Good morning

Vikas Kumar Tyagi

Vikas Kumar Tyagi

What is OUTSOURCING
Delegating a Companys Business
Processes to Third Party

Vikas Kumar Tyagi

What is BPO?
Contracting of the operations and
responsibilities of a specific business processes to a third-party service provider.

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Reasons for outsourcing

Reduce and control operating costs Improve companies focus Free internal resources for other
purpose

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BPO Categories:
Back Office outsourcing
Internal Business Functions

Front Office outsourcing

Customer Related services

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Certain terms :
Offshore Near shore Inshore

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What BPO Provides

Human Resource Finance Market Research Network Consultancy Technical Support Collections

Transaction Processes Accounting

Administration Training Customer Care

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Sectors:

Telecom Industry Travel & Hospitality Industry Technology Industry Banking/Financial services Insurance Industry E-commerce & Retail Industry Industrial Sector Distribution Sector & many more

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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 Its 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.
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Distribution of BPO providers in %

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Indias Top 5 BPOs: Worlds Top 5 BPOs 1. Genpact 1. IBM Global 2. WNS(World Network 2. Accenture Solutions) 3. Hewlett Packar 3. Wipro 4. MphasiS 4. HCL 5. Ernst & 5. Firstsource(ICICI) Young/Capgemini

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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 BPOs 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.
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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 Favorable time lag (12 hrs with USA 5 hrs
with UK)

Large unemployment rate. Vikas Kumar Tyagi

Problems in India : Poor infrastructure Cultural differences Internal competition for resources Rising labor costs Political and religious instabilities

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Why it attracts people

It dont 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
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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
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Problems:

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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
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Challenges to be faced Ahead

Retention of clients, employees Quality and compliance issues
Emerging Foreign Destinations Physical Infrastructure
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Vikas Kumar Tyagi