BUSINESS PROCESS

OUTSOURCING

P resented by:

Dhananjay kumar

Jaipuria institute of management,

Noida
 INTRODUCTION

• Business process outsourcing (BPO) is

the process of delegating one or more

business processes to an external partner

,who in turn owns, manages and

administers the selected process based

predetermined and measurable

parameters.
 OUTSOURCING

– Why do companies
outsource?

– Moving from
outsourcing non-
core activities to
outsourcing core
activities as well…
 Key Terms

Offshore Outsourcing:- BPO that is

contracted outside a company's own country.

Nearshore Outsourcing:- BPO that is

contracted to a company's neighboring

country.

Onshore Outsourcing:- BPO that is

contracted with the company's own country.

 Challenges Ahead…

• Client Acquisition and Retention

• Retaining employees

• Productivity

• Quality issues

• Resource and Skill Gaps

• Emerging Foreign Destinations

• Physical Infrastructure
 MAJOR PLAYERS

• Genpact

• Reliance BPO

• Wipro BPO

• HCL Technologies BPO Services

• ICICI OneSource

• IBM Daksh

• Progeon (Infosys)

• Aegis BPO Services

• EXL Service Holdings

• 24/7 Customer
STRENGTHS

Highly skilled ,English speaking workforce.

Abundant Manpower.

Cheaper workforce than their western

counterparts.

Flexibility in working Hours.

Scope for large number of Graduates.

Operational Excellence.
 WEAKNESS

Poor Infrastructure

Cultural Differences

Internal competition for resources

Rising labor costs

Political and religious instability

Rise in Attrition rate among workers.

 OPPORTUNITIES

To work closely with associations like Nasscom to

portray India as the most favoured ITES destination in

the world.

India can be branded as a quality ITES destination

rather than a low-cost destination .

Indian ITES companies should work closely with

Western governments.
 THREATS

Anti - outsourcing legislation by US states.

Protest by British Telecom workers against outsourcing

to Indian BPO companies.

Other ITES destinations could have an edge on the cost

factor.

Slow down of demand.

Where are the BPO’s
 PRESENT &
FUTURE

• The report by Avendus has following Key

findings:

b. Indian BPO industry was USD 1.8 bn in FY 2008 and will

grow at CAGR of 35% for next 4 years and become a

USD 6 bn industry in 2010.

c. Customer care and sales and marketing are the two

largest business segments and accounts for 78% of total

market in FY 2008.

d. Banking, Insurance and telecom account for 68%

e. Retail, media and entertainment are emerging areas.

 BPO REVENUE’S

REVENUE 2003-04 2004-05 2005-06 2006-07 2007-08

PER YEAR

DOMESTIC 0.3 0.6 0.9 1.1 1.6

BPO

OVERALL 3.4 5.2 7.2 9.5 12.5

BPO
REVENUE

FIG. IN BILLION SOURCE: NASSCOM

DOLLARS
INDIA AHEAD OF
ALL
 ADVANTAGE
INDIA

Highly skilled, English-speaking workforce.

Cheaper workforce than their Western counterparts.

According to Nasscom, The wage difference is as high as

70-80 percent when compared to their Western

counterparts.

The cost of telecom and network infrastructure getting

equivalent to rest of the world.

Dedicated workforce aiming at making a long-term career

in the field.
 ADVANTAGE
INDIA

Round-the-clock advantage for Western

companies due to the huge time

difference.

Efficient and effective service.

Developed legal system.

 India – Land of Opportunities

Fourth largest
Economy - A Largest
safe place
to do business democracy –
political
stability &
consensus on
reforms
Favorite Market
Largest
reservoir of
skilled/semi-
skilled
manpower Liberal &
transparent
investment
Long-term policies
sustainable
Competitive
advantage
 BUSINESS IDEA

BPO SERVICES IN
THE

BANKING SECTOR
 BUSINESS IDEA

•
Banks and financial institutions are the life line of

any economy. Today the customer base of banks

have increased manifolds. Lakhs of customer deal

with them.

• The customers face a lot of problems and

inconvenience while dealing with the banks

everyday.

• So we thought of capturing this untapped market

for our business

 BUSINESS IDEA

• The target market basically will be all the

nationalized banks and other private

banks

• Common services to various banks.

• More choice to customer for their banking

and investment needs.

• For Banks compounded cost will be less.

• Automated machines will be used to

ensure unbiased service.

 Services Offered

– Clarifying Doubts

– Information regarding loan Formalities

– Information about new products of various banks

– Providing information regarding ATM’s etc.

– Information regarding opening of accounts

– Information regarding status of accounts

– Information regarding due or to be due installments

– Advertising on behalf of the bank.

 BENEFITS TO
CUSTOMERS

• Information related to all the banks

available under one roof.

• Increased competition among banks will

lead to improved service.

• Saving valuable time.

• Satisfaction.