BPO Industry in India

Business process outsourcing (BPO) is a broad term referring to outsourcing in all fields. A

BPO differentiates itself by either putting in new technology or applying existing technology in a new
way to improve a process. Business Process Outsourcing (BPO) is the delegation of one or more IT-
intensive business processes to an external provider that in turn owns, administers and manages the
selected process based on defined and measurable performance criteria. Business Process Outsourcing
(BPO) is one of the fastest growing segments of the Information Technology Enabled Services (ITES)
industry.

Generally outsourcing can be defined as - An organization entering into a contract with another
organization to operate and manage one or more of its business processes.

Different Types of Services Being Offered By BPO's

1. Customer Support Services
Our customer service offerings create a virtual customer service center to manage customer
concerns and queries through multiple channels including voice, e-mail and chat on a 24/7 and 365
days basis.

Service Example: Customers calling to check on their order status, customers calling to check for
information on products and services, customers calling to verify their account status, customers
calling to check their reservation status etc.
 
2. Technical Support Services
Our technical support offerings include round-the-clock technical support and problem
resolution for OEM customers and computer hardware, software, peripherals and Internet
infrastructure manufacturing companies. These include installation and product support, up & running
support, troubleshooting and Usage support.

Service Example: Customers calling to resolve a problem with their home PC, customers calling to
understand how to dial up to their ISP, customers calling with a problem with their software or
hardware.
 
3. Telemarketing Services
Our telesales and telemarketing outsourcing services target interaction with potential
customers for 'prospecting' like either for generating interest in products and services, or to up-sell /
promote and cross sell to an existing customer base or to complete the sales process online.

Service Example: Outbound calling to sell wireless services for a telecom provider, outbound calling
to retail households to sell leisure holidays, outbound calling to existing customers to sell a new rate
card for a mobile service provider or outbound calling to sell credit or debit cards etc.
 
4. Employee IT Help-desk Services
Our employee IT help-desk services provide technical problem resolution and support for
corporate employees.

Service Example: of this service include level 1 and 2 multi-channel support across a wide range of
shrink wrapped and LOB applications, system problem resolutions related to desktop, notebooks, OS,
connectivity etc., office productivity tools support including browsers and mail, new service requests,
IT operational issues, product usage queries, routing specific requests to designated contacts and
remote diagnostics etc.
  
5. Insurance Processing
Our insurance processing services provide specialized solutions to the insurance sector and
support critical business processes applicable to the industry right from new business acquisition to
policy maintenance to claims processing.

Service Example:
New Business / Promotion: Inbound/outbound sales, Initial Setup, Case Management, Underwriting,
Risk assessment, Policy issuance etc.
Policy Maintenance / Management: Record Changes like Name, Beneficiary, Nominee, Address;
Collateral verification, Surrender Audits Accounts Receivable, Accounting, Claim Overpayment,
Customer care service via voice/email etc.
 
6. Data Entry Services / Data Processing Services
Service Example:
 Data entry from Paper/Books with highest accuracy and fast turn around time (TAT)
 Data entry from Image file in any format
 Business Transaction Data entry like sales / purchase / payroll.
 Data entry of E-Books / Electronic Books
 Data Entry : Yellow Pages / White Pages Keying
 Data Entry and compilation from Web site
 Data Capture / Collection
 Business Card Data Entry into any Format
 Data Entry from hardcopy/Printed Material into text or required format
 Data Entry into Software Program and application
 Receipt and Bill Data Entry
 Catalog Data Entry.
 Data Entry for Mailing List/Mailing Label.
 Manuscripting typing in to word
 Taped Transcription in to word.
 Copy, Paste, Editing, Sorting, Indexing Data into required format etc.
 
7. Data Conversion Services

Service Example:
 Conversion of data across various databases on different platforms
 Data Conversion via Input / Output for various media.
 Data Conversion for databases, word processors, spreadsheets, and many other
standard and custom-made software packages as per requirement.
 Conversion from Page maker to PDF format.
 Conversion from Ms-Word to HTML format
 Conversion from Text to Word Perfect.
 Conversion from Text to Word to HTML and Acrobat
 Convert Raw Data into required MS Office formats.
 Text to PDF and PDF to Word / Text / Doc
 Data Compilation in PDF from Several Sources.
 E-Book Conversion etc.
 
8. Scanning, OCR with Editing & Indexing Services

Service Example:
 High speed Image-Scanning and Data capture services
 High speed large volume scanning
 OCR Data From Scanned page / image
 Scan & OCR paper Book in to CD.
 ADOBE PDF Conversion Services.
 Conversion from paper or e-file to various formats
 
9. Book Keeping and Accounting Services

Service Example: 
 General Ledger
 Accounts Receivables and Accounts Payable
 Financial Statements
 Bank Reconciliation
 Assets / Equipment Ledgers etc.
 
10. Form Processing Services:

Service Example:
 Insurance claim form
 Medical Form / Medical billing
 Online Form Processing
 Payrol Processing etc.
 
11. Internet / Online / Web Research

Service Example: 
 Internet Search, Product Research, Market Research, Survey, Analysis.
 Web and Mailing list research etc.
 
Business Process Outsourcing: The Top Rankers
WNS has emerged as the top BPO in India, pushing Wipro Spectramind to the second
position, according to a survey done by NASSCOM. The basis of ranking is the revenues generated
by the BPO companies in 2003-04, as per US GAAP. A list of top fifteen BPO companies in India is
given below.
 
1. WNS Group
2. Wipro Spectramind
3. Daksh e-Services
4. Convergys
5. HCL Technologies
6. Zenta
7. ICICI Onesource
8. MphasiS
9. EXL
10. Tracmail
11. GTL Ltd.
 12. vCustomer
13. HTMT
14. 24/7 Customer
15. Sutherland Technologies

The parameters for the survey was: Employee Size (Operation level executives), Percentage
of last salary hike, Cost to company , Overall Satisfaction Score, Composite Satisfaction, Company
Culture, Job Content / Growth, Training , Salary and Compensation , Appraisal System, People,
Preferred Company: (Percentage of respondents of a company who named their own company as the
preferred one), Dream Company: (Percentage of respondents in the total sample who preferred a
particular company).
Employee Benefits Provided By Majoriy Of the BPO Companies
 Provident Fund: As per the statutory guidelines, the employee is required to contribute a
percentage of his basic salary and DA to a common fund. The employer for this fund contributes as
well. The employee can use the amount deposited in this fund for various personal purposes such as
purchase of a new house, marriage etc.
 Gratuity: Gratuity is one of the retrial benefits given to the employee in which the employer
every year contributes a particular amount. The fund created can be used by the employee for the
purpose of long-term investment in various things such as a house etc.
 Group Mediclaim Insurance Scheme: This insurance scheme is to provide adequate insurance
coverage of employees for expenses related to hospitalization due to illness, disease or injury or
pregnancy in case of female employees or spouse of male employees. All employees and their
dependent family members are eligible. Dependent family members include spouse, non-earning
parents and children above three months
 Personal Accident Insurance Scheme: This scheme is to provide adequate insurance coverage
for Hospitalization expenses arising out of injuries sustained in an accident. It is applicable to all the
employees of JFWTC and covers total / partial disablement / death due to accident and due to
accidents.
 Subsidized Food and Transportation: The organizations provides transportation facility to all
the employees from home till office at subsidized rates. The lunch provided is also subsidized.
 Company Leased Accommodation: Some of the companies provides shared accommodation
for all the out station employees, in fact some of the BPO companies also undertakes to pay
electricity/water bills as well as the Society charges for the shared accommodation. The purpose is to
provide to the employees to lead a more comfortable work life balance.
 Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities include pool
tables, chess tables and coffee bars. Companies also have well equipped gyms, personal trainers and
showers at facilities.
 Corporate Credit Card: The main purpose of the corporate credit card is enable the timely and
efficient payment of official expenses which the employees undertake for purposes such as travel
related expenses like Hotel bills, Air tickets etc
 Cellular Phone / Laptop: Cellular phone and / or Laptop is provided to the employees on the
basis of business need. The employee is responsible for the maintenance and safeguarding of the
asset.
 Personal Health Care (Regular medical check-ups): Some of the BPO'S provides the facility
for extensive health check-up. For employees with above 40 years of age, the medical check-up can
be done once a year.
 Loans: Many BPO companies provides loan facility on three different occasions: Employees
are provided with financial assistance in case of a medical emergency. Employees are also provided
with financial assistance at the time of their wedding. And, The new recruits are provided with
interest free loans to assist them in their initial settlement at the work location.
 Educational Benefits: Many BPO companies have this policy to develop the personality and
knowledge level of their employees and hence reimburses the expenses incurred towards tuition fees,
examination fees, and purchase of books subject, for pursuing MBA, and/or other management
qualification at India's top most Business Schools.
 Performance based incentives: In many BPO companies they have plans for , performance
based incentive scheme. The parameters for calculation are process performance i.e. speed, accuracy
and productivity of each process. The Pay for Performance can be as much as 22% of the salary.
 Flexi-time: The main objective of the flextime policy is to provide opportunity to employees
to work with flexible work schedules and set out conditions for availing this provision. Flexible work
schedules are initiated by employees and approved by management to meet business commitments
while supporting employee personal life needs .The factors on which Flexi time is allowed to an
employee include: Child or Parent care, Health situation, Maternity, Formal education program
 Flexible Salary Benefits: Its main objective is to provide flexibility to the employees to plan a
tax-effective compensation structure by balancing the monthly net income, yearly benefits and income
tax payable. It is applicable of all the employees of the organization. The Salary consists of Basic, DA
and Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent Allowance, Leave
Travel Assistance, Medical Reimbursement, Special Allowance
 Regular Get together and other cultural programs: The companies organizes cultural program
as and when possible but most of the times, once in a quarter, in which all the employees are given an
opportunity to display their talents in dramatics, singing, acting, dancing etc. Apart from that the
organizations also conduct various sports programs such as Cricket, football, etc and regularly play
matches with the teams of other organizations and colleges.
 Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/- based on
their level in the organization.
 Employee Referral Scheme: In several companies employee referral scheme is implemented
to encourage employees to refer friends and relatives for employment in the organization.
 Paid Days Off
 Maternity Leave
 Employee Stock Option Plan
Inspite of all these benefits, the attrition rate in BPO industry is very high, why?. What is the reason
for an employee to leave? These and many more are the questions that need immediate attention from
the industrial gurus.
 
Challenges for a HR Professional in BPO
1. Brand equity: People still consider BPO to be "low brow", thus making it difficult to attract
the best talent.
 
2. Standard pre-job training: Again, due to the wide variety of the jobs, lack of general clarity on
skill sets, etc, there is no standard curriculum, which could be designed and followed.
 
3. Benchmarks: There are hardly any benchmarks for compensation and benefits, performance
or HR policies. Everyone is charting their own course.
 
4. Customer-companies tend to demand better results from outsourcing partners than what they
could actually expect from their own departments. "When the job is being done 10,000 miles away,
demands on parameters such as quality, turn around timeliness, information
security, business continuity and disaster recovery, etc, are far higher than at home. So, how to be
more efficient than the original?
 
5. Lack of focused training and certifications
Given this background, the recruiting and compensation challenges of HR departments are only
understandable.
 
Key To success
The key to success in ramping up talent in a BPO environment is a rapid training module.
The training component has to be seen as an important sub-process, requiring constant re-engineering.