INDIAN BPO INDUSTRY

BPO=

Outsource non-core activities

Outsourcing can be defined as An organization entering into a contract with another organizationto operate and manage one or more of its business processes

Why Outsource Work?• Because you don't have the time to do it yourself.

– You may have got a product to develop and you've got to get it into the market before your competitor does.

• Because you don't have the money to do it yourself.– Your business is growing exponentially but your

resources can't cope with the growth.• Because you'd rather focus on mission-critical

issues.– You're not interested in frittering away time and

energy on non-core functions.• Because you don't have the skills to do it yourself.

– You need the best talent in the world, but it's scarce/out of reach/ just not available or just too expensive.

• Because its cheaper.– You want to save on costs while keeping the long term

perspective also in view.

India BPO - Cost Structure

Improved ROI through higher asset utilization and lower operating costs

At Par

UK India

Capital Costs

2-2.5

TimesAsset Utilization

50-60%

LowerLabour Cost

6

Potential Across the Value Chain

Source: NASSCOM-KPMG 2004

Finance and Accounts

Product Development

Human Resources Management

Technology ServicesIn

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Human Resources• Payroll Processing• Recruitment and

selection support• HRIS

IT Services and Support• Custom development• Systems integration• Hosting / maintenance• Customer help desk /

support

Operations / logistics• Order tracking• Order / claims /

application processing• Payments processing

Sales / Marketing and Customer Service

• Tele-sales• Order Processing• Customer services and

Complaints• Help-desk

Finance and Accounting• Back-office• Accounts

payable/receivable• Financial reporting• Finance accounting• Revenue accounting

Research / Design and Development

• Clinical research• VLSI design• DSP chip design• Avionics research• Engineering design

services• Legal research

KEY GROWTH DRIVERS

ABUNDENT TALENT

• COST COMPETITIVENESS

FOCUS ON QUALITY

• INFORMATION SECURITY

KEY GROWTH FACTORS

RAPID GROWTH IN KEY BUSINESS INFRASTUCTURE

ENABLING BUSINESS POLICY

HIGHLIGHTS OF INDIAN ITES/BPO

• EXPORTS GREW FROM USD 6.3 bn IN FY 05-06 TO USD 8.4 bn IN FY 06-07

• EMPLOYEE BASE GREW FROM 415000 TO 553000 IN LAST ONE YEAR

• SCOPE OF SERVICES EXPANDING• DOMESTIC MARKET GREW FROM USD 0.9 bn

TO USD 1.2 bn

TYPES OF SERVICES OFFERED BY BPO

• CUSTOMER SUPPORT SERVICE• TECHNICAL SUPPORT SERVICE• TELEMARKETING SERVICE• EMPLOYEE IT HELPDESK

SERVICE• INSURANCE PROCESSING• DATA ENTRY SERVICES• DATA CONVERSION SRVICES

TYPES OF SERVICES OFFERED BY BPO

• SCANNING ,OCR WITH EDITING

• ACCOUNTING AND BOOK KEEPING

• FORM PROCESSING• INTERNET ONLINE WEB RESEARCH

ANCHOR SEGMENTS OF INDUSTRY

Competitor landscape is changing

BPO players in India

BPO start-ups (funded primarily by VCs)

Global BPO providers having an Indian offering

BPO businesses of large Indian business houses

BPO arm of Indian IT services players

ONE SOURCE

~ 7,000 heads

~ 4,000 heads

~ 4,000 heads

~ 4,500 heads

~ 10,000 heads

~ 3,000 heads

~ 1,200 heads

~ 2,500 heads

~ 4,000 heads

~ 8,000 heads

~ 4,700 heads

~ 9,800 heads

~ 1,200 heads

MAJOR PLAYERS

• WNS GROUP• WIPRO• IBM DAKSH• CONVERGYS• HCL TECHNOLOGIES• EXL• ZENTA

GOVERNMENT INITIATIVES

• ESTABLISHMENT OF STPI

• TAX HOLIDAYS• BASIC

INFRASTRUCTURE• SINGLE WINDOW

CLEARENCES FOR SETTING EOU

• TELECOM SECTOR DEREGULATION

• PROGRESSIVE POLICY(FISCAL AND

TRADE)• AREA LIMIT

EXEMPTION IN SEZ POLICY

http://www.vertex.co.uk/vertex/main/home.jsp

THANKS