services. Two

related terms are virtual call center and contact center.

Call center is a centralized office of a company that answers incoming

telephone calls from customers or makes outgoing telephone calls to customers. They

can handle a considerable volume of calls at the same time and can also log calls. It is

the focal point of customer service for most companies today. Using a variety of

technologies including computer automation, call centers connect the customer and the

10
organization to meet customer’s need in real time. Centers have application in many

industries offering customer service. Many organizations use call centers to solicit

clients or customers for new sales or donations and contributions. They can also be

used to accomplish surveys of customer satisfaction or public opinion. Call centers

also known as contact centers.

Call centers can be any of the following:

 Huge telemarketing centers

 Fund-raising and collection organization

 Help desks, both internal and external

 Outsourcers (better known as service bureaus) that use their large capacity to

serve

Lots of companies

Reservation centers for airlines and hotels Catalogue retailers "E-tailing" centers and

e-commerce transaction centers that don't handle calls so much as automated customer

interactions

11
BPO [Business Process Outsourcing]

BPO has been the latest mantra in India today. As the current sources of

revenue face slower growth, software companies are trying new ways to increase their

revenues. BPO is top on their list today. IT services companies are making a quick

entry into the BPO space on the strength of their existing set of clients. We hope to

address all issues related to BPO in India on this portal. Business process outsourcing

is the fastest growing segment in the outsourcing market as of now and involves

outsourcing back office operations and other business processes like customer

relationship management, customer call centers, telemarketing, Payroll maintenance,

finance/accounting management among others to offshore destinations. By

outsourcing their business processes the companies can increase their productivity, cut

operational costs, provide better customer service, beat competition and in turn

concentrate on their main operations by shifting their back office operations to

offshore destinations. These are the reasons that companies no matter how big or small

they are prefer to outsource their operations and in a frantic pace they have turned this

normal phenomena in to a major hype. The Business process outsourcing industry is

opening up and people are beginning to realize that outsourcing is a win-win situation

for everyone and a trend that is as unavoidable as globalization itself.

12
1. The basic or traditional type of outsourcing services. It is to curtail direct costs, such

as

Hard ware and software maintenance and operation costs.

2. Outsourcing helps lower "indirect" costs and achieves efficiencies in areas related to

business processes this is termed Business Process Outsourcing.

3. The Business Transformation Outsourcing. In today’s world BPO has changed from

definition to buzzword.

BPO today directly means to the second type of outsource that is outsourcing the

'lower indirect costs.

‘Now-a day companies prefer to outsource these services. It is a new concept. "Call

Centers" are the BPOs

that outsource only the customer care. In simple language the BPO or Business

Process Outsourcing is the

delegation of one or More business processes to an external service provider who

in turn provides services

for the selected process based on certain defined and measurable performance

criteria specified by an

organization. This generally involves an organization's non-core processes.

BPO companies are the companies who extend the services

to the outsourcing

13
 companies. Companies believe assigning lower cost business processes to the

BPOs will provide superior

service more responsively at lower cost. As customer care is a low cost and clumsy

business process,

companies prefer to assign it to outsource to the Business Process Outsourcing

companies

Business process outsourcing (BPO) contains the transmission of processes along with

the

associated operational activities and responsibilities, to a third party with at least a

guaranteed

equal service level and where the client contains a firm grip over the (activities of the)

vendor for mutual long term success. BPO is positively related to the search for more

efficient organizational designs, cost reduction, productivity growth and innovative

capabilities. Hence, it is a source for strategic advantage. Traditionally, BPO is

undertaken by manufacturing firms. For instance Coca Cola, where almost the entire

supply chain is outsourced and the company is essentially becoming a marketing

organization. However, BPO is nowadays rapidly conquering the service oriented

firms as well. A well-known example is provided by the Bank of America, who

outsourced their entire HR function to Exult, one of the leading Human Resources

BPO vendors.

14
BPO is often divided into two categories:

 BACK OFFICE OUTSOURCING –

It includes internal business functions such as billing or purchasing

 FRONT OFFICE OUTSOURCING –

it includes customer-related services such as marketing or tech support The endless

opportunities IT provides, stimulates (cross-border) BPO activities. BPO that is

contracted outside a company's own country is sometimes called offshore outsourcing.

BPO that is contracted to a company's neighboring country is sometimes called near

shore outsourcing. Use of a BPO as opposed to an application service provider (ASP)

usually also means that a certain amount of risk is transferred to the company that is

running the process elements on behalf of the outsourcer. BPO includes the software,

the process management, and the people to operate the service, while a typical ASP

model includes only the provision of access to functionalities and features provided or

'served up' through the use of software, usually via web browser to the customer. BPO

is a part of the outsourcing industry. It is dependent on information technology; hence

it is also referred to as information technology enabled services or ITES. Knowledge

process outsourcing and legal process outsourcing are some of the subsets of business

process outsourcing. Companies are moving their non-core business processes to

15
outsource provider’s i.e. call center. If a bank shifts work of a 1000 people from US to

India it can save about $18 million a year due to lower costs in India.

BPO saves precious management time and resources and allows focus

while building upon core competencies. The list of functions being outsourced is

getting longer by the day. Call centers apart, functions outsourced span purchasing and

disbursement, order entry, billing and collection, human resources administration, cash

and investment management, tax compliance, internal audit, pay roll...the list gets

longer every day. In view of the accounting scandals in 2002 [Enron, WorldCom,

Xerox etc], more and more companies are keen on keeping their investors happy.

Hence, it is important for them to increase their profits. BPO is one way of increasing

their profits. If done well, BPO results in increasing shareholder value.

KPO (KNOWLEDGE PROCESS OUTSOURCING)

KPO, Knowledge Processing Outsourcing It is essentially an offshoot of BPO. It is

the high end activity of the BPO industry and is estimated to have a magnificent

growth in the coming years. It is a wave that has lashed the Indian shores and aims to

tap the Indian talent in the fields that require expertise and enhanced knowledge. In

short, KPO involves off shoring of knowledge intensive business processes that

require specialized domain expertise.

16
India's Intellectual Potential

India's intellectual potential is the key factor for India being the favored destination for

KPO

industry. India has a large pool of knowledge workers in various sectors and their

talent is being discovered and tapped by leading businesses across the globe. Cost

savings, operational efficiencies, access to a highly talented workforce and improved

quality are all underlying expectations in off shoring high-end processes to India.

 KPO Services Outsourced to India

 India is a good outsourcing location. There are several services that can be

outsourced to India:

 Research & Development

 Business and Technical Analysis

 Learning Solutions

 Animation & Design

 Business & Market Research

17
  Pharmaceuticals and Biotechnology

 Medical Services

 Writing & Content Development

 Legal Services

 Intellectual Property (IP) Research

 Data Analytics

 Network Management

 Training & Consultancy

Challenges in KPO

KPO is an outsourcing industry that delivers high value to organizations in terms of

domain based processes and business expertise. The industry demands advanced

analytical and specialized skill of knowledge workers and therefore faces several

challenges.

18
The major challenges faced by KPO are:

 Maintaining higher quality standards

 Investment in infrastructure

 Requirement of higher level of control

 Lack of talent pool

 Enhanced risk management

19
 TYPES OF MARKETING IN MOBILIZATION

IN BPO SEGMENT

Business Process Outsourcing may be divided into various

types according to their functions and areas of operation.Most commonly Business

Process Outsourcings are divided into inbound call center and outbound call

center. In an inbound call center, agents receive calls from customers who need to

obtain information or report a mal function.

In an outbound call center, agents initiate a call to a customer

mostly to sell a product or a service.

Types of segment in Business Process Outsourcing

1. CRM Call Center

2. Inbound Call Center

3. Interactive Call Center

4. Outbound Call Center

5. Phone Call Center

20
6. Tele-Marketing Call Center

7. Virtual Call Center

8. Web Enabled Call Center

CRM Call Center

The CRM software integrates all the forms of customer contact into a

central history database where they can be retrieved or viewed together. Using CRM

software, a customer issue can be tracked from the original point of contact through to

resolution.

CRM call centers help companies realign their entire organization around

customers. And thus, is a strategic business initiative. Sales, Marketing and Service as

well as other groups are connected and coordinated through the CRM applications.

Before a call is made to the customer, all recent activity for that customer should be

reviewed to be informed of recent events. Then a sales strategy needs to plan based

upon observed opportunities. The use of CRM software in the Business Process

Outsourcing allows the assignment of a value to each customer if the culture supports

that philosophy.

21
 With that feature, one can choose how to interact with that customer. CRM

helps the company identify most valuable customers and understanding their lifetime

values. Using CRM, the call centers design the organization systems and service to

best meet the needs of customers and maximize their value. CRM is intended for long-

term relationship building. Besides capturing the different forms of customer

interaction, CRM allows you to capture and store all available customer information in

the central history database. This allows agents the ability to pull up a customer's

entire history while the two interact. Communication and service are more effective

and efficient. Most CRM products also track trends in purchasing and customer

feedback.

22
Inbound Call Center

An inbound centre is one that handles calls coming in from

outside, most often through toll free numbers. These calls are primarily service and

support calls, and inbound sales. The services of inbound call centers are designed to

handle catalog orders, help desk queries, dealer locations and more. They offer

customized services that are designed to meet there quirements of all kinds of

businesses. The inbound call centre professionals process calls and integrate

Interactive Voice Response (IVR) and/or Internet services to sell additional product

send offer services in a dedicated environment.

They also integrate customer care services, predict customer

behavior and take action, while the customers are still on the line. The inbound call

center employ a dedicated team of live operators, account representatives and program

managers. Offering 24/7 operator availability for the customers, these call centers

provide round-the-clock account management. The teams of qualified and trained

operators understand the business, products and services and perform to deliver their

best. Using advanced telephone service technology and programming, these call

centers lay great emphasis on attention to detail in messaging and reporting of all

inbound calls. Inbound call centers offer communication services specifically designed

to maximize the efficiency of direct marketing efforts or to be a part of the technical

support team of the clients.

23
 They work together with you as a partner building a strong,

successful long-lasting relationship with customers. Inbound Call Center offer

Business Process Outsourcing

 Skilled, professional, customer support and technical service representatives

 Improved market coverage

 Faster ramp-up, launch, and roll-out of new campaigns

 Experience with programs similar to yours

 Rapid response to market conditions

 Account management expertise

 Enhanced reporting capabilities

 Market testing capabilities

24
Interactive Business Process Outsourcing

Interactive call center is a central point in an enterprise from which all customer

contacts are managed. These include one or more online call centers. More companies

are turning to interactive providers to outsource everything from lead generation and

survey calls to order processing. They provide great opportunity to improve customer

service levels, increase productivity and save money. The only secret behind

interactive call centers is a technology known as interactive voice response (IVR) that

automates interaction with telephone callers. Customers require high levels of

availability and interactivity and IVR is one of the most essential way of providing 24

hours service.

 Provide 24x7 custom, friendly services, cost-efficiently.

 Offer nationwide customer "self service" with optional redirect to live agents.

 Automate routine and complex transactions that traditionally required

processing by anagent.

 Eliminate the cost of staffing for unpredictable peaks and valleys of incoming

calls.

25
  Avoid the expense of training agents and installing cutting-edge call center

equipment.

 Provide high-response capability for weekends and off hours

Outbound Call Centre

The success of the Outbound Call Centers depends on the extensive

experience, technological solutions, quality assurance programs and commitment to

customer service excellence that further ensures maximum results from the direct

marketing efforts.

The integrated call management systems in the outbound call centre

facilities use, systematic

calls to consumers and transfer successful connections to a designated marketing

representative (MR) who is dedicated and has been trained for the specific client

application. As a call is presented to the MR, the consumer's name, address, and other

available information are simultaneously presented on the MR's workstation along

with a client's customized script.

 Services of Outbound Call Centers:

 Market Intelligence

26
  Database Selling

 Direct Mail Follow-up

 Lead Generation \ Qualification \ Management

 Seminar Population

 Product Promotion

 Debt Collection

 Information and Literature Fulfillment

 Appointment Scheduling

 Decision Maker Contacts

 Up Sell/Cross Sell Campaigns

 Surveys

27
  Customer Satisfaction

Phone Call Center

The phone call centers offer flexible call routing, superior IVR

capacity and predictive dialing Systems. Utilizing advanced telephony and Internet

technology; the Customer Service Representatives (CSRs) in the phone call centers

provide accurate and timely information for the most complex inbound or outbound

programs. The phone call centers offer personalized call management by a team of

professional operators who know about the client and his business.

The phone call centers provide 24/7 answering and business

services that help keep the customers satisfied. This is essential as the call centers

could be losing customers because of not answering the phone when they called and

also as they expect answers to questions immediately. The customers expect the call

centers to work around their busy schedules. The call centers are equipped with top-

of-the-line communications technology.

28
Telemarketing Call Center

Telemarketing refers to the business or practice of marketing

goods or services by telephone. It is the act of selling, promoting or soliciting a

product over the telephone. Reliable telemarketing is an essential part of the

organization's working to enhance sales and increase profits. Combining the best of

personnel, processes and progressive technologies, telemarketing call center serve as

highly reliable specialist resource for organizations seeking outstanding performance

and results.

The telemarketing call centers provide customized telephone

services that reveal the valued techniques used by successful telephone sales and

support professionals. The fully automated, state-of-the-art call center equipments and

custom software enables the call centers to field thousands of calls daily for each

client with a high degree of professionalism and customization. The clients receive

superior quality, experience and courteous service, coupled with the advanced

technical capabilities.

The call centers are staffed 24x7 and 365 days and they totally

concentrate on using the tactical skills and effective processes during

inbound/outbound call process.

29
Virtual Call Center

Virtual call center is a call center in which the organization's

representatives are geographically dispersed. These people are not situated at work

stations; they rather work from their homes or in small number of groups. People in

small groups may open small centers to work. It provides the ability to extend the CSR

desktop and telephony support to any place on the planet.

Virtual call center is simply defined as an approach to enterprise

wide call center management that treats several geographically dispersed call centers

as one. These call centers are largely inbound in function and are gaining popularity as

companies look for alternatives to running a traditional, in-house call center or using

an offshore outsourcer.

Web Enabled Call Center

A web enabled call center improves the e-commerce initiatives by offering high

quality customer service. Various features offered by web enabled call centers are:

30
 Web Pop that automatically provides CSRs with a pop-up screen of

client's website,

intranet or web script.Web Callback that helps the visitors of the client's website

request a callback from the

CSRs by simply clicking and entering their name, telephone information and time for

call. Web Chat that assists visitors engaged in a live, two-way text chat directly from

client's site to a trained agent. They can obtain answers to questions or resolve

customer service issues without having to disconnect from the Internet or use a phone.

Web Push allows CSRs to assist client's website visitor to find out information

through guided "browsing." Email Management this manages high-volume email

inquiries directed to client's mailbox or produced via a Website. The incoming

messages are tracked and provided an appropriate auto reply message to the customers

letting them know that their email has been received.

31
BUSINESS PROCESS OUTSOURCING TECHNOLOGY & MANAGEMENT

Business Process Outsourcing Technology

 Answering Service Software

o Automatic Call Distribution (ACD)

o Call Center PBX

o Call Recording and Call Monitoring Solution

o Call Track Software

o Communication Software

o Computer Telephony Integration (CTI)

o Contact Management Software

o CRM Solutions

o Digital Call Recording

o E-CRM

o Emergency Alert Systems

 Help Desk Software

2. Interactive Voice Response (IVR) Technology

32
  Open IVR Software

 Phone System Auto Dialers

 Predictive Dialing

 Programmable / Soft Switches

 Remote Access Software

 Soft Phone

 Telecommuting Software

 Text to Speech (TTS) Software

 Voice Messaging

 Voice Recognition

 VOIP

33
  Windows Over Web

Answering Service Software

Answering service software is software that provides answering service systems to

customers

Telephone Answering Service Applications includes

 Account Status

 Locator Services

 IVR Outsourcing Services

 Shipment Tracking

 Employee Testing/Studies

 Customer Surveys & Loyalty Programs

 Market Research

34
  Payroll Services

 800 Service Voice Mail

 Claims Reporting

 Emergency Notification

 Credit Collections

 Mortgage Marketing

 Charitable Contributions

35
ACD (Automated Call Distribution)

ACD facilitates controlling the distribution of telephone calls coming into the

department. ACD systems are call routing utilities for incoming calls and can be even

used to route calls originated by the predictive dialer to the next available agent. The

staff log in/out of the ACD system as they are available, and the system answers the

calls and

distributes them. When staff are unavailable, the ACD systems holds a call in queue

and then forwards it to the first available staff member. Automatic call distribution is

ideal for areas where multiple staff answers a high volume of calls e.g.

 Help desk

 Appointment scheduling

 Message taking

 Properly managing calls can be key in providing excellent customer service, and

the ACD

 System provides the tools needed to optimally manage incoming calls.

36
Some of the tools an ACD systems offers are:

• Call Type Priority

The organization can customize the way its staff answers calls using several variables,

including the caller’s location (on-campus or off-campus, local or long distance) or the

purpose of the call (help assistance, appointment scheduling).

• Customizable Queue

The organization can record Custom Announcements that callers hear when their call

is answered or while they are waiting in the queue. It can also add the Music on Hold

feature.

• Training Supervision

Supervisors can monitor calls to support employees and evaluate performance.

37
• Call Metrics

The system can capture call statistics (e.g., call volume, length of calls, time in queue

etc.) On a scheduled or an ad hoc basis, allowing further managing the staffing and

calling flow. Almost any business can benefit from an ACD system but they are

particularly useful to customer service centers, inbound service bureaus (that may be

handling infomercials or direct marketing campaigns) and government agencies.

Call Center PBX

PBX is an acronym for polymer bonded explosives. It is also called private branch

exchange. It is a small telephone system within a call center that switches calls

between call center agents on local lines allowing all users to share a certain number

of external phone lines. The main purpose of the PBX system is to save the cost of

requiring the number of telephone lines used in an enterprise.

PBX includes:

 Telephone trunk (multiple phone) lines that terminate at the PBX

 A computer with memory that manages the switching of the calls within the

PBX and in and out of it

 The network of lines within the PBX

38
  Usually a console or switchboard for a human operator

Features of PBX

 Even load distribution

 Skill based call routing

 Self managed agent presence

 Queue optimization

 Overflow queues

 Protected queues

 Call waiting signals

 Custom on hold information

 Real time monitoring

 Queue logs

Functions of PBX

 PBX performs three main functions:

 Establishing connections (circuits) between the telephone sets of two users.

 Maintaining such connections as long as the users require them.

 Providing information for accounting purposes

39
Call Recording & Call Monitoring Solutions

Call recording and monitoring solutions help to train the agents and

improve customer service. They are designed to be a complete call center solution

including Predictive Dialing, ACD, IVR, and Digital Voice Recording. Call recording

plays a significant role in the call centers and help monitor agent performance while

performing quality assurance tasks. Order entry verification and confirmation can be

easily accomplished when the calls are recorded. Call centers can thus, record and

retrieve phone conversations in real time.

The recording can be customized to meet virtually any set of business

rules. The call recording and monitoring systems are very scalable and flexible

Windows-based voice recorders live monitoring and archiving systems. Besides being

fully prepared for all current and future needs, they offer superior voice recording

quality and huge recording capacity by effectively using this software system the

organizations can manage:

 Complete contact management

 Call history

 Order entry

 Literature fulfillment

The features of call recording and call monitoring can also be added to the Computer

Telephony (CTI) Soft phone and API library, allowing application programmers to

40
embed call recording and retrieval features in existing PC, Linux/Unix, or Web

applications. Call recording can thus, be a standard feature within any existing

application that requires a phone interface.

Features of Call Recording and Monitoring Solutions

 Call Center recording, logging and monitoring

 Quality and service assurance

 Verbal transaction recording:

 agent training and efficiency improvements

 follow up information

 Financial and stock dealing

 Telephone order applications

 Superior voice recording quality

41
  Encrypted and access secured voice file storage and playback

 Fully configurable recording parameters

 Built in phone book with import facility for your relational database

 Local and/or LAN/WAN call playback and monitoring

 Advanced user, application and security / access management

 Automatic multiple hard disk content and capacity management

 Extensive search, filter and storage marking capabilities

Call Track Software

Call Tracking Software is software that automates the process of receiving and

responding to customer phone calls.

42
Benefits of Call Tracking Software

 Effectively eliminate calls from falling through the cracks and reduce the

number of unresolved calls

 Log calls easily through a Windows interface or Web interface.

 Increase service levels by resolving calls faster.

 Decrease the number of calls received by your call center.

 Provide 24/7 customer support.

 Automatically escalate issues or notify agents of important changes or details.

 Provide faster response time to customer calls.

Communication Software

Communication software is software that makes it possible to send and receive data. It

is also called AT Command Set. It is a powerful software infrastructure solution that

43
offers end to end communication needs. It coordinates the information flow between

interconnected components in the multitude of networks that are ubiquitous in life: the

Internet, the telephone network, wireless systems and pagers, banking networks,

distributed databases, etc. It also allows call center agents to operate efficiently

through convenient and reliable Internet access to the information and applications

they need.

Communication Software includes:

Instant messaging is the act of instantly communicating between two or more people

over a network such as the Internet.

Electronic mail, abbreviated e-mail or email, is a method of composing, sending, and

receiving messages over electronic communication systems.

CTI Software

Computer Telephony Integration (CTI) is the advanced technology that serves as the

focal point of the working of modern call centers. It integrates the organization's

computer and telephone systems and the facilitates effective applications to make

every phone call, inbound and outbound.

44
Features of CTI Software

Launch PC/WEB applications - Specific PC, Unix or Web applications can be

automatically launched using the telephony software based upon data provided by

your phone system.

Caller Identification (Caller ID or ANI) - Information from the existing caller database

appears on-screen when the telephone rings and remains on the screen during the call.

Called Number Identification (DNIS) - With each call, special campaign information

can be displayed from the application based upon the number dialed by the caller.

Vital information collected by the phone system from the caller can be passed to the

application. The computer telephony integration software manages this process and

free agents to be more productive.

Any phone number can be pointed or clicked in the computer database or Soft phone.

The telephone then dials the call - a must for maximizing the productivity of outbound

telemarketing or call center service desks.

45
CTI software system allows to generate real time reports and graphs. This important

measuring system helps you observe and control the performance of call center and

phone system with clear and meaningful displays. Graphs and charts of operational

statistics let you measure the effectiveness of each user and campaign. Reports and

graphs include both inbound and outbound statistics

Business Process Outsourcing or telemarketing or call center service desks.

46
PROJECT ANALYSIS

Introduction

Outsourcing has been the buzzword in the context of Indian business and a

considerable amount of work is happening in the domains of voice and non-voice

BPO. Further, growth is very possible if the industry were to consolidate on the

current offerings to achieve scalability and also look at new opportunities. India has

many potential advantages to meet global and intellectual market.

BPOs Concentrate India India

The basic idea for establishment of BPOs in the India area is to provide new job

opportunities in the villages, and to help bridge the gap between India's urban and its

poor India people. Also, if India educated finds jobs close or next to their home, they'll

be less likely to migrate to the country's overcrowded cities. The BPOs Industry feels

there are plenty of young people in the villages with college degrees. The flourishing

BPO industry of India is now eyeing villages across the country as its next destination

for launching their services and access manpower. One of the other main reasons why

companies are considering India India to outsource is because of the cost factor; the

infrastructure cost are low as it cost 20 percent cheaper compare to urban outsourcing.

The report estimates….

47
  The India jobseekers are more compare to urban centers. Besides a India

employee takes home a fair share of his earning per month against their urban

counterpart, which is double. Also it is noted that when BPO industry sets up it

facilities, with it comes other types of jobs- like restaurants, housekeeping,

travel industry all this in a way to serve the workers which otherwise serves the

local economy.

 Today BPO centres have already set-up their facilities in India and villages, and

more are waiting to start. It is estimated that around 250 people will get

employed in this units. Presently India employees are doing back office work

for the foundation, Satyam, and the government of Andhra Pradesh

 Byrraju Foundation's is a non-profit organization under GramIT aimed at setting

up more than 50 units of BPO operation in the villages. Byrraju has adopted

160 villages and GramIT is looking to have operations running in all this

villages. They hope to line up more government agencies and Indian

corporations, and, eventually, to land some multinational corporations as

customers. But industry experts feel that India growth has been at much slower

pace compare to urban.

 News Today reports a unique venture in the BPO industry: the setting up of a

BPO centre in India India. Lason India Ltd., a BPO organization, initiated a

India BPO centre at in Kizhanur, Thiruvallur district, in Tamil Nadu.

48
Arena of Indian BPOs

 Indian BPO industry is expected to grow by 20 percent in the near future. The

Indian ITES/BPO sector is growing at a compounded annual growth rate of

about 60 per cent according to Sandeep Madan, president of Hero ITeS.

 "Transaction processing can grow to become double the size of call centres.

Gujarat needs to attract some big players in the BPO sector to set up base here

and more would follow automatically according to Rajiv Prakash, associate

director of Business Advisory Services at KPMG.

 "The state government needs to set up a marketing infrastructure in association

with the local IT players to attract companies from the US and UK

 "The global outsourcing market is expected to grow to $173 billion by 2007

from $122 billion in 2003. So, the potential for Indian companies is huge".

 Desicrew’s Solution is unique BPO initiative that provides high volume data

services at an affordable cost from India across India. Desicrew’s central team

based in Chennai manages training of India workforce, distribution and

monitoring of work, quality control and client interaction. It builds capacity in

villages, creates the right systems and networks for remote operations and

ensures highest level of professionalism and quality standards.

49
The country’s first India BPO

 In HOSUR Over 30 young employees of a business process outsourcing unit in

the Chanachandiram village near here have proved that a backward such as

Krishnagiri district can be turned into an employment generating centre. The

good news for non-graduates is that their entry-level salary is on a par with that

of graduates. Those who have passed only X standard and Plus-Two are trained

in basic computer, English grammar, accent and communication and soft skills

for personality development. (Source: The Hindu Online edition of India's

National Newspaper, Monday, Dec 03, 2007)

 According to a recent report by the Organisation for Economic Cooperation and

Development (OECD), India has generated 11.3 million new jobs annually

between 2000 and 2005. Though a majority of these were in the BPO industry,

NASSCOM estimates that by 2012, the BPO industry alone will face a shortfall

of 262,000 professionals. NASSCOM is India's premium body for policy and

regulation in the BPO industry.

 NASSCOM report states that there are 130 million surplus workers in India

India. Even if 5% of these are educated, there is an opportunity for the BPO

industry to expand operations. With some IT training, there is a significant

opportunity for the large number of high-school graduates and undergraduate

degree-holders in India to fill a part of this gap in the future.

50
  If the Government of India's goal of setting up 100,000 Common Service

Centres were achieved, all of these villages would have the potential to act as

BPO centers. Consider 10% of these villages employing 20 people at an average

salary of $65 per month. This would directly add $1.56 billion to the India

economy per annum and create 200,000 jobs. The demand for several allied

industries such as hardware servicing and software development would also

grow.

51
 Reasons for setting up BPOs in the India

 The cost of operating is 50 per cent less in the India centres compared to the

urban BPOs. Moreover, productivity of the India work force is higher than their

urban counterparts, Satyam Computer Services Head, Gram IT and HighEnd

Services Ravi Kumar Meduri told PTI.

 The cost involved in setting up of a BPO centre in India is low compared to that

in urban areas due to two factors infrastructure and hiring costs.

 Satyam has already built three centres in villages of Andhra Pradesh and is

planning to open another 10 in the country by the end of 2008.

 It is the fortune for the BPOs companies to pay less salary than compared to

BPOs situated in major cities.

 BPOs can withdraw the expenses spend on safety welfare measures provided to

their employees.

52
Favouring India BPOs establishment

 There is no point in making the India candidates to come to the city fir their

livelihood. Companies can achieve higher productivity by opening their shops

in towns and villages and thus making employees feel at home.

 Nasscom’s Strategic Review Report 2005 estimated that the Indian offshore IT

and BPO industry would employ around 695,000 people and produce revenues

of approximately $17.3 billion in the financial year 2004-05. By 2007-08,

Nasscom estimates that this figure will increase to over 1,450,000 people and 7

per cent of India’s GDP.

 Satyam, Lason and Datamation have already set up their business process

outsourcing centres in remote places such as Ethakota and Jalli Kakinada in

Andhra Pradesh.

http://www.offshoringtimes.com/Pages/2007/BPO_news1826.html

 Satyam, on the other hand, said there is a large amount of domestic work

available in India with respect to digitisation of hospital and administration, as

a result there is a huge pool of work that requires low-cost solutions. However,

a great deal of training is required to enable individuals in India to perform

efficiently in a BPO.

 Hyderabad, Jan 16 About 1,000 India graduates from Andhra Pradesh will soon

join different Business Process Outsourcing (BPO) companies in their offices to

be located in tier-II and semi-urban areas.

53
 IMPACT OF ESTABLISHMENT OF BPOS IN INDIA

 No one is ready to outsource it to the India or No one is ready to start their

operations in the India area.

 Recent study of working conditions in Indian outsourced call centres has

pointed to the high levels of labour exploitation in the industry—including

constant surveillance, long hours, health problems and burnouts.

 A number of states in India have exempted outsourcing companies from the

Industrial Disputes Act, which provides, amongst other things, for unfair

dismissal rights. West Bengal, headed by a Communist Party of India

(Marxist)-led Left Front government, has stretched the work week (the number

of hours after which companies are legally required to pay overtime) from 40 to

48 hours, and has changed labour laws to allow young women working at BPOs

to do night shifts.

 The report concludes that “most of these youngsters are in fact burning out their

formative years as ‘cyber coolies’.”

 Staff in the industry reported health problems such as nervousness, chronic

fatigue, body ache, insomnia, nausea, anxiety, restlessness, irritability and

depression due to odd working hours and stress. Sick days are difficult to

obtain. Surely the BPOs companies established in India will keep silent with

regard to above measures.

54
  The main problem faced by the BPOs employees estimated that “90 per cent of

the respondents did not balance work and family life. The respondents had no

social life or interaction with people in the family.” As a result it may hit the

village set-up also.

 The majority of the population is already hostile to the program of privatisation

and opening up India as a cheap labour platform for transnational capital. Again

it may degrade or indirectly exploit the educated villagers.

 BPOs established in the major impediment seems to be poor infrastructure, lack

of basic amenities and low skilled work force.

 The performance of employees is often linked directly to quality work,

customer satisfaction, increased product sales and even to the image of a

company. Whereas the same is often indirectly linked to, satisfied colleagues

and reporting staff, effective succession planning and deeply embedded

organisational knowledge and learning.

www.offshoringtimes.com/Pages/2006/Article_1261.html

 This might be worse for BPO companies where fresh talent is intensively

trained and inducted and then further groomed to the successive stages. In this

scenario, the loss of a middle manager can often prove dear.

 However, there are some common reasons that especially cause people to

leave. Surveys have listed night shifts, money, inability to handle various types

of stress, monotonous work; company policies, lack of career growth, problems

55
 with those in senior positions etc., as some of the most common reasons listed

by BPO employees, as reasons for quitting jobs.

56
Benefits of BPO

BPO benefits i.e. benefits accrued as a result of outsourcing are

numerous. BPO or outsourcing is advantageous as it links to shareholder value.

Business Process Outsourcing is about optimizing business performance to attain

value creation. There has been a tremendous upsurge in BPO and outsourcing industry

in many developing countries like India because of their (BPO) expertise in reducing

costs while increasing service quality.

Another great BPO benefit is that it helps companies to focus on core areas.

Companies generally outsource processes to reallocate accountability and control

costs. Thus the management is in a better position to focus on core areas, and not keep

itself engrossed in other areas. Outsourcing also helps companies to avoid capital

expenditures, which is in particular important in non-core areas that may need new

systems and up gradation. By and large, companies only want to spend money on core

areas.

Reduction in costs is another BPO benefit. BPO provides quantifiable

benefits through improved efficiencies, lower overhead, reduced payroll and benefit

expenses, and fewer capital investments. Other BPO benefits include assurance of best

practices, skills, and technology. It is important to note that BPO provides access to

proprietary workflow systems, process reengineering skills, and innovative staffing

and delivery models, coupled with world-class technology delivered by experts. To list

some of the major benefits, they are as follows:

57
Productivity Improvements

An important facet of business process outsourcing is its ability to free

corporate executives from some of their day-to-day process management

responsibilities. Conventionally, executives spend 80 percent of their time in

management of details and only 20 percent on formulating strategies. But the scenario

is remarkably different when the business process is outsourced. Once a process is

successfully outsourced, the ratio can be easily reversed. In such situations, executives

get more time. This saved time helps them tremendously to explore new revenue

areas, accelerate other projects and focus on their customers. This, beyond doubt,

leads to productivity improvements. Companies that outsource their business

processes are often able to capture new efficiencies and in the process improve upon

their productivity. They are in a better position to reallocate their resources to other

important projects. This also helps their employees to increase their efficiency and

productivity. In most cases, high-caliber subject-matter experts are brought in to

design and manage these processes. They bring with them increased productivity and

years of experience that most companies don’t have access to or can’t afford on their

own. Availability of highly qualified skill pool and faster adoption of well-defined

business processes leads to productivity improvements without compromising on

quality. Cost Savings One of the most important benefits and advantages of

outsourcing the business

58
processes is in terms of cost savings. The companies that outsource their work have

the access to the best of talent and expertise in the BPO field and that too at very low

wages. Various studies have indicated that for every one dollar invested in BPO

centres across India, the value derived by the US economy is between $12- $14. This

is what makes the outsourcing to India an irreversible process. It is a reality that the

companies which have shifted their BPO work to India have garnered savings of

around 40-50% till now.

American BFSI (Banking & Financial Services Industry) companies have

saved more than $6 billion in the last four years by outsourcing their business to India.

It is a simple fact that if a bank shifts work of 1000 people from US to India it can

save about $18 million a year due to lower costs in India. Similarly, in the field of

pharma research and development, firms can reduce the cost of developing a new

drug, currently estimated at between $600 million and $900 million by as much as

$200 million if development work is outsourced to India. In the US/UK 67-72% of

costs incurred by call centers are directly linked to man power costs whereas call

centers in India spend only 3 3-40% of costs on man power. This includes spending on

training, benefits and other incentives for labor.

59
Improved HR

Improved HR is another great advantage of outsourcing business

processes. Several market studies have shown that HR outsourcing can lead to cost

savings in the range of 20-40 percent for customers. It also leads to improved HR. HR

Business Process Outsourcing (HR BPO) is a market that has experienced substantial

growth over the past few years and is now set for even more rapid expansion. This is

based on the fact that gradually more companies are looking at outsourcing

transactions and processes to create a more strategically focused HR function. Clearly,

companies all over the world are getting motivated to outsource their HR processes

and transactions to run their HR functions more efficiently, free the HR function to

focus on strategic people practices that drive growth and add to the organization’s long

term success and facilitate their professionals to add value to their business.

Companies today, require complete domestic and global HR delivery

through systems and processes that can generate economies of scale to reduce or

eliminate their need to make future investments in quickly outdated technology.

Companies can save between 20-40 percent of their HR costs, depending on their

business priorities and the pace at which they want to move.

Focus on Core Competency

60
 Business Process Outsourcing gives tremendous help to the companies to

concentrate more on the core areas of their business. The most important factor behind

the growth in the BPO market world wide today is an increase in the number of

enterprises that are reviewing their internal operations in an attempt to fully

understand their true core competencies. In the process they are able to focus more on

their core competencies. Business Process Outsourcing gives more freedom to the

management to

focus more time, energy, and resources on building the company’s core businesses. It

is because the

BPOs assume full responsibility for managing the day-to-day back-office operations.

Once outsourcing of certain processes take place it becomes easier for the company to

compare and evaluate the efficiency and effectiveness of services that are being

delivered from outside and inside. This decision-making process often includes an

evaluation of the cost of owning technology - with its associated support costs, that are

not core to the enterprise (HR is one such example). This trend is leading to an

increased keenness to outsource processes that are considered non-core, yet critical

activities. These critical activities include claims administration,

61
HR services arid payment services.

Cost reductions –

Cost reduction is done through process improvements, reengineering and use of

technologies that reduce and bring administrative and other costs under control.

Concentration on core business-

With the day-to-day back office operations taken care of, the management is free to

concentrate more

on the core business of the company.

Outside expertise-

Company is saved from the hassles of recruiting and training personnel. BPOs ensure

that experts from another company provide the needed guidance and skills.

Cater to changing customer demands-

It is another great advantage of out sourcing the business processes. Many BPOs

provide the management with flexible and scalable services to meet the customers’

changing requirements, and to support company acquisitions, consolidations, and joint

ventures.

62
Revenue increase-

As stated above, by outsourcing non-core processes, companies can concentrate on

increasing their sales and market share, develop new products; spread out into new

markets and increase customer service and satisfactions. Apart from other advantages,

business process outsourcing has another big advantage which leads to increase in

capabilities of the employees and the company. With this know-how increased

capabilities can be seen. In addition to doing things more efficiently, employees can

expand their ability to deliver new products and services to their customers. Then

there are the factors of scalability and scope. Companies that want to grow

internationally must continuously invest in infrastructure and find talent around the

world and this is possible only trough business process outsourcing. Many outsourcing

providers are already established globally and help in increasing the capabilities of the

companies that are outsourcing their work to these BPOs.

Benefits of Outsourcing to India

o Access to the best talent and expertise

o Frees the hassles of managing a large people in non-strategic operation

o Increases productivity and quality at lower rates

o Creates new jobs in the country of outsourcing origin. Though seems to

be contradictory, savings made

63
 by companies in result of outsourcing, have made this happen.

Reasons Savings

Cost reduction 43%

Focus 35%

Access to special enterprise 32%

Resource related reasons relieve resource

constraints, reduce IT staff and augment IT staff} 51%

Indian Preferred BPO Destination

* Location attractiveness

• Infrastructure Communications

Other basic infrastructure

• Coimtry risks

Attractive incentive

Political environment

• Time zone attractiveness

* People attractiveness

• Quality

• Cost

64
• Type of skills

• English language

BPO Advantage India Today, India is undoubtedly the most favored IT/BPO

destination of the world. This raises the question why most of the big MNCs are

interested in outsourcing their operations to BPOs in India. The answer is very simple-

India is home to large and skilled human resources. India has inherent strengths, which

have made it a major success as an outsourcing destination. India produces the largest

number of graduates in the world. The name of India has become synonymous with

that of BPOs and IT industry hence the name BPO India. Besides being technically

sound, the work force is proficient in English and work at lower wages in comparison

to other developed countries of the world. India also has a distinct advantage of being

in a different time zone that gives it flexibility in working hours. All these factors

make the Indian BPOs more efficient and cost effective. In order to meet the growing

international demand for lucrative, customer-interaction centers, many organizations

worldwide are looking to BPO India.

 Human Resources

Availability of suitable human resources is one of those factors which have made India

one of the hotspots of BPO/IT industry. India is home to a vast pool of human

resources consisting of educated, English speaking, tech-savvy personnel. Every year,

65
approximately 19 million students are enrolled in high schools and 10 million students

in pre-graduate degree courses across India. Moreover, 2.1 million graduates and 0.3

million post-graduates pass out of India’s non-engineering colleges. These figures

very well give the idea of human resources availability in India. This great pool of

human resources holds the key to IT/BPO destination i.e. India. If the flow from high

schools to graduate courses increases even marginally, there will be a massive increase

in the number of skilled workers available to the IT/BPO industry. If we calculate the

availability of human resources at current rates, there will approximately be 17 million

people available to the IT industry by the year 2008.

 Language

India definitely enjoys the benefits of a vast pool of skilled workers who are proficient

in English language. India produces the largest number of graduates every year and

most of these graduates have the knowledge of English language. Thus, language is

one of those factors which attract MNCs to contract out their business operations to

Indian BPOs and IT companies. Though there are competitors like China which also

have a large pool of skilled workers but they don’t have enough graduates who have

command over English language. In addition to this the Indian education system also

places strong emphasis on mathematics and science. This has resulted into a large

number of science and engineering graduates. Mastery over quantitative concepts

coupled with English proficiency makes India one of the hot spots of the IT/BPO

66
word. It has enabled the India to take advantage of the current international demand

for IT.

 Ouality Manpower

In term of human resources, there are a number of countries who are at an

advantageous position but the real difference between them and India is of quality man

power. In the field of information technology and computer software India experts

have proved their worth beyond doubt. India is rich not only in terms of number of

qualified people but the quality of our professionals is also of international level.

Indian programmers are known for their strong technical skills and their eagerness to

accommodate and engage clients.In some cases, clients outsource work to get access

to more specialized engineering talent, particularly in the area of telecommunications.

Expertise in English language is also a great strength of India and it has definitely

helped India in increasing its manpower quality.

 Government Policies

The Indian government realizes that Information Technology has the potential to

influence extensive economic development in the country. IT is now one of the top

priorities of the Indian government and favorable policies are being formulated to

67
extract maximum benefits from the industry. Here, we are highlighting some of the

government policies which have proved very beneficial in the growth of IT/BPO

industry. These favorable government policies have gone a long way in making India

a BPO/IT hub.

* The reforms have reduced licensing requirements and made foreign technology

accessible. The reforms have also removed restrictions on investment and made the

process of investment easier. This has tremendously helped the IT/BPO industries.

* The Indian government is actively promoting FDI and investments from NRIs (Non-

Resident Indians). FDI can be brought in through the automatic route, based on

powers accorded to the Reserve Bank of India.

* In pursuance of liberalization and globalization, the Indian government has been

formulating and implementing more transparent and investment friendly policies. This

is now reflecting in many areas.

Till 1994, DOT was the sole provider of basic telecom services in India but the new

telecom policy opened the field to the private operators as well. It has made India one

of the fastest growing countries in the field of telecom.

* Another significant example of the liberal policy of the Indian government is the IT

Act. The IT Bill passed in 2000 provides a legal framework for the recognition of

68
electronic contracts, prevention of computer crimes, electronic filing of documents,

etc.

* In pursuance of the liberal policies, the Indian government has been continuously

proposing amendments in the Indian Evidence Act, Indian Penal Code and the RBI

Act. The mechanism of digital signature has been proposed to address the issues of

jurisdiction, authentication and origination.

* Recognizing the importance of Venture Capital Funding, the Ministry of

Information Technology has set up a National Venture Fund for the Software and IT

Industry with a corpus of Rs. 100 crore. The main aim of the venture capital Fund is to

provide Venture Capital to start up software professionals and small IT units.

* Nasscom (most important promoter of the IT/BPO industry) has been playing a

crucial role in helping the IT industry achieve the IT and ITES vision and make India

far ahead of other players in the field of IT and BPO.

69
 Infrastructure

Improved infrastructure is another important factor which has helped India to achieve

tremendous success in the field of IT/BPO. There has been tremendous growth and

improvement in telecom, power and roads infrastructure in the last few years in India.

Relevant telecom facilities are an important precondition for the success of the

software and BPO industry. The Indian government has taken numerous steps to

improve the telecom infrastructure in the country. The international bandwidth

situation has improved dramatically over the last 3 years. The privatization of the

telecom Industry has resulted not only in significant drop in rates but also better

services. The telecom costs have dropped by about 85% in 3 years. Similar changes

have been observed in the power sector infrastructure as well. Power availability has

also improved dramatically over the last few years. This has gone a long way in

ensuring uninterrupted power supply to the IT/BPO destinations like Bangalore, Delhi,

Chennai, Bombay, Pune and Calcutta. In addition to this state governments in India

have undertaken reforms in the power sector to improve power supply to ITES

companies. The overall roads and highways infrastructure scenario in India has also

witnessed major improvements over the last few years. We have now entered the

arena of multi lane highways. Most of the cities and towns are connected and

interlinked to each other. Major investments have gone into the development of

highways, both on the side of the central and state Governments.

70
 Cost-effective

Cost effective man power is yet another important factor which makes India a hot spot

of IT/BPO industry. With a vast pool of skilled human resources ready to work at

lower wages in comparison to the European or American countries India is attracting

business process outsourcing. In a call interaction center operation, manpower

typically accounts for 55 to 60 percent of the total cost. Besides being cost effective,

Indians are also skilled and fulfill all the requirements of the IT/BPO industry. In

India, the manpower cost is approximately one-tenth of what it is overseas. For

example, per agent cost in USA is approximately $40,000 while in India it is only

$5,000. It is but natural that companies contract out their work to cost effective

destinations like India. India produces about 100,000 engineers every year. These can

be used in call centers for troubleshooting/tech support, as the salaries are dramatically

lower than in Europe or the US. In such situations MNCs choose to outsource their

business processes to cost effective India rather than off shoring to other costly

destinations.

India has an 8-12 hour time zone difference with respect to the US and other

developed markets. It is of great advantage in BPO operations, which offers reduced

turnaround times, since processing services are performed at night hours in the

developed countries. India is able to offer a 24x7 services and reduction in turnaround

71
times by leveraging time zone differences. This difference in time zone is because of

India’s unique geographic location. When it is day in India, it is night in America and

even as we go to bed, they rise and go to work. This time difference has been

intelligently brought to their advantage by the call centers/BPOs. Most of the Indian

call centers servicing American customers have timings between 5:30 p.m. to 9:30

a.m. This time zone

difference benefits not only the Americans but also the Indians. Not only does the time

difference allow Indian companies/BPOs/Call centers to service American clients by

working in the nights, it also helps in better utilization of their resources. The

companies can utilize the same resources to serve other clients in India and abroad

during the day. Thus the time zone difference also helps in sharing of resources which,

in turn, saves costs and also earns call centers better revenues.

* Salary Structure in Indian BPO

Another important factor which attracts MNCs to outsource their work to

India is the salary in Indian BPOs and IT industry. Here is a brief summary of salary

in Indian BPOs, according to different hierarchies. Besides the salary, Indian BPO

employees are paid incentives depending upon many factors like attendance regularity,

target achievements etc. Structure of salary in Indian BPOs is as follows.

72
* Customer Care Representatives- Rs 8,000 - Rs 15,000 per month Team Leaders- Rs

17,000 - Rs

26,000 per month

* Managers- Rs 3 Lac - Rs 5.5 Lac per annum

* Training Heads- Rs 8 Lac - Rs 12 Lac per annum

* Training Managers- Rs 5 Lac - Rs 8 Lac per annum

* Trainers- Rs 2 Lac - Rs 5 Lac per annum

73
India’s Presence in BPO Sectore

Insia’s Advantage

Cost Quality

Productivity

Favorable time lag

24 x 7

service Sharper

learning

curve effect

Neutral

accent

50-75 % cost reduction

for offshore process Access to highly- qualified skill pool

of manpower Established methodologies

and processes for better performance

Adherence to leading quality practices

Robust Communication facilities

Lower labourcost

74
GLOBAL SCENARIO

BPO has become critical in this industry today. Professionals with degrees such as

MBBS, MDS, M.Tech., MBA, CA, ICWA, etc, are taking up work in domain-specific

back-office processes in analytical, advisory and consulting arena. This requires a

clear relationship between the IT/BPO industry and the academia, which trains the

future workforce to make them industry-ready.

Major Countries providing Business to Indian Companies

• United States of America

• United Kingdom

• Australia

Fate of BPO Sector safe in long-term

By fe Bureaus

75
The future of the business process outsourcing (BPO) industry in the coimtry may be

uncertain in the short-term but it has a bright future. “The BPO industry will continue

to project ‘mid-double digit growth’ in the medium to long term,” said Pramod

Bhasin, chairman, Nasscom and president and CEO, Genpact. The BPO sector in India

has been the fastest growing sector, having grown at a compounded annual growth

rate of over 37% to aggregate revenues of $14.7 billion in financial year 2009 from

$1.6 billion in financial year 2002. Direct employment in this period has increased

from 1,55,000 to almost 1 million people. According to Bhasin, “The country’s BPO

industry has grown and matured phenomenally over the last decade. It has evolved

from offering basic voice based services to high-end knowledge based services and

has had an unparalleled impact on India’s economic and social growth. The BPO

revenues constituted 1% of India’s GDP, and 4% of India’s total exports in FY’09

with indirect employment levels estimated to be around 4 million.

“However, the economic slowdown has severely impacted the primary markets. The

industry is facing multiple challenges including decline in sourcing spend, price

reductions, competition from other countries and protectionism. To address these

challenges, the industry needs to find new avenues for growth and looks at strategies

to drastically improve operational efficiency. Tapping industries like manufacturing,

healthcare and retail, expansion into new geographies and driving domestic market

growth would be critical going forward,” he added. According to Nasscom McKinsey

Perspective 2020 study, the total addressable market for the BPO industry is $630

billion. To achieve this potential, the industry has to gear up for challenges now.

76
Today, the Indian BPO industry faces competition from countries like Philippines,

China, Vietnam, Brazil and Egypt who offer incentives to attract global business. Som

Mittal, president, Nasscom, said, “Government support through extension of the fiscal

benefits under Section 10A/10B to mitigate the impact of the recession and

protectionist measures being adopted globally is necessary. This is particularly

important for SMEs as it will facilitate their continued growth, provide parity with

incentives under the SEZ scheme and encourage industry to move into tier II and III

cities”.

BPO players are facing immense pricing pressures. Bhasin said, “For Indian BPO

players, it is going to be value game going forward.”

Global Market Size of BPO

Rapid transformation is taking place in the global BPO market. It is accompanied by

increased spending in BPO services. Most of the leading business companies of the

world are adopting BPO as a strategic business solution. The BPO industry is very

diverse, with several sub-segments, each displaying its own unique characteristics.

According to Gartner, a market research flim, the size of the global BPO market by

2007 would be $173bn, of which $24.23bn would be outsourced to offshore

contractors. Of this, India has the potential to generate $13 .8bn in revenue. “The

77
projection includes revenues of pure play Indian BPO service providers, captives

operations of MNCs operating in India, third party service providers and BPO

subsidiaries of IT services firms.

North America will remain the dominant market for ITES-BPO services, accounting

for nearly 60 percent of the total ITES-BPO market in 2006. The main verticals in the

North American ITESBPO market are telecommunications, financial services, health

care and energy. Commonly outsourced processes include internal auditing, payroll,

human resources, benefits management, contact centers/customer care, payments/

claims processing, real estate management, and supply chain management. The

Western Europe ITES-BPO market is expected to account for 22 percent of the market

by 2006. The financial services sector is the largest consumer of BPO-ITES services

in Europe, followed by utilities and telecommunications. Human resources, finance

and accounting are expected to be the fastest growing service lines.

The Asia Pacific ITES-BPO market is expected to account for 18 percent of the total

ITESBPO market in 2006. Companies in the Asia-Pacific region have traditionally

outsourced only manufacturing activities. Given the relative infancy of the ITES-BPO

market, this region is expected to experience rapid growth over the next few years.

Growth will primarily be driven by cost-reduction and the need to focus on core

competencies. HR, finance and accounting are expected to be the key growth areas in

the Asia-Pacific region in the years ahead

78
BPO Competitors of India

By virtue of certain advantages India has been able to maintain

its supremacy over its rivals in the BPO industry but there are a number of other

countries, which can give India run for its money in Business Process Outsourcing.

Some of the prominent competitors of BPO India are China, Philippines, Mexico,

Canada, and Malaysia. The Philippines advantage, besides skilled and English

educated work force and good telecom infrastructure, is familiarity with American

work culture and Spanish language. China enjoys a great advantage in terms of large

pool of people but the Chinese have a great limitation, as they do not have enough

English speaking graduates like India. Mexico too is emerging as a tough competitor

for India but is good for low-end jobs only. Other countries like Ireland have a smaller

talent pool. Canada and South Africa are other prominent competitors of India but are

costlier than India, while Russia has poor infrastructure and poor linguistic

capabilities.

Hence India still has the leading edge in the BPO

industry, but it should keep on improvising to maintain its stability. Therefore India

should be on its guard to maintain its position intact. If India has to maintain its

supremacy in BPO and its software workforce, then BPO India has to learn Spanish,

which is spoken in more than 24 coimtries. With India already stamping its superiority

in the BPO sector with its knowledge of the English language, it now needs just one

other language that will make the world its market, which is Spanish.

79
INDUSTRIAL ANALYSIS

BPO Industry Analysis & Research

The Indian BPO Industry is already worth $5.3 billion. It is

growing at almost 60% a year- the kind of growth Indian IT services industry used to

clock in the early 1990s. In fact after the tech slump, almost all big Indian IT services

companies have forayed into BPO to maintain their growth rates. Quite a few of the

promising start-ups of last year have attained critical mass.

Meanwhile, some of the biggest global players have started setting

up their own operations in India. At the same time, the industry has begun to attract a

bit of adverse attention-several US lawmakers have started seeing it as a threat as too

many American jobs are shifting to India.

At current growth rates, the 5.3 billion BPO industries are fast

catching up with the much acclaimed IT industry. According to Nasscom-Mckinsey

study, the IT-enabled services sectors were due to employ 1.1 million people and earn

$1 billion by 2008. That was soon revised to $24 billion.

The rapid growth is throwing up winners and the losers who did

nearly everything right and are now set to take on a larger share of the BPO pie even

80
as they gear to meet competition from the world’s largest BPO corporations which are

eyeing India.

About 8-10 Indian start-ups are set to clock $100 million in revenues

in the next 18-14 months, purely on the strength of their current contracts.

81
Scope and Limitation

Scope

 The study will reveal the current state the Indian BPO industry with focus on

the major players.

 Identify the challenges posed by the internal and external forces. Analyze the

potential of Indian economy to cater to the rising needs of outsourcing from

different countries.

 Understand the fluctuating trends in this industry to nullify the threats and

capitalize the opportunities.

 Understand the current model of call centres and showcase their operations.

 Figure out the growing needs of call centers.

 Ascertain how India can be a major player to cater to this industry.

 To make recommendations for new businesses entering into this sector.

82
  Limitations

 Since there has been no real research undertaken to study the Indian BPO

industry, the secondary data collected is limited and may lack accuracy.

 Research is conducted for a short period and hence paucity of time is a major

constraint.

 The study does not cover unorganized BPO industry.

 The data available through secondary sources is limited.

83
 MAJOR BPO CENTER IN INDIA

In West India, states of Maharashtra and Gujarat lead in call center operations.

Mumbai - the capital of Maharashtra is a favorite destination of BPO providers. It has

also been rated as lowest risk location because of good communication and

infrastructure facilities. Government of Gujarat too is making all efforts to lure call

center companies. The state has implemented lucrative business policies and provides

BPOs with necessary infrastructure support.

BPO center in India

Intelenet

Intelenet Global Services Ltd.

Address:

Intelenet Towers

Plot CST No. 1406 - A28,

Mindspace, Malad West

Mumbai 400064 INDIA

Tel: +91-22-56776000

Fax: +91-22-56778210

Website : - www.intelenetglobal.com

84
Daksh

Daksh eService Private Limited

5th floor Magnus Towers

Mindspace, Link Road

Malad (W)

Mumbai 400 064

Tel: +91 22 56775677

Fax: +91 22 56771301

Website : www.daksh.com

Epicenter

Epicenter Technologies Pvt. Ltd. Sigma

11th Floor, Hirandanani Gardens, Powai,

Mumbai - 76

Ph. : + 91 22 5694 8848

Website : www.epicentertechnology.com

85
E Serve International

e-Serve International Ltd.

Plot No 223,

Nesco Compound,

Off Western Express Highway,

Goregaon East,

Mumbai - 400063,

India

Tel: +91 22 26855203

website : www.eservenet.com

Providing consultancy services for ISP, BPO and call centres. Also providing

video conferencing services, complete telecom solutions, point-to-point leased

lines, and point-to-multi point leased lines, internet connectivity and other tele

com solutions.

Address: Shree Mahavir Chambers, 2nd Flroor, 1/5, Banaji Street, Fort, Fountain,

Mumbai - 400 001, India

Phone: +(91)-(22)-22046711

Fax: +(91)-(22)-22046711

Website: www.indiamart.com/tarang-infotech

86
Triace Computer Solutoins, Mumbai

Providing service of call center.

Address: T6/1201, Sea Breeze Chs, Palm Beach Road,

Navi Mumbai - 400 706, India

Phone: +(91)-(22)-33943649

Lifezone Training

Providing services in customer care and call center trainers.

Address: 109 Mahavir Industrial Estate, Mahakali Caves Road,

Near Paper Box, Andheri (East),

Mumbai - 400 093, India

Phone: + (91)-(98)-20196299 Fax: +(91)-(22)-56921181

Respondez

Provide services as call centre.

Address: B/22, Krishna Bhavan, Deonar, Chembur, Mumbai - 400 088, India

Phone: + (91)-(22)-55958100/ Fax: +(91)-(22)-55958105/

Rushabh Direct Marketing

Services providing related to call centre,

telemarketing, back office work, database marketing and advertising.

Address: 101 Rajashree Shopping Centre 1st Floor Mira Road,

87
Mumbai - 401 107, India

Phone: +(91)-(22)-56905400/56905730 Fax: +(91)-(22)-28552951

Ramshyam Communications Limited

Providing e mail based call center services.

Address: 210, Mahavir Indl. Estate, Off Mahakali Caves Road

Andheri East Near Paper Box, Mumbai - 400 093, India

Phone: + (91)-(22)-56938801 Fax: +(91)-(22)-56950498

Sitel India Private Limited

Providing call centre services.

Address: 238/6192, Mig , Pant Nagar,Ghatkopar (E),

Mumbai - 400 075, India

Phone: +(91)-(22)-25162039

Cybosys Consulting

Providng serviceslike call centre set up, call centre operations outbound and

inbound calls help desk business procurement.

Address: D-106, Crystal Plaza. Andheri Link Road Andheri (West),

Mumbai - 400 053, India

Phone: + (91)-(22)-55021750 Fax: + (91)-(22)-55021749

88
Senseit Technologies Private Limited

Providing all bpo projects services.

Address: 4001, Oberai Garden Estate, Chandiwali Farms Road,

Mumbai - 400 059, India

Phone: + (91)-(22)-56943095

Orasi Technology India Private Limited

Providing services for call centre.

Address: 467/ A, Tibra House, J.S.S. Road, Chira Bazar,

Mumbai - 400 002, India

Phone: + (91)-(22)-22093149

Sceptre Solutions (P) Limited

Providing call centre services.

Address: D-106, Crystal Plaza Link Road, Andheri (west),

Mumbai - 400 053, India

Phone: +(91)-(22)-55021750 Fax: +(91)-(22)-55021749

89
Indus Markfin Private Limited

Providing services as telecaller for customer loyalty programs and

other customer services.

Address: Office No. 2, Washington Plaza, off S.V.

Road Goregaon (West),

Mumbai - 400 062, India

Phone: +(91)-(22)-56423000

Amita Enterprise Providing BPO services i.e. take whole contract of import &

export activities including banking, ECGC, EEPC, Licencing of any sorts etc.

Address: 302/B-5, Asmita Mogra Hsg Soc., 3rd Floor Mahakali,

Andheri (East), Mumbai - 400 093, India

Phone: + (91)-(22)-28382289 Fax: + ( 91)-(22)-28390822

Snehal Overseas

Providing services of call center.

Address: 101, Modern Business Centre,

Kanjur Station Road, Kanjur Marga,

Mumbai - 400 078, India

Phone: + (91)-(22)-25941716 Fax: + (91)-(22)-25911716

90
 RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem

involving a study of various steps that are adopted by the researcher in studying

his/her research problem.

Two methods have been and will be used to collect data.

1) Primary data

2) Secondary data

Primary data: There are several methods of collecting Primary data. These are

given below.

 Observation method

 Interview method/Interaction

 Questionnaires

When an investigator uses the data that has been already collected by others is called

Secondary Data. The secondary adapt could be collected from Journals, Reports and

various publications, web sites. The advantages of the secondary data can be- it is

economical, both in terms of money and time spent.

Secondary Data Sources

 Websites/Internet

 Business Magazines

 Newspaper Articles

91
Conclusion

The establishments of BPO services at the India are very much significant in the

promotion of India employment. But the BPOs may still exploit the India poor people

with regard to salary, welfare and safety measures and additional benefits. Most of the

BPOs/ ITES companies situated or established in cities are bound to involve in salary

hike and fail to nurture their employee’s to consider their welfare physically and

emotionally. We should take-up a better strategy to safeguard the villagers from the

giants of BPOs companies.

 No one is ready to outsource it to the India or No one is ready to start their

operations in the India area.

 Recent study of working conditions in Indian outsourced call centres has

pointed to the high levels of labour exploitation in the industry—including

constant surveillance, long hours, health problems and burnouts.

 A number of states in India have exempted outsourcing companies from the

Industrial Disputes Act, which provides, amongst other things, for unfair

dismissal rights. West Bengal, headed by a Communist Party of India

(Marxist)-led Left Front government, has stretched the work week (the number

of hours after which companies are legally required to pay overtime) from 40 to

48 hours, and has changed labour laws to allow young women working at BPOs

to do night shifts.

92
  The report concludes that “most of these youngsters are in fact burning out their

formative years as ‘cyber coolies’.”

 Staff in the industry reported health problems such as nervousness, chronic

fatigue, body ache, insomnia, nausea, anxiety, restlessness, irritability and

depression due to odd working hours and stress. Sick days are difficult to

obtain. Surely the BPOs companies established in India will keep silent with

regard to above measures.

QUESTIONNAIRE

PERSONAL DATA

1. Name :
2. Age :
(a) 18-25 (b) 26-35 (c) 36-45 (d) Above 45

3. Gender :
(a) Male (b) Female

4. Educational Qualification :
(a) Below Hr Sec (b) Hr Sec (c) UG (d) PG

5. Experience :
(a) 0-1 Yrs (b) 1-5 Yrs (c) 5-10 Yrs (d) Above 10 Yrs

6. Total Salary :
7. Designation :
8. Safety Measures :
8.1. Are you satisfied with the safety appliances in work place?
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

93
 e) Highly Dissatisfied

9. Medical Facility
9.1 Specify the level of satisfaction

a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied

e) Highly Dissatisfied

9.2 Is there any periodical medical check up given to you

(a) Yes (b) No

10. Inter-relationship:

10.1. Relationship between co-workers

(a) Cordial (b) Moderate (c) Indifferent

10.2. Relationship between supervisor and workers.

(a) Cordial (b) Moderate (c) Indifferent

10.3. Level of communication between supervisor and employee

(a) High (b) Very high (c) Low (d) Very low (e)Moderate

11. Level of motivation given to employee

(a) High b) Very high (c) Low (d) Very low (e) Moderate

12. Are u informed about all the management policies?

(a) Always (b) Sometimes (c) Rarely (d) Never

13. Does the management solve all your grievances?

(a) Always (b) Sometimes (c) Rarely (d) Never

14. Level of freedom to express your ideas?

(a) High (b) Very high (c) Low (d) Very low (e) Moderate

15. Are you satisfied with the work you do.

(a) Always (b) Sometimes (c) Rarely (d) Never

16. In general are you satisfied with the welfare and safety measures given by Management?

(a) Yes (b) No

94
17. Suggestion for Improvements

Bibliography

Books and magazines:

1. Business Today

3. Business world

4. Confederation of Indian industry

Newspapers:

1. Financial express

2. Business Standard

3. Nas scorn Report

Web sites:

1. www.google.corn

2. www. topnews.in

3. www.indianbpo.org

4. www.articlesnatch.corn

5. www.vodafone.in

6. www.intelenet.in

7. www.scribd.co.in

95
96