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BPO

The document discusses the history and growth of business process outsourcing (BPO) from the 1960s to present day. It outlines key terms like outsourcing and offshoring. India has become a popular location for BPO due to advantages like English proficiency, education levels, and cost. The document also lists top companies in different BPO sectors and provides examples of successful BPO partnerships between companies and Indian firms. Lastly, it offers best practices for companies to follow when establishing offshore outsourcing partnerships.

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Vaibhav Verma
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85 views18 pages

BPO

The document discusses the history and growth of business process outsourcing (BPO) from the 1960s to present day. It outlines key terms like outsourcing and offshoring. India has become a popular location for BPO due to advantages like English proficiency, education levels, and cost. The document also lists top companies in different BPO sectors and provides examples of successful BPO partnerships between companies and Indian firms. Lastly, it offers best practices for companies to follow when establishing offshore outsourcing partnerships.

Uploaded by

Vaibhav Verma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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BPO: Business Process Outsourcing

Leanna Dertinger, Jana Earnshaw, Mitsuru Kajio, Jesse McShane & Simon Seid

Terminology
Outsourcing Offshoring BPO ITO Fragmentation

History of BPO
World War II
Increased international trade

1960s 1980s
Importing turns to outsourcing

1990s Present
Services now outsourced BPO begins

HP Goes The Distance For P&G


Corporate Culture & Brand Finance and Accounting Bangalore & Mumbai, India Global Customers w/ Local Support Core Competencies cut Defects

Global Accounts Payable Processing

BPO Advantages
Productivity Improvements Cost Savings Improved HR Focus on Core Business Competency Increased Capability

Benefits

BPO Disadvantages
Recent Studies Knowledge Disappears and is Transferred to the Outsourcing Partner Poor Quality Control Restoring Operations is Complicated Lack of Loyal Employees Reduction in Strategic Alignment

Video

Why BPO in India?


Language Education Quality
- Communication - No pirated products

If Chinese Government Policy changes, what will happen?


- Turning point will be by 2010

Comparison: India versus China China India


Educational System Cost Advantage Time/Distance Advantage English proficiency Government Support Quality Labor Pool Educational System Cost Advantage Time/Distance Advantage Close to Japan

Matching Process to Market


India
Development of software Call center
IBM

China
Manufacturing of components Japanese IT Companies

Source: BusinessWeek, The Future of Outsourcing

Hot Players in Outsourcing


Business Services 1. Hewitt Associates (U.S.) 2. ACS (U.S.) 3. Accenture (U.S.) 4. IBM (U.S.) 5. EDS (U.S.) 6. Hewlett-Packard (U.S.) 7. Wipro (India) Software Development 1. Tata Consultancy Services (India) 2. Infosys Technology (India) 3. Wipro (India) 4. Accenture (U.S.) 5. IBM (U.S.) 6. Cognizant Techonology Solutions (U.S.) 7. Satyam (India) Call Centers 1. Convergys (U.S.) 2. Wipro (India) 3. ICICI One Source (India) 4. ClientLogic (U.S.) 5. 24/7 Customer (India) 6. SR.Teleperformance (France) 7.e Telecare International (U.S.)

8. HCL Technologies (India)


9. Tata Consultancy Services (India) 10. WNS Global Services (India)

8.Patni Computer Systems (India)


9. EDS (U.S.) 10. CSC (U.S.)

8. SITEL (U.S.)
9. Teletech (U.S.) 10. CustomerCorp. (U.S.)

Source: BusinessWeek, The Future of Outsourcing

5 Managerial Steps That Pay Off


1. Go Offshore for the right reasons
Shifting a broken process overseas may not fix it Could cost more..(Ill fix this part) Employees and middle managers can make the bold move happen.or stop you in your tracks

2. Choose your model carefully


3. Get your people on board

5 Managerial Steps That Pay Off


4. Be prepared to invest time and effort
Often what is lacking in offshore partners is a lot of deep process knowledge Telling your partners exactly what to do and how to do it is not conducive to the entire process

5. Treat your partners as equals

Examples
Penske and Indias Genpact Eli Lilly

Sources
Gibson, Stan. HP Goes DistanceFor P&G, eWeek, 3/20/2006, Vol. 23 Issue 12, p49-52, 3p. A world of work, The Economist, November 13, 2004, pp. 6-7. Booton, Bob (2005). Outsourcing in a box. San Jose, CA: Bidness Books Publishing. Engardio, Pete, "The Future of Outsourcing," Business Week, January 30,2006. pp. 50-58. Kripalani, Manjeet, "Five offshore practices that pay off," Business Week, January 30, 2006. pp. 60-61. http://economictimes.indiatimes.com/articleshow/1468167.cms http://www.behtimes.com/article/123/7/ http://us.rediff.com/money/2004/jan/08bpo.htm http://globalconnect.ucsd.edu/taipei/documents/InterRegionalPartnershipsAnIndiaPerspective.pdf http://www.cyfuture.com/business-process-outsourcing.htm http://www.bpoindia.org/ http://www.xicom.biz/research.html http://www.networkworld.com/news/2004/0407updatibm.html http://encarta.msn.com/encyclopedia_701702628/Outsourcing.html

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