BPO: Business Process

Outsourcing
 CATEGORIES:

 Outsourcing can be divided into two broad

categories:
 BPO
 KPO

 Apart from BPO and KPO, ITO or Information

Technology Outsourcing is another major category
 KPO or Knowledge Process
Outsourcing

 Typically calls for work that needs higher levels of

involvement from the worker.

 The worker has to employ advanced levels of

research, analytical and technical skills and has to
make decisions of a higher order than BPO work.
 Business process outsourcing
(BPO)
 A form of outsourcing that involves the contracting
of the operations and responsibilities of a specific
business functions (or processes) to a third-party
service provider.
 Originally, associated with manufacturing firms, such
as Coca Cola that outsourced large segments of its
supply chain.
 In the contemporary context, it is primarily used to
refer to the outsourcing of services.
 BPO: categorization

 Back office outsourcing

 Offshore outsourcing
 Nearshore outsourcing
 Information technology enabled
service or ITES.
 On The Basis Of Process :-

 Inbound Call Centre: The inbound call

centers are those that only receive the calls usually
on toll free numbers from the customers.
 Outbound Call Centre: Outbound call centers
deals with telemarketing and product promotion.
It requires technical experience and expertise to
ensure the clients that you are the company that
is best.
 Call routing

0800/0845
Virtual centre

US Purchasers of European and

(DELL) OptiPlex Asian purchasers of
desktop and Latitude OptiPlex desktop and
notebook Latitude notebook

US sites Bangalore
 Why BPO
 Expensive to hire best people in company.
 Therefore many companies have chosen to
outsource various aspects of MIS functions.
 A specialized firm can always offer better
services at better price.
 Worldwide spending on BPO services reached
$405 billion in 2003, an increase of about 8%
from 2002. Revenues are expected to grow at a
compound annual rate of 11% through 2008,
when they will total $682.5 billion.
Business Process Outsourcing includes the following
areas and a lot more:
 What to Outsource

 Processes that do not add value to a product or

service.
 Highly repeated tasks with little variation.
 Labor intensive tasks that do not require a
companies intellectual property nor core
competencies.
 Processes that will tie up large amounts of
capital in assets.
 Pros and Cons of BPO
pros
 English Language
Proficiency
 Skilled Workforce
 Lower Wages
 Flexibility in Working
Hours
 Suitable Human Resources
 Large Number of Graduates
cons
 Poor Infrastructure
 Cultural Differences
 Internal competition for
resources
 Rising labor costs
 Political and religious
instability
 BPO to India

 Indian revenues from BPO are estimated to have

grown 107% to $ 583 million.
 Leading Competitors:
- Philippines, Mexico, Canada, China and
Ireland.
 67-72% of costs to call centers operating in the
US/UK is directly linked to man power costs. India
only spends 33-40% of costs on man power. This
includes training, benefits and other incentives for
labor.
 Capabilities: Why go to India?

Language
Educated Employees
Infrastructure
Government
 Findings indicate that the 50 locations in India are categorized
along a typical four stage development path
Location Classification
Increasing Location Attractiveness

Leaders Challengers Followers Aspirants

• Ahmedabad • Aurangabad • Allahabad
• Bhubaneshwar • Bhopal • Dehradun
•Bangalore • Chandigarh • Goa • Durgapur
•Chennai
• Coimbatore • Gwalior • Gangtok
•Hyderabad
• Indore • Hubli-Dharwad • Guwahati
•Kolkata
•Mumbai • Jaipur • Kanpur • Ludhiana
•NCR • Kochi • Mysore • Patna
•Pune • Lucknow • Nashik • Raipur
• Madurai • Pondicherry • Ranchi
• Mangalore • Salem • Shimla
• Nagpur • Surat • Siliguri
• Thiruvananthapuram • Vijayawada • Srinagar
• Tiruchirappalli • Varanasi
• Vadodara
• Visakhapatnam
 WNS ICICI OneSource
 Wipro Spectramind Emphasis BPO Services
 Daksh e-Services EXL Services
 Convergys India Services Tracmail Group
 HCL Technologies GTL Ltd
 BPO Services Customer
 Zenta Technologies Hinduja TMT

24x7 Customer
• The future for the IT/BP industry holds bright. It is estimated that 56% of
• the BPO market could be India's by the year 2011 with the demand for BPO
services increasing at an annual growth rate of 50 per cent. The pace at which the
Indian BPO market is increasing is tremendous. The market of BPO in India is
likely to be around $9-12 billion by the year 2015 and will employ around 0.4
million people.The BPO market is ready to fire up and India Inc is all geared for
this big opportunity.There is a long way in making India the BPO super power of
the world.
 REFERENCES:

http://www.bpoindia.org/

http://www.forbes.com/bow/b2b

http://www.indobase.com

http://www.informationweek.com

http://searchcio.techtarget.com

http://www.xicom.biz