Economins Bpo


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BPO and its effect on the india economy

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Economins Bpo

  1. 1. Business Process Outsourcing
  2. 2. BPO <ul><li>Business process outsourcing (BPO) is an organization entering into a contract with another organization to operate & manage one or more of its Business Processes. </li></ul><ul><li>BPO’s are divided into 2 categories: </li></ul><ul><li>Back Office Outsourcing </li></ul><ul><li>Front Office Outsourcing </li></ul>
  3. 3. Industry size <ul><li>Revenue </li></ul><ul><li>Percentage of </li></ul><ul><li>shares </li></ul><ul><li>Percentage of </li></ul><ul><li>offshore shares </li></ul>
  4. 4. BPO increasing the flexibility of organizations. <ul><li>Fee-for-service </li></ul><ul><li>Focus on its core competence </li></ul><ul><li>Increasing the speed of Business Processes </li></ul><ul><li>Finally, achieves the organizational life cycle </li></ul>
  5. 5. Challenges <ul><li>Although the above-mentioned arguments favor the view that BPO increases the flexibility of organizations, management needs to be careful with the implementation of it. </li></ul><ul><li>Some tends to change their attitudes, personalities and character on how the way they talk to other clients. Although BPO has many potential advantages there are a few stumbling blocks, which could counter these advantages. </li></ul>
  6. 6. <ul><li>Among problems, which arise in practice are: </li></ul><ul><li>A failure to meet service levels, unclear contractual issues, changing requirements and unforeseen charges. When BPO does not work out as planned the company might well experience the way in which BPO makes a company very dependent on a vendor and therefore very inflexible. </li></ul><ul><li>Consequently, these challenges need to be considered before a company decides to engage in business process outsourcing. </li></ul>
  7. 7. Threats <ul><li>A major drawback involved, in Business Process Outsourcing are the risks. Outsourcing of an Information System, </li></ul><ul><li>Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage outsourcing in a structured way, maximizing positive outcome, and minimizing risks and avoiding any threats </li></ul>
  8. 8. Different Types of Services Being Offered By BPO's:
  9. 9. Contd…. <ul><li>Customer Support Services </li></ul><ul><li>Technical Support Services </li></ul><ul><li>Telemarketing Services </li></ul><ul><li>Employee IT Help-desk Services </li></ul><ul><li>Insurance Processing </li></ul>
  10. 10. Contd…. <ul><li>Data Entry Services / Data Processing Services </li></ul><ul><li>Data Conversion Services </li></ul><ul><li>Book Keeping and Accounting Services </li></ul><ul><li>Form Processing Services: </li></ul><ul><li>Internet / Online / Web Research: </li></ul>
  11. 11. Challenges for a HR Professional in BPO <ul><li>Brand equity </li></ul><ul><li>Standard pre-job training </li></ul><ul><li>Benchmarks </li></ul><ul><li>Customer </li></ul><ul><li>Lack of focused training and certifications </li></ul>
  12. 12. Employee Benefits Provided by BPO Companies <ul><li>Provident Fund </li></ul><ul><li>Gratuity </li></ul><ul><li>Group Medical Insurance Scheme </li></ul><ul><li>Personal Accident Insurance Scheme </li></ul><ul><li>Subsidized Food & Transportation </li></ul>
  13. 13. <ul><li>Recreation Cafeteria ATM Facilities </li></ul><ul><li>Loans </li></ul><ul><li>Educational Benefits </li></ul><ul><li>Performance based Incentives </li></ul><ul><li>Cell Phones & Laptops </li></ul><ul><li>Personal Health Care </li></ul><ul><li>Company Accommodation </li></ul><ul><li>Flex Time </li></ul>Contd….
  14. 14. Contd…. <ul><li>Regular Get together and other cultural programs </li></ul><ul><li>Wedding Day Gift </li></ul><ul><li>Employee Referral Scheme </li></ul><ul><li>Paid Days Off </li></ul><ul><li>Maternity Leave </li></ul><ul><li>Flexible Salary Benefits </li></ul>
  15. 15. Why people prefer to join BPO's?
  16. 16. <ul><li>Find nothing better to do. </li></ul><ul><li>Education level doesn't matter </li></ul><ul><li>Good work environment </li></ul><ul><li>Good Benefits </li></ul><ul><li>Flexibility of time </li></ul><ul><li>Attractive life style </li></ul><ul><li>Transport facility </li></ul><ul><li>Did not get a better job. </li></ul>
  17. 17. Why people leave BPO's? <ul><li>No growth opportunity/lack of promotion. </li></ul><ul><li>For higher Salary. </li></ul><ul><li>Misguidance by the company. </li></ul><ul><li>For Higher education. </li></ul><ul><li>Policies and procedures are not conducive. </li></ul><ul><li>No personal life. </li></ul><ul><li>Physical strains. </li></ul><ul><li>Uneasy relationship with peers or managers </li></ul>
  18. 18. Top 15 BPO companies in India <ul><li>WNS Group </li></ul><ul><li>Wipro Spectramind </li></ul><ul><li>Daksh e-Services </li></ul><ul><li>Convergys </li></ul><ul><li>HCL Technologies </li></ul><ul><li>Zenta Technologies </li></ul><ul><li>ICICI Onesource </li></ul><ul><li>Mphasis BPO Services </li></ul><ul><li>EXL Services </li></ul><ul><li>Tracmail Group </li></ul><ul><li>GTL Ltd. </li></ul><ul><li>vCustomer </li></ul><ul><li>Hinduja TMT ltd. </li></ul><ul><li>24/7 Customer </li></ul><ul><li>Sutherland </li></ul><ul><li>Technologies </li></ul>
  19. 19. The Top Rankers
  20. 20. Outsourcing BPO - The Benefits <ul><li>This is the crux of the pro-outsourcing argument. Outsourcing BPO Services to India offers benefits not only in terms of cost reduction, but also in terms of increased productivity and quality. Companies along with their customers benefit since they can access some of the best talent and expertise in the industry at lower rates. </li></ul>
  21. 21. <ul><li>Outsourcing BPO to India - The Cost Savings </li></ul><ul><li>Outsourcing BPO to India - Creates Jobs </li></ul><ul><li>Outsourcing BPO to India - The Value Addition </li></ul><ul><li>Outsourcing BPO to India - The Long Term Benefits </li></ul>Some Other Facts
  22. 22. Outsourcing BPO Services to Outsource to India
  23. 23. BPO Role in India’s Economic Growth <ul><li>1.2% to 5.4%. </li></ul><ul><li>1997-98: US$ 4.8 billion </li></ul><ul><li>2006-07: US$ 47.8 billion </li></ul><ul><li>Current rate of growth is 28% </li></ul><ul><li>Employment to be generated -1.6 million </li></ul>
  24. 25. The driving forces for the increase in foreign investments BPO’s in India are: <ul><li>Emphasis on quality services </li></ul><ul><li>Skilled sets and workers </li></ul><ul><li>Cost effectiveness </li></ul><ul><li>Quality products </li></ul><ul><li>English speaking manpower </li></ul>
  25. 26. Growth of BPO’s over Years
  26. 27. Newspaper Articles