The document discusses several key aspects of the business process outsourcing (BPO) industry in India. It notes that back office services make up the largest portion of the Indian BPO market. It also discusses some of the major challenges for BPO firms, including high attrition rates as employees leave for other opportunities, and the need to provide training to handle foreign clients and deal with cultural differences. Additionally, it emphasizes that frontline employees play a crucial role in customer satisfaction due to the psychological factors important for interacting with clients.

1. G VENKATESH

2.  India’s service growth engine
 Back office services – biggest chunk of the
Indian BPO market

3.  Players GLOBAL BPO MAJORS
Convergys, Teletech
Captive BPO
General Electric
American Express
British Airways
Indian BPO start
ups
Taslima
Corporation
EXL
Daksh
Spectramind
Indian IT Service
Companies
Progeon (Infosys)
Intelenet (TCS)
Msource (Mphasis)
Broad-based
global service
companies
PWC
Accenture
EDS

4.  Attrition.
 Many employees leave the BPO jobs and go
for further studies.
 Others get bored of monotonous routine.
 BPO firms have to work around this.
 A BPO near Gurgaon sponsored housing for its
employees.
 Other facilities – a good compensation
package, pick and drop facility, training,
opportunity to pursue Executive MBA.

5.  Government looking at BPO industry as
national priority for generating employment
in tier 2 cities and towns in India.
 Aditya Birla group – Trans works Information
 ICICI One Source
Wipro- Spectramind
 These are examples of acquisitions (in
organic growth)
 Indian workforce talented, cheap but need
training to handle foreign clients.

6.  BPO – Business Process Outsourcing
 ITES – Information Technology enabled
services
 Intense customer focus
 Performance management :
 Customer Satisfaction
 Employee Satisfaction
 Employee Productivity
 Cost Control
 Strong Operations involvement
 Adapatability of process

8. BPO

9.  IT companies have used cross-selling strategy
to sell BPO services to their clients.
 Quality of service
 Turnaround time
 Innovation
 Road shows organised to counter US
opposition

10.  NOT MUCH RELEVANT IN BPO
 TELECOM INFRASTRUCTURE IMPORTANT
 REMOTE SERVICES TO CLIENTS THROUGH
TELECOM LINKS

11.  SKILLED MANPOWER & WORLD CLASS
QUALITY AT LOW PRICES.
But do manpower need training to handle
cross cultural issues ?
 TAX BENEFITS BY GOVERNMENT – COSTS
LOWERED.

12.  Cross selling by IT companies, offer discounts
to valuable customer accounts
 Even captive BPOs are attracting customers
of their parent organisation.

13.  Align HR Strategy with the firm’s business
strategy
 Clients want to look at HR strategy plans
 Managing attrition – measure employee
satisfaction, compensation benchmarking, focus
on internal communication and quality of work
environment.
 Adoption of CAPABILITY MATURITY MODEL of
software services to BPO industry.
 Home Work : Yaseen/Nabeel : what is capability
maturity model in software industry ?

14.  PROCESSES ROBUST TO HANDLE REGULATORY
REQUIREMENTS OF DIFFERENT COUNTRIES
 KNOW REGULATIONS WITHIN INDIA TO
MANAGE PROCESSES FOR DIFFERENT
VERTICALS
 SEAMLESS INTEGRATION OF TECHNOLOGY &
PROCESSES
 TRANSACTION PROCESSING SYSTEM
 DATA WAREHOUSING
 RESOLVE CUSTOMER COMPLAINTS
 USE LEARNINGS FROM COMPLAINTS TO TWEAK
THE PROCESS

15.  REQUIRED ONLY DURING MARKETING
 FOR THE CLIENT IT IS LARGELY IRRELEVANT
(WHY ?) ( HOW IS PRODUCTION &
CONSUMPTION HAPPENING ?) (PHONE ?)
• BUT IF THERE ARE VIDEO CONFERENCES,
THEN A GOOD CONFERENCE HALL.
• AUDIO AND TELECOM INFRASTRUCTURE
IMPORTANT IN BPO SECTOR

16.  DEFINED AS OUTPUT / INPUT.
 HOW CAN WE GET MORE OUTPUT FROM SAME
INPUT
 LOW COST SOLUTIONS
 TO ENSURE PRODUCTIVITY OF PHYSICAL
ASSETS, BPOs RUN IN SHIFTS.
 FOCUS ON MAXIMISATION OF REVENUE
THROUGH GREATEST TURNOVER & USAGE.

17.  IT IS THE OPTIMAL UTILISATION OF HUMAN
CAPITAL WHICH DETERMINES PRODUCTIVITY.
 FOREIGN COUNTRIES NEED TO INVEST MORE
IN TECHNOLOGY BECAUSE LABOUR IS
EXPENSIVE. INDIA, IT IS RELATIVELY CHEAP.
 LINKING CUSTOMER SATISFACTION AND
PRODUCTIVITY AND SERVICE LEVELS IS STILL
COMPLEX.
 REGULAR CUSTOMER SATISFACTION SURVEYS
 REGULAR EMPLOYEE SATISFACTION SURVEYS

18.  TRAINING IMPORTANT
 HOW TO COMMUNICATE EFFECTIVELY
 TELEPHONE ETIQUETTE
 IMPROVE LISTENING SKILLS
 BUT, IS THIS SUFFICIENT ?
 BUT, IS THIS SUFFICIENT ?
 WHAT IS NEEDED IS –
 EXPOSE PEOPLE TO DIFFERENT CULTURES THROUGH TRAINING
 EMPOWER PEOPLE TO TAKE DECISIONS
 USE SLAs to ENSURE THAT RESPONSE TIME IS REASONABLE.
 IF THE RESPONSE IS GOING TO BE DELAYED, INFORM THE
CUSTOMER THROUGH MAIL OR PHONE.
 EMPLOYEES NEED TO BE TAUGHT ABOUT NEED FOR GREATER
FOCUS.

19.  DO ALL OF YOU AGREE THAT FRONTLINE
EMPLOYEES IN BPO SECTOR PLAY A CRUCIAL
ROLE IN CUSTOMER SATISFACTION ?
 WHY ARE PSYCHOLOGICAL FACTORS SO
IMPORTANT WHILE RECRUITING FRONT LINE
EMPLOYEES ?