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Operating Cost Analysis of BPO Sector
Pune Institute of Business Management
Created By
Dipanway Bhabuk
BPO SECTOR IN INDIA
• India is currently the number one destination for business process outsourcing, as most companies in...
PURPOSE
WHY
Operating
cost
analysis
WHERE
To find out how much cost paid by the
company for operating their business
It is...
Operating Cost
What it is:
An operating expense is a day to day expenses incurred in the normal course of business. These
...
Operating Cost
Analysis
(Tata
Consultancy
Service (BPO)
Revenue (2014) 29078.92 (2013) 26251.87 (2012) 25874.25
Software c...
Operating Ratio of TCS
Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales
Operating Cost= 7042.71
Net sales = 24658.8...
Operating Cost
Analysis
(Firstsource
Solutions Ltd.)
Revenue (2014) 18015.58 (2013) 16887.79 (2012) 15824.65
Software cost...
Operating Ratio of Firstsource Solutions
Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales
Operating Cost= 5818.82
N...
Operating Cost
Analysis
(Genpact)
(BPO)
Revenue (2014) 31056.89 (2013) 30056.54 (2012) 28658.74
Software cost 662.23 682.2...
Operating Ratio of Genpact International
Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales
Operating Cost= 7721.92
N...
Operating Cost
Analysis
(EXL
Solutions)
Software cost (2014) 268.23 (2013) 262.21 (2012) 158.25
Software Licenses 156.24 1...
Operating Ratio of EXL Solutions
Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales
Operating Cost= 3816.87
Net sales...
Thanking You
Presented By
Dipanway Bhabuk
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Operating cost analysis of BPO Sector

Operating Cost Analysis

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Operating cost analysis of BPO Sector

  1. 1. Operating Cost Analysis of BPO Sector Pune Institute of Business Management Created By Dipanway Bhabuk
  2. 2. BPO SECTOR IN INDIA • India is currently the number one destination for business process outsourcing, as most companies in the US and UK outsource IT-related business processes to Indian service providers. • In India, Business Process Outsourcing (BPO) is the fastest growing segment of the ITES (Information Technology Enabled Services) industry. • Factors such as economy of scale, business risk mitigation, cost advantage, utilization improvement and superior competency have all lead to the growth of the Indian BPO industry. • India is now the world's favored market for BPO companies, among other competitors, such as, Australia, China, Philippines and Ireland. BPO’s Role in India’s GDP BPO Role in India’s Economic Growth has been tremendous, especially in the last few years, when the demand for outsourcing work to India has been significant among western companies. • The growth in the contribution of BPOs to Gross Domestic Product has shown a steady rise from 1.2% to 5.4%. • Current rate of growth is 28% in BPO sector.
  3. 3. PURPOSE WHY Operating cost analysis WHERE To find out how much cost paid by the company for operating their business It is used in financial analysis of a company. The information's are provided by the financial statement of the company To measure company’s profitability. It shows company’s overall efficiency and performance
  4. 4. Operating Cost What it is: An operating expense is a day to day expenses incurred in the normal course of business. These expenses appear in income statement. Operating Expenses are costs associated with running a business’s core operations on a daily basis. For a commercial enterprise, operating costs fall into two broad categories: Fixed cost: These are the same whether the operation is closed or running at 100% capacity. Fixed costs include items such as the rent of the building. These generally have to be apid regardless of what state the business is in. Variable Costs: Variable costs include indirect overhead costs such as cell phone services, computer Supplies, credit card processing, electrical use, Express mail, office products etc.
  5. 5. Operating Cost Analysis (Tata Consultancy Service (BPO) Revenue (2014) 29078.92 (2013) 26251.87 (2012) 25874.25 Software cost 562.23 782.21 658.25 Software Licenses 464.24 423.21 440.02 Rent 720.69 664.35 251.25 Rates and Taxes 53.21 45.21 21.64 Services Render 108.21 155.21 148.21 Car & other hire charges 403.52 314.51 318.21 Legal & Professional fee 549.99 442.91 441.29 Connectivity Charges 347.54 321.25 365.21 Communication Expen. 685.01 440.89 600.25 Maintenance & Upkeep 560.63 486.32 540.54 Training Expenses 181.99 180.21 112.65 Electricity Expenses 321.54 300.25 287.85 Travel & convenience 521.28 511.35 468.87 Computer Expenses 221.54 194.32 121.68 Employee Salary 1106.13 993.54 9651.25 Bank Charges 98.32 90.25 90.56 Statutory Audit 11.54 10.84 9.07 Seminar Expenses 11.21 7.25 9.54 Total 7042.71 6580.74 6121.25
  6. 6. Operating Ratio of TCS Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales Operating Cost= 7042.71 Net sales = 24658.87 7042.71*100/24658.87 = 28.56 Operating Ratio = 28.56 7042.71 6580.74 6121.25 5600 5800 6000 6200 6400 6600 6800 7000 7200 2014 2013 2012 Operating Cost
  7. 7. Operating Cost Analysis (Firstsource Solutions Ltd.) Revenue (2014) 18015.58 (2013) 16887.79 (2012) 15824.65 Software cost 468.23 382.21 458.25 Software Licenses 356.24 423.21 321.02 Rent 1157.69 956.35 865.25 Rates and Taxes 53.21 45.21 21.64 Services Render 94.21 83.21 86.21 Car & other hire charges 265.52 292.51 245.21 Legal & Professional fee 320.99 290.91 231.29 Connectivity Charges 247.54 221.25 191.21 Communication Expen. 411.01 342.89 311.25 Maintenance & Upkeep 460.63 365.32 319.54 Training Expenses 91.99 79.21 82.65 Electricity Expenses 121.54 111.25 95.85 Travel & convenience 421.28 411.35 418.87 Computer Expenses 321.54 301.32 321.68 Employee Salary 906.13 745.54 701.25 Bank Charges 98.32 90.25 90.56 Statutory Audit 11.54 10.84 9.07 Seminar Expenses 11.21 7.25 9.54 Total 5818.82 5160.08 4780.34
  8. 8. Operating Ratio of Firstsource Solutions Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales Operating Cost= 5818.82 Net sales = 14874.96 5818.82 *100/14874.96 = 36.56 Operating Ratio = 36.56 0 1000 2000 3000 4000 5000 6000 7000 2014 2013 2012 Operating Cost
  9. 9. Operating Cost Analysis (Genpact) (BPO) Revenue (2014) 31056.89 (2013) 30056.54 (2012) 28658.74 Software cost 662.23 682.21 658.25 Software Licenses 564.24 523.21 550.02 Rent 720.69 684.35 351.25 Rates and Taxes 93.21 65.21 61.64 Services Render 208.21 245.21 248.21 Car & other hire charges 503.52 314.51 318.21 Legal & Professional fee 449.99 442.91 441.29 Connectivity Charges 397.54 381.25 365.21 Communication Expen. 685.01 440.89 421.25 Maintenance & Upkeep 560.63 486.32 440.54 Training Expenses 281.99 180.21 112.65 Electricity Expenses 391.54 321.25 319.85 Travel & convenience 621.28 511.35 468.87 Computer Expenses 221.54 194.32 121.68 Employee Salary 1196.13 993.54 951.25 Bank Charges 128.32 90.25 90.56 Statutory Audit 16.54 14.84 11.07 Seminar Expenses 19.21 6.25 3.54 Total 7721.92 6578.08 5036.24
  10. 10. Operating Ratio of Genpact International Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales Operating Cost= 7721.92 Net sales = 27985.96 7721.92 *100/ 27985.96 = 27.86 Operating Ratio = 27.86 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 2014 2013 2012 Operating Cost
  11. 11. Operating Cost Analysis (EXL Solutions) Software cost (2014) 268.23 (2013) 262.21 (2012) 158.25 Software Licenses 156.24 123.21 121.02 Rent 557.45 456.75 465.25 Rates and Taxes 23.21 13.21 11.64 Services Render 64.21 62.21 42.21 Car & other hire charges 154.25 132.02 112.02 Legal & Professional fee 225.95 211.35 135.21 Connectivity Charges 147.52 113.21 116.87 Communication Expen. 311.54 265.21 245.25 Maintenance & Upkeep 360.587 311.87 265.84 Training Expenses 41.25 36.21 22.45 Electricity Expenses 96.25 84.25 67.87 Travel & convenience 356.87 311.85 296.25 Computer Expenses 265.87 211.87 192.52 Employee Salary 703.85 585.25 540.85 Bank Charges 62.58 58.87 48.21 Statutory Audit 11.54 10.84 7.25 Seminar Expenses 9.25 8.54 8.12 Total 3816.87 3258.15 2857.54 Operating Cost Ratio
  12. 12. Operating Ratio of EXL Solutions Formula: (Direct cost+ Indirect Cost) * 100 / Net Sales Operating Cost= 3816.87 Net sales = 11548.54 3816.87 *100/ 11548.54 = 33.89 Operating Ratio = 33.89 0 500 1000 1500 2000 2500 3000 3500 4000 4500 2014 2013 2012 Operating Cost
  13. 13. Thanking You Presented By Dipanway Bhabuk

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