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Good

morning
PRESENTED BY:
Priyanka Bhardwaj
Sandeep Yadav
Nikhil Aggarwal
Anil Tiwari
What is OUTSOURCING ?

• Delegating a Company’s Business


Processes to Third Party
What is BPO?
• Contracting of the operations
and responsibilities of a specific
business processes to a third-
party service provider.
Reasons for outsourcing
• Reduce and control operating costs
• Improve companies focus
• Free internal resources for other
purpose
BPO Categories:
• Back Office outsourcing
Internal Business Functions
• Front Office outsourcing
Customer Related services
DIFFERENCE BETWEEL BPO& CALL CENTRE

• Business process • Call centre ?


outsourcing (BPO)
outsourcing that A call center is a
involves the centralized office
contracting of the used for the
operations and purpose of
responsibilities of receiving and
a specific transmitting a
business large
functions to a volume of
third-party requests by
service provider. telephone.
Sectors:
• Telecom Industry
• Travel & Hospitality Industry
• Technology Industry
• Banking/Financial services
• Insurance Industry
• E-commerce & Retail Industry
• Industrial Sector
• Distribution Sector & many more
Market Share:
• BPO and ITes Contributes 7% to GDP
• The global BPO Industry is 120-150 billion dollars
• Indian BPO is US $11.4billion.
• 824 call centers in India.
• Indian IT-BPO recorded Growth of 28% in FY
2007-08.
• Expectations of $30 billion by 2012.
• Around 6,00,000 people employed, about the
same as IT industry but It’s growing faster.
• Indian BPO players are ranked top global players
in every single segment because they invest
massively in training, quality assurance,
productivity improvement and information
security.
Different Types of Services Being Offered By
BPO's

• Customer Support Services


• Technical Support Services
• Telemarketing Services
• Employee IT Help-desk Services
• Insurance Processing
• Data Entry Services / Data Processing Services
• Data Conversion Services
• Form Processing Services
• Internet / Online / Web Research
Distribution of BPO providers in %
India’s Top 5 BPO’s: World’s Top 5 BPO’s
1. Genpact 1. IBM Global
2. WNS(World 2. Accenture
Network Solutions)
3. Wipro 3. Hewlett Packar
4. HCL 4. MphasiS
5. Firstsource(ICICI) 5. Ernst &
Young/Capgemini
Leading BPO-ITes cities in India:
• Tier I cities like
Bangalore, Chennai, Hyderabad, NCR, Pune, Mumbai, Kolkata.
These are leading IT cities. With rising infrastructure costs BPO’s are
shifting operations to.

• Tier II cities like


Nashik, Aurangabad, Mangalore, Chandigarh, Jaipur, Mysore etc.
– Offers lower Business process overhead(rent, electricity).
– Have a less reliable infrastructure system.
Why India is more
preferable
• English speaking population
• Educated technically skilled employees
(large no. of graduates, engineers)
• Telecom facilities.
• Favorite govt. policies
• Lower wages (cost reduction up to 50% )
• Suitable & large human resources
• Well positioned with IT-enabled services
• Conductive environment
• Large unemployment rate.
Problems in India :
• Poor infrastructure
• Cultural differences
• Internal competition for resources
• Rising labor costs
• Political and religious instabilities
Why it attracts people
• It don’t require any academic
specialization
• No specific age bar
• Offer good work environment
• Good wages along with some excellent
benefits
• Provide transport facilities
• Attractive lifestyle
• Flexibility of time
• Self independence
Why people dislike or leave this
• Tedious
• Monotonous
• Sleepless nights /Physical strains
• Some people leave for
Higher education
Higher salary
Better status.

• low brand equity


• Lack of focused training and certifications
• No growth opportunity/lack of promotion
• No personal/ social life
• No technical/professional gain
• Lack of focused training and certifications
Problems:
Key To success:
• Rapid training module.
• Providing Employee Benefits
PF Insurance
Gratuity Accommodation
Loans Educational Benefits
Performance based incentives
Flexi-time Maternity Leave
• Career growth opportunities
SWOT Analysis …
STRENGTHS:
• Large no. of talented graduates
• Affordable and quality education as compared to
developed countries
• English language benefit
• Well-developed IT industry
• Strong customer base of well known companies
• Powerful venture capital interest in investing in growth
opportunity

WEAKNESS:
• Scare foreign language skills other than English.
• Lack of customer service culture
• Expensive and poor quality
• Poor electricity supply
• Cultural differences
• High attrition rates, therefore less no. of people with
extensive call centre experience
SWOT Analysis …
OPPORTUNITIES :
• Horizontal and vertical expansion of existing customer
base into new markets
• Time zone difference between India and target
markets
• Increasing awareness of outsourcing services

  THREATS:
• Political instability
• India's competitors in Eastern Europe, Latin America
and the Asia Pacific regions offering cheap BPO
services
• Increasing technology automation.