This report has been prepared as an assignment of International Economics. It is a brief report prepared to explain the SWOT Analysis BPO/KPO and ITES Industry.

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Department of Business Administration,
Faculty of Management studies & Research,
Aligarh Muslim University, Aligarh
SWOT Analysis of BPO/KPO and ITES Industry
Assignment 2
Submitted by:
Mohd. Izhar ul Islam
19MBAIB12
Date – November
17, 2020
Submitted to:
Dr. Mohd. Afaq Khan
DBA, FMSR,
AMU, Aligarh

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LETTER OF TRANSMITTAL
Dec. 05, 2020
Mohd. Izhar Ul Islam
VM Hall,
AMU, Aligarh
Dr. Mohd Afaq khan
Faculty of management studies and research
AMU
Aligarh
202002
Dear Dr. Mohd Afaq Khan,
I submit herewith a detailed assignment based on the topic – SWOT Analysis of
BPO/KPO and ITES Industry and strategies to overcome threats and weakness.
Your fair, thorough and unbiased evaluation is greatly appreciated.
Sincerely,
Mohd. Izhar Ul Islam
19MBAIB12
GJ5906

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TABLE OF CONTENTS
1. Executive summary
2. Introduction
 Services offered by Indian BPO companies
 Interesting facts about the Indian BPO industry
 The top fifteen BPO companies in India
3. SWOT Analysis
 SWOT Analysis of BPO/KPO and ITES Industry
4. Strategies for the BPO industry to increase the competitiveness, and the share
in the world trade
5. Conclusion
6. References

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EXECUTIVE SUMMARY
This report has been prepared as an assignment of International Economics. It is
brief report prepared to explain the BPO/KPO and ITES Industry. Efforts have
been done to explain the concepts easily and concretely. The report contains facts,
figures and diagrams to give more clarity
References are also given at the end ofthe report to give due credit to others work
and to supportthe facts.

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Introduction – Indian BPO/KPO and ITES Industry
The term Business Process Outsourcing or BPO as it is
popularly known, refers to outsourcing in all fields. A BPO
service provider usually administers and manages a particular
business process for another company. BPOs either use new
technology or apply an existing technology in a new way to
improve a particular business process. 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.
Information technology-enabledservices is a form of BPO that delivers IT
services through leveraging information technology (IT) over the internet or data
network. IT outsourcing job examples include service desk analyst, IT analyst,
production supportanalyst, and technical support.
Services offeredby Indian BPO companies
Indian BPO companies offer varied services, such as, customer support, technical
support, telemarketing, insurance processing, data processing, forms processing,
bookkeeping and internet / online / web research.
 Customer supportservices: 24/7 inbound / outbound call center services that
address customer queries and concerns through phone, email and live chat.
 Technical supportservices: Installation, productsupport, running support,
troubleshooting, usage supportand problem resolution for computer software,
hardware, peripherals and internet infrastructure.
 Telemarketing services: Interacting with potential customers and creating
interest for the customer's services/ products. Up-selling, promoting and cross
selling to existing customers and completing online sales processes.

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 IT help desk services: Level 1 and 2 multi-channel support, system problem
resolutions, technical problem resolution, office productivity tools support,
answering productusage queries and performing remote diagnostics.
 Insurance processing: New business acquisition and promotion, claims
processing, policy maintenance and policy management.
 Data entry and data processing: Data entry from paper, books, images, e-
books, yellow pages, web sites, business cards, printed documents, software
applications, receipts, bills, catalogs and mailing lists.
 Data conversion services: Data conversion for databases, word processors,
spreadsheets and software applications. Data conversion of raw data into PDF,
HTML, Word or Acrobatformats.
 Bookkeeping and accounting services: Maintenance of the customer's general
ledger, accounts receivables, accounts payables, financial statements, bank
reconciliations and assets / equipment ledgers.
 Form processing services: Online form processing, payroll processing,
medical billing, insurance claim forms processingand medical forms
processing.
 Online research: Internet search, productresearch, market research, surveys,
analysis, web research and mailing list research.
Interesting facts about the Indian BPO industry
 The BPO sectorin India is estimated to have reached a 54 per cent growth in
revenue.
 The demand for Indian BPO services has been growing at an annual growth
rate of 50%
 The BPO industry in India has provided jobs for over 74,400 Indians. This

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number is continuing to grow on a yearly basis. The Indian BPO sectoris soon
to employ over 1.1 million Indians
 70% of India's BPO industry's revenue is from contact centers, 20% from data
entry work and the remaining 10% from information technology related work
 Indian BPOs handle 56% of the world's business process outsourcing
The top fifteen BPO companies in India:
 WNS Group
 Wipro Spectramind
 Daksh e-Services
 Convergys
 HCL Technologiess
 Zenta
 First Source
 MphasiS
 EXL
 Tracmail
 GTL Ltd
 vCustomer
 HTMT
 24/7 Customer
 Sutherland Technologies

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SWOT Analysis
A SWOT analysis is a compilation of
company's strengths, weaknesses,
opportunities and threats. The primary
objective of a SWOT analysis is to
help organizations develop a full
awareness of all the factors involved
in making a business decision.
Strength and opportunities are
capitalized while companies tries to
overcame weakness and become
ready to copewith threats. A SWOT
analysis is a planning process that
helps companies overcome challenges
and determine what new leads to
pursue.
SWOT Analysis of BPO/KPO and ITES Industry
Strengths
 Highly skilled, English-speaking workforce
 Abundant manpower
 Cheaper workforce than their Western
counterparts According to Nasscom, The wage
difference is as high as 70-80 percent when
compared to their Western parts.
 Lower attrition rates than in the West.
 Dedicated workforce aiming at making a long-term career in the field

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 Round-the-clock advantage for Western companies due to the huge time
difference.
 Lower response time with efficient and effective service
 Operational excellence
 Conducive business environment Weaknesses
Weakness
 Marketing problem
 Cultural difference
 Legal lacuna
 Local infrastructure
 The costof telecom and
network infrastructure is much higher in India than in the US.
 Political influence Opportunities
Opportunities
 To work closely with associations like Nasscom
 India as the most favored BPO destination in the
world.
 India can be branded as a quality outsourcing
destination.
 $69 billion ITES business by 2010
 $97.5 billion IT (consulting, software solutions)
market by 2010 Threats

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Threats
 The anti-outsourcing legislation in the US state of
New Jersey.
 Three more states in the United States are planning
legislation against outsourcing Connecticut,
Missouri and Wisconsin.
 Workers in British Telecom have protested against
outsourcing of work to Indian BPO companies.
 Other BPO destinations such as China, Philippines
and South Africa could have an edge on the costfactor
 Slowdown of demand
Strategies for the BPO industry to increase the competitiveness, and the
share in the world trade
Following are the purposed strategies on which BPO industry can work upon to
increase the competitiveness and the share in the world trade:
 There is an abundance of workforce available in India. Unemployment is
increasing in the country and thus is the opportunity for Indian BPO firms to
utilize this opportunity. Indian graduates are ready to work at a very or
minimum wages and are ready to work in all the shifts. So the BPO companies
can give tough competition to BPO companies of China, Philippines and South
Africa etc.

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 Indian BPO companies can also compete their foreign competitors by
providing differentiated services to their customers. They can curate their
services so that the hiring company will always prefer them and give their
work to them in future as well
 Orientation program should be arranged for the employees so that they can
understand the other countries’ culture, life style and accent so as to work in a
better manner and handle clients more effectively.
 Propermarketing program must be planned and executed at the company as
well as country level. Proper plan must be made to promote India as the best
destination for outsourcing. Although, the BPO Industry is giving large
number of jobs to our educated youths. Therefore, govt. must ensure proper
marketing and promotion of Indian BPO/KPO industry.
 Cheaper technology must be provided and made available to Indian BPOs and
for the same govt. may exempt taxes on technology products purchaseof

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Indian BPOs. Govt. may offer subsidy to Indian BPOs for purchasing updated
technologies.
 The quality of work must be ensured by providing sufficient training to
employees. This will increase the productivity of employees and will result in
quality work.
 Govt. can reduce the taxes on the services provided by Indian BPOs, thereby
making India a low costdestination for outsourcing.
 The govt. must promote international integration and raise the issue of Ban by
some countries on outsourcing by quoting relevant theories and the benefits of
free flow.
 There are no specific laws for the BPO industry, therefore it’s the need of the
hour that govt. must work upon this issue and make law that must promote
this industry in India.

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Conclusion
The Indian BPO/KPO and ITES industry is doing reasonably well. They have
significant market share and is giving stiff competition to other competitors of china,
India, and South Africa etc.
India has large number of educated youth who are willing to work at minimum
wages also and are happy in doing night shifts or any other shifts whatever company
wants. Therefore, Indian BPOs are required to work upon attracting customers by
utilizing their strengths, capitalizing on the opportunities listed above and working
upon their weakness and threats.
Government must supportthis industry as well as they are providing large number of
jobs to the Indian youths. Above mentioned measures must be ensured so as to make
the Indian BPO/KPO and ITES Industry more competitive and to Increase the share
in global market.

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References
1. https://www.investopedia.com/terms/b/business-process-outsourcing.asp
2. https://biz30.timedoctor.com/business-process-outsourcing-industry/
3. https://www.techopedia.com/definition/13776/business-process-outsourcing-
bpo
4. https://www.smartsheet.com/everything-you-need-know-about-business-
process-outsourcing