IT ppt

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IT ppt

  1. 1. <ul><li>Welcome </li></ul><ul><li>To </li></ul><ul><li>A presentation on </li></ul><ul><li>Competitive Edge through Outsourcing: </li></ul><ul><li>An Enquiry into India as a BPO Hub with Scope, Risks, Challenges ahead </li></ul><ul><li>Hastimal Sagara </li></ul><ul><li>GLS Institute of Commerce </li></ul>
  2. 2. AIM of the PPT To make an evaluation of the BPO sector from the point of view of India in the changing scenario.
  3. 3. <ul><li>Flow of the Presentation </li></ul><ul><li>What is BPO or Outsourcing ? </li></ul><ul><li>Types of services outsourced </li></ul><ul><li>History </li></ul><ul><li>Why do developed countries outsource </li></ul><ul><li>India as a BPO destination </li></ul><ul><li>Banglore and other cities as a outsourcing Hubs </li></ul><ul><li>Recent Trends </li></ul><ul><li>Future prospects of outsourcing business? </li></ul><ul><li>Concerns of the sector </li></ul><ul><li>Recommendations </li></ul><ul><li>References </li></ul>
  4. 4. <ul><li>What is Business Process Outsourcing? </li></ul><ul><li>A formal agreement with a third party to perform a service for an organization. </li></ul><ul><li>The transfer of a function previously performed in-house to an outside provider. </li></ul><ul><li>The contracting out of work that was previously done within an organisation to an external provider. </li></ul><ul><li>“ A contractual relationship where an external organization takes responsibility for performing all or part of an agency’s functions. This can involve a partial or complete transfer of staff and/or resources”. </li></ul>
  5. 6. Sectors that outsource jobs!! <ul><li>Insurance </li></ul><ul><li>  Banking </li></ul><ul><li>  Public utilities </li></ul><ul><li>  Telecom </li></ul><ul><li>  Legal </li></ul><ul><li>  Transportation </li></ul><ul><li>  Manufacturing </li></ul><ul><li>  Publishing </li></ul>
  6. 7. BPO services are provided for <ul><li>Sales Support </li></ul><ul><li>Complaint Handling </li></ul><ul><li>Technical queries </li></ul><ul><li>Relationship and Accounts Management </li></ul><ul><li>Document Preparation </li></ul><ul><li>Data Entry </li></ul><ul><li>Call centers </li></ul><ul><li>Medical Transcription </li></ul><ul><li>Back Office Transactions, </li></ul><ul><li>Insurance claims processing </li></ul><ul><li>Legal databases </li></ul><ul><li>Content Development/Animation </li></ul><ul><li>Logistics Management </li></ul>
  7. 8. <ul><li>Why should any company outsource </li></ul><ul><li>1.Reduce overheads, free up resources 2. Minimize capital expenditure 3. Eliminate investment in fixed infrastructure 4. Offload non-core functions and redirect energy and personnel into the core business 5. Focus scarce resources on mission-critical projects 6. Get access to specialized skills labour </li></ul><ul><li>7. Reduce the overall management burden while retaining control of strategic decision making. </li></ul><ul><li>8. Save on manpower and training costs </li></ul><ul><li>9. Control operating costs </li></ul><ul><li>10.Spread the risks </li></ul><ul><li>In Nutshell, Outsourcing is done to save money, improve quality, or free company resources for core activities </li></ul>
  8. 9. Global BPO Market Size
  9. 10. The biggest advantage India offers is its low cost and huge skilled manpower
  10. 11. <ul><li>Key Enablers for BPO Cluster in India </li></ul>Pool of Talent Low Cost of operations Better Infrastructure Conducive govt Policy Better Investor support
  11. 12. <ul><li>Why is India preferred by the developed countries? </li></ul><ul><ul><li>Hi-tech PSUs </li></ul></ul><ul><ul><li>Pool of high quality professionals </li></ul></ul><ul><ul><li>Largest number of engineering colleges </li></ul></ul><ul><ul><li>Excellent climate </li></ul></ul><ul><ul><li>Indian School of Business </li></ul></ul><ul><ul><li>Brand Building </li></ul></ul><ul><ul><li>High Quality educational and research facilities </li></ul></ul><ul><ul><li>Good institutional support </li></ul></ul>
  12. 13. <ul><li>India: A success story </li></ul><ul><li>India now leads the world in offshore outsourcing </li></ul><ul><li>The value of outsourcing to India in 2007 is estimated at $47.8bn (£24bn). </li></ul><ul><li>Expansion is happening fast, and the IT outsourcing industry is predicted to continue growing at about 28% a year. </li></ul><ul><li>IT and business process outsourcing (BPO) services now account for 5.4% of India's gross domestic product (GDP). </li></ul><ul><li>Banglore, Hyderabad, Gandhinagar, Kolkata have become Indian forms of Silicon Valley of the U. S. </li></ul><ul><li>India has more than a billion people - with more than two million graduating from university each year. </li></ul>
  13. 14. BPO: Employment Opportunity <ul><li>“ India's business process outsourcing (BPO) industry is likely to face a workforce shortage of 262,000 employees by 2009. Estimates place the BPO industry's future workforce requirement at 1 million staff by 2009” says The Planning Commission, </li></ul><ul><li>currently employs 400,000 people according to recent estimates. Of which 80% is concentrated in and around Tier I cities. </li></ul><ul><li>Estimate says the requirement of people at 12,00,000 by the end of year 2010. </li></ul><ul><li>Services industry growing at 10-11% with emerging careers in other industries. </li></ul><ul><li>The BPO industry has grown at 40% and is likely to face acute manpower shortage by 2008. </li></ul>programs for
  14. 15. IT Clusters in India
  15. 16. <ul><li>NASSCOM’s annual study on the performance of the IT services and BPO sector in 2006-07 </li></ul>No. of Employees -Sector wise break-up
  16. 17. <ul><li>Earnings for India for 2006-07 (USD Billion) </li></ul><ul><li>IT Software and Services Exports—22.9 </li></ul><ul><li>ITES-BPO Exports--8.4 </li></ul><ul><li>Software exports predict that there would be a healthy 33 percent growth for 2007-08. </li></ul><ul><li>The industry continued to be amongst the largest employers, directly providing jobs to more than 1.6 million people and indirectly creating employment opportunities for an additional 6 million Indians in related industries. </li></ul><ul><li>The industry also significantly impacted socio-economic development by contributing 5.2 percent to the national GDP </li></ul><ul><li>India maintained its lead as the preferred outsourcing destination, based on factors such as talent suitability, process maturity and conducive business environment </li></ul>
  17. 18. Indian IT & BPO Industry – Recent Trends
  18. 19. <ul><ul><li>The new challenge to Indian BPO industry due appreciation of Indian Rupee against Dollar </li></ul></ul><ul><li>The export front is experiencing a downfall particularly with dollar based economies like U. S.A. , Canada etc. </li></ul><ul><li>There is an expected decline of about 10% of exports if the present trend of Rupee appreciation against dollar continues. </li></ul>
  19. 20. <ul><li>India faces Competition from </li></ul><ul><li>China , Ireland, Singapore, Malaysia, Mexico, the Czech Republic, </li></ul><ul><li>Poland, the Philippines, </li></ul><ul><li>Canada. China has remerge </li></ul><ul><li>“ China has rapidly emerged as an industrial powerhouse” </li></ul><ul><li>emerged as an industrial powerhouse China has rapidly rhouse </li></ul>“ India is still the most preferred destination for outsourcing”
  20. 21. <ul><li>The main issues that concern the BPO Industry today are: </li></ul><ul><ul><li>Security of data at a great risk </li></ul></ul><ul><ul><li>Availability of Skilled Manpower </li></ul></ul><ul><ul><li>Training on regular basis </li></ul></ul><ul><ul><li>Quality Delivery </li></ul></ul><ul><ul><li>New Business Acquisition </li></ul></ul><ul><ul><li>Government Support </li></ul></ul><ul><ul><li>Availability of High Risk Capital </li></ul></ul>
  21. 22. <ul><li>Recommendations Job Security for BPO workers </li></ul><ul><li>Should be brought under Trade Union Umbrella </li></ul><ul><li>N eed for more explicit, detailed and relevant regulations, guidance </li></ul><ul><li>Health risk assessments for employees </li></ul><ul><li>Need for full time counsellors </li></ul><ul><li>Establishment of welfare committee </li></ul>
  22. 23. <ul><li>References </li></ul><ul><li>Data quest 'BPO employee survey 2004', Vol XXII No.21, November 15, 2004.    </li></ul><ul><li>Booming call centre biz in India; http://www.indiatelecomnews.com       </li></ul><ul><li>Call centre industry in India; http://callcentreinindia.blogspot.com       </li></ul><ul><li>BPO.FAQ; www.bpoindia.org.       </li></ul><ul><li>Geeta seshu; stress in the sunshine sector;http://www.boloji.com       </li></ul><ul><li>Call centre lack challenges-study by NFO India and people equity-HR consultancy Bangalore; June 2003.       </li></ul><ul><li>Call centre faces manpowercrunch; http://www. thehindubusinessline. com       </li></ul><ul><li>Greying of India's call centre;bbc.co.uk, Thursday, 5th August 2004.      National Association of Software and Services Companies (Nasscom). </li></ul><ul><li>Annual Trade Report of the WTO </li></ul><ul><li>  www.nasscom.in </li></ul>
  23. 24. Thanks India

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