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Bpo in India: Presented by

This document discusses business process outsourcing (BPO) in India. It begins with an introduction to outsourcing and why companies outsource. It then discusses the benefits of BPO, including cost savings. India has become a major destination for global BPO due to its large skilled workforce and lower costs. The document outlines the size and growth of the Indian BPO industry. It also discusses some of the key challenges for BPO in India, such as retaining employees, and future opportunities for growth in new sectors. In conclusion, India is expected to become a $60-62 billion BPO industry by 2011, contributing significantly to the country's economic development.

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Apurva Srivastava
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463 views21 pages

Bpo in India: Presented by

This document discusses business process outsourcing (BPO) in India. It begins with an introduction to outsourcing and why companies outsource. It then discusses the benefits of BPO, including cost savings. India has become a major destination for global BPO due to its large skilled workforce and lower costs. The document outlines the size and growth of the Indian BPO industry. It also discusses some of the key challenges for BPO in India, such as retaining employees, and future opportunities for growth in new sectors. In conclusion, India is expected to become a $60-62 billion BPO industry by 2011, contributing significantly to the country's economic development.

Uploaded by

Apurva Srivastava
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 21

BPO IN INDIA

Presented by:
Ashwath Bereke (104)
Charchil Gugalia (114)
Ashutosh Kumar (124)
Rupal Naidu (134)
Srotoswini Roy (144)
Apurva Srivastava (154)
Agenda
 Introduction: What is outsourcing?
 Why do companies outsource?
 Business Process Outsourcing and its benefits.
 Global and domestic scenario for BPOs
 Key challenges and future opportunities for growth.
What is outsourcing?
 Outsourcing is often defined as the delegation of
non-core operations or jobs from internal
production within a business to an external entity
that specializes in that operation.
 Strategic management.

 Helps companies concentrate on their core

competence.
 Delegate other peripheral activities to an external

agency that specializes in that task.


Why Do Companies Outsource?
Reasons For Outsourcing
Improved Performance 20%
Speed to Market 20%
Lack of In-House Personnel 21%
Better Support for Internal Users 22%
Operational Expertise 26%
Removal of Fixed Costs 26%
Reliability 28%
Knowledge Transfer 34%
Capacity Flexibility 41%
Cost-Savings 65%
0% 10% 20% 30% 40% 50% 60% 70%
What is a BPO?
 Major corporations in the US and Europe are
outsourcing their back office operations to India to
save costs.
 Example: Employee payroll is maintained in India
for their employees worldwide.
 Although these jobs usually are not directly IT-
related, their data-based orientation often means
that they require IT departmental support to be
successfully outsourced.
Advantages of a BPO
 Factor Cost Advantage.
 Economy of Scale.
 Business Risk Mitigation.
 Superior Competency.
 Utilization Improvement.
Services Offered – Some examples
 Customer Support Services
 Technical Support Services
 Telemarketing Services
 Employee IT Help-desk Services
 Insurance Processing
 Data Entry Services/Data Processing Services
 Form Processing Services
 Internet/Online/Web Research
BPO - Operational Overview
 Determining factors which help a Company/Firm to make
a decision on which all Business Processes are to be
outsourced:
 Knowledge component, with associated quality risks.
 Interactive component, both intra-firm and with vendors and
customers.
 Process separability into interactive and non-interactive
components.
 Economies of scale from concentrating in a single location.
 Efficiency gains from reengineering.
 Time and mission sensitive aspects of the work.
What is offshoreable in BP?
Process => Strategic Process Process Migration
Consulting & Specification Implementatio Services
Reengineering & Design n including
Services Process
Integration &
QA
1. Process M L H M
Separability

2. Relevance of M H H H
offshore skills

3. Offshoreability M L H M

4. Share in value- 20-30 05-10 50-60 10-15


chain (%)
Global BPO Industry Overview

Global BPO market breakup by Global BPO market breakup by


industry geography
Financial Services United States
Communication (Telecom) Europe
Consumer Goods/Services Asia Pacific (including Japan)
Manufacturing Others
Information Technology
9% 5%
17%
43%
16%
27%
59%
15%

9%
Source: http://www.naukrihub.com/india/bpo/overview/sector-outlook/
Top 25 BPOs - Global
1.     IBM Global / Daksh 14.   HCL Technologies
2.     Accenture 15.   Xansa
3.     Hewlett Packard 16.   CSC
4.     MphasiS 17.   Unisys
5.     Ernst & Young / Capgemini 18.   Keane
6.     Wipro Spectramind 19.   Satyam
7.     ICICI One Source 20.   CGI
8.     eFunds Global Outsourcing 21.   Cognizant
9. Convergys 22.   24/7 Customer
10.   Affiliated Computer Systems 23.   Intelligroup
11.   Sutherland Technologies 24.   Northrop Grumman IT
12.   Oracle 25.   Infosys
13.   Hewitt/Exult
Source: NASSCOM Survey
BPO – Indian Scenario
 Indian Domestic BPO is $1.8 billion industry in
FY2008 and is expected to grow at a CAGR of 35%
for the next 4 years, becoming a $6 billion industry by
FY2012.
 Outsourcing began in full earnest in 2003, with most
of the third party vendors growing at a rate of over
100%, to capture an 18% share of the overall market
in FY2008.
 Third party vendors’ market share is expected to
increase to 30% by FY2012.
BPO – Indian Scenario (contd.)
 Oligopolistic structure – The top 12 players accounted for
75% of the third party domestic BPO revenues in FY2008.
 Customer care and Sales and Marketing are the two largest
business segments and accounted for over 78% of the
overall market in FY2008.
 Banking, Insurance and Telecom are the key industry
verticals and accounted for 68% of the overall market in
FY2008.
 Retail and Media and Entertainment are the emerging
verticals.
Attractiveness of India as a BPO Destination

Source: BPO &Call Center Outsourcing: An Industry Overview(InterGlobe Technologies)


Top 15 BPOs in India
1.     WNS Group
2.     Wipro Spectramind
3.     Daksh e-Services
4.     Convergys
5.     HCL Technologies
6.     Zenta A7
7.     ICICI Onesource
8.     MphasiS
9.     EXL
10.   Tracmail
11.   GTL Ltd.
12.   vCustomer
13.   HTMT
14.   24/7 Customer
15.   Sutherland Tech.
Source: NASSCOM Survey
Challenges Ahead
 Client Acquisition and Retention
 Retaining employees
 Productivity
 Quality and compliance issues
 Resource and Skill Gaps
 Funding
 Emerging Foreign Destinations
 Physical Infrastructure
Drivers, Inhibitors & Challenges for the Indian BPO
Industry
Future Opportunities
 Some of the untapped/emerging sectors where the
Indian BPO industry has an opportunity for growth
are:
 HR Outsourcing.
 Receivables Management.
 Publishing Services.
 Healthcare Services.
 Greater focus on the mid-market opportunity
 Demand from the domestic market.
Conclusion
 India’s fundamental advantages - abundant talent and
cost, are sustainable over the long term.
 Timely government policies and increased public-private
participation have played a key role in developing and
enabling business environment for the Indian IT-BPO
industry.
 The industry is expected to achieve an export target of
USD 60-62 billion by FY 2011, employing 2.5-3 million
professionals directly and contributing substantially to
the socio-economic development of the country.
THANK YOU
References
 “Doing business in India: Issues in Software and Business Process Offshoring”
Rafiq Dossani.
US-ATMC workshop
October 23, 2003

 “Indian Domestic BPO Market – An Emerging Opportunity”


January 2008

 “Business Process Outsourcing - An Industry Overview”


Consulting Club, IIMC

 http://voicendata.ciol.com/content/bporbit/annualsurvey

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