LOGO Created by Vishnu Kumawat Shri Ram College of Commerce B.Com (h), I year Roll No. 667, (E-25)
Contents1 What is BPO2 BPO Categories3 Key Terms4 Different types of BPO Services Business Process Outsourcing
What is BPO Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) such as payroll, customer service, accounting, data recording and much more to a third-party service provider. Business Process Outsourcing
Why does a company outsource ?Not all companies, especially the smaller one, have the cost expertise needed tomanage a complex network of the activity they need. For eg. many bank don’thave expertise to manage a complex network of ATMs.Outsourcing enables an enterprises to concentrate its time and efforts on its keyfunction.Companies need not invest money in creating and maintaining system non coreactivities.When the predictability of the process/service is not important.When there is limited opportunity for the firm to distinguish itself competitivelythrough a particular process/service.
BPO CategoriesIt is often divided into two categories : Back Office Outsourcing which includes internal business functions such as billing or purchasing. Front Office Outsourcing which includes customer- related services such as marketing or tech support.
Key Terms of BPO BPO that is contracted outside a companys own country. BPO that is contracted with the companys own country. BPO that is contracted to a companys neighboring country.
BPO Service Examples 1. Customer Support Services››› Customers calling to check on their order status. 1››› Customers calling to check for information on products and services.››› Customers calling to verify their account status.››› Customers calling to check their reservation status etc. 2. Technical Support Services››› Customers calling to resolve a problem with their home PC.››› Customers calling to understand how to dial up to their ISP.››› Customers calling with a problem with their software or hardware.››› Customers calling to resolve other problems with their products.
BPO Service Examples 3. Telemarketing Services››› Outbound calling to sell wireless services for a telecom provider.››› Outbound calling to1retail households to sell leisure holidays.››› outbound calling to existing customers to sell a new rate card for a mobile service provider.››› outbound calling to sell credit or debit cards etc. 4. Employee IT Help-desk Services››› System problem resolutions related to desktop››› Notebooks, OS, connectivity etc.››› Office productivity tools support including browsers and mail.››› New service requests.››› IT operational issues.››› product usage queries etc.
BPO Service Examples 5. Insurance Processing››› New Business / Promotion: 1Inbound/outbound sales, Initial Setup, Case Management, Underwriting,Risk assessment, Policy issuance etc.››› Policy Maintenance / Management:Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification,Surrender Audits Accounts Receivable, Accounting, Claim Overpayment,Customer care service via voice/email etc. 6. Data Entry Services / Data Processing Services››› Data entry from Paper/Books with highest accuracy and quick.››› Data entry from Image file in any format .››› Business Transaction Data entry like sales / purchase / payroll.››› Data entry of E-Books / Electronic Books.››› Receipt and Bill Data Entry etc.
BPO Service Examples 7. Book Keeping and Accounting Services››› General Ledger 1››› Accounts Receivables and Accounts Payable››› Financial Statements››› Bank Reconciliation››› Assets / Equipment Ledgers etc. 8. Internet / Online / Web Research››› Internet Search.››› Product Research & Market Research.››› Survey, Analysis.››› Web and Mailing list research etc.
BPO Almost EverywhereBPO appears to be an all inclusive term that covers everything:››› Medical transcription››› Animation››› Power point presentations››› Equity research››› Contract research››› Call centres››› Collections››› IT Help desk››› Internet chat››› Customer service››› Transaction processing››› Travel bookings››› Accounting››› etc. etc. etc.
BPO- Industry SegmentEveryone industry is into outsourcing:››› Banks››› Insurance››› Asset management››› Manufacturing››› Healthcare and Pharma››› IT››› Telecom››› Travel agencies››› Airlines››› Governments
Advantages Disadvantages•Productivity Improvements •Knowledge Disappears and•Cost Savings is Transferred to the•Improved HR Outsourcing Partner•Focus on Core Business •Poor Quality ControlCompetency •Restoring Operations is•Improve Service Level Complicated•Reengineer Business •Lack of Loyal EmployeesProcess •Reduction in Strategic• Access to world class Alignmentcapabilities •Political and religious•Higher level of service with instabilitylower cost
Outsourcing in India BPO ITES KPOBusiness Process Information technology Knowledge ProcessOutsourcing Enabled service Outsourcing
BPO in IndiaBusiness process outsourcing is progressingfast in India.As of 2008, around 0.7 million people workin outsourcing sector.During the years 2003-04, the ITES-BPOsegment achieved a 54 percent growth inrevenues as compared to the previousyears.The number of Indians working for the ITES
ITES, Information Technology Enabled ServiceITES, Information Technology Enabled Service, is definprocesses that can be enabled with information technAreas like finance, HR, administration, health care, telmanufacturing etc. Armed with technology and manpoprovided from e-enabled locations. This radically reservice standards. In short, this Internet service provB2B e-commerce solutions.The main objectives of ITES are :» Enabling business strategy» Achieving an organizations business goals
KPO,Knowledge Process OutsourcingKnowledge process outsourcing (KPO) is a form of outsourcingrelated and information-related work is carried out by workKPO services include the following:>> Investment research services (equity, fixed income and credit, and quantitative research)>> Business research services>> Data Analytics>> Market research services>> Valuation and fairness opinions>> Legal process outsourcing>> Patent research services>> Business operations support, analytics & management>> Editorial process outsourcing
Current Top Indian RankersGenpact ConvergysWNS ZentaWipro BPO MphasisHCL Technologies BPO TracmailICICI OneSource GTL Ltd.IBM Daksh VCustomerProgeon (Infosys) HTMTAegis BPO Service 24/7 CustomerEXL Service Holding Sutherland Technologies
Why people prefer Join and Leave BPOIn general a person with any graduation can join any of the BPO. Some BPOs liketo take people with MBA but then again the specialization are of an individual hardmakes any difference. Again, this is the industry, where there is no reference checkand very often people dont even specify there exact age. Lets me share with yousome of the reasons as why people prefer to join and leave a BPO: Why People Prefer Why People Leave 1. No growth opportunity/lack 1. Did not get a better job. of promotion 2. Find nothing better to do. 2. For higher Salary 3. Education level doesnt 3. For Higher education matter 4. Misguidance by the 4. Good work environment company 5. Good Benefits 5. Policies and procedures 6. Flexibility of time are not conducive 7. Attractive life style 6. No personal life 7. Physical strains 8. Uneasy relationship with peers or managers
SWOT Analysis for BPO in IndiaS Strengths W Weakness •Large no. of talented graduates •Scarce foreign language skills •Affordable and quality education other than English. as compared to developed •Lack of customer service culture countries •Expensive and poor quality •English language benefit telecom infrastructure •Strong customer base of well •Poor electricity supply known companies •Cultural differences •Powerful venture capital interest in investing in growth opportunityO Opportunities T Threats •Horizontal and vertical expansion •High Billing rates of existing customer base into new markets •Political instability •Time zone difference between •Indias competitors in Eastern India and target markets Europe, Latin America and the Asia