bpo sector analysis
DESCRIPTION
BPO in indiaTRANSCRIPT
INDIAN BPO INDUSTRY
BPO=
Outsource non-core activities
Outsourcing can be defined as An organization entering into a contract with another organizationto operate and manage one or more of its business processes
Why Outsource Work?• Because you don't have the time to do it yourself.
– You may have got a product to develop and you've got to get it into the market before your competitor does.
• Because you don't have the money to do it yourself.– Your business is growing exponentially but your
resources can't cope with the growth.• Because you'd rather focus on mission-critical
issues.– You're not interested in frittering away time and
energy on non-core functions.• Because you don't have the skills to do it yourself.
– You need the best talent in the world, but it's scarce/out of reach/ just not available or just too expensive.
• Because its cheaper.– You want to save on costs while keeping the long term
perspective also in view.
India BPO - Cost Structure
Improved ROI through higher asset utilization and lower operating costs
At Par
UK India
Capital Costs
2-2.5
TimesAsset Utilization
50-60%
LowerLabour Cost
6
Potential Across the Value Chain
Source: NASSCOM-KPMG 2004
Finance and Accounts
Product Development
Human Resources Management
Technology ServicesIn
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Human Resources• Payroll Processing• Recruitment and
selection support• HRIS
IT Services and Support• Custom development• Systems integration• Hosting / maintenance• Customer help desk /
support
Operations / logistics• Order tracking• Order / claims /
application processing• Payments processing
Sales / Marketing and Customer Service
• Tele-sales• Order Processing• Customer services and
Complaints• Help-desk
Finance and Accounting• Back-office• Accounts
payable/receivable• Financial reporting• Finance accounting• Revenue accounting
Research / Design and Development
• Clinical research• VLSI design• DSP chip design• Avionics research• Engineering design
services• Legal research
KEY GROWTH DRIVERS
ABUNDENT TALENT
• COST COMPETITIVENESS
FOCUS ON QUALITY
• INFORMATION SECURITY
KEY GROWTH FACTORS
RAPID GROWTH IN KEY BUSINESS INFRASTUCTURE
ENABLING BUSINESS POLICY
HIGHLIGHTS OF INDIAN ITES/BPO
• EXPORTS GREW FROM USD 6.3 bn IN FY 05-06 TO USD 8.4 bn IN FY 06-07
• EMPLOYEE BASE GREW FROM 415000 TO 553000 IN LAST ONE YEAR
• SCOPE OF SERVICES EXPANDING• DOMESTIC MARKET GREW FROM USD 0.9 bn
TO USD 1.2 bn
TYPES OF SERVICES OFFERED BY BPO
• CUSTOMER SUPPORT SERVICE• TECHNICAL SUPPORT SERVICE• TELEMARKETING SERVICE• EMPLOYEE IT HELPDESK
SERVICE• INSURANCE PROCESSING• DATA ENTRY SERVICES• DATA CONVERSION SRVICES
TYPES OF SERVICES OFFERED BY BPO
• SCANNING ,OCR WITH EDITING
• ACCOUNTING AND BOOK KEEPING
• FORM PROCESSING• INTERNET ONLINE WEB RESEARCH
ANCHOR SEGMENTS OF INDUSTRY
Competitor landscape is changing
BPO players in India
BPO start-ups (funded primarily by VCs)
Global BPO providers having an Indian offering
BPO businesses of large Indian business houses
BPO arm of Indian IT services players
ONE SOURCE
~ 7,000 heads
~ 4,000 heads
~ 4,000 heads
~ 4,500 heads
~ 10,000 heads
~ 3,000 heads
~ 1,200 heads
~ 2,500 heads
~ 4,000 heads
~ 8,000 heads
~ 4,700 heads
~ 9,800 heads
~ 1,200 heads
MAJOR PLAYERS
• WNS GROUP• WIPRO• IBM DAKSH• CONVERGYS• HCL TECHNOLOGIES• EXL• ZENTA
GOVERNMENT INITIATIVES
• ESTABLISHMENT OF STPI
• TAX HOLIDAYS• BASIC
INFRASTRUCTURE• SINGLE WINDOW
CLEARENCES FOR SETTING EOU
• TELECOM SECTOR DEREGULATION
• PROGRESSIVE POLICY(FISCAL AND
TRADE)• AREA LIMIT
EXEMPTION IN SEZ POLICY
THANKS