 ITES, is defined as outsourcing of processes that can

be enabled with information technology and covers

diverse areas like finance, HR, administration,
health care, telecommunication, manufacturing etc.
 Armed with technology and manpower, these
services are provided from e-enabled locations.
 Radically reduces costs and improve service
standards.
 In short, Internet service provider aims in providing
B2B e-commerce solutions.
 The growth of IT enabled Services (ITES)
has opened windows for job opportunities,
service offerings and foreign investments in
India.
 Nasscom says that India is well positioned
to derive benefits from the ITES market and
become a key hub for these services.

The National Association of Software and Services Companies (NASSCOM)

is a trade association of Indian information Technology (IT) and Business
Process Outsourcing (BPO) industry. Established in 1988, NASSCOM is a non-
profit organization.
 Information Technology Enabled Services aims to provide a
wide range of CRM services on a global basis using state-of-
the-art communication, infrastructure and information
technology tools.

Customer Technical Outbound

Support Sales
Service

Surveys & Ethnic-

Campaigns Marketing
Some of the services offered include :
 Document Processing
 Data Entry and Processing
 Data Warehousing
 IT Help Desk Services
 Application Development
 Medical Transcription
 Enterprise Resource Planning
 Telecommunication Services
 Legal Databases
 Medical Transcription
 Payroll
 Remote Maintenance
 Revenue Accounting
 Support Centers
 Web site services
 Qualifiedmanpower
 Quality manpower
 Trained manpower
 Man power retention- biggest challenge
 Voice based outbound caliber required soft skills
 Required volumes to cater college focus on soft
skills/ personality development
 Growing IT flavor among students
 No barriers of any technical (subject) skills
 No barrier of any prior experience
 Job immediately on completion of degree
 General soft skills is only the requisite
 General advantage of being in ITES job
including smart start up pay packs
 Allrounder development of personality
 Transformation from ability to speak in
English to Ability to think in English
 Good work culture, good climate
 Fast track movements in career ladder of
stay in ITES jobs
 Prospects of switching IT .
 Unlimited prospects of domain knowledge in
a variety of verticals
 Outsourcing is contracting with another company
or person to do a particular function.
 Almost every organization outsources in some
way.
 Typically, the function being outsourced is
considered non-core to the business.
 Information technology outsourcing (ITO)
 Business process outsourcing (BPO)

 Human resources outsourcing (HRO)

 Knowledge Process Outsourcing (KPO)

 If A Company is looking to expand, Outsourcing
is a cost-effective way to start building
foundations in other countries.
 Outsourcing allows companies to focus on other
business issues.
 Outsourcing allows companies to reduce their
turn around times (Time it takes to get a job
done and deliver the output), by taking
advantage of the time difference between
countries. Thus, allowing firms to reduce time
to market new products and improvements,
beating rivals who do not use outsource.
 Saving Labor Costs are perhaps the one of the most
important reasons why companies opt to outsource some
of their activities. The cost of labor in some developed
countries is extremely expensive thus, creating a large
expenses for employers. If the same jobs were done by
persons of the same qualifications at a far lower price
then it would definitely be advantageous.
 Firms around the world are desperately trying to make
use if their in house talent pool. Expertise and
experience are in short supply, but in high demand and
are quite expensive .
 Outsourcing helps dissolve the dilemma and frees large
pool of in house resources for other work.
 Organizationally - Focus, flexible, transformation,
customer service

 Improvement - Performance, manage & control,

risk manage, new ideas, image

 Financially - Reduce investment, generate cash

 Revenue - Gain market access, expand

 Cost - Reduce cost, from fixed to variable cost

 Employee – Incentive, motivate

 Business process outsourcing (BPO) is the contracting
of a specific business task, such as human resources
and customer service, to a third-party service
provider.
 This allows companies to focus on their core business
processes.
 BPO is implemented as a cost-saving measure for
tasks that a company requires.
It is often divided into two categories:
 Back Office Outsourcing which includes internal
business functions such as billing or purchasing.
 Front Office Outsourcing which includes

customer-related services such as marketing or

tech support.
 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.
 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
 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
 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 incorporate your core competencies
 Processes that require access to intellectual
property of your company.
 Non-labor intensive tasks( Managerial Task)
 Processes that are associated with the image of
your company.
 English Language Proficiency
 Skilled Workforce
 Lower Wages
 Flexibility in Working Hours
 Suitable Human Resources
 Large Number of Graduates
 Poor Infrastructure
 Cultural Differences
 Internal competition for resources
 Rising labor costs / Human Rightes
 Political and religious instability
Knowledge Process Outsourcing
KPO
KPO is high end work attracting knowledge and
skill sets to involve processes that demand
advanced information search, analytical,
interpretation and technical skills as well as some
sense of judgment and decision making.

In simpler terms, it is the transformation of large

chunks of data into useful information that may be
used in decision making. Since, knowledge is the
most important factor and the end result is based
on judgment there may not be a pre-defined
process to reach a conclusion.
 Intellectual Property or patent research,
 R&D in Pharmaceuticals and biotechnology
 Data mining, database creation,
 Analytical services such as
 Equity research,

 Competitive intelligence,

 Industry reports and financial modeling

In order to provide high end knowledge services, KPO
service providers would require to staff professionally
qualified and experienced employees like engineers,
Chartered Accountants, Doctors, Advocates,
Statisticians (Phd's and Masters) and Management
Graduates.

The focus will be on aptitude, analytics, and super

specialization and out of the box thinking rather than
a mere degree.
 Brand India
 English Language Proficiency
 Great History in Software Development
 Government Support and Policies
 Cost Advantage
 Process and Quality Focus
 Large pool of Knowledge Workers
 Expansion of Existing Relationships
 Indian Market Growth
 Strong Education
 Reverse Brain Drain - helped in bringing world
class processes to India
1. Genpact
2. Evalueserve
3. Ugam Solutions
4. WNS
5. 24/7 Customer
6. ICICI OneSource
7. EXL Service
8. Copal Partners
9. Pangea3
10. TechBooks
 1. Genpact: Formerly GECIS, Genpact had revenues of US$ 493 million in 2005. The
relatively small KPO unit is a complementary arm to its main BPO business.
Genpact’s KPO specializes in competitive intelligence, campaign management,
program tracking, customer relationship management, customer value mapping,
research, database generation, and others. The KPO has staff strength of 1200
people, of which more than 90% has advanced degrees.
 2. Evalueserve: Based in Gurgaon, it has 650 people engaged in market research
and business intelligence. Nearly 45% of the company’s revenues come from math
related projects. Evalueserve has a research firm called Global Sourcing Now, which
specialises in high-quality research reports.
 3. Ugam Solutions: Ugam Solutions entered the area of market research analytics in
2001, much before the term KPO was coined. Their business involves the study of
consumer minds, their behaviour and habits, for evolving a basis for business
development initiatives of global companies. It has now grown to a 400-member
organization.
 4. WNS: A Mumbai-based BPO, WNS has just started its KPO division for market
research with 300 people. It operates in the knowledge services business segment
and offers high-end services such as market, investment and business research.
 5. 24/7 Customer: This BPO was listed in the Leaders category of IAOP’s
(International Association of Outsourcing Professionals) Global 100 list. Its KPO
focuses on customer analytics, where it studies consumer behaviour and analyses
data pertaining to related activities such as campaigns and marketing activities.
 6. ICICI OneSource: Acquiring a US-based research firm, Pipal in 2004, ICICI
OneSource offers high-end customised business research and collections, analytics
and information services. It had revenues of US$ 42 million in 2003-04.
 7. EXL Service: This BPO acquired Inductis, a leading strategy and analytics
company serving the financial services and insurance industries, in June 2006 to
form an independent subsidiary. Inductis had revenues of US$ 20 million in 2005.
The new entity will focus on consulting, research and analytics.
 8. Copal Partners: Founded in 2001, Copal Partners provides company and sector
research to its clients, which include Wall Street investment banks, hedge funds,
private equity firms and private and public corporations. It was formed by
professionals from McKinsey & Co., Citigroup, and GE Capital. In 2005, it entered
into an agreement with Reuters to provide financial institutions with customized
company research and sector analysis. With revenues of US$ 6 million, it plans to
expand to 400 employees by the end of 2006.
 9. Pangea3: Based in Mumbai, Pangea3 provides services areas such as patent
research, analysis and prosecution support; document review, litigation and due
diligence; contract drafting management and administration; legal research and
business information research. With an employee strength of 100, its revenues are
expected to be US$ 2.5 million this year.
 10. TechBooks: This is a leading KPO in publishing and services publishing houses
such as Cambridge University Press, Blackwell, Hall, Pearson and Tata Mc-Graw Hill
in providing electronic content services and solutions. It plans to get into e-learning
services with broad application in the corporate, government and education
markets.