BPO SECTOR IN INDIA

• STATUS

• THREATS

• OPPORTUNITIES
PRESENTED BY:
SUMAN NATH (07)
SUMANJIT DEB (32)
DEBOTTAM DUTTA (33)
CP-203
 Business process outsourcing
(BPO)

Business Process Outsourcing (BPO) is the

delegation of one or more business processes
to an external provider that in turn owns,
administers and manages the selected process
based on defined and measurable performance
criteria.
CP-203 2
 Reasons for outsourcing
• Reduce and control operating costs.
• Improve companies focus.
• Free internal resources for other
purpose.

CP-203 3
 The philosophy behind BPO

Do what you do best and leave everything else to

business process outsourcers. Companies are
moving their non-core business processes to
outsource providers.

CP-203 4
 BPO Categories:
• Back Office outsourcing
Internal Business Functions
• Front Office outsourcing
Customer Related services

CP-203 5
Types of services being offered by
BPO
Customer Support Services

Technical Support Services

Telemarketing Services

Employee IT Help-desk Services

Insurance Processing

CP-203 6
 Contd………
Data Entry Services / Data Processing Services

Data Conversion Services

Scanning, OCR with Editing & Indexing Services

Book Keeping and Accounting Services

Form Processing Services

Internet / Online / Web Research CP-203 7

New emerging sectors on the BPO
horizon
 Financial services.

 HR outsourcing.

 Legal outsourcing.

 Animation outsourcing.

CP-203 8
Distribution of BPO providers in %

CP-203 9
India’s Top 5 BPO’s: World’s Top 5 BPO’s

1. Genpact 1. IBM Global

2. WNS(World Network 2. Accenture
3. Hewlett Packar
Solutions)
4. MphasiS
3. Wipro
5. Ernst &
4. HCL Young/Capgemini
5. Firstsource(ICICI)

CP-203 10
 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.

CP-203 11
 INDUSTRY SIZE
 World Bpo size is worth $170-$185bn.
 India has total revenue of $52 bn.
 India has revenues of $15.7 billion from
offshore (which is 7-8% of total Bpo indu.)
 Has a commanding 63% 0f total offshore
 Indian Bpo increasing with a rate of 32%
where world is with mere 28%

CP-203 12
 BPO SECTOR - STATUS
BPO sector in India has been truly impressive in
recent Years. The sector aggregated revenues of
USD 73.1 billion in FY2010, a growth of 5.8 per
cent over FY2009, and generated direct
employment for 2.3 million people.
 The industry today has diversified beyond
traditional IT into many more service lines, with
Indian and MNC service providers collaborating
and competing to build the industry.

CP-203 13
CP-203 14
 BPO SECTOR - THREATS

High Billing rates.

Political instability.

Security issues

Unemployable graduates. CP-203 15

 BPO SECTOR - THREATS
Increasing technology automation

Shortage of middle level management.

High attrition rate

 India's competitors in Eastern Europe, Latin

America and the Asia Pacific regions offering
cheap BPO services.
CP-203 16
PRESIDENT OBAMA-A THREAT TO
INDIAN BPO SECTOR?

Obama’s tax plan to hit Indian BPO’s-

“ We will restore a sense of fairness and balance

to our tax code by finally ending the tax breaks
for corporations that ship our jobs overseas”

CP-203 17
 BPO SECTOR - OPPORTUNITIES
 Horizontal and vertical expansion of existing
customer base into new markets.

 Time zone difference between India and target

markets.

 Increasing awareness of outsourcing service

 In the coming years, the volume of BPO-related

activities and consequently the employment
opportunities are expected to grow exponentially.

CP-203 18
CP-203 19
 India has an edge over other
countries in
Tech savvy professionals

Cost effectiveness

Superior competency

Business risk mitigation

24 hour service

Economy of scale CP-203 20

 CONCLUSION
 Growth of BPO sector in India has been truly
impressive in recent years, but things can get
even better, according to market analysts.
India stands out already as a market leader
as far as BPOs are concerned and so India
also attracts huge foreign investments which
are extremely essential since the Indian
economy is expected to have an
unprecedented growth in the years to come. 
CP-203 21
ANY
QUESTIONS????
CP-203 22
THANK YOU
 Sources
• BPO India: Business Process Outsourcing.
http://www.bpoindia.org/
• Forbes Magazine: Business Process Outsourcing.
http://www.forbes.com/bow/b2b/industry.jhtml?id=38
• Why India?
http://www.indobase.com/bpo/why-india/index.html
• InformationWeek: Indian Outsourcers Grow Fast, Gain Prominence. 
http://www.informationweek.com/story/showArticle.jhtml?articleID=53701018
• CIO Definitions:
http://searchcio.techtarget.com/sDefinition/0,,sid19_gci928308,00.html
• BPO service India: Comparing India with other BPO destinations. 
http://www.xicom.biz/bpo_swot_analysis.html

CP-203 24