Ishpreet Singh – 12P139 Karan Jaidka – 12P141

Lucky Sharma – 12P145 Prabhat Singh– 12P154

Vignesh Patil – 12P177 Viswanath Kuppa – 12P180

PGPM – Section C – Group 9

What is BPO?

Video

Types of outsourcing

Footprints of BPOs

Functions of BPO – A brief

IT-BPO Contribution to the Indian Economy

Why India is a preferred BPO destination

Advantages and Limitations of BPO

BPO vs KPO

BPM

Top BPO firms (Indian and Global)

Agenda

What is Business Process Outsourcing? Business process outsourcing (BPO) is a subset of

outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider.

Originally associated with manufacturing firms

Video time!

So much variety!

Back office Outsourcing

Front office Outsourcing

Offshore Outsourcing

Nearshore Outsourcing

Information Technology based Outsourcing

Knowledge Process Outsourcing

Legal Process Outsourcing

Telecom Industry

Travel & Hospitality Industry

Technology Industry

Banking/Financial services

Insurance Industry

E-commerce, Retail and Distribution Industry

Industrial Sector

We’re present almost everywhere!

Accounting

Managing finances, maximizing tax deductions, filing taxes, providing business and investment advice and developing effective budgets and cash flow projects – all through the services of a Certified Public Accountant (CPA)

What we like doing! (1/3)

Tax Preparation A tax preparation service can

reduce tax liabilities by ensuring compliance to tax rules and timelines. They help businesses save tax wherever possible – sale or purchase of business, e-commerce transactions, disputes, and so on.

Website Design

A business or e-commerce website design is crucial in keeping customers engaged and encouraging repeated visits.

This happens to be one of the most outsourced components of a company’s functioning.

What we like doing! (2/3)

Customer Service Outsourcing

Companies are outsourcing customer service to focus on core business competencies and operations.

In addition, cost reduction, declining in-house capabilities, and increased demand for customer support channels are driving outsourcing of customer service.

Human Resources Outsourcing

Combines global sourcing and delivery capabilities to offer flexible and cost-efficient solutions for acquiring, administering and developing talent.

Enable customers to embark on the HRO journey easily and realize benefits promptly. 

What we like doing! (3/3)

Sourcing and Procurement Outsourcing

Provides transformational benefits across the entire Source-to-Procure and Payment value cycle.

Sourcing and Procurement has become a critical area for companies implementing cost-cutting measures. 

Aggregate revenues crossed the USD 100 billion mark, exports at USD 69 billion during FY12

Software and services revenues (excluding Hardware), comprising nearly 87 per cent of the total industry

Net employment generator - expectedly added 230,000 jobs in FY12, thus providing direct employment to about 2.8 million, and indirectly employing 8.9 million people

As a proportion of national GDP, the sector revenues have grown from 1.2% in FY98 to an estimated 7.5 per cent in FY12

IT-BPO Contribution to the Indian Economy

Size of the Indian IT-BPO industry from 2005 to 2011 and its growth

82% of US–based companies have voted for India as their first and most preferred choice for software outsourcing, over China and the Philippines

Indians are enthusiastic and career–focused, who constantly upgrade their skills through training and certificate programs

Over 350 million people in India are fluent in the English language, so Indians do not pose a language problem

India has a huge talent pool of experienced specialists - 3.1 million students graduate annually from Indian universities in various fields such as software programming, accounting or law

Indians work like crazy!! Many Indians work eight hour shifts for six days a week. Indians also willingly work around the clock to compensate for the time difference between India and the US or UK

We love you India!

Save big! Taking advantage of the cost benefits

Getting access to specialized services

Reduced time to delivery, companies benefit from time zone advantages

Scaling operations up or down without the hassle of hiring and training

Improved customer satisfaction due to high quality and fast delivery

Key employees are released from performing non-core or administrative processes and can invest more time and energy in building the firm’s core businesses

A company may be able to grow at a faster pace as it will be less constrained by large capital expenditures for people or equipment that may otherwise take years to amortize

Please go ahead and outsource!

The advantages don’t just end there!

Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective

In countries like India and Philippines, the BPO sector is known for rising incidence of lifestyle and work related illnesses

The BPO phenomenon has created an illusion of prosperity and higher standard of living for the employees

Countries like India have to contend with a large workforce that ape the West without having the infrastructure or the amenities that the West enjoys

Hold on! There’s a flip side too…

KPO is a subset of BPO. KPO involves outsourcing of core functions which may or may not give cost benefit to the parent company but surely helps in value addition

On the other hand, highly specialised and knowledge based services are outsourced to KPOs. These activities are directly related to core offering of parent company

The motive behind KPO is not only to reduce cost but to get specialised solutions for which availing in-house resources might be tough

KPO job requires one to be competent in a particular field. Also, the training provided by the KPOs is more rigorous and sector specific

BPO versus KPOBPO is outsourcing of some of the business functions to a third party in order to save money

BPOs usually deal with fringe business activities such as customer care, finance and HR

USP of a BPO is their being cost effective

Basic education may be enough to get a BPO job

According to NASSCOM, the IT industry body of India, the acronym BPO which stands for business process outsourcing, no longer suits the outsourcing industry considering the maturity level it has attained now

  Indian outsourcing industry has moved up the value chain from just being a third party service provider to being a business partner who manages the entire business process of their clients

Indian BPO companies are shifting from being efficient to effective by taking up the responsibility to manage the processes that could transform the business outcomes for the clients

Rebranding BPO to BPM

Top Indian BPO Firms

We’ll do it for you!Top Global BPO Firms