GUIDED BY: - PREPARED BY: -

Ms. DEEPTI VYAS SHREYAS F. MEHTA

I.T. DEPT. 6TH I.T. 01 IT 098 1
 PURPOSE OF THIS REPORT:
 Business people have always wondered about the technical aspect that brings a company
(especially IT & ITES) based from the red to the black, from a low profit organization to a
healthy high profit one. BPO has appeared as the probable answer to most organizations’
problems.
INFOSYS & WIPRO
 In this report an understanding and explanation on what business process outsourcing
is - with all its technical strengths and frailties. Thus the purpose of this report is to stress how,
when and why an outsourcing decision can be arrived at.

MICROSOFT & IBM

 It has afforded huge business opportunities in the Software and Hardware sectors to
developing countries like India. Today India has highly educated work force, convenient rupee-
dollar rates and efficient infrastructure. BPO thrives technically on these factors and many more
leading to win-win situations at both ends.

MOTOROLLA & DELL

 And finally to sum it up the analyzed Business Process Outsourcing from the perspective of
both the outsourcing organization as well as the outsourcing services provider.

 Also an attempt to study what it takes to transform a transaction-based relationship to

value-added strategic partnerships. 2
 INTRODUCTION:
What is BPO ?
 is the transfer of technical operational responsibility (outsourcing) of a complete
business process to an external service provider.

E.G.:- GENERAL ELECTRONICS OUTSOURCES TO INFOSYS

DEFINATION:
 The transfer of an organization's entire non-core but critical business process/function
to an external vendor who uses an IT-based service delivery.

CONCEPT:
 Outsourcing is an appropriately structured arrangement between an Organization
and an Outsourcing supplier to perform services.

 A successful outsourcing project is only possible if the outsourcing decision has

taken into consideration all known costs and benefits associated with the project.

 The terms IT Enabled Services (ITES) and Business Process outsourcing (BPO) are
used interchangeably now days.
INFOSYS
 ITES is basically a subset of BPO. If process that is outsourced involves use of
Information Technology it is called ITES else it just Business process outsourcing.

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 BACKGROUND:
Outsourcing as a concept is probably one of the oldest and most commonly practiced.
As the number and type of processes considered “Non-core yet critical” expand, the demand
for BPO is increasing.
 

At times these activities or business processes can be very, very critical to the survival of
an organization. But today, they are outsourced and outsourcing has proved to be beneficial
as well. 4

 
 HR finance administration Are among the most
popular business processes to outsource.
 

NASSCOM 5
 Why BPO ?

 Key reasons for outsourcing business processes include improving

service levels, increasing focus on core business, exceptionally high-
quality service providers, Improvements in communications
technology and supplementing IT resources.
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 MICROSOFT

MOTOROLA

SOFTWARE INDUSTRIES HARD-WARE INDUSTRIES

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OTHER INDUSTRIES
 Technical Pre-requisites for a successful BPO:
 Regular communication is key to the success of any partnership.
1. Stage One - Project Team building and Transition Planning:
2. Stage Two - Process Mapping and Documentation:
3. Stage Three - Train the Trainer, Establish IT Systems: SUN-MICROSYSTEMS

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 BPO EXECUTION FRAME WORK:

HEWLETT-PACKARD
SECURITY FEED-BACK

THE 5-PHASES OF BPO RELATIONSHIP

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Complete transfer of responsibility of business process.
 Re-engineering of process to enhance effectiveness.

IMPROVEMENT

GOVERNANCE

TRANSITION

PLANNING

ANALIZTION

Consistent delivery, based on mutually agreed metrics and Services

Continuous improvement of process 10
 TECHNICAL ASPECTS TO BE FOLLOWED WHILE OUTSOURCING:

 Selecting the Vendor:-

provide the same attention as the in-house team.

 Identifying Agency Needs:-

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framework for projects and activities.
 
Experience and Expertise:-
relevant past experience and skill-sets

 In-house facilities to meet the agency’s needs:-  

infrastructure
financially sound

 HR Issues :-
quality of the assignment.

 Ability to ramp up :-

flexible business model
major problems – organizational, legal etc. 12
 Security:  WHAT HAPPENS WHEN AN OUTSOURCING FIRM
GIVE UP THE PROJECT IN THE MID-WAY........
 instill a certain comfort level
 maintenance of confidentiality business data.

ORCLE-INTERNATIONAL

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 IT OUTSOURCING:
Though IT outsourcing has been happening for so many years, an increased
momentum has been witnessed since the late 1990s due to the rise of Internet
and Communication technologies.

MICROSOFT TEXAS
INTERNATIONAL INSTRUMENTS

INFOSYS WIPRO

Several global giants from various industries have begun to realize the
importance of BPO and have started outsourcing their non-core business
functions. 14

 
 THE IT OUTSOURCING INCLUDES:-

 Mainframe/Mid-range Systems:-
The upkeep and management of legacy systems are costly
distractions in every major mainframe and mid-range
computing platform, releasing the burden of managing those
legacy systems — and the expensive support facilities would be
better devoted to patient services.
PCS & TCS
 APPLICATION INFRASTRUCTURE:-
IT provides the hardware, operating system, database, security
and networking infrastructure that can account for as much as
70% of the ongoing cost of ownership of key enterprise
applications.
SATYAM COMPUTERS 15
 Distributed Systems: -
 IT can keep you current with server and OS technology while
simultaneously reducing administrative costs associated with
distributed systems.

YAHOO.COM

 GOOGLE.COM

 IT can relocate the distributed systems to our data centers and

provide all the necessary support, from security to redundancy to
system maintenance. 16
 COST REDUCTION: -
 dramatically improving workforce,
 productivity and significant cost savings.

  Outsource your Claims & Payroll Processing:-

 ENTERPRISE HELP DISK: -

 highly skilled,
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 technically proficient consultants making it an extravaganza of the call-center.
TYPES OF BUSINESS PROCESS OUTSOURCING SERVICES:

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BPO FUNCTIONS:

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INDIA – THE RISING BPO DESTINATION:

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Comparing India with other BPO Destinations:

  
 INDIAN COMPANIES WILL GET THE MAXIMUM BENEFIT
 INDIAN PROGRAMMERS WILL MAKE THE MXIMUM JOB-PROFESSION

 INDIAN ORGANIZATIONS PROVIDING COR-NONCORE FUNCTIONALITY

WILL GET THE MAXIMUM TECHNICAL CONTRACTS.
 INDIAN ENGINEERS WILL NOW BE ABLE TO ENHANCE AND IMPLIMENT21
THEIR ENNORMOUS TELENT.
THE STRENGTHS AND CHALLENGES FOR BPO IN INDIA:

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 THE INDIAN-GOVT.’S CLEAN-CHIT OF allowing American firms to establish
their own R & D centers will now ELIMINATE the THREAT for them to outsource
their business without having a BAND on BPO.
 DEVELOPMENT CENTERS : MICROSOFT ORACLE IBM
MOTOROLA G.E. DELL

 The offshore resources are typically available at nearly 40 to 60% 24

lower economic value, thus providing you huge cost benefit.
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 THREATES OF BPO:

 Though the Communications Minister, Mr. Arun Shourie, hopes that there is no
immediate threat to the Indian IT sector on the curbs imposed by the US and
other countries, India may experience a slowdown in the sector in the coming
years.

 Many Indian IT companies currently depend on outsourcing activities from

abroad. The observation that foreign companies may become uncompetitive in the
absence of outsourcing to India need not be construed as a safe cushion.
 
 Indian companies cannot depend on foreign entities forever. The large untapped
areas in the domestic field should attract the concentration of Indian
companies.

 The forthcoming changes in the international arena coupled with domestic

compulsions may bring many such decisions, which may have adverse effects on
India.
 
 The leading IT players in India should give a serious thought to this aspect and
work overnight for tiding over any such problems, rather than contentiously sitting
happy with the present foreign assignments. 26
 TOWARDS THE TECHNOLOGY:

 The vision is the application of Internet Technology to

create value for our clients. Continuously expansion of BPO
network towards Asia, Europe, and the Americas by
building state-of-the-art Global-Link Development
Center (GLDC) facilities to simultaneously manage multi-
task projects.
The expertise in this Global Communication Network
has led the world to discover innovative solutions to today's
BPO demands.
 The continuously denotations of the resources to
Research & Analysis of the BPO market to better
understand its future and to implement step-ahead
measures to guarantee the best solutions in the world of
Information Technology. 27