BPO INDUSTRY IN INDIA

WHAT IS A BPO ?

Business Process Outsourcing is the

 delegation of one or more IT-intensive business

processes to an external provider

 owns, administers and manages the selected process.

 FACTORS

 Cost Advantage

 Economy of Scale

 Business Risk Mitigation

 Superior Competency
 INDIA – A PREFERRED BPO
DESTINATION Size of circle indicates
quality of knowledge
workers
High
Location Australi
a
attractiveness Singapore

UK India
• Infrastructure
Ireland
– Communicatio Chin
a Philippines
ns
– Other basic
infrastructure
• Country
risks/FDI
incentives Mexico
– Attractive
incentive
Low
– Political Low High
environment People
• Time zone • Quality
attractiveness
attractiveness
Source: Mckinsey analysis • Cost
• Type of skills
• English
 INDIA - ADVANTAGE

Cost Quality Productivity

• 50-75 % cost • Access to highly- • Favourable
reduction for qualified skill time lag
offshore process pool
• 24 x 7
• Lower labour cost • Established service
methodologies
• Sharper
and processes
for better learning
performance curve effect

• Adherence to
leading quality
practices
• Robust
Communication
facilities
INDIA – PRESENCE IN BPO SECTOR
Transaction processing Finance and
-Tax processing Accounting
-Claims processing -Billing
-Cheque processing -Receivables
reconciliation
-Creditors reconciliation
-Financial accounting
BPO
- Transfer of business
process to external
service provider
- Enabled by IT and
Telecom
Content Development/ Customer Relation
Digitisation/ Management
Transcription -Order
-Data entry processing/customer
-Data conversion fulfillment
-Medical transcription -Customer support
-Collection follow-up
-Telemarketing
 LIMITATIONS

 High Attrition rate

 Manpower shortage

 Hidden cost of sub-standard infrastructure

 Social resistance
 CONCLUSIONS

 Withstood negative campaigns by media

 Hot destination for job seekers

 Other industries are dependent

 Estimated to be 9-12 billion by 2010

Presented by :
Somya
Chaturvedi