Good

morning
Pradeep
Kumar
Manish
Cauhan
Manish Gupta
Pradeep
Kumar
What is OUTSOURCING ?

• Delegating a Company’s Business

Processes to Third Party
 What is BPO?
• Contracting of the operations
and responsibilities of a specific
business processes to a third-
party service provider.
Reasons for outsourcing
• Reduce and control operating costs
• Improve companies focus
• Free internal resources for other
purpose
BPO Categories:
• Back Office outsourcing
Internal Business Functions
• Front Office outsourcing
Customer Related services
Certain terms :
• Offshore
• Near shore
• Inshore
 What BPO Provides
Human Resource Finance
Market Research Network Consultancy

Technical Support Collections

Transaction Processes Accounting

Administration Training

Customer Care
Sectors:
• Telecom Industry
• Travel & Hospitality Industry
• Technology Industry
• Banking/Financial services
• Insurance Industry
• E-commerce & Retail Industry
• Industrial Sector
• Distribution Sector & many more
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 It’s 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.
Distribution of BPO providers in %
India’s Top 5 BPO’s: World’s Top 5 BPO’s
1. Genpact 1. IBM Global
2. WNS(World 2. Accenture
Network Solutions)
3. Wipro 3. Hewlett Packar
4. HCL 4. MphasiS
5. Firstsource(ICICI) 5. Ernst &
Young/Capgemini
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 BPO’s 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.
 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.
Problems in India :
• Poor infrastructure
• Cultural differences
• Internal competition for resources
• Rising labor costs
• Political and religious instabilities
Why it attracts people
• It don’t 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
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
Problems:
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
Challenges to be faced
Ahead…
• Retention of clients, employees

• Quality and compliance issues

• Emerging Foreign Destinations

• Physical Infrastructure