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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 perform
activities traditionally handled by internal
staff and resources, none of which are core to
the functioning of the company. It is a
strategy by which an organization contracts
routine functions to service providers who
specialize in such functions. Thus the service
provider is not only responsible for the
execution of a business process but also for
improving it
HISTORY OF
OUTSOURCING
 1776 :-Adam Smith discovered competitive
advantage through outsourcing.
 1970s-1980s :- C. K. Prahalad's core
competency theory expounded in Harvard
Business School. American Express, Swissair,
British Airways and General Electric(GE) start
captive units in India.
 2000 :-Third Party players spring up in India.
By 2005 end, over 300 open shop in India
and beyond. Some of them even set up
operations outside.
MARKET SHARE
 The global BPO Industry is estimated to be
worth 120-150 billion dollars, of this the
Indian BPO is estimated to be some US $11.4
billion.

 The $11-billion Indian BPO industry will reach
$30 billion by 2012.

 The Indian BPO Industry employs 6,00,000
people approx.
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 reduction 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 Consultancy
Technical Support
Collections
Transaction Processes
Accounting
Administration
Training
CALL CENTER & ITS
TYPES
 A call center is a centralized office used
for the purpose of receiving and/or
transmitting a large volume of requests
by telephone for business specific
purposes.
TOP 15 BPO
COMPANIES IN INDIA
Rank Co. Rank Co.
1 Genpact 2 WNS(World Network
Solution)
3 Wipro BPO 4 HCL BPO Services
5 ICICI One 6 IBM Daksh
Source
7 Progeon 8 Aegis BPO Services

9 EXL Service 10 24/7 Customer
Holdings
11 MphasiS BPO 12 Intelenet Global
Services
13 GTL 14 TCS BPO
15 Transworks
HOW MANY CALL CENTERS
IN INDIA

 Result of a survey of 824 organizations
throughout all the regions representing call
centers
 India, China, HongKong, Malaysia,
Philippines, Singapore & Thailand
 India, which now has the most call centre
seats in the region, would see their number
rise from 96,000 in 2003 up 65 per cent to
158,000 in 2004
Martin Conboy,
(Chief officer of Callcentres.net)
WHAT SECTORS DO THEY
SERVE?
 Telecom Industry
 Travel & Hospitality Industry

 Technology Industry

 Banking/Financial services

 Insurance Industry

 E-commerce & Retail
Industry
 Industrial Sector

 Distribution Sector & many
more
SETTING UP A BPO
 Background

 Stability

 Vision

 Transparency

 Market Research
 Employee Centric

 Environment

 Certificates
ATTRITION RATE IN BPO &
OTHER SECTORS
Sector 0-3 4-7 8-12 13+
years years years years

Pharmacy & Chemicals 25% 10% 5% 2%
Manufacturing 8.58% 2.46% 2.46% 3%
Financial Services 20% 20% 20% 20%
Hospitality 35% 25% 20% 7.5%
Ad & Media 40% 35% 20% 15%
BPO 40% 30% 20% 10%
Automobile 7% 3% 2% 2%
Banking 10% 5% 2.5% 2.5%
Infrastructure 16% 11% 7% 11%
IT & Telecom 32% 25% 10% 5%
WHY DO COMPANIES
OUTSOURCE?
 Reduce Cost.
 Improve Efficiency.

 Additional Expertise.

 Specialized
Technology.
 Better Solutions.

 Overall Development
of Outsourced
Process.
 Concentration on
Core Competencies.
CURRENT AFFAIRS OF
INDUSTRY
 Indian IT-BPO industry records an overall
growth of 28% in FY 2007-08
 USD 39.6 billion in FY06-07.

 According to the annual NASSCOM survey:
growth of 28% with revenues of USD 52
billion FY07-08
 The Indian IT-BPO industry’s resilience is
reflected in its FY07-08 with a 28.2% .
 The target of USD 60 billion in exports by
FY09-10.
CURRENT AFFAIRS OF
INDUSTRY CONTD…
 Barrack Obama outsourcing views and US
presidential elections.
 BPO increasing at an annual growth rate of
50% during 2004-06.
 By 2006 will employ 0.4 million people

 Financial meltdown in the US

 Decline from 50% to 33% in finance and
insurance sectors.
 Estimated 5000-8000 lose job in BFSI

 NASCSCOM: short term and company
specific.
FUTURE OUTLOOK
o New horizon: specialized services to
newly emerging industries like retail,
fashion, apparel or automobile
components
o Customer relation management (CRM).
o Improving between the government
and industry.
FUTURE OUTLOOK CONTD…

o Great number of employment up to 0.4
million
o Large number of English speaking
college graduates.
o More and more foreign technological
firms setting up
o Limited work skills and experience
o Neglect in the system
o 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.
 Core Objective of outsourcing to India
has been affected.
 Inflation in country has added
problems.
 The world economy is going through
recession.
 Better to have a job than to have no
job
COUNTERACT
 Flexibility in Operations

 Result Oriented Solutions

 Go Beyond Cost Saving

 Develop Knowledge Industry (Specific)
WHAT MORE SHOULD BE
DONE ?
 Farm & Hunt Strategy should be
implemented
 Farm for more projects from existing
clients
 Farm for more projects from new
clients
 Hunt for new business in same
industry 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 Retail & Banking better

 Campus programme should be
introduced in partnership of the BPO
Co. to enhance curriculum & create
sensitization
 Industry should become more outcome
based & think solution rather than just
transactions.
Always make your
total effort, even when
the odds are against
you.