CASE STUDY ON INDIAN BPO INDUSTRY -ITS

PROMBLES & PROSPECTS

The BPO industry has flourished at a frantic pace in the last few
years and companies have ended up with huge savings by being
a part of the industry. By outsourcing their back office business
processes to cheaper nations like China, India, Philippines,
Mexico, South Africa etc companies can cut costs, better
concentrate on their core businesses and strengths, ensure
better customer satisfaction and in a way get an edge over their
competitors. A report suggests that US firms have saved nearly
$8 billion through outsourcing to third world nations like India.
 Back office operations  Logistics Management
 Customer Relationship  Supply Chain Management
Management  Medical transcription
 Call Centers and telemarketing
 Back Office Operations
 Tele-servicing and product
 Human Resources
support
 Insurance Claims Processing
 Payroll maintenance
 Legal database maintenance
 Finance / Accounting/billing
Productivity Improvements
Cost Savings
Improved HR
Focus on Core Business
Benefits at a Glance
Increased Capability
• The National Association of Software and Services Companies
(NASSCOM), the apex industry body of software and service
companies in India, released the top 15 ranking of third party
ITES (call centre and BPO). The rankings are based on revenues
for the fiscal year 2003-04 reported in accordance with
Generally Accepted Accounting Principles in the United States
(US GAAP).

•
 WNS  ICICI OneSource

 Wipro Spectramind  Emphasis BPO Services

 Daksh e-Services  EXL Services

 Convergys India Services  Tracmail Group

 HCL Technologies  GTL Ltd

 BPO Services  Customer

 Zenta Technologies  Hinduja TMT

 24x7 Customer
 OPPORTUNITY
- Revenue Potential across
 Global Reach
 Lucrative audience different product categories
- Expand beyond financial
 One stop Shop for all
category
financial requirements
- Country specific sites
 Multiple Partners

STRENGTHS WEAKNESS

- The entire concept is built around

THREAT

the assumption of a robust - Limited to services which

backend process which manages have Partner Presence
the On Ground logistics
- Requires investment in terms
- Revenue Sharing from Banks of development / people /
marketing
- Competition
 STRENGTHS
1. India is the hottest destination for any company which

wants to outsource its business processes

2. Attractive factors of Indian market are cost, people

environment, tax structure

3. Corporate tax exemption to all ITES companies till 2010

4. Choice of nearly 82% companies in US for outsourcing

5. Strong customer base of well known companies

WEAKNESSES

• (Internal)

• High attrition rates

• High cost of training the new recruits

• An average Indian call center employee works with the company for 11 months only

• Scarce foreign language skills other than English

• Demand and supply disparity

• Lack of career growth

• Poor electricity supply

• Cultural differences

• (External)

• Opposition from US politicians

• threat of real competion from other players like philippines

 OPPORTUNITIES

• Philippines, ireland and even china are expected to catch up with india in the future

• An estimated 70,000 new Jobs expected in 2010 in the field of ITES. Plus there will be

additional hiring to replace industry attrition that is around 25%.

• On the other hand BPO and outsourcing services would generate around 1, 25,000 new Jobs in

2012.

• Horizontal and vertical expansion of existing customer base into new markets

• Time zone difference between India and target markets

• Increasing awareness of outsourcing services

• Powerful venture capital interest in investing in growth opportunity.

•
 THREATS

• High Billing rates

• Political instability

• India's competitors in Eastern Europe, Latin America and the Asia

Pacific regions offering cheap BPO services

• Technology Automation
• The future for the IT/BP industry holds bright.

• It is estimated that 56% of the BPO market could be India's by the year

2011 with the demand for BPO services increasing at an annual growth rate

of 50 per cent.

• The pace at which the Indian BPO market is increasing is tremendous.

• The market of BPO in India is likely to be around $9-12 billion by the year

2015 and will employ around 0.4 million people.

• The BPO market is ready to fire up and India Inc is all geared for this big

opportunity.

• There is a long way in making India the BPO super power of the world.
THANK YOU