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PROJECT REPORT
BPO SERVICES
FLAT NO 503, VASAVI PARADISE, GANESH NAGAR,
NEAR NAD JN., VISHAKAPATNAM-9
ANDHARA PRADESH
INDIA.
CONTACT: +91- 7382386099, 8019874447
MAIL: evetrixtechnologies@gmail.com
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TABLE OF CONTENTS
1.
P R O J E C T AT A G L A N C E
2.
INTRODUCTION
3.
4.
5.
6.
7.
MARKET STUDY
8.
9.
10.
11.
S W O T AN A LYS I S
12.
ASSUMPTIONS
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PROJECT AT A GLANCE
1. Name of the Center.
3. Constitution
: Service Sector
5. Line of Activity
: BPO SERVICES
7. Project Cost
Visakhapatnam
PROJECT COST
Land
Buildings
Equipment
Working capital
AMOUN
T
Lease
Lease
30.00
15.00
Total
45.00
MEANS
FINANCE
Capital
(Rs.in lacs)
OF AMOUNT
12.50
Term Loan
22.50
Working Capital Loan 10.00
TOTA 45.00
L
8. Promoters Contribution.
9. Loan Required
27.77 %
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INTRODUCTION
Business process outsourcing
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Often the business processes are information technology-based, and are referred
to as ITES-BPO, where ITES stands for Information Technology Enabled Service.
[2]
Knowledge process outsourcing (KPO) and legal process outsourcing (LPO) are
some of the sub-segments of business process outsourcing industry.
Benefits and limitations
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their course: it is only reasonable to expect demand for cost efficiency and
innovation to result in transformative changes at the point of contract renewals.
With the average length of a BPO contract being 5 years or more [ - and many
contracts being longer - this hypothesis will take some time to play out.
On the other hand, an academic study by the London School of Economics was at
pains to counter the so-called "myth" that RPA will bring back many jobs from
offshore. One possible argument behind such an assertion is that new technology
provides new opportunities for increased quality, reliability, scalability and cost
control, thus enabling BPO providers to increasingly compete on an outcomes
based model rather than competing on cost alone. With the core offering
potentially changing from a "lift and shift" approach based on fixed costs to a
more qualitative, service based and outcomes-based model, there is perhaps a
new opportunity to grow the BPO industry with a new offering.
Industry size
India has revenues of US$10.9 billion from offshore BPO and $30 billion from IT
and total BPO (expected in FY 2008). India thus has some 5-6% share of the total
BPO Industry, but a commanding 63% share of the offshore component. This 63%
is a drop from the 70% offshore share that India enjoyed last year: despite the
industry growing 38% in India last year, other locations like Philippines, and South
Africa have emerged to take a share of the market. By the year2016, the BPO
Industry in the Philippines will employ 1.2 million workers with $25 billion in
revenues. The South African call centre industry has grown by approximately 8%
per year since 2003 and it directly employs about 54,000 people, contributing
0.92% to South Africa's gross domestic product (GDP). China is also trying to grow
from a very small base in this industry. However, while the BPO industry is
expected to continue to grow in India, its market share of the offshore piece is
expected
to
decline.
Important
centres
in India are Bangalore, Gurgaon, Chennai,Kolkata, Mumbai, Pune, and New Delhi.
The Association of Southeast Asian Nations (ASEAN) countries, along with the
People's Republic of China and Indiaknown collectively as ACI countriesare
likely to see services like BPO figure strongly in their economies over the medium
term. Services trade among ACI countries has been growing at a very rapid rate
over recent years, despite starting from a relatively low baseline. Although data
are scarce and must be interpreted with caution, an analysis of applied services
sector policies in the region suggests there is much policymakers can do to
intensify this process, and increase the pace at which the transformation to a
service economy is taking place.
Eastern
Europe is
also
an
emerging
BPO
destination. McKinsey
&
Company reported that in 2010, 33,000 jobs were moved to Eastern European
countries. While the overall size of the industry and the number of developers in
Eastern Europe is lower than India, the knowledge of European languages like
French, Spanish, German, and Italian by many Eastern Europeans, as well as the
overall high quality of education in these locations, allows the BPO industry in this
region to continue to grow. For example, the region has an estimated 17.2 million
people with a tertiary education, compared to 13.6 million in India, making it an
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by this industry. The base in terms of headcount being roughly 400,000 people
directly employed in this Industry. The global BPO Industry is estimated to be
worth 120150 billion dollars, of this the offshore BPO is estimated to be some
US$11.4 billion. India thus has some 56% share of the total Industry, but a
commanding 63% share of the offshore component. The U.S $7.2 billion also
represents some 20% of the IT and BPO Industry which is in total expected to have
revenues worth US$36 billion for 2006. The headcount at 400,000 is some 40% of
the approximate one million workers estimated to be directly employed in the IT
and BPO Sector.
The related Industry dependent on this are Catering, BPO training and
recruitment, transport vendors (home pick up and drops for night shifts being the
norm in the industry), security agencies, facilities management companies.
Registration of BPO as OSP
BPO/KPO/Domestic & International Call Centres/NOC etc. are covered under the
'Other
Service
Provider'
(OSP)
Category
by
the
Department
of
Telecommunications.
The companies who are providing the 'Applications Services' means providing
services like tele-banking, tele-medicine,tele-education, tele-trading, e-commerce,
call centre, network operation centre and other IT Enabled Services, by using
Telecom Resources provided by Authorised Telecom Service Providers. The
'Telecom Resource' means Telecom facilities used by the OSP including, but not
limited to Public Switched Telecom Network (PSTN), Public Land Mobile Network
(PLMN), Integrated Services Digital Network (ISDN) and /or the telecom bandwidth
provided by authorized telecom service provider having valid licence under Indian
Telegraph Act, 1885. The 'Company' means a company registered under Indian
Companies Act including foreign companies permitted by RBI under Foreign
Exchange Management Regulations and registered under Part-XI(Section 591 to
608) of the Companies Act, 1956 for setting up a place of business in India.
'Domestic OSP' are the OSP providing the Application Services within national
boundaries. 'International OSP' are the OSP providing the Application Services
beyond national boundaries.
General conditions of OSP registration
(1) Registration may be granted to any company to provide Application Services.
These service providers will not infringe on the jurisdiction of other Authorised
Telecom Service Providers and they will not provide switched telephony. (2) The
entities entitled for OSP registration must be a company registered under Indian
Companies Act,1956. (3) A Company may apply for registration to the Authority in
the proforma prescribed by the Authority from time to time.
Online system for OSP registration
It is mandatory to get new Registration Number allotted by the Online OSP
Registration system for the existing OSP Registrations. In case you have existing
registered OSP sites for which you would like to get the new Registration Number
from the system please contact Assistant Director General (ADG) of the concerned
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Telecom Enforcement, Resource and Monitoring Cell (TERM Cell) [3] preferably
before applying for the login-id from the system.
Terms and conditions of the OSP registration are available on the DOT website
Leading BPO-ITes cities in India
Bangalore, Chennai, Hyderabad, Gurgaon, NCR, Mumbai and Pune are Tier I cities
that are leading IT cities in India.
With rising infrastructure costs in these cities, many BPO's are shifting operations
to
Tier
II
cities
like Kolkata, Nashik, Sangli, Aurangabad (Maharashtra), Mangalore, Mysore, HubliDharwad, Belgaum, Coimbatore, Nagpur, Trichy, Kochi, Trivandrum, Chandigarh,Mo
hali, Panchkula, Ahmedabad, Bhubaneshwar, Jaipur, Visakhapatnam, Raipur and L
ucknow
Tier II cities offer lower business process overhead compared to Tier I cities, but
have a less reliable infrastructure system which may hamper dedicated
operations. The Government of India in partnership with private infrastructure
corporations is working on bringing all around development and providing robust
infrastructure all over the nation.
Criticisms
The BPO industry in India faces two key criticisms
The first criticism concerns the damaging psychological effects on Indian callcentre employees who are expected to ape the Western employees they have
replaced in terms of accents, slang and even names.[6]
The second criticism focuses on the wider ramifications of the industry's political
influence. It has been claimed that this influence, which far exceeds the industry's
economic contribution, has allowed the industry to secure the support and
resources of the Indian state ahead of other sectors of the national economy
where the developmental returns would be far greater.
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Call centre
For the contact centres in family law, see children's centre.
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irrelevant options for people calling in. For outbound calls, lead selection allows
management to designate what type of leads go to which agent based on factors
including skill, socioeconomic factors and past performance and percentage
likelihood of closing a sale per lead.
The universal queue standardizes the processing of communications across
multiple technologies such as fax, phone, and email. The virtual queue provides
callers with an alternative to waiting on hold when no agents are available to
handle inbound call demand.
A typical call centre telephone. Note: no handset, phone is for headset use only
(2005)
Premises-based technology
Historically, call centres have been built on Private branch exchange (PBX)
equipment that is owned, hosted, and maintained by the call centre operator
themselves. The PBX can provide functions such as automatic call
distribution, interactive voice response, and skills-based routing.
Virtual call centre
In virtual call centre model, the call centre's operator pays a monthly or annual fee
to a vendor that hosts the call centre telephony equipment in their own data
centre. In this model, the operator does not own, operate or host the equipment
that the call centre runs on. Agents connect to the vendor's equipment through
traditional PSTN telephone lines, or over voice over IP. Calls to and from prospects
or contacts originate from or terminate at the vendor's data centre, rather than at
the call centre operator's premises. The vendor's telephony equipment then
connects the calls to the call centre operator's agents.
Virtual call centre technology allows people to work from home, instead of in a
traditional, centralised, call centre location, which increasingly allows people with
physical or other disabilities that prevent them from leaving the house, to work.
The only thing that is mandatory is to have an Internet access and a workstation.
Cloud computing
Cloud computing for call centres extends cloud computing to software as a
service, or hosted, on-demand call centres by providing application programming
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interfaces (APIs) on the call centre cloud computing platform that allow call centre
functionality to be integrated with cloud-based customer relationship
management, leads management, and other applications. Computer telephony
integration APIs provide developers with access to basic telephony controls and
sophisticated call handling on the call centre platform from a separate application.
Configuration APIs provide programmatic control of administrative functions of the
call centre platform which are typically accessed by a human administrator
through a graphical user interface.
Description
Services
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Call centre worker confined to a small workstation/booth, using CallWebInternetbased survey software
A contact centre supports interaction with customers over a variety of media,
including telephony, e-mail, and internet chat. A telephone answering service is a
more personalised version of the call centre, where agents get to know more
about their customers and their callers; and therefore look after calls just as if
based in their customers' office.
Calls may be inbound or outbound. Inbound calls are made by consumers, for
example to obtain information, report a malfunction, or ask for help. In contrast,
outbound calls are made by agents to consumers, usually for sales purposes
(telemarketing). A "blended" center combines both inbound and outbound
campaigns where each type of agent (inbound or outbound) can handle the
overflow of the other.
Call centre staff are often organised into a multi-tier support system for more
efficient handling of calls. The first tier consists of operators, who initially answer
calls and provide general information. If a caller requires more assistance, the call
is forwarded to the second tier (in the appropriate department depending on the
nature of the call). In some cases, there are three or more tiers of support staff.
Typically the third tier of support is formed of product engineers/developers or
highly skilled technical support staff for the product.
Outsourcing
In contrast to in house management, outsourced bureau contact centres are a
model of contact centre that provide services on a "pay per use" model. The
overheads of the contact centre are shared by many clients, thereby supporting a
very cost effective model, especially for low volumes of calls. Outsourced centers
have grown in popularity. There is criticism of the outsourcing model.
Companies that regularly utilise outsourced contact centre services include British
Sky Broadcasting and Orange in the telecommunications industry, Adidas in the
sports and leisure sector, Audi in car manufacturing[14]and charities such as
the RSPCA.
Outsourced call centers are often located in the developing countries, where
wages are significantly lower. The call center industry in the Philippines and call
center industry in the Bangladesh serve as good examples.
Call Centers in Healthcare
The healthcare industry has used outbound call center programs for years to help
manage billing, collections, and patient communication. [15] The inbound call center
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is a new and increasingly popular service for many types of healthcare facilities,
including large hospitals. Inbound call centers can be outsourced or managed inhouse. MountainStar Healthcare is one of the first companies to build an inbound
call center in-house. American Health Connection is an American healthcare call
center corporation with a focus on inbound call centers that utilize outsourcing.
These healthcare call centers are designed to help streamline communications,
enhance patient retention and satisfaction, reduce expenses and improve
operational efficiencies.
Evaluation
Mathematical theor
Queueing theory is a branch of mathematics in which models of service systems
have been developed. A call centre can be seen as a queueing network and
results from queueing theory such as the probability an arriving customer needs to
wait before starting service useful for provisioning capacity.(Erlang's C formula is
such a result for an M/M/c queue and approximations exist for an M/G/k queue.)
Statistical analysis of call centre data has suggested arrivals are governed by
an inhomogeneous Poisson process and jobs have a log-normal service time
distribution.
Call centre operations have been supported by mathematical models beyond
queueing, with operations research, which considers a wide range of optimisation
problems seeking to reduce waiting times while keeping server utilisation and
therefore efficiency high.
Metrics
Some vital call centre performance metrics
Average Handling time: a key measure for any contact center planning
system, as it tells you how long a new item of work takes to be handled and
not just the talk time.
Revenue Per Call: usually used in sales projects which calculates the effort
of a representative with respect to increasing sales. RPC can be calculated by
dividing the total amount of sale by total number of calls.
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First Call Resolution: properly addressing the customers need the first time
they call, thereby eliminating the need for the customer to follow up with a
second call.
Net Promoter Score: measures the loyalty that exists between a provider
and a consumer. NPS is based on a direct question: How likely is it that you
would recommend our company/product/service to a friend or colleague? The
scoring for this answer is most often based on a 0 to 10 scale.
Quality Scores: by far the most common metric used. It provides the ability
to look at the overall caller experience and the conversations that agents are
using on their phone calls.
Active & Waiting Calls: measures current volume of active calls compared to
the number of callers waiting to be patched through to an agent. This is a realtime status metric that should be shared with all the agents to offer them
insight on their performance. Agents should be encouraged to resolve calls on
a timely basis in order to get to the next caller in queue and not keep the
callers on wait.
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Staff Shrinkage: the percentage of time that employees are not available to
handle calls. It is classified as non-productive time, and is made up of meeting
and training time, breaks, paid time off, off-phone work, and general
unexplained time where agents are not available to handle customer
interactions.
Cost Per Call: A major factor determining revenue is the cost of running the
organization. A common measure of operational efficiency is cost incurred for
each minute of handling the call workload, commonly referred to as Cost per
Call. This cost per call can be simply a labor cost per call, or it can be a fully
loaded rate that includes payroll in addition to telecommunications, facilities,
and other services costs.
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Ignoring or delaying the calls from the more difficult customers (call
screening)
Restrictive working practices (some operators are required to follow a prewritten script)
Poor working conditions (e.g. poor facilities, poor maintenance and cleaning,
cramped working conditions, management interference, lack of privacy and
noisy)
Lack of support for employees with impaired vision and hearing problems
The net-net of these concerns is that call centres as a business process exhibit
levels of variability. The experience a customer gets and the results a company
achieves on a given call are almost totally dependent on the quality of the agent
answering that call.Call centres are beginning to address this by using agentassisted automation to standardise the process all agents use. Anton and Phelps
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Interviewers,
Data
Entry
Representatives
and
experienced
Our staff consists mainly of college graduates from the local university. The
average resource is a median age of 26, bilingual, and has a college degree. BPO
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>>> Collections
>>> Data Management
with
customer
through
help
of
recorded
voice.
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The proposed Center comes under Service Sector for which Registration has been
obtained.
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Phase
II,
Near
Bharat
Gas,
VUDA
Colony,
Madhavadhara,
TECHINCAL KNOW-HOW
INFRASTRUCTURE
TECHNOLOGY
Evetrix Technologies leverages proven technologies to offer advantages not
commonly found in the customer contact outsourcing industry. This has undergone
many changes, specifically in the shift from analog voice to integrated IP Contact
Center technologies, from a single contact channel (voice) to multi-channels
(voice, Email, web chat, web collaboration, web call back, VOIP, fax, video, etc).
Evetrix Technologies invests on an ongoing basis in solutions and platforms that
bring tangible value to our clients and employees.
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PEOPLE
People are the cornerstone of the outsourcing industry. Attracting and retaining
highly motivated personnel is a critical success factor. Evetrix Technologies
personnel are equipped with the best tools to make them successful in their job.
They are educated and trained on an ongoing basis on all the key aspects of their
job. We link pay to performance. We allow and encourage employees to rotate
between different client programs, and we encourage them to grow in the
organization by taking up more responsibilities. This results in lower attrition rates,
resulting in higher customer satisfaction and lower cost for our clients. Our hiring
criteria are selective, because we know that the best people deliver the best
results.
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CAREERS
Career is the foundation pillar of a person's future. Striking the right note at the
right time is advisable. ITES Match Online is specially designed for IT Enabled
services. We help bridging the gaps between the "Outsourcing Clients" and the
"ITES Companies". Not limiting our services to a particular part, we cater to clients
nationally, internationally and globally. After tremendous success in the ITES field,
we are planning to venture into yet another arena wherein we can be a medium in
building strong careers
Our dynamic growth is chiefly based on our pre-planned goal and a vision to
accomplish our dreams. With a dedicated team who will leave no tables unturned
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in helping you accomplish your dream job. Choosing ITES Match Online for your
job requirements will prove to be highly fruitful with a promising career ahead. The
job you are looking out for can range anywhere between.
>>> Call Center Employee
>>> Data Entry Operators
The
proposed
location
of
the
Company
is
situated
at
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MARKET STUDY
The BPO Industry in India
In India, Business Process Outsourcing (BPO) is the fastest growing segment of the
ITES (Information Technology Enabled Services) industry. Factors such as economy
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processing, data
processing, forms
2.
Technical
support
services: Installation,
product
support,
running
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4.
5.
6.
Data entry and data processing: Data entry from paper, books, images,
e-books, yellow pages, web sites, business cards, printed documents, software
applications, receipts, bills, catalogs and mailing lists.
7.
Data
conversion
services: Data
conversion
for
databases,
word
9.
Form
processing
services: Online
form
processing, payroll
The BPO sector in India is estimated to have reached a 54 per cent growth in
revenue
The demand for Indian BPO services has been growing at an annual growth
rate of 50%
The BPO industry in India has provided jobs for over 74,400 Indians. This
number is continuing to grow on a yearly basis. The Indian BPO sector is soon to
employ over 1.1 million Indians
70% of India's BPO industry's revenue is from contact centers, 20% from
data entry work and the remaining 10% from information technology related
work
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WNS Group
Wipro Spectramind
Daksh e-Services
Convergys
HCL Technologiess
Zenta
First Source
MphasiS
EXL
Tracmail
GTL Ltd
vCustomer
HTMT
24/7 Customer
Sutherland Technologies
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As Per Report By NASSCOM, Indian IT and ITeS industry is likely to grow to about
$300 billion by 2020 in sectors like e-commerce, software product and the IT
market. Alongside bottomless development opportunities, IT sector is one of the
highest paying sector in India.
More than 50% population of India is below the age of 25. the number of high
salaried and Skilled professional is going to be more than the present. over 33,023
colleges and nearly 634 universities Producing more than 1.76 million (1761976)
engineering seats across India, which is more than the US and China combined.
India produces 1.76 Million Pass Outs Engineers Every Year. India is the second
largest English-speaking country in the world
Growth Factor of Indian IT and ITeS industry
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Demand in IT and ITeS (BPO) industry in India is driven by the needs of the
entrepreneurs, businesses, non-profit institutions, and government organizations
for outside advice and services.
Demand for IT services in India is driven by rapid technological
advancements and Increasing number of skilled professionals in IT
Industry. Depending on technical expertise, innovative services, and effective
marketing, IT Companies are making very good profit In India. The Success of
Individual companies depends on their ability to maintain a steady flow & the
efficiency of their operations of the business. Large firms have advantages in
being able to offer broad ranges of services and to take on more complex projects.
Large companies have global advantage and they provide outsourcing
services to big corporate customers. Small companies compete effectively by
offering specialized IT services in market niches. Small Companies and Startups
are partnering with larger companies located in India and western countries like
USA, UK and Australia that want to broaden their mix of services
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PROJECT DETAILS:
a. PROJECT COST & MEANS OF FINANCE
PROJECT COST
Land
Buildings
Equipments
Working capital Margin
AMOUN
T
Lease
Lease
30.00
5.00
MEANS
FINANCE
Capital
Total
35.00
OF AMOUN
T
12.50
Term Loan
22.50
TOTA 35.00
Promoters Contribution
: 27.77%
Debt/Equity
: 2.33 : 1
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working capital for sanction of working capital loan of Rs: 10.00 lacs.
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No.
of Functional Area
employee
s
Key
managerial 4
Finance,
Marketing,
staff
Quality control
Administration
1
Office work
Skilled and semi 30
BPO Executives
skilled
Total
35
Production,
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good team of work force. The company will provide all basic amenities to staff
such as Medical Health, children education, transport, canteen facility, transport,
clothing, financial assistance, family welfare etc.
The company will organize training classes for all the staff in the areas of Process
up gradation, Quality control, cost reduction techniques, safety etc.
SWOT ANALYSIS
Strengths
Abundant manpower
Operational excellence
Weaknesses
Recent months have seen a rise in the level of attrition rates among ITES
workers who are quitting their jobs to pursue higher studies. Of late workers
have shown a tendency not to pursue ITES as a full-time career.
The cost of telecom and network infrastructure is much higher in India than
in the US.
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Manpower shortage
Local infrastructure
To work closely with associations like Nasscom to portray India as the most
favoured ITES destination in the world.
Indian ITES companies should work closely with Western governments and
assuage their concerns and issues.
Threats
Other ITES destinations such as China, Philippines and South Africa could
have an edge on the cost factor.
Slowdown of demand
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ASSUMPTIONS
Assumptions
underlying
for
preparation
of
Fi n a n c i a l
Statements:
Process:
Current Process
N o o f Wo r k i n g d a y s
: S e m i Vo i c e P r o c e s s ( N i g h t S h i f t )
: 365 days
Operating Billing:
2016-17:
Fo r S e m i Vo i c e P r o c e s s :
Hourly Billing: Rs. 500/We e k l y B i l l i n g : R s . 2 8 , 0 0 0 / Monthly Billing: Rs. 28000*30 = Rs. 8,40,000.00
No. of months: 12 = 840,000x12 = Rs. 100,80,000.00
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P o w e r & Fu e l :
In 2016-17:
Po w e r a n d Fu e l i s e s t i m a t e d a s
1 0 x 2 4 x 3 6 5 x . 7 4 6 x . 8 0 x . 6 0 x 6 . 5 0 = 2 , 0 3 , 8 9 0 . 7 5 2 Pe r a n n u m
Wa g e s :
In 2016-17:
Wa g e s a r e c a l c u l a t e d a s u n d e r
Executives
90
Nos.
Rs.
10,000/-
Pe r
Month
Rs.
15,000/-
Pe r
Month
=9,00,000
A d m i n S t a ff
Nos
=120,000
W a t c h & Wa r d
2 Nos
x R s . 5 , 0 0 0 / - Pe r M o n t h
10,000
__________
355,000 * 12
=
42,60,000.00
42.60 lacs
or
say
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Administrative Expenses:
In 2016-17:
Internet Charges: Rs. 60,000/ month i.e. Rs. 7,20,000.00
O ffi c e R e n t
30,000.00
Cost of Sales:
Yearly Billing: 2016-17
Semi Voice Process = Rs. 1 0 0 , 8 0 , 0 0 0 .00
Expenses (Deposit Amount + Power=
76,90,000.00
+ Wages + Admin. Expenses)
TOTAL
Rs.
Rs. 23,90,000.00