A

PROJECT REPORT

ON

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TABLE OF CONTENT

1. INTRODUCTION 4

2. INDUSRY PROFILE 7

3. HISTORY 8

4. CURRENT SCENARIO 14

5. BPO IN INDIA 27

6. SWOT ANALYSIS OF BPO 30

7. PORTER FIVE FORCE MODEL OF BPO 31

8. TOP FIVE COMPANIES 32

9. COMPANY PROFILE 33

9. WEBLIOGRAPHY 57

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INTRODUCTION

Business Process Outsourcing:

Companies are increasingly outsourcing key business functions and their related IT

operations. The BPO industry is built around the raison d’ etre of efficiency and cost-

effectiveness. With the current focus on core business capabilities, many companies are

outsourcing select business functions to expert partners. BPO takes a set of activities and

takes on the responsibility of reengineering the entire way the operation is done. Outsourcing

is required in different areas like Finance, Health, Accounting, Human Resources of

companies, etc. Globalization, competitive markets, and mergers and acquisitions are the

primary stimuli for business-process outsourcing. By outsourcing business processes,

companies can get a firm assessment of the cost of running their operations.

Business Process Outsourcing (BPO) Benefits

  BPO is important because it links to shareholder value.

As customers have become more sophisticated, they have come to realize that the

goal is to link business performance to shareholder value. Business Process

Outsourcing or BPO has gained prominence because people have asked, "When do I

get the business result?" BPO is about optimizing business performance to drive

value creation.

  Executives want shareholder value from investments.

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This is an important shift in management thinking with respect to IT and shared

services. They want to know how your shared services and world-class processes are

creating shareholder value for the firm. They are likely to ask, "What about partnering

with a supplier to sell our capabilities to the outside?"

  BPO has emerged as a repeatable model for reducing costs while increasing

service quality.

Businesses have worked for decades to use alliances to combine and leverage their

unique skills and access to markets. The building of core functions, while outsourcing

non-core functions, has moved from theory to practice. This trend has become

increasingly important as globalization expands the range of competitors and

innovation rapidly raises the bar in many non-core areas.

  Business Process Outsourcing (BPO) is often the next step after shared

services.

Companies that have centralized services and created a shared services organization

have already handled some of the change management issues that arise from Business

Process Outsourcing or BPO. They also often see the next step as BPO.

  Some functions, such as procurement, are no longer buried in the back office.

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What once was considered a necessary evil - procurement - is now laden with big

expectations. But CEOs do not want to know how you do it, they just want you to do

it. Outsourcing procurement is particularly appealing to corporations with large

decentralized spend, where corporate controls little or nothing.

  You can now make a business case for BPO outsourcing.

Companies generally outsource processes to shift accountability and control costs.

Management can then focus on core areas, and not have its attention diverted to other

areas. Outsourcing also allows companies to avoid capital expenditures, which is

especially important in non-core areas that may need new systems. Generally,

companies only want to spend money on core areas.

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INDUSTRY PROFILE

Potential of BPO

The ITES industry, of which BPO forms a very important part, is expected to be a $17 billion

industry in India and generate over 1.1 million jobs by 2008. The sector has grown by 73%

during the last fiscal and recorded revenues of Rs. 7,100 crore.

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HISTORY

The concept of outsourcing started with Ross Perot when he founded Electronic Data

Systems in 1962. EDS would tell a prospective client, "You are familiar with

designing, manufacturing and selling furniture, but we're familiar with managing

information technology. We can sell you the information technology you need, and

you pay us monthly for the service with a minimum commitment of two to ten years.

BPO is the act of transferring some of an organization's repeated non-core and core

business processes to an outside provider to achieve cost reductions while improving

service quality. Because the processes are repeated and a long-term contract is used,

outsourcing goes far beyond the use of consultants. If done well, BPO results in

increasing shareholder value. The main difference between BPO and more traditional

IT outsourcing is that BPO offers companies a way of achieving transformational

outcomes much more quickly. In a typical BPO contract, a service provider takes

over a specific corporate function. Effective BPO encompasses much more than just

changing who is responsible for performing the process. In BPO, the outside provider

not only takes on the responsibility to manage the function or business process, but

also re-engineers the way the process has been traditionally doneOutsourcing became

a catchphrase in business areas in the 1990s. It was a well appreciated addition to the

business lexis This market comprises 9 business functions of human resources,

procurement, finance and accounting, customer care, logistics, engineering/R&D,

sales and marketing, facilities operations and management and training. Outsourcing

is a corporate strategy that companies adopt to enhance competitiveness of the

company. By outsourcing non-core part of business operation and only concentrating

on the core competence, companies can increase the productivity and efficiency in

management.

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Outsourcing as strategy is not new. Some examples of Outsourcing, such as GM and

EDS, Xerox and EDS, Kodak and IBM, are more than a decade old. Over the years,

the scale and scope of Outsourcing has evolved considerably. It has also migrated

from primarily Fortune 500 companies to large and midsized companies.

Since the 1970s, many Western companies began manufacturing products in offshore

locations such as Japan, Korea, Thailand, and Taiwan. Despite the relatively high cost

of transporting the goods by sea and air, it was cheaper to make them in the Far East

(and in Mexico after the NAFTA treaty) than to keep manufacturing in the United

States or Europe.

Most companies are now adjusted to manufacturing being done offshore. What took

place in manufacturing is now occurring in back-room processing and services. Ten

years ago, if anyone had boldly predicted that by 2003 we would begin to see back-

room service centers and call centers housed in India or the Philippines, they would

have been laughed at. How could high-touch customer service agents who interact

directly with customers work halfway around the world? The cost would be

prohibitive given that monitoring the agents would be impossible and every call

would be international.

Manufacturing and service outsourcing have changed over the years. It is a

macroeconomic trend to which every company needs to react. If your competitor can

make a product and provide associated services for less than you, then you need to

follow, or risk being put of out of business.

Although initially low-skilled jobs such as manufacturing, call center, and computer

coding were shifted abroad, as more companies expand their offerings into

outsourcing, new functions like human resources and knowledge skills like

technology are being outsourced. As the worldwide migration continues and the

movement overseas matures, more high-skilled jobs such as accounting and

engineering will likely be sent abroad.

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As functions are outsourced, more standards in processes are created. Just like in

ERP where business processes such as finance and manufacturing were standardized,

a similar thing will happen in HR, logistics, and accounting processes. Also new

technologies such as Business Process Management and self service portals will help

accelerate the push to outsourcing.

The next generation of Business Process Outsourcing has emerged as a priority for

businesses looking to better options in managing their application portfolios. The first

wave offered low-cost, off-shore development labor, but today firms are demanding

new, less risky options for applications that are strategic, complex, or mission-critical,

while still taking cost into consideration. Outsourcing has moved from a niche

technology management tool to a mainstream strategic weapon. Business Process

Outsourcing leverages process driven efficiencies in terms of organizational

excellence, responsiveness & branding, financial efficiency and customer

relationship. BPO is emerging as a powerful and flexible approach that business

leaders can use to achieve a wide range of tactical and strategic aims.

The most common business process that gets outsourced is call centers. Call centers

and Help Desks of many multi national and fortune 500 companies are being

outsourced to low waged, English speaking countries such as Philippines and India.

Countries like India with vast IT human resources are also attracting outsourcing

from American IT/Technology companies to outsource their IT Help Desks. Many of

these help desks are state of the art with latest Help Desk software and help desk

hardware with technical savvy IT graduates behind them answering your questions.

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BPO MARKET ANALYSIS:

Business Process Outsourcing (BPO) Market Analysis

  The Business Process Outsourcing (BPO) market is expanding

Successful providers have best practices, methodologies, and industry standards that allow

deals to get done quickly. The entire BPO field has learned from past deals, so we now see

bigger deals with better foundations. As a result, BPO is continuing to be used in new

functional areas, new industries, and across the world.

  BPO has come a long way in the past three years.

Three years ago, BPO meant payroll processing and benefits administration - not exciting enough to talk about at a conference. Mainly the big consulting firms were talking about it, said Scholl of Gartner Dataquest. Since then the mega-deals have become very important in shaping the new form of Business Process Outsourcing or BPO. The field has become much more segmented, complicated, and sophisticated. It will fundamentally change how businesses work.

The BPO market is growing, but not as fast as expected.

Business Process Outsourcing (BPO) is still the top growth market for IT services, but several factors - the economy, the BPO adoption curve, and the technology innovation downturn - have slowed its growth. BPO is driving growth in system integration and IT services. Every single BPO engagement includes sub-components of IT consulting, application development, IT outsourcing, and process management.

The key drivers of Business Process Outsourcing (BPO) have changed.

Cost savings and variable cost structures are more important. Information security, the ability

to execute, and business continuity have also become more important. But strategy and

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transformation are less important. As are innovative financial and tax structures.

Technology management - including IT outsourcing - is moving into the hands of process-based management organizations.

Of 50 CIOs surveyed, on average, they outsourced 28 percent of their IT budget, said Bobby

Cameron, Principal Analyst at Forrester Research. And they are looking to outsource 34

percent. One company has out-sourced 76 percent of its IT. This is just the tip of the iceberg.

The ITO paradigm is being restructured. IT organizations used to build everything. Now an

increasing amount of their work is below ground. The emerging business model is

collaborative and operates at a process level. Firms specialize in their core competencies and

collaborate with other specialists for the balance of the work. The technology to operate these

outsourced processes - which used to be supplied by internal IT - is now provided by the

process outsourcer.

The market drivers are more practical than in the past.

Gartner Dataquest conducts a BPO survey every fall. In fall 2001, the top two drivers of

Business Process Outsourcing (BPO) were focus on core business and reduce costs, both of

which are more practical than the previous year's top driver: gain competitive advantage.

Companies are either doing BPO or not even planning to do it.

There's not much middle ground at the moment, said Pierre Mitchell, Vice President of Research at AMR Research. A joint survey by AMR Research and CFO Magazine found that those doing BPO are aggressively doing it in non-core areas to save money or gain expertise. It's not about reducing headcount or reducing capital costs. Travel and payroll are the most outsourced functions, by far, ahead of outsourcing accounts payable, asset management, expense reporting, indirect procurement, recruitment, direct procurement, and warehousing. As big suppliers become committed to procurement BPO, it is growing. The top three criteria are vendor viability, domain expertise, and price. And while 64 percent of the respondents said BPO is growing (and only 2 percent said it was shrinking), only 55 percent justified Business Process Outsourcing (BPO) on return on investment - even though they should, to show that value is delivered. CFOs are involved in 90 percent of the decisions. The average contract life is one-year (41.4 percent) and three-year (28.8 percent), but 50 percentage.

  BPO staff will come from numerous sources.

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People from industry may have process experience on a large scale, but they often do not

have multi-client skills, which they need because they must serve different clients in different

ways every day. Some people come from consulting, but they often lack operating

experience. And IT people lack domain (process) expertise. As a result, BPO providers must

mix-and-match skills from these different sources.

 Integrators with outsourcing expertise are gaining ground on BPO specialists.

The integrators are learning specialty areas more quickly than the specialists are learning to form outsourcing agreements and manage service delivery.

The next generation of procurement outsourcing will be procurement utilities.

These are utilities that companies "plug into" to get the procurement services they need. These utilities will have standardized processes, a common infrastructure, and a menu of procurement services. Companies will select from the menu and thereby leverage the common processes and infrastructure.

  Business Process Outsourcing (BPO) expansion is going to be infinite.

Providers will find ways to get to this higher-margin work. In fact, the Business Process Outsourcing (BPO) marketplace is similar to the ITO marketplace in 1992-93. That's when CEOs and CFOs asked their CIO

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CURRENT SCENARIO:

BPO includes:

Customer Service Interaction including Call Centers – Call Centers are expected to grow to

Rs. 3,000 crore in 2002-03 and maintain a 45% growth rate for the next few years. With the

advantage of English speaking population, low cost manpower and quality service, many

companies are increasingly outsourcing their operations to India.

Back Office operations/Banking/Revenue/Accounting/Data Conversion/HR etc. - Verticals

such as banks and aviation require large-scale data processing and data based decision-

making capabilities. Raw data and or paper documents are sent to remote locations (IT-

enabled destination) where data entry and necessary reconciliation is carried out.

Transcription Services - Medical transcriptions involve the transcribing of medical records

from audio format or dictated by doctors or other healthcare processionals into either a hard

copy or electronic format. Doctors overseas record their findings into a Dictaphone or any

other such device and the sound tracks are transferred through datacom links to ITES

companies specializing in this area.

Content Development/Animation etc. – India’s strength lies in her low cost, high quality

manpower. The same applies in these two fields. With the animation industry slated to be to

the tune of $ 70 billion by 2005, much of the work will be outsourced to countries like India.

Data Research, Market Survey, Consultancy, Management etc.

Advantages of BPO

Achieve cost reductions – this is made possible through process improvements,

reengineering, and use of technologies that reduce and bring administrative and other costs

under control.

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Key in on company’s main business – with the day-to-day back office operations taken care

of, the management is free to impart more time to building the company’s core businesses

Obtain outside expertise – Rather than recruiting and training personnel, BPO ensures that

domain experts from another company provide the needed guidance and skills.

Meet constantly changing customer demands – many BPO vendors provide the management

with flexible and scalable services to meet the customers’ changing requirements, and to

support company acquisitions, consolidations, and joint ventures

Achieving revenue increases – by outsourcing non-core processes, companies can focus on

increasing their sales and marketshare, develop new products, expand into new markets, and

enhance customer service and satisfactions.

Opportunities

India's abundant skilled manpower has made it a target destination for multinationals

to back end their operations in India. India ranks high in areas such as qualifications,

capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead

of competitors such as Singapore, Hong Kong, China, Philippines, Mexico, Ireland,

Australia and Holland, among others. Indian companies have unique capabilities and

systems to set, measure and monitor quality targets. In specific ITES categories,

Indian centers have achieved higher productivity levels-for example, the number of

transactions per hour for back office processing, than their Western counterparts.

Also, India is able to offer a 24x7 service and reduction in turnaround times by

leveraging time zone differences. India's unique geographic positioning makes this

possible.

This is also mirrored in number of software service companies announcing plans to

enter the segment. Infosys Technologies has floated a new venture, Progeon, Wipro

has invested in Spectramind, while Call Centers like Customer, iSeva are all set to

increase their seat-capacity. More than 15 global companies including GE, HSBC,

HP, Dell Computers, British Airways, Ernst & Young have announced plans to set up

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offshore BPOs. HP and GE plan to set up back-office operations in Bangalore, with a

combined seat capacity of more than 4,000.

The pros & cons of outsourcing :

Third Party Service Providers (TPSPs)

Usually TPSP already has expertise and

experience with other clients in similar

business lines.

Very competitive pricing / flexibility to

assess various TPSPs

No infrastructural / capital investment.

Payback period very less (usually between

6 months to a year).

Flexibility to source multiple TPSPs.

Flexibility to scale up and down business

relationship.

Can exit from one relationship and move

to another .

Retains decision-making, therefore

relationship with TPSP is clear (fee-based,

quality-based); no staff backlash.

As TPSP works towards a profit there is

more business commitment.

Customised solutions ensure data security

and safety.

Captive centres

Build expertise from scratch by

redeploying resources. Latter option

more expensive.

Unit costs higher.

High capital investment.

Payback usually between 3 and 5

years.

Committed to bringing in economies

of scale, hence the need to establish a

sufficiently large centre.

Committed resources reduces such

flexibility, else training costs could

shoot through the roof.

No exit possible without incurring

high costs.

May or may not retain decision-

making. Possibility of backlash from

senior management personnel.

Captive units are usually cost centres.

Long-term strategy looks for

establishing centres

The pros & cons of outsourcing to third party vendors:

Advantages

Focus on core business issues.

Disadvantages

Burden of excess capacity or challenge of

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Benefit from best-of-breed solutions.

Better quality at lower costs.

Better process maturity, resource

flexibility and economies of scale.

Flexibility in deploying new

technology.

Quick wins with outsourcing.

insufficient capacity is done away with.

High unit personnel cost.

Tight business margins.

Not enough financial muscle to sustain very

tight payback periods.

Source: neoIT

The pros & cons of outsourcing to a captive centre:

Advantages

Securing data is less complicated.

Capture margins that would

otherwise go a TPSP.

Decision making authority

contained within the organisation.

Tighter management control.

Disadvantages

Expensive specialist skill in host countries.

Compliance and legal restrictions.

Unavailability of skilled manpower due to

market stagnation.

Requires considerable effort in terms of

management's time and attention to establish

Source: neoIT

Jobs moving from US offshore:

Sl.No Number of U.S. Jobs Moving Offshore

  Job Category 2000 2005 2010 2015

1 Management 0 37,477 117,835 88,281

2 Business 10,787 61,252 161,722 48,028

3 Computer 27,171 108,991 276,954 72,632

4 Architecture 3,498 32,302 83,237 84,347

5 Life Sciences 0 3,677 14,478 36,770

6 Legal 1,793 14,220 34,673 74,642

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7 Art, Design 818 5,576 13,846 29,639

8 Sales 4,619 29,064 97,321 26,564

9 Office 53,987 295,034 791,034 1,659,310

  Total 102,674 587,592 1,591,101 3,320,213

Source: U.S Department of Labour and Forrester Research, Inc.

The current salaries in the BPO world in India:

Customer Care Representatives [CSRs]: Rs 8,000 - Rs 15,000 per month

Team Leaders: Rs 17,000 - Rs 26,000 per month

Managers: Rs 3 lacs - Rs 5.5 lacs per annum

Training Heads: Rs 8 lacs - Rs 12 lacs per annum

Training Managers: Rs 5 lacs - Rs 8 lacs per annum

Trainers: Rs 2 lacs - Rs 5 lacs per annum

Specialized ITeS professionals who posses MBA, BE, B.Tech, C.A. [CPA] and other expert

qualifications or experience may be paid higher salaries depending upon the expertise

required for the desired work profile and their level of experience. Frankly, this doesn't apply

to just BPO field but to all fields.

The cost of accent training:

The training costs for an employee in a call centre are quite prohibitive, ranging from Rs

25,000 to Rs 50,000 for 2-5 months session. For large size call centres that have high attrition

it makes sense to have an inhouse trainer [but what if the trainer itself leaves ;-) ?]. We

strongly feel neutral accent will become more popular than American/British accent.

However, the need for American/British culture training will always be there.

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The job growth in the BPO sector when compared to other sectors:

Industry New Employees Period

Telecom 10,000 January-December 2002

IT Enabled Services 50,000 April 2002 - March 2003

Software Services 30,000 April 2002 - March 2003

Retailing/Franchising 35,000 April 2002 - March 2003

Skills that are required to work in each of the verticals:

SEGMENTS SKILLS

Call centerGood communication and language skills, accent

understanding team leadership, basic computing skills

Remote customer

interactionLanguage and accent understanding

Date search, Integration Computing, language and analytical skills

Human Resource Services Country specific HR policies, rules and regulations

Remote education Subject knowledge, computing and language skills

Engineering and design Technical and engineering design and computing skills

Translation, medical

transcription and

Localisation

Language understanding, basic computing (word

processing knowledge) and understanding of various

medical terminologies

Animation Drawing and creative skills, computer graphic skills

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Finance and accounting International/ country specific accounting rules

Market Research Understanding statistical sales and marketing concepts

Network Consultancy and

management

Understanding different network configurations and

support equipment, technical/ computing skills

List of all those fancy numbers, including projections!

These $142 Billion can be broken up and shown as below:

          Customer Interaction Services 33.0

          Finance & Accounting Services 15.0

          Translation, Transcription & Localization 2.0

          Engineering & Design 1.2

          HR Services 5.0

          Data Search, Integration & Management 44.0

          Remote Education 18.0

          Networking Consulting & Management 15.0

          Website Services 5.0

          Market Research 3.0

Total 141.2

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Manpower for ITES industry

The ITES industry needs candidates who have skills and the process knowledge pertaining to

the service they are providing. The skills expected are in depth knowledge of office

productivity tools and application of technology in the domain area of specialization. The

changing times demand the ability to adapt to new situations. The requirements and abilities

thus desired are:

Strong foundation in technology

Ability to identify new application areas

Develop applications in domains

Understand the target groups and their environments

Understand technologies, adapt technologies to the new applications and develop new

technologies

Human relationship management

CRM

Attitudes like Commitment and motivation.

software for domain expertise. The specialization/ domain areas in which the technology will

be applied will make the crucial difference in the productivity and employability of the

person. There is a core IT track that provides the students with the necessary foundation in

terms of knowledge and skills with a technology usage focus. There are three In operations

involving banking, insurance, back office operations companies would basically look for

those with good database management skills, and innovation in design and application.

Knowledge of core entities and services in banking, customer handling, corporate banking,

will be the focus.

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As Mr. V. Balasubramanian, Global IT Head, Aptech Training Limited says, "ITES, and by

extension, BPO, are much sought after new age careers today, and the importance and

opportunities will continue to grow. Aptech has successfully launched a course for the call

center segment (Calltech) and potential employers have ranked the course content high. To

address the huge manpower shortage likely to be faced by the ITES industry, Aptech has

introduced specialized courses covering Banking, Accounting, and Sales & Marketing to

provide students with an added edge to gain potential employment in this huge sector."

Regarding placement opportunities, he further pointed out, "We are also tying up with a

domestic giant in the banking specialization tracks in the domain areas, which lead to domain

specialization. These include Sales and Marketing, Financial Accounting, and Banking."

To log on to the ITES industry, tune in on your skill sets, and get right in, to be a part of the

over 1.1 million Indians who will be attuned to this industry in a few years time.

Space take up for IT/ITES industry to cross 20 million Sq. Ft in 2004

CB Richards Ellis, the world’s largest Real Estate Consulting firm, announced the

findings of the space take-up trends in the IT / ITES sector across India. In Q1 04,

approximately 6.45 m sq ft of space was taken up by the IT / ITES industry in five of

India’s biggest IT / ITES hubs. Based on the Q1 figures, the total space take – up is

expected to cross the 20 m sq ft mark by the year 2004, which would be an increase

of approximately 54% from the earlier estimate of approximately 13 m sq ft.

In Q1 04, Bangalore topped the list with approximately 2 m Sqft of space take up,

closely followed by Mumbai, with approximately 1.9 m sq ft. Pune has finished third

with approximately 1.45 m sq ft of space take up. Chennai and Hyderabad have taken

up the fourth and fifth positions with approximately 0.6 m sq ft and approximately 0.5

m sq ft of space take – up respectively. Delhi did not figure in the top 5 and finished

sixth with approx. 0.4 m sq. ft.

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New service lines will boost growth in ITES-BPO

NASSCOM, the apex industry association of IT Software and Service companies in

India, today highlighted new service lines in the IT Services and ITES - BPO segment

that the Indian Software and Service industry can tap in order to broadbase their

portfolio of services to achieve greater growth.

Indian vendors have only been able to tap a market share of 2% of the global IT

Services market currently and need to tap new service lines in order to capture a

market share of 4.6% of the worldwide IT services market by 2008. In the ITES-BPO

segment too, India has a market share of 2% currently and will need to target new

service lines such as Engineering/R&D, logistics and sales to capture a share of 4.8%

by 2008.

Speaking at the media briefing Mr. Arun Kumar, Chairman, NASSCOM said, "India's

presence in the global IT Services market is today more focused to custom

application development and application outsourcing, which forms only 10 percent of

the global IT services market. A significant potential also exists in service lines such

as Network infrastructure management; IS outsourcing; IT Training and Education;

Hardware support and Installation; and Network consulting and integration where

Indian vendors have negligible presence currently."

"With Off shoring becoming more mainstream, Indian IT companies are expected to

penetrate new service lines such as Systems integration (accounting for 22% of global

IT services market); Packaged Software Support and Installation (13%) and IT

Outsourcing (18%)," he further added.

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Speaking on the ocassion, Mr. Kiran Karnik, President, NASSCOM, said,

"Historically the new service lines have been difficult to penetrate by Indian vendors

from an offshore base. But increased customer willingness to disaggregate service

lines in order to maximize offshore leverage and also Indian vendors building onshore

skills, augur well for India's foray into these service lines. Many leading vendors

already have a strong presence in package software installation and support market

and upto 40-50% of the activities involved can be offshored."

As per the recent NASSCOM research on IT services scenario, Indian vendors can

tap the systems integration market, which is expected to reach US$ 142 billion in

2005. India currently has a market share of 0.5% in the global market, which can

reach 2-3% by 2008. To successfully capitalize on this opportunity, Indian companies

will need to build a network of best-of-breed partnerships, attract world-class talent

and develop best-in-class project management skills.

The study further forecasts opportunity in the Enterprise Application Integration

market, which is expected to grow significantly from an estimated US$ 6 billon in

2001, to US$ 18 billion in 2005. The large Indian software companies have

significant advantage in undertaking EAI projects, given their experience with

various enterprise applications, as well as various technological platforms.

With increasing cost pressures, global packaged software vendors are offshoring

implementation, customization and support of packaged applications. The share of

Indian software industry is currently 1.5% and has the potential to increase to 4-5%

by 2008 in this segment.

As Indian software vendors have been involved in the implementation of IT solutions

designed by established consulting firms, large Indian companies have built

significant domain knowledge in the vertical market segments, especially financial

services, telecom and manufacturing. Indian companies can utilize this knowledge to

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move up in the software development value chain through recruiting overseas talent,

investing in building their brand or acquiring niche consultancies.

According to the NASSCOM survey in the ITES- segment, Customer Care and

Administration continues to be the fastest growing segment in the ITES-BPO space.

Revenues in the segment are projected to grow from Rs. 400 crore in 2001-02 to Rs.

700 crore in 2002-03 which marks a growth of 75% over last year. Other segments

which are also witnessing growth include, Finance which is projected to grow from

Rs. 300 crore in 2001-02 to Rs. 450 crore in 2002-03, Payment Services from Rs. 110

crore in 2001-02 to Rs. 190 crore in 2002-03, Administration from Rs. 185 crore in

2001-02 to Rs. 350 crore in 2002-03, Content Development from Rs. 450 crore in

2001-02 to Rs. 650 crore in 2002-03 and HR from Rs. 30 crore to Rs. 35 crore.

Current and Potential share of India's IT Services exports worldwide by Service Lines

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Current and estimated share of IT Service

Potential for ITES-BPO Exports by Service Lines

 

The abundant skilled manpower has made India a target destination for multinationals to

back end their operations in India. India ranks high in areas such as qualifications,

capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead of

competitors such as China, Philippines, Ireland, Australia, Canada etc. Indian companies

have unique capabilities and systems to set, measure and monitor quality targets.

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BPO IN INDIA:

The abundant skilled manpower has made India a target destination for multinationals to

back end their operations in India. India ranks high in areas such as qualifications,

capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead of

competitors such as China, Philippines, Ireland, Australia, Canada etc. Indian companies

have unique capabilities and systems to set, measure and monitor quality targets.

BPO India  China  Russia  Canada Ireland

Government Support

Labor Pool

Infrastructure

Educational System

Cost Advantage

Quality

Cultural Compatibility

Time/distance Advantage

English Proficiency

High    Medium    Low Source : neoIT

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What is a SWOT Analysis

A SWOT analysis stands for Strengths, Weaknesses, Opportunities, and Threats and is a simple and

powerful way to analyze your company's present marketing situation.

The best way to understand SWOT is to look at an actual example: AMT is a computer store in a

medium-sized market in the United States. Lately it has suffered through a steady business decline

caused mainly by increasing competition from larger office products stores with national brand

names. The following is the SWOT analysis included in its marketing plan.

Strengths

1. Knowledge. Our competitors are retailers, pushing boxes. We know systems, networks,

connectivity, programming, all the VARs, and data management.

2. Relationship selling. We get to know our customers, one by one. Our direct sales force

maintains a relationship.

3. History. We've been in our town forever. We have loyalty of customers and vendors. We are

local.

27

Weaknesses

1. Costs. The chain stores have better economics. Their per-unit costs of selling are quite low.

They aren't offering what we offer in terms of knowledgeable selling, but their cost per square

foot and per dollar of sales are much lower.

2. Price and volume. The major stores pushing boxes can afford to sell for less. Their

component costs are less and they have volume buying with the main vendors.

3. Brand power. Take one look at their full page advertising, in color, in the Sunday paper. We

can't match that. We don't have the national name that flows into national advertising.

Opportunities

1. Local area networks. LANs are becoming commonplace in small business, and even in home

offices. Businesses today assume LANs as part of normal office work. This is an opportunity

for us because LANs are much more knowledge and service intensive than the standard off-

the-shelf PC.

2. The Internet. The increasing opportunities of the Internet offer us another area of strength in

comparison to the box-on-the-shelf major chain stores. Our customers want more help with

the Internet, and we are in a better position to give it to them.

3. Training. The major stores don't provide training, but as systems become more complicated,

with LAN and Internet usage, training is more in demand. This is particularly true of our main

target markets.

4. Service. As our target market needs more service, our competitors are less likely than ever to

provide it. Their business model doesn't include service, just selling the boxes.

Threats

1. The computer as appliance. Volume buying and selling of computers as products in boxes,

supposedly not needing support, training, connectivity services, etc. As people think of the

computer in those terms, they think they need our service orientation less.

2. The larger price-oriented store. When we have huge advertisements of low prices in the

newspaper, our customers think we are not giving them good value.

28

SWOT ANALYSIS OF BPO:

  India - SWOT Analysis

 Strengths  Weaknesses (Challenges)

Solid history in software development.

English proficiency

Government Support

Cost advantage

Strong tertiary education

Process quality focus

Skilled workforce

Expertise in new technologies

Entrepreneurship

Reasonable technical innovations

Reverse brain drain

Existing long term relationships

Positioning & Brand management

Infrastructure

Cultural differences

Sales & marketing

Leverage expertise for higher-value

education

Business process experience

Distance from US

Fear/Uncertainty from Pakistan

Legal system

Poor globalization skills

Creation of global brands

BPO & Call center offerings

Expansion of existing relationships

Chinese domestic & export market

Leverage relationships in West to

access APAC/Middle East markets

Indian domestic-market growth

Internal competition for resources

Over-promise / Under-deliver

Regional geopolitical uncertainty

Rising labor costs

Competition from other countries

Sometime blinding nationalism

Government blocking reform/deals

Corruption/piracy/trust

Political & religious instability -war

PORTER ANALYSIS OF BPO

29

KNOWLWDGE PROCESS OUTSOURCING

(KPO)

TOP 15 COMPANIES IN BPO:

BPO

RATE

TIME VARIATION

QUALITY STANDARD

TRAINING

CONTRACT

ACCURACY.

QUALITY

TIME DIFFERENCE

CONTRACT

QUALITY

TIME DIFFERENCE

CONTRACT

QUALITY

TIME DIFFERENCE

CONTRACT

ACCURACY.

QUALITY

TIME DIFFERENCE

CONTRACT

30

IT/SOFTWARE

Sl.No Top 15 BPOs in India

1 WNS

2 Wipro BPO

3 HCL Technology BPO Services

4 IBM Daksh

5 Exl Services

6 ICICI OneSource

7 MphasiS BPO (formerly MSource)

8 Intelenet Global

9 GTL

10 Progeon

11 24/7 Customer.com

12 Datamatics Technologies

13 Hinduja TMT

14 Transworks

15 Tracmail

Source: Nasscom 2005 Survey

COMPANY PROFILE:

1) WNS Profile:

31

Mission:

Run business operations for leading global organizations,

by attracting, developing and managing outstanding talent globally,

to build profit and reputation for our stakeholders

Overview:

WNS Values

• Honor our commitments

• Treat everyone as equals and value differences

• Develop expertise and apply it to uniquely benefit our clients

• Identify leaders and help them realize their potential

• Anticipate ideas and trends, not just follow them

• Stay passionate about succeeding and celebrate each other's success

• Recognize and fulfill our responsibilities to the communities around us

WNS Global Services

India's # 1 BPO services provider

DESCRIPTION

WNS Global Services manages and operates business processes for leading global

companies. We have a proven track record of creating value for our clients using our

32

expertise in industries such as travel, insurance, professional services, retail finance and

healthcare. Backed by ownership from Warburg Pincus and British Airways, we have been

ranked as India's # 1 BPO service provider for 2 consecutive years

Our experienced leadership team is complemented by over 8,000 professionals working on a

world-class 6000 workstation infrastructure.

We are passionate about building a market leading company highly valued by our customers,

associates, business partners, investors and communities.

SKILLS

We are focused strategically on a few industries and we invest proactively to strengthen our

competencies in these segments. Our industry focus has yielded significant dividends in

terms of growth and market leadership:

• We are the largest global player in the offshore travel BPO segment

• We are global leaders in running back-office market research processes

• We process over $ 50 billion of accounts payable in the retails sector annually

Our comprehensive industry-focused services offered by six Business Units:

•Travel Services

• Insurance Services

• Health Claims

• Knowledge Services

• Mortgage and Real Estate

• Manufacturing, Distribution and Retail

Awards & Recognition :

 

33

Data Quest ranked WNS as third BPO company in India

Wednesday, August 31, 2005

 

NASSCOM announces WNS Global Services as # 1 BPO in India

Wednesday, June 09, 2005

 

NASSCOM announces WNS Global Services as Number 1 BPO in India.

Wednesday, June 08, 2004

 

 

The Offshore100 annual study conducted by Managing Offshore/ neoIT.

WNS - The Best Performing BPO Provider.

WNS - A Leader in Human Capital Development.

Managing Offshore Website Article, January 2005

 

 

WNS is among the top most respected company in the BPO Industry.

34

at Business World Magazine, Special Issue November 2004

Strengths

High quality technical skills

Reference clients - measurable results

English language

Business Intelligence

Non-disruptive approach to existing processes

Threats

Increase in attrition

Social resistance in client countries

Competition from other English-speaking locations

Opportunities

Leverage existing infrastructure

Global strategy

Indirect channels

Attract US and European service providers Develop new HR strategies

Focus on communication as a core competency

Weaknesses

Link between IT and business

Change management capabilities

Lack of global footprint

35

UK-centric approach

Underutilized infrastructure18

2) Wipro BPO

History

36

WIPRO made its beginnings in 1945 when the Western India Vegetable Products

Limited was incorporated in Maharashtra state, India.

The company was started as an oil crushing unit making hydrogenated cooking oil.

The first diversification came about in 1975, into hydraulic cylinders and fluid power

components.

In 1979, the original factory in Amalner diversified into soaps, toiletries and baby

care products.

In early 80’s WIPRO entered the InfoTech area and committed team of professional

R & D developed the first Indian mini computer based on Intel 8086 chip. That was

the beginning of its most profitable business, WIPRO Technologies.

WIPRO Biomed was established in 1988 and WIPRO GE Medical Systems Ltd was

incorporated in 1990.

In 1997, WIPRO incorporated Six Sigma, the product quality rejuvenation process to

ensure that its quality standards are world class.

In 2000, the Internet Services business was relaunched under the brand name of

NetKracker and the Peripherals division was restructured as WIPRO Peripherals.

In December 2001, WIPRO became the world's first PCMM level organization.

37

About Company

Over 20 years experience in Personal Computing

Around 200,000 Systems Supported

2500+ Technology Professionals

125+ Spares Stocking Locations

Remote Management Centre

164 Service Centers

24*7*365 TAC

22 Area Offices

24/7Call Centre( 1-600-33-3311)

Over 40,000 customers

Gross Revenue of Rs.12,157 million in 2003 -04

Over 1,900 professionals

275 Business Partner network

ISO 9001:2000 & ISO 14000: Manufacturing, Infrastructure Management ,Systems

Integration, Logistics &Warehouse, E-Procurement

38

Ranked #1Network integrator by Voice &Data –5 years in succession (1998-2002).

39

Growth, that

COMPANY DETAIL

Wipro InfoTech is the IT Services, Solutions & Products division of

the Rs. 81.7 bil l ion Wipro Limited. Chairman of Wipro Ltd. is Mr. Azim

Premji.

Wipro was set up in the backdrop of the small town of Amalner in

Maharashtra in 1945. Primarily an oil factory, the chief products were

Sunflower Vanaspati and 787 laundry soap (a by-product of the Vanaspati

operations). The company was called Western India Products Limited, with

a modest presence in Maharashtra and Madhya Pradesh.

I t was in the early eighties that Wipro made i ts foray into the InfoTech

arena. An energetic, committed team of professional R & D and marketing

managers came together in Bangalore in 1980. With this began the Wipro

InfoTech story. In a small lab at the Indian Insti tute of Science (IISc), the

team developed the first Indian 8086 chip.

Wipro has transcended from being a service provider to being a

consultant, guide and trusted partner. Today, Wipro stands at the firmament,

as a trusted and experienced provider of a comprehensive range of IT

services, solutions and products. An experience that now spans the globe.

For the year ended March 31, 2005, the revenues touched Rs. 13.96 bil l ion,

an increase of 43% year on year. Profit Before Interest & Tax (PBIT) grew

by 32% year on year to Rs. 1.04 bil l ion.

40

There are more then 1900 employees and 275 business partners

serving over 40000 customers Wipro has stamped i ts presence on the Indian

market and leads the Indian IT industry. Headquartered at Bangalore, our

business spans India, Asia Pacific and the Middle East .

By collaborating with Wipro, organizations garner the power of tr ied

and tested frameworks, strong domain knowledge, a large pool of cert if ied

technology specialists and best of breed all iances. We bring to market

tai lor-made, industry specific solutions that help meet your business

challenges while increasing operational efficiency.

 

We help architect , implement and manage the entire IT l ifecycle of

customers through a complete portfolio of IT Services. Wipro services are

backed by over two decades of experience handling complex integration

projects in India and abroad. Multi-platform expertise, extensive reach and

tested delivery mechanisms help us deliver reliable, high-quali ty, cost-

effective IT services.

Wipro IT services are crowned by in-depth Consult ing Skil ls that are

reinforced by a keen understanding of the key role that technology plays in

enabling business. The Consult ing portfolio includes Strategic Consult ing

Services, IT Governance & Optimization Consult ing, Process Consult ing,

Business Continuity and Risk management Consult ing.

Wipro bring to their customers every component of IT infrastructure –

servers, storage, networking and software product – through a host of

Alliances with global technology leaders. These leading technology

offerings are complemented by WIPRO’s all round skil l in planning,

building, integrating and supporting the IT infrastructure.

41

WIPRO’s twenty-year-old computing business completes the product

portfolio with a comprehensive range of desktops, servers, thin clients and

notebook computers.

Wipro InfoTech also bring the innovation business to business (B2B) model to enterprise in

India through e-procurement services, solution and consulting offered by 01Markets.

Wipro’s position of leadership in the IT business is built on a strong foundation of

quality processes ( Six Sigma and ISO 9000 ), Knowledge Management Innovation & People

processes (P-CMM: People Capability Maturity Model). Wipro InfoTech was also one of the

earliest adopters of Six Sigma. Quality is focused on the product and service that touches our

customers, and also internal processes. Moreover, there are quicker deliveries, higher

reliability, simplified processes for customers and employees, call response and productivity.

Wipro have extended their expertise to customers in Asia Pacific and the Middle East.

Wipro bring to these markets a unique combination of domain knowledge, experienced skill

sets and a high thrust on quality. Wipro have established offices in Australia, Middle East,

Hong Kong, Taiwan and Singapore, besides India.

42

SWOT analysis:

SWOT analysis is analyzed as Strengths, Weaknesses, Opportunity & Threats of the

Company.

Strengths:

There are so many strengths with Wipro because of it company is on top.

The first and foremost Strengths for the Company is the trust of the Customers on

Wipro. The Company earns lots of faith and trust from the Customers.

Wipro has strong Brand Name is also one of the strong strengths for the company

Wipro is always try to satisfy the Customers and their needs. So Wipro always try to

give Good Service to the Customers.

Wipro has very good, Skilled Engineers. With the help of them Wipro can solve

complains and problems of the Customers.

Because of Good Communication and Regular Interaction with the customers, the

faith of the Customers is always with Wipro.

Wipro Provide 24 hours Tall free, complain lines especially for the customers so they

can easily inform their complains to the Company.

43

Weaknesses:

With the lots of Strengths, Company has also some Weaknesses which can

improve.

Some time Customers are not fully satisfied with the Service of Wipro, they need

to improve more in Service area.

Because of so many customers and complains, some time company can’t

delivered Service in time.

There are so many customers are with Wipro so it also create problem in Tall free

complain lines. The company has to find out some solution for it.

Opportunity:

In this global world there are so many Opportunity with it Company can

always improve.

After globalization, there are wild chances for IT company to improve &

expand more.

Considering the present scenario, in every company, in every sector the

company are using IT so Wipro can take advantage of it.

In present time, each and every person need computer for their personal use so

its also big opportunity for Company.

The demand of IT products is high and its increasing day by day so company

have lots of opportunity to grow more.

44

Because of globalization and with high demand company can increase their

work in out side the countries.

Threats:

With the lots of opportunity, there are some threats also with which

company have to take care.

Because of globalization, there are so many companies are working as

competitors.

Because there are so many companies as competitor, the customers are

more divide in different companies.

Because of high competition, the Post sale Service is become more

important and if company fail to do it then they lost their customers.

Working in out side countries in global environment is full of risk.

45

3) HCL TECHNOLOGY:

HCL Technologies is one of India’s leading global IT services company, providing software-

led IT solutions, BPO and infrastructure management services. Making a foray into the

services domain in 1997-98, HCL Technologies focuses on technology and R&D

outsourcing, working with clients in areas at the core of their business. The company

leverages an extensive offshore infrastructure and its global network of 26 offices in 15

countries to deliver solutions across select verticals including Banking, Insurance, Retail &

Consumer, Aerospace, Automotive, Semiconductors, Telecom and Life Sciences. For the

twelve month period ended 31st December 2004, HCL Technologies along with its

subsidiaries had revenues of $ 664 million and 20,249 employees. For more information

VISION AND MISSION

VISION STATEMENT

"Together we create the enterprises of tomorrow"

MISSION STATEMENT

"To provide world-class information technology solutions and services to enable our

customers to serve their customers better" .

STORY

Vision, bravado and grit have seen HCL evolve from a dream of eight youngsters in 1977 to

the country's top IT group today, with revenues closing in on Rs 5,000 crore

1975: Six young men get together over a cup of coffee and snacks. The conversation veers

from cars and travel to jobs, career and the future. Since they all work together, its only

natural that they talk shop. They also explore the possibility of starting a company of their

own-one rooted in values, directed at creating a market for its products in a segment hitherto

unexplored, hardware. Microcomp is born. The initial investment-all their savings, making

up seed capital of Rs 1.87 lakh.

46

"Six of us, all with DCM, wanted to start a computer company. But we didn't have enough

funds. We decided, therefore, to settle for a close second-we set up a calculator company,

Microcomp. We were, of course, working our way upward, towards creating a computer

company, till someone informed us that we would need a license for the same. The Uttar

Pradesh government was offering an open license of this nature around that time. We

acquired it and created Hindustan Computers Ltd (HCL). The name itself had a reason

behind it-it denoted largeness, it was Indian, it was patriotic, it was perfect… Two more of

our friends joined us later to set up Hindustan Computers in August 1976-that took the

number of people who started HCL up to eight," remembers Ajai Chowdhry, one of that

original group of eight and now President and Managing Director of HCL Infosystems.

"We dreamt of working in an industry that would revolutionize businesses, an industry that

gave everyone an equal chance to succeed… We also knew we wanted to dominate it.

Through these years, we have retained our number one position and sustained our growth.

The one business strategy that has dominated and been at the core of our business is constant

adaptation and renovation. We have also developed new paradigms for new opportunities,"

adds Shiv Nadar, Chairman of HCL Technologies .

A teething problem faced by the company-getting imports through. The regulations and laws

of the time did not allow the import of technology. Components and sub-assemblies,

however, could be imported. "The latter was a very expensive affair. This led to a sharp focus

on in-house design. The first product we came out with was targeted at the engineering

research market-Micro 2200, based on a 4-bit microprocessor from Rockwell," says

Chowdhry. With Micro 2200, orders poured in for HCL. "We had no products, and we

couldn't simulate them, so we had to create a bread-board model. We actually had people

coming to us and looking at these models and placing orders-they believed in us!"

The deadlines were tough, but they had to be met, or the orders would fall through. The first

deadline was March 31, and everyone worked night and day for weeks. The final delivery

date-March 27. "I remember a particular instance. After setting up of HCL (Chennai), we

were flooded with orders, especially from IIT Chennai. When MNCs weren't popular

47

If we tabulate the history of Indian business, 1977 will go down as a "funny" year. It was in

1977 that the Janata Party government came to power. Among their first actions on the

commerce front-asking IBM and Coke, among other multinational companies, to either

increase the component of Indian holdings or move out. They moved out. "That was a stroke

of luck for us," says Chowdhry. "We created an eight-bit computer, our first usage of Intel

architecture. We went and sold that to lots and lots of companies, among them a cement

company that used four floppies to manage the payroll of all its 3,000 companies."

Three years later, in 1980, HCL became a Rs 2-crore company. "We decided to expand

overseas and entered the Singapore market, armed with some expertise in hardware and

targeting the SME market. However, once there, we realized that the demand was more for

solutions, not so much for boxes. We set up a software factory in Chennai-we would go to

customers and tell them we would do everything-make the box, write the software, train the

staff, maintain the equipment, the works… And we had to do $1 million in orders out of

Singapore between August 1 and December 31, 1980. That was the make or break point-less

than that and we wouldn't have the cash flow to run the company." In the nick of time is how

things worked out-HCL Singapore managed that figure on the morning of December 31.

HCL Group: How the Dream has Evolved

1975 Shiv Nadar and five colleagues start Microcomp

1976 HCL promoted with startup capital of Rs 1.83 lacs (US$ 3826.85)

1980 HCL's first transnational venture, Far east Computers, established in Singapore

1981 Set up NIIT, India's first private sector IT education institution.

1985 HCL America established with headquarters at Sunnyvale, California

1991 HCL and HP, USA agree to enter into a partnership to form HCL HP

48

1994 HCL Tech formed as separate software company

1996 Joint venture with James Martin & Co. and Perot Systems Corporation

1997 HCL Tech incorporated in UK, Germany, France, Sweden, Belgium, Italy and

Switzerland

1998 Operations started in Japan, Hong Kong, Australia, and New Zealand

1999 Initial Public Offering made by HCL Tech Formation of Global Board of Directors and

Advisory Board. Audit, Compensation and Related Party Transaction Committees set up

Implementation of 'Glocal' Management Concept

2000 Large deals with Bankers Trust, KLA and GTech

2001 Acquisition of Deutsche Software Acquires Ireland-based BPO firm, Apollo Contact

Centre HCL Enterprise Solutions formed as a joint venture with Computech Corporation,

Inc, USA

The Singapore experience taught the founders a lesson-designing and manufacturing

products in India and selling them overseas was akin to walking a tough and profit-less path.

"This was when we decided to walk the software integration road. We created the integration

database, much before Intel... but we killed it! We were so naïve, we killed a product line like

that," says Chowdhry.

In 1984, the new computer policy was coined and standards were put in place. This saw a

major move by banks toward the Unix platform. "A few companies approached us and we

49

decided to launch the personal computer in India. We had three weeks to do this. Our people

flew all over the place, including Taiwan and Bangkok, and brought back PCs. We took them

apart, studied them and got into manufacturing mode. We launched our PC in three weeks.

And that, incidentally, how Busybee was born," says Chowdhry.

A turning point came in 1989, just when the PC and software integration business was

chugging along smoothly. McKenzie & Company approached HCL and offered to carry out a

study for HCL, entitled HCL's Entry Into America. "We told them we were too small and

couldn't afford them. They did a project for us anyway, and refused to charge us any money,"

says Chowdhry. When the findings of the study were presented to the top brass at HCL, the

company moved into the US market-HCL America was born. "We marked the entry into the

US market with hardware. We had no environmental clearances and fell back. We could not

deliver as promised. Our entry strategy was right, but the product wasn't. We were in big

trouble-our overheads were high, we had no revenues…"

Unix to the rescue

It was the US reversal that made HCL look at newer avenues, and a path that would lead to

more revenues. "That is how our software strategy was born, and we capitalized on our Unix

strengths. Around this time, we were in talks with Hewlett-Packard for a joint venture. We

were also working on Apollo, and HP bought out the product. About the same time as out

foray into the US, we tied up with HP. At that time, HP was smaller than the behemoth it is

today, but it still boasted global expertise. And that was something we wanted," says

Chowdhry. However, HP asked HCL to close down its RISC and Unix R&D setup.

Unwilling to down shutters on a going and profitable effort, HCL created a new opportunity

out of the situation-HCL Consulting was set up and the said works were moved in to this new

company. "We had our people working at the HP research centers, taking in all of the

technologies. This was a great learning period and had a mushroom effect subsequently,

when HCL Consulting turned into HCL Technologies," says Chowdhry. And along the line,

50

4) IBM DAKSH:

. Daksh eServices

Daksh is the fastest growing BPO Company in India with employee strength of over 5,000. It provides solutions in customer care services and back office processes. Its services include Customer Care, Technical Support, Collections, Transaction Processes and so on. It has five facilities in India out of which four are in Gurgaon (New Delhi NCR) and one in Mumbai. Daksh’s clientele include some major companies who figure in the Fortune 500. It is to be noted that IBM acquired Daksh in 2004.

Strengths:

There are so many strengths with Wipro because of it company is on top.

The first and foremost Strengths for the Company is the trust of the Customers on

IBM. The Company earns lots of faith and trust from the Customers.

IBM has strong Brand Name is also one of the strong strengths for the company

IBM is always try to satisfy the Customers and their needs. So IBM always try to give

Good Service to the Customers.

IBM has very good, Skilled Engineers. With the help of them IBM can solve

complains and problems of the Customers.

Because of Good Communication and Regular Interaction with the customers, the

faith of the Customers is always with IBM.

51

Weaknesses:

With the lots of Strengths, Company has also some Weaknesses which can

improve.

Some time Customers are not fully satisfied with the Service of IBM, they need to

improve more in Service area.

Because of so many customers and complains, some time company can’t

delivered Service in time.

There are so many customers are with IBM so it also create problem in Tall free

complain lines. The company has to find out some solution for it.

Opportunity:

In this global world there are so many Opportunity with it Company can

always improve.

After globalization, there are wild chances for IT company to improve &

expand more.

Considering the present scenario, in every company, in every sector the

company are using IT so IBM can take advantage of it.

In present time, each and every person need computer for their personal use so

its also big opportunity for Company.

The demand of IT products is high and its increasing day by day so company

have lots of opportunity to grow more.

52

Because of globalization and with high demand company can increase their

work in out side the countries.

Threats:

With the lots of opportunity, there are some threats also with which

company have to take care.

Because of globalization, there are so many companies are working as

competitors.

Because there are so many companies as competitor, the customers are

more divide in different companies.

Because of high competition, the Post sale Service is become more

important and if company fail to do it then they lost their customers.

Working in out side countries in global environment is full of risk.

53

4) EXL SERVICES

EXL Services is one of the leading BPO service providers in India, which provide world-class service to the customers. With more than 5,000 employees in its armor, EXL has become a well-known name in the Indian BPO Industry. It provides solutions in Insurance, Banking, Healthcare, Financial & Accounting services, Mortgage Lending and Collections. EXL has both the customer services and back office operations. It has already received the ISO 9001:2000 certification for quality assurance and BS 7799 certification for information security. In India, EXL has Delivery Centers in Noida (New Delhi NCR) and Pune.

Strength:

Solid history in software development.

English proficiency

Government Support

Cost advantage

Strong tertiary education

Process quality focus

Skilled workforce

Expertise in new technologies

Weakness:

Positioning & Brand management

Infrastructure

Cultural differences

Sales & marketing

Leverage expertise for higher-value education

Business process experience

Opportunity:

Creation of global brands

BPO & Call center offerings

Expansion of existing relationships

54

Chinese domestic & export market

Leverage relationships in West to access APAC/Middle East markets

Threat:

Internal competition for resources

Over-promise / Under-deliver

Regional geopolitical uncertainty

Rising labor costs

Competition from other countries

Sometime blinding nationalism

55

WEBLIOGRAPHY:

1) www.google.com

2) www.exlservices.com

3) www.ibm.com

4) www.wipro.com

5) www.bpoindia.com

6) www.wns.org

7) www.indiainbusiness.com

8) www.bpo4u.com

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