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India – An Outsourcing Hub BY TANVIR SHAIKH

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India – An Outsourcing Hub BY TANVIR SHAIKH

  1. 1. INDIA – AN OUTSOURCING HUB<br />
  2. 2. BPO<br />
  3. 3. MEANING OF OUTSOURCING<br />Outsourcing is usually the term used when a company takes a part of its business and gives that part to another company.<br />
  4. 4. INDIA OUTSOURCING CHRONOLOGY<br />1995 - Pramod Bhasin and Nigel Andrews of GE make back office operations in India. GE asks Anders on Consulting to explore the market for third party vendors<br />. <br />1996 - British Airways sets up a 30 people back office in Mumbai to undertake data entry work.<br />1997 -GE flags off BPO operations in Gudgeon through subsidiary GE Capital International Services (Gecis)S<br />
  5. 5. 1999 - Sanjeeev Agarwal, backed by $3 million venture funding from CDC Capital Partners, sets up Daksh eServices in Gurgaon and begins offering email support service. <br /> 2000 - Raman Roy quits Gecis to set up Spectra mind in Gurgaon. Customer Asset and 24/7 Customer setup shop in Bangalore.<br />
  6. 6. 2001 – Dell, HSBC, standard chartered, HP, Lead the boom.2002 – Private equity investors, IT services and large corporate houses rush in to third party .2003 – Third party firms begin to scale up revenues and diversify services. 2004 – WNS becomes first Indian third party BPO firm to hit $100 million revenues .IBM buys daksh for $130 million.<br />
  7. 7. 2005 onwards – Genpact,1-one source, WNS, Convergys, Hewitt, integrated IT and BPO services. Infosys, Wipro, IBM Accenture etc . <br />
  8. 8. BPO INDIA<br />
  9. 9. BPO- INDIA<br />India holds a 70% market share in the world wide BPO market.<br />More than half of fortune 500 companies outsourced to India.<br />2007-08: $52 billion (growth of 28%).<br />2008-09*: $62-64 billion<br />2010*: $110 billion<br />Contribute 1% to the GDP growth.<br />
  10. 10. WHY INDIA<br />Large pool of highly qualified and English speaking force.<br />Low cost of labor.<br />Appropriate time zone difference with the west. <br />Global business leaders are bullish on India&apos;s talent.<br />
  11. 11. Why India<br />Educated employs.<br />Large number of qualified workers Proven to be the best in the IT and computer software fields .<br />Produce around 100,000 engineers annually .<br />Infrastructure<br /> Telecom facility.<br /> Power sector.<br />
  12. 12. Why India<br />Government.<br />Realize potential for economic development.<br /> Favorable policies have turned India in to BPO/IT hub.<br /> e.g.- Investment promotion, Telecom policy, IT act. <br />
  13. 13. Why India<br />Global business leaders are bullish on India&apos;s talent.<br />
  14. 14. JACK WELCH (GE) BILL GATES (MICROSOFT)<br />
  15. 15. JOHN CHAMBER(CISCO SYSTEM)MITCHEAL DELL(DELL COMP.) <br />
  16. 16. LAWRENCE .J.ELLISON(Oracle corp.)<br />
  17. 17. Jack Welch-Atruly global co. is one that uses intellect and resource of every corner of world. India is a developed country as far as intellect capital and human resource is concerned.Bill gates – India is a emerging power in IT sector. India is handling most sophisticated projects in the world .I am impressed with the talent we have in our India.John chamber – We are expanding our presence in India to take advantage of the ample research and development talent available.<br />
  18. 18. Michael dell – India can become a major part of dells operation and a major source of human capital that dells take on as a company and we are taking further opportunities to take advantage of skilled labor.Lawrence j. Ellison – I love Indian food and only a few minutes away from my house in redwood shore in Gaylord where I eat naan, dalmakhni and baingan bharta.I am deeply committed to the Indian venture where we have 2000 employs which will scale up to 4000.<br />
  19. 19. Leading competitors<br />Philippines<br /> Mexico<br /> Canada<br /> China<br /> Ireland. <br />
  20. 20. Outsourcing cost per hour.<br />U.S. - $27<br />Canada - $22<br />Mexico- $18<br />Carrabien- $16<br />Philippines - $15<br />India - $12<br />67-72% of costs to call centers operating in the US/UK is directly linked to man power costs. India only spends 33-40% of costs on man power. This includes training, benefits and other incentives for labor. <br />
  21. 21. Sectors in outsourcing<br />
  22. 22. Financial service o/s.<br />Financial services outsourcing is fast growing as the third largest segment in the outsourcing market after sales and software outsourcing. According to a recent estimate <br />financial services outsourcing will grow at the rate of 10% every year to reach a whopping $40 billion in the year 2007. This is the reason why business process outsourcing and accounting outsourcing in particular are seen to be budding sectors.<br />
  23. 23. Insurance-Emerging sector in o/s<br />Lets say a health insurance company in Texas sells a insurance policy, it is likely that the back office paper work is processed in Pune or Hyderabad.� India BPO has emerged as the leading companies for back office tasks required by the US insurance companies. They are able to cater to any case, be it casualty insurance, life insurance. <br />
  24. 24. Logistic o/s<br />Logistics is a part of supply chain process that involves material management and physical distribution processes. Logistics outsourcing is the process <br />of using the expertise of a third party in order to perform in-house logistics functions. The best example of logistics outsourcing can be seen in terms of EDI outsourcing that involves linking the supplier, logistic provider and the vendors together by an EDI system.<br />
  25. 25. IT o/s<br />IT outsourcing is the fastest growing sector in the outsourcing arena and has given rise to many success stories. But not all IT outsourcing contracts are successful. <br />Some of them have met will huge losses and many have failed completely. The reason? Lack of knowledge and improper planning.<br />
  26. 26. Technology o/s<br />Technology outsourcing is the fastest growing sector in the outsourcing market and includes everything from software development outsourcing to technical support and <br />web designing outsourcing. As far as technology outsourcing is concerned India stands out as one of the most favorite destinations for companies in developed nations.<br />
  27. 27. Health care o/s.<br />Today companies in the developed countries delegate a range of health care outsourcing services like underwriting, medical transcription, enrollment services, claims adjudication, inbound and outbound customer care, coding, charge entry, payment posting and receivables management to offshore destinations like India, China, Mexico and Philippines<br />
  28. 28. TOP 15 BPO<br />
  29. 29. <ul><li>EXL Service Holdings
  30. 30. 24/7 Customer
  31. 31. MphasiS BPO
  32. 32. Intel net Global Services
  33. 33. GTL
  34. 34. TCS BPO
  35. 35. Transforms
  36. 36. Genpact
  37. 37. WNS
  38. 38. Wipro BPO
  39. 39. HCL BPO Service
  40. 40. ICICI OneSource
  41. 41. IBM Daksh
  42. 42. Progeon
  43. 43. Aegis BPO Services</li></li></ul><li>News at glance<br />Infosys looks to china o/s for market growth.<br />Pharma o/s to cross $2.3bn by 2010.<br />BPOs focus on $200 bn European market<br />TechM bets on Satyam for BPO gains <br />Infosys BPO inks alliance with Mortgage Flex Systems <br />BPO companies free of labour laws for 2 years<br />
  44. 44. Tech Mahindra wins $400mn telecom IT deal.<br />TCS BPO sees 45-50% annual growth through new deals.<br />
  45. 45. BPO NOT AN OPTION <br /> BUT A BUSINESS REALITY<br />
  46. 46. Thank you<br />Subhanshu sharma.<br />Vinay salunke.<br />Ritesh sharma.<br />

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