BPO

A process of hiring another company to handle business activities for you.

BPO also referred to as ITES becoz IT enables services to be performed.

In the early days ,BPO consisted of outsourcing processes of payroll ;later on came in financial and administration processes, Human Resources functions ,call centre and customer service activities.

OUTSOURCING TERMS
OFF SHORE - A work process outsourced to a different

country not nearby. E.g. US outsources a work process to India.

NEAR SHORE A work process outsourced to a nearby

country. E.g. US outsources to Mexico or Canada.

ONSHORE A work process outsourced from a one company

to another company in the same country.

EVOLUTION BPO INDUSTRY

COST EFFICIENCIES BPO 3.1 GLOBAL DELIVERY BPO 3.2 DESIGN AND INNOVATION HUB BPO 3.3

STRUCTURE OF BPO INDUSTRY

Multinational BPOs An international corporation which delivers services

to and from more than one country. E.g. EXL, Aegis, FirstSource pure BPO players.
Captive Units MNC-owned units that undertake work for the parents

global operations & organization-owned units of domestic organizations. E.g. HSBC, Dell, JP Morgan. N.B Some captives operating in India who work for their clients other than their parent organization are Accenture, Syntel, HP.
Integrated Organizations MNCs working in BPO, IT & Software

Services, Engineering, Product and Platform and Consulting. E.g. Infosys, Wipro, TCS, IBM, Genpact.

BPO INDUSTRY - INDIA

REVENUES USD BILLION DIRECT EMPLOYMENT (000)

FY 2002 1.6
CAGR 31%

FY 2002 155 FY 2010 985

CAGR 26%

FY 2010 14.7

1.5 % CONTRIBUTION TO INDIAS GDP IN THE LAST DECADE. 7% OF THE TOTAL INDIAN EXPORTS TILL FY 2010. Creation of 4.5 million jobs (direct & indirect). BY 2020 REVENUES TO TOUCH $ 65 BILLION OF WHICH INDIAS SHARE WOULD BE ONE-FIFTH.

INDIAN BPO INDUSTRY KEY FACTS

RANKING/ SHARE

34%

COMPANIES IN INDIA/MNCs & CAPTIVES OUT OF INDIA

500 +

200 +

COUNTRIES SERVICED/LANGUAGES SERVED

66

35+

COMPENSATION & BENEFITS

SALARY
TRANSPORT SUPPORT

ATMS
MEDICAL ROOM

LIFE INSURANCE
MEDICAL INSURANCE

ANNUAL BONUS & INCENTIVES

RETIREMENT BENEFITS

PERSONAL ACCIDENT INSURANCE

BUSINESS LINES
CUSTOMER CARE
COLLECTIONS FINANCE & ACCOUNTING (F & A) ANALYTICS IT SERVICES , NETWORK & INFRASTRUCTURE SUPPLY CHAIN MANAGEMENT TRANSACTION AND DATA ENTRY

OTHERS

CAREER GROWTH - BPO

SUPPORT FUNCTIONS HUMAN RESOURCES FINANCE
SENIOR LEADERSHIP ROLES

LEGAL , ETHICS IT SUPPORT

FACILITIES , SECURITY
CORPORATE COMMUNICATIONS

SENIOR MANAGERIAL ROLES

REPORTING/ANALYSTS
TL/MANAGERS TRAINERS CUSTOMER FACING ROLES/ASSOCIATES QUALITY/PROCESS ENGINEERING

BUSINESS DEVELOPMENT

LEARNING /TRAINING
OPERATIONS/DAILING/ROUTING

CG ENTRY TO MIDDLE MGMT

NORMAL TRACK 18 YRS
AVG TIME SPENT AT EACH LEVEL 24-36 MONTHS ASSOCIATE DIRECTOR /AVP SENIOR MANAGER

MANAGER

ASSISTANT MANAGER/ DEPUTY MANAGER

MANAGEMENT TRAINEEE/ ASSISTANT MANAGER TEAM LEAD

FAST TRACK 10-12 YRS

SENIOR ASSOCIATE AVG TIME SPENT AT EACH LEVEL 18 -24 MONTHS ASSOCIATE

CG MIDDLE TO UPPER MGMT

NORMAL TRACK 12 YRS
AVG TIME SPENT AT EACH LEVEL 24- 36 MONTHS

SENIOR VICE PRESIDENT

VICE PRESIDENT

DIRECTOR ASSOCIATE DIRECTOR/ ASSISTANT VICE PRESIDENT

FAST TRACK - 6 YRS

AVG TIME SPENT AT EACH LEVEL 18 - 24 MONTHS

OTHER BEBEFITS
GLOBAL EXPOSURE
TRAVEL / ON THE JOB TRAINING ASSOCIATION WITH WORLD CLASS BRANDS BUILD COMPETENCIES AND SKILLS MULTIPLE DOMAIN OPTIONS TRAINING

TOP 10 BPO EXPORTERS INDIA 2010 -2011

RANK 1 2 3 4 5 6 7 8 9 COMPANY GENPACT INDIA PVT. LTD TATA CONSULTANCY SERVICES WNS GLOBAL SERVICES PVT. LTD AEGIS LTD WIPRO BPO FIRST SOURCE SOLUTIONS LTD INFOSYS BPO ADITYA BIRLA MINACS WORLDWIDE LTD EXL SERVICE .COM (INDIA) PVT. LTD

10

HINDUJA GLOBAL SOLUTIONS LTD

BPO FUTURE FOREWORD

MORE SPECIALISED SERVICES BASED ON EXPERTISE IN THE AREA OF COLLECTIONS, FINANCIAL SERVICES,ACCOUNTING,HEALTHCARE ETC. INDUSTRY GROWTH WILL BE SPURRED BY ORGANIZATIONS THAT KNOW THEIR CUSTOMERS WELL AND THAT ARE BEST WITHIN THEIR RESPECTIVE DOMAINS. THERE WILL BE A MOVE FROM B2B TO B2C SERVICES,SERVING CONSUMERS ACROSS WORLD USING NEW DELIVERY PLATFORMS.

DATA ANALYTICS TO GROW MUCH FASTER THAN BPO INDUSTRY AVERAGE WHICH WILL BE NEXT BIG THING IN THE COMING DECADE.