CHAPTER ONE

INTRODUCTION

Talent Management

1.0 Meaning

Talent management refers to the anticipation of required human capital for an

organization and the planning to meet those needs. The field increased in
popularity after McKinsey's 1997 research and the 2001 book on The War for
Talent. Talent management in this context does not refer to the management of
entertainers.

Talent management is the science of using strategic human resource planning to

improve business value and to make it possible for companies and organizations
to reach their goals. Everything done to recruit, retain, develop, reward and make
people perform forms a part of talent management as well as strategic workforce
planning. A talent-management strategy should link to business strategy to
function more appropriately

1.1 HISTORY

The term was coined by McKinsey & Company following a 1997 study. The
following year in 1998 "talent management" was entered in a paper. Written by
Elizabeth G. Chambers, Mark Foulon, Helen Handfiled-Jones, Steven M.
Hankin, and Eduard G. Micheals III. However, the connection between human
resource development and organizational effectiveness has been established since
the 1970s.

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The profession that supports talent management became increasingly formalized
in the early 2000s. While some authors defined the field as including nearly
everything associated with human resources,[citation needed] the NTMN defined
the boundaries of the field through surveys of those in corporate talent
management departments in 2009–2011. Those surveys indicated that activities
within talent management included succession planning, assessment,
development and high potential management. Activities such as performance
management and talent acquisition (recruiting) were less frequently included in
the remit of corporate talent management practitioners. Compensation was not a
function associated with talent management. Lastly, the strategy of using talent
management help organizations with workforce during WWII.

1.2 Implementation

A talent management system is suggested to be used in business strategy and

implemented in daily processes throughout the company as a whole. It cannot be
left solely to the human resources department to attract and retain employees, but
rather be practiced in all levels of an organization. The business strategy must
include responsibilities for line managers to develop the skills of their immediate
subordinates. Divisions within the company should be openly sharing
information with other departments in order for employees to gain knowledge of
the overall organizational objectives. The issue with many companies and the
military today is that their organizations put tremendous effort into attracting
employees to their company, but spend little time into retaining and developing
talent.

The talent management strategy may be supported by technology such

as HRIS (HR Information Systems) or HRMS (HR Management Systems).

1.3 ABOUT THE TALENT MANAGEMENT

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Talent management implies recognizing a person's inherent skills, traits,
personality and offering him a matching job. Every person has a unique talent
that suits a particular job profile and any other position will cause discomfort. It
is the job of the Management, particularly the HR Department, to place
candidates with prudence and caution. A wrong fit will result in further hiring,
re-training and other wasteful activities. Talent Management is beneficial to both
the organization and the employees. The organization benefits from: Increased
productivity and capability; a better linkage between individuals' efforts and
business goals; commitment of valued employees; reduced turnover; increased
bench strength and a better fit between people's jobs and skills. Employees benefit
from: Higher motivation and commitment; career development; increased
knowledge about and contribution to company goals; sustained motivation and
job satisfaction.

In these days of highly competitive world, where change is the only constant
factor, it is important for an organization to develop the most important resource
of all - the Human Resource. In this globalize world, it is only the Human
Resource that can provide an organization the competitive edge because under
the new trade agreements, technology can be easily transferred from one country
to another and there is no dearth for sources of cheap finance. But it is the talented
workforce that is very hard to find.

Talent signals an ability to learn and develop in the face of new challenges. Talent
is about future potential rather than past track record. So talent tends to be
measured in terms of having certain attributes, such as a willingness to take risks
and learn from mistakes, a reasonable (but not too high) level of ambition and
competitiveness, the ability to focus on ‘big picture’ issues, and an awareness of
their own strengths, limitations and impact on others.

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Several talent management processes need to be in place on a strategic level in
order ensure its success. Such processes/strategies include talent identification,
recruitment & assessment, competency management, performance management,
career development, learning management, compensation, succession planning
etc.

Talent management has a number of benefits to offer such as employee

engagement, retention, aligning to strategic goals in order to identify the future
leadership of the organization, increased productivity, culture of excellence and
much more.

1.4 Objectives of Study:

In the current scenario of cutthroat competition, every company has to survive to

satisfy its customers by providing them quality products and services. The
summer training at Company, was undertaken with a view to study certain
fundamental as well as the commercial and operational aspects of the company.
The training involved the study of the following:

• To understand the entire procedure of Talent management

• To understand the need of Talent Management

• To study the accuracy and quality of work of employees by talent management

procedure.

• To suggest possible improvement in Talent Management process.

1.5 Rationale of the study

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The ‘talent’ in an organization refers to the current employees and their valuable
Knowledge, skills and competencies. Talent management (or succession
management) is the ongoing process of analyzing, developing and effectively
utilizing talent to meet Business needs. It involves a specific process that
compares current talent in a department to the strategic business needs of that
department. Results lead to the development and implementation of
corresponding strategies to address any talent gaps or surpluses.

Talent management for the HR Community is a priority of the HR Strategy for

the HR Community. Not only does the HR Strategy support the HR Community
as its own professional group, but it also recognizes and will support the role
human resource professionals have to help their clients become skilled,
committed and accountable public servants. The implementation of a talent
management process that is transparent and equitable is expected to create an
environment for people to develop their skills in preparation for a range of future
possibilities thereby preparing the workplace for changing roles. The goal of this
process is to map the business needs of the HR Community with the potential and
career development needs of our people in order to develop a comprehensive
Talent Management Plan.

1.6 Limitations of Study:

1) All the functions are only related with the personnel department.

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2) Limitation about the working hour of the worker in the factory.

3) Limitation about the time and absenteeism.

4) Company not allowing to disclose confidential information

5) Time factor was the major limitation of this survey. Because during survey any
activity of organization which is directly or indirectly related to the production
process should not disturb due to survey.

1.7 Object of the project:

This “Talent Management” Project I completed from greet technologies pvt. Ltd
Company, For the fulfillment of the full time course of MBA of bangalore
university for the year 2018-2020 In Company I made research on Talent
Management process because company want to know that, is it talent
management is really beneficial for them or not. I proved them that talent
management is really beneficial for company by doing this project. I completed
this project because it was a requirement of our MBA full time course. I learned
various things in this project, like audit, SAP HR module, personal
administration. Etc.

CHAPTER TWO

LITERATURE REVIEW

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2.0 INTRODUCTION

Effective talent management practice is a basic necessity for achieving

organisational success and excellence. Whichever way it is called, be it
intellectual capital, human resources, people, labour, talent, or some other name,
the potentials that reside in employees and how they are managed is seen as
crucial to organisational success and competitive advantage (Boudreau and
Ramstad, As explained by the increasing effect of globalisation, changing
demographics, and the information economy is concurring to create a new
business era, which is talent management.

He further argued that the ability to attract and retain the most talented workforce
will determine whether or not success is realised. It is therefore imperative for
organisational leaders to understand what best attracts top talents and harness
those factors to the advantage of their organisations since attracting and retaining
top talents is a difficult challenge and role of management Johnson reasons that
there is an increasing price rate for talents and the only success factors will be
how much longer an organisation can retain top talents than competitors and how
quickly the holes created by top talents who leave the organisation are plugged.

One of the most important roles of talent management is to effectively manage

and retain an organisations most superior workforce which is the goal of human
resource management. Over the past decade much talent management has gained
solid roots in contemporary human resource management (HRM). Research over
the years has revealed the 9 strategic role of talent management in organisations
strongly asserting that talent management is a subset of strategic HRM . Though
much has been covered about talent management in human resource practice
there is a fissure to fill with regards to how it can retain an organisation’s most
superior workforce to create a competitive advantage for it. This research seeks
to throw more light on how an effective talent management practice can

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positively affect employees’ retention in organisations. Talent management has
been portrayed as a major constituent of human capital management which
entails the recognition, nurturing, appraisal, utilising and retaining employees
who are either high performing or exhibit high potential .As identified by Wright
et al, business challenges most commonly mentioned by HR Director as affecting
their HR strategies were retention of staff, organisational growth and
globalisation.

This brings home the point that employee retention is the goal of every
organisation with a superior workforce capacity since the ‘war for talent’ is
identified as pioneering the adoption of talent management, with the need to
attract and retain key employees vital to the achievement of organisational goals
and objectives. However employee retention can be achieved through an
effective management of these human resources who are themselves the talents
and intellectual capacity owned by organisations. A well-structured and effective
talent management system does not only increase staff capacity to deliver quality
services but contributes no small way to their sustenance and retention.

2.1 IMPORTANCE OF TALENT MANAGEMENT

The use of the term talent management was widely used in management since the
late 1990s especially when there were major changes in the labour market
conditions. McKinsey and Co. 1998 threw more light on these significant changes
which contributed in no small way to the increase in demand for talent-intensive
skills which suggested that it was outstripping supply in most industries and
markets .Stahl et al., however argued in response to these changes that Talent
management was synonymous to Human capital management. They suggested
that talent management should rather shape and inform organisational strategy.
According to Stracke et al., a survey of 5500 executives across 109 countries

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revealed that most organisations, industries and even countries will experience a
talent gap especially for highly skilled positions.

Their study revealed talent management as highly ranked as important by the vast
majority. The need to effectively manage talent has been complemented with
talent metrics which is strongly advocated by Boudreau and Ramstad. This has
promoted the demand for a consistent talent management practice which is not
only the responsibility 17 of the HR practitioner but key managers at all levels of
the organisation. That is, from the CEO to all functional managers (Busine and
Watt, 2005). Iles et al., (2010) and Stainton (2005) suggest that all individuals in
an organisation should go through the same talent identification process. Wilson
(2010) is of the view that the future of talent management will be established
upon developing a clear criteria, processes and procedures, vigorous and focused
metrics coupled with effective communication. Collings and Mellahi also suggest
that the systematic identification of key people within an organisation is the basic
foundation for a strategic talent management system (2009:304).

These researches prove beyond all reasonable doubts that it is after when a
systematic identification of talents is made and deployed will organisations be
efficient, thereby creating a competitive edge for themselves. In spite of the
positive discourses pioneered by these great talent management activists it is
somewhat imperative to recognise the concerns of others about the exclusive
driven approaches to talent identification and management. Gladwell is critical
about the hierarchical categorisation of employees into classes such as A, B, and
C and remunerated accordingly.

Many others are of the view that the use of the word ‘talent’ and an exclusion
from the talent pool could be demotivating to employees who are not selected as
part of the talent pool (CIPD, 2006). Blass and April (2008), and Patel (2002)

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also emphasise the fact that an exclusive focus on the talent pools can affect the
morale of workers and even cause resentment among peers.

2.2 THE TALENT MANAGEMENT PROCESS

There is increasing empirical evidence showing the relationship between

excellent talent management practice and employee retention. Talent
management recognises that different people have diverse but complimentary
contributions which achieve success for an enterprise. However McGarrity is of
the view that talent management must be consistent with the corporate strategy,
and define leadership process that are in consonance with all functional areas in
order to stay competitive and effective. Bersin and Associates illustrates the
talent 20 management process which highpoints essential skills gap analysis,
compensation and benefits, recruitment and selection and training and
development. At the core of the talent management process are job roles or
schedules, job descriptions and competency models which are illustrated by the
diagram

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2.2 Talent management process Source:

2.2.1 Analysis of future skills requirement (skills gap analysis)

Professional firms will need to identify the type of staff and the skills or talents
needed to respond to changes in future business trends and competition in the
industry if they want to stay competitive and achieve organisational success.
Identifying both current and future skills requirements is crucial for the smooth
operation of most businesses. According to Bersin and Associates (op cit) this
process helps to identify roles, individuals, and competencies leaving an
organisation.

2.2.2 Training and development

McGarrity explains that one of the distinctions of a successful talent management

programme is to create “talent pools” within an organisation (op cit). The “talent
pools” serve as a reliable and consistent source of talent within organisations
which makes it easier to train and develop skills and talents to cope with emerging
business challenges and to improve performance across other functional areas and
levels. However according to Appleby, some form of training is needed for all
employees. It does not only provide employees with the requisite knowledge and
skills for job performance but also increases organisational efficiency.
Development activities are to be targeted and agreed on; thus trainees should have
a firm grip on the areas in which they have strengths and those that they need to
develop .

2.2.3 Competencies assessment

Assessing the competencies of employees is crucial to deploying the

competencies and retaining them. It is important that these are identified and form
the source of personal career development (op cit). Arthur makes explicit the

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four fundamental competency categories which are tangible competencies,
behaviour based competencies, knowledge based competencies, job specific
competencies.

2.2.3 Employee Compensation and Benefits

Effective compensation and benefits system achieve some form of advantage for
organisations by retaining organisations most superior workforce. Organisations
tie compensation package directly to performance management in order to align
compensation, benefits and incentives to the achievement of organisational goals
(op cit). The objective of remuneration and rewards is to prove substantially to
employees 22 their comparative value within the organisation. It is also a way for
employees to evaluate their relative worth in the labour market. In this regard, the
remuneration system influences both organisational capacity and employee
commitment and retention .According to Armstrong and Murlis items such as
pensions, sick pay, holidays and varying range of other benefits are an integral
part of every company’s condition of employment. When compensation salary
scales are satisfactory they contribute in no small way to attracting and keeping
the people the business needs.

2.2.4 Succession planning and Career development opportunities

Career development is one of the vital points in attracting and retaining. It is of

great importance to both the organisation in terms of creating and retaining a
superior workforce base for competitive advantage and also employees in terms
of their individual development and progression. Human resource managers have
to provide development opportunities for employees to enhance their career. This
brings about trust, improved commitment, motivation and high retention rate.
Otherwise the tendency that employees will seek such opportunities and personal
development elsewhere is high .

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Also training other employees to effectively manage the jobs of key talents
especially in their absence is significant. This is popularly referred to as
succession planning. It concerns bridging the succession gap within an
organisation by training and equipping other talented employees to do the work
of key talents within an organisation. This helps to maintain a superior workforce
capacity to cope with the competitive pressures in an industry.

2.3 Review of literature

TALENT MANAGEMENT V/S TRADITIONAL HR APPROACH

Traditional HR systems approach people development from the perspective of

developing competencies in the organization. This can actually be a risk-prone
approach, especially for companies operating in fast evolving industries, since
competencies become redundant with time and new competencies need to be
developed. Thus, over time, the entire approach to development of people might
be rendered obsolete calling for rethinking the entire development initiative.

Talent management on the other hand focuses on enhancing the potential of

people by developing capacities. Capacities are the basic DNA of an organization
and also of individual potential.

D= Point of Departure

N= Navigation

A = Point of Arrival

In fact, the following appropriately describes the role of talent management:

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Translating organizational vision into goals and mapping the required level of
capacities and competencies to achieve goals aligning individual values and
vision with organizational values and vision.

Clear understanding of the varied roles within the organization and appreciation
of the value-addition from self and others leading to building a culture of trust,
sharing and team orientation.

Assessment of talent to profile the level of capacities and set of competencies

possessed within the organization.

Enhancing capacities to learn, think relate and act through development

initiatives. Individual growth to meet and accept varied incremental and
transformational roles in an overall scenario of acknowledged need for change.

Gap analysis and identification of development path helping individuals realize

their full potential through learning & dev. Developed individuals enabling
breakthrough performance

2.4 Understanding Talent

The idea of developing talent is not a new concept in any business. In fact every
successful company that has 'stood the test of time' has done so, Because of their
ability to attract, retain and get the best out of their talent. Today we read of a
'war for talent’. This has emerged, not because companies have forgotten about
talent, or allowed it drop off of the radar but, because in some fundamental ways,
the talent has changed. We have a new kind of young person entering the business
world, with a very different world view, set of values, priorities and goals.

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2.4.1 Focus 1: Attracting and recruiting Talent:

In order to effectively attract and recruit talented employees you need to

understand what talent is looking for in a career and how they will view your
business in terms of fitting in with their needs. Your approach to each one of your
potential recruits needs to be altered to suit that they are. By examining this
through the perspectives of the different generations, we are able to look at their
attitudes to work what kind of career, organization and benefits they are looking
for and know what kind of techniques will ensure that your recruitment process
is successful in each generational context.

This focus unit looks at the following:

 attitudes to work
 career goals
 views on organizations and how they are currently run
 what benefits each generation is looking for
 Techniques to attract the different generations: what will make your
organization stand out?
 Techniques to recruit the different generations: how should the job offer be
presented?

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2.4.2 Focus 2: Retaining and developing Talent

In order to effectively retain and develop Talent you need to understand what the
generations are looking in a future career and in an organization. Your approach
to each one of your employees needs to be altered to fit individual goals and
personal needs.

This focus unit looks at the following:

 work ethics and values

 career planning
 work environments and culture
 benefits and reward systems
 ways of motivating

2.4.3 Focus 3: Managing Talent

An in depth look at how the generations internalize authority will enable you to
adjust your management style to fit in with who they are. We are able to look at
the attitudes of the different generations to leadership and management; what kind
of management approaches will ensure that you gain maximum loyalty,
productivity and job satisfaction from each of your employees.

This focus unit looks at the following:

 attitudes to authority
 management styles for the different generations including conflict
management
 leadership styles used by the different generations
 specific techniques to help you manage different generations
including communication and feedback preferences
 coaching and mentoring preferences including
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  The role of coach
 The coaching process

How to plan for and create conversations

2.5 Research Methodology

Research Methodology is a way to systematically solve the research problems. It

may be understand as a science of studying how research is done scientifically.
In it we are studying his research problems along with the logic behind them. It
is necessary the researcher to know not only the research method techniques but
also the methodology.

2.5.1 Types of Research:

It is descriptive type of research. Descriptive Research survey and fact finding

inquiries of different kind. The major purpose of descriptive research is
descriptive the state of affairs, as it exist at present. The main control over the
variable; he can only report what has to discover the even when there he cannot
the variable. The methods has to researcher utilized in descriptive research are
survey methods of all kind.

2.5.2 Data Source:

The source of project depends on accurate data. That’s why data collecting the
appropriate data, which differ considerable in context money, cost, time and other
resources at the disposal researcher.

There are two types of data collection methods available:

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1) Primary Data Collection Method.

2) Secondary Data Collection Method.

1) Primary Data Collection Method.

Primary data are those that are obtain by the user for fulfillment their purpose. I
have taken Primary Data through personal visit of HR head, and HR executive,
of Company Ltd. At all levels and observation methods to get more reliable
information. I also collected primary data by filled, ‘Yes’ or ‘No’ format
questionnaire by the employee of Company, This data helped me to justify the
statements that have made in this project.

2) Secondary Data Collection Method.

The Secondary Data is that which is already collected and stored or we can say
already saved or ready data by others. I got secondary data from their journals,
records, specimen of appraisal form etc. And from newspapers magazines,
articles, internet etc I got basic information of Talent Management. I collect
secondary data by referring some specimen of company and by referring some
books and web sites of company from internet.

2.6 Statement of Hypothesis

Hypotheses are the essential assumptions which the researcher formulates about
the possible causes, findings and ultimate output of the issue in under research.
Under hypotheses mere assumptions or suppositions are made which are to be
proved or disproved. For researcher it is a formal question that he intends to
resolve. A hypotheses consist either of a suggested explanation for a phenomenon
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or of a reasoned proposal suggesting a possible correlation between multiple
phenomenon. The assumptions be true or false are to be proved through the
completion of project.

The hypotheses for this project are as follows:

Null Hypothesis:

 Employee taking benefits from Talent Management System

 Employee can retain successfully for the benefit of organization
 Employee’s performance increased by talent management
 Employee turnover of organization affected by Talent Management

Procedure Alternate Hypothesis:

 Employee are not able to take benefits from Talent Management System
 Employee can not retain successfully for the benefit of organization
 Employee’s performance can not increased by talent management.
 Talent Management is not affecting on employee turnover of organization

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 CHAPTER THREE

COMPANY PROFILE

3.0 Introduction

Greet Technologies Private Limited is a Non-govt company, incorporated on 10

Oct, 1991. It's a private unlisted company and is classified as 'company limited
by shares'. Company's authorized capital stands at Rs 25.0 lakhs and has 41.2%
paid-up capital which is Rs 10.3 lakhs.

Greet Technologies is a growing Customer Support/Call Center Services

Provider in India, with focus on transaction processing as well as handling calls.
Greet is here to deliver world-class solutions, which are result-oriented and
committed to customer satisfaction. With a ' total solutions approach ', Greet
works as an extended arm of your organization. Our ability to provide best-of-
breed services derives from an expert knowledge of our business, as well as in-
depth understanding of our clients' business and business processes.

We possess a deep working knowledge of the technologies and processes that are
crucial to successful business outsourcing and pride ourselves on our ability to
provide end-to-end, scalable and result-oriented solutions.

Greet’s target market is represented by progressive, growth-oriented businesses

with 10-2,000 employees. Most of Greet’s clients are in white collar or skilled
blue collar industries, such as technology, engineering, real estate, accounting,
medical services, banking, legal, insurance and light manufacturing.

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3.1 Knowledge Process Outsourcing/Call Center and Data Entry Services

We have rich experience in handling customer support processes. From dedicated

client lines to 24/7 customer support, we at Greet have specialized in greeting
customers from all over India on technical as well as customer service related
issues. Our packaged solutions make outsourcing easy.

At Greet, we understand that our people make it possible. Our employees are
security screened and highly monitored to ensure the privacy of your business
data. We only hire educated professionals and pay them a professional level
salary. Each of our employees attends classes to minimize any accent or Mother
Tongue Influence and make communication with your customers easy.

Greet’s domain experts, map out the processes requirements and expectations of
outsourced work across these verticals to establish key measurables, which define
the approach to your outsourced work. The Call Center services offered are thus
built around an in-depth understanding of the space you operate in. A natural
outcome of this is a predictive understanding of your specific requirements and
processes customized to cater to them.

We possess a deep working knowledge of the technologies and processes that are
crucial to successful professional call center services and pride ourselves on our
ability to provide end-to-end, scalable and result-oriented solutions.

3.2 DATA Entry

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Data entry personnel will take care of repetitive tasks such as submitting your site
to directories, sending emails to potential affiliates, formatting text, doing manual
accounting etc. They are experienced with computers and proficient in English.

These employees will take care of simple tasks such as formatting text, manage
affiliate programs, gather data from the internet and submitting your website to
link sites. Their written English is good so they can also work with your customer
helpdesk, answer emails and contact potential clients.

If it's too expensive to automate a repetitive and simple task this is a great
opportunity to get that task done without paying a fortune. Our data entry
operators have various backgrounds, educational qualifications and skills. Their
experience ranges from accounting to call center work. Therefore please send us
a specific request of your requirements.

 Data processing
 Data entry services
 Customer care services via phone or email
 Transcription services
 Backoffice services
 Database maintenance
 Scanning services

 File conversions
 Records management
 Indexing
 File moves/purges
 Online document retrieval
 Online form processing

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 Document imaging

Greet Technologies Private Limited is a Private incorporated on 10

October 1991. It is classified as Non-govt company and is registered at
Registrar of Companies, Bangalore. Its authorized share capital is Rs.
2,500,000 and its paid up capital is Rs. 1,030,000. It is inolved in Software
publishing, consultancy and supply [Software publishing includes
production, supply and documentation of ready-made (non-customized)
software, operating systems software, business & other applications
software, computer games software for all platforms. Consultancy includes
providing the best solution in the form of custom software after analyzing
the user?s needs and problems. Custom software also includes made-to-
order software based on orders from specific users. Also, included are
writing of software of any kind following directives of the users; software
maintenance, web-page design].

Greet Technologies Private Limited's Annual General Meeting (AGM)

was last held on 29 September 2018 and as per records from Ministry of
Corporate Affairs (MCA), its balance sheet was last filed on 31 March
2018.

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 3.4 Company Details

Company Name GREET TECHNOLOGIES PRIVATE LIMITED

Company Status Active

RoC RoC-Bangalore

Registration Number 12406

Company Category Company limited by Shares

Company Sub Category Non-govt company

Class of Company Private

Date of Incorporation 10 October 1991

Age of Company 27 years, 5 month, 1 days

Activity Software publishing, consultancy and supply [Software publishing

includes production, supply and documentation of ready-made (non-customized)
software, operating systems software, business & other applications software,
computer games software for all platforms. Consultancy includes providing the
best solution in the form of custom software after analyzing the user?s needs and
problems. Custom software also includes made-to-order software based on orders
from specific users. Also, included are writing of software of any kind following
directives of the users; software maintenance, web-page design].

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3.5 COMPETITORS OF GREET TECHNOLOGIES PVT. LTD

The top fifteen BPO companies in India

NASSCOM recently conducted a survey and evaluated the leading BPO service
providers across India. The top fifteen business process outsourcing companies
in India are:

 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

Outsource your BPO work to IndiaGet ahead of your competitors, cut down on
operational costs and get access to the services of skilled professionals, all by
outsourcing non-core BPO work to India. Make a decision to outsource to India
today and watch your business grow exponentially.

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3.6 INDUSTRY PROFILE

THE BPO INDUSTRY IN INDIA

In India, Business Process Outsourcing (BPO) is the fastest growing segment of

the ITES (Information Technology Enabled Services) industry. Factors such as
economy of scale, business risk mitigation, cost advantage, utilization
improvement and superior competency have all lead to the growth of the Indian
BPO industry. Business process outsourcing in India, which started around the
mid-90s, has now grown by leaps and bounds.

India is now the world's favored market for BPO companies, among other
competitors, such as, Australia, China, Philippines and Ireland. The BPO boom
in India is credited to cheap labor costs and India's huge talent pool of skilled,
English-speaking professionals. Research by the National Association of
Software Services and Companies (NASSCOM) has revealed that quality
orientation among leading BPO companies, 24/7 services, India's unique
geographic location and the investor friendly tax structure in India have all made
the BPO industry in India very popular.

What is business process outsourcing?

26
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.

Services offered by 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.

1. Customer support services: 24/7 inbound / outbound call center services

that address customer queries and concerns through phone, email and live
chat.
2. Technical support services: Installation, product support, running
support, troubleshooting, usage support and problem resolution for
computer software, hardware, peripherals and internet infrastructure.
3. 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.
4. IT help desk services: Level 1 and 2 multi-channel support, system
problem resolutions, technical problem resolution, office productivity tools
support, answering product usage queries and performing remote
diagnostics.
5. Insurance processing: New business acquisition and promotion, claims
processing, policy maintenance and policy management.

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 6. 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.
7. Data conversion services: Data conversion for databases, word
processors, spreadsheets and software applications. Data conversion of raw
data into PDF, HTML, Word or Acrobat formats.
8. Bookkeeping and accounting services: Maintenance of the customer's
general ledger, accounts receivables, accounts payables, financial
statements, bank reconciliations and assets / equipment ledgers.
9. Form processing services: Online form processing, payroll
processing, medical billing, insurance claim forms processing and medical
forms processing.
10.Online research: Internet search, product research, market research,
surveys, analysis, web research and mailing list research.

Interesting facts about the Indian BPO industry

 The BPO sector in 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
number is continuing to grow on a yearly basis. The Indian BPO sector is
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

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3.7 HISTORY OF KPO

Knowledge Process Outsourcing (KPO) has evolved from the success of the
Business Process Outsourcing (BPO) model. KPO as an idea was initiated in early
1987 when McKinsey set up a knowledge center in India. KPO saw true
acceptance in the year 2000 when companies like GE, Frost & Sullivan, Gartner
and Office Tiger established captive research and analytics, and third-party
knowledge services from offshore facilities in India. The five years from 2000 to
2005 were the growth years for KPO during which niche service providers like
Evalueserve, including large consulting and investment banks, established
offshore knowledge centers in India, making India a leading destination for KPO.
According to Evalueserve, the Indian KPO sector is expected to notch up 71
percent of the global KPO share, with revenues of USD 12 billion, by 2010.

3.8 Knowledge process outsourcing in India

Knowledge process outsourcing (KPO) describes the outsourcing of core

information-related business activities which are competitively important or form
an integral part of a company's value chain. KPO requires advanced analytical
and technical skills as well as a high degree of specialist expertise.

Reasons behind KPO include an increase in specialized knowledge and

expertise, additional value creation, the potential for cost reductions, and a
shortage of skilled labor. Regions which are particularly prominent in Knowledge
Process Outsourcing include India, Sri Lanka, and Eastern Europe, especially
Poland, Romania, and the Baltic States.
KPO is a continuation of Business process outsourcing, yet with rather more of
business complexity. To be successful in Knowledge process outsourcing, a lot
of guide is required from interorganizational system.

3.9 Types

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KPO services include all kinds of research and information gathering,e.g.
intellectual property research for patent applications; equity research, business
and market research, legal and medical services; training, consultancy, and
research and development in fields such as pharmaceuticals and biotechnology;
and animation and design, etc.

3.11 Importance

The developing rivalry has brought about shorter time to market cycles, and
clients are getting to be more demanding regarding quality. This has constrained
the firms to give operational proficiency and increase the value of their products
and services. The customer can launch an item quicker and get to the market
immediately. A company can lessen the complexities included in overseeing and
constantly constructing information in an extensive pool of human resources.

Businesses are constantly in search of reliable KPO service providers who have
the ability to drive the best business strategy by analysing the available data and
information in a specific case.

3.12 Risks and benefits

3.12.1 Benefits

Cost reduction

Shortage of skilled employees

Provides many graduates at very low cost

High end services are provided at a lower cost to decrease unemployment and
benefit their economy

Provide flexibility in terms of HRM & time management

3.12.2 Risks

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Security- Classified information about the company can be lost

Key talent retention

The character of the employee and the quality of the work cannot be assured

KPO is time consuming and cannot provide a quick fix to the company seeking
immediate results.

Lack of communication between partners due to legal, language and cultural

barriers can lead to complications

Quality of Personnel and Work Cannot Be Guaranteed

Shortage of Skilled Employees

Reduction in Communication due to Language barrier

Inability to protect company's intellect property

3.13 Differentiation from BPO

A KPO firm requires considerably more skilled personnel than a BPO firm.
Experts working in KPO keep on learning and accomplished professionals can
power their aptitude to produce more incomes for the KPO firm.[10] The main
difference between a KPO firm and a BPO firm is that in a KPO firm, the
customer is included amid the whole execution process.

3.14 Origin of the term

Ashish Gupta, ex-COO of Evalueserve and Co-founder & CEO of Benori

Knowledge has often been credited with coining the term. Gupta, an alumnus of
the Indian Institute of Technology Delhi, is also a Founder & Trustee of Ashoka
University and Plaksha University, and serves on the boards of various
companies. Published authors have credited him for coining the term in their
works.

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3.15 KPO In India

India has a large number of post-graduates, PhDs and MBAs who are involved in
KPO. The Indian National Association of Software and Service Companies
(NASSCOM) estimated the total market size of the KPO sector in India in 2006
to be $1.5 billion. The year before, 2005, it had been $1.3 billion, with
Evalueserve predicting that by 2010 it would be some $10 to $15 billion. The
Indian government was predicting that by 2010 India would have 15% of the
global KPO market. However, the global financial crisis, coupled with domestic
economic problems such as the IPO of Reliance Power in 2009, caused people to
re-evaluate these predictions, incurring worries that India's IT, BPO, and KPO
sectors — which by then, combined, were $8.4 billion in export revenues —
would be greatly affected by these factors. The worldwide KPO industry is
expected to reach about US $17 billion by 2015, of which US $12 billion would
be outsourced to India. Furthermore, the Indian KPO area is likewise anticipated
that it will utilize more than 2, 50,000 KPO experts by 2015.

3.16 Challenges of KPO

The KPO area has considerable measure of potential development in India. But
India confronts various difficulties to secure itself as a worldwide KPO pioneer.
The real test in setting up a KPO will be to obtain skilled employees. KPO
organizations include high risk and confidentiality and the greater part of the
work would be outsourced from the US. The area likewise obliges larger amount
of control, confidentiality and enhanced risk management. Moreover, legal
language and cultural barriers can result in genuine issues. Both organizations
need to appreciate each other's corporate and national societies and find common
helpful approaches to create successful participation.

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