This document provides an overview of the business process outsourcing (BPO) sector in India. It discusses what BPO is and the types of services commonly outsourced. India has become a major global BPO hub due to its large skilled workforce and low costs. Key Indian cities like Bangalore have emerged as major outsourcing centers. However, the BPO industry in India faces challenges like increased competition from other countries and concerns over data security, skills shortages, and employee welfare.

1. Welcome To A presentation on Competitive Edge through Outsourcing: An Enquiry into India as a BPO Hub with Scope, Risks, Challenges ahead Hastimal Sagara GLS Institute of Commerce

2. AIM of the PPT To make an evaluation of the BPO sector from the point of view of India in the changing scenario.

3. Flow of the Presentation What is BPO or Outsourcing ? Types of services outsourced History Why do developed countries outsource India as a BPO destination Banglore and other cities as a outsourcing Hubs Recent Trends Future prospects of outsourcing business? Concerns of the sector Recommendations References

4. What is Business Process Outsourcing? A formal agreement with a third party to perform a service for an organization. The transfer of a function previously performed in-house to an outside provider. The contracting out of work that was previously done within an organisation to an external provider. “ A contractual relationship where an external organization takes responsibility for performing all or part of an agency’s functions. This can involve a partial or complete transfer of staff and/or resources”.

6. Sectors that outsource jobs!! Insurance Banking Public utilities Telecom Legal Transportation Manufacturing Publishing

7. BPO services are provided for Sales Support Complaint Handling Technical queries Relationship and Accounts Management Document Preparation Data Entry Call centers Medical Transcription Back Office Transactions, Insurance claims processing Legal databases Content Development/Animation Logistics Management

8. Why should any company outsource 1.Reduce overheads, free up resources 2. Minimize capital expenditure 3. Eliminate investment in fixed infrastructure 4. Offload non-core functions and redirect energy and personnel into the core business 5. Focus scarce resources on mission-critical projects 6. Get access to specialized skills labour 7. Reduce the overall management burden while retaining control of strategic decision making. 8. Save on manpower and training costs 9. Control operating costs 10.Spread the risks In Nutshell, Outsourcing is done to save money, improve quality, or free company resources for core activities

9. Global BPO Market Size

10. The biggest advantage India offers is its low cost and huge skilled manpower

11. Key Enablers for BPO Cluster in India Pool of Talent Low Cost of operations Better Infrastructure Conducive govt Policy Better Investor support

12. Why is India preferred by the developed countries? Hi-tech PSUs Pool of high quality professionals Largest number of engineering colleges Excellent climate Indian School of Business Brand Building High Quality educational and research facilities Good institutional support

13. India: A success story India now leads the world in offshore outsourcing The value of outsourcing to India in 2007 is estimated at $47.8bn (£24bn). Expansion is happening fast, and the IT outsourcing industry is predicted to continue growing at about 28% a year. IT and business process outsourcing (BPO) services now account for 5.4% of India's gross domestic product (GDP). Banglore, Hyderabad, Gandhinagar, Kolkata have become Indian forms of Silicon Valley of the U. S. India has more than a billion people - with more than two million graduating from university each year.

14. BPO: Employment Opportunity “ India's business process outsourcing (BPO) industry is likely to face a workforce shortage of 262,000 employees by 2009. Estimates place the BPO industry's future workforce requirement at 1 million staff by 2009” says The Planning Commission, currently employs 400,000 people according to recent estimates. Of which 80% is concentrated in and around Tier I cities. Estimate says the requirement of people at 12,00,000 by the end of year 2010. Services industry growing at 10-11% with emerging careers in other industries. The BPO industry has grown at 40% and is likely to face acute manpower shortage by 2008. programs for

15. IT Clusters in India

16. NASSCOM’s annual study on the performance of the IT services and BPO sector in 2006-07 No. of Employees -Sector wise break-up

17. Earnings for India for 2006-07 (USD Billion) IT Software and Services Exports—22.9 ITES-BPO Exports--8.4 Software exports predict that there would be a healthy 33 percent growth for 2007-08. The industry continued to be amongst the largest employers, directly providing jobs to more than 1.6 million people and indirectly creating employment opportunities for an additional 6 million Indians in related industries. The industry also significantly impacted socio-economic development by contributing 5.2 percent to the national GDP India maintained its lead as the preferred outsourcing destination, based on factors such as talent suitability, process maturity and conducive business environment

18. Indian IT & BPO Industry – Recent Trends

19. The new challenge to Indian BPO industry due appreciation of Indian Rupee against Dollar The export front is experiencing a downfall particularly with dollar based economies like U. S.A. , Canada etc. There is an expected decline of about 10% of exports if the present trend of Rupee appreciation against dollar continues.

20. India faces Competition from China , Ireland, Singapore, Malaysia, Mexico, the Czech Republic, Poland, the Philippines, Canada. China has remerge “ China has rapidly emerged as an industrial powerhouse” emerged as an industrial powerhouse China has rapidly rhouse “ India is still the most preferred destination for outsourcing”

21. The main issues that concern the BPO Industry today are: Security of data at a great risk Availability of Skilled Manpower Training on regular basis Quality Delivery New Business Acquisition Government Support Availability of High Risk Capital

22. Recommendations Job Security for BPO workers Should be brought under Trade Union Umbrella N eed for more explicit, detailed and relevant regulations, guidance Health risk assessments for employees Need for full time counsellors Establishment of welfare committee

23. References Data quest 'BPO employee survey 2004', Vol XXII No.21, November 15, 2004. Booming call centre biz in India; http://www.indiatelecomnews.com Call centre industry in India; http://callcentreinindia.blogspot.com BPO.FAQ; www.bpoindia.org. Geeta seshu; stress in the sunshine sector;http://www.boloji.com Call centre lack challenges-study by NFO India and people equity-HR consultancy Bangalore; June 2003. Call centre faces manpowercrunch; http://www. thehindubusinessline. com Greying of India's call centre;bbc.co.uk, Thursday, 5th August 2004. National Association of Software and Services Companies (Nasscom). Annual Trade Report of the WTO www.nasscom.in

24. Thanks India