Business process outsourcing (BPO) involves contracting an external organization to manage business processes. BPO can increase flexibility by allowing companies to focus on their core competencies. However, there are challenges to consider such as unclear contracts, changing requirements, and vendor dependence reducing flexibility. Risks must also be managed to achieve benefits from outsourcing information systems.

1. Business Process Outsourcing

2. BPO Business process outsourcing (BPO) is an organization entering into a contract with another organization to operate & manage one or more of its Business Processes. BPO’s are divided into 2 categories: Back Office Outsourcing Front Office Outsourcing

3. Industry size Revenue Percentage of shares Percentage of offshore shares

4. BPO increasing the flexibility of organizations. Fee-for-service Focus on its core competence Increasing the speed of Business Processes Finally, achieves the organizational life cycle

5. Challenges 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. 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.

6. Among problems, which arise in practice are: 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. Consequently, these challenges need to be considered before a company decides to engage in business process outsourcing.

7. Threats A major drawback involved, in Business Process Outsourcing are the risks. Outsourcing of an Information System, 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

8. Different Types of Services Being Offered By BPO's:

9. Contd…. Customer Support Services Technical Support Services Telemarketing Services Employee IT Help-desk Services Insurance Processing

10. Contd…. Data Entry Services / Data Processing Services Data Conversion Services Book Keeping and Accounting Services Form Processing Services: Internet / Online / Web Research:

11. Challenges for a HR Professional in BPO Brand equity Standard pre-job training Benchmarks Customer Lack of focused training and certifications

12. Employee Benefits Provided by BPO Companies Provident Fund Gratuity Group Medical Insurance Scheme Personal Accident Insurance Scheme Subsidized Food & Transportation

13. Recreation Cafeteria ATM Facilities Loans Educational Benefits Performance based Incentives Cell Phones & Laptops Personal Health Care Company Accommodation Flex Time Contd….

14. Contd…. Regular Get together and other cultural programs Wedding Day Gift Employee Referral Scheme Paid Days Off Maternity Leave Flexible Salary Benefits

15. Why people prefer to join BPO's?

16. Find nothing better to do. Education level doesn't matter Good work environment Good Benefits Flexibility of time Attractive life style Transport facility Did not get a better job.

17. Why people leave BPO's? No growth opportunity/lack of promotion. For higher Salary. Misguidance by the company. For Higher education. Policies and procedures are not conducive. No personal life. Physical strains. Uneasy relationship with peers or managers

18. Top 15 BPO companies in India WNS Group Wipro Spectramind Daksh e-Services Convergys HCL Technologies Zenta Technologies ICICI Onesource Mphasis BPO Services EXL Services Tracmail Group GTL Ltd. vCustomer Hinduja TMT ltd. 24/7 Customer Sutherland Technologies

19. The Top Rankers

20. Outsourcing BPO - The Benefits 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.

21. Outsourcing BPO to India - The Cost Savings Outsourcing BPO to India - Creates Jobs Outsourcing BPO to India - The Value Addition Outsourcing BPO to India - The Long Term Benefits Some Other Facts

22. Outsourcing BPO Services to Outsource to India

23. BPO Role in India’s Economic Growth 1.2% to 5.4%. 1997-98: US$ 4.8 billion 2006-07: US$ 47.8 billion Current rate of growth is 28% Employment to be generated -1.6 million

25. The driving forces for the increase in foreign investments BPO’s in India are: Emphasis on quality services Skilled sets and workers Cost effectiveness Quality products English speaking manpower

26. Growth of BPO’s over Years

27. Newspaper Articles