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Business Process Outsourcing, Call Centres, pros n cons
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Good Good morningmorning
Pradeep Kumar
Manish Cauhan
Manish Gupta
Pradeep Kumar
Nishant Gupta
Vikas Tyagi
What is OUTSOURCINGWhat is OUTSOURCING ??
• Delegating a Company’s Business Delegating a Company’s Business Processes to Third PartyProcesses to Third Party
What is BPO?What is BPO?•Contracting of the operations Contracting of the operations
and responsibilities of a specific and responsibilities of a specific business processes to a third-business processes to a third-party service provider.party service provider.
Reasons for Reasons for outsourcingoutsourcing•Reduce and control operating Reduce and control operating
costscosts
• Improve companies focusImprove companies focus
•Free internal resources for other Free internal resources for other purposepurpose
BPO Categories:BPO Categories:
•Back Office outsourcingBack Office outsourcing Internal Business FunctionsInternal Business Functions
•Front Office outsourcingFront Office outsourcing Customer Related servicesCustomer Related services
Certain terms :Certain terms :
•OffshoreOffshore
•Near shoreNear shore
• InshoreInshore
What BPO ProvidesHuman Resource Finance
Market Research Network Consultancy
Technical Support Collections
Transaction Processes Accounting
Administration Training
Customer Care
Sectors:Sectors:
• Telecom IndustryTelecom Industry
• Travel & Hospitality IndustryTravel & Hospitality Industry
• Technology IndustryTechnology Industry
• Banking/Financial services Banking/Financial services
• Insurance Industry Insurance Industry
• E-commerce & Retail Industry E-commerce & Retail Industry
• Industrial Sector Industrial Sector
• Distribution Sector & many moreDistribution Sector & many more
Market Share:Market Share:
• BPO and ITes Contributes 7% to GDPBPO and ITes Contributes 7% to GDP• The global BPO Industry is 120-150 billion dollarsThe global BPO Industry is 120-150 billion dollars• Indian BPO is US $11.4billion. Indian BPO is US $11.4billion. • 824 call centers in India.824 call centers in India.• Indian IT-BPO recorded Growth of 28% in FY Indian IT-BPO recorded Growth of 28% in FY
2007-08.2007-08.• Expectations of $30 billion by 2012. Expectations of $30 billion by 2012. • Around 6,00,000 people employed, about the Around 6,00,000 people employed, about the
same as IT industry but It’s growing faster.same as IT industry but It’s growing faster.• Indian BPO players are ranked top global players Indian BPO players are ranked top global players
in every single segment because they invest in every single segment because they invest massively in training, quality assurance, massively in training, quality assurance, productivity improvement and information productivity improvement and information security.security.
Distribution of BPO providers in %
India’s Top 5 BPO’sIndia’s Top 5 BPO’s:: World’s Top 5 BPO’sWorld’s Top 5 BPO’s
1.1. GenpactGenpact
2.2. WNS(World WNS(World Network Solutions)Network Solutions)
3.3. WiproWipro
4.4. HCLHCL
5.5. Firstsource(ICICI)Firstsource(ICICI)
1.1. IBM GlobalIBM Global
2.2. AccentureAccenture
3.3. Hewlett PackarHewlett Packar
4.4. MphasiSMphasiS
5.5. Ernst & Ernst & Young/CapgeminiYoung/Capgemini
Leading BPO-ITes cities in Leading BPO-ITes cities in IndiaIndia::• Tier ITier I cities like cities like
Bangalore, Chennai, Hyderabad, Bangalore, Chennai, Hyderabad, NCRNCR, , PunePune, , MumbaiMumbai, , KolkataKolkata..
These are leading IT cities. With rising infrastructure costs These are leading IT cities. With rising infrastructure costs BPO’s are shifting operations to.BPO’s are shifting operations to.
• Tier IITier II cities like cities like
Nashik, Aurangabad, Nashik, Aurangabad, MangaloreMangalore, , ChandigarhChandigarh, , JaipurJaipur, , MysoreMysore etc.etc.– Offers lower Business process overhead(rent, electricity).Offers lower Business process overhead(rent, electricity).– Have a less reliable infrastructure system.Have a less reliable infrastructure system.
Why Why IndiaIndia is more is more preferablepreferable
• English speaking populationEnglish speaking population• Educated technically skilled employees Educated technically skilled employees
(large no. of graduates, engineers)(large no. of graduates, engineers)
• Telecom facilities.Telecom facilities.
• Favorite govt. policiesFavorite govt. policies• Lower wages Lower wages (cost reduction up to 50% )(cost reduction up to 50% )
• Suitable & large human resourcesSuitable & large human resources
• Well positioned with IT-enabled Well positioned with IT-enabled services services
• Conductive environmentConductive environment• Favorable time lag Favorable time lag (12 hrs with USA 5 hrs (12 hrs with USA 5 hrs
with UK)with UK)
• Large unemployment rate. Large unemployment rate.
Problems in India :Problems in India :• Poor infrastructurePoor infrastructure
• Cultural differencesCultural differences
• Internal competition for resourcesInternal competition for resources
• Rising labor costsRising labor costs
• Political and religious instabilities Political and religious instabilities
Why it attracts peopleWhy it attracts people• It don’t require any academic It don’t require any academic
specialization specialization • No specific age bar No specific age bar • Offer good work environment Offer good work environment • Good wages along with some Good wages along with some
excellent benefits excellent benefits • Provide transport facilities Provide transport facilities • Attractive lifestyleAttractive lifestyle• Flexibility of timeFlexibility of time• Self independenceSelf independence
Why people dislike or leave Why people dislike or leave thisthis • Tedious Tedious • Monotonous Monotonous • Sleepless nights /Physical strains Sleepless nights /Physical strains • Some people leave for Some people leave for Higher educationHigher education Higher salary Higher salary Better statusBetter status..• low brand equitylow brand equity• Lack of focused training and certifications Lack of focused training and certifications • No growth opportunity/lack of promotion No growth opportunity/lack of promotion • No personal/ social life No personal/ social life • No technical/professional gainNo technical/professional gain• Lack of focused training and certifications Lack of focused training and certifications
Problems:Problems:
Key To success:Key To success:
• Rapid training moduleRapid training module..
• Providing Employee BenefitsProviding Employee Benefits
PF InsurancePF Insurance
Gratuity AccommodationGratuity Accommodation
Loans Educational Benefits Loans Educational Benefits
Performance based incentives Performance based incentives
Flexi-time Maternity LeaveFlexi-time Maternity Leave
• Career growth opportunitiesCareer growth opportunities
Challenges to be faced Ahead…
•Retention of clients, employees
•Quality and compliance issues
•Emerging Foreign Destinations
•Physical Infrastructure