Business Process Outsourcing

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 noncore 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 PER YEAR

2003-04

2004-05

2005-06

2006-07

2007-08

DOMESTIC BPO

0.3

0.6

0.9

1.1

1.6

OVERALL BPO REVENUE

3.4

5.2

7.2

9.5

12.5

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 to do business

Largest reservoir of skilled/semiskilled manpower Long-term sustainable Competitive advantage

Favorite Market

Largest democracy – political stability & consensus on reforms

Liberal & transparent investment policies

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.