BySaurabh Singh

Outsourcing
Outsourcingis the process ofcontractinga business function to someone else commonly one previously performed in-house - to an external provider.

Reasons
Cost Savings Focus on Core Business Improve Quality Operational Expertise Knowledge

BPO

A Business Process Outsourcing (BPO) organization is responsible for performing a process or a part of a process of another business organization; outsourcing is done to save on costs or gain in productivity.

Call Center

A call centre performs that part of a client's business which involves handling telephone calls. A call centre, for example, might handle customer complaints coming in over a telephone.

Services

Different Types of Services Customer Support Services (voice, e-mail and chat on a Being Offered By BPO's 24/7 and 365 days basis.)
Technical Support Services Telemarketing Services Insurance Processing Data Entry Services / Data Processing Services Data Conversion Services Book Keeping and Accounting Services Internet / Online / Web Research (Internet Search, Product Research, Market Research, Survey, Analysis.)

Key Terms:

Offshore Outsourcing is BPO that is contracted outside a company's own country.

Nearshore Outsourcing is BPO that is contracted to a company's neighboring country. Onshore Outsourcing is BPO that is contracted with the company's own country.

Size of the BPO Industry

World BPO sizeis worth $170-$185 billion. India has total revenue of $52 billion In the year 2011 it is expected to grow at the rate of 32% where as the rest of the world is growing at 28% only. India has revenues of $15.7 billion from offshore (which is 7-8% oftotal BPO industry) Has a commanding 63% 0f total offshore

Why BPO
Cost effectiveness(Economies) BetterQualityatlowercost Concentration on CORE BUSINESS Securing Data is less complicated

Why Not BPO

Possibility of security breach Expensive specialist skill in host countries High unit personnel cost Unavailability of skilled manpower due to market stagnation

Why People Join BPO

Did not get a better job. Find nothing better to do. Education level doesn't matter Good work environment Good Benefits Flexibility of time Attractive life style Transport facility

Why People Leave BPO

No growth opportunity/lack of promotion For higher Salary For Higher education Misguidance by the company Policies and procedures are not conducive No personal life Physical strains Uneasy relationship with peers or managers

Business Process WNS Group Outsourcing: The Top Wipro Spectramind Daksh e-Services Rankers
1) 2) 3) 4)

Convergys HCL Technologies Zenta ICICI OneSource MphasiS EXL Tracmail

5)

6)

7)

8)

9)

10)

*The basis of ranking is the revenues generated by the BPO companies in 2003-04, as per US GAAP, according to a survey done byNASSCOM.

Capabilities: Why go to India?

Language Major attraction for Multinationals Advantage over competitors Educated Employees Large number of qualified workers Proven to be the best in the IT and computer software fields Strong technical skills Eagerness to engage clients Produce around 100,000 engineers annually

Capabilities: Why go to India?

Infrastructure Improvements have led to increasing success

Telecom facilities Power sector India as a whole

Government Realize potential for economic development Favorable policies have turned India into a BPO/IT hub.

Examples: Investment promotion, telecom policy, IT Act

Salaries: India Vs USA

Designations CCRs Team leaders Training heads Training mgrs Trainers USA 70-80000 pm 1-1.2 lacs pm. 4-5 lacs pm. 3-4 lacs pm. 1-2 lacs pm. INDIA 8000-15000pm. 17000-26000pm. 8-12 lacs PA. 5-8 lacsPA. 2-5 lacsPA.

Rules to Follow: What to Outsource

Processes that do not add value to a product or service. Highly repeated tasks with little variation. Labor intensive tasks that do not require a companies intellectual property nor core competencies. Processes that will tie up large amounts of capital in assets.

Rules to Follow: What Not to Outsource

Processes that incorporate your core competencies. Processes that require access to intellectual property of your company. Non-labor intensive tasks. Processes that are associated with the image of your company

Rules to Follow: BPO Guidelines

There are many BPO providers, so research to find the one that best suits your needs. Using one provider for multiple tasks will help streamline your BPO. Have some measure to check and control the output of your BPO. Communicate with your BPO.

KPO
Knowledge process outsourcing(KPO) is a form ofoutsourcing, in which knowledgerelated and information-related work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost.

KPO
Knowledge Processing Outsourcing (popularly known as a KPO), calls for the application of specialized domain pertinent knowledge of a high level. The KPO typically involves a component of Business Processing Outsourcing (BPO), Research Process Outsourcing (RPO) and Analysis Proves Outsourcing (APO). KPO business entities provide typical domain-based processes, advanced analytical skills and business expertise, rather than just process expertise. KPO Industry is handling more amount of high skilled work other than the BPO Industry. While KPO derives its strength from the depth of knowledge, experience and judgment factor; BPO in contrast is more about size, volume and efficiency.

Areas associated with the KPO sector

Research & Development Financial Consultancy and Services Advanced Web Applications Business and Technical Analysis Learning Solutions Animation & Design Business & Market Research Pharmaceuticals and Biotechnology Medical Services Writing & Content Development

Areas associated with the KPO sector

Legal Services Intellectual Property (IP) Research Data Analytics Network Management Training & Consultancy

Benefits of KPO
Valuable cost savings that can be utilized elsewhere. Trained professionals at work. Standard operational efficiency. Increase in profits. Savings in time and management energy for maintaining in house services. Option to recruit a larger work force without raising costs.

What KPO can deliver to you?

Good quality work. Lower costs. On time delivery of services. Uninterrupted services. Adaptability to changes in required quality

Scope of KPO
Evalueserve says India provided $3.5 billion of BPO and KPO (but non-IT) services in 2003 and is expected to grow at a CAGR of 36 per cent during 2004 to 2010. Hence, it is likely to earn $30 billion in 2010 by providing these services According to a report of National Association of Software and Services Companies (NASSCOM), the Indian chamber of commerce that serves as an interface to the Indian Software industry, Knowledge Process Outsourcing industry (KPO) is expected to reach USD 17 billion by 2010

Why India To Be preferred to other* countries

*(Philippines, Russia, China, Canada, Ireland and Mexico) Labor Pool Cost Government Polices Infrastructure Knowledge full / Expertise

The Top Ten KPO Companies in Genpact India

1) 2)

Evalueserve Ugam Solutions WNS 24/7 Customer ICICI OneSource EXL Service Copal Partners Pangea3 TechBooks

3)

4)

5)

6)

7)

8)

9)

10)

Conclusion
BPO & KPO is growing with a fast pace globally in which India pace globally in which India leading ahead because of its skilled & cheaper work force. It has provided the world a shoulderto support employment. BPO upholds companies to zero in on core business. Due to some security reasons it should be e executedcautiously.

References

http://www.chillibreeze.com/articles/top-KPO-companies. http://www.kpoexperts.com/kpo-india/what-is-kpo.htm http://en.wikipedia.org/wiki/ http://www.bpoindia.org/research/bpo-in-india.html

http://www.kpoexperts.com/why-india/why-choose-india.

http://www.kpoexperts.com/scope-future-of-kpo/scope-fu

Thank you