Business Process

Management

Created by: Pawan Kumar Gupta

Reg No: 1502009069
 Contents

1 What is BPO

2 BPO Categories

3 Key Terms

4 Different types of BPO Services

Business Process Management

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 Management

 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.

Business Process Management

 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.

Business Process Management

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.
 Different types of BPO Services

Customer Support Services

Technical Support Services
Telemarketing Services
Employee IT-Helpdesk services
Insurance Processing
Policy Maintenance / Management
Data entry Services / Data Processing Services
Internet / Online / Web Research
 Scanning, OCR with Editing & Indexing Services

Business Process Management

 BPO Service Examples
1. Customer Support Services

››› Customers calling to check on their order status.

››› Customers calling t1
o 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.

Business Process Management

 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.

Business Process Management

 BPO Service Examples
5. Insurance Processing

››› New Business / Promotion:

Inbound/outbound sale1s, 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.
 BPO Service Examples
7. Book Keeping and Accounting Services

››› General Ledger

››› Accounts Receivab1 les 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.

Business Process Management

 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.
 BPO- Industry Segment
Everyone industry is into outsourcing:

››› Banks

››› Insurance

››› Asset management

››› Manufacturing

››› Healthcare and Pharma

››› IT

››› Telecom

››› Travel agencies

››› Airlines

››› Governments
Business Process Management
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
 Outsourcing in India

BPO ITES KPO

Business Process Information technology Knowledge Process

Outsourcing Enabled service Outsourcing

Business Process Management

 BPO in India

 India as a good BPO brand, not only will help in the growth of exiting
companies, but will be a helping factor in setting up new ones.

 The future for Indian BPO’s will most probably see three different kinds of
players:
 The first one will be global transformational outsourcing suppliers with
specific areas of specialization.
 The second will be simply labour arbitrage players who offer continuous
improvements benefits.
 The Third will be niche players who offer dedicated functional services
like HR, finance and accounting and so on.

Business Process Management

ITES, Information Technology Enabled Service

IT Enabled services (ITES), also called web enabled services or remote

services or Tele-working, covers the entire gamut of operations which
exploit Information Technology for improving efficiency of an organization.
These services provide a wide range of career options that include
opportunities in call Centers, medical transcription, medical billing and
coding, back office operations, revenue claims processing, legal databases,
content development, payrolls, logistics management ,GIS (Geographical
Information System), HR services, web services etc.

The main objectives of ITES are :

» Enabling business strategy
» Achieving an organization's business goals

Business Process Management

 KPO, Knowledge Process Outsourcing

Knowledge process outsourcing (KPO) is the outsourcing of core, information-

related business activities, meaning that knowledge and information-related work
is carried out by workers in a different company or by a subsidiary of the same
organization. This subsidiary may be in the same country or in an offshore location
to save costs or other resources.

KPO sector offers organizations the choice of a multitude of knowledge-based

services across industry verticals:
 Research and Development
 Learning Solutions
 Business and Market Research
 Pharmaceuticals and Biotechnology
 Writing and Content Development
 Legal Process Outsourcing
 Intellectual Property (IP) Research
 Data Analytics
 Network Management
Business Process Management
 Current Top Indian Rankers
Genpact Firstsource Solutions Limited

Tata Consultancy Services BPO Mastek Limited

Serco Global Services Ltd Hexaware Technologies limited

Aegis Limited EXL Services

WNS Global Services Mphasis

Wipro Teleperformance

Infosys BPO Limited KPIT Technologies

Aditya Birla Minacs Cambridge Technology

HCL BPO ITC Infotech

 Why people prefer Join and Leave BPO
In gener a l a per s o n with any g r a dua tio n can j o in any o f t h e BPO. S o me BPO's l i ke t o
t a k e peo p le with MBA but then again t h e specia liz a t io n a r e o f an individua l h a r
makes any dif f e re n ce. Again, this is t h e indus t r y, w h e r e t h e r e is no r e f e r e n c e check
and ver y o f t e n peo p le d o n't even specif y t h e r e exac t age. Lets me s h a r e wit h you
so me o f t h e r e a s o ns as why peo p le pr e f e r t o j o in and l e ave a BPO:
Why People Prefer Why People Leave

1. Did not get a better job. 1. No growth opportunity/lack

2. Find nothing better to do. of promotion
3. Education level doesn't 2. For higher Salary
matter 3. For Higher education
4. Good work environment 4. Misguidance by the
5. Good Benefits company
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

Business Process Management

 SWOT Analysis for BPO in India
Strength
S
Strengths
•High degree of customer satisfaction
•Good Place to Work
•English language benefit
•Strong customer base of well
known companies
•Powerful venture capital interest in
investing in growth opportunity
O Opportunities
•Horizontal and vertical expansion of
existing customer base into new
markets
•Fast-track career
development opportunities on
an industry-wide basis
Weakness
W
•Scarce foreign language skills
other than English.
•Lack of customer service culture
•Expensive and poor quality
telecom infrastructure
•Poor electricity supply
•Cultural differences
T
Threats
•High Billing rates
•Political instability
•India's competitors in Eastern
Europe, Latin America and the Asia
Business Process Management