Research paper 2010


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Research paper 2010

  1. 1. PIONEER INSTITUTE OF PROFESSIONAL STUDIES<br /> <br /> Research paper<br /> On<br />“A Study of Working Environment <br />In BPO Sector”<br />Guided by: Submitted by:<br />Prof. Ankita Jain Yatendra Nagar <br /> MBA III Sem <br />CONTENTS<br /><ul><li>CHAPTER -1
  2. 2. Introduction
  3. 3. Conceptual Frame Work
  4. 4. History
  5. 5. Literature Review
  6. 6. Rationale
  7. 7. Objective
  8. 8. CHAPTER -2
  9. 9. Research Methodology - Period of study
  10. 10. Sample selection
  11. 11. Statistical technique used
  12. 12. Tools for Data Collection- Use of Questionnaire
  13. 13. CHAPTER -3
  14. 14. Result and Discussion
  15. 15. Major Result
  16. 16. Table & Chart
  17. 17. Conclusion
  18. 18. Implication
  19. 19. Suggestion and Scope for Future Work</li></ul>References - Bibliography <br /> References<br /> Webliography <br /><ul><li>Annexure -</li></ul> Questionnaire <br /><ul><li> CHAPTER -1</li></ul>Introduction:- <br />Business process outsourcing (BPO) is the act of giving a third-party the responsibility of running what would otherwise be an internal system or service. For instance, an insurance company might outsource their claims processing program or a bank might outsource their loan processing system. Other common examples of BPO are call centers and payroll outsourcing. <br />Typically, companies that are looking at business process outsourcing are hoping to achieve cost savings by handing the work to a third-party that can take advantage of economies of scale by doing the same work for many companies. Or perhaps the cost savings can be achieved because labor costs are lower due to different costs of living in different countries. In exchange for the potential cost savings, the company in question must relinquish control over an aspect of their business which explains why business process outsourcing is often reserved for non-critical, non-core type of work.<br />Definition: BPOs are often associated with foreclosures and short sales, but other companies such as relocation firms order BPOs. A BPO stands for "broker price opinion," and it involves using a process very similar to an appraisal. Companies hire a real estate broker to prepare an opinion of value. The representative of the broker, generally a real estate agent, compares three similar properties that have recently sold to the subject property and adjusts up or down for differences. The final result in an opinion of market value.<br />Meaning of BPO<br />Business process outsourcing (BPO) is the leveraging of technology vendors to provide and manage a company's critical and/or non-critical enterprise applications. Through the business transformation process of service-oriented transformation, which leverages the technologies and standards of service-oriented architecture, companies can increasingly leverage third party companies that act as business service providers. Business process outsourcing can use off-shore resources, but is not required<br />Definition of Stress<br />The word stress is derived from the Latin word "stringi", which means, "to be drawn tight". Stress can be defined as follows:<br />In medical terms stress is described as, "a physical or psychological stimulus that can produce mental tension or physiological reactions that may lead to illness." When you are under stress, your adrenal gland releases corticosteroids, which are converted to cortisol in the blood stream. Cortisol have an immune suppressive effect in your body.<br />Another Definition of Stress<br />According to Richard S Lazarus, stress is a feeling experienced when a person thinks that "the demands exceed the personal and social resources the individual is able to mobilize."<br />Your body tries to adjust to different circumstances or continually changing environment around you. In this process, the body is put to extra work resulting in "wear and tear". In other words, your body is stressed. Stress disturbs the body's normal way of functioning.<br />Most of us experience stress at one time or another. Without stress, there would be no life. However, excessive or prolonged stress can be harmful. Stress is unique and personal. A situation may be stressful for someone but the same situation may be challenging for others. For example, arranging a world level symposium may be challenging for one person but stressful to another. Some persons have habit of worrying unnecessarily.<br /> <br /> Causes of Stress at Work <br />To meet out the demands of the job. <br />Your relationship with colleagues. <br />To control staff under you. <br />To train your staff and take work from them. <br />Support you receive from your boss, colleagues and juniors. <br />Excessive work pressure. <br />To meet out deadlines. <br />To give new results. <br />Working overtime and on holidays. <br />New work hours. <br />Promotion or you have not been promoted or your junior has superseded you. <br />Argument or heated conversations with co-workers or boss. <br />Change of job. <br />Work against will. <br />Harassment. <br />Sexual molestation.<br />Conceptual Framework:- <br />Stress is the body's reaction to a change that requires a physical, mental or emotional adjustment or response. <br />Stress can come from any situation or thought that makes you feel frustrated, angry, nervous, or anxious. Stress is caused by an existing stress-causing factor or "stressor."Dealing with a serious illness or caring for someone who is can cause a great deal of stress.<br />Your body tries to adjust to different circumstances or continually changing environment around you. In this process, the body is put to extra work resulting in "wear and tear". In other words, your body is stressed. Stress disturbs the body's normal way of functioning.<br />Most of us experience stress at one time or another. Without stress, there would be no life. However, excessive or prolonged stress can be harmful. Stress is unique and personal. A situation may be stressful for someone but the same situation may be challenging for others. For example, arranging a world level symposium may be challenging for one person but stressful to another. Some persons have habit of worrying unnecessarily.<br />Sometime we know in advance that doing a certain thing will be stressful, but we are willing to doing that. For example, while planning a vacation to a hill station you know that it would be stressful at certain times. But you are willing to face those challenges.<br />History: -<br />Outsourcing is one such abstracted term that has, over time, amassed considerable positive momentum as well as negative baggage. Outsourcing has been around since the time of the hunters and gatherers. Those who were strong hunters hunted and those who were strong gatherers gathered. Simply put, the primitive society perhaps subconsciously recognized the importance of specialization and outsourced certain functions to those who excelled at them or, in economic terms, performed them more efficiently.Over a period of time, many started equating outsourcing with specialization (or division of labor). Outsourcing is a utilitarian concept used in business and accounting. From the accounting point of view, it is defined as the transfer of an internal service function to an outside vendor.Outsourcing was not formally identified as a business strategy until 1989. However, most organizations were not totally self-sufficient; they outsourced those functions for which they had no competency internally. Outsourcing support services is the next stage. In the 1990s, as organizations began to focus more on cost-saving measures, they started to outsource those functions necessary to run a company but not related specifically to the core business. Managers contracted with emerging service companies to deliver accounting, human resources, data processing, internal mail distribution, security, plant maintenance, and the like as a matter of "good housekeeping" (Alexander & Young, 1996). Outsourcing components to effect cost savings in key functions is yet another stage as managers seeks to improve their finances.Why is it advantageous to buy services from the outside rather than conduct them from within the company?The answer to this question, which is clearly outlined, is because the service providers who specialize in these services have developed efficiencies and learned how to offer high quality and competitive pricing.Traditionally, companies have outsourced for tactical reasons - reduce costs, free up cash, obtain resources not available internally, and improve their performance. Outsourcing some functions can shift costs from fixed to variable, thus enhancing a company's ability to manage costs more effectively. If a company is moving into a new arena, outsourcing enables it to add new functions with minimal impact on internal resources. It is difficult to quarrel with cost savings, and the companies that approach outsourcing with careful planning save money. Surveying 30 companies, the Outsourcing Institute found they averaged a 9 percent cost savings and a 15 percent increase in capacity by outsourcing. <br /> <br />The Outsourcing History of India<br />The idea of outsourcing has its roots in the 'competitive advantage' theory propagated by Adam Smith in his book 'The Wealth of Nations' which was published in the year 1776. Over the years, the meaning of the term 'outsourcing' has undergone a sea-change. What started off as the shifting of manufacturing goods to countries providing cheap labor during the Industrial Revolution, has taken on a new connotation in today's scenario. In a world where information technology has become the backbone of businesses worldwide, 'outsourcing' is the process through which one company hands over part of its work to another company, making it responsible for the design and implementation of certain business process under the requirements and specifications of the outsourcing company.<br />This outsourcing process is beneficial to both the outsourcing company and the outsourcing service provider. In an outsourcing relationship, the outsourcing service provider enables the outsourcer to reduce operating costs, increase quality in non core areas of business, save on effort and increase in productivity Outsource2india (O2I), a pioneer in outsourcing since the year 1999, provides ten distinct services which cater to a wide range of industries. Outsource to O2I and get access to proficient and cost-effective services.<br />Since the onset of globalization in India during the early 1990s, successive Indian governments have pursued programs of economic reform committed to liberalization and privatization. Until the year 1994, the Indian telecom sector was under the control of the governmental. The state owned units in India enjoyed a monopoly in the market. In the year 1994, the government announced a policy under which the sector was liberalized and private participation was encouraged. The ‘New Telecom Policy’ of 1999 brought in further changes with the introduction bearliest players in the Indian outsourcing market were American Express, GE Capital and British Airways.<br />At Outsource2india, we provide call center services, data entry services, engineering services, financial services, creative services, web analytics services, healthcare services, photo editing services, software development, research and analysis services and a host of other additional services. Outsource to Outsource2india and get access to competitive services that can give your business a competitive edge!<br />The ITES or BPO industry is a sector in India that has been in existence for a little more than ten years. Despite its recent arrival on the Indian scene, the industry has grown phenomenally and has now become a very important part of the export-oriented IT software and services environment. It initially began as an activity confined to multinational companies, but today it has developed into a broad based business platform backed by leading Indian IT software and services organizations and other third party service providers.<br />The ITES/BPO market expanded its base with the entry of Indian IT companies. The ITES market of the present day is characterized by the existence of these IT giants who are able to leverage their broad skill-sets and global clientele to offer a wide spectrum of services. The spectrum of services offered by Indian companies has evolved substantially from its humble beginnings. Today, Indian companies are offering a variety of outsourced services ranging from customer care, medical transcription, medical billing services and database marketing, to Web sales/marketing, accounting, tax processing, transaction document management, telesales/telemarketing, HR hiring and biotech research.<br />Looking at the success of India's IT industry, the central government identified the ITES sector as a key contributor to the economic growth that prioritized the attraction of FDI in this segment by establishing 'Software Technology Parks' and 'Export Enterprise Zones'. Benefits like tax-holidays generally enjoyed by the software industry were also made available to the ITES/BPO sector. The National Telecom Policy (NTP) was introduced in the year 1999 and the deregulation of the telecom industry opened up national, long distance, and international connectivity to competition. The governments of various states also provided assistance to companies to overcome the recruitment, retention, and training challenges, in order to attract investments to their region.<br />The National Association of Software and Service Companies (NASSCOM) has created platforms for the dissemination of knowledge and research in the industry through its surveys and conferences. NASSCOM acts as an 'advisor, consultant and coordinating body' for the ITES/BPO industry and liaisons between the central and state government committees and the industry. The ardent advocacy of the ITES/BPO industry has led to the inclusion of call centers in the 'Business Auxiliary Services' segment, thereby ensuring exemption from service tax under the Finance Bill.<br />These measures have led to a steady inflow of investments by large foreign companies such as Reuters, for establishing large captive ITES/BPO facilities across India. Moreover, the existing ITES/BPO operations of major multi-nationals are also being ramped up to cater to the ever increasing demand for better and speedier services. Almost all of India's top ITES/BPO giants have announced some form of expansion and are in the process of hiring manpower to fill in the additional seats. India's competitive advantage lies in its ability to provide huge cost savings thereby enabling productivity gains and this has given India an edge in the global ITES/BPO marketplace. NASSCOM studies pinpoint the following factors as the major reasons behind India's success in this industry.<br />Abundant, skilled, English-speaking manpower, which is being harnessed even by ITES hubs such as Singapore and Ireland <br />High-end telecom and infrastructure which is at par with global standards <br />Strong quality orientation among players and their focus on measuring and monitoring quality targets <br />Fast turnaround times and the ability to offer 24x7 services based on the country's unique geographic location that allows for leveraging time zone differences <br />Proactive and positive policy environment which encourages ITES/BPO investments and simplifies rules and procedures <br />A friendly tax structure, which places the ITES/BPO industry on par with IT services companies. <br />Literature Review:- <br />Stress perception is highly subjective, and so the complexity of nursing practice may result in variation between nurses in their identification of sources of stress, especially when the workplace and roles of nurses are changing, as is currently occurring in the United Kingdom health service. This could have implications for measures being introduced to address problems of stress in nursing. AIMS: To identify nurses' perceptions of workplace stress, consider the potential effectiveness of initiatives to reduce distress, and identify directions for future research. METHOD: A literature search from January 1985 to April 2003 was conducted using the key words nursing, stress, distress, stress management, job satisfaction, staff turnover and coping to identify research on sources of stress in adult and child care nursing. Recent (post-1997) United Kingdom Department of Health documents and literature about the views of practitioners was also consulted. FINDINGS: Workload, leadership/management style, professional conflict and emotional cost of caring have been the main sources of distress for nurses for many years, but there is disagreement as to the magnitude of their impact.<br />Rationale:-<br />Stress, either quick or constant, can induce risky body mind disorder. Immediate disorders such as dizzy spells, anxiety attack, tension, sleeplessness nervousness can all result in chronic health problems. They may also affect our immune cardiovascular and nervous systems and lead individual to habitual addiction, which are interlinked with stress.<br />Like “stress reactions” relaxation responses and stress management techniques are some of the bodies important built in response system. As a relaxation response the body tries to get back balance in its homeostasis. Some hormones released during ‘the fight or flight’ situation prompt the body to replace the lost carbohydrates and fats, and restore the energy level. <br />Objectives:-<br /><ul><li>To measure the working environment in BPO sector.</li></ul>CHAPTER -2<br />Research Methodology:-<br /> Period of Study:-<br /> From 1stDecember 2010 to 31stDecember 2010 <br /> Sample selection:- <br /> The research is mainly based on primary data, which has been collected from different BPO employees with the use of 20 Questionnaire.<br />Statistical technique used:-<br />Different statistical techniques have been used for data presentation, analysis and Interpretation of results. For data presentation and interpretation we use Mean, table and charts.<br />Tools for Data Collection-<br /> Use of Questionnaire<br />Research Design:-<br /> Descriptive<br />Tools for Data Collection:-<br />Primary Data:-<br /> Use of Questionnaire<br />Secondary Data:-<br /> Use of Internet, Books and Business-magazines.<br /><ul><li> CHAPTER -3</li></ul>Tools for Data Analysis:-<br />Mean and Percentage<br />Results and Discussion:-<br />Table of employee<br />Q.No.Q.DescriptionYes.No.Yes %No %1Accommodation Facility51525752Transportation Facility20010003Food Facility18290104Flexible In Timing101050505Salary System 91145556Service Satisfaction17385157Job Security21810908Sleeping Disorder Problem31715859Adequate Time for Family7133565-Total 9189---Mean 10.129.88--<br />Graphical presentation:-<br /><ul><li>25% organization giving accommodation facility.
  20. 20. 100 % employee says that they are getting transportation facility.
  21. 21. 90% employee says that they are getting food facility.
  22. 22. 50%employees are not satisfied because of flexible timing and just this reason they are facing sleeping disorder problem.
  23. 23. 55%employees are not satisfied with salary system.
  24. 24. 85% employees are satisfied with services given to them.
  25. 25. 90% employees are not satisfied with the job security.
  26. 26. 65% employees are unable to spend their time with the family due to this reason they feel stressed.</li></ul>Tabulation of data in %:-<br />Q.No.Strongly Agree (%)Agree (%)Average (%) Disagree (%)Strongly Disagree (%)110751500215651550310453510045504050506535006585550705045508040401010901510502510105104035111045450012001075151302010106014545302001502525455165553550<br />Charts:-<br />Q 1 Satisfied with working environment<br />Maximum employees are satisfied with the working environment.<br />Q2 Flexible with (24x7) working hours<br />Maximum Employees are satisfied with the flexible timing.<br />Q3 Satisfied with the infrastructure <br />Maximum employees are satisfied with the infrastructure.<br />Q4 Food Facility<br />Employees are satisfied with the Food Facility.Q5 Satisfied with working conditionEmployees are satisfied with the working condition.Q6 Satisfied with transportation facilityEmployees are satisfied with the transportation facility.Q7 Flexible with working timeEmployees are not flexible with working time.Q8 Satisfied with reporting managerAverage Employees are satisfied with the reporting manager.Q9 Satisfied with salary systemEmployees are not satisfied with the salary system.Q10 Getting leaves when needMaximum employees are not satisfied with the leave system.Q11 Satisfied with the service providedEmployees are satisfied with the service.Q12 job securityEmployees are not satisfied with the job security.Q13 Suffering from sleeping disorderMaximum employees are suffering from sleeping disorder.Q14 Scolding of boss make stressedEmployees are feeling stressed when they are scolded by their boss.Q15 Spend adequate time with familyMaximum employees are not able to spend their time with their family.Q16 Proper feedback of complaintsMaximum employees are satisfied with the proper feedback of complain. <br /> Chapter -4<br />Conclusion:-<br />From the above research we conclude that BPO sector are increasing rapidly. The employees are also increasing. While working in BPO Employees are facing stress problems.<br />The main causes of stress in BPO sector are unhealthy environment, pressure of work, rude behavior of reporting manager, sleeping disorder, not getting proper feedback on time and not giving proper time to the family members. <br />We often work well under certain stress leading to increased productivity. Many times we do not know in advance and the stress periods may be sudden. The situation may not be under your control. Too much stress is harmful. We should know our level of stress that allows us to perform optimally in our life.<br />Implications:- <br /><ul><li>Employee will know about the stress and the consequences of stress on health.
  27. 27. How to handle the stress.</li></ul>Suggestions:-<br /><ul><li>Rest time should be increase.
  28. 28. Healthy working environment should be created.
  29. 29. Cooperative environment should be created between employees and reporting manager.
  30. 30. In organization flexible timing should be there.
  31. 31. Proper feedback of complains should be there.
  32. 32. Incentives and perks should be given to the employees.</li></ul>Scope for Future Work:-<br />In near future stress is not going to reduce so there is vast scope for future study in coming years.<br />Study can be done to check mental condition due to stress.<br />Study can be done to check physical condition due to stress. <br />References<br />Bibliography:-<br />Research Methodology (C.R.Khothari)<br />Stress A Brief History (cary L Cooper and Philip Dewe ) <br />A Brief History of Stress (Blackwell Brief Histories of Psychology)<br />Public People, Private Lives: Tackling Stress in Clergy Families<br />Stress at work (Jeremy Stranks)References:-<br />Prof. P.K. Mistral (Calliber college of management and science)<br />Webliography:-<br /><br /><br /><br /><br /><br /><br />Annexure:- Questionnaire <br />