2. LOGO
Created by Vishnu Kumawat
Shri Ram College of Commerce
B.Com (h), I year
Roll No. 667, (E-25)
3. Contents
1 What is BPO
2 BPO Categories
3 Key Terms
4 Different types of BPO Services
Business Process Outsourcing
4. What is BPO
Business process outsourcing (BPO) is a
subset of outsourcing that involves the
contracting of the operations and
responsibilities of specific business functions
(or processes) such as payroll, customer
service, accounting, data recording and
much more to a third-party service provider.
Business Process Outsourcing
5. Why does a company outsource ?
Not all companies, especially the smaller one, have the cost expertise needed to
manage a complex network of the activity they need. For eg. many bank don’t
have expertise to manage a complex network of ATMs.
Outsourcing enables an enterprises to concentrate its time and efforts on its key
function.
Companies need not invest money in creating and maintaining system non core
activities.
When the predictability of the process/service is not important.
When there is limited opportunity for the firm to distinguish itself competitively
through a particular process/service.
6. BPO Categories
It is often divided into two categories :
Back Office Outsourcing which includes internal
business functions such as billing or purchasing.
Front Office Outsourcing which includes customer-
related services such as marketing or tech support.
7. Key Terms of BPO
BPO that is contracted outside a
company's own country.
BPO that is contracted with the
company's own country.
BPO that is contracted to a
company's neighboring country.
9. BPO Service Examples
1. Customer Support Services
››› Customers calling to check on their order status.
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››› Customers calling to check for information on products and services.
››› Customers calling to verify their account status.
››› Customers calling to check their reservation status etc.
2. Technical Support Services
››› Customers calling to resolve a problem with their home PC.
››› Customers calling to understand how to dial up to their ISP.
››› Customers calling with a problem with their software or hardware.
››› Customers calling to resolve other problems with their products.
10. BPO Service Examples
3. Telemarketing Services
››› Outbound calling to sell wireless services for a telecom provider.
››› Outbound calling to1retail households to sell leisure holidays.
››› outbound calling to existing customers to sell a new rate card for
a mobile service provider.
››› outbound calling to sell credit or debit cards etc.
4. Employee IT Help-desk Services
››› System problem resolutions related to desktop
››› Notebooks, OS, connectivity etc.
››› Office productivity tools support including browsers and mail.
››› New service requests.
››› IT operational issues.
››› product usage queries etc.
11. BPO Service Examples
5. Insurance Processing
››› New Business / Promotion:
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Inbound/outbound sales, Initial Setup, Case Management, Underwriting,
Risk assessment, Policy issuance etc.
››› Policy Maintenance / Management:
Record Changes like Name, Beneficiary, Nominee, Address; Collateral verification,
Surrender Audits Accounts Receivable, Accounting, Claim Overpayment,
Customer care service via voice/email etc.
6. Data Entry Services / Data Processing Services
››› Data entry from Paper/Books with highest accuracy and quick.
››› Data entry from Image file in any format .
››› Business Transaction Data entry like sales / purchase / payroll.
››› Data entry of E-Books / Electronic Books.
››› Receipt and Bill Data Entry etc.
12. BPO Service Examples
7. Book Keeping and Accounting Services
››› General Ledger
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››› Accounts Receivables and Accounts Payable
››› Financial Statements
››› Bank Reconciliation
››› Assets / Equipment Ledgers etc.
8. Internet / Online / Web Research
››› Internet Search.
››› Product Research & Market Research.
››› Survey, Analysis.
››› Web and Mailing list research etc.
13. BPO Almost Everywhere
BPO appears to be an all inclusive term that covers everything:
››› Medical transcription
››› Animation
››› Power point presentations
››› Equity research
››› Contract research
››› Call centres
››› Collections
››› IT Help desk
››› Internet chat
››› Customer service
››› Transaction processing
››› Travel bookings
››› Accounting
››› etc. etc. etc.
14. BPO- Industry Segment
Everyone industry is into outsourcing:
››› Banks
››› Insurance
››› Asset management
››› Manufacturing
››› Healthcare and Pharma
››› IT
››› Telecom
››› Travel agencies
››› Airlines
››› Governments
15. Advantages Disadvantages
•Productivity Improvements •Knowledge Disappears and
•Cost Savings is Transferred to the
•Improved HR Outsourcing Partner
•Focus on Core Business •Poor Quality Control
Competency •Restoring Operations is
•Improve Service Level Complicated
•Reengineer Business •Lack of Loyal Employees
Process •Reduction in Strategic
• Access to world class Alignment
capabilities •Political and religious
•Higher level of service with instability
lower cost
16. Outsourcing in India
BPO ITES KPO
Business Process Information technology Knowledge Process
Outsourcing Enabled service Outsourcing
17. BPO in India
Business process outsourcing is progressing
fast in India.
As of 2008, around 0.7 million people work
in outsourcing sector.
During the years 2003-04, the ITES-BPO
segment achieved a 54 percent growth in
revenues as compared to the previous
years.
The number of Indians working for the ITES
18. ITES, Information Technology Enabled Service
ITES, Information Technology Enabled Service, is defin
processes that can be enabled with information techn
Areas like finance, HR, administration, health care, tel
manufacturing etc. Armed with technology and manpo
provided from e-enabled locations. This radically re
service standards. In short, this Internet service prov
B2B e-commerce solutions.
The main objectives of ITES are :
» Enabling business strategy
» Achieving an organization's business goals
19. KPO,Knowledge Process Outsourcing
Knowledge process outsourcing (KPO) is a form of outsourcing
related and information-related work is carried out by work
KPO services include the following:
>> Investment research services
(equity, fixed income and credit, and quantitative research)
>> Business research services
>> Data Analytics
>> Market research services
>> Valuation and fairness opinions
>> Legal process outsourcing
>> Patent research services
>> Business operations support, analytics & management
>> Editorial process outsourcing
20. Current Top Indian Rankers
Genpact Convergys
WNS Zenta
Wipro BPO Mphasis
HCL Technologies BPO Tracmail
ICICI OneSource GTL Ltd.
IBM Daksh VCustomer
Progeon (Infosys) HTMT
Aegis BPO Service 24/7 Customer
EXL Service Holding Sutherland Technologies
21. Why people prefer Join and Leave BPO
In general a person with any graduation can join any of the BPO. Some BPO's like
to take people with MBA but then again the specialization are of an individual hard
makes any difference. Again, this is the industry, where there is no reference check
and very often people don't even specify there exact age. Lets me share with you
some of the reasons as why people prefer to join and leave a BPO:
Why People Prefer Why People Leave
1. No growth opportunity/lack
1. Did not get a better job. of promotion
2. Find nothing better to do. 2. For higher Salary
3. Education level doesn't 3. For Higher education
matter 4. Misguidance by the
4. Good work environment company
5. Good Benefits 5. Policies and procedures
6. Flexibility of time are not conducive
7. Attractive life style 6. No personal life
7. Physical strains
8. Uneasy relationship with
peers or managers
22. SWOT Analysis for BPO in India
S Strengths
W
Weakness
•Large no. of talented graduates •Scarce foreign language skills
•Affordable and quality education other than English.
as compared to developed •Lack of customer service culture
countries •Expensive and poor quality
•English language benefit telecom infrastructure
•Strong customer base of well •Poor electricity supply
known companies •Cultural differences
•Powerful venture capital interest in
investing in growth opportunity
O
Opportunities
T Threats
•Horizontal and vertical expansion •High Billing rates
of existing customer base into new
markets
•Political instability
•Time zone difference between
•India's competitors in Eastern
India and target markets
Europe, Latin America and the Asia
