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A PRESENTATION ON BPO

By:
AvantikaSingh Neha
Anand
Gaurav Malhotra
Prabhsimran Kaur
Nakul Anand Rashmi
Outsourcing

 Process by which an organization


contracts with another individual or
company to get some of its work done.
 Viewed this way, most organizations go
for some kind or other of outsourcing.
Generally it is non-core aspects of the
business that are outsourced.


Outsourcing can be divided into two broad
categories:
ü BPO
ü KPO

 Apart from BPO and KPO, ITO or


Information Technology Outsourcing is
another major category



KPO or Knowledge Process
Outsourcing
 Typically calls for work that needs higher
levels of involvement from the worker.

 The worker has to employ advanced levels


of research, analytical and technical
skills and has to make decisions of a
higher order than BPO work.

 Examples: pharmaceutical research and
development, patent/ intellectual
property research, animation and
simulation. Data research and analysis,
legal services, content writing and
development and database
development services.
 KPO industry is less older and mature than
the BPO sector.

Business process
outsourcing (BPO)
 A form of outsourcing that involves the
contracting of the operations and
responsibilities of a specific business
functions (or processes) to a third-party
service provider.
 Originally, associated with manufacturing
firms, such as Coca Cola that outsourced
large segments of its supply chain.
 In the contemporary context, it is
primarily used to refer to the
outsourcing of services.

BPO (Business Process
Outsourcing),
 a particular process task is outsourced.
 An example would be payroll.
BPO: categorization

 Back office outsourcing - includes internal


business functions such as human resources
or finance and accounting, and front office
outsourcing - which includes customer-
related services such as contact center
services.
 Offshore outsourcing - BPO that is
contracted outside a company's country is
called offshore outsourcing.
 Nearshore outsourcing - BPO that is
contracted to a company's neighboring (or
nearby) country is called nearshore
outsourcing.
 Given the proximity of BPO to the information
technology industry, it is also categorized as
an information technology enabled
Business Process Outsourcing includes the
following areas and a lot more:
The BPO Industry

 By outsourcing their back office business


processes to cheaper nations like China, India,
Philippines, Mexico, South Africa etc companies
can:

cut costs

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The BPO Industry

Benefits of BPO

 Increase productivity
 Cut operational costs
 Provide better service
 Save costs
 Improved accountability

 The BPO boom seems to be increasing


everyday with more and more companies
deciding to follow the race, making
conditions really viable for a positive
growth in the BPO industry. You can make
money online through BPO.

WHY BPO
 Laying Off Workforce Results In
Demoralized Staff And Dip In
Productivity :
 Laying Off Workforce Results In
Demoralized Staff
 Dip In Productivity In the layoff process
 companies often throw talent overboard
along with the layers of suddenly
“unnecessary” bureaucracy
 Employees left behind are often
demoralized that productivity dips
dramatically
 Smart companies keep the implications of
their short term actions within a long
 According to a study by Leadership IQ,
74% of employees who kept their job
amidst a corporate layoff say their own
productivity has declined since the
layoff. And 69% say the quality of their
company’s product or service has
declined since the layoffs.


There Is An Alternative…
Business Process Outsourcing

 Enables businesses to rapidly lower costs


 set the stage for future growth and
expansions
 Business process outsourcing can prove to
be a life raft for survival
 A platform to thrive after the storm is over
If implemented properly
 BPO can be a fast and simple tool to help a
company survive a downturn and then to
thrive when the economic climate calms
down
Reasons for outsourcing

 Cost savings
 Focus on Core Business.
 Cost restructuring.
 Improve quality.
 Knowledge
 Contract
 Operational expertise
 Access to talent


Reasons for outsourcing

 Capacity management.
 Catalyst for change.
 Enhance capacity for innovation..
 Reduce time to market
 Commodification.
 Risk management.
 Venture Capital.
 Tax Benefit


Capabilities: Why go to
India?
 The driving forces that account for the
increase in foreign investments through
the BPOs in India are:
 Emphasis on quality services
 Skilled sets and workers
 Cost effectiveness
 Quality products
 English speaking manpower

Pros and Cons of BPO

 pros  cons

 English Language  Poor Infrastructure


Proficiency  Cultural Differences
 Skilled Workforce  Internal competition
 Lower Wages for resources
 Flexibility in
Working Hours
 Rising labor costs
 Suitable Human  Political and religious
Resources instability
 Large Number of 
Graduates
SWOT Analysis
STR EN G TH S
W EA KN ESSES
O P P O R T U N IT IE S
TH R EATS
Thank You