The document discusses outsourcing and the business process outsourcing (BPO) industry in India. It defines outsourcing as delegating a company's business processes to a third party. BPO involves contracting specific business functions like customer service or accounting to an external service provider. India has become a major hub for the global BPO industry due to its large English-speaking workforce and lower costs. The top industries for outsourcing include telecom, banking, insurance, and retail. While India has advantages, it also faces challenges like rising wages, infrastructure issues, and cultural differences.

1. GoodGood
morningmorning
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2. Vikas Kumar TyagiVikas Kumar Tyagi

3. What is OUTSOURCINGWhat is OUTSOURCING ??
• Delegating a Company’s BusinessDelegating a Company’s Business
Processes to Third PartyProcesses to Third Party
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4. What is BPO?What is BPO?
• Contracting of the operations andContracting of the operations and
responsibilities of a specific businessresponsibilities of a specific business
processes to a third-party serviceprocesses to a third-party service
provider.provider.
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5. Reasons for outsourcingReasons for outsourcing
• Reduce and control operating costsReduce and control operating costs
• Improve companies focusImprove companies focus
• Free internal resources for otherFree internal resources for other
purposepurpose
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6. BPO Categories:BPO Categories:
• Back Office outsourcingBack Office outsourcing
Internal Business FunctionsInternal Business Functions
• Front Office outsourcingFront Office outsourcing
Customer Related servicesCustomer Related services
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7. Certain terms :Certain terms :
• OffshoreOffshore
• Near shoreNear shore
• InshoreInshore
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8. What BPO Provides
Human Resource Finance
Market Research Network Consultancy
Technical Support Collections
Transaction Processes Accounting
Administration Training
Customer Care
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9. Sectors:Sectors:
• Telecom IndustryTelecom Industry
• Travel & Hospitality IndustryTravel & Hospitality Industry
• Technology IndustryTechnology Industry
• Banking/Financial servicesBanking/Financial services
• Insurance IndustryInsurance Industry
• E-commerce & Retail IndustryE-commerce & Retail Industry
• Industrial SectorIndustrial Sector
• Distribution Sector & many moreDistribution Sector & many more
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10. Market Share:Market Share:
• BPO and ITes Contributes 7% to GDPBPO and ITes Contributes 7% to GDP
• The global BPO Industry is 120-150 billion dollarsThe global BPO Industry is 120-150 billion dollars
• Indian BPO is US $11.4billion.Indian BPO is US $11.4billion.
• 824 call centers in India.824 call centers in India.
• Indian IT-BPO recorded Growth of 28% in FY 2007-08.Indian IT-BPO recorded Growth of 28% in FY 2007-08.
• Expectations of $30 billion by 2012.Expectations of $30 billion by 2012.
• Around 6,00,000 people employed, about the same as ITAround 6,00,000 people employed, about the same as IT
industry but It’s growing faster.industry but It’s growing faster.
• Indian BPO players are ranked top global players inIndian BPO players are ranked top global players in
every single segment because they invest massively inevery single segment because they invest massively in
training, quality assurance, productivity improvement andtraining, quality assurance, productivity improvement and
information security.information security.
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11. Distribution of BPO providers in %
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12. India’s Top 5 BPO’sIndia’s Top 5 BPO’s:: World’s Top 5 BPO’sWorld’s Top 5 BPO’s
1.1. GenpactGenpact
2.2. WNS(WorldWNS(World
Network Solutions)Network Solutions)
3.3. WiproWipro
4.4. HCLHCL
5.5. Firstsource(ICICI)Firstsource(ICICI)
1.1. IBM GlobalIBM Global
2.2. AccentureAccenture
3.3. Hewlett PackarHewlett Packar
4.4. MphasiSMphasiS
5.5. Ernst &Ernst &
Young/CapgeminiYoung/Capgemini
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13. Leading BPO-ITes cities in IndiaLeading BPO-ITes cities in India::
• Tier ITier I cities likecities like
Bangalore, Chennai, Hyderabad,Bangalore, Chennai, Hyderabad, NCRNCR,, PunePune,, MumbaiMumbai,,
KolkataKolkata..
These are leading IT cities. With rising infrastructureThese are leading IT cities. With rising infrastructure
costs BPO’s are shifting operations to.costs BPO’s are shifting operations to.
• Tier IITier II cities likecities like
Nashik, Aurangabad,Nashik, Aurangabad, MangaloreMangalore,, ChandigarhChandigarh,, JaipurJaipur,,
MysoreMysore etc.etc.
– Offers lower Business process overhead(rent,Offers lower Business process overhead(rent,
electricity).electricity).
– Have a less reliable infrastructure system.Have a less reliable infrastructure system.
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14. WhyWhy IndiaIndia is more preferableis more preferable
• English speaking populationEnglish speaking population
• Educated technically skilledEducated technically skilled
employeesemployees (large no. of graduates,(large no. of graduates,
engineers)engineers)
• Telecom facilities.Telecom facilities.
• Favorite govt. policiesFavorite govt. policies
• Lower wagesLower wages (cost reduction up to 50% )(cost reduction up to 50% )
• Suitable & large human resourcesSuitable & large human resources
• Well positioned with IT-enabledWell positioned with IT-enabled
servicesservices
• Conductive environmentConductive environment
• Favorable time lagFavorable time lag (12 hrs with USA 5 hrs(12 hrs with USA 5 hrs
with UK)with UK)
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15. Problems in India :Problems in India :
• Poor infrastructurePoor infrastructure
• Cultural differencesCultural differences
• Internal competition for resourcesInternal competition for resources
• Rising labor costsRising labor costs
• Political and religious instabilitiesPolitical and religious instabilities
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16. Why it attracts peopleWhy it attracts people
• It don’t require any academicIt don’t require any academic
specializationspecialization
• No specific age barNo specific age bar
• Offer good work environmentOffer good work environment
• Good wages along with some excellentGood wages along with some excellent
benefitsbenefits
• Provide transport facilitiesProvide transport facilities
• Attractive lifestyleAttractive lifestyle
• Flexibility of timeFlexibility of time
• Self independenceSelf independence
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17. Why people dislike or leave thisWhy people dislike or leave this
• TediousTedious
• MonotonousMonotonous
• Sleepless nights /Physical strainsSleepless nights /Physical strains
• Some people leave forSome people leave for
Higher educationHigher education
Higher salaryHigher salary
Better statusBetter status..
• low brand equitylow brand equity
• Lack of focused training and certificationsLack of focused training and certifications
• No growth opportunity/lack of promotionNo growth opportunity/lack of promotion
• No personal/ social lifeNo personal/ social life
• No technical/professional gainNo technical/professional gain
• Lack of focused training and certificationsLack of focused training and certifications
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18. Problems:Problems:
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19. Key To success:Key To success:
• Rapid training moduleRapid training module..
• Providing Employee BenefitsProviding Employee Benefits
PF InsurancePF Insurance
Gratuity AccommodationGratuity Accommodation
Loans Educational BenefitsLoans Educational Benefits
Performance based incentivesPerformance based incentives
Flexi-time Maternity LeaveFlexi-time Maternity Leave
• Career growth opportunitiesCareer growth opportunities
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20. Challenges to be faced
Ahead…
• Retention of clients, employees
• Quality and compliance issues
• Emerging Foreign Destinations
• Physical Infrastructure
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21. Vikas Kumar TyagiVikas Kumar Tyagi