Call centres, bpo,outsourcing
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The document discusses outsourcing and the business process outsourcing (BPO) industry in India. It defines outsourcing as delegating a company's business processes to a third party. BPO involves contracting specific business functions like customer service or accounting to an external service provider. India has become a major hub for the global BPO industry due to its large English-speaking workforce and lower costs. The top industries for outsourcing include telecom, banking, insurance, and retail. While India has advantages, it also faces challenges like rising wages, infrastructure issues, and cultural differences.
Call centres, bpo,outsourcing
- 1. GoodGood morningmorning Vikas Kumar TyagiVikas Kumar Tyagi
- 2. Vikas Kumar TyagiVikas Kumar Tyagi
- 3. What is OUTSOURCINGWhat is OUTSOURCING ?? • Delegating a Company’s BusinessDelegating a Company’s Business Processes to Third PartyProcesses to Third Party Vikas Kumar TyagiVikas Kumar Tyagi
- 4. What is BPO?What is BPO? • Contracting of the operations andContracting of the operations and responsibilities of a specific businessresponsibilities of a specific business processes to a third-party serviceprocesses to a third-party service provider.provider. Vikas Kumar TyagiVikas Kumar Tyagi
- 5. Reasons for outsourcingReasons for outsourcing • Reduce and control operating costsReduce and control operating costs • Improve companies focusImprove companies focus • Free internal resources for otherFree internal resources for other purposepurpose Vikas Kumar TyagiVikas Kumar Tyagi
- 6. BPO Categories:BPO Categories: • Back Office outsourcingBack Office outsourcing Internal Business FunctionsInternal Business Functions • Front Office outsourcingFront Office outsourcing Customer Related servicesCustomer Related services Vikas Kumar TyagiVikas Kumar Tyagi
- 7. Certain terms :Certain terms : • OffshoreOffshore • Near shoreNear shore • InshoreInshore Vikas Kumar TyagiVikas Kumar Tyagi
- 8. What BPO Provides Human Resource Finance Market Research Network Consultancy Technical Support Collections Transaction Processes Accounting Administration Training Customer Care Vikas Kumar TyagiVikas Kumar Tyagi
- 9. Sectors:Sectors: • Telecom IndustryTelecom Industry • Travel & Hospitality IndustryTravel & Hospitality Industry • Technology IndustryTechnology Industry • Banking/Financial servicesBanking/Financial services • Insurance IndustryInsurance Industry • E-commerce & Retail IndustryE-commerce & Retail Industry • Industrial SectorIndustrial Sector • Distribution Sector & many moreDistribution Sector & many more Vikas Kumar TyagiVikas Kumar Tyagi
- 10. Market Share:Market Share: • BPO and ITes Contributes 7% to GDPBPO and ITes Contributes 7% to GDP • The global BPO Industry is 120-150 billion dollarsThe global BPO Industry is 120-150 billion dollars • Indian BPO is US $11.4billion.Indian BPO is US $11.4billion. • 824 call centers in India.824 call centers in India. • Indian IT-BPO recorded Growth of 28% in FY 2007-08.Indian IT-BPO recorded Growth of 28% in FY 2007-08. • Expectations of $30 billion by 2012.Expectations of $30 billion by 2012. • Around 6,00,000 people employed, about the same as ITAround 6,00,000 people employed, about the same as IT industry but It’s growing faster.industry but It’s growing faster. • Indian BPO players are ranked top global players inIndian BPO players are ranked top global players in every single segment because they invest massively inevery single segment because they invest massively in training, quality assurance, productivity improvement andtraining, quality assurance, productivity improvement and information security.information security. Vikas Kumar TyagiVikas Kumar Tyagi
- 11. Distribution of BPO providers in % Vikas Kumar TyagiVikas Kumar Tyagi
- 12. India’s Top 5 BPO’sIndia’s Top 5 BPO’s:: World’s Top 5 BPO’sWorld’s Top 5 BPO’s 1.1. GenpactGenpact 2.2. WNS(WorldWNS(World Network Solutions)Network Solutions) 3.3. WiproWipro 4.4. HCLHCL 5.5. Firstsource(ICICI)Firstsource(ICICI) 1.1. IBM GlobalIBM Global 2.2. AccentureAccenture 3.3. Hewlett PackarHewlett Packar 4.4. MphasiSMphasiS 5.5. Ernst &Ernst & Young/CapgeminiYoung/Capgemini Vikas Kumar TyagiVikas Kumar Tyagi
- 13. Leading BPO-ITes cities in IndiaLeading BPO-ITes cities in India:: • Tier ITier I cities likecities like Bangalore, Chennai, Hyderabad,Bangalore, Chennai, Hyderabad, NCRNCR,, PunePune,, MumbaiMumbai,, KolkataKolkata.. These are leading IT cities. With rising infrastructureThese are leading IT cities. With rising infrastructure costs BPO’s are shifting operations to.costs BPO’s are shifting operations to. • Tier IITier II cities likecities like Nashik, Aurangabad,Nashik, Aurangabad, MangaloreMangalore,, ChandigarhChandigarh,, JaipurJaipur,, MysoreMysore etc.etc. – Offers lower Business process overhead(rent,Offers lower Business process overhead(rent, electricity).electricity). – Have a less reliable infrastructure system.Have a less reliable infrastructure system. Vikas Kumar TyagiVikas Kumar Tyagi
- 14. WhyWhy IndiaIndia is more preferableis more preferable • English speaking populationEnglish speaking population • Educated technically skilledEducated technically skilled employeesemployees (large no. of graduates,(large no. of graduates, engineers)engineers) • Telecom facilities.Telecom facilities. • Favorite govt. policiesFavorite govt. policies • Lower wagesLower wages (cost reduction up to 50% )(cost reduction up to 50% ) • Suitable & large human resourcesSuitable & large human resources • Well positioned with IT-enabledWell positioned with IT-enabled servicesservices • Conductive environmentConductive environment • Favorable time lagFavorable time lag (12 hrs with USA 5 hrs(12 hrs with USA 5 hrs with UK)with UK) Vikas Kumar TyagiVikas Kumar Tyagi
- 15. Problems in India :Problems in India : • Poor infrastructurePoor infrastructure • Cultural differencesCultural differences • Internal competition for resourcesInternal competition for resources • Rising labor costsRising labor costs • Political and religious instabilitiesPolitical and religious instabilities Vikas Kumar TyagiVikas Kumar Tyagi
- 16. Why it attracts peopleWhy it attracts people • It don’t require any academicIt don’t require any academic specializationspecialization • No specific age barNo specific age bar • Offer good work environmentOffer good work environment • Good wages along with some excellentGood wages along with some excellent benefitsbenefits • Provide transport facilitiesProvide transport facilities • Attractive lifestyleAttractive lifestyle • Flexibility of timeFlexibility of time • Self independenceSelf independence Vikas Kumar TyagiVikas Kumar Tyagi
- 17. Why people dislike or leave thisWhy people dislike or leave this • TediousTedious • MonotonousMonotonous • Sleepless nights /Physical strainsSleepless nights /Physical strains • Some people leave forSome people leave for Higher educationHigher education Higher salaryHigher salary Better statusBetter status.. • low brand equitylow brand equity • Lack of focused training and certificationsLack of focused training and certifications • No growth opportunity/lack of promotionNo growth opportunity/lack of promotion • No personal/ social lifeNo personal/ social life • No technical/professional gainNo technical/professional gain • Lack of focused training and certificationsLack of focused training and certifications Vikas Kumar TyagiVikas Kumar Tyagi
- 18. Problems:Problems: Vikas Kumar TyagiVikas Kumar Tyagi
- 19. Key To success:Key To success: • Rapid training moduleRapid training module.. • Providing Employee BenefitsProviding Employee Benefits PF InsurancePF Insurance Gratuity AccommodationGratuity Accommodation Loans Educational BenefitsLoans Educational Benefits Performance based incentivesPerformance based incentives Flexi-time Maternity LeaveFlexi-time Maternity Leave • Career growth opportunitiesCareer growth opportunities Vikas Kumar TyagiVikas Kumar Tyagi
- 20. Challenges to be faced Ahead… • Retention of clients, employees • Quality and compliance issues • Emerging Foreign Destinations • Physical Infrastructure Vikas Kumar TyagiVikas Kumar Tyagi
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