13136195 bpo business processing unit 1

8/8/2019 13136195 Bpo Business Processing Unit 1

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MARKETING RESEARCH.

BPO IN INDIACompiled By Tasneem, Saurin, Shafi, Tommy & Murli


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WHAT IS BPO?Business Process Outsourcing is the strategic use of outside resources to perform activities traditionally handled by internal staff and resources, none of which are core to the functioning of the company. It is a strategy by which an organization contracts routine functions to service providers who specialize in suchfunctions. Thus the service provider is not only responsible for the execution of a business process but also for improving it


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HISTORY OF OUTSOURCING1776 :-Adam Smith discovered competitive advantage through outsourcing. 1970s-1980s :- C. K. Prahalad's core competency theory expounded in Harvard Business School. American Express, Swissair, British Airways and General Electric(GE) startcaptive units in India. 2000 :-Third Party players spring up in India. By 2005 end, over 300 open shop in India and beyond. Some of them even set up operationsoutside.


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MARKET SHARE

The global BPO Industry is estimated to be worth 120-150 billion dollars, of this the Indian BPO is estimated to be some US $11.4 billion. The $11-billion Indian BPO industry will reach $30 billion by 2012. The Indian BPO Industry employs 6,00,000 people approx.


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GLOBAL GEOGRAPHICAL DISTRIBUTION OF BPO PROVIDERS


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WHY INDIA AN ATTRACTIVE DESTINATION FOR BPOLow cost staff Well positioned with ITES Large pool of Skilled workforce EnglishSpeaking workforce Conducive Environment Government Policy Support Cost reduction up to 50% Low infrastructure Cost Favorable time lag:(12 hrs with US & 5 hrswith

Europe)

Improving Telecom Infrastructure to meet call centre requirements


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SEGMENTS IN BPO~Segments~ Customer Care Human Resource Finance Market Research Network Consultancy Technical Support Collections Transaction Processes Accounting Administration Training


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CALL CENTER & ITS TYPES

A call center is a centralized office used for the purpose of receiving and/or transmitting a large volume of requests by telephone for business specific purposes.


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TOP 15 BPO COMPANIES IN INDIARank 1 3 5 7 9 11 13 15 Co. Genpact Wipro BPO ICICI One Source Progeon EXL Service Holdings MphasiS BPO GTL Transworks Rank 2 4 6 8 10 12 14 Co. WNS(World Network Solution) HCL BPO Services IBM Daksh Aegis BPO Services 24/7 Customer Intelenet Global Services TCS BPO


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HOW MANY CALL CENTERS IN INDIAResult of a survey of 824 organizations throughout all the regions representingcall centers India, China, HongKong, Malaysia, Philippines, Singapore & Thailand India, which now has the most call centre seats in the region, would see theirnumber rise from 96,000 in 2003 up 65 per cent to 158,000 in 2004

Martin Conboy,

(Chief officer of Callcentres.net)


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WHAT SECTORS DO THEY SERVE? 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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SETTING UP A BPO Background Stability Vision Transparency Market

Research Employee Centric Environment Certificates


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ATTRITION RATE IN BPO & OTHER SECTORSSector 0-3 years 25% 20% 35% 40% 40% 7% 10% 16% 32% 4-7 years 10% 20% 25% 35% 30% 3% 5% 11% 25% 8-12 years 5% 20% 20% 20% 20% 2% 2.5% 7% 10% 13+ years 2% 3% 20%7.5% 15% 10% 2% 2.5% 11% 5%

Pharmacy & Chemicals Manufacturing Financial Services Hospitality Ad & Media BPOAutomobile Banking Infrastructure IT & Telecom

8.58% 2.46% 2.46%


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WHY DO COMPANIES OUTSOURCE?Reduce Cost. Improve Efficiency. Additional Expertise. Specialized Technology. Better Solutions. Overall Development of Outsourced Process. Concentration on Core Competencies.


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CURRENT AFFAIRS OF INDUSTRYIndian IT-BPO industry records an overall growth of 28% in FY 2007-08 USD 39.6 billion in FY06-07. According to the annual NASSCOM survey: growth of 28% with revenues of USD 52 billion FY07-08 The Indian IT-BPO industrys resilience is reflected in its FY07-08 with a 28.2% . The target of USD 60 billion in exports by FY09-10.


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CURRENT AFFAIRS OF INDUSTRY CONTDBarrack Obama outsourcing views and US presidential elections. BPO increasing atan annual growth rate of 50% during 2004-06. By 2006 will employ 0.4 million pe

ople Financial meltdown in the US Decline from 50% to 33% in finance and insurance sectors. Estimated 5000-8000 lose job in BFSI NASCSCOM: short term and company specific.


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FUTURE OUTLOOKo o

CONTD

o

o o o

Great number of employment up to 0.4 million Large number of English speaking college graduates. More and more foreign technological firms setting up Limited work skills and experience Neglect in the system Media industries


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RISE IN RUPEE VALUE LEADS TO FALL IN OUTSOURCING The

Indian rupee has been appreciated against the dollar in the last 1 year. Core Objective of outsourcing to India has been affected. Inflation in country has added problems. The world economy is going through recession. Better to have a job than to have no job


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COUNTERACT Flexibility

in Operations

Result Oriented Solutions Beyond Cost Saving Knowledge Industry (Specific)

Go

Develop


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WHAT MORE SHOULD BE DONE ? Farm

& Hunt Strategy should be implemented Farm for more projects from existing clients Farm for more projects from new clients Hunt for new business in same industry domain Hunt for new business in new sectors & Industries


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WHAT MORE SHOULD BE DONE ? People

seeking a career in BPO Industry should develop Industry Knowledge Understand Retail & Banking better Campus programme should be introduced in partnership of the BPO Co. to enhance curriculum & create sensitization Industry should become more outcome based & think solution rather than just transactions.


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Always make your total effort, even when the odds are against you.


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13136195 bpo business processing unit 1

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