BUSINESS PROCESS

OUTSOURCING

Presented 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 DOLLARS SOURCE: NASSCOM

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
safe place Largest
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.