Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Submitted by
Vivek Saha
Roll no. :
Registration No.:
Supervised By
February, 2013
Still, India is shining in the BPO landscape and is the most attractive destination.
Sr.No.
TITLE
Pg. No.
1.
Introduction
. Definition
. Objectives
(7-8)
7
8
2.
Evolution
(9-10)
3.
(11-16)
4.
Segments In BPO
. Voice & Non-Voice
. Horizontal & Vertical
Steps Followed While Outsourcing.
(16-22)
18-21
21-22
(22-23)
(24-25)
24
25
(25-28)
(29-31)
30-31
31
(32-36)
(36-39)
36-37
37
38-39
(39-40)
Bibliography
41
Annexure-1
42
Annexure-2
43
5.
6.
7.
8.
9.
10.
11.
Sr.No
Pg. No.
FIGURES
1.
Definition Of BPO.
7.
2.
9.
3.
10.
4.
11.
5.
12.
6.
13.
7.
14.
8.
15.
9.
16.
10.
17.
11.
21.
12.
22.
13.
23.
14.
26.
15.
32.
16.
SWOT Analysis.
36.
Sr.No.
Pg. No.0.
TABLES
1.
11.
2.
12.
3.
13.
4.
14.
5.
15.
6.
18.
1. INTRODUCTION TO BPO
DEFINITION OF BPO
OUTSOURCING: An organization entering into contract with another organization to operate and
manage one or more of its business processes
B A S E D O N V O IC E
B A S E D O N L O C A T IO N
BUSINESS PROCESS OUTSOURCING: It is the delegation of one or more of IT intensive business processes to an
external provider, which in turn owns, manages, and administers the selected
processes based on defined and measurable performance criteria.
BPO as per the work performed can be classified as VOICE BASED, which
includes customer related services such as technical support, marketing etc. and
NON-VOICE, which includes internal business operations. And as per the
location involved it can be classified as:
OBJECTIVES OF BPO:
Traditionally, the main objective of companies outsourcing their business
processes to India was the want of low cost. But now-a-days, companies that
offshore their business processes to India are no longer looking at cost reduction
alone. They typically want to achieve:
1) Process improvement and efficiency - faster turnaround and greater
productivity
2 )
C o s t
s a v i n g s .
8
DATA
ENTRY
MID
1990S
DATA
CONVERSI
ON
CALLCENTRE
LATE
1990S
TRANSCRIPT
IONPROCESSNON CORE
2000
TRANSCRIP
TIONPROCESSCORE
TODA
Y
11
The above figure clearly shows that exports in the BPO market are increasing at
the fluctuating rate. In 2003 it was USD 2.6 billion. Then it increased to USD 3.1
billion in 2004.And in the financial year 2008 it was USD 10.9 billion. It is
expected to reach at USD 12.8 billion by the end of 2009. Figure indicates that it
grows almost at the rate of 50% from 2003 to 2006. After that it grows almost at
the rate of 20%-30%.
12
The above figure shows the trend of growth in domestic revenues of Indian BPO
industry. It shows that onshore component is less than offshore component. In 2003
revenue of BPO from domestic industry was USD 0.2 Billion. It increased to USD 0.3
Billion in 2004. Then in 2008 it was USD1.6Billion and is expected to reach USD 1.9
Billion at the end of 2009. It is growing at a slow pace than export component of BPO
market.
13
So the greatest pool of graduates is moving towards the BPO industry thereby
decreasing the unemployment and developing the economy by utilizing the
available pool of talent.
15
16
4. SEGMENTS IN BPO
BPO in India is organized in many segments. Previously there was only low end
voice operations were outsourced to India. In the early days of BPO in India voice
operations were the major actors leaving a very small proportion for non-voice
activities. But, as India moves up in the value chain, non-voice operations starting
occupy a bigger proportion of the BPO pie. Except voice and non-voice, BPO in
India can also be segmented into horizontal and vertical.
So business process outsourcing can be segmented as:
1. VOICE AND NON-VOICE BPO.
2. HORIZONTALLY AND VERTICALLY BPO.
17
B
V
P
O
O
I
C
E
B
P
O
INBOUND SALES
ACCOUNTING
OUTBOUND SALES
DATA ENTRY
TELEMARKETING
DATABASE MANAGEMENT
CUSTOMER SERVICES
CLAIMS PROCUREMENT
ORDER PROCESSING
TRANSCRIPTION
TECHNICAL SUPPORT
HUMAN RESOURCES
APPOINTMENT SETTINGS
DEBT COLLECTION
HELP DESK
MARKET RESEARCH AND
FIGURE
10: CLASSIFICATION
OF VOICE AND NON-VOICE
QUALITY
SURVEYS
BPO
(A) VOICE BPO (FRONT OFFICE OPERATIONS)
18
1. INBOUND SALES:
2. OUTBOUND SALES
3. TELEMARKETING
4. CUSTOMER SERVICE
5. ORDER PROCESSING
19
6. TECHNICAL SUPPORT
7.
APPOINTMENT SETTING
8. DEBT COLLECTION
9. HELP DESK
20
2. DATA ENTRY.
Data entry services helps in getting large amounts of information added into databases
or specific applications, cost effectively.
3. DATABASE MANAGEMENT.
Every business has customer and contact databases to manage and keep up to date.
Database management service allows keeping database clean and up to date through a
program of contacting our customers to ensure you have the latest information.
4. CLAIMS PROCESSING.
Typically associated with the insurance industry, claims processing actually covers any
process that starts with a customer enquiry that requires investigation, analysis,
assessment, decision, and follow-up with a formal response.
5. TRANSCRIPTION.
Transcription is the process of converting the audio or visual information into
electronic document form.
Medical transcription was one of the first offshore BPO services to be launched from
India. This service involves the transcribing of medical records from audio format or
dictated by doctors or other healthcare into either a hard copy or electronic format.
6. HUMAN RESOURCE
Human resources are the manpower employed by the firm. It is the valuable asset of
the company. More and more businesses are outsourcing their human resource business
function or parts of that function to experts who do this service full-time. This ranges
from hiring processes to management of employee benefits process to payroll.
Businesses that find a high quality service provider outsource their HR activities and
can increase their employee satisfaction vis--vis reduce expenses.
Horizontal
BPO
BPO
Vertical
BPO
22
23
Security level
24
25
2. NON-BFSI COMPANIES.
From them, the finance function is important as it helps the rest of the organization
runs smoothly. So such a company will outsource functions likes sales orders
processing, accounts payable, receivable managements, balance-sheet management and
cash management. For instance, a US based industrial major currently evaluating
finance BPO companies in India has 850 employees looking at finance at a total annual
cost of $110 million. Global airlines also, under cost pressures, are looking India to
outsource revenue accounting and sales audit functions. These include British Airways,
Australian Airlines, Malaysian Airlines and Qatar Airways.
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1.
(AROUND 10%)
MIDDLE END
ACTIVITIES
2.
(AROUND 25%-33%)
3.
2. MIDDLE LEVEL:
The middle level which constitutes almost 25% to 35% of the work includes processes
like accounting operations, general ledger consolidation, reporting. It also includes
tasks such as income tax returns.
3. TOP-END ACTIVITIES:
The top end activities constitute only 10% of the work in the finance and accounting vertical.
At the top end of the scale are activities like administration of mortgage-backed securities,
financial planning and analysis, requiring expertise of at least MBA finance or a statistics
graduate. Other work in this category includes equity/debt market research and analysis.
27
There are many reasons which lure a business to outsource its finance and accounting
operations. These are:
The above table explains the major BPO players who are dealing in outsourcing finance
including other business process, and the number of people employed by them in finance
outsourcing.Table7. Major players in BPO finance
28
9.
IN
BPO
TRENDS
INDIAN
INDUSTRY
Trends imply
changes which
see in the near
BPO industry
or negative.
the various
we are going to
future in Indian
whether positive
Various
trends include:
1.
1. ABUNDANT TALENT.
Indias young demographic profile is an inherent advantage complemented by an academic
infrastructure that generates a large pool of English speaking talent. Talent suitability
concerns are being addressed through a combination of government, academia and industry
led initiatives. It includes efforts by NASSCOM and other education agencies like UGC and
AICTE to facilitate industry inputs on curriculum and teaching.
Indian authorities have built a strong foundation for an info-source environment in the
country. These include strengthening the regulatory framework through proposed
amendments to further strengthen the IT Act-2000.
5. OTHERS:
31
BASED ON REVENUE
BASED ON EMPLOYEE
SATISFACTION
1. GENPACT.
1. DAKSH-E-SERVICE
2. TCS BPO.
2. ISEVA
3. AEGIS BPO.
3. ICICI ONESOURCE
4. WIPRO BPO.
4. EFUNDS INTERNATIONAL
5. HINDUJA TMT
6. EXL SERVICES
7. INFOSYS BPO.
7. AJUBA
8. MOTIF
9. IBM DAKSH.
32
an independent company and was rebranded Genpact. It is India's No. 1 BPO firm.
33
2. WNS GLOBAL
3. IBM DAKSH
34
5. WIPRO BPO:
35
36
1. ISEVA.
3. EFUNDS INTERNATIONAL.
4. AJUBA.
5. MOTIF.
37
WEAKNESS
STRENGHT
THREATS
OPPORTUNITIES
1. STRENGTHS:
39
2. WEAKNESSES:
Recent months have seen a rise in the level of attrition rates among BPO workers who
are quitting their jobs to pursue higher studies. Of late workers have shown a tendency
not to pursue BPO as a full-time career.
The cost of telecom and network infrastructure is much higher in India than in the US.
Manpower shortage.
Local infrastructure.
3. OPPORTUNITIES:
To work closely with associations like Nasscom to portray India as the most favoured
BPO/ITES destination in the world.
Indian BPO/ITES companies should work closely with Western governments and
assuage their concerns and issues.
India can be branded as a quality BPO destination rather than a low-cost destination.
$60 billion BPO business by 2010.
4. THREATS:
The anti-outsourcing legislation in the US state of New Jersey. Three more states in the
United States are planning legislation against outsourcing. These are- Connecticut,
Missouri and Wisconsin.
Workers in British Telecom have protested against outsourcing of work to Indian BPO
companies.
Other BPO/ITES destinations such as China, Philippines and South Africa could have
an edge on the cost factor.
Slowdown of demand.
40
11. CONCLUSION
Business Process Outsourcing industry is growing rapidly since its inception. Indian
BPOs are going through exciting times. Starting with captive units and low-end
activities BPOs are now moving to high-end activities. Indian BPOs are operating in
both front-office and back-office operations.BPO industry in India is growing at the
rate of 28% and is expected to reach around USD14.8 Bn in2009. Exports are
accounting major proportion, which are in journey to touch USD 12.8 Bn by the end of
2009. These are growing at the fluctuating rate of around 20%-30% a year. Domestic
BPO market is also in growth and has accounted USD1.6 Bn in 2008.Inspite of this
BPOs are helping in the development of economy by decreasing the evil
of unemployment. Since the evolution of BPO it is serving the country by providing the
employment to talented and able youth of the country. Up till 2009 it has generated
around 730,000 employments in the country. Shift in BPO services has also been
experienced with moving from low-end to BFSI (Banking, Financial Services and
Insurance) and Hi-Tech sector. But the economic downturn has impacted the growth of
BPO industry. Still it occupied 60% of the offshore market. The industry is expected to
achieve USD 60 Bn by the end of 2012. And USD 225 Bn by the end of 2020.Various
trends have been experienced in BPO.
The BPO industry is drawing significant attention and India, by virtue of its
dominance in this sector is at the center of this attention. The shift of the Indian
economy towards more service orientation suggests that in the long term, India will
continue to be a major player in the global BPO industry.
Despite the growth that this industry is witnessing, there are certain areas that require
greater attention going forward from service providers to ensure that the industry
remains firmly on the growth path. This survey was conducted with the objective of
analyzing some of the key trends that will drive the future direction of the industry. We
Have endeavored to highlight some of the key risks that the industry faces and will face
as the industry evolves. We have also discussed the corresponding risk-mitigants that
service providers and companies are focusing on, to manage the risks. We hope that
this survey provides service providers with a deeper understanding of the
Industry they operate in and acts as an important input to potential customers
considering outsourcing their processes to India.
41
1. www.nasscom.com
2. www.bpoindia.com
3. www.equaterra.com
4. www.economictimes.com
5. www.coolavenues.com
6. www.outsourceindia.com
7. www.tutorialreports.com
8. www.dataquest.com
9. www.outsourcingprofessional.com
10. www.google.co.in
11. www.wikipedia.com
12. www.chillibreeze.com
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Supervisors Certificate
This is to certify that Mr. BIKKY SHAW student of B.com (Honours) in
Accounting & Finance of Acharya Girish Chandra College under the University
of Calcutta has worked under my supervision and guidance for his project work
and prepared a Project Report with the title Business Processing Outsource
(BPO).
The project which he is submitting is his genuine and original work to the best of
my knowledge.
Place: Kolkata
Date:
Designation:
44
Students Declaration
I hereby declare that the Project Work with the title Business Processing
Outsource (BPO) submitted by me for partial fulfillment of the degree of
B.Com (Honours) in Accountancy & Finance under the University of Calcutta is
my original work and has not been submitted earlier to any other University for
the fulfillment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the references.
Place: KOLKATA
Bikky Shaw
Date:
45